Odel PLC Annual Report 2014/15

AT ODEL, WE WEAR OUR ATTITUDE ON
OUR SLEEVE, LITERALLY. THE YOUNG

AND FREE - SPIRITED FASHION ICON
ODEL, BREATHES ATTITUDE INTO EVERY
ASPECT OF ITS CUSTOMERS’ LIVES,
INFUSING COLOUR, CONFIDENCE, STYLE
AND PANACHE TO ENHANCE THEIR
LIVES IN A MYRIAD WAYS. A FASHION
ICON THAT TRANSFORMS THE LIVES
OF THOSE WHO COME IN CONTACT
WITH IT, ODEL ASPIRES TO SHOWCASE
SRI LANKA’S PASSION FOR FASHION,
TO THE WORLD.
ODEL PLC | Annual Report 2014/15
2
Financial Highlights
Revenue Rs. Mn
2015
2014
2013
2012
2011
0 1,000 2,000 3,000 4,000 5,000
Total Equity Rs. Mn
2015
2014
2013
2012
3
2011
4,864
0 1,000 2,000 3,000 4,000 5,000 6,000
Total Assets Rs. Mn
2015
Revenue Rs. Mn
2014
7,587
2013
2012
2011
Total Assets Rs. Mn
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
5,284
Total Equity Rs. Mn
Net Profit Rs. Mn
2015
2014
2013
2012
2011
Net Profit Rs. Mn 0 50 100 150 200 250

Chairman’s
Review
Dear Shareholders, growth and favourable macro economic conditions, such as

increasing purchasing power of consumers and growth in the
Having taken over at the helm of your company in the latter tourism industry.
part of 2014, I must say it has been an insightful year for
all of us at Odel PLC (Odel). In retrospect, 2014 was a year Sri Lankan Economy
that signified change for Odel, leading up to an inevitable
ownership transition, which saw Your Company being Continuing on the momentum from 2013, the Sri Lankan
acquired by one of the leading conglomerates in the country, economy grew at a robust pace in 2014, with real GDP
8 Softlogic Holdings PLC (SHL), that is engaged in Healthcare, growing by 7.7% during the first half of the year compared
Financial Services, Leisure, Automobile and ICT, apart from with a growth of 7.3% in 2013. The expansion in domestic
its branded footprint in the Retail Sector. economic activity and improved external demand were the
key contributors to this growth momentum. This strong
growth is expected to continue in 2015, with an average
A Year of Change growth of 7%. Further, inflation remained well below 5%
On behalf of the Board of Directors, I am delighted to share during the year. The policy stance of maintaining high growth
with you the events, developments and progress in Your momentum with low inflation in 2014 has led to an inevitable
Company during FY2014. Overall, Odel’s performance is relaxation of the monetary policy, which was largely
very satisfying in terms of growth and profitability due to a conducive to business.
better business model adoption, although we, as Softlogic
Group, were not in charge of your company during the Retail Industry
overall financial year.
The global retail industry got off to a difficult start in the year
under review. However, it is encouraging to note that the
We initially acquired nearly a 45% stake in Odel for over Rs.2.7 world’s leading retailers were able to plough on through the
billion and since then we have gradually increased our stake difficult period to reap the rewards of increased consumer
to 93% of issued share capital of the company by acquiring spend. This has served to provide a much-needed boost
a further 47.46% stake for over Rs.2.8 billion from Parkson to global revenues. Interestingly, for the first time, reports
Retail Asia Ltd (PRA), the Singapore-listed department store show that some of the top retailers undertook a series of
subsidiary of Parkson Holdings Bhd. Our total investment sell-offs in order to remain profitable and ride out the tough
in acquisition that was concluded in mid-September 2014 trading period. But our successful acquisitions have helped
amounted to over Rs.5.5 billion, whereas Odel has grown to to strengthen our portfolio and tide over challenging times.
a Rs. 4.8 billion business in terms of revenue in 2015.
Analysts have outlined that the retail sales worldwide will

I am confident that SHL can take this company to the next reach US $ 22.492 trillion this year, and that the global retail
level. Our group’s decision to enter into this transaction was market will see steady growth over the next few years. In
mainly inspired by the post acquisition synergies, industry 2018, worldwide retail sales are projected to increase by
Chairman’s Review
5.5% to reach US $ 28.3 trillion. New supply is robust in apparel brands expanded during the years, with a number
developing markets. The global expansion of the workforce of acquisition of distributorship rights for World’s Leading
and the middle class is spurring a need for new supply, which Brands in Sri Lanka. Softlogic Retail and Brands business
is concentrated in developing countries in Europe, the Middle encompasses branded apparel, clothing such as Nike, Levis,
East and Asia that have economic growth, political stability, Giordano, Tommy Hilfiger and Charles & Keith and consumer
a growing middle-class and business-friendly regulatory electronics including Samsung among others. We foresee a
environments. prosperous future that will continue to build brands, promote
authenticity and encourage a sense of value and style in the
Even in Sri Lanka, luxury retailers are benefitting from market along with the synergies of Odel.
income gains among the top earners and are thriving and
the growth in this sector is a key factor in driving expansion Odel, having begun from a boot of a car, has evolved into a
across the board. chain of 20 fashion forward stores within a period of 25 years.
It is said to be have a footfall of around 5,000 people daily.
Future Outlook Odel is a favourite among tourists. Our focus for the year
ahead is on a few simple principles of providing a world class
Odel is the largest branded retail department store in Sri experience to customers by pioneering upscale shopping and
Lanka and we are bullish and confident about the country’s connecting with shoppers through superior customer service.
future prospects, given the rebound in per capita income, Thus, we aim to upgrade the Ward Place Odel flagship store
lifestyles and tourism. Supported by the synergies of SHL, to improve quality of offerings to customers and plan to build
10 we are confident that Odel is yet to explore and unleash a Mega Mall of 300,000 sq. feet adjoining the Odel flagship
its full potential as a leading retailer in the country. Since store along with car park amenities. The Mall is projected to
acquisition, Your Company has been undergoing a corporate be completed within 3 years.
restructuring phase in organizational structure within SHL.
Odel acquired 99.99% of Softlogic Brands Private Ltd on We intend to bring our Softlogic Brands portfolio to Odel.
20th March 2015 for a total consideration of over Rs. 599.99 During the year, ‘Mothercare’ has already been promoted
million from Softlogic Retail Pvt Ltd and Dai Nishi Securities, inside Odel stores. We continue to develop customer care
which are subsidiaries of Softlogic Holdings PLC. to enhance and facilitate standards and to bring our retail
store floor space to international standards. We will be also
Softlogic Brands possess the largest international branded launching Bodyshop branded products at Odel in the Q3 of
apparel and fashion accessory portfolio in Sri Lanka and has FY2015/2016.
well over 41,000 sq. feet of prime retail space in Colombo
where 20 brands are being retailed. The year’s activity and Whilst we serve customers through 20 stores, our new
performance reflects the value Softlogic creates for Odel and Business Model aims at smaller outlets and one Big Mall.
its stakeholders. As a conglomerate with diverse business Thus, we have closed down some of our bigger outlets
interests, we pursue growth by vigorously developing our including Maharagama and Jaela, with other outlets currently
core businesses and sharpening our existing business model. under evaluation.
We will continue to invest in the businesses that give us
profitable returns and opportunities for capital appreciation
over the next 3 – 5 years. I must also note that it has been a successful year for our
LUV SL brand, as it continues to attract tourists and will
be positioned as one of the biggest franchise brands and
Softlogic’s Retail operations have plans to increase island dominant industry players in time to come. We will continue
wide expansion of retail space and our brand acquisitions are to invest in building our brands which continue to grow in
backed by careful assessments. Softlogic Retail has ambitious strength. In addition to the flagship Odel brand, we now
plans to target a total retail space of 335,000 sq. ft. in three have several more brands which are powering our business
years and Softlogic Brands has a portfolio of prestigious by significantly contributing to our growth and profitability.
Further down the road, we are looking at the possibility of

leveraging more synergies with SHL to take our brands to
international markets and to bring more international brands
to Sri Lanka.
Going forward, we will continue to add value to stakeholders

through our iconic contemporary lifestyle brand and bring
in local products made by small entrepreneurs to urban
markets, thereby enabling successful businesses in the
process.
Appreciation
I extend my gratitude to my fellow Board Members and to the
Directors of Odel for their vision, unstinting commitment and
support. I extend special thanks to the Senior Management
and to all employees for their dedication and achievements.
I would also like to offer my gratitude to our business partners,
associates and vendors for their continued support. I express
my sincere appreciation to all our valued shareholders for 11
placing their continued faith and trust in us.
Sgd.
Ashok Pathirage
Chairman
Board of Directors
4 3
5
1 2
1. Mr. Ashok Pathirage 4. Mr. Ranil Prasad Pathirana

Chairman Non-Executive Independent Director
Mr. Pathirana is the Finance Director of the Hirdaramani Group
Mr. Ashok Pathirage is one of the co-founders of Softlogic and
and is a Director of Hirdaramani Apparel Holdings (Private)
was appointed as Chairman of Softlogic in 2000. He is also
Limited, Hirdaramani Leisure Holdings (Private) Limited and
Chairman/Managing Director of Asiri Hospital chain, Softlogic
Hirdaramani Investments Holding (Private) Limited which
Capital PLC, Softlogic Finance PLC, Asian Alliance Insurance
are the holding companies of the Hirdaramani Group. He is a
PLC, which are listed, in addition to the private companies
Non-Executive Director of Sampath Bank PLC, Alumex PLC ,Star
of the Group operating in Leisure & Restaurants, Retail,
Packaging (Private) Limited, Windforce (Private) Limited and
Automobile and ICT industries. He is also Deputy Chairman
Nirmalapura Wind Power (Private) Limited.
of the National Development Bank PLC and Chairman of
NDB Capital Holdings PLC. Due to his business acumen and
Mr. Pathirana is a Fellow Member of the Chartered Institute
corporate leadership, he is one of the top business leaders in
of Management Accountants, UK (FCMA - UK) and holds
the country.
a Bachelor of Commerce Degree from the University of Sri
Jayewardenepura.
2. Mr. Haresh Kaimal 13
Non-Executive Director
5. Dr. Ruanthi De Silva
Mr. Haresh Kaimal is a co-founder of Softlogic and a Director
since its inception. With over 25 years of experience in IT and Non-Executive Independent Director
operations, he currently heads the IT division of the Group to Co-founder CEO of SCM- Plus, a platform for ship owners,
drive advancements in Information Technology and Enterprise managers and service providers to engage in ethical and quality
Resource Management within Softlogic. He is also a Director of focused procurement whilst being OPEX efficient, she is the
Softlogic BPO Services (Pvt) Ltd. immediate past Group Director of Supply Chan Management
(SCM ) at Bernhard Schulte Ship Management (BSM) Group,
which manages over 650 ships operating from over 23 offices
3. Dr. Sivakumar Selliah
around the world.
Non-Executive Independent Director
She holds over 40 years of local and international experience
Dr. Selliah holds a MBBS degree and a Masters Degree (M.Phil). with blue-chip companies and has been in senior management
He was appointed to the board of Odel PLC in 2014. He has positions covering strategic planning, finance, business
over two decades of experience in varied fields. He is currently process re-engineering and operations. She was a key member
the Deputy Chairman of Asiri Hospitals Holdings PLC, Asiri of the Ceylon Shipping Corporation team that introduced
Surgical Hospital PLC and Central Hospital Ltd. He is a Director containerization to Sri Lanka in 1978.
of Softlogic Holdings PLC, HNB Assurance PLC, Lanka Walltiles
PLC, Lanka Tiles PLC, Horana Plantations PLC, ACL Cables PLC Dr. De Silva holds a Doctorate from the University of Newcastle
and Lanka Ceramics PLC. He is also the Chairman of Cleanco in Australia and an MBA from the University of Hull in UK. She is
Lanka (Pvt) Ltd and JAT Holdings (Pvt) Ltd. Dr. Selliah serves a Fellow of the Chartered Institute of Management Accountants
on the Remuneration and Audit Committees of some of the of UK. She is also an Associate Member of the Chartered
companies on whose Board he serves. Institute of Logistics and Transport in Australia.
Dr De Silva was the recipient of the 2015 Personality of the Year
for Service in the International Arena of the Maritime Industry,
awarded by The Women in International Shipping and Trading
Association (WISTA) Sri Lanka Branch.
Senior Management Team
G. Natarajan
Head - Retail Operation & Desiree Karunaratne
Business Development Group Director - Marketing
Romesh Jayewardene
Gopika Mageswaran Head of Projects &
Business Controller Mall Development
Thilina Dassanayake
Head of Buying
Aldrin Gamage Linton Nelson
General Manager- Visual Merchandizing Director - Logistics
& Retail Design
Senior Management Team
Ruwan Wijeratne
Damith Vitharanage Chief Finance Officer
Group Head - Risk & Audit Nalaka Rambukpota
General Manager- Corporate
Operations
Natasha Fonseka
Meneka Galgamuwa Head - Group Human Capital
Head - Corporate Planning & Taxation
Foo Haw Li
General Manager - IT
Management Discussion And Analysis
The acquisition of Odel by Softlogic Holdings PLC during We are in the process of aligning our internal sourcing to
the financial year under review served to inject interesting include all the new brands that are now retailing at Odel for
dynamics into the company halfway through the year. The greater efficiency. Likewise, our buying patterns will also be
beneficial result of the acquisition was almost instantaneous, closely aligned with the new brands in order to gain system
with the second half of the year generating a stronger and process improvements. Clothes are sourced in alignment
performance than the first. Post-acquisition, a slew of cost with international current fashion trends and new collections
control mechanisms were swiftly set into motion, which are introduced five times in the year with every season
altered the cost structure dramatically and accrued higher launch, namely, Spring, Summer, Pre-fall, Fall and Christmas.
gains for the company. An extensive staff rationalization
exercise was undertaken and a leaner structure implemented. All store layouts were optimized to facilitate a smoother
The flagship store underwent moderate refurbishment for and more convenient shopping ambience for our customers
a more energized look. Rationalization of stores was also whereby convenience for both navigation and interaction is
carried out and the Odel stores at Ja-ela and Maharagama made possible. Providing a superior customer experience is
were closed down while others are being evaluated for a mainstay on the shopfloor. Close attention is paid to ensure
viability. Agreements for several under-utilized warehouse the store has a fresh visual merchandising look in line with
spaces were terminated. The Odel store welcomed new the ongoing campaigns and themes.
tenants such as Spa Ceylon. During the year, we purchased
the adjacent land for the construction of the mega mall on a
land extent of 27 perches. Brands & Lines
20 Luv SL
Flagship Store
This unique home-grown line of uniquely Sri Lankan souvenirs
The flagship Odel store at Alexandra Place continues to has captured the imagination of shoppers. During the year
be the only iconic retail store of its kind and attracts both it continued to record revenue growth of 8-10% over the
local and foreign visitors in great numbers. The store has previous financial year. The standalone store at Galle proved
an international appeal and an ambience that is irresistible. to be a high performing store. During the period, we included
Its astounding range of shopping choices, has rendered it new products into the line and are innovating ways by which
a central hub for discerning shoppers who aspire towards our culture and heritage can be better showcased. All five
a superior shopping experience that lingers with them. The standalone Luv SL stores are doing well. The store is largely
entry of new Softlogic retail brands into the store has added a targeted at tourists, a key part of our strategy. However, we
further boost to the popularity of the store. The new product source from local artisans to uplift their standard of living and
mix has excited shoppers as there is now a wide price range enable these local crafts to remain alive.
to choose from, apart from more brands and private labels.
Odel Women’s
Visual Merchandising
The Odel Women’s section sustained a buzz and shopper
The visual merchandising element underwent a dramatic interest through the year with the launch of eye-catching
change by leveraging on joint synergies of Odel and the new collections and new brands. The segment posted strong
parent company, Softlogic Holdings. The combined expertise financial results and year on year growth. The segment
of the two helped to decrease maintenance costs of visual improved its topline and bottomline performance during the
merchandising for the store. The merchandising unit was period under consideration. The collection caters to a wide
streamlined to drive higher profitability. Mothercare, Dockers, audience ranging from young teenagers to the early 20s and
Levis and Nike brands made their foray into Odel. As a result, beyond, ensuring something for everyone. The collections
shoppers can now select from a truly international array of were launched amidst much style and hype via fashion
brands. shows and specific brand promotions. Body Shop products
too will very soon be available at Odel.
21
Looking ahead, new brands such as Mango and Charles & premium, casual and vintage categories. There was a greater
Keith will make an appearance at the Odel Women’s section focus on casual wear over formal wear in keeping with
along with local brands such as Yoland, Kelly Felder and customer buying trends.
Linen Life. We will continue to incorporate branded and non-
branded high fashion collections which will help to broaden Odel Kids
the customer base. The new Odel mall being envisioned at
the current flagship store premises will provide vast retail During the year, this section experienced a paradigm
space for addition of brand and product categories. Our aim shift from being a stock-driven business to a private label
is to enhance the one-stop shop experience for shoppers so business. The year was testing ground as we introduced
that they can access the widest range of shopping under one three private kids’ labels, 2 for boys and 1 for girls, to gauge
roof at the new mall when it opens its doors in 2018. The customer response. The hipper, cuter and smarter collections
multi-brand mall concept is a fixture in international fashion are expected to do well in our view. We intend to introduce
markets and we are confident of its success here as well. more branded apparel going ahead. The Mothercare line
was also introduced into the Kids section during the year.
Odel Men’s Unfortunately, the kids’ clothing segment remains fiercely
competitive and the existence of cheaper products at smaller
The Odel Men’s section witnessed slight growth during the stores proves to be stiff competition for the profitability of our
financial year under review. The addition of Arrow branded Kids outlet. Being a price sensitive segment. (a platform we
clothing and the YOS brand of garments for men, and brands do not choose to compete on), we are offering strong branded
such as Dockers, Crocs, Van Heusen, Allen Solly and Peter clothing to attract brand conscious consumers. Benetton and
England also expanded their presence. During the year, US Polo clothing for kids will also be introduced soon.
our private Odel label was also strengthened further in the
Odel Home Promotions

One of the key highlights during the period under The year under review was characterized by strong thematic
consideration was the opening of Odel Home at Capital Mall campaigns that epitomize the fashion savvy and fashion
in Thalawathugoda, a bustling suburb with high purchasing forward elements of Odel. A Story in Print, Love and Light,
power. This helped make the store more accessible to the and the most recent are within the financial year being the
affluent clientele in that area. resort based ‘Island Life’ campaign were hugely popular
and well accepted by customers. Apart from enhancing the
Odel Delight flagship store, we concentrated on growing Odel sub brands
such as Odel Home, Backstage, Delight and B Iconic – all of
This section witnessed an upsurge in sales of organic foods which have translated into higher acceptance levels among
and overall posted strong topline and bottomline growth. the target group and better sales contribution from these sub
During the year, we introduced new brands and a wider brands.
selection of goodies for shoppers to select from.
Our focused marketing campaigns also centered around
Backstage key hallmark dates in the calendar (Mother’s Day, Father’s
Day, Valentine’s Day, Easter Funday and World Animal Day)
This segment was stable during the year and we experimented to bring the brand closer to the customer. Odel is a brand
with new products. The in-house brand is showing potential that celebrates the special days in the lives of our customers
and we intend to build on this potential further. Although together with them. This has helped create an indelible and
22
we have plans to expand the section further, we have to enduring connect between Odel and our customers.
firstly consolidate sales which showed a sharp decline in the
previous year.
There was also a greater drive during the year to grow
the unique proposition of LuvSL stores by refurbishing and
Marketing & Promotions revamping the stores and product offerings throughout the
The company continued in its pursuit to be the foremost year.
fashion retailing department store in the country. Our
marketing strategy consists of offering the best mix of both Some innovative and exciting sales and marketing
local, quality homegrown brands and international high promotions were carried out during the year. We partnered
street brand labels under the Odel banner, while offering an with some leading banks to spur retail sales during the year.
exceptional and memorable shopping experience on par with Festival related promotions that help recognize the ethnic
popular global fashion retailing department stores. During the and religious diversity of the community - Christmas, Sinhala/
year under review, we constantly engaged with the customer Tamil New Year, Vesak and Ramadan were celebrated with
through refreshing campaigns that are a reflection of global gusto. Odel is always seen as a fashion icon brand that caters
trends around the world. We also successfully capitalized on to the wider audience and promotions such as these help to
Softlogic Group synergies to offer our customers the best reinforce that perception.
products available in the country. Our aim is also to be the
preferred shopping destination for all tourists visiting our We also launched the concept of End of Season sales to be
island and thereby contributing to uplifting the fashion image held bi-annually to clear out previous season stock prior to a
of Sri Lanka to the world. We are also focusing on sustainable new season launch. This promotion captured the attention of
operations, helping uplift community trade and small cottage customers.
industries by showcasing their products, which undergo a
rigorous quality check across our Luv SL stores.
Continuous year-round strategic promotions focusing on
identified product and market segments were sustained
through the year. New Product and Store launches and
frequent introduction of new brands kept up the hype around In-store Promotions
Odel. Our aim is to provide customers with a wider range and
broader spectrum of product offerings clearly differentiating Many special days of the year were celebrated at Odel
Odel and raising the bar in its standing in the fashion retail amidst customers to engender a greater sense of ownership
sector. Store and department refurbishments helped give a of the brand. The Easter Fun Day 2014 was a fun-filled event
fresh look of the store. dedicated to the kids to have fun with their parents, by
getting involved in many Easter games and activities held at
our flagship Odel store. Odel Delight had a range of Easter
Odel Loyalty Programme
sweets on offer.
A concerted effort was made to build the Odel Loyalty
programme, which saw a surge in loyalty membership during Mother’s Day and Father’s Day were also marked with special
the year by 55%. At Odel, we value the loyalty our customers promotional activities. Father’s Day 2014 witnessed the ‘Dad
have for our brand and this is a unique way for us to offer & You’ Campaign where moments (photographs) with father
attractive discounts and promotions to loyalty card holders. and the child were shared on Odel’s facebook page and
The Double Happiness campaign 2014; 10% discount on winners with the highest likes received gift vouchers. For the
birthdays of Loyalty Members and the exclusive Odel Loyalty ‘Mom Memories’ campaign, customers had to write about
member first day EOSS in Jun 14’ and Jan 15’ proved to be how special their mom is and won a gift pack courtesy of
hugely popular in driving customer loyalty. Odel.
Collections Launched in 2014/15 An Eco Art Festival was held on World Environment Day 23
2014. The festival comprised of Art competitions and a
• A Story in Print 2014: Pre-Fall Campaign carrying print-
School Eco Art Display competition.
on-print collection
World Animal Day 2014 - The Whale Song was an exciting

• Love & Light 2014: The eagerly awaited Christmas
event for little ones organized to mark World Animal Day,
campaign was unveiled, themed ‘Love and Light’. A
2014 to promote the cause of responsible whale watching.
fashion show was held to launch the new Christmas
collection, which featured glamorous outfits in jewel
tones of purple, blue and green. A costume contest was held for Halloween 2014 and the
spookiest picture allowed 2 lucky winners to walk away
• Island Life 2015: The Spring campaign showcased trendy with Rs. 15,000 worth of Gift Vouchers from Odel. Various
resort wear seasonal merchandise was also available for purchase.
• Launch of ‘B Iconic’ in 2014: Introduced with a fashion Valentine’s Day 2015 was celebrated with ‘Objects of
show showcasing Multi-colour and Bright Color Affection’ campaign, wherein shoppers who spent beyond
Collections. This is a teenage specific, youth-oriented Rs. 5,000 were able to win exciting gifts such as return air
fashion brand by Odel. tickets to Paris, a full board stay at Centara Ceysands Resort
& Spa and Rs. 5,000 worth of vouchers.
• Chaos to Couture 2015: B Iconic collection carrying a mix
of elegant and non-conventional outfits was launched The ‘B Iconic Like, share and win’ competition 2014 called
later for sharing the best selfie on the Odel facebook page and the
most liked selfie won a gift from the B Iconic collection.
• Launch of Closet Brand 2014: Formal office wear
collection carrying red, blue and white attire
• Monochrome 2014: Closet collection carrying

monochrome formal attire
Future At the time of the acquisition, special care was taken to ensure
that Odel’s employees were taken care of. Common goals
Odel has ambitious plans to cement its position as the were set and new roles defined for greater transparency.
unique and preferred fashion retail icon of Sri Lanka. There The management made itselves available to explain any
are plans to relocate the Odel apparel factory close to concerns and this helped promote confidence.
the Boralesgamuwa warehouse, to streamline logistics.
Overall, we will closely examine the optimization of all our
The Odel team was absorbed seamlessly into the Softlogic
Odel properties. The Galle store is being better utilized by
Group team through a variety of innovative means, for
inviting spa suppliers such as Fired Earth, Siddhalepa, Yoland
example, Odel staff was represented in the Softlogic
Batiks and The Attic, a coffee shop. We will look at working
Group Christmas Carols sessions. Furthermore, Odel staff
closely with local suppliers to build up a pool of artisans
participated enthusiastically in the group effort to help
and gain lower price points. During the year, Odel bought
landslide victims. Meanwhile, staff from across the country
over Softlogic Brands Pvt Ltd which is now under the Odel
participated at the Odel Awards Nite and Staff get-together.
ownership. We will endeavour to conquer the retail market
with broad price points and a wider customer base.
Staff Composition
Ops & Admin
Gender (%)
Information Technology
24 At the beginning of the financial year under review, we
migrated from the old legacy system to a new ERP system
which encompasses all operations in its modules. We have 48%
52%
also introduced a new point of sale system. The system
on the whole performed well during the period and was
implemented within the budgeted cost and schedule. The
Male
system provides rich information and MIS. The system is Female
focused on merchandising and accounting and offers room
to scale up operations. This was a long overdue investment
as the store had outgrown the earlier software. The new ERP
system from Sweden is scalable and capable of handling
multiple promotions. A smooth information flow is vital for 5% 1%
streamlined operations and this ERP system offers that Age (%)
facility. Our new tenants will also be accommodated on the 18%
same system. The system is also helping us achieve better
33%
manpower utilization and lowering operational costs.
Human Resources
18 to 25
Our employees are our greatest asset and the superior 26 to 35
customer care they offer customers is unrivalled. We have 36 to 45
an intensive training and development programme in place 46 to 55
43% 56 and above
for our employees to enable us to identify their strengths and
help them realize their potential. We offer higher than industry
remuneration to retain talented staff and are committed to
putting employees in positions of influence. We take pride in
sharing our success with our people and inculcate a strong
sense of teamwork.
4% 1% Employee welfare & engagement

5% Service Period (%) The company offers welfare measures such as the
employee death donation fund and employee welfare fund,
13%
which supports them during time of crisis.
60%
Grievance Handling
Less than 3
4 to 5 Well-set grievance handling procedures are established in
18% 6 to 10 the company. An open door policy is in practice whereby
11 to 15 anyone can approach the management and HR team,
16 to 20 including the Head of HR. An ‘Employee Open day
Above 21 programme’ is held to promote greater bonds between
management and staff.
Training & Development Reward & Remuneration

At Odel, we are passionate about developing our people Reinforcing positive achievements and keeping staff
and supporting our employees to develop in their roles motivated is pivotal for aspiring to greater ambitions at
and build a solid foundation for their future career with Odel. We reward and recognize our employees in numerous
us. This is achieved through a diverse range of education ways to ensure they understand their contribution to the
and experience opportunities. These include customer 25
company and that they are valued. Some of the awards
service, grooming, product knowledge and other presented during the year:
technical areas. From their first day with us, our people
continuously undertake development and succession
planning programmes including induction training, mid-year • Long service awards in appreciation of loyalty,
appraisals, on-going one-on-one coaching and feedback commitment and dedication to the company.
sessions.
• Awards for receiving most number of ‘Way to go’ cards
We also have the Fast Tracker Programme, which supports are awarded for service excellence and also for those
our strategy to grow organically by identifying suitable who go beyond their duties. Appreciation of particular
talent within the organization for any future opportunities. activities by the employees individually or as a team is
also bestowed on employees.
Appraisals
• ‘Best sales supervisor of the year’ and ‘Best sales
For us, at Odel, performance management is a process that
colleague of the year’ which appreciate service
runs through the year. Ongoing conversations on achieving
excellence.
business objectives are held while helping employees attain
personal development targets. Rewards and recognition are
linked to performance.
Financial Review
Sri Lanka GDP grew by 7.4 % in 2014 compared to a growth Overheads

of 7.2% in 2013. The per capita GDP reached USD 3,625
from USD 3,280 year ago. The tourist arrivals reached 1.53 Distribution expenses were consistent with revenue growth
million in 2014, a growth of 19.8 % from the preceding year as these consist mainly of the payments linked to the topline.
with earnings from tourism recording USD 2,431 million. The
average spend per tourist per day increased to USD 160.8 The inflation rate indicated by CCPI annual average change
from USD 156.5 in 2013. These positive developments in the was 3.3% in 2014, down significantly from 6.9% in 2013. The
macro environment had a salutory effect on the topline of main components of overhead costs are staff costs, rent and
Odel. electricity. The closing of 2 outlets towards end of the year
did not have much impact in 2015, but will impact the next
Revenue year. Overall administration cost increase was contained
to 7.7% in 2014/15 by rationalization and reorganization of
The revenue reached Rs 4.8 bn, which is a growth of 5.8% retail space and resource utilization. This effort and focus will
over the previous year. The reduction of VAT rate by 1% in continue in the forthcoming years.
the last quarter contributed positively to topline and margin
improvement. The broadening of the product range by the
Net Finance cost
inclusion of international and local branded products as
well as reorganization of retail space and improved visual During 2014, the interest costs reduced appreciably in line
merchandizing contributed to improving revenues. with lending rates declining considerably. The 364 day
28 Treasury Bills rate dropped from 8.29% to 6.01% at the end
of the calendar year and Average Weighted Prime Rate too
Revenue and Margin declined from 10.13% to 6.26%. These significant reductions
were in response to policy decisions and due to excess
5,000 40 liquidity available in the market. The finance costs recorded
a 17% drop as a result of the favourable conditions. The
4,000 39 overall borrowing levels remained static through the year
3,000 38 and the increase was towards the financial year end to fund
Revenue Rs Mn investments made.
Margin
2,000 37
1,000 36
Interest Costs and Borrowings
0 35
2011 2012 2013 2014 2015 1,500 200
1,200 160
Gross Margin
900 120
Over the past 5 years there has been an improvement in Borrowings Rs Mn
Finance Cost
gross margin despite the effect of retail VAT. The overall 600 80
Gross Profit margin in 2015 improved to 39.7% from 38.3% in 300 40
the previous year. Reduction of VAT rate in last quarter of the
year, better sourcing of products and management of supply 0 0
chain contributed to the improvement in margin. 2011 2012 2013 2014 2015
The rights issue of shares in December 2012 infused Rs

2.5 bn of fresh capital to Odel. These funds were raised to
expand the retail space and to settle part of the borrowings.
Initially the funds were used to settle short term borrowings
attracting higher rates, purchase real estate for expansion Earnings per Share
and a major portion was invested in short term investments
until drawdown for expansion become necessary. In March The EPS reduced from cents 71 to cents 59 in 2014/15 due
2015, these funds were utilized to purchase the share capital to lower PAT.
of Softlogic Brands Pvt Limited, which has a portfolio of
renowned international fashion brands and retail space of
Movement in Market price, Net assets and
41,000 sqft. The synergies of the investment will materialize
over the forthcoming years. Earnings per share
45 1.6
40 1.4
The income earned from short term investments boosted the 35 1.2
results of the company during the year, although lower in 30 1.0 Share Price Rs
amount compared to the preceding year. 25
0.8 Net Assets
20 EPS
15 0.6
The rates of interest have steadily declined into the new 0.4
10
financial year and this trend is expected to continue in the 5 0.2
short term. This augurs well for Odel in the forthcoming year. 0 0.0
2011 2012 2013 2014 2015
Movement of AWPR and Inﬂation Dividends 29
16 A 12 cents dividend per share was paid for 2014/15, which

14 compares with the total dividend of 24 cents per share paid
12 for the 2013/14 financial year. This translated to a payout of
10 20% of the after tax profit in 2014/15. The solvency position
8 AWPR was examined prior to such distribution by the Directors and
Inflation
6 confirmed by the Auditors as per the applicable statutory
4 requirements.
2
0 Total Equity and Return
2011 2012 2013 2014 2015
Total Equity increased to Rs 5.283 bn from Rs 5.219 bn
through the retention of earnings.
Taxes
The return on equity declined marginally to 2.9% from
Odel is liable for income tax at 28%. The effective tax rate at
3.5% in the previous year. The efficient utilization of funds
15% is due to mainly to tax savings made on income earned
and improved operating results will boost the returns in the
from short term investments.
forthcoming years.
Comprehensive Income
The profit after tax for the year at Rs 160 mn is a decrease
of 16% from the previous financial year. The reduced income
from investments due to utilization of funds was the main
reason for reduction. The operating profit without such
investment income increased by 64% in the year.
Financial Review
Equity base and Return on Equity Cash Flow

The cash flow from operation improved due to the profits
6,000 14 earned and better management of the investment in working
5,000 12 capital.
10
4,000
8 Rs 871 mn was invested in property, plant and equipment.
3,000 Equity
6 Return on Equity
2,000
4 Financing of investment in subsidiary was partly from
1,000 2 borrowings, albeit at lower rates of interest. This resulted in
0 0 gearing ratio at year-end increasing to 21.4% from 16.6% a
2011 2012 2013 2014 2015 year ago.
Non Current Assets

Rs 871 mn was invested in acquiring property, plant and
equipment during the year. This includes purchase cost of
land situated adjacent to currently held properties at Ward
Place as well as amounts invested in revamping the IT
30 infrastructure during the year.
At year-end, Rs 600 mn was invested in Softlogic Brands

Pvt Limited in acquiring its shares in full. The balance sheet
of the subsidiary was consolidated for the first time and the
resultant goodwill of Rs 78 mn is provisional. An intangible
asset of Rs 537 mn was recognized on acquisition arising
from the value of brands associated with Softlogic Brands
Pvt Limited. This was estimated based on valuation carried
out by Brand Finance.
Sustainability Report
Environment Ecoart Festival

Sustainability Philosophy The spectre of coastal pollution caused by unchecked littering
was colourfully and poignantly brought alive as 100 little artists
Odel has been closely associated with environment joined Odel’s campaign to save Sri Lanka’s beaches through
improvement projects since its inception. Its concern for an inspired Eco Art festival to mark World Environment Day
preserving the bio diversity of the island is evident in many of 2014. Equipped with crayons, watercolours, pencils, paper
its retail products, which convey messages about conserving and other media, they sketched and painted under the
the environment. As a socially responsible corporate entity, watchful eyes a panel of judges, producing a kaleidoscope of
Odel has always placed importance on creating awareness visual interpretations of Odel’s theme of ‘Save our beaches;
and encouraging communities in environmental sustainability Do your bit to combat pollution.’
projects for more than two decades.
The festival consisted of two segments: An exhibit/
World Environment Day 2014 sculpture competition featuring 20 exhibits representing 20
schools, made out of waste material such as plastic bottles,
During 2014, Odel commemorated the World Environment
polythene bags, papers and other such items that contribute
Day under the theme ‘Save our beaches; Do your bit to
to pollution; and an on-site live competition for children to
combat pollution’ – in line with the global theme established
articulate their interpretation of ‘Save Our Beaches’. The
by the United Nations Environment Project (UNEP) this year,
Odel Eco Art Festival afforded students around the country
in an effort to help conserve the beauty of Sri Lanka’s beaches.
34 an opportunity to be a part of an internationally accredited
Sri Lanka is blessed with over 500 square kilometers of
World Environment Day programme designed to raise
panoramic beaches, an iconic hallmark that makes the island
awareness about the environment.
the paradise-getaway for over 1.2 million foreigners every
year. But a closer look at these beaches shows the heart-
breaking truth of increasing pollution, as they are dotted by Odel also retails a range of T shirts with witty, tongue - in -
plastic bottles, polythene bags, fuel residue of motor boats cheek slogans that raise awareness as to what little changes
and many other pollutants. we can make to preserve the environment, so that those
who want to represent the cause may wear them and in turn
raise more awareness. A portion of the profits from these
Under this year’s theme, Odel launched a campaign that is
sales will be directed to fund a preservation project of the
a timely call for action and seeks to summon the attention
local Coast Conservation Authority.
and resources of the community to do their bit to combat
pollution and save our beaches. The atrium lobby of Odel
Alexandra Place sported a 10-foot World Environment Day World Animal Day 2014
exhibit - a maiden attired in an elaborate dress fashioned out
Sri Lanka lies within the International Whaling Commission’s
of plastic bottles and other pollutant material sourced from
protected zone in the Indian Ocean. The most popular
polluted beaches, reaching out to the world.
ports for whale watching excursions are Alankuda beach in
Kalpitiya, Mirissa, Dondra and Trincomalee. Sri Lanka is one
Further, a beach clean-up was organised by the Human of the places where whales come in closest to land, Because
Resource Department of Odel in an effort to involve Odel of the proximity of the southern tip of the island to the deep
employees in this cause along with the general public. The waters of the continental shelf.
team conducted a cleanup of the Galle Face beach strip on
31st May 2014 with the assistance of the Department of Coast
Odel made responsible whale-watching its cause for World
Conservation of Sri Lanka. Odel handed over re-cycling bins
Animal Day 2014. An awareness campaign to protect the
to the Colombo Municipal Council (CMC) to be used at the
giant cetaceans that cruise the seas off Sri Lanka’s north
Viharamahadevi Park and cleaned the Galle Face Beach.
western, southern and north eastern coasts was launched.
This was done as part of its annual commitment to promoting
animal conservation in support of World Animal Day, planet. Last year, Odel chose Sri Lanka’s endemic crocodiles 35
celebrated around the world on 4th October. as its World Animal Day project, and raised funds for the first
ever census in the country of these aquatic tetrapods.
Irresponsible whale watchers can drive whales away from
the island, sometimes towards busy shipping lanes, resulting Community
in ship strikes that injure or kill them. With the increase in
tourism, the number of boats is also increasing, heightening Odel’s main contribution to the community has been its
the threat further. willingness to leverage on its position as the country’s
leading fashion retailer to promote the skills of local artisans
and the cottage industry. By offering technical and business
As part of its campaign, Odel produced a whale-inspired knowhow to these SMEs and other suppliers who supply Luv
range of products including T shirts, mugs, soft toys and SL, Odel has helped them generate a steady revenue stream
stationery. Part of the profits from their sale was directed to by sustaining their livelihoods. These vibrant and aesthetic
Sri Lanka’s first Responsible Whale Watching Accreditation products not only allow buyers an insight into local arts and
programme in Mirissa, conducted by Friends of the Sea, a crafts, but also enable the larger community to support
non-profit, non-governmental organisation whose mission is these craftsmen by purchasing Luv SL products from Odel,
the conservation of the marine habitat. creating a win-win situation for all parties. Making recycled
paper for Odel has provided a valuable livelihood for patients
Additionally, on 4th October, nearly 500 children and their at the Rehabilitation Hospital in Digana and those affected by
parents attended an educational programme at Odel’s war and tsunami. By engaging the under-served sections of
Alexandra Place store to learn about these giant mammals of society in gainful employment, Odel is helping hundreds of
the ocean: their habitat, their lifestyle, from what they need families hope for a brighter tomorrow.
to be saved and why.
Celebrating World Animal Day annually with activities that

tangibly advance the causes of conservation and responsible
interaction with animals is one of Odel’s commitments to the
Corporate Governance
Independence of the Directors The Board having evaluated all the factors concluded that
Dr. Selliah’s independence has not been impaired due to
Dr. S Selliah, Mr. R P Pathirana and Dr. I C R De Silva function him serving on the Board of another company which has a
as independent directors of the Company. significant shareholding in the Company.
As per the Rules issued by the Colombo Stock Exchange, Compliance with Corporate Governance Rules
Mr. R P Pathirana and Dr. I C R De Silva meet all the criteria of the CSE
of independence. Dr. S Selliah meets all the criteria of
independence except one. The following disclosures are made in conformity with Section
7 of the Listing Rules of the Colombo Stock Exchange;
Dr. S Selliah is a Director of Softlogic Holdings PLC which has
a significant shareholding in the Company.
Section Criteria Has the Company met the Criteria
7.10.1 Non-executive directors Complied with.
38 Out of 5 directors 4 are non-executive directors.
7.10.2 Independent directors Complied with.

There are three independent directors on the Board.
7.10.3 Disclosures relating to Mr. R P Pathirana and Dr. I C R De Silva meet all the criteria of independence.
directors Dr. S Selliah meets all the criteria except one.
7.10.5 Remuneration Committee Complied with.

Comprises of two independent non-executive directors.
The names of the members of the committee are given in the page 50 of the
Annual Report.
7.10.6 Audit Committee Complied with.

Comprises of two independent non-executive directors.
The names of the members of the committee are given in the page 51 of the
Annual Report.
The report of the committee is given on page 51.
The Chief Finance Officer attends all the meetings.
Risk Management
The Board of Directors has the overall responsibility to The quality of service provided by employees and their
manage risks effectively to ensure business continuity and work ethics and integrity are also important aspects of risk
growth. On behalf of the Board, the Audit Committee reviews management. The staff are recruited through a screening
the effectiveness of the processes in place. The internal process and provided with regular training and development
audit function has been expanded and assists in monitoring opportunities to hone their skills. An environment is created
the adherence to the systems and procedures and the to encourage communication, commitment and participation.
improvement of the internal controls of the business. The The orientation towards defined systems and procedures
services of an external firm of accountants is also obtained to be followed in most areas of work and the checks and
with a defined scope of work to review the system adherence. balances in place to ensure compliance are regularly
reviewed and improved where necessary.
Though there are many risks to which a business is exposed
to some of the key risks impacting Odel PLC are discussed The ability to source the products efficiently and be able to
below. broaden the range which appeals to the Odel customer is
an important aspect of managing product risks. Maintenance
Changes in Macroeconomic conditions impact Odel. The of highest quality standards is synonymous with the Odel
increase in per capita income and tourist arrivals are brand. Odel has a diverse and broad base of suppliers and
catalysts for growth of the target market segment of Odel. continuously monitors the changes in fashion to ensure the
The changes in the economic projections and performance range carried mirrors the latest trends.
are closely monitored to understand the impact on Odel. The
product offer and communication of the value are tailored The assets are safeguarded physically where relevant and 39
to recognize the change of customer needs and aspirations. also insured as appropriate to mitigate risks of damage and
unintended use. These measures too are reviewed by the
The ability to fund the business at competitive rates is crucial. internal audit and a comprehensive assessment is made
The changes in fundamentals which drive interest rates in the annually of the coverage of risks through insurance. Also,
market are closely monitored. Also, Odel actively develops the ability of the underlying ICT systems to scale up with
the relationship with a multitude of lenders and potential expanding business requirements is closely monitored. The
sources to broaden the funding options. The leverage to raise continuing business growth requires support of latest ICT to
debt is strengthened by the infusion of capital in 2012/13 ensure efficiency and effectiveness of delivery and significant
through rights issue of shares. investment is made to upgrade the systems to modern
standards of retail.
Annual Report of the Board of Directors on

the Affairs of the Company
The Directors of Odel PLC have pleasure in presenting to Auditor’s Report
the members their Annual Report together with the Audited
Financial Statements of the Company and the Group for the The Auditor’s Report on the financial statements is given on
year ended 31st March 2015. Page 53 of the Annual Report.
Principal Activity Significant Accounting Policies

The principal activity of the Company during the year was The significant accounting policies adopted in the preparation
fashion retailing and offering its customers a total shopping of the financial statements are given on Pages 62 to 76 of
experience. There have been no significant changes in the the Annual Report. There was no change in the accounting
activities of the company during the year under review. policies adopted from the previous year.
Future Developments Property, Plant & Equipment

An indication of likely future developments is set out in the The details and movement of property, plant and equipment
Chairman’s Review on Pages 8 to 11 during the year under review is set out in Note 10 to the
Financial Statements on Pages 81 and 90.
Performance Review
Capital Expenditure
40 The Financial Statements reflect the state of affairs of the
Company and the Group. This report forms an integral part The total capital expenditure incurred on the acquisition of
of the Annual Report of the Board of Directors. property, plant and equipment for the Company and the
Group amounted to Rs. 858 Mn (2014 – Rs. 270 Mn) and Rs.
872 Mn (2014 – Rs. 433 Mn) respectively. Details of capital
Financial Statements
expenditure and their movements are given in Note 10 to the
Section 168 (b) of the Companies Act require that the Annual Financial Statements on Pages 81 to 90 of the Annual Report.
Report of the Directors include financial statements of the
Company, in accordance with Section 151 of the Act and Reserves
Group financial statements for the accounting period, in
accordance with section 152 of the Act. The requisite financial The reserves for the Company and Group amounted
statements of the Company are given on Pages 54 to 111 of to Rs. 1,882 Mn (2014 Rs. 1,899 Mn) and Rs. 2,488 Mn
the Annual Report. (2014 – Rs. 2,423 Mn) respectively.
Directors’ Responsibility for Financial Reporting The movement and composition of the Capital and Revenue
reserves is disclosed in the Statement of Changes in Equity.
The Directors are responsible for the preparation of the
Financial Statements of the Company to reflect a true and
Donations
fair view of the state of affairs. The Directors are of the
view that these financial statements have been prepared in During the year, donations made by the Company and Group
conformity with the requirements of the Companies Act No. amounted to Rs. 1,795,900 (2014 - Rs. 1,085,486 Mn) and
07 of 2007 and the Sri Lanka Financial Reporting Standards. Rs. 1,795,900 Mn (2014 – Rs. 1,537,486) respectively.
A statement in this regard is given on Page 49.
Joint Mandatory Offer by Softlogic Holdings Directorate

PLC and Softlogic Retail (Private) Limited
The following Directors held Office during the year under
Softlogic Holdings PLC and Softlogic Retail (Private) Limited review. The biographical details of the Board members are
(the joint offerors) acquired 130,740,718 (48.04%) [each set out on Pages 12 and 13.
offeror acquired 65,370,359 shares (24.02%)] ordinary shares
of the Company at the Mandatory Offer, which expired on Mr. C Y Choong (resigned w.e.f. 31/05/2014)
13th October 2014. The offerors held 122,894,000 shares
Mr. H N Yeow, Alternate Director to Mr. C Y Choong
(45.16%) [each offeror held 61,447,000 shares (22.58%) of
(ceased to be an alternate director w.e.f. 31/05/2014)
Odel] before the offer period.
Mr. R T K San (resigned w.e.f. 04/07/2014)
Stated capital Mr. K H Lai (resigned w.e.f. 04/07/2014)
The stated capital of the Company as at 31st March 2015 was Mr. Y. Bhg. D L K Leong (appointed w.e.f. 04/07/2014)
Rs. 2,795,513,620. There was no change in the stated capital Mr. T C Sung (appointed w.e.f. 04/07/2014)
of the Company during the year under review.
Ms. W S Chuan (appointed w.e.f. 04/07/2014)
Taxation Mr. H N Yeow, Alternate Director to Mr. D L K Leong
(appointed w.e.f. 09/09/2014)
The information relating to income tax and deferred taxation
Mr. R H Gunewardena (resigned w.e.f. 22/09/2014) 41
is given in Note 8 to the Financial Statements.
Mr. A K Pathirage (appointed as director/chairman w.e.f.
Dividends 22/09/2014)
Dr. S Selliah (appointed w.e.f. 22/09/2014)
The Directors declared an interim dividend of Rs. 0. 12 (cents
12) per share for the year under review which was paid on Mr. H K Kaimal (appointed w.e.f. 22/09/2014)
4th March 2015.
Mr. A D E I Perera (resigned w.e.f. 20/10/2014)
Mr. P Topping (resigned w.e.f. 24/10/2014)
Statutory Payments
Mr. H G Hussain, Alternate Director to Mr. P Topping
The Directors, to the best of their knowledge and belief, (ceased to be an alternate director w.e.f. 24/10/2014)
are satisfied that all statutory payments in relation to the
government and the employees have been either duly paid Ms. O D Gunewardene (resigned w.e.f. 31/10/2014)
or appropriately provided for in the Financial Statements. Mr. D L K Leong (resigned w.e.f. 05/11/2014)
Mr. T C Sung (resigned w.e.f. 05/11/2014)
Events after the date of the Statement of
Financial Position Ms. W S Chuan (resigned w.e.f. 05/11/2014)
Mr. H N Yeow, Alternate Director to Mr. D L K Leong
No circumstances have arisen and no material events have
(ceased to be an alternate director w.e.f. 05/11/2014)
occurred after the date of Statement of Financial Position,
which would require adjustments to, or disclosure in the Mr. R P Pathirana (appointed w.e.f. 05/11/2014)
accounts other than those disclosed in Note 35 to the
Dr. I C R De Silva (appointed w.e.f. 10/02/2015)
Financial Statements.
Mr. S S Kulatunga (resigned w.e.f. 28/02/2015)
Group Employment
The group had employed 925 persons as at 31st March 2015.
Annual Report of the Board of Directors on

the Affairs of the Company
Re-election of Directors Internal Control
In terms of Article 23(2) of the Articles of Association of the The Directors are responsible for the governance of the
Company, Mr. A K Pathirage, Dr. S Selliah, Mr. H K Kaimal, Company, including the establishment and maintenance of
Mr R P Pathirana and Dr. I C R De Silva retire and being the Company’s system of internal control. Internal control
eligible offer themselves for re-election. systems are designed to meet the particular needs of the
organisation concerned and the risk to which it is exposed,
Directors’ Shareholding and by their nature can provide reasonable, but not absolute
assurance against material misstatement or loss. The
No director directly held shares of the Company as at 31st Directors are satisfied that a strong control environment is
March 2015. prevalent within the Company and that the internal control
systems referred to above are effective.
Directors’ Remuneration
Risk Management
Directors’ remuneration in respect of the Company for the
financial year ended 31st March 2015 was Rs.4.725 Mn The Group’s risk management objectives and policies and
(2014 – Rs. 32.010 Mn). The remuneration of the Directors is the exposure to risks, are set out in Page 39 of the Annual
determined by the Board. Report.
42 Directors’ interests in contracts and proposed Corporate Governance tomorrow

contracts with the Company
The report on Corporate Governance is given on Page 38 of
Directors’ interests in contracts, both direct and indirect the Annual Report.
are referred to in Note 29 to the Financial Statements. The
Directors have no direct or indirect interest in any other The Auditors
contract or proposed contract with the Company.
The Board Audit Committee reviews the appointment of the
Interests Register external auditors, as well as their relationship with the Group,
including monitoring the Group’s use of the auditors for non-
The Interests Register is maintained by the Company audit services and the balance of audit and non-audit fees
as per the Companies Act No. 07 of 2007. All Directors paid to the auditors.
have disclosed their interests pursuant to Section 192(2)
of the said Act. The Auditors of the Company, Messrs Ernst & Young,
Chartered Accountants were paid Rs. 1.040 Mn as audit
Shareholders’ Information fees for the financial year ended 31st March 2015 (2014 –
Rs. 0.850 Mn) by the Company. Details of which are given in
The distribution of shareholders is indicated on Page 112 of Note 7 to the Financial Statements.
the Annual Report. There were 5,970 registered shareholders
as at 31st March 2015 (31st March 2014 – 6,483).
As far as the Directors are aware, the Auditors do not have
any relationship (other than that of an auditor) with the
Share Information Company that would have an impact on their independence.
Information on share trading is given on Page 112 of the The Auditors also do not have any interest in the Company.
Annual Report.
Having reviewed the independence and effectiveness of the
external auditors, the Audit Committee has recommended to
the Board that the existing auditors, Messrs Ernst & Young,
Chartered Accountants be reappointed. Ernst & Young
have expressed their willingness to continue in office and

an ordinary resolution reappointing them as auditors and
authorising the Directors to determine their remuneration
will be proposed at the forthcoming AGM.
Going Concern
The Directors of the Board, having assessed the environment
within which it operates, is satisfied that the Company and the
Group have adequate resources to continue its operations
in the foreseeable future. Therefore, the Directors have
adopted the going-concern basis in preparing the financial
statements.
Annual General Meeting

The Annual General Meeting of the Company will be held at the
“Committee Room C” of Bandaranaike Memorial International
Conference Hall (BMICH), Bauddhaloka Mawatha, Colombo
07 on Monday the 28th day of September 2015 at 10.30 a.m. 43
The Notice of the Annual General Meeting is on Page 114 of
the Annual Report.
For and on behalf of the Board
Sgd. Sgd.
A K Pathirage H K Kaimal
Chairman/Managing Director Director
Sgd.
Softlogic Corporate Services (Pvt) Ltd
Secretaries
30th July 2015

Colombo
47
Financial Calendar
Results
Interim report for 1st Quarter - 2015 28th July 2014
Interim report for 2nd Quarter - 2015 10th November 2014
Interim report for 3rd Quarter - 2015 10th February 2015
Interim report for 4th Quarter - 2015 27th May 2015
Dividends Paid
Final Dividend 2013/2014 20th June 2014
Interim Dividend 2014/2015 04th March 2015
Statement of Directors’ Responsibilities
The responsibilities of the Directors, in relation to the financial Compliance Report

statements of the Company differ from the responsibilities of
the Auditors, which are set out in the Report of the Auditors The Directors confirm that to the best of their knowledge,
on Page 53. all taxes, duties and levies payable by the Company, all
contributions, levies and taxes payable on behalf of and in
respect of the employees of the Company and other known
The Companies Act No. 07 of 2007 stipulates that the
statutory dues as were due and payable by the Company
Directors are responsible for preparing the Annual Report
as at the date of the Statement of Financial Position have
and the financial statements. Company law requires the
been paid or, where relevant provided for, in arriving at the
Directors to prepare financial statements for each financial
financial results for the year under review.
year, giving a true and fair view of the state of affairs of the
Company at the end of the financial year, and of the statement
of comprehensive income of the Company and the Group for For and on behalf of the Board of
the financial year, which comply with the requirements of the
Companies Act. ODEL PLC
The Directors consider that, in preparing financial statements Sgd.

set out on Pages 54 to 111 of the Annual Report, appropriate
Softlogic Corporate Services (Pvt) Ltd
accounting policies have been selected and applied in a
consistent manner and supported by reasonable and prudent Secretaries
judgments and estimates, and that all applicable accounting 49
standards have been followed. The Directors confirm that 30th July 2015
they have justified in adopting the going concern basis in Colombo
preparing the financial statements since adequate resources
are available to continue operations in the foreseeable future.
The Directors are responsible for keeping proper accounting

records, which disclose with reasonable accuracy, at any
time, the financial position of the Company and to enable
them to ensure the financial statements comply with the
Companies Act No. 07 of 2007.
They are also responsible for safeguarding the assets of the

Company and for taking reasonable steps for the prevention
and detection of fraud and other irregularities. In this regard
the Directors have instituted an effective and comprehensive
system of internal control. The Directors are required to
prepare financial statements and to provide the external
auditors with every opportunity to take whatever steps and
undertake whatever inspections they may consider to be
appropriate to enable them to give their independent audit
opinion.
The Directors are of the view that they have discharged their
responsibilities as set out in this statement.
Report of the Remuneration Committee
The Remuneration Committee comprises the following Non Remuneration Committee Meetings
Executive Independent Directors at the year-end.
The Committee did not meet formally during the year.
• Mr. Ranil Pathirana
The aggregate remuneration paid to Directors is disclosed in
• Dr. S Selliah Note 7 to the financial statements.
The responsibilities of the Remuneration Committee include,
Sgd.
• Ensuring the remuneration policy of the company
provides a competitive, attractive and reasonable Ranil Pathirana
remuneration package for employees at all levels on Remuneration Committee
par with industry standards giving due consideration
to business performance and long term shareholder
30th July 2015.
returns.
• Ensuring the remuneration package of employee is

linked to performance, responsibility, expertise and
contribution.
50
• Ensuring formal and transparent procedure in
implementing the remuneration policy of the
Company.
• Recommending to the Board of Directors the

remuneration package of Chief Executive Officer.
Report of the Audit Committee
Composition of the Audit Committee Meetings

The Audit Committee, appointed by and responsible to the The Committee held 04 meetings during the year under
Board of Directors, comprises two Non-Executive Directors, review. The Chief Executive Officer and Chief Finance Officer
both of whom are independent. The Committee is made up of attended these meetings by invitation.
members who bring their varied expertise and knowledge to
effectively carry out their duties. Members of the Committee The attendance of the members at these meetings is given
at year end are; below.
Mr. Ranil Pathirana -Chairman Meeting

Dr. S Selliah Name Attended
Mr. Sanjay Sumanthri Kulatunga 04

The functions of the Audit Committee are governed by an
Mr. Paul Topping 02
Audit Committee Charter, which is reviewed annually.
Mr. Koh Huat Lai 01
Mr.Ranil Pathirana 02
Objectives and Role of the Audit Committee Dr. S Selliah 02
The main objective of the Audit Committee is to assist the
Board of Directors to perform its duties effectively and Summary of Activities
efficiently. Accordingly, the objectives of the Audit Committee 51
can be described in detail as follows: Financial Reporting
The Committee reviewed the Financial Reporting System

• Oversee the financial reporting process and determine to determine the accuracy and timeliness of the Financial
that the financial reports present accurate, complete Statements published. The Committee also reviewed the
and timely financial information. interim and year-end Financial Statements prior to publication,
in order to determine that the statutory requirements have
• Monitor the effectiveness of the Company’s risk been complied with and the Company’s Accounting Policies
management processes and the internal control have been consistently applied.
system.
Internal Audit
• To assess the independence of the External Auditor
and monitor the performance of Internal and External The Committee monitored the effectiveness of the
Auditors. Internal Audit Function and the implementation of the
recommendations made by Internal Audit.
• To recommend to the Board the appointment of
External Auditors. External Audit
The Committee reviewed the status of their independence.

• To examine related party transactions are carried on
an arms’ length basis.
Conclusion
Based on the review of reports submitted by the External
and Internal Auditors, the information obtained from
management the Committee having examined the adequacy
and effectiveness of the internal controls which have been
designed to provide a reasonable but not absolute assurance
Report of the Audit Committee
to Directors that the assets of the company are safeguarded,

is satisfied that the financial position of the company is
regularly monitored and that steps are being taken to
continuously improve the control environment maintained
within the Company.
The Audit Committee determined that Messrs Ernst & Young

are independent on the basis that they do not participate in
any management activity of the company and do not provide
any non-audit services to the company and recommended
to the Board of Directors that Messrs Ernst & Young be
reappointed as statutory Auditors for the financial year ending
31st March, 2016, subject to approval by the Shareholders at
the forthcoming Annual General Meeting.
Sgd.
Ranil Pathirana
52 Chairman – Audit Committee
30th July 2015.

Independent Auditor’s Report
TO THE SHAREHOLDERS OF ODEL PLC includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by
Board, as well as evaluating the overall presentation of the financial
Report on the Financial Statements
statements.
We have audited the accompanying financial statements of Odel
PLC, (“the Company”), and the consolidated financial statements We believe that the audit evidence we have obtained is sufficient
of the Company and its subsidiaries (“Group”), which comprise and appropriate to provide a basis for our audit opinion.
the statement of financial position as at 31 March 2015, and the
income statement, statement of comprehensive income, statement Opinion
of changes in equity and, cash flow statement for the year then
ended, and a summary of significant accounting policies and other In our opinion, the consolidated financial statements give a true and
explanatory information. fair view of the financial position of the Group as at 31 March 2015,
and of its financial performance and cash flows for the year then
ended in accordance with Sri Lanka Accounting Standards.
Board’s Responsibility for the Financial Statements
The Board of Directors (“Board”) is responsible for the preparation Report on Other Legal and Regulatory Requirements
of these financial statements that give a true and fair view in 53
accordance with Sri Lanka Accounting Standards, and for such As required by section 163 (2) of the Companies Act No. 07 of 2007,
internal control as Board determines is necessary to enable the we state the following:
preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
a) The basis of opinion, scope and limitations of the audit are as
stated above.
Auditor’s Responsibility
b) In our opinion:
Our responsibility is to express an opinion on these financial - we have obtained all the information and explanations that
statements based on our audit. We conducted our audit in were required for the audit and, as far as appears from our
accordance with Sri Lanka Auditing Standards. Those standards examination, proper accounting records have been kept by
require that we comply with ethical requirements and plan and the Company,
perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement. - the financial statements of the Company give a true and fair
view of its financial position as at 31 March 2015, and of its
An audit involves performing procedures to obtain audit evidence financial performance and cash flows for the year then ended
about the amounts and disclosures in the financial statements. The in accordance with Sri Lanka Accounting Standards, and
procedures selected depend on the auditor’s judgment, including - the financial statements of the Company and the Group
the assessment of the risks of material misstatement of the financial comply with the requirements of sections 151 and 153 of the
statements, whether due to fraud or error. In making those risk Companies Act No. 07 of 2007.
assessments, the auditor considers internal control relevant to the
entity’s preparation of the financial statements that give a true and
fair view in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. An audit also
25th August 2015

Colombo
Income Statement
For the year ended 31st March
Company Group
2015 2014 2015 2014
Note LKR LKR LKR LKR
Revenue 3 4,864,055,962 4,591,712,095 4,864,193,976 4,595,053,620

Cost of sales (2,939,743,442) (2,832,682,015) (2,930,821,865) (2,831,727,816)
Gross profit 1,924,312,520 1,759,030,080 1,933,372,111 1,763,325,804
Other income 4 112,498,290 327,999,724 107,641,962 225,309,032
Distribution expenses (253,736,016) (259,957,416) (253,736,016) (259,977,956)
Administrative expenses (1,540,956,260) (1,472,594,934) (1,503,911,726) (1,396,488,016)
Operating Profit 242,118,534 354,477,454 283,366,331 332,168,864
Finance costs 5 (99,638,233) (120,118,811) (99,638,233) (120,118,811)
Finance income 6 5,256,834 4,812,813 5,256,834 4,812,813
Profit before tax 147,737,135 239,171,456 188,984,932 216,862,866
Income tax expense 8 (19,302,801) 2,187,008 (28,122,698) (24,309,505)
Profit for the year 128,434,334 241,358,464 160,862,234 192,553,361
Attributable to:
54 Owners of the parent 160,862,234 192,553,361
Non controlling interest - -
160,862,234 192,553,361
Earning per share 25

Basic, profit for the year attributable to
ordinary
equity holders of the parent 0.47 0.89 0.59 0.71
The accounting policies and notes on page 62 through 111 form an integral part of the financial statements.
Statement of Comprehensive Income

Company Group
2015 2014 2015 2014
Profit for the year 128,434,334 241,358,464 160,862,234 192,553,361
Other comprehensive income
Actuarial loss on defined benefit plans 19 (4,774,881) (8,505,267) (7,101,478) (10,167,680)

Income tax effect 1,336,967 2,381,475 1,988,414 2,846,950
(3,437,914) (6,123,792) (5,113,064) (7,320,730)
Revaluation of land and buildings 10 (71,244,656) - (3,672,883) -

Income tax effect (5,274,387) - (22,050,809) -
(76,519,043) - (25,723,692) -
Other comprehensive loss for the year, net

of tax (79,956,957) (6,123,792) (30,836,756) (7,320,730)
55
Total comprehensive income for the year,
net of tax 48,477,377 235,234,672 130,025,478 185,232,631
Attributable to:
Equity holders of the parent 130,025,478 185,232,631
Non-controlling interests - -
130,025,478 185,232,631
Statement of Financial Position

As at 31 March 2015
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
ASSETS
Non-Current Assets
Property, plant & equipment 10 2,881,555,726 2,229,588,875 4,272,784,361 3,092,579,870
Intangible assets 11 - - 744,783,445 76,139,410
Investment in subsidiaries 12 978,101,040 378,101,040 - -
Other financial assets 28 52,500,437 34,538,654 80,983,837 34,538,654
Goodwill 33.1 - - 78,516,196 -
Deferred tax asset 9 - - 71,167,811 -
3,912,157,203 2,642,228,569 5,248,235,650 3,203,257,934
Current Assets
Inventories 13 1,361,026,059 1,342,855,064 1,897,867,560 1,351,275,559
Trade and other receivables 14 204,304,311 251,321,230 298,966,558 262,024,912
Amounts due from related parties 16 1,197,580,072 80,263,137 370,262 -
56
Income tax refund due 22,786,094 32,465,603 24,183,546 32,697,348
Other financial assets 28 7,515,463 2,080,880,956 7,515,463 2,080,880,956
Cash and bank balances 22 99,952,941 38,122,571 110,614,424 40,667,432
2,893,164,940 3,825,908,561 2,339,517,813 3,767,546,208
Total Assets 6,805,322,143 6,468,137,130 7,587,753,463 6,970,804,141
EQUITY AND LIABILITIES

Equity
Stated capital 23 2,795,513,620 2,795,513,620 2,795,513,620 2,795,513,620
Revaluation surplus 875,770,994 952,290,037 1,284,834,010 1,310,557,702
Retained earnings 1,006,210,847 946,525,490 1,203,628,138 1,112,999,975
Total Equity 4,677,495,461 4,694,329,147 5,283,975,768 5,219,071,297
Non-Current Liabilities
Interest bearing borrowings 17 165,633,625 278,975,852 165,633,625 278,975,852
Deferred tax liabilities 9 33,936,718 29,878,803 - 28,793,115
Retirement benefit liability 19 47,579,299 48,892,259 59,510,336 55,131,740
247,149,642 357,746,914 225,143,961 362,900,707
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
Current Liabilities
Trade and other payables 20 515,005,141 524,346,694 509,632,234 567,837,611
Amounts due to related parties 21 116,399,968 77,600,079 251,488,937 -
Income tax payable - - - 6,880,231
Interest bearing borrowings 17 1,201,797,863 763,597,696 1,270,038,495 763,597,696
Deferred liability 15 47,474,068 50,516,600 47,474,068 50,516,599
1,880,677,040 1,416,061,069 2,078,633,734 1,388,832,138
Total Equity and Liabilities 6,805,322,143 6,468,137,130 7,587,753,463 6,970,804,141
Net asset per share 17.19 17.25 19.42 19.18
These financial statements are in compliance with the requirements of the companies Act No 7 of 2007
57
Sgd.
Chief Finance Officer
The board of directors is responsible for the preparation and presentation of these Financial Statements.
Signed for and on behalf of the board by
Sgd. Sgd.
Chairman Director
30th July 2015

Colombo
Statement of Changes in Equity

Company Revaluation Stated Retained Total

Reserve Capital Earnings Equity
LKR LKR LKR LKR
As at 31 March 2013 953,398,617 2,795,513,620 770,050,711 4,518,962,948
Net profit for the year - - 241,358,466 241,358,466

Other comprehensive income - - (6,123,792) (6,123,792)
953,398,617 2,795,513,620 1,005,285,385 4,754,197,622
Dividends - - (59,868,475) (59,868,475)

Revaluation surplus transferred to retained earnings (1,108,580) - 1,108,580 -
As at 31 March 2014 952,290,037 2,795,513,620 946,525,490 4,694,329,147

Other comprehensive income (76,519,043) - (3,437,914) (79,956,957)
875,770,994 2,795,513,620 1,071,521,910 4,742,806,524
Dividends (65,311,063) (65,311,063)
As at 31 March 2015 875,770,994 2,795,513,620 1,006,210,847 4,677,495,461
58
Attributable to equity holders of the parent

Group Revaluation Stated Retained Total
Reserve Capital Earnings Equity
LKR LKR LKR LKR
As at 31 March 2013 1,318,247,516 2,795,513,620 979,946,003 5,093,707,139

Other comprehensive income - - (7,320,730) (7,320,730)
1,318,247,516 2,795,513,620 185,232,633 185,232,633
Dividends - - (59,868,475) (59,868,475)

Revaluation surplus transferred to retained earnings (7,689,814) - 7,689,814 -
As at 31 March 2014 1,310,557,702 2,795,513,620 1,112,999,975 5,219,071,297
Adjustment to consolidated reserve - - 190,056 190,056

Other comprehensive income (25,723,692) - (5,113,064) (30,836,756)
1,284,834,010 2,795,513,620 1,268,939,201 5,349,286,831
Dividends - - (65,311,063) (65,311,063) 59

As at 31 March 2015 1,284,834,010 2,795,513,620 1,203,628,138 5,283,975,768
Cash Flow Statement

Company Group
For the year ended 31st March 2015 2014 2015 2014
Cash Flows from / (Used In)

Operating Activities
Net profit before Income tax expense 147,737,135 239,171,456 188,984,932 216,862,866
Adjustments for
Depreciation 10 123,042,992 95,551,905 148,495,142 114,706,218
Intangible assets amortization 11 - - 17,088,812 10,655,944
Finance costs 5 99,580,756 119,894,615 99,580,756 119,894,615
Finance income 6 (5,256,834) (4,812,813) (5,256,834) (4,812,813)
Impairment reversal of property plant and
equipment (10,913,123) - (10,913,123) -
Scrapping of property plant and equipment 6,393,256 6,393,256
(Profit)/loss on disposal of property, plant &
equipment 4 (2,878,550) 3,045,629 (2,628,077) 3,045,629
Income on investment in unit trust (98,919,103) (220,717,726) (98,919,103) (220,717,726)
Lease interest 6 57,477 224,196 57,477 224,196
60 Dividend income 4 (4,050,000) (107,998,683) - -
Provision for defined benefit plans 19.1 11,895,869 8,988,908 13,966,197 10,130,288
Operating profit before working capital
changes 266,689,875 133,347,487 356,849,435 249,989,217
Decrease/(Increase) in inventories (18,170,995) (138,108,287) 40,796,727 (132,409,797)

Decrease/(Increase) in trade and other
receivables 47,016,919 (89,125,950) 66,974,473 (89,779,669)
Decrease/(Increase) in dues from related
parties (1,117,316,935) (18,013,097) (1,118,836,355) -
Decrease/(Increase) in other current financial
assets (16,805,717) 162,312,750 (17,048,117) 162,312,750
(Decrease)/Increase in dues to related parties 38,799,889 (128,742,320) - -
(Decrease)/Increase in trade and other
payables (9,341,551) 9,035,480 (92,076,515) 43,767,892
(Decrease)/Increase in deferred liability (3,042,532) 4,001,223 (3,042,531) 4,001,223
Cash generated from operations (812,171,047) (65,292,714) (766,382,883) 237,881,616
Finance costs paid 5 (99,580,756) (119,894,615) (99,580,756) (119,894,615)

Defined benefit plan costs paid 19 (17,983,710) (1,778,364) (18,015,377) (2,175,102)
Income tax paid/Dividend tax paid (9,502,797) (38,859,639) (23,934,005) (61,875,953)
Net cash from/(used in) operating activities (939,238,310) (225,825,332) (907,913,021) 53,935,946
Company Group
For the year ended 31st March 2015 2014 2015 2014
Cash Flows from / (Used In) Investing

Activities
Acquisition of property, plant & equipment 10 (858,156,069) (269,892,012) (871,720,996) (433,069,954)
Investment in equity shares of subsidiaries 12 (600,000,000) - (624,160,790) -
Acquisition of intangible assets 11 - - (12,758,264) (7,269,082)
Dividend received 4 4,050,000 107,998,683 - -
Finance income 6 5,256,834 4,812,813 5,256,834 4,812,813
Investment in unit trust (150,000,000) (150,000,000)
Proceeds from disposal of investment 2,321,128,529 - 2,321,128,529 -
Proceed from disposal of fixed assets 19,299,987 300,000 19,299,989 300,000
Net cash flows from/(used in) investing
activities 741,579,281 (156,780,516) 687,045,302 (435,226,223)
Cash Flows from / (Used In) Financing

Activities
Repayment of interest bearing borrowings 17.1 (5,268,426,852) (1,838,580,027) (5,268,426,852) (1,838,580,027) 61
Proceeds from interest bearing borrowings 17.1 5,676,008,042 2,212,560,459 5,676,008,042 2,212,560,459
Lease rental paid (997,858) (1,441,349) (997,858) (1,441,349)
Dividends paid (65,311,063) (59,868,475) (65,311,063) (59,868,475)
Net cash flows from/(used in) financing
activities 341,272,269 312,670,608 341,272,269 312,670,608
Net increase/(decrease) in cash and cash

equivalents 143,613,240 (69,935,240) 120,404,550 (68,619,669)
Cash and cash equivalents at the beginning

of the year (52,023,661) 17,911,579 (49,478,800) 19,140,869
Cash and cash equivalents at the end of the
year 22 91,589,579 (52,023,661) 70,925,750 (49,478,800)
Notes to the Financial Statements

For the Year ended 31 March 2015
1. CORPORATE INFORMATION BSL International (Pvt) Ltd
1.1 General BSL International (Pvt) Ltd is a limited liability company

incorporated and domiciled in Sri Lanka. The registered
Odel PLC is a limited liability company incorporated office of the Company is located at No.38 Dickmens
and domiciled in Sri Lanka whose shares are publicly Road, Colombo 05, and the principal place of business
traded in the Colombo Stock Exchange. The registered is situated at P.O.Box 5, Export Processing Zone,
office of Odel PLC is located at No 475/32, Kotte Road, Katunayake.
Rajagiriya. The ultimate parent of Odel PLC is Softlogic
Holdings PLC. Details of subsidiary companies are as
Greenfield Trading (Pvt) Ltd
follows.
Greenfield Trading (Pvt) Ltd is a limited liability company
Subsidiaries incorporated and domiciled in Sri Lanka. The registered
office and the principle place of business is situated at
Odel Apparels (Pvt) Ltd 475/32, Kotte Road, Rajagiriya.
Odel Apparels (Pvt) Ltd is a limited liability company Softlogic Brands (Pvt) Ltd
office of the Company is located at No.475/32, Kotte Softlogic Brands (Pvt) Ltd is a limited liability Company
Road, Rajagiriya and the principal place of business is incorporated and domiciled in Sri Lanka. The registered
situated at No. 71/3, Kamatawatte Road, Rajagiriya. office of the Company is located at No. 14, De Fonseka
62
Place, Colombo 05.
Odel Properties (Pvt) Ltd.,
1.2 Principal Activities and Nature of Operations
Odel Properties (Pvt) Limited is a limited liability
company incorporated and domiciled in Sri Lanka. During the year, the principal activities of the group
The registered office and principle place of business were as follows;
of the Company is located at No. 475/32, Kotte Road
Rajagiriya.
Parent Company
Odel Lanka (Pvt) Ltd.
During the year, the principal activities of the Company
Odel Lanka (Pvt) Limited is a limited liability company were to carry out fashion retail activities.
office of the Company is located at No.475/32, Kotte Subsidiaries
Road, Rajagiriya and the principal place of business
is situated at 271, Kaduwela Road, Thalangama, Odel Apparels (Pvt) Ltd .
Battaramulla.
Odel Information Technology Services (Pvt) Ltd were to manufacture and supply of the Garments to the
group.
Odel Information Technology Services (Pvt) Ltd is a
limited liability company incorporated and domiciled in Odel Properties (Pvt) Ltd
Sri Lanka. The registered office and principle place of
business of the Company is located at No.475/32, Kotte During the year, the principal activities of the Company
Road Rajagiriya. were to carry out real estate activities in relation to
retail business
Odel Lanka (Pvt) Ltd 2.1 Basis of Preparation and Measurement

Principal activities of the Company are to operate a The consolidated financial statements have been
shopping complex/ retail mall and the operations have prepared on a historical cost basis, except for land
not yet commenced. and buildings and Financial Instruments that have
been measured at fair value. The preparation and
Odel Information Technology Services (Pvt) Ltd presentation of these financial statements are in
compliance with the Companies Act No.07 of 2007.
were to provide information technology infrastructure Consolidated financial statements are presented in Sri
and maintenance services for the group companies. Lankan Rupees except when otherwise indicated.
BSL International (Pvt) Ltd 2.2 Basis of Consolidation

During the year, the principal activities of the Company The consolidated financial statements comprise the
were to import and export of fashion accessories. financial statements of the Group and its subsidiaries
as at 31 March 2015. Control is achieved when the
Greenfield Trading (Pvt) Ltd Group is exposed, or has rights, to variable returns
from its involvement with the investee and has the
Principal activity of the Company is to trade retail fashion ability to affect those returns through its power over the
items, and the operations have not yet commenced. investee. Specifically, the Group controls an investee if, 63
and only if, the Group has:
Softlogic Brands (Pvt) Ltd
The principal activities of the Company are importing • Power over the investee (i.e., existing rights that give it
and distributing branded apparel. the current ability to direct the relevant activities of the
investee)
1.3 Date of Authorization for issue • Exposure, or rights, to variable returns from its
involvement with the investee
The consolidated financial statements of Odel PLC and
Its Subsidiaries for the year ended 31 March 2015 were • The ability to use its power over the investee to affect
authorized for issue in accordance with a resolution of its returns
the directors on 30 July 2015.
Generally, there is a presumption that a majority of voting

2. STATEMENT OF COMPLIANCE rights result in control. To support this presumption and
when the Group has less than a majority of the voting
The Consolidated Financial Statements of the Group or similar rights of an investee, the Group considers all
(Income Statement, Statement of Comprehensive relevant facts and circumstances in assessing whether
Income, Statement of Financial Position, Statement of it has power over an investee, including:
Changes in Equity, Statement of Cash Flows together
with Accounting Policies and Notes) as at 31 March
2015 are prepared in accordance with Sri Lanka • The contractual arrangement with the other vote
Accounting Standards (SLFRSs) as laid down by the holders of the investee
Institute of Chartered Accountants of Sri Lanka.
• Rights arising from other contractual arrangements
• The Group’s voting rights and potential voting rights


The Group re-assesses whether or not it controls an Judgments

investee if facts and circumstances indicate that there
are changes to one or more of the three elements of In the process of applying the Group’s accounting
control. Consolidation of a subsidiary begins when policies, management has made following judgments
the Group obtains control over the subsidiary and which have the most significant effect on the amounts
ceases when the Group loses control of the subsidiary. recognized in the consolidated financial statements:
Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in Tax on SLFRS Financial Statements
the consolidated financial statements from the date the
Group gains control until the date the Group ceases to The Group is subject to income tax. The Group
control the subsidiary. recognized assets and liabilities for current and deferred
taxes based on estimates of whether additional taxes
Profit or loss and each component of other will be due. Where the final tax outcome of these
comprehensive income (OCI) are attributed to the matters is different from the amounts that were initially
equity holders of the parent of the Group and to the recorded, such differences will impact the income
non-controlling interests, even if this results in the non- and deferred tax amounts in the period in which the
controlling interests having a deficit balance. When determination is made.
necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting Estimates and assumptions
policies into line with the Group’s accounting policies.
All intra-group assets and liabilities, equity, income, The key assumptions concerning the future and other
64 key sources of estimation uncertainty at the reporting
expenses and cash flows relating to transactions
between members of the Group are eliminated in full date, that have a significant risk of causing a material
on consolidation. adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Group based its assumptions and estimates,
A change in the ownership interest of a subsidiary, on parameters available when the consolidated financial
without a loss of control, is accounted for as an equity statements were prepared. Existing circumstances and
transaction. assumptions about future developments, however,
may change due to market changes or circumstances
If the Group loses control over a subsidiary, it arising beyond the control of the Group such changes
derecognises the related assets (including goodwill), are reflected in the assumptions when they occur.
liabilities, non-controlling interest and other components
of equity while any resultant gain or loss is recognised Impairment of investments in subsidiaries or
in profit or loss. Any investment retained is recognised financial assets
at fair value.
The Group and the Company follow the guidance
2.3 Significant Judgements, Estimates and of LKAS 36 and LKAS 39 on determining whether
Assumptions an investment or a financial asset is impaired. This
determination requires significant judgement. The
The preparation of the Group consolidated financial Group and the Company evaluate, among other factors,
statements requires management to make judgments, the duration and extent to which the fair value of an
estimates and assumptions that affect the reported investment or a financial asset is less than its cost and
amounts of revenues, expenses, assets and liabilities, the financial health of the near-term business outlook
and the accompanying disclosures, and the disclosure for the investment or a financial asset, including factors
of contingent liabilities. Uncertainty exists at the date such as industry and sector performance, changes in
of preparation, about these assumptions and estimates technology and operational and financing cash flows.
and hence, may result in outcomes that require a
material adjustment to the recorded carrying amount
of the asset or liability as at the reporting date or in
future periods.
Revaluation of property, plant and equipment from the use of the Group’s property, plant & equipment
and intangible assets. The residual value reflects
The Group measures land and buildings at revalued management’s estimated amount that the Group would
amounts with changes in fair value being recognized in currently obtain from the disposal of the asset, after
other comprehensive income. The Group engaged an deducting the estimated costs of disposal, as if the asset
independent valuation specialist to assess fair value of were already of the age and in the condition expected
such assets as at 31 March 2015. Land and buildings at the end of its useful life. Changes in the expected level
were valued by reference to market-based evidence, of usage and technological developments could affect
using comparable prices adjusted for specific market the economics, useful lives and the residual values of
factors such as nature, location and condition of the these assets which could then consequentially impact
property. future depreciation charges. Principal depreciation and
amortization rates used are discussed under Note 2.4.7
Defined Benefit Plans – Gratuity and 2.4.11 respectively.
The cost of gratuity is determined using actuarial Deferred Tax Asset

valuations. An actuarial valuation involves making
various assumptions which may differ from actual Deferred tax assets are recognised for unused tax
developments in the future. These include the losses to the extent that it is probable that taxable
determination of the discount rate, future salary profit will be available against which the losses can be
increases, staff withdrawals, and mortality rates. Due utilised. Significant management judgement is required
to the complexity of the valuation; the underlying to determine the amount of deferred tax assets that
assumptions and its long-term nature, the defined can be recognised, based upon the likely timing and 65
benefit obligation is highly sensitive to changes in these the level of future taxable profits together with future
assumptions. All assumptions are reviewed at each tax planning strategies.
reporting date.
2.4 Summary of Significant Accounting Policies
Fair value of financial instruments
The following are the significant accounting policies
When the fair value of financial assets and financial applied by the Group in preparing its consolidated
liabilities recorded in the statement of financial position financial statements:
cannot be derived from active markets, their fair value
is determined using valuation techniques including the 2.4.1 Business combinations and goodwill
discounted cash flow model. The inputs to these models
are taken from observable markets where possible, Business combinations are accounted for using
but where this is not feasible, a degree of judgment the acquisition method. The cost of an acquisition
is required in establishing fair values. The judgments is measured as the aggregate of the consideration
include considerations of inputs such as liquidity risk, transferred, measured at the acquisition date fair
credit risk and volatility. Changes in assumptions about value and the amount of any non-controlling interest
these factors could affect the reported fair value of in the acquiree. For each business combination,
financial instruments. the Group elects whether to measure the non-
controlling interest in the acquiree at fair value or at the
Useful life for Property, Plant & Equipment and proportionate share of the acquiree at the fair value or
Intangible Assets at the proportionate share of the acquiree’s identifiable
net assets. Acquisition-related costs are expensed as
The Group depreciates the property, plant & equipment incurred and included in administrative expenses.
and intangible assets, using the straight-line method,
over their estimated useful lives after taking into account When the Group acquires a business, it assesses the
of their estimated residual values. The estimated useful financial assets and liabilities assumed for appropriate
life reflects management’s estimate of the period that classification and designation in accordance with
the Group intends to derive future economic benefits

the contractual terms, economic circumstances and Where goodwill has been allocated to a cash-generating
pertinent conditions as at the acquisition date. This unit and part of the operation within that unit is disposed
includes the separation of embedded derivatives in of, the goodwill associated with the operation disposed
host contracts by the acquiree. of is included in the carrying amount of the operation
when determining the gain or loss on disposal of the
If the business combination is achieved in stages, operation. Goodwill disposed of in this circumstance is
the previously held equity interest is remeasured at measured based on the relative values of the operation
its acquisition date fair value and any resulting gain disposed of and the portion of the cash-generating unit
or loss is recognised in profit or loss. Any contingent retained.
consideration to be transferred by the acquirer will
be recognised at fair value at the acquisition date. 2.4.2 Foreign currency translation
Contingent consideration which is deemed to be
an asset or liability that is a financial instrument and The Group’s consolidated financial statements are
within the scope of LKAS 39 Financial Instruments: presented in Sri Lankan Rupees, which is also the
Recognition and Measurement, is measured at fair parent company’s and its subsidiary companies
value with changes in fair value either in profit or loss functional currency.
or as a change to other comprehensive income (OCI).
If the contingent consideration is not within the scope Transactions and balances
of LKAS 39, it is measured in accordance with the
appropriate SLFRS. Transactions in foreign currencies are initially recorded
by the Group entities at their respective functional
66
currency spot rate at the date the transaction first
Contingent consideration that is classified as equity is not qualifies for recognition.
remeasured and subsequent settlement is measured at
fair value with changes in fair value either in a profit or
loss or as a change to the other comprehensive income Monetary assets and liabilities denominated in foreign
(OCI). If the contingent consideration is not within the currencies are retranslated at the functional currency
scope of LKAS 39,it is measured in accordance with the spot rate of exchange ruling at the reporting date.
appropriate SLFRS. Contingent consideration that is
classified as equity is not remeasured and subsequent Differences arising on settlement or translation of
settlement is accounted for within equity. monetary items are recognised in profit or loss.
Goodwill is initially measured at cost, being the excess Non-monetary items that are measured in terms
of the aggregate of the consideration transferred and of historical cost in a foreign currency are translated
the amount recognised for non-controlling interest using the exchange rates as at the dates of the initial
over the net identifiable assets acquired and liabilities transactions. Non-monetary items measured at fair
assumed. If the fair value of the net assets acquired is in value in a foreign currency are translated using the
excess of the aggregate consideration transferred, the exchange rates at the date when the fair value is
gain is recognised in profit or loss. determined. The gain or loss arising on translation of
non-monetary measured at fair value is treated in line
After initial recognition, goodwill is measured at cost with the recognition of gain or loss on change in fair
less any accumulated impairment losses. For the value in the item (i.e., the translation differences on
purpose of impairment testing, goodwill acquired in items whose fair value gain or loss is recognised in
a business combination is, from the acquisition date, other comprehensive income (OCI) or profit or loss are
allocated to each of the Group’s cash- generating units also recognised in OCI or profit or loss, respectively).
that are expected to benefit from the combination,
irrespective of whether other assets or liabilities of the 2.4.3 Revenue recognition
acquiree are assigned to those units.
Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Group and
the revenue can be reliably measured, regardless Dividends

of when the payment is being made. Revenue is
measured at the fair value of the consideration received Revenue is recognised when the Group’s right to
or receivable, taking into account contractually defined receive the payment is established.
terms of payment and excluding taxes or duty. The
Group assesses its revenue arrangements against Rental income
specific criteria in order to determine if it is acting as
principal or agent. The Group has concluded that it is Rental income arising from operating leases on shop
acting as a principal in all of its revenue arrangements. space provided to tenants is accounted for on a
The following specific recognition criteria must also be straight-line basis over the lease terms.
met before revenue is recognised:
2.4.4 Expenditure recognition
Sale of goods
a) Expenses are recognized in the income statement
Revenue from the sale of goods is recognised when the on the basis of a direct association between the cost
significant risks and rewards of ownership of the goods incurred and the earning of specific items of income.
have passed to the buyer, usually on delivery of the All expenditure incurred in the running of the business
goods. and in maintaining the property, plant & equipment in
a state of efficiency has been charged to income in
Loyalty Points Scheme arriving at the profit for the year.
67
The Group operates a loyalty points programme, which
b) For the purpose of presentation of the Consolidated
allows customers to accumulate points when they
Income Statement the Directors are of the opinion that
purchase products in the Group’s retail stores. The points
the function of expenses method presents fairly the
can then be redeemed for free products. Consideration
elements of the Company’s performance, and hence
received is allocated between the products sold and the
such presentation method is adopted.
points issued, with the consideration allocated to the
points equal to their fair value.
2.4.5 Taxes
Fair value of the points is determined by applying a Current income tax
statistical analysis. The fair value of the points issued
is deferred and recognised as revenue when the points Current income tax assets and liabilities for the current
are redeemed or at the expiry of points awarded. period are measured at the amount expected to be
recovered from or paid to the taxation authorities. The
Interest income tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the
For all financial instruments measured at amortised reporting date.
cost and interest bearing financial assets classified
as available for sale, interest income or expense is Current income tax relating to items recognised
recorded using the effective interest rate (EIR), which directly in equity is recognised in equity and not in
is the rate that exactly discounts the estimated future the income statement. Management periodically
cash payments or receipts through the expected life evaluates positions taken in the tax returns with
of the financial instrument or a shorter period, where respect to situations in which applicable tax regulations
appropriate, to the net carrying amount of the financial are subject to interpretation and establishes provisions
asset or liability. Interest income is included in finance where appropriate.
income in the income statement.

Deferred tax be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are
Deferred tax is provided using the liability method on reassessed at each reporting date and are recognised
temporary differences at the reporting date between to the extent that it has become probable that future
the tax bases of assets and liabilities and their carrying taxable profits will allow the deferred tax asset to be
amounts for financial reporting purposes. recovered.
Deferred tax liabilities are recognised for all taxable Deferred tax assets and liabilities are measured at the
temporary differences, except: tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on
• When the deferred tax liability arises from the initial tax rates (and tax laws) that have been enacted or
recognition of goodwill or of an asset or liability in a substantively enacted at the reporting date.
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss. Deferred tax
• In respect of taxable temporary differences associated items are recognised in correlation to the underlying
with investments in subsidiaries, associates and transaction either in other comprehensive income or
interests in joint ventures, where the timing of the directly in equity.
reversal of the temporary differences can be controlled
and it is probable that the temporary differences will Deferred tax assets and deferred tax liabilities are offset
68 not reverse in the foreseeable future. if a legally enforceable right exists to set off current tax
assets against current income tax liabilities and the
Deferred tax assets are recognised for all deductible deferred taxes relate to the same taxable entity and
temporary differences, carry forward of unused tax the same taxation authority.
credits and unused tax losses, to the extent that it is
probable that taxable profit will be available against 2.4.6 Sales tax
which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax Revenues, expenses and assets are recognised net of
losses can be utilised, except: the amount of sales tax, except:
• When the deferred tax asset relating to the deductible • Where the sales tax incurred on a purchase of assets or
temporary difference arises from the initial recognition services is not recoverable from the taxation authority,
of an asset or liability in a transaction that is not a in which case the sales tax is recognised as part of the
business combination and, at the time of the transaction, cost of acquisition of the asset or as part of the expense
affects neither the accounting profit nor taxable profit or item as applicable.
loss.
• Receivables and payables are stated with the amount
• In respect of deductible temporary differences of sales tax included the net amount of sales tax
associated with investments in subsidiaries, associates recoverable from, or payable to, the taxation authority
and interests in joint ventures, deferred tax assets are is included as part of receivables or payables in the
recognised only to the extent that it is probable that the statement of financial position.
temporary differences will reverse in the foreseeable
future and taxable profit will be available against which
the temporary differences can be utilised. The net amount of sales tax recoverable from, or
payable to, the taxation authority is included as part
of receivables or payables in the statement of financial
The carrying amount of deferred tax assets is reviewed position.
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will
2.4.7 Property, plant and equipment at the revaluation date is eliminated against the gross
carrying amount of the asset and the net amount is
Property, plant and equipment is stated at cost, net restated to the revalued amount of the asset. Upon
of accumulated depreciation and/or accumulated disposal, any revaluation reserve relating to the
impairment losses, if any. Such cost includes the cost particular asset being sold is transferred to retained
of replacing component parts of the property, plant earnings.
and equipment and borrowing costs for long-term
construction projects if the recognition criteria are met. Depreciation is calculated on a straight-line basis over
the estimated useful lives of the assets as follows:
When significant parts of property, plant and
equipment are required to be replaced at intervals, the • Buildings Over 40 Years
Group derecognises the replaced part, and recognises • Lease hold buildings Over the lease period
the new part with its own associated useful life and
• Equipment Over 10 Years
depreciation. Likewise, when a major inspection
is performed, its cost is recognised in the carrying • Fixtures – air condition Over 10 Years
amount of the plant and equipment as a replacement • Fixtures – other Over 10 Years
if the recognition criteria are satisfied. All other repair • Furniture Over 10 Years
and maintenance costs are recognised in the income • Office Equipment – computer Over 05 Years
statement as incurred.
• Office Equipment – other Over 20 Years
• Shop fittings - fixtures Over 10 Years 69
The present value of the expected cost for the
decommissioning of the asset after its use is included • Shop fittings - mobiles Over 10 Years
in the cost of the respective asset if the recognition • Motor vehicles Over 05 Years
criteria for a provision are met. • Motor vehicles – finance lease Over the lease period
Land and buildings are measured at fair value less An item of property, plant and equipment and any
accumulated depreciation on buildings and impairment significant part initially recognised is derecognised
losses recognised after the date of the revaluation. upon disposal or when no future economic benefits
Valuations are performed with sufficient frequency to are expected from its use or disposal. Any gain or loss
ensure that the fair value of a revalued asset does not arising on derecognition of the asset (calculated as the
differ materially from its carrying amount. difference between the net disposal proceeds and the
carrying amount of the asset) is included in the income
A revaluation surplus is recognised in other statement when the asset is derecognised.
comprehensive income and accumulated in equity in
the asset revaluation reserve, except to the extent that The assets’ residual values, useful lives and methods
it reverses a revaluation decrease of the same asset of depreciation are reviewed at each financial year end
previously recognised in the income statement, in and adjusted prospectively, if appropriate.
which case the increase is recognised in the income
statement. A revaluation deficit is recognised in the 2.4.8 Leases
income statement, except to the extent that it offsets
an existing surplus on the same asset recognised in the The determination of whether an arrangement is,
asset revaluation reserve. or contains, a lease is based on the substance of the
arrangement at the inception date, whether fulfilment
An annual transfer from the asset revaluation reserve of the arrangement is dependent on the use of a
to retained earnings is made for the difference between specific asset or assets or the arrangement conveys a
depreciation based on the revalued carrying amount right to use the asset, even if that right is not explicitly
of the assets and depreciation based on the assets specified in an arrangement.
original cost. Additionally, accumulated depreciation as

Group as a lessee values of investment properties are included in the

income statement in the period in which they arise.
Finance leases which transfer to the Group substantially Fair values are evaluated annually by an accredited
all the risks and benefits incidental to ownership of the external, independent valuer, applying a valuation
leased item, are capitalised at the commencement of model recommended by the International Valuation
the lease at the fair value of the leased property or, Standards Committee.
if lower, at the present value of the minimum lease
payments. Lease payments are apportioned between Investment properties are derecognised when either
finance charges and reduction of the lease liability so as they have been disposed of or when the investment
to achieve a constant rate of interest on the remaining property is permanently withdrawn from use and no
balance of the liability. Finance charges are recognised future economic benefit is expected from its disposal.
in finance costs in the income statement. The difference between the net disposal proceeds and
the carrying amount of the asset is recognised in the
A leased asset is depreciated over the useful life of the income statement in the period of derecognition.
asset. However, if there is no reasonable certainty that
the Group will obtain ownership by the end of the lease Transfers are made to or from investment property
term, the asset is depreciated over the shorter of the only when there is a change in use. For a transfer from
estimated useful life of the asset and the lease term. investment property to owner-occupied property, the
deemed cost for subsequent accounting is the fair
Operating lease payments are recognised as an value at the date of change. If owner-occupied property
70 operating expense in the income statement on a becomes an investment property, the Group accounts
straight-line basis over the lease term. for such property in accordance with the policy stated
under property, plant and equipment up to the date of
Group as a lessor change.
Leases in which the Group does not transfer 2.4.11 Intangible assets
substantially all the risks and benefits of ownership of
the asset are classified as operating leases. Initial direct Intangible assets acquired separately are measured on
costs incurred in negotiating an operating lease are initial recognition at cost. The cost of intangible assets
added to the carrying amount of the leased asset and acquired in a business combination is their fair value as
recognised over the lease term on the same bases as at the date of acquisition. Following initial recognition,
rental income. intangible assets are carried at cost less accumulated
amortisation and accumulated impairment losses, if
2.4.9 Borrowing costs any. Internally generated intangible assets, excluding
capitalised development costs, are not capitalised and
Borrowing costs directly attributable to the acquisition, expenditure is reflected in the income statement in the
construction or production of an asset that necessarily year in which the expenditure is incurred.
takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost The useful lives of intangible assets are assessed as
of the respective assets. All other borrowing costs are either finite or indefinite.
expensed in the period they occur. Borrowing costs
consist of interest and other costs that an entity incurs
in connection with the borrowing of funds. Intangible assets with finite lives are amortised
over their useful economic lives and assessed for
2.4.10 Investment Properties impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation
Investment properties are measured initially at cost, period and the amortisation method for an intangible
including transaction costs. Subsequent to initial asset with a finite useful life is reviewed at least at the
recognition, investment properties are stated at fair end of each reporting period. Changes in the expected
value, which reflects market conditions at the reporting useful life or the expected pattern of consumption of
date. Gains or losses arising from changes in the fair
future economic benefits embodied in the asset is regulation or convention in the marketplace (regular
accounted for by changing the amortisation period or way trades) are recognised on the trade date, i.e., the
method, as appropriate, and are treated as changes date that the Group commits to purchase or sell the
in accounting estimates. The amortisation expense on asset.
intangible assets with finite lives is recognised in the
income statement in the expense category consistent The Group’s financial assets include cash and short-
with the function of the intangible assets. term deposits, trade and other receivables, quoted and
unquoted financial instruments.
Amortization is calculated on a straight-line basis over
the estimated useful lives of the assets as follows: Subsequent measurement
• Computer Software 3 - 5 Years The subsequent measurement of financial assets

depends on their classification as follows:
Intangible assets with indefinite useful lives are not
amortised, but are tested for impairment annually, Financial assets at fair value through profit or loss
either individually or at the cash-generating unit level.
The assessment of indefinite life is reviewed annually Financial assets at fair value through profit or loss
to determine whether the indefinite life continues to includes financial assets held for trading and financial
be supportable. If not, the change in useful life from assets designated upon initial recognition at fair value
indefinite to finite is made on a prospective basis. Gains through profit or loss. Financial assets are classified as
or losses arising from derecognition of an intangible held for trading if they are acquired for the purpose of 71
asset are measured as the difference between the net selling or repurchasing in the near term. This category
disposal proceeds and the carrying amount of the asset includes derivative financial instruments entered
and are recognised in the income statement when the into by the Group that are not designated as hedging
asset is derecognised. instruments in hedge relationships as defined by
LKAS 39. Derivatives, including separated embedded
2.4.12 Financial instruments — initial recognition derivatives are also classified as held for trading unless
and subsequent measurement they are designated as effective hedging instruments.
i) Financial assets Financial assets at fair value through profit and loss
Initial recognition and measurement are carried in the statement of financial position at fair
value with changes in fair value recognised in finance
Financial assets within the scope of LKAS 39 are income or finance costs in the income statement.
classified as financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity The Group evaluates its financial assets held for
investments, available-for-sale financial assets, or as trading, other than derivatives, to determine whether
derivatives designated as hedging instruments in an the intention to sell them in the near term is still
effective hedge, as appropriate. The Group determines appropriate. When the Group is unable to trade
the classification of its financial assets at initial these financial assets due to inactive markets and
recognition. management’s intention to sell them in the foreseeable
future significantly changes, the Group may elect to
All financial assets are recognised initially at fair value reclassify these financial assets in rare circumstances.
plus transaction cost, except in the case of assets The reclassification to loans and receivables, available-
recorded at fair value through profit or loss, directly for-sale or held to maturity depends on the nature of
attributable transaction costs. the asset. This evaluation does not affect any financial
assets designated at fair value through profit or loss
using the fair value option at designation.
Purchases or sales of financial assets that require
delivery of assets within a time frame established by

Loans and receivables Continuing involvement that takes the form of a

guarantee over the transferred asset is measured at
Loans and receivables are non-derivative financial the lower Of the original carrying amount of the asset
assets with fixed or determinable payments that are not and the maximum amount of consideration that the
quoted in an active market. After initial measurement, Group could be required to repay.
such financial assets are subsequently measured at
amortised cost using the effective interest rate method ii) Impairment of financial assets
(EIR), less impairment. Amortised cost is calculated
by taking into account any discount or premium on The Group assesses at each reporting date whether
acquisition and fees or costs that are an integral there is any objective evidence that a financial asset or
part of the EIR. The EIR amortisation is included in a group of financial assets is impaired. A financial asset
finance income in the income statement. The losses or a group of financial assets is deemed to be impaired
arising from impairment are recognised in the income if, and only if, there is objective evidence of impairment
statement in finance costs. as a result of one or more events that has occurred
after the initial recognition of the asset (an incurred
Derecognition ‘loss event’) and that loss event has an impact on the
estimated future cash flows of the financial asset or the
A financial asset (or, where applicable a part of a group of financial assets that can be reliably estimated.
financial asset or part of a group of similar financial Evidence of impairment may include indications that the
assets) is derecognised when: debtors or a group of debtors is experiencing significant
financial difficulty, default or delinquency in interest or
72 principal payments, the probability that they will enter
• The rights to receive cash flows from the asset have
expired bankruptcy or other financial reorganisation and where
observable data indicate that there is a measurable
• The Group has transferred its rights to receive cash decrease in the estimated future cash flows, such
flows from the asset or has assumed an obligation to as changes in arrears or economic conditions that
pay the received cash flows in full without material delay correlate with defaults.
to a third party under a ‘pass-through’ arrangement;
and either (a) the Group has transferred substantially Financial assets carried at amortised cost
all the risks and rewards of the asset, or (b) the Group
has neither transferred nor retained substantially all For financial assets carried at amortised cost, the
the risks and rewards of the asset, but has transferred Group first assesses whether objective evidence of
control of the asset. impairment exists individually for financial assets that
are individually significant, or collectively for financial
When the Group has transferred its rights to receive assets that are not individually significant. If the Group
cash flows from an asset or has entered into a pass- determines that no objective evidence of impairment
through arrangement, and has neither transferred exists for an individually assessed financial asset,
nor retained substantially all of the risks and rewards whether significant or not, it includes the asset in a group
of the asset nor transferred control of it, the asset is of financial assets with similar credit risk characteristics
recognised to the extent of the Group’s continuing and collectively assesses them for impairment. Assets
involvement in it. that are individually assessed for impairment and
for which an impairment loss is, or continues to be,
In that case, the Group also recognises an associated recognised are not included in a collective assessment
liability. The transferred asset and the associated of impairment.
liability are measured on a basis that reflects the rights
and obligations that the Group has retained. If there is objective evidence that an impairment loss
has been incurred, the amount of the loss is measured
as the difference between the assets carrying amount
and the present value of estimated future cash flows
(excluding future expected credit losses that have not Subsequent measurement
yet been incurred). The present value of the estimated
future cash flows is discounted at the financial asset’s The measurement of financial liabilities depends on
original effective interest rate. If a loan has a variable their classification as follows:
interest rate, the discount rate for measuring any
impairment loss is the current effective interest rate. Financial liabilities at fair value through profit or
loss
The carrying amount of the asset is reduced through
the use of an allowance account and the amount Financial liabilities at fair value through profit or loss
of the loss is recognised in the income statement. include financial liabilities held for trading and financial
Interest income continues to be accrued on the liabilities designated upon initial recognition as at fair
reduced carrying amount and is accrued using the rate value through profit or loss. Financial liabilities are
of interest used to discount the future cash flows for classified as held for trading if they are acquired for
the purpose of measuring the impairment loss. The the purpose of selling in the near term. This category
interest income is recorded as part of finance income includes derivative financial instruments entered
in the income statement. Loans together with the into by the Group that are not designated as hedging
associated allowance are written off when there is no instruments in hedge relationships as defined by LKAS
realistic prospect of future recovery and all collateral 39. Separated embedded derivatives are also classified
has been realised or has been transferred to the Group. as held for trading unless they are designated as
If, in a subsequent year, the amount of the estimated effective hedging instruments.
impairment loss increases or decreases because of an 73
event occurring after the impairment was recognised, Gains or losses on liabilities held for trading are
the previously recognised impairment loss is increased recognised in the income statement. The Group has
or reduced by adjusting the allowance account. If a not designated any financial liabilities upon initial
future write-off is later recovered, the recovery is recognition as at fair value through profit or loss.
credited to finance costs in the income statement
Loans and borrowings
iii) Financial liabilities
After initial recognition, interest bearing loans and
Initial recognition and measurement borrowings are subsequently measured at amortised
cost using the effective interest rate method. Gains
Financial liabilities within the scope of LKAS 39 are and losses are recognised in the income statement
classified as financial liabilities at fair value through when the liabilities are derecognised as well as through
profit or loss, loans and borrowings, or as derivatives the effective interest rate method (EIR) amortisation
designated as hedging instruments in an effective process. Amortised cost is calculated by taking into
hedge, as appropriate. The Group determines the account any discount or premium on acquisition and
classification of its financial liabilities at initial recognition. fees or costs that are an integral part of the EIR. The
EIR amortisation is included in finance costs in the
All financial liabilities are recognised initially at fair income statement.
value and, in the case of loans and borrowings, carried
at amortised cost. This includes directly attributable Derecognition
transaction costs.
A financial liability is derecognised when the obligation
The Group’s financial liabilities include trade and other under the liability is discharged or cancelled or expires.
payables, bank overdrafts, loans and borrowings. When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as a derecognition of the original liability and the

recognition of a new liability, and the difference in determined for an individual asset, unless the asset does
the respective carrying amounts is recognised in the not generate cash inflows that are largely independent
income statement. of those from other assets or groups of assets. Where
the carrying amount of an asset or CGU exceeds its
iv) Offsetting of financial instruments recoverable amount, the asset is considered impaired
and is written down to its recoverable amount. In
Financial assets and financial liabilities are offset and assessing value in use, the estimated future cash flows
the net amount reported in the consolidated statement are discounted to their present value using a pre-tax
of financial position if, and only if, there is a currently discount rate that reflects current market assessments
enforceable legal right to offset the recognised of the time value of money and the risks specific to
amounts and there is an intention to settle on a net the asset. In determining fair value less costs to sell,
basis, or to realise the assets and settle the liabilities recent market transactions are taken into account, if
simultaneously. available. If no such transactions can be identified, an
appropriate valuation model is used. These calculations
v) Fair value of financial instruments are corroborated by valuation multiples, quoted share
prices for publicly traded subsidiaries or other available
The fair value of financial instruments that are traded fair value indicators.
in active markets at each reporting date is determined
by reference to quoted market prices or dealer price The Group bases its impairment calculation on detailed
quotations (bid price for long positions and ask price for budgets and forecast calculations which are prepared
short positions), without any deduction for transaction separately for each of the Group’s cash-generating
74
costs. units to which the individual assets are allocated.
These budgets and forecast calculations are generally
For financial instruments not traded in an active market, covering a period of five years. For longer periods, a
the fair value is determined using appropriate valuation long term growth rate is calculated and applied to
techniques. Such techniques may include; project future cash flows after the fifth year.
Using recent arm’s length market transactions; Impairment losses of continuing operations, including
impairment on inventories, are recognised in the income
statement in those expense categories consistent with
reference to the current fair value of another instrument
the function of the impaired asset, except for a property
that is substantially the same;
previously revalued where the revaluation was taken
to other comprehensive income. In this case, the
a discounted cash flow analysis or other valuation impairment is also recognised in other comprehensive
models. income up to the amount of any previous evaluation.
An analysis of fair values of financial instruments For assets excluding goodwill, an assessment is
and further details as to how they are measured are made at each reporting date as to whether there is
provided in Note 24. any indication that previously recognised impairment
losses may no longer exist or may have decreased.
2.4.13 Impairment of non-financial assets If such indication exists, the Group estimates the
asset’s or cash-generating unit’s recoverable amount.
The Group assesses at each reporting date whether A previously recognised impairment loss is reversed
there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing
for an asset is required, the Group estimates the asset’s
recoverable amount. An asset’s recoverable amount is
the higher of an asset’s or cash-generating unit (CGU)
fair value less costs to sell and its value in use and is
only if there has been a change in the assumptions 2.4.15 Cash and short-term deposits
used to determine the asset’s recoverable amount
since the last impairment loss was recognised. The Cash and short-term deposits in the statement of
reversal is limited so that the carrying amount of the financial position comprise cash at banks and on
asset does not exceed its recoverable amount, nor hand and short-term deposits with a maturity of three
exceed the carrying amount that would have been months or less.
determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years. Such
For the purpose of the consolidated statement cash
reversal is recognised in the income statement unless
flows, cash and cash equivalents consist of cash
the asset is carried at a revalued amount, in which
and short-term deposits as defined above, net of
case the reversal is treated as a revaluation increase.
outstanding bank overdrafts.
The following criteria are also applied in assessing
impairment of specific assets:
2.4.16 Provisions
2.4.14 Inventories Provisions are recognised when the Group has a
present obligation (legal or constructive) as a result of
Inventories are stated at the lower of cost and
a past event, it is probable that an outflow of resources
net realizable value. The management primarily
embodying economic benefits will be required to settle
determines cost of inventories using the weighted
the obligation and a reliable estimate can be made of
average method. The management estimates the net
the amount of the obligation.
realizable value of inventories based on assessment
75
of receipt of committed sales prices and provide for
excess and obsolete inventories based on historical Where the Group expects some or all of a provision
usage, estimated future demand and related pricing. to be reimbursed, the reimbursement is recognised as
In determining excess quantities, the management a separate asset but only when the reimbursement is
considers recent sales activities, related margin virtually certain. The expense relating to any provision
and market positioning of its products. However, is presented in the income statement net of any
factors beyond its contract, such as demand levels, reimbursement.
technological advances and pricing competition, could
change from period to period. Such factors may require If the effect of the time value of money is material,
the Group to reduce the value of its inventories. provisions are discounted using a current pre-tax rate
that reflects, where appropriate, the risks specific to the
Costs incurred in bringing each product to its present liability. Where discounting is used, the increase in the
location and condition is accounted for as follows: provision due to the passage of time is recognised as a
finance cost.
• Purchase cost on an actual basis
2.4.17 Post-employment benefits
• Closing balance of the inventory on weighted average
Defined Benefit Plan - Gratuity:
cost.
Gratuity is a post employment benefit plan. Provisions
have been made for retirement gratuities from the
first year of service for all employees in conformity
with LKAS 19. However under the Gratuity Act No.
12 of 1983, the liability to an employee arises only
on completion of five years of continued service, The
Company is liable to pay gratuity in terms of relevant
statute. In order to meet this liability the Group uses
an actuarial valuation method in accordance with LKAS
19.

The cost of providing benefits under gratuity is (ii) SLFRS 14 -Regulatory Deferral Accounts
determined using the projected unit credit method.
Actuarial gains and losses are recognised in full in The scope of this standard is limited to first-time
the period in which they occur in the statement of adopters of SLFRS that already recognise regulatory
comprehensive income. The defined benefit liability deferral account balances in their financial statements.
comprises the present value of the defined benefit Consequently, the financial statements of rate
obligation using a discount rate based on market yields regulated entities that already apply SLFRS, or that
at the end of reporting period on government bonds of do not otherwise recognise such balances, will not be
a similar tenure as the estimated term of the gratuity affected by this standard. This standard is effective for
obligation. the annual periods beginning on or after 01 January
2016.
The gratuity benefit of the Group in unfunded.
(iii) SLFRS 15 -Revenue from Contracts with Customers
Defined Contribution Plans
SLFRS 15 establishes a comprehensive framework for
Employees are eligible for Employees’ Provident Fund determining whether, how much and when revenue
Contributions and Employees’ Trust Fund Contributions is recognized. It replaces existing revenue recognition
in line with the respective statutes and regulations. guidance, including LKAS 18 Revenue, LKAS 11
The Company contributes 12% and 3% of gross Construction Contracts and IFRIC 13 Customer Loyalty
emoluments of employees to Employees’ Provident Programs. This standard is effective for the annual
Fund and Employees’ Trust Fund respectively. periods beginning on or after 01 January 2017.
76
2.5 Sri Lanka Accounting Standards Not Yet

Effective
The standards and interpretations that are issued
but not yet effective up to the date of issuance of the
Company’s financial statements are disclosed below.
The Company intends to adopt these standards, if
applicable, when they become effective.
(i) SLFRS 9 -Financial Instruments: Classification and

Measurement
SLFRS 9, as issued reflects the first phase of work on

replacement of LKAS 39 and applies to classification
and measurement of financial assets and liabilities.
SLFRS 9 will become effective on 01st January 2018.
The impact on the implementation of the above
Standard has not been quantified yet.
Company Group
2015 2014 2015 2014
LKR LKR LKR LKR
3 REVENUE
Sale of goods
Sales - local 4,777,181,573 4,522,465,701 4,777,272,859 4,524,468,638
Sales - Exports 271,429 - 318,157 1,338,588
4,777,453,002 4,522,465,701 4,777,591,016 4,525,807,226
Less: Sales tax (45,174,512) (44,192,425) (45,174,512) (44,192,425)
Sales of goods total 4,732,278,490 4,478,273,276 4,732,416,504 4,481,614,801
- -
Rental income 116,012,957 90,774,054 116,012,957 90,774,054
Advertising income 7,120,765 10,607,578 7,120,765 10,607,578
Commission income 1,189 175,937 1,189 175,937
Service income 8,642,561 11,881,250 8,642,561 11,881,250
4,864,055,962 4,591,712,095 4,864,193,976 4,595,053,620
Company Group 77
2015 2014 2015 2014

LKR LKR LKR LKR
4 OTHER OPERATING INCOME

Profit on disposal of property, plant &
equipment 2,878,550 (3,045,629) 2,628,077 (3,045,629)
Sundry income 2,592,097 2,328,944 2,036,242 7,636,935
Unclaimed creditors written back 4,058,540 - 4,058,540 -
Income on investment in Unit Trust 98,919,103 220,717,726 98,919,103 220,717,726
Dividend income 4,050,000 107,998,683 - -
112,498,290 327,999,724 107,641,962 225,309,032
Company Group
2015 2014 2015 2014
LKR LKR LKR LKR
5 FINANCE COSTS
Interest expense on overdrafts 5,075,090 27,685,103 5,075,090 27,685,103
Interest expenses on loans & borrowings 94,505,666 92,209,512 94,505,666 92,209,512
Lease interest 57,477 224,196 57,477 224,196
99,638,233 120,118,811 99,638,233 120,118,811

Company Group
2015 2014 2015 2014
LKR LKR LKR LKR
6 FINANCE INCOME
Interest income 5,256,834 4,812,813 5,256,834 4,812,813
5,256,834 4,812,813 5,256,834 4,812,813
Company Group
2015 2014 2015 2014
LKR LKR LKR LKR
7 PROFIT BEFORE TAX

Administration Expenses
Directors' emoluments 4,725,000 32,010,000 4,725,000 32,010,000
Depreciation 123,042,990 95,551,905 148,243,941 114,706,218
Amorisation of intangible assets - - 17,088,813 10,655,944
Personnel costs includes -
78 - Gratuity 11,895,869 8,988,907 13,966,197 10,130,289
- EPF & ETF 55,009,801 50,804,115 59,278,038 54,428,078
- Other staff costs 492,812,275 437,848,892 528,752,310 470,489,387
Donations 1,795,900 1,085,486 1,795,900 1,537,486
Audit fees 1,040,000 850,000 1,700,000 1,491,500
Selling and Distribution Expenses

Transport cost 4,338,797 8,630,379 4,338,797 8,630,379
Marketing & promotions 144,149,888 143,025,841 144,149,888 143,025,841
Company Group
2015 2014 2015 2014
LKR LKR LKR LKR
8 INCOME TAX EXPENSE

Current income tax
Current tax expense 18,474,419 140,693 25,923,703 14,505,213
Under/(over) provision 707,887 - 390,771 -
Dividend tax - - 450,000 11,999,854
Deferred income tax
Deferred taxation charge /(reversal) 120,495 (2,327,701) 1,358,224 (2,195,562)
Income tax expense/(income) reported 19,302,801 (2,187,008) 28,122,698 24,309,505
8 INCOME TAX EXPENSE (Contd...)

Company Group
2015 2014 2015 2014
LKR LKR LKR LKR
Statement of other Comprehensive

Income
Deferred income tax related to items
charged or credited directly to equity during
the year
Net gain on revaluation of building 5,274,387 - 22,050,809 -
Actuarial losses on defined benefit plans (1,336,967) (2,381,475) (1,988,414) (2,846,950)
Income tax charged/(reversed)
directly to OCI 3,937,420 (2,381,475) 20,062,395 (2,846,950)
8.1 A reconciliation between tax expenses and the product of accounting profit multiplied by the statutory tax rate is as
followed.
Company Group 79
2015 2014 2015 2014
LKR LKR LKR LKR
Accounting profit before tax 147,737,135 239,171,456 188,984,932 216,862,868

147,737,135 239,171,456 188,984,932 216,862,868
Income tax rate of 28% (2014 : 28%) 41,365,348 66,968,008 28,324,246 72,543,412
Income tax rate of 15% (2014 : 10%) - - 1,510,062 4,524,187
Under/(over) provision for previous year 707,887 - 390,771 1,338,168
Tax on export sales @ 12% (2014 : 12%) 450 18,170,087 450 18,170,087
Allowable expenses (51,123,421) (46,669,808) (58,274,579) (48,900,818)
Income exempt from tax (28,831,349) (93,247,490) (28,883,269) (93,352,817)
Non dedctable expenses 57,063,391 54,919,896 83,246,793 60,156,734
Other - - - 26,260
Dividend tax - - 450,000 11,999,854
Effect on deferred tax 120,495 (2,327,701) 1,358,224 (2,195,562)
19,302,801 (2,187,009) 28,122,698 24,309,505
The effective income tax rate 13.07% (0.91%) 14.88% 11.21%

Income tax expense reported 19,302,801 (2,187,008) 28,122,698 24,309,505

9 DEFERRED TAX ASSETS, LIABILITIES AND INCOME TAX RELATES TO THE FOLLOWING;
Company Balance Sheet Group Balance Sheet
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
Deferred Tax Liability

Capital allowances for tax purposes 53,052,798 51,780,473 71,770,650 54,128,046
Revaluation of property, plant and
equipment 14,153,856 6,196,117 30,930,278 6,196,117
67,206,654 57,976,590 102,700,928 60,324,162
Deferred Tax Assets
Defined benefit plans (13,322,204) (13,689,833) (15,837,737) (15,153,314)
Lease rent - (263,306) - (263,306)
Deferred revenue (1,649,696) (1,416,310) (1,649,695) (1,416,310)
Tax losses (6,654,992) - (144,738,263) (1,969,779)
Operating lease (Straight line) (11,643,044) (12,728,338) (11,643,044) (12,728,338)
(33,269,936) (28,097,787) (173,868,740) (31,531,048)
80 Net deferred tax liability/ (Assets) 33,936,718 29,878,803 (71,167,811) 28,793,115
Company Income Statementt Group Income Statement

31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
Deferred Tax Liability

Capital allowances for tax purposes 1,272,325 470,792 236,862 445,194
Revaluation of property, plant and
equipment 7,957,739 - 25,066,815 -
9,230,064 470,792 25,303,677 445,194
Deferred tax assets
Defined benefit plans 367,629 (4,400,428) (313,059) (4,717,834)
Lease rent 263,306 340,803 263,306 340,803
Deferred revenue (233,386) 1,105,023 (233,386) 1,105,023
Tax losses (6,654,992) (2,225,366) (4,685,213) (2,225,366)
Operating lease (Straight line) 1,085,294 - 1,085,294 9,668
(5,172,149) (5,179,968) (3,883,058) (5,487,706)
Deferred income tax charge / (Reverse) 4,057,915 (4,709,176) 21,420,619 (5,042,512)

- - - -
Reported in the statement of comprehensive
income 120,495 (2,327,701) 1,358,224 (2,195,562)
Reported in the statement of other
comprehensive income 3,937,420 (2,381,475) 20,062,395 (2,846,950)
10 PROPERTY, PLANT & EQUIPMENT

10.1 Company
10.1.1 Gross carrying amounts
Balance Balance
As at Acquisitions Reclassified / Disposals / Write-offs / As at
1-Apr-14 Transfers Revaluation Transfers Discarded 31-Mar-15
LKR LKR LKR LKR LKR LKR
At cost
Landscaping 884,560 - - - - 884,560
Building - leasehold 92,085,754 - - - (5,227,023) 86,858,731
Office equipment 182,265,353 8,172,640 - - (166,550) 190,271,443
Fixtures - other 38,078,783 - - - - 38,078,783
Fixtures - air conditions 12,558,168 - - - - 12,558,168
Furniture 65,930,020 1,205,805 - (375,900) (244,420) 66,515,505
Office equipment- other 5,527,915 - - - (9,036) 5,518,879
Shop fittings - fixtures 313,613,196 18,870,465 - (6,837,477) (6,101,453) 319,544,731 81
Shop fittings - mobiles 21,386,238 - - - (114,500) 21,271,738
Motor vehicles 39,133,789 - - (24,616,665) - 14,517,124
Motor vehicles -lease 4,718,750 - - - - 4,718,750
776,182,526 28,248,910 - (31,830,042) (11,862,982) 760,738,412
At valuation
Land 1,653,838,425 832,000,200 (82,038,625) - - 2,403,800,000
Building 146,030,000 - 11,370,000 - - 157,400,000
1,799,868,425 832,000,200 (70,668,625) - - 2,561,200,000
Balance Incurred Balance

As at During Reclassified / Disposals / Write-offs / As at
1-Apr-14 the year Revaluation Transfers Discarded 31-Mar-15
10.1.2 In the Course of
Constructions
Capital work in progress 4,622,006 859,361,552 - (860,249,115) (1,205,478) 2,528,965
Total gross carrying
Amount 4,622,006 859,361,552 - (860,249,115) (1,205,478) 2,528,965
Total 2,580,672,957 1,719,610,662 (70,668,625) (892,079,157) (13,068,460) 3,324,467,375


10 PROPERTY, PLANT & EQUIPMENT (Contd...)

10.1.3 Depreciation
Balance Balance
As at Acquisitions Charge for Disposals / Write-offs / As at
1-Apr-14 Transfers the year Transfers Discarded 31-Mar-15
At cost
Land scaping 884,560 - - - - 884,560
Building - leasehold 50,675,512 - 14,907,784 - (2,626,898) 62,956,398
Office equipment 83,335,701 - 17,337,769 - (70,704) 100,602,766
Fixtures - other 33,609,803 - 1,801,349 - - 35,411,152
Fixtures - air conditions 12,106,913 - 359,776 - - 12,466,689
Furniture 26,067,566 - 6,219,010 (136,557) (113,870) 32,036,149
Office equipment- other 1,964,687 - 338,849 - (3,572) 2,299,964
Shop fittings - fixtures 101,677,352 - 69,854,067 (2,905,928) (2,604,113) 166,021,378
Shop fittings - mobiles 13,765,902 - 1,625,818 - (50,569) 15,341,151
82
Motor vehicles 17,993,809 - 4,545,006 (12,366,121) - 10,172,694
Motor vehicles -lease 3,932,292 - 786,458 - - 4,718,750
346,014,097 - 117,775,886 (15,408,606) (5,469,726) 442,911,651
At valuation
Building 5,069,985 - 5,267,106 (10,337,091) - -
5,069,985 - 5,267,106 (10,337,091) - -
Total 351,084,082 - 123,042,992 (25,745,697) (5,469,726) 442,911,651

10.1.3 Net Book Value
31-03-2015 31-03-2014
LKR LKR
At Cost
Land scaping - -
Building - lease hold 23,902,333 41,410,242
Office equipment 89,668,677 98,929,652
Fixtures - other 2,667,631 4,468,980
Fixtures - air conditions 91,479 451,255
Furniture 34,479,356 39,862,454
Computer equipments - -
Office equipment- other 3,218,915 3,563,228
Shop fittings - fixtures 153,523,353 211,935,844
Shop fittings - mobiles 5,930,587 7,620,336
Motor vehicles 4,344,430 21,139,980
Motor vehicles -lease - 786,458
317,826,761 430,168,429 83
At valuation
Land 2,403,800,000 1,653,838,425
Building 157,400,000 140,960,015
2,561,200,000 1,794,798,440
10.1.5 In the course of constructions
Building work in progress - -

Capital work in progress 2,528,965 4,622,006
Total gross carrying amount 2,528,965 4,622,006
Total 2,881,555,726 2,229,588,875
10.1.6 The company uses the revaluation model of measurement of land and buildings. The company engaged chartered
valuer M/S P.B Kalugalagedara & Associates an accredited independent valuer, to determine the fair value of its land
and buildings. Fair value is determined by reference to market-based evidence. Valuations are based on active market
prices, adjusted for any difference in the nature, location or condition of the specific property. The date of the most recent
revaluation was 31 March 2015. The previous revaluation was on 01 September 2012.


Company
Cumulative
depreciation Net carrying Net carrying
If assets were amount amount
Class of asset Cost carried at cost 2015 2014
LKR LKR LKR LKR
Building 138,011,529 26,568,892 111,442,637 114,892,925

Land 1,564,424,636 - 1,564,424,636 732,424,436
10.1.7 Land and buildings with a carrying value of LKR 2,561,200,000 /= (2014 - 1,549,041,144 /= ) have been pledged as security
for term loans obtained, details of which are disclosed in Note 26.
10.1.8 The carrying value of motor vehicles under finance lease contracts at 31 March 2015 was LKR 0/= (2014 - LKR 786,459/= )
No additions during the year for motor vehicles under finance lease contracts. Leased assets are pledged as security for the
related finance lease liabilities.
84
10.1.9 The extent and the location of the entity’s land and buildings (Company) are shown below.
Address Land/ Building Valuation Extent

R 1-P 39.58+R0-
No. 10, Ward Place, Colombo 07. Land & Building Revalued
P9.91
No. 15, C.W.W. Kannangara Mawatha, Colombo 07. Land & Building Revalued R 2-P36.12
No. 21/5, C.W.W.Kannangara Mawatha, Colombo 07. Land & Building Revalued P.13.60
No.25/2 ,3,5,6 & 6B,C.W.W. Kannangara Mawatha,
Land Revalued P.29.54
Colombo 07.
No.17,17/1,17/1A,19 & 19A, C.W.W. Kannangara Mawatha,
Colombo 07.
The above lands were consolidated as a single land as at 31 March 2015. Consolidated survey plan was drawn for above
land for the purpose of constructing a multi purpose shopping complex and in the process of registering it with the relevant
authority.
No 29A, Jayathilaka Mawatha, Panadura Land & Building Revalued R.1 -P 2.16
Company
Property Extent Method of Effective Property Valuer Significant Sensitivity of

Valuation date of unobservable fair value to
valuation inputs unobservable
inputs
Land and Buildings

No. 10, Ward Place, R 1-P Open market 31st P.B. Estimated price per Positively
Colombo 07. 39.58+R0- value method March Kalugalagedara, perch LKR-3 Mn to correlated
P9.91 2015 Chartered 8 Mn & Estmated
Valuation Surveyor price per Square
foot- LKR 2,000 to
LKR 3,750
No. 15, C.W.W. R 2-P36.12 Open market 31st P.B. Estimated price per Positively
Kannangara Mawatha, value method March Kalugalagedara, perch LKR-10Mn correlated
Colombo 07. 2015 Chartered & Estmated price
Valuation Surveyor per Square foot-
LKR1,200
No. 21/5, P.13.60 Open market 31st P.B. Estimated price per Positively 85
C.W.W.Kannangara value method March Kalugalagedara, perch LKR-8Mn correlated
Mawatha, Colombo 07. 2015 Chartered & Estmated price
Valuation Surveyor per Square foot-
LKR1,200
No 29A, Jayathilaka R.1 -P 2.16 Open market 31st P.B. Estimated price Positively
Mawatha, Panadura value method March Kalugalagedara, per perch LKR- correlated
2015 Chartered 1Mn & Estmated
Valuation Surveyor price per Square
foot- LKR500 to
LKR3,750
Land
No. 25/2 ,3,5,6 & 6B, P.29.54 Open market 31st P.B. Estimated price per Positively
C.W.W. Kannangara value method March Kalugalagedara, perch LKR-6Mn correlated
Mawatha, Colombo 07. 2015 Chartered
Valuation Surveyor
No.17,17/1,17/1A,19 & P.27.16 Open market 31st P.B. Estimated price per Positively
19A, C.W.W. Kannangara value method March Kalugalagedara, perch LKR-10Mn correlated
Mawatha, Colombo 07. 2015 Chartered
Valuation Surveyor


10.2 Group
Balance Balance
At cost
Landscaping 884,560 - - - - 884,560
Building - leasehold 92,085,753 182,020,653 - - (5,227,023) 268,879,383
Office equipment 182,485,815 9,498,633 - - (166,550) 191,817,898
Fixtures - other 40,052,952 - - - - 40,052,952
Fixtures - air conditions 12,558,168 - - - - 12,558,168
Furniture 74,609,731 177,668,220 - (375,900) (244,420) 251,657,631
Computer equipments 55,178,780 41,031,285 - (537,727) - 95,672,338
86 Office equipment- other 14,578,720 49,402,991 - - (9,036) 63,972,675
Shop fittings - fixtures 313,613,196 81,710,216 - (6,837,477) (6,101,453) 382,384,482
Shop fittings - mobiles 21,386,238 - - - (114,500) 21,271,738
Motor vehicles 40,885,996 - - (24,616,665) - 16,269,331
Motor vehicles -lease 4,718,750 - - - - 4,718,750
853,038,659 541,331,998 - (32,367,769) (11,862,982) 1,350,139,906
At valuation
Land 2,175,694,294 832,000,200 72,105,506 - - 3,079,800,000
Building 397,930,000 - (97,730,000) - - 300,200,000
2,573,624,294 832,000,200 (25,624,494) - - 3,380,000,000

10.2.2 In the course of
constructions
Building work in
progress 42,102,326 3,405,169 - - - 45,507,495
Capital work in progress 33,388,492 953,323,866 - (889,015,603) (1,205,478) 96,491,277
Total gross carrying
amount 75,490,818 956,729,035 - (889,015,603) (1,205,478) 141,998,772
Total 3,502,153,771 2,330,061,233 (25,624,494) (921,383,372) (13,068,460) 4,872,138,678

10.2.3 Depreciation
Balance Balance
At cost
Land scaping 884,560 - - - - 884,560
Building - leasehold 50,675,511 30,876,787 14,907,784 - (2,626,898) 93,833,184
Office equipment 83,373,577 170,797 17,350,749 - (70,704) 100,824,419
Fixtures - other 35,012,567 - 2,030,934 - - 37,043,501
Fixtures - air conditions 12,106,913 - 359,776 - - 12,466,689
Furniture 33,862,714 46,226,139 6,617,174 (136,557) (113,870) 86,455,600
Computer equipments 27,687,464 503,607 15,178,990 (287,253) - 43,082,808
Office equipment- other 7,431,943 4,066,992 1,779,408 - (3,572) 13,274,771
Shop fittings - fixtures 101,688,684 13,471,268 69,854,067 (2,905,928) (2,604,113) 179,503,978
Shop fittings - mobiles 13,765,902 - 1,625,818 - (50,569) 15,341,151
Motor vehicles 19,746,017 - 4,545,006 (12,366,121) - 11,924,902 87
Motor vehicles -lease 3,932,292 - 786,458 - - 4,718,750
390,168,146 95,315,590 135,036,164 (15,695,859) (5,469,726) 599,354,313
At valuation
Building 19,405,757 - 13,458,978 (32,864,735) - -
19,405,757 - 13,458,978 (32,864,735) - -
Total 409,573,901 95,315,590 148,495,142 (48,560,594) (5,469,726) 599,354,313



Group
10.2.4 Net book value
31-03-2015 31-03-2014
LKR LKR
At cost
Land scaping - -
Building - leasehold 175,046,199 41,410,242
Office equipment 90,993,479 99,112,238
Fixtures - other 3,009,451 5,040,385
Fixtures - air conditions 91,479 451,255
Furniture 165,202,031 40,747,017
Computer equipments 52,589,530 27,491,316
Office equipment- other 50,697,904 7,146,777
Shop fittings - fixtures 202,880,504 211,924,512
Shop fittings - mobiles 5,930,587 7,620,336
88
Motor vehicles 4,344,429 21,139,979
Motor vehicles -lease - 786,458
750,785,589 462,870,515
At valuation
Land 3,079,800,000 2,175,694,294
Building 300,200,000 378,524,243
3,380,000,000 2,554,218,537
10.2.5 In the course of constructions
Building work in progress 45,507,495 42,102,326

Capital work in progress 96,491,277 33,388,492
Total gross carrying amount 141,998,772 75,490,818
Total 4,272,784,361 3,092,579,870
10.2.6 The company uses the revaluation model of measurement of land and buildings. The company engaged chartered
valuer M/S P.B Kalugalagedara & Associates an accredited independent valuer, to determine the fair value of its land
and buildings. Fair value is determined by reference to market-based evidence. Valuations are based on active market
prices, adjusted for any difference in the nature, location or condition of the specific property. The date of the most recent
revaluation was 31 March 2015. The previous revaluation was on 01 September 2012.
Cumulative
depreciation Net carrying Net carrying
If assets were amount amount
Class of asset Cost carried at cost 2015 2014
LKR LKR LKR LKR
Building 202,436,963 46,030,742 156,406,221 158,016,857

Land 1,918,268,618 - 1,918,268,618 1,086,268,418
10.2.7 Land and buildings with a carrying value of LKR 3,380,000,000 (2014 - LKR 2,272,705,372/= ) have been pledged as security
for term loans obtained, details of which are disclosed in Note 26.
10.2.8 The carrying value of motor vehicles under finance lease contracts at 31 March 2015 was LKR 0/= (2014 - LKR 786,459/= ).
No additions during the year for motor vehicles under finance lease contracts. Leased assets are pledged as security for the
related finance lease liabilities.
10.2.9 The extent and the location of the entity’s land and buildings (Group).
Address Land/ Building Valuation Extent 89

R 1-P 39.58+R0-
No. 10, Ward Place, Colombo 07. Land & Building Revalued
P9.91
No. 15, C.W.W. Kannangara Mawatha, Colombo 07. Land & Building Revalued R 2-P36.12
No. 21/5, C.W.W.Kannangara Mawatha, Colombo 07. Land & Building Revalued P.13.60
No.25/2 ,3,5,6 & 6B,C.W.W. Kannangara Mawatha, Colombo 07. Land Revalued P.29.54
No.17,17/1,17/1A,19 & 19A, C.W.W. Kannangara Mawatha,
Colombo 07.
The above lands were consolidated as a single land as at 31 March 2015. Consolidated survey plan was drawn for above
land for the purpose of constructing a multi purpose shopping complex and in the process of registering it with the relevant
authority.
No 29A, Jayathilaka Mawatha, Panadura Land & Building Revalued R.1 -P 2.16
No. 475/32, Kotte Road, Rajagiriya Land & Building Revalued P.29.54
No. 271A - 271F, Kaduwela Road, Battaramulla Land Revalued A.1 R.2 P. 10.4

10.2.10 PROPERTY, PLANT & EQUIPMENT (Contd...)
Group
Property Extent Method of Effective Property Valuer Significant Sensitivity of
Valuation date of unobservable inputs fair value to
valuation unobservable
inputs
Land and Buildings

No. 10, Ward Place, R1- Open 31st P.B. Estimated price per Positively
Colombo 07. P 39.58 + market value March Kalugalagedara, perch LKR-3 Mn to 8 Mn correlated
R0 - P 9.91 method 2015 Chartered Valuation & Estmated price per
Surveyor Square foot- LKR 2,000
to LKR 3,750
No. 15, C.W.W. R2 Open 31st P.B. Estimated price per Positively
Kannangara Mawatha, P .36.12 market value March Kalugalagedara, perch LKR-10Mn & correlated
Colombo 07. method 2015 Chartered Valuation Estmated price per
Surveyor Square foot- LKR1,200
No. 21/5, P.13.60 Open 31st P.B. Estimated price per Positively
90
C.W.W.Kannangara market value March Kalugalagedara, perch LKR-8Mn & correlated
Mawatha, Colombo 07. method 2015 Chartered Valuation Estmated price per
Surveyor Square foot- LKR1,200
No 29A, Jayathilaka R.1 -P 2.16 Open 31st P.B. Estimated price per Positively
Mawatha, Panadura market value March Kalugalagedara, perch LKR-1Mn & correlated
method 2015 Chartered Valuation Estmated price per
Surveyor Square foot- LKR500 to
LKR3,750
No. 475/32, Kotte Road, P.47.52 Open 31st P.B. Estimated price per Positively
Rajagiriya market value March Kalugalagedara, perch LKR-3Mn & correlated
method 2015 Chartered Valuation Estmated price per
Surveyor Square foot- LKR500 to
LKR5,000
Land
No.25/2 ,3,5,6 & P.29.54 Open 31st P.B. Estimated price per Positively
6B,C.W.W. Kannangara market value March Kalugalagedara, perch LKR-6Mn correlated
Mawatha, Colombo 07. method 2015 Chartered Valuation
Surveyor
No.17,17/1,17/1A,19 & P.27.16 Open 31st P.B. Estimated price per Positively
19A, C.W.W. Kannangara market value March Kalugalagedara, perch LKR-10Mn correlated
Mawatha, Colombo 07. method 2015 Chartered Valuation
Surveyor
No. 271A - 271F, A .1 R.2 Open 31st P.B. Estimated price per Positively
Kaduwela Road, P .10.4 market value March Kalugalagedara, perch LKR-1Mn to correlated
Battaramulla method 2015 Chartered Valuation 2.25Mn
Surveyor
11 INTANGIBLE ASSETS
11.1 Group
Balance Balance
At cost
Computer software 56,099,716 81,227,352 - - - 137,327,068
Brand names - 537,000,000 - - - 537,000,000
Brand acquisition cost - 135,974,584 - - - 135,974,584
56,099,716 754,201,936 - - - 810,301,652

91
11.1.2 Software Development in Progress

Computer software 68,469,089 - (68,469,089) - - -
68,469,089 - (68,469,089) - - -
Total 124,568,805 754,201,936 (68,469,089) - - 810,301,652
11.1.3 Amortization
Balance Balance
At cost
Computer software 48,429,395 - 17,088,812 - - 65,518,207
Brand names - - - - - -
Brand acquisition cost - - - - - -
48,429,395 - 17,088,812 - - 65,518,207

11 INTANGIBLE ASSETS (Contd...)

11.1.4 Net book value
31-Mar-15 1-Apr-14
Computer software 71,808,861 7,670,321

Brand names 537,000,000 -
Brand acquisition cost 135,974,584 -
744,783,445 7,670,321
11.1.5 Software Development in Progress

Computer software - 68,469,089
- 68,469,089
Total 744,783,445 76,139,410
Company Group
% 31-03-2015 31-03-2014 31-03-2015 31-03-2014
92 Holding LKR LKR LKR LKR
12 INVESTMENT IN
SUBSIDIARIES
Odel Properties (Pvt) Ltd. 100% 108,100,000 108,100,000 - -
Odel Information Technology
Services (Pvt) Ltd 100% 10 10 - -
Odel Lanka (Pvt) Ltd 100% 270,000,020 270,000,020 - -
Odel Apparels (Pvt) Ltd 100% 1,000 1,000 - -
BSL International (Pvt) Ltd 100% 1,000,000 1,000,000 - -
Greenfild Trading (Pvt) Ltd 100% 10 10 - -
Softlogic Brands (Pvt) Ltd 100% 600,000,000 - - -
979,101,040 379,101,040 - -
Impairment of investment (1,000,000) (1,000,000) - -
978,101,040 378,101,040 - -
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
13 INVENTORIES
Finished goods 1,421,696,593 1,373,991,850 1,969,002,679 1,382,412,343
Goods in transit 11,468,318 15,494,296 5,665,840 15,494,296
Provision for obsolete and slow moving items (72,138,852) (46,631,082) (76,800,959) (46,631,080)
Total inventories at the lower of cost and NRV 1,361,026,059 1,342,855,064 1,897,867,560 1,351,275,559
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
14 TRADE AND OTHER RECEIVABLES

Financial Assets - Loans & Receivables
14.1 Trade Debtors 14,656,060 16,073,157 49,651,084 16,832,988
Other debtors 26,532,953 12,983,875 28,906,318 12,983,875
41,189,013 29,057,032 78,557,402 29,816,863
Non financial assets
Deposits & prepayments 163,115,298 222,264,198 220,409,156 232,208,049
204,304,311 251,321,230 298,966,558 262,024,912
14.1 Trade debtors as at 31st March 2015 & 2014 are oustanding for less than 30 days.
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
93
15 DEFERRED LIABILITY
15.1 Deferred Revenue
Loyalty programe
At 1 April 5,058,249 9,004,763 5,058,249 9,004,763
Deferred during the period 10,543,330 8,549,044 10,543,330 8,549,044
Released to the income statement (9,709,811) (12,495,558) (9,709,811) (12,495,558)
At 31 March 5,891,768 5,058,249 5,891,768 5,058,249
15.2 Deferred Expenditure

Operating lease
At 1 April 45,458,351 37,510,613 45,458,351 37,510,613
Charged to the income statement (3,876,051) 7,947,738 (3,876,051) 7,947,737
At 31 March 41,582,300 45,458,351 41,582,300 45,458,351
Total deferred liability 47,474,068 50,516,600 47,474,068 50,516,599


Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
16 AMOUNTS DUE FROM RELATED
PARTIES
Amount due from subsidiary companies
Odel Properties (Pvt.) Ltd. - - - -
Odel Apparels (Pvt) Ltd 10,061,114 14,594,539 - -
Odel Lanka (Pvt) Ltd 132,521,701 131,064,025 - -
Odel IT Services (Pvt) Ltd - - - -
Greenfield Trading (Pvt) Ltd 287,233 136,586 - -
BSL International (Pvt) Ltd 4,912,954 4,209,748 - -
Softlogic Brands (Pvt) Ltd 1,119,538,831 - - -
Softlogic Communications (Pvt) Ltd - - (19,600) -
Softlogic Mobile Distribution (Pvt) Ltd - - 389,862 -
1,267,321,833 150,004,898 370,262 -
Less: Provision for doubtful debt - Odel
Lanka (65,532,013) (65,532,013) - -
94 Less: Provision for doubtful debt - BSL (4,209,748) (4,209,748) - -
1,197,580,072 80,263,137 370,262 -
17 INTEREST BEARING LOANS AND BORROWINGS (Company)
31-03-2015 31-03-2015 31-03-2014 31-03-2014

Repayable Repayable 31-03-2015 Repayable Repayable 31-03-2014
Within 1 year After 1 year Total Within 1 year After 1 year Total
Bank loan (17.1) 1,193,434,501 165,633,625 1,359,068,126 672,511,084 278,975,852 951,486,936

Lease creditors (18) - - - 940,380 - 940,380
Bank overdraft (22.2) 8,363,362 - 8,363,362 90,146,232 - 90,146,232
1,201,797,863 165,633,625 1,367,431,488 763,597,696 278,975,852 1,042,573,548
17.1 Bank Loans

31-03-2014 Obtained Repayment 31-03-2015
LKR LKR LKR LKR
Short term working capital loans 525,000,000 5,676,008,042 (5,116,487,837) 1,084,520,205

Medium term project loans 426,486,936 - (151,939,015) 274,547,921
951,486,936 5,676,008,042 (5,268,426,852) 1,359,068,126
17 INTEREST BEARING LOANS AND BORROWINGS (Group)
31-03-2015 31-03-2015 31-03-2014 31-03-2014

Bank loan (17.2) 1,230,349,821 165,633,625 1,395,983,446 672,511,084 278,975,852 951,486,936

Lease creditors (18) - - - 940,380 - 940,380
Bank overdraft (22.2) 39,688,674 - 39,688,674 90,146,232 - 90,146,232
1,270,038,495 165,633,625 1,435,672,120 763,597,696 278,975,852 1,042,573,548
17.2 Bank Loans

31-03-2014 Obtained Repayment 31-03-2015
LKR LKR LKR LKR
Short term working capital loans 525,000,000 5,712,923,362 (5,116,487,837) 1,121,435,525

Medium Term Project Loans 426,486,936 - (151,939,015) 274,547,921
951,486,936 5,712,923,362 (5,268,426,852) 1,395,983,446 95
Terms of the loan

Lending Year Loan Nature of Security Repayment Term
Institution Amount facility
BOC 2012/2013 275Mn Medium Property at 475/32, Kotte Road, 6 Years

term loan Rajagiriya
HNB 2011/2012 200Mn Medium Property at 271-271F,Kaduwala Over a period of 06
term loan Road, Thalangama, Battaramulla years in 59 equal
owned by Odel Lanka (Pvt) Ltd monthly instalments
DFCC Bank 2012/2013 96Mn Medium Property at 15, C.W.W 84 equal monthly
term loan Kannangara Mw. Colombo 07 instalments (capital)
and 29 A,Jayathilaka Mawatha after a grace period of
Panadura 12 months
Union Bank 2014 / 2015 450Mn Short term Property at No.10, Ward Place, Monthly
Loan Colombo 07.
DFCC Bank 2014 / 2015 239Mn Short term Stock in trade Monthly
Loan
HNB 2014 / 2015 245Mn Short term Stock in trade Monthly
Loan

18 LONG TERM FINANCE LEASE COMMITMENTS - COMPANY/GROUP
31-03-2015 31-03-2015 31-03-2014 31-03-2014

Future minimum
lease payment - - - 997,857 - 997,857
Finance cost
allocated to future
period - - - (57,477) - (57,477)
Net liability - - - 940,380 - 940,380
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
19 RETIREMENT BENEFIT LIABILITY

Defined Benefit Plan Costs - Gratuity
96
As at the beginning of the year 48,892,259 33,176,448 55,131,740 37,008,874
Balance transferred from new subsidiaries - - 1,326,299 -
Charge for the year (19.1) 11,895,869 8,988,908 13,966,197 10,130,288
Payment made during the year (17,983,710) (1,778,364) (18,015,377) (2,175,102)
Actuarial loss/ (Gain) on obligation 4,774,881 8,505,267 7,101,478 10,167,680
Defined benefit obligation as at the end of
the year 47,579,299 48,892,259 59,510,336 55,131,740
19.1 Charge for the year

Current service cost 7,006,644 4,924,794 8,353,052 5,596,704
Interest cost 4,889,225 4,064,114 5,613,145 4,533,584
11,895,869 8,988,908 13,966,197 10,130,288
19.2 The Retirement benefit liability of Odel PLC is valued by Mr. Piyal Goonatilleke, who is a fellow member of the society of
actuaries (USA) and a member of the American Academy of Actuaries. Defined Liability is valued as at 31st March 2015
and the principal actuarial assumptions used are as follows.
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
Discount rate 8.6% 10% p.a. 9% 10% p.a.

Salary increases 10% 10% p.a 10% 10% p.a
Staff turnover
Age Turnover Turnover Turnover Turnover
20 30% 30% 30% 30%
25 30% 30% 30% 30%
30 20% 20% 20% 20%
35 10% 10% 10% 10%
40 5% 5% 5% 5%
45 2% 2% 2% 2%
Retirement Age 55 Years 55 Years 55 Years 55 Years
19.3 Sensitivity of Assumptions Employed in Actuarial Valuation

The following table demonstrates the sensitivity to a reasonably possible change in the key assumptions employed with all
other variables held constant in the employment benefit liability measurement.
The sensitivity of the Comprehensive Income Statement and the Statement of Financial Position is the effect of the assumed
changes in discount rate and salary increment rate on the profit and losss & employment benefit obligation for the year.
Discount Rate Salary Increment Rate

Assumptions 1% Increase 1% Decrease 1% Increase 1% Decrease 97
Impact on defined benefit obligation -

Company (4,409,061) 5,146,887 4,902,002 (4,294,534)
Impact on defined benefit obligation - Group (6,961,170) 5,258,338 4,947,883 (6,818,418)
19.4 Maturity Analysis

Year Retirement Term Death Disab Total
2015/16 105,531 3,443,019 62,277 110,249 3,721,076

2016/17 3,424,730 3,668,758 79,513 141,154 7,314,155
2017/18 1,968,876 4,150,444 92,775 156,796 6,368,891
2018/19 46,625 4,628,173 114,626 195,259 4,984,683
2019/20 3,203,618 4,980,785 150,403 261,078 8,595,884
2020/21 2,989,346 5,202,781 196,006 332,586 8,720,719
2021/22 6,797,414 4,784,969 240,580 400,346 12,223,309
2022/23 8,333,803 4,416,635 274,691 452,502 13,477,631
2023/24 10,911,297 4,059,086 305,029 505,218 15,780,630
2024/25 9,012,069 3,667,408 472,878 832,319 13,984,674
2014/15 Actual Benefit Payout 17,983,710
The expected benefits are estimated based on the same assumptions used to measure the company’s benefit obligation
at the end of the year and include benefits attributable to estimated future employee services.

Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
20 TRADE AND OTHER PAYABLES

Financial Libilities
Trade payables 315,706,002 262,369,486 307,315,017 297,467,690
Sundry creditors 77,260,831 127,576,596 110,767,891 127,576,596
Deposits & Advances 2,513,020 - 2,513,020 -
395,479,853 389,946,082 420,595,928 425,044,286
Non financial liabilities

Tax & accrued expenses 119,525,288 134,400,612 89,036,306 142,793,325
515,005,141 524,346,694 509,632,234 567,837,611
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
98
21 AMOUNTS DUE TO RELATED
PARTIES
Odel Properties (Pvt) Ltd 80,256,508 66,762,114 - -
Odel Information Technology Services (Pvt)
Ltd 36,143,460 7,052,082 - -
Odel Apparels (Pvt) Ltd - 3,785,883 - -
Softlogic Retails (Pvt) Ltd - - 220,804,538 -
Softlogic Bpo Service (Pvt) Ltd - - 1,013,004 -
Softlogic Corporate Service (Pvt) Ltd - - 19,425 -
Softlogic Destination Management Ltd - - 37,900 -
Softlogic Furniture (Pvt) Ltd - - - -
Softlogic Holdings (Pvt) Ltd - - 2,324,669 -
Softlogic Holdings Limited - - 27,000,000 -
Softlogic Information Technologies Ltd - - 274,286 -
Softlogic Restaurants (Pvt) Ltd - - 34,195 -
Uni Walker Ltd - - (19,080) -
116,399,968 77,600,079 251,488,937 -
Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
22 CASH AND CASH EQUIVALENTS

Components of cash and cash equivalents
22.1 Favourable cash & cash equivalents balance

cash & bank balances 99,952,941 38,122,571 110,614,424 40,667,433
22.2 Unfavourable cash & cash equivalents
balance bank overdraft (8,363,362) (90,146,232) (39,688,674) (90,146,233)
91,589,579 (52,023,661) 70,925,750 (49,478,800)
3/31/2015 3/31/2014
Number LKR Number LKR
23 STATED CAPITAL
Fully paid ordinary shares 272,129,431 2,795,513,620 272,129,431 2,795,513,620
272,129,431 2,795,513,620 272,129,431 2,795,513,620
99
24 FINANCIAL ASSETS & LIABILITIES - FAIR VALUES

24.1 The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
Investment in Unit Trust, cash and short-term deposits, staff loans, refundable deposits, trade receivables, trade payables,
amount due to/from related party and other current liabilities approximate their carrying amounts
The fair value of, obligations under finance leases, is estimated by discounting future cash flows using rates currently
available for debt on similar terms, credit risk and remaining maturities.
The fair value of loans from bank approximate the carrying value as loans have been obtained on floating rates.
Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments that are
carried in the financial statements.

24 FINANCIAL ASSETS & LIABILITIES - FAIR VALUES (Contd...)
Carrying Amount Fair value

2015 2014 2015 2014
Company LKR LKR LKR LKR
Loans and receivables

Staff loan 4,376,506 3,783,589 4,381,449 3,783,589
Refundable deposit 55,431,094 21,642,166 55,431,094 21,642,166
Finance lease - 940,380 - 2,072,497
59,807,600 26,366,135 59,812,543 27,498,252
Carrying Amount Fair value

2015 2014 2015 2014
Group LKR LKR LKR LKR

Staff loan 4,376,507 3,783,589 4,381,449 3,783,589
100
Finance lease - 940,380 - 2,072,497
88,291,001 26,366,135 84,471,766 27,498,252
24.2 Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable,
either directly or indirectly
Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on
observable market data
As at 31 March 2015, the Group held the following financial instruments carried at fair value in the statement of financial
position:
Level 1 Level 2 Level 3

LKR LKR LKR LKR
Financial assets at fair value through
profit and loss
Investment in unit trust 2015 208,300 208,300 - -
Investment in unit trust 2014 2,072,417,726 2,072,417,726 - -
25 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to equity holders of parent by
the weighted average number of ordinary shares outstanding during the year. The weighted average number of ordinary
shares outstanding during the year and the previous year are adjusted for events, that have changed the number of
ordinary shares outstanding, without a corresponding change in the resources.
The following reflects the income and share data used in the Basic per Share computations
Amounts used as the numerators: 31-03-2015 31-03-2014

LKR LKR
Net profit 160,862,234 192,553,363

Net profit attributable to ordinary shareholders for basic earnings per share 160,862,234 192,553,363
Number of ordinary shares used as denominators:

Weighted average number of ordinary shares in issue applicable to basic
earnings per share 272,129,431 272,129,431
Adjusted weighted average number of ordinary shares applicable to basic
earnings per share 272,129,431 272,129,431 101
Earnings per share 0.59 0.71
26 ASSETS PLEDGED - ( Company/Group)

The following assets have been pledged as security for liabilities.
Nature of asset Mortgage Bank 2015 2014 Address

type
Land & Bulding Primary Union 310Mn 310Mn No. 10, Ward Place, Colombo 07.
Land & Bulding Primary DFCC 41Mn 281Mn No. 15, C.W.W. Kannangara Mawatha,
Colombo 07.
Land & Bulding Primary DFCC 55Mn 55Mn No 29A, Jayathilaka Mawatha, Panadura
Land & Building Primary BOC 275Mn 275Mn No. 475/32, Kotte Road, Rajagiriya
Land & Building Primary HNB 200Mn 200Mn No 271-271F, Kaduwala Road, Thalangama,
Battaramulla owned by Odel Lanka (Pvt) Ltd
Stock in trade Primary Sampath 150Mn 150Mn
Concurrent
Stock in trade Primary HNB 400Mn 400Mn
Concurrent
Stock in trade Primary DFCC 210Mn 210Mn
Concurrent
Stock in trade Primary NTB 100Mn 100Mn
Concurrent

27 CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

There were no significant capital commitments and contingent liabilities as of the Balance sheet date except for the
operating lease commitments stated in the note 30 to this financial statements and the Letter of credits executed for LKR
63,591,984./= (USD 472,371) for foreign purchases.
Contingent Liabilities
i. Odel Information Technology Services (Pvt) ltd, a fully owned subsidiary of Odel PLC received an income tax assessment
from the department of Inland Revenue for an additional income tax liability of Rs 33.3mn (including penalty) for the years
of assessments 2007/2008, 2008/2009, 2009/2010, 2010/2011 and for 2011/12. Company has lodged an appeal against the
said assessments and the outcome of the appeal is pending.
ii. Odel Properties (Pvt) Ltd, a fully owned subsidiary of Odel PLC received an income tax assessment from the department of
Inland Revenue for an additional income tax liability of Rs.10.5mn (including penalty) for the years of assessments 2011/12
and 2012/13. Company has lodged an appeal against the said assessments and the outcome of the appeal is pending.
iii. Odel PLC received an income tax assessment from the department of Inland Revenue for an additional income tax liability
of Rs 16.02mn (including penalty) for the years of assessment 2009/10. Company has lodged an appeal against the said
102 assessment and the Department of Inland Revenue has issued their determination on 14th January 2015, confirming
the assessment. The company has lodged an appeal with Tax Appeal Commission and the determination of the same is
pending.
28 OTHER FINANCIAL ASSETS

Company Group
31-03-2015 31-03-2014 31-03-2015 31-03-2014
LKR LKR LKR LKR
Financial assets at fair value
through profit and loss
Investment in unit trust 208,300 2,072,417,726 208,300 2,072,417,726

Staff loan 4,376,506 7,136,491 4,376,506 7,136,491
60,015,900 2,115,419,610 88,499,300 2,115,419,610
Total current 7,515,463 2,080,880,956 7,515,463 2,080,880,956

Total non current 52,500,437 34,538,654 80,983,837 34,538,654
29 RELATED PARTY DISCLOSURES

The financial statements include the financial statements of the Group and the subsidiaries listed in the following table:
% of equity interest
Name 31-03-2015 31-03-2014
Odel Apparels (Pvt) Ltd 100% 100%

Odel Information Technology Services (Pvt) Ltd 100% 100%
Odel Properties (Pvt) Ltd 100% 100%
Odel Lanka (Pvt) Ltd 100% 100%
BSL International (Pvt) Ltd 100% 100%
Softlogic Brands (Pvt) Ltd 100% 0%
The following table provides the total amount of transactions that have been entered into with the above related parties for
the relevant financial year and the information regarding outstanding balances at 31 March 2015 and 2014
29.1 Transaction with the parent and related entities

Fellow Subsidiaries 103
31-03-2015 31-03-2014
Name LKR LKR
Nature of Transaction
Balance as at 1 April (Before Provision) 72,404,819 (95,971,859)
Loan Granted 1,119,228,433 -
Purchase of Goods/Services (171,035,090) (231,578,708)
Settlement of Liabilities on behalf of the Company 130,323,698 399,955,386
Balance as at 31 March (Before Provision) 1,150,921,860 72,404,819
Above balances are included in the amount due to / due from related parties. Balance outstanding at the year end is
diclosed in the Note 16 and 21 to the financial statements
The above transactions are at the arms length and except for the loans given, all other amounts are due to/from on demand

29.2 Transactions with Key Management Personnel of the Company or its parent
The key management personnel of the Company are the members of its Board of Directors and that of its parent.
31-03-2015 31-03-2014
a) Key Management Personnel Compensation LKR LKR
Short-term employee benefits 4,725,000 35,190,000

Post-employment benefits - -
Other long term benefits - -
Termination benefit - -
Share based payments - -
4,725,000 35,190,000
30 OPERATING LEASE COMMITMENTS - GROUP AS LESSEE
The Group has entered into commercial leases for properties to operate its outlet network. These leases have an average
life of between 4 and 8 years. There are no restrictions placed upon the Group by entering into these leases.
104
Future minimum rentals payable under non-cancellable operating leases are as follows:
31-03-2015 31-03-2014
LKR LKR
Within one year 156,543,056 164,455,976

After one year but not more than five years 367,969,439 519,244,494
More than five years 244,535,929 102,780,829
769,048,424 786,481,299
31 DIVIDENDS PAID AND PROPOSED
31-03-2015 31-03-2014
LKR LKR
Declared and paid during the year:

Dividends on ordinary shares:
Final dividend for 2014: 12 cents per share (2013: 10 cents per share) 32,655,532 27,212,943
Interim dividend for 2015: 12 cents per share (2014: 12 cents per share) 32,655,532 32,655,532
65,311,064 59,868,475
32 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group’s principal financial liabilities comprise loans and borrowings and trade and other payables. The main purpose
of these financial liabilities is to finance the Group’s operations.
The Group has loan & receivables, trade and other receivables, and cash and short-term deposits that are derived directly
from its operations.
The Group’s senior management oversees the management of the financial risks. The Board of Directors reviews and
agrees policies for managing each of these risks which are summarized below.
Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Group’s exposure to the risk of changes in market interest rates arise due to the borrowings
with floating interest rates. The movement of rates are closely monitored and refinancing options are available to manage
this risk.
33 INTEREST RATE SENSITIVITY

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans 105
and borrowings. With all other variables held constant, the Group’s profit before tax is affected through the impact on
floating rate borrowings, as follows:
Increase/
decrease in Effect on profit
basis points before tax
2015
Loan Interest +100 (3,583,881)
Loan Interest -100 3,583,881
2014
Loan Interest +100 (6,683,756)
Loan Interest -100 6,683,756
The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market
environment, showing a significantly higher volatility than in prior years.
Credit risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Group has minimal exposure to credit risk from operating activities due to nature of business.
The risk from its financing activities, including deposits with banks and financial institutions is managed by dealing with
institutions carrying high credit rating.
106
33 INTEREST RATE SENSITIVITY ( Contd….)
Company
Credit exposure
The Company’s maximum exposure to credit risk for the components of the statement of financial position as at 31 March 2015 and 2014 is the carrying
amounts of respective financial instruments.
As at 31 March 2015 Neither past-due nor impaired Past-due but not Total
impaired
AAA to AA- BBB+ to BB- Non-rated
Risk free Rs. Rs. A+ to A-Rs. Rs. Rs. Rs. Rs.

Trade debtors - - - - 14,656,060 - 14,656,060
Other debtors - - - - 26,532,953 - 26,532,953
Deposits 163,115,298 163,115,298
Staff loan 4,376,506 4,376,506
Refundable deposit 55,431,094 55,431,094
Investment in unit trust 208,300 208,300
Amounts due from related parties 1,197,580,072 1,197,580,072

Total - - - - 1,461,900,283 - 1,461,900,283
impaired
Risk free AAA to AA- BBB+ to BB- Non-rated
Rs. Rs. A+ to A-Rs. Rs. Rs. Rs. Rs.

Trade debtors - - - - 16,073,157 - 16,073,157
Other debtors - - - - 30,560,004 - 30,560,004
Deposits 222,264,198 222,264,198
Staff loan 3,783,589 3,783,589
Investment in unit trust 2,072,417,726 2,072,417,726
Amounts due from related parties 80,263,138 80,263,138
Total - - - - 2,447,003,978 - 2,447,003,978
Group
Credit exposure
The Company’s maximum exposure to credit risk for the components of the statement of financial position as at 31 March
2015 and 2014 is the carrying amounts of respective financial instruments.
impaired
Risk free AAA to AA- A+ to A BBB+ to BB- Non-rated
Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Trade debtors - - - - 49,651,084 - 49,651,084
Other debtors - - - - 28,906,318 - 28,906,318
Deposits 220,409,156 220,409,156
Staff loan 4,376,507 4,376,507
Investment in unit trust 208,300 208,300
Amounts due from related parties 370,262 370,262
Total - - - - 387,836,121 - 387,836,121
impaired
Risk free AAA to AA- A+ to A BBB+ to BB- Non-rated
Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Trade debtors - - - - 16,832,988 - 16,832,988
Other debtors - - - - 12,983,875 - 12,983,875
Deposits 232,208,049 232,208,049
Staff loan 7,136,491 7,136,491
Investment in unit trust 2,072,417,726 2,072,417,726
Amounts due from related parties - -
Total - - - - 2,377,444,522 - 2,377,444,522
107

33 INTEREST RATE SENSITIVITY (Contd...)

Liquidity Risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank
overdrafts, bank loans and finance leases. Access to sources of funding is sufficiently available and debt maturing within 12
months can be rolled with existing lenders.
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted gross
payments.
Company
Year ended 31 March 2015 On demand Less than 3 3 to 12 1 to 5 years > 5 years Total
months months
Interest-bearing loans and
borrowings - 1,137,995,558 92,275,025 177,012,854 - 1,407,283,438
Bank overdrafts 8,363,362 - - - - 8,363,362
Trade and other payables - 395,479,853 - - - 395,479,853
8,363,362 1,533,475,411 92,275,025 177,012,854 - 1,811,126,652
108
months months
borrowings - 583,359,898 134,186,825 300,917,806 - 1,018,464,529
Bank Overdrafts 90,146,233 - - - - 90,146,233
Finance lease liability - 332,619 665,238 - - 997,857
90,146,233 973,638,599 134,852,063 300,917,806 - 1,499,554,701
Group
months months
borrowings - 1,175,649,185 92,275,025 177,012,854 - 1,444,937,064
Bank overdrafts 39,688,674 - - - - 39,688,674
39,688,674 1,596,245,113 92,275,025 177,012,854 - 1,905,221,666
months months
borrowings - 583,359,898 134,186,825 300,917,806 - 1,018,464,529
Bank overdrafts 90,146,233 - - - - 90,146,233
Finance lease liability - 332,619 665,238 - - 997,857
90,146,233 1,008,736,804 134,852,063 300,917,806 - 1,534,652,906
The table below summarises the maturity profile of the Group’s financial Assets based on contractual undiscounted gross
recivables.
Company
months months
Trade debtors - 14,656,060 - - - 14,656,060

Other debtors - 26,532,953 - - - 26,532,953
- 41,189,013 - - - 41,189,013
months months
Trade debtors - 16,073,157 - - - 16,073,157

Other debtors - 12,983,875 - - - 12,983,875
- 29,057,032 - - - 29,057,032
Group
109
months months
Trade debtors - 49,651,084 - - - 49,651,084

Other debtors - 28,906,318 - - - 28,906,318
- 78,557,402 - - - 78,557,402
months months
Trade debtors - 16,832,988 - - - 16,832,988

Other debtors - 12,983,875 - - - 12,983,875
- 29,816,863 - - - 29,816,863

34 SIGNIFICANT TRANSACTIONS AND EVENTS

34.1 Business combinations and acquisition of non-controlling interests
34.1.1 Acquisitions in 2014/2015
Acquisition of Softlogic Brands (Pvt) Ltd
On 21st March 2015, the Group acquired 100% of the voting shares of Softlogic Brands (pvt) Ltd, a subsidiary of Soft Logic
Holdings PLC for a consideration of Rs 600,000,000/=. Softlogic Brands possesses the largest international branded apparel
and fashion accessory portfolio in Sri Lanka. Softlogic Brands has over 41,000 sq.ft. of prime retail space in colombo, in
which 20 brands are being retailed.
Assets acquired and liabilities assumed
The provisional fair values of the identifiable assets and liabilities of Softlogic Brands (Pvt) Limited as at the date of acquisition
were:
Fair value recognised

on acquisition
ASSETS
110 Property, plant and equipment 472,803,563
Intangible assets 135,974,584
Other non current financial assets 28,241,000
Deferred tax assets 121,048,891
Inventories 587,388,728
Trade and other receivables 34,950,849
Income tax recoverable 1,339,496
Amounts due from related parties 389,862
Other current assets 119,068,299
Cash in hand and at bank 7,164,522
Total Assets 1,508,369,794
Liabilities
Employee benefit obligation 1,326,299
Trade and other payables 72,101,818
Amounts due to related parties 1,343,344,893
Short term borrowings 63,915,320
Other current liabilities 11,872,349
Bank overdrafts 31,325,312
Total liabilities 1,523,885,991
Total identifiable net liability at fair value (15,516,196)
Fair value of the brand acquired 537,000,000

Goodwill arising on acquisition 78,516,196
Purchase consideration transferred 600,000,000
Cash flow on
acquisition
Net cash acquired with the subsidiary (24,160,790)

Cash paid (600,000,000)
Net cash flow on acquisition (624,160,790)
35 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

There have been no material events occurring after the balance sheet date that require adjustments to or disclosure in
the financial statements except for the issue of Rs.1,119,288,000/= worth of ordinary shares of the softlogic Brands (Pvt)
Limited on 1st June 2015 aginst the loan granted by Odel PLC
111
Investor information
The percentage of shares held by the public as at 31st March 2015 was 6.60% (2014 - 7.98%). The number of public shareholders
as at 31st March 2015 was 5,968.
Distribution of Shareholding as at 31st March 2015

There were 5,970 Registered shareholders as at 31st March 2015.
No. of Shares held No. of % of Total % of Total

Shareholders Shareholders Holding Holding
1 1,000 5,165 86.52 1,410,586 0.52

1,001 10,000 682 11.42 2,178,536 0.80
10,001 100,000 108 1.81 3,032,162 1.11
100,001 1,000,000 11 0.18 2,912,791 1.07
Over 1,000,000 4 0.07 262,595,356 96.50
Total 5,970 100.00 272,129,431 100.00
Analysis report of Shareholders as at 31st March 2015
112 Category No. of % of Total % of Total

Shareholders Shareholders Holding Holding
Individual 5,838 97.79 6,379,935 2.34

Institutional 132 2.21 265,749,496 97.66
Total 5,970 100.00 272,129,431 100.00
Resident 5,941 99.51 271,858,039 99.90

Non-resident 29 0.49 271,392 0.10
Total 5,970 100.00 272,129,431 100.00
Share Trading Information
2014/2015 2013/2014
Highest (Rs.) 28.00 28.10

Lowest (Rs.) 20.00 18.10
Closing (Rs.) 22.00 19.30
Dividend Information
2014/2015 2013/2014
Dividend per share (Cents) 12 24

Dividend pay out (%) 20 34
Twenty Largest Shareholders - As at 31st March 2015
No Name No of Shares Percentage %
1 Softlogic Retail (Pvt) Limited 192,941,102 70.9

2 Softlogic Holdings PLC 61,231,769 22.5
3 Sampath bank PLC/ Dr. T. Senthilverl 7,223,443 2.65
4 Seylan Bank PLC/ Thirugnanasambandar Senthilverl 1,199,042 0.44
5 People’s Leasing & Finance PLC/K.L.Udayananda 648,045 0.24
6 Mrs. Perera E.B.H.A 527,000 0.19
7 Mercantile Investments and Finance PLC 300,000 0.11
8 First Capital Markets Limited / Mr. I.P. Galhenage 300,000 0.11
9 Tangerine Tours (Pvt) Limited 225,600 0.08
10 Bank of Ceylon No.1 Account 197,400 0.07
11 Dee Investments (Pvt) Limited 190,400 0.07
12 Pan Asia Banking Corporation PLC/ Mr. Ravindra Erle Rambukwelle 146,000 0.05
13 Askold (Pvt) Limited 131,400 0.05
14 Asha Financial Services Limited/Mr. C.N Pakianathan 127,500 0.05
113
15 Miss. Nirosha Dilrukshi P.G 119,446 0.04
16 DFCC Vardhana Bank Limited/Mr. S.V.A Perera 100,000 0.04
17 Miss. Harnam Neesha 99,800 0.04
18 People’s Leasing & Finance PLC/ Mr M.A.U Gnanathilake 93,622 0.03
19 Waldoc Mackenzie Ltd/Dr H.S. Dilanjan 90,000 0.03
20 Andaradeniya Estate (pvt) Ltd 81,700 0.03
Notice of Meeting
NOTICE IS HEREBY GIVEN that the Annual General 8) To re-appoint the retiring Auditors, Messrs Ernst & Young
Meeting of Odel PLC will be held at the “Committee Room as Auditors of the Company for the ensuing year and to
C” of Bandaranaike Memorial International Conference Hall authorize the Directors to determine their remuneration.
(BMICH), Bauddhaolka Mawatha, Colombo 07 on Monday
the 28th day of September 2015 at 10.30 a.m. for the 9) To authorize the Directors to determine and make
following purposes: donations for the year ending 31st March 2016 and up to
the date of the next Annual General Meeting.
1) To receive and consider the Annual Report of the Board
of Directors and Financial Statements of the Company By Order of the Board
and of the Group for the year ended 31st March 2015
together with the Report of the Auditors thereon. Softlogic Corporate Services (Pvt) Ltd
2) To ratify the Interim Dividend of Rs. 0.12 per share paid

on 4th March 2015 as the Final Dividend for the year (Sgd.)
ended 31st March 2015.
Secretaries
3) To re-elect Mr. A K Pathirage who retires in terms

of Article 23(2) of the Articles of Association of the 25th August 2015
Company, as a Director. Colombo
114
4) To re-elect Dr. S Selliah who retires in terms of Article
23(2) of the Articles of Association of the Company, as a
Director. Note:
A member entitled to attend and vote at the Meeting is entitled to
5) To re-elect Mr. H K Kaimal who retires in terms of Article appoint a Proxy who need not be a member, to attend on behalf of
23(2) of the Articles of Association of the Company, as a him/her.
Director.
The form of Proxy is enclosed in this Report.
6) To re-elect Mr. R P Pathirana who retires in terms The completed Form of Proxy should be deposited at the Registered
of Article 23(2) of the Articles of Association of the Office of the Company, No. 475/32, Kotte Road, Rajagiriya not later
Company, as a Director. than forty eight (48) hours before the time appointed for the holding
of the meeting.
7) To re-elect Dr. I C R De Silva who retires in terms of Article
23(2) of the Articles of Association of the Company, as a
Director.
Form of Proxy
*I/We .............................................................................................................................................................................................of
........................................................................................................ being *a member/ members of ODEL PLC, do hereby appoint
.............................................................................................................................(holder of N.I.C. No. ..........................................)
of ....................................................................................................................... or (whom failing)
Mr A K Pathirage of Colombo (whom failing)

Dr S Selliah of Colombo (whom failing)
Mr H K Kaimal of Colombo (whom failing)
Mr R P Pathirana of Colombo (whom failing)
Dr I C R De Silva of Colombo
as *my/our Proxy to represent *me/us and to speak and vote for *me/us on *my/our behalf at the ANNUAL GENERAL
MEETING OF THE COMPANY to be held at the “Committee Room C” of Bandaranaike Memorial International Conference
Hall (BMICH), Bauddhaolka Mawatha, Colombo 07 at 10.30 a.m. on the 28th day of September 2015 and at any adjournment
thereof, and at every poll which may be taken in consequence thereof.
For Against
1) To receive and consider the Annual Report of the Board of Directors and
the Financial Statements of the Company and of the Group for the year
ended 31st March 2015 together with the Report of the Auditors thereon.
2) To ratify the Interim Dividend of Rs. 0.12 per share paid on 4th March 2015
as the Final Dividend for the year ended 31st March 2015.
3) To re-elect Mr. A K Pathirage who retires in terms of Article 23(2) of the
Articles of Association, as a Director of the Company.
4) To re-elect Dr. S Selliah who retires in terms of Article 23(2) of the Articles
of Association, as a Director of the Company.
5) To re-elect Mr. H K Kaimal who retires in terms of Article 23(2) of the
6) To re-elect Mr. R P Pathirana who retires in terms of Article 23(2) of the
7) To re-elect Dr. I C R De Silva who retires in terms of Article 23(2) of the
8) To re-appoint Messrs Ernst & Young, as Auditors and to authorize the
Directors to determine their remuneration.
9) To authorize the Directors to determine and make
Donations.
................................................... ...................................................
*Signature/s Date
Note:
1) *Please delete the inappropriate words.
2) Instructions as to completion are noted on the reverse hereof.
Form of Proxy
INSTRUCTIONS AS TO COMPLETION
1. Kindly perfect the Form of Proxy after filling in legibly your full name, address and the National Identity Card
number and signing in the space provided and filling in the date of signature.
2. A Member entitled to attend and vote at the Meeting is entitled to appoint a Proxy who need not be a member,
to attend and vote on behalf of him. Please indicate with an “X” in the boxes provided how your Proxy is to vote
on each resolution. If no indication is given, the Proxy in his discretion will vote as he thinks fit.
3. If the Form of Proxy is signed by an Attorney, the relevant Power of Attorney should also accompany the
completed Form of Proxy for registration, if such Power of Attorney has not already been registered with the
Company.
4. In the case of a Corporate Member, the Form of Proxy must be executed in the manner prescribed by the
Articles of Association/Statute.
5. The completed Form of Proxy should be deposited at the Registered Office of the Company, No. 475/32, Kotte
Road, Rajagiriya not later than forty eight (48) hours before the time appointed for the holding of the meeting.
Please provide the following details :
Shareholder’s N.I.C./ Passport/ Company Shareholder’s Folio Number Proxy Holder’s N.I.C. No.
Registration No. No. of shares (if not a Director)
held

Odel PLC Annual Report 2014/15

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AT ODEL, WE WEAR OUR ATTITUDE ON

OUR SLEEVE, LITERALLY. THE YOUNG

0 1,000 2,000 3,000 4,000 5,000

Total Equity Rs. Mn

Total Assets Rs. Mn

Net Profit Rs. Mn 0 50 100 150 200 250

Dear Shareholders, growth and favourable macro economic conditions, such as

Analysts have outlined that the retail sales worldwide will

Further down the road, we are looking at the possibility of

Going forward, we will continue to add value to stakeholders

1. Mr. Ashok Pathirage 4. Mr. Ranil Prasad Pathirana

Senior Management Team

Senior Management Team

Management Discussion And Analysis

Management Discussion And Analysis

Odel Home Promotions

World Animal Day 2014 - The Whale Song was an exciting

• Monochrome 2014: Closet collection carrying

Management Discussion And Analysis

4% 1% Employee welfare & engagement

Training & Development Reward & Remuneration

Sri Lanka GDP grew by 7.4 % in 2014 compared to a growth Overheads

The rights issue of shares in December 2012 infused Rs

Movement of AWPR and Inﬂation Dividends 29

16 A 12 cents dividend per share was paid for 2014/15, which

Equity base and Return on Equity Cash Flow

Non Current Assets

At year-end, Rs 600 mn was invested in Softlogic Brands

Environment Ecoart Festival

Celebrating World Animal Day annually with activities that

Section Criteria Has the Company met the Criteria

7.10.1 Non-executive directors Complied with.

38 Out of 5 directors 4 are non-executive directors.

7.10.2 Independent directors Complied with.

7.10.5 Remuneration Committee Complied with.

7.10.6 Audit Committee Complied with.

Annual Report of the Board of Directors on

Principal Activity Significant Accounting Policies

Future Developments Property, Plant & Equipment

Joint Mandatory Offer by Softlogic Holdings Directorate

Annual Report of the Board of Directors on

42 Directors’ interests in contracts and proposed Corporate Governance tomorrow

have expressed their willingness to continue in office and

Annual General Meeting

For and on behalf of the Board

30th July 2015

Statement of Directors’ Responsibilities

The responsibilities of the Directors, in relation to the financial Compliance Report

The Directors consider that, in preparing financial statements Sgd.

The Directors are responsible for keeping proper accounting

They are also responsible for safeguarding the assets of the

Report of the Remuneration Committee

The responsibilities of the Remuneration Committee include,

• Ensuring the remuneration package of employee is

• Recommending to the Board of Directors the

Report of the Audit Committee

Composition of the Audit Committee Meetings

Mr. Ranil Pathirana -Chairman Meeting

Mr. Sanjay Sumanthri Kulatunga 04

The Committee reviewed the Financial Reporting System

The Committee reviewed the status of their independence.

Report of the Audit Committee

to Directors that the assets of the company are safeguarded,