11-12 Dilmah

Contents
Page No.
Financial Highlights 02
Chairman’s Review 03
Board of Directors 07
Corporate Governance 09
Report of the Audit Committee 11
Report of the Remuneration Committee 11
MJF Charitable Foundation / Dilmah Conservation 12
Report of the Directors 20
Statement of Directors’ Responsibilities 23
Independent Auditors Report 24
Balance Sheet 25
Income Statement 26
Statement of Changes in Equity 27
Cash Flow Statement 28
Notes to the Financial Statements 29
Five Year Summary 48
Information to Investors 49
Notice of Meeting 51
Form of Proxy 53
Ceylon Tea Services PLC & Its Subsidiary / Annual Report 2011/2012 1
Financial Highlights
CONSOLIDATED
For The Year Ended 31st March
2012 2011 %
Rs.’ 000 Rs.’ 000 CHANGE

Turnover 5,839,922 5,789,033 0.9%
Net Profit before Income Tax 1,903,675 1,480,888 28.5%
Income Tax on Profits (233,035) (80,062) 191.1%
Net Profit after Income Tax 1,670,640 1,400,826 19.3%
Gross Dividends 800,000 700,000 14.3%
As at 31st March
Shareholders’ Funds 6,771,630 6,150,990 10.1%

Non-current Liabilities 86,271 78,281 10.2%
Current Assets 6,256,147 5,711,567 9.5%
Current Liabilities 751,447 616,748 21.8%
Property, Plant & Equipment (Incl. Leasehold) 1,109,611 888,957 24.8%
Intangible Assets 3,925 3,525 11.3%
Long Term Investments 239,665 241,970 -1.0%
Per Ordinary Share
Earnings (Rs.) 83.53 70.04 19.3%

Dividends (Rs.) 40.00 35.00 14.3%
Net Current Assets (Rs.) 275.24 254.74 8.0%
Market Value (Rs.) 650.00 800.00 -18.8%
Net Assets per Share (Rs.) 338.58 307.55 10.1%
Key Ratios
Return on Average Shareholder Funds (%) 25.86 24.36 6.1%

Price Earnings Ratio 7.78 11.42 -31.9%
Interest Cover (times) 1,285.53 795.89 61.5%
Dividend Cover (times) 2.09 2.00 4.4%
Liquidity (times) 8.33 9.26 -10.1%
2 Ceylon Tea Services PLC & Its Subsidiary / Annual Report 2011/2012
Chairman’s Review
I am pleased to present the annual report and audited financial statements for the year ended 31st March 2012.
TURNOVER & PROFITABILITY

Sales turnover reflects a marginal increase of 0.9% to Rs.5,839.9 million. The depreciation of the Rupee made a significant
contribution to profits. However this is only a provisional benefit, since advantages accruing from currency fluctuations
are eventually absorbed by increased costs of inputs.
TRADING ENVIRONMENT
Whilst the prevailing business environment in the country is encouraging, I cannot say the same of several other countries
in which we market, as the downturn in the global economy continues to affect them.
Giants operating in FMCG and other trades have seized the opportunity to develop a culture of discounting over the past
five years. Retailers have welcomed it by driving suppliers in all categories in the same direction. This culture forces
many small and medium suppliers concentrating on quality, out of business, in their inability to accept deep cuts and
simultaneously, maintain product integrity. This discount culture is exploited by big suppliers and retailers to eliminate
competition and to dominate in their respective trades.
Prices at supermarkets appear quite cheap if the decline in quality too, is accepted. The present environment does not cater
to customers who look for quality merchandise. Instead it tends to build bargain hunters to the detriment of suppliers. As
in the case of coffee shops, there is a growing presence of tea shops in many countries. Some 8 or 10 years back I stated that
the absence of a fair choice of merchandise in supermarkets will drive their affluent customers to the big, more expensive
department stores and delis.
Present economic conditions will not last forever. They may well begin to improve in the next two years when consumers
with cash surplus will begin to look around for quality. Brand names which flouted their integrity are likely to retain
their present low quality but, no doubt, increase their prices. That is the power of old colonial era brand names which
consumers still respect. I maintain that brand loyalty is one sided. Their owners display no loyalty to consumers or to the
quality of their products.
Your Company is reputed for its consistent high levels in freshness, quality, integrity and care for its customers. We
maintain at any cost and under all circumstances, every promise held out at the launch of Dilmah tea in Australia 24
years ago. Whatever we say and do, the real success of Dilmah tea comes from the quality of Single Origin PURE
CEYLON TEA, packed right where it is grown. That is very largely the strength of the brand. Your Company has
proved beyond doubt that Ceylon tea enjoys consumer perception of quality, which other producers envy.
Ceylon tea industry is different to that in all other countries. While multinational traders have successfully converted their
tea into a commodity, Ceylon tea has managed to stay aloof as a specialty, origin dominated product.
The current debate on making Sri Lanka a centre for trading in tea, and making Ceylon tea a commodity, is an age old
wish of a few tea traders. Vested interests, both local and foreign, are bringing pressure on politicians to pursue this
adventure once again. Let it be a warning to everyone who advocates the removal of restrictions placed on the import of
orthodox tea, that they are treading dangerous ground, filled with assumptions and illusions. Their assumptions are far
from realities in the market place. Demand for this flows from traders who built brands of foreign companies who, with
time and well known purpose, moved to more convenient locations.
Our tea traders, in their failure to build Sri Lankan brand names, owing to their drive for quick profits in the role of
suppliers, instead of marketers, are now looking for a trading platform. Everyone who supports free importation of
orthodox style tea will turn out to be a traitor of the industry and the country. The 150 year old industry should not fall
into the hands of adventurers who may, both wittingly and unwittingly, destroy our great industry.
Chairman’s Review (Contd...)
We produce about 325 million kg of tea per year and we sell all of it at the highest prices in the world. Average Ceylon
tea fetches in the market, between Rs.150 and Rs.200 per kg or more, than tea from every other country. So, what is the
problem? What are we looking for?
The plantation industry is in a more grievous condition today than when I addressed you last year. No meaningful steps
have been implemented towards accelerating replanting and other development work. There is a desperate need today to
provide low interest loan facilities to regional plantation companies for replanting a minimum hectareage per year. Such
facilities should be tied to specific programmes, and progress should be monitored by a private sector monitoring team of
competent planters.
Our production costs are high, due largely to pressure brought on RPCs to yield to unrealistic wage demands. Whilst
earnings of estate workers are not very high, low productivity has rendered the wage completely out of proportion with
worker contribution. The answer is to establish an ongoing dialogue with workers and trade unions to resolve this issue.
An aggressive redevelopment programme of plantations, with special emphasis on replanting, will increase yields and
reduce the cost of production. These are the urgent needs of plantations today. I urge government bodies to rescue the
plantation by working closely with the private sector.
Sixty four years after Independence from British rule, the tea industry remains captive to the exploitative colonial culture
of farmers, middlemen and marketers. Our tea producers face highly restrictive regulations in exporting their own tea,
which encourage the role of middlemen - traders. Traders, generally looking for quick profits , are condemned to remain
as suppliers, making no contribution to the long term interests of tea, by investing in creating Sri Lankan brands. They
fill the role of supplier and middlemen. As we know and experience all the time, a supplier is easily replaced and that
is the bane of Ceylon tea today. To change the outlook for tea, immediate measures should be introduced to encourage
and incentivise tea producers to actively engage in exporting tea, with special focus on building Sri Lankan brand names.
Within three years of implementing such a strategy, the outlook would be different.
Sri Lanka will be the first country which encourage farmers to market their tea crop by establishing links with end users
in supermarket chains, department stores etc. Other producing countries will turn to us for direction and guidance. That is
when Sri Lankans will realise how, by retaining the benefits form value addition and marketing of our produce will make
our nation prosperous and proud.
As a hands-on marketer, without any marketing qualifications or MBA behind my name, I was successful in building a
global brand name, taking advantage of the quality of Ceylon tea and its consumer perception as the world’s finest. I was
merely the messenger. I launched Dilmah initially in Australia and New Zealand, where I saw a huge gap in real Ceylon
tea, on supermarket shelves where for generations, there had been an abundance of Ceylon tea until the arrival of the
multinationals’ commoditised tea, deprived consumers of their favorite Ceylon tea. Like most Sri Lankans, Australian
retailers believed that a brand of Ceylon tea would not survive in competition with the multinationals. I realised that
multinationals and all big traders fill supermarket shelves with the low quality that generally enhances their bottom lines,
and that the consumers had no voice in the their quality preferences. I placed my faith and confidence in consumers who
were deprived of their favourite Ceylon tea. When Dilmah appeared in Coles supermarkets, it faced the onslaught of big
traders. However, consumers endorsed Coles’ decision to list Dilmah on their shelves in letters and phone calls saying,
“Thank you Coles for bringing Ceylon tea back.” Today, Dilmah tea is known to every person in Australia and New
Zealand and, it is enjoyed by most consumers. That is the power of PURE CEYLON TEA packed right where it is grown,
which is very largely the strength of the brand.
I am amused but not surprised at the advice and solutions offered in the newspapers by marketing consultants and
economists, that Sri Lankans have no hope of building brand names with Ceylon tea and, therefore, let us make it a
commodity! Theory, as in many instances, is very different to realities in the market place. All the proposals and advice
offered by them are meaningless in the practical context. If we act on expert advice which is available in abundance, the
penalty for it will be paid by future generations of Sri Lankans and, when disaster strikes, there will not be a single person
who would say, “I supported the import of orthodox style tea”.
The conclusion drawn by those favouring the import of tea for blending - that multinationals maintain an exclusive right
and ability to manage brands - must be tempered by the fact that in every market the reason for the failure of these
proponents of cost reduction is evident in the fact that their branding is in the form of teas that are amongst the cheapest
on shelf from any origin. If not their own brands, their efforts are directed towards offering the cheapest contract packing
option for international brands which have no loyalty to Ceylon tea apart from using the reputation of our teas to build
their brands. It does not take a genius to understand that a product that can justifiably claim to being the finest in quality
should also be presented as such in terms of price. That is the only sustainable option and a premium product at a premium
price is a formula that consumers will accept, if properly communicated and maintained. It should be clear to anyone that
trying to sell a premium product at a cheap price must end in grief, or in this case an attempt to compromise the premium
product at the expense of the millions that rely on it for their survival.
DILMAH- INNOVATIVE MARKETING

In 2007, Dilmah was felicitated by William Gorman, Chairman of the UK Tea Council for having brought innovation to a
traditional industry. Continuing that pioneering direction to bring style and luxury to tea through innovation, Dilmah has
maintained an emphasis on authenticity and quality in designing and implementing genuine innovation in tea.
Most importantly the Dilmah School of Tea which has expanded from its 2009 beginnings in Colombo to France, Czech
Republic, Poland and shortly elsewhere in Europe and Australasia. The School of Tea is an ambitious and uniquely Sri
Lankan endeavour to offer knowledge to hospitality professionals and explain the uniqueness in tea. It is the lack of
knowledge about tea that has led to the present situation where tea is a commodity, bought at the lowest price by most
consumers. An understanding of the healthfulness, different tastes, characters and styles of tea as well as the traditional
method of manufacture is guaranteed to transform that mindset and inspire passion and a willingness to pay for quality.
Dilmah innovation continues with our tea gastronomy programme which challenged Australian Chefs and tea drinkers in
putting tea back into the increasingly popular high tea occasion. The objective was to share understanding and therefore
respect for quality tea through this Challenge. It was held in 5 cities across Australia and will grow in 2012 to include New
Zealand and 3 European countries.
Dilmah tea in Five Senses extends the pleasure in tea and helps elevate the perception and enjoyment of tea to the rare
indulgence that certain seasonal teas offer. Dilmah has forged intelligent and scientific links between tea and cuisine as
well as mixology, bringing this traditional beverage into the 21st century in a very compelling manner. The growing
popularity in tea is linked to a large extent with its healthfulness. That is partly also due to the style that many new brands
have adopted. Maintaining our emphasis on a sustainable solution that is synchronised with the Ceylon tea Industry
with which we irrevocably partner to mutual benefit, Dilmah maintains an approach that combines style with substance.
Design and appearance are important but equally so are education from how to make a cup of tea to understanding the
Terroir in tea from different regions, establishing a scientific reason for consumption of tea at different moments and
occasions.
OVERVIEW OF MJF FOUNDATION & DILMAH CONSERVATION ACTIVITIES

As the concept of the social responsibility of business gains broader acceptance and becomes the obligation that it should
always have been, Ceylon Tea Services PLC is unique, both in having subscribed to the principle decades before it became
fashionable and, in doing so, in a very compelling manner.
During the period under review, the MJF Charitable Foundation, the approved charity managed by a team specifically
entrusted with the task of fulfilling the Dilmah Founder’s pledge to make business a matter of human service, counted
numerous achievements in the areas of empowering the underprivileged through entrepreneurship, empowering children
from marginalized communities through education and in supporting women and children in the North and East of Sri
Lanka as well as differently abled children in different parts of the country.
The MJF Centre in Moratuwa progressively expanded its activities with the inauguration of the Rainbow Centre, a facility
for children with Cerebral Palsy, adding to the centres work amongst children with Autism and Down syndrome. The
MJF Kids programme celebrated its 6th anniversary, having grown to several new centres, in Moratuwa and Point Pedro
in addition to Maligawatte, Peliyagoda, Pallansena. The MJF Centre in Ambalanthota expanded its activity to include
a proactive service for the empowerment of differently abled children in the area and guidance for their families in
addressing the social stigma that surrounds children with disability.
Dilmah Conservation continued to manage the extension of the philosophy of making business a matter of human service
to the area of the environment. It’s pioneering endeavour with the involvement of Dr. Nic Pilcher in Dugong Conservation
and its marine programmes including mapping and protection of coral formations have been recognised as ground
breaking and important initiatives both to conservation and tourism. The Dilmah Conservation project in Udawalawe
gained momentum with the Mankada Centre for empowerment of rural communities securing orders for its terracotta
products from British celebrity chef Jamie Oliver and Australian celebrity chef Peter Kuruwita. The Mankada project
envisages a solution to the human elephant conflict in the area by creating economic interdependence amongst nature and
communities whilst working towards the economic and social welfare of the communities.
Dilmah Conservation, like the MJF Charitable Foundation designs, funds and manages numerous projects in Sri Lanka
each year with the objective of sharing the success of Dilmah and Ceylon Tea Services PLC with the community in which
Dilmah was born. This commitment and its implementation are unique as highlighted by business author, Prof. Ron
Sanchez of the Copenhagen Business School in that the humanitarian and environmental programmes of both organisations
are specifically not aligned to any marketing objective. Whilst Dilmah customers share in the satisfaction derived from the
success of MJF Foundation and Dilmah Conservation programmes, neither are designed around commercial objectives
and focus specially on delivering tangible benefit to underprivileged communities and supporting natural eco systems.
DIVIDENDS
Your Directors propose to pay a Final Dividend of Rs.10/- per share which makes a total payment of Rs.40/- per share
together with the Interim Dividends of Rs.30/- per share paid previously. This is the best dividend the Company has paid
to shareholders.
APPRECIATION
I thank my colleagues, staff, our distributors, consumers and media worldwide, as well as our suppliers, for their
contribution and goodwill towards your Company.
Merrill J Fernando
Chairman
21st June 2012
Board of Directors
Mr. Merrill J. Fernando

Chairman
Merrill J Fernando is the founder of the MJF Group of Companies and the global brand, DILMAH which re-launched
Ceylon Tea successfully. He developed the first ever brand owned in a tea producing country, which is competing
successfully with multinational brands to become a respected global brand name. He pioneered value addition to tea at
origin, combined with branding and marketing with the objective of retaining in Sri Lanka the profits which are lost to the
producer through traders whose blending and packing centers are overseas.
Mr. Fernando established the MJF Charitable Foundation, a charity that works to create better conditions for plantation
workers, underprivileged children, elders and society victims. His primary objective is to make tea a sustainable industry
and to make business a matter of human service.
Mr. Himendra S. Ranaweera

Deputy Chairman/ CEO
Mr. Himendra S Ranaweera worked with the MJF Group of Companies for 21 years and is now its Deputy Chairman. He
was appointed to the Board of Ceylon Tea Services PLC in April 1998. Mr. Ranaweera has over 40 years experience in
Operations Management in Sri Lanka and overseas.
Mr. Malik J. Fernando

Director
Mr. Malik J. Fernando is Director Operations of the MJF Group. He was appointed to the Board of Ceylon Tea Services
PLC in September 1991 as an Executive Director. Mr. Fernando had his secondary education at Stonyhurst College,
England and obtained a B.Sc. in Management from Babson College, Boston. He joined the MJF Group as a Management
Trainee nearly 27 years ago. As the Director of Operations he also oversees the diversification activities of the Group.
Mr. Dilhan C. Fernando

Director
Mr. Dilhan C Fernando is Director Marketing of the MJF Group. He was appointed to the Board of Ceylon Tea Services
PLC in September 1991 as an Executive Director. Mr. Fernando had his secondary education at Stonyhurst College,
England and graduated from the London School of Economics with a BSc (Hons) in Economics. He joined the MJF Group
as a Management Trainee nearly 22 years ago. He leads the Marketing Division with a dedicated team.
Ms. Minette Perera

Director
Ms. Minette Perera, is the Finance Director of the MJF Group. She was appointed to the Board of Ceylon Tea Services PLC
in September 2000 as an Executive Director. Ms. Perera is a Fellow member of the Institute of Chartered Accountants
of Sri Lanka, the Chartered Institute of Management Accountants of UK and the Association of Chartered Certified
Accountants of UK. She has over 30 years working experience as a qualified accountant having worked in leading local
and international companies, and she has held board positions before joining the Company twelve years ago.
Board of Directors (Contd...)
Mr. Roshan Tissaaratchy

Director
Mr. Roshan Tissaaratchy, is Director Sales of the MJF Group and was appointed to the Board of Ceylon Tea Services PLC
in April 2005 as an Executive Director. Mr. Tissaaratchy is a Graduate of the University of Colombo and a Member of The
Chartered Institute of Marketing of UK. He also has an MBA from the University of Sri Jayawardenapura. He has over 20
years working experience in all aspects of Sales and Marketing and in a number of industries and in advertising.
Mr. Rajan Asirwatham

Non Executive Director
Mr. Rajan Asirwatham was appointed to the Board of Ceylon Tea Services PLC on 04th September 2008 as a Non Executive
Director. He is a Fellow member of the Institute of Chartered Accountants of Sri Lanka. After a distinguished career at
Ford Rhodes, now known as KPMG Ford, Rhodes, Thornton and Co., he retired as its Senior Partner and Country Head
on 31st March 2008.
Mr. Asiriwatham currently is the Chairman of the Financial Services Stability Committee of the Central Bank of Sri Lanka,
member of the advisory council of the Ceylon Chamber of Commerce and is on the Council of the Colombo University.
Mr. Gritakumar E. Chitty

Non Executive Director
Mr. Gritakumar E. Chitty, Attorney-at-Law and Advocate of the Supreme Court since 1968, is a former, Assistant Secretary-
General and founding Registrar of the UN International Law of the Sea Tribunal, Hamburg, in which capacity he was its
Chief Executive and Head of legal affairs (1996 - 2001). He was in a law practice in Sri Lanka from 1968, joined the United
Nations, New York, in 1975 serving for over 20 years. He was Principal Legal Officer in the UN Office of Legal Affairs.
Since 2002 he has been an Adviser to the Sri Lanka Delegation to the UN. Presently he is an adviser to the Ministry of
External Affairs and the Inter Ministerial Committee on Oceans and the Law of the Sea. He is a Member of the Appeals
Board of the International Sea Bed Authority, a member of the Editorial Board of the Law Journal “The Law and Practice
of International Courts & Tribunals”, a practitioner before the UN Disputes Tribunal and the UN Appeals Tribunal, and
a Trustee of the Weeramantry International Centre for Peace Education and Research.
Mr. Chitty is a Life Member of the Bar Association of Sri Lanka and Member, American Society of International Law.
Corporate Governance
The Board of Directors of Ceylon Tea Services PLC is committed towards attaining highest standards of Corporate
Governance and Corporate Ethics with the objective of safeguarding the interest of all stakeholders and ensuring future
business sustainability. We resolutely believe the need to balance interests of all stakeholders and endorse the independence
of business and society.
The Board of Directors

The Board, recognize that they are responsible for the formulation and implementation of overall business strategies and
policies, setting standards on a short, medium and long term basis and adopting good governance in the management of
the affairs of the Company.
Composition of the Board

The Board comprises of the Chairman, Deputy Chairman/CEO, four Executive Directors and two Non Executive
Independent Directors. The board is made up of members with substantial experience and knowledge concerning the
industry and the Executive Directors specialize in their respective functional areas. The names & profiles of the directors
are given on pages 07 to 08.
The Board has assessed the independence of Non-Executive Directors and is in the view that two of the board members
namely Mr. Rajan Asirwatham & Mr. Gritakumar Chitty are ‘Independent’ as per Listing Rules of the Colombo Stock
Exchange. The Non Executive Directors submit annual declarations of their independence/non-independence as per
Listing Rules.
Responsibilities of the Board

The Executive Chairman leads the Board and takes overall responsibility for its effectiveness and efficiency. The Board is
overall responsible for the Company’s performance, whilst fulfilling the shareholders and other stakeholder expectations.
The Board achieves this through Formulation of Business Strategy and Direction, Establishing Corporate Policy, Budgetary
Planning and Control over major Capital Investments and Expenses and ensuring sufficient Internal Controls are in place
to safeguard Company’s Assets. The Board in discharging its duties seeks independent professional advice from external
parties when necessary. Formal Board meetings are held once a quarter and special Board meetings are held, when
circumstances arise.
Supply of information
The Board has sufficient access to information. Accurate and relevant information relating to the matters referred are made
available to them well in advance. This includes profitability reports, Key Performance Indicators, appraisals and cost
benefit analysis. Whenever information made available to them is insufficient they call for additional information.
Board Committees
To facilitate focused attention on specific areas of review and in pursuance of the Listing rules of the Colombo Stock
Exchange, the board has appointed two sub committees: the Audit Committee and the Remuneration Committee.
Audit Committee
The Audit Committee is made up of two Non Executive Independent Directors, namely Mr. Rajan Asirwatham (Chairman)
& Mr. Gritakumar Chitty. The Audit Committee held quarterly meetings during the current financial year and the report
of the Audit Committee is given on page 11.
Remuneration Committee
The Remuneration Committee is made up of two Non Executive Independent Directors, namely Mr. Gritakumar Chitty
(Chairman) & Mr. Rajan Asirwatham. The Remuneration Committee held two meetings during the current financial year
and the report of the Remuneration Committee is given on page 11.
Corporate Governance (Contd...)
Performance Reviews
Market Review – The individual market performances are evaluated on a monthly and quarterly basis. The actual
performance is compared with the budgets, prior year performance, competitor activities, media communications and
other marketing activities.
Financial Review – The Chairman and Executive Directors review the monthly financial performance of the company.
The review covers profitability, cash flows, budgets and key performance indicators of the Company.
Audit Review – The internal audit function forms an important unit of the Company and the internal auditor carries
out a program of financial auditing of various functions and processes. The Company also has a team of ISO trained
auditors, who carry out regular system audits and report their findings to the management. Any non compliance is
discussed and attended immediately. As required by the certification process, external auditors of ISO and HACCP
verify and review the system and procedure of the Company and submit their reports.
HR Review – The Company carries out an appraisal of each and every employee on a bi-annual basis. The review
identifies the strengths and weaknesses of the employees, whilst evaluating his/her contribution to the performance
of the company. This review also identifies the training needs and external/internal training programs are conducted
to meet the identified needs.
Executive Management Team

The CEO and Operational Directors are responsible for the operational management of the company. They are ably
supported by senior managers covering all relevant areas of activities. All managers are professionally qualified in
their respective fields and the Company has paid emphasis on continuous professional development in their respective
functional and cross functional areas.
Systems and Internal Controls

The Board has overall responsibility of the systems of internal control and has put in place sufficient internal controls
to protect its assets, and to ensure the compliance with statutory requirements. The Company is ISO 9001: 2008 Quality
Management System, ISO 22000: 2005 and HACCP Food Safety Management System, BRC- Global Standard for Food Safety
and ISO/IEC 17025: 2005 Laboratory Accreditation for Chemical Testing, certified. All systems are well documented with
clearly defined processes, duties and responsibilities. The Company has Process Performance Indicators (PPI) covering all
operational and functional areas of the organization. These PPI’s are monitored monthly and management reviews are
held quarterly.
Risk Review
Evaluation of risk is an ongoing process adopted by the Company. The Board reviews and deliberates on the various risks
the Company may face and takes proactive decisions to ensure that all reasonable steps are taken to reduce or eliminate
such risk.
Financial Reporting
The Company publishes quarterly and annual accounts on time, with sufficient details to evaluate the Company
performance. Published financial statements are prepared in accordance with Sri Lanka Accounting Standards and
Colombo Stock Exchange disclosure requirements. The Directors ensure that confidential and price sensitive information
are not made public until published.
Relationship with Shareholders

Shareholders are encouraged to be present, actively participate and vote at the Annual General Meeting and the Directors
consider the AGM as an opportunity to constructively communicate with shareholders. The shareholders have the option
of raising any question relating to the performance of the Company and whenever possible the Company implements their
suggestions.
Report of the Audit Committee
The Audit Committee appointed by the Board of Directors of Ceylon Tea Services PLC, comprises of two Non Executive
Directors, both of whom are ‘Independent’ as per the Listing Rules of the Colombo Stock Exchange.
The members of the Committee during the year under review were Mr. Rajan Asirwatham (Chairman) and Mr. Gritakumar
Chitty. The Chairman of the Audit Committee is a qualified Chartered Accountant. The Deputy Chairman /CEO and
the Finance Director attend the meetings of the Audit Committee by invitation. The Committee held quarterly meetings
during the financial year under review.
The primary function of the Committee is to assist the Board in fulfilling its oversight responsibilities, primarily through
overseeing management’s conduct of the Company’s financial reporting process and systems of internal accounting and
financial controls, monitoring the independence and performance of the Company’s External Auditors and providing an
avenue of communication among the External Auditors, management and the Board.
The committee regularly reviews the scope of the internal audit function and reviews audit programs proposed. The internal
audit findings are discussed and follow up reviews of audit findings are undertaken to ensure that audit recommendations
are being implemented. The committee also assesses the effectiveness of the internal audit function. The committee is of
the view that the internal controls prevalent within the Company are satisfactory and provides reasonable assurance that
the financial position of the Company is well monitored and the assets are safeguarded.
The Committee has recommended to the Board of Directors that Messrs Ernst & Young be re-appointed the Auditors
for the year ending 31st March 2013 subject to the approval of the shareholders at the Annual General Meeting. The
Committee has reviewed the non audit services provided by the External Auditors to ensure that their independence as
Auditors has not been compromised. The Audit committee has also made its recommendations to the Board of Directors
on the fees payable to the Auditors for approval by the Board.
Sgd.
Rajan Asirwatham
Chairman – Audit Committee
21st June 2012
Report of the Remuneration Committee
The Remuneration Committee, appointed by and responsible to the Board comprises of two Independent Non Executive
Directors. The members of the Committee during the year under review were Mr. Gritakumar Chitty (Chairman) and
Mr. Rajan Asirwatham. The Committee held two meetings during the year under review.
The remuneration policy of the company is formulated to attract and retain high caliber personnel and motivate them to
develop and implement the business strategy in order to optimize long term share holder value creation.
The committee is responsible for determining the compensation of the senior management and to lay down guidelines and
parameters for the compensation structure of all management staff of the Company. The Deputy Chairman/CEO and the
Finance Director attend the meetings of the Remuneration Committee by invitation and in this decision making process
necessary information and recommendations are obtained from the Deputy Chairman / CEO.
The remuneration packages are aligned to the individual performance and to the strategic priorities.
Sgd.
Mr. Gritakumar Chitty
Chairman – Remuneration Committee
21st June 2012
MJF Charitable Foundation
The MJF Charitable Foundation was established by Dilmah Founder Merrill J. Fernando, to fulfil his commitment to
make his family business a matter of human service. The Foundation utilises part of the revenue from the global sales of
Dilmah to change the lives of the underprivileged in Sri Lanka. Each year, the Foundation works towards providing better
working conditions, improved healthcare facilities, housing, water and sanitation for plantation communities and cares for
their children at its Child Development Centres. The Foundation also nurtures children from marginalised communities
through the MJF Kids Programme, provides empowerment for war affected women, creates employment opportunities
through the Small Entrepreneur Programme and provides care and nutrition for the differently abled. For more details
visit www.mjffoundation.org
MJF Kids Programme

The MJF Kids Programme initiated in 2006 supports the wellbeing of children from marginalised communities in
Peliyagoda, Moratuwa, Negombo, Siyambalanduwa and Point Pedro. During the year under consideration, the number
of children supported increased to 1000 with the addition of children living near the MJF Foundation Centre in Moratuwa.
The MJF Centres provide educational support, character building exercises, nurturing of aesthetic abilities and daily
nourishment for children living in some of the worst slum areas in the country.
In addition to ongoing day-to-day activities at the 5 MJF Centres, special events as such World Environment day,
International Children’s day, New Year programme, Vesak Lantern competition, Leadership Training programme and
the year end Prasanga Prasansa programmes were conducted during the year.
In 2012, MJFCF looked at possibilities of introducing new initiatives to the Kids programme at Peliyagoda and gradually
added some of the new elements to the programme. Further it is envisaged that these new developments will be included
into the Negombo and Siyambalanduwa programmes in 2012/13. The programme to support the education of 300 war
affected kids in Point Pedro which commenced in October 2010 continued during the year under consideration.
Left: MJF Kids at the Moratuwa Foundation Centre explore creativity through puppetry. Centre: MJF Kids from the Peliyagoda MJF Centre during a dance recital. Right:
A young mother and child await their turn at a Dilmah sponsored medical camp held at the Kataboola Estate, Nawalapitiya.
Community Health Programmes

The MJF Charitable Foundation continued its community health programme in Colombo and Nawalapitiya with much
success in 2011/12. Accordingly, the Mammography machine and Ultra Sound Scanner donated to the National Cancer
Institute (NCI) continued to be used with more than 6000 patients being screened in 2010 and 2011. Additionally, MJFCF
donated 4000 mammography films to overcome any short supplies in stock. The NCI has appointed 5 radiographers to
work with the two units and on average nearly 20 patients are screened daily. In a special arrangement with the NCI,
a screening programme is being carried out for women from Dilmah plantations every Friday and approximately 160
– 200 plantation sector women benefitted through this programme. The ECG machine donated to the Westhall Estate
Government Hospital in Nawalapitiya continued to be used extensively during the year under consideration. The hospital
located within the Kahawatte Plantation of the MJF Group serves a large number of patients from Westhall and Barcaple
Estates and the surrounding villages. In addition, a 2-day health and dental care camp held at the Kataboola Estate in
Nawalapitiya treated over 1000 estate workers and children during the year under consideration.
Changing Lives – Small Entrepreneur Programme (SEP)

The Small Entrepreneur Programme of the MJF Charitable Foundation commenced in 2005 in the aftermath of the Asian
Tsunami. Up to now, 790 individuals with promise and skills have been supported under the scheme. In 2011/12, 200
new SEPs were supported. This includes 100 war widows in the north, 34 bicycle repairers, 40 carpenters and masons and
12 former combatants in Thoppigala from the Eastern Province. A further 12 differently abled entrepreneurs identified
through the Colombo Friend in Need Society were also supported during the year under consideration to coincide with
AIDEX 2011.
During the year under consideration, 1250 school children attached to 17 underprivileged schools in Thoppigala in the
Eastern Province were supported. Each student was presented with a pair of shoes, a luxury item for many and all 17
school libraries were provided with a selection of publications. Additionally, 25 school teachers were presented with
Tamil English dictionaries to facilitate their work. An orange and pineapple cultivation project which commenced in
Pahalalanda with the support of the Foundation headed by SEP recipient Samantha of Monaragala, steadily progressed
during the year under consideration. The project was further strengthened with the completion of a water supply scheme
for drinking and irrigation purposes benefitting 87 families.
Left: Samantha, a successful recipient of the Prison Reform and Reintegrate Programme. Centre: An SEP recipient busy at her vocation. Right: Preschool student playing
at one of the Dilmah sponsored plantation Child Development Centres.
The Plantations Programme

Nutrition for children
The Plantation Programme of the Foundation concentrated on providing balanced nutrition, enhanced education and
improved healthcare facilities for children in the plantation sector during the year under consideration. As a result, nearly
2000 children below the age of 5 continued to receive healthy and balanced mid day meals at 71 Child Development
Centres situated in the Kahawatte Plantations and at 19 Centres situated in Talawakelle Tea Estates. This is an ongoing
programme of the Foundation in operation for the past 6 years.
Special education for students
Through the Special Education Programme of the Foundation, General Certificate of Education – Ordinary Level students
in 22 schools in the Talawakelle Educational Zone continued to be supported for the second consecutive year with
additional classes in Mathematics, English and Science. Nearly 750 students were supported in 2011. As a result of the
Programme, 50.5 per cent of the total of 716 students who sat for the examination passed in Mathematics, with 59 students
receiving ‘A’ passes. Similarly, 52 per cent of the students passed in Science. In English, the pass rate hovered around 32.2
per cent, with 41 students receiving ‘A’ passes.
MJF Scholarship scheme
The MJF Scholarship scheme which commenced in 2004 to provide better education for plantation children reached
its milestone 200th mark in January 2012. Currently, 208 students have been supported by the scheme with 108 of the
recipients being at university level. Two recipients are students at the Medical Faculty, one at the Engineering Faculty
while another is studying Law at the Colombo University.
Left: MJF Scholarship recipient Anuruddhika is a budding lawyer today. Centre: Dilmah Founder with staff at the newly refurbished Somerset Medical Centre. Right:
Nurturing aesthetic abilities amongst the differently abled at Sithijaya.
Somerset Health Centre
A refurbished Merrill J. Fernando Health Centre at the Somerset Estate in Talawakelle was handed over to the Estate and
community during the year under consideration. The Centre will serve a population of 3600 plantation workers and their
families with health care services including emergency care, ECG services, hemoglobin and blood sugar level testing, natal
care, family planning, health education for adolescents, youth and elders, an oral cancer and TB control programme and is
equipped with an ambulance service to handle swift transfer of patients to Government Hospitals when required.
Supporting the differently abled

Supporting Sithijaya
The MJF Charitable Foundation continued to support the welfare of differently abled children and youth during the year
under consideration. In 2011, Sithijaya – the Merrill J. Fernando Centre for the Differently-Abled situated in Ambalantota
came directly under the management of the Foundation, as previously envisaged funding options through Government
channels was not forthcoming. By March 2012, over 40 children were receiving daily care and nutrition at the Centre.
Performing arts training for the differently abled
The special programme to provide performing arts training facilities for differently abled children commenced at the
Kahawatte Plantation in collaboration with the Sunera Foundation with an intensive training of trainers selected from 3
estates. The programme was formally launched in February 2011 and weekly workshops are held at the Westhall, Kataboola
and Craighead Estates in the Kahawatte Plantations. The Foundation provides training needs, workshop arrangements
and trainers’ allowances while the Sunera Foundation handles technical support, supervision and monitoring aspects. In
total, 72 differently abled children benefit from the workshops.
In addition, the MJF Centre in Moratuwa provides special therapeutical education and vocational training opportunities
for nearly 50 differently abled children, including children with Down syndrome and Cerebral palsy.
Left: A cooking exercise to instill qualities of working together as a group at the MJF Foundation Centre, Moratuwa Centre: Dilmah Global Partners at the Rainbow
Centre for children with Down syndrome and Cerebral palsy. Right: Students at the Curtiss Graphic Design Centre established to provide free training in graphic design
for underprivileged youth.
MJF Foundation Centre, Moratuwa

During the year under consideration, the MJF Foundation Centre in Moratuwa continued to provide services for the
betterment of children from marginalised communities, abused women and children with disabilities.
MJF Kids Programme, Moratuwa
At the Centre, over 60 children from low income families in the area receive educational support, classes in puppetry,
cookery exercises and a chance to overcome the poverty they are born into. As MJF Kids, they receive medical screening
and a chance to celebrate special days such as World Environment Day, International Children’s Day and participate in
outdoor excursions.
Rainbow Centre for special needs children
The Rainbow Centre which commenced operations in January 2012 to treat and care for children suffering from autism
and Down syndrome, today provides 33 children with these disabilities the chance of a better life. Programmes include
special education, singing and dancing lessons, hand crafts, painting, sewing, carpentry as well as stretching and breathing
exercises, sign language classes and the opportunity to engage in home gardening at the Dilmah Conservation Sustainable
Agriculture Research Centre situated in the Foundation Centre premises.
The Foundation is working with Cerebral Palsy Lanka Foundation (CPLF) to provide much needed care and education for
children suffering from Cerebral palsy. This programme commenced at the Rainbow Centre in May 2012 catering to nearly
25 children with therapeutical, simulative and sensory integration mechanisms. The Foundation is currently expanding
the staff at the Centre while also procuring equipment. The Centre will house Sri Lanka’s first Snoezelen room – a room
that functions entirely on sensory mechanisms for children with Cerebral palsy.
Curtiss Graphics Design Centre
The Curtiss Centre provides youth from marginaslied backgrounds a chance to receive free courses in graphic design.
In 2011, the first group of 15 students completed their 4-month design course and in March 2012, the second group of 17
students completed their 3-month course. Currently, the Centre is training their third group of students and envisages
providing training opportunities for 60 students from low income families in 2012. In addition to courses in graphics
design, the Centre also commenced a 3-month MS Office course for older MJF Kids and their siblings. The first group of 30
completed their training in April 2012 and a second group of 30 is now undergoing training.
Diri Piyasa - non residential Centre for women subjected to all forms of abuse
The Diri Piyasa Centre continued to provide medical, legal and vocational support to women who are subjected to all
forms of abuse living in and around Moratuwa. On average, around 75 – 100 women benefit from the services provided
by the Centre monthly.
Dilmah Conservation
Dilmah Conservation was initiated in 2007 by the Dilmah Group to incorporate environmental conservation efforts into
the MJF Charitable Foundation, which focuses on social justice. Dilmah Conservation works towards the sustainable use
of the environment in partnership with other organisations including the International Union for Conservation of Nature
- IUCN. The pledge made by Dilmah Founder Merrill J. Fernando to make business a matter of human service is deeply
ingrained in the work carried out by Dilmah Conservation. For more details visit www.dilmahconservation.org
Left: Biochar application carried out at a Dilmah tea plantation. Centre: Biodiversity assessments at Rilhena Estate have identified many species of endemic fauna and flora.
Right: Fish species found in Dilmah tea plantations replicated at Mankada.
Mainstreaming Sustainability
The World Commission on Sustainable Development defines sustainable development as development that meets the needs
of the present without compromising the ability of future generations to meet their own needs. Ensuring Environmental
Sustainability is the seventh Millennium Development Goal (MDG) adopted by the United Nations General Assembly in
2000. This goal explicitly targets maintenance of ecosystem services and the conservation of biodiversity. In keeping with
these international requirements, Dilmah Conservation has ongoing initiatives to address sustainability in Sri Lanka. Of
them, ongoing bioremediation activities in Dilmah tea gardens and biodiversity assessments to document endemic fauna
and flora are two important initiatives.
Bioremediation with Dilmah Tea Gardens
Biochar converts agricultural waste into a soil enhancer that can hold carbon, boost food security and discourage
deforestation and helps soils retain nutrients and water. It is an important tool to increase food security and cropland
diversity in areas with severely depleted soils, scarce organic resources, and inadequate water and chemical fertilizer
supplies. Dilmah Conservation, in a pioneering initiative, is working on a bioremediation programme to address the
deteriorating soil conditions in tea plantations and to explore sustainable solutions to support the industry. The aim of
the programme is to reduce fertiliser and other artificial inputs by at least 50 per cent while increasing the productivity of
the land by another 50 per cent. The first biochar application was conducted at the Pelmadulla Estate at Kahawatte and
Kataboola Estate at Nawalapitiya, chosen for their different agronomic and climatic conditions.
Biodiversity Assessments at Dilmah Tea Gardens
Dilmah Conservation launched a series of biodiversity assessments in Dilmah tea estates to ensure the conservation
of biodiversity within these estates. Estates have been identified to harbor various species of fauna and flora and the
assessments were launched in order to identify and document these species for future conservation. As first step, Dilmah
Conservation worked with the Department of Zoology, University of Colombo and the IUCN Sri Lanka Country Office to
assess Kahawatte and Rilhena, two estates in the Dilmah Group. The overall objective was to document the natural habitats
within these selected estates and to identify habitats which have special conservation value. Through the assessment, many
endemic and endangered species living in these tea gardens were uncovered. According to the preliminary survey, a total
of 498 species belonging to 112 plant families were recorded within the Rilhena Estate. Of them, 44 species are endemic to
Sri Lanka and 6 are listed as threatened species. The faunal study showed 215 faunal species including 36 endemics and
six proposed endemics. They include 16 species that are listed as nationally threatened, 4 Endangered and 12 Vulnerable
Dilmah Conservation
species and a further 27 species that are listed as nationally Near Threatened. Of the fish species discovered in Dilmah tea
gardens, several have been identified as endemic or indigenous. These fish have been replicated at Mankada – the Merrill
J. Fernando Centre for Art and Craft as fashion pendants.
Terrestrial Habitat & Species Conservation

Udawalawe Wildlife Programme
The Terrestrial Habitat & Species Conservation Programme of Dilmah Conservation addresses salient issues related to
wildlife conservation in Sri Lanka and includes work in the Udawalawe National Park and adjacent communities. The
initiative aims to make Udawalawe into a model national park with facilities for a worthy experience. Dilmah Conservation
works closely with the Department of Wildlife Conservation to carry out workshops to enhance the knowledge base of park
staff while continuing to upgrade the facilities inside the Elephant Transit Home (ETH) where orphaned baby elephants
are rehabilitated prior to being released into the wild. Solar panels have been set up to provide a continuous supply of
warm water to facilitate the milk making process for the orphans and footpaths within the Centre have been paved to
allow easy access. Dilmah Conservation continues to upgrade the Elephant Information Centre where comprehensive
information on the elephant and its behavior is displayed.
Left: Supporting elephant conservation in Sri Lanka through work with the department of Wildlife Conservation and the Elephant Transit Home. Centre: The Dilmah
sponsored Elephant Information Centre. Right: Beautiful and original craft produced at Mankada by a group of potters from a marginalised community in Udawalawe.
Mankada
Under its ongoing efforts to support communities, Dilmah has set up Mankada – the Merrill J. Fernando Centre for Art and
Craft which provides a livelihood source for a group of marginalised community members living on the periphery of the
National Park. The pottery centre produces handcrafted gift items, kitchen ware, replicas of endemic fauna, jewellry and
a number of original items soon to be available for sale at the Dilmah sponsored Gift Centre.
Butterfly Garden at Moratuwa
Dilmah Conservation has set up a butterfly garden at the Dilmah Conservation Sustainable Agriculture Research Centre
(DCSARC) in Moratuwa to nurture declining butterfly populations in the country. Sri Lanka is home to a diverse butterfly
population which has been slowly declining due to extensive urbanisation and reduction of nectar and host plants.
Butterfly fauna consists of 244 species, of which 23 are endemic and 76 species are conserved under the Fauna and Flora
Protection Ordinance. 66 species are listed as nationally threatened in the 2007 IUCN Red List of Threatened Flora and
Fauna in Sri Lanka. Over 30 varieties of butterflies have been identified at the Butterfly Garden at Moratuwa.
Dilmah Conservation
Marine Habitat & Species Conservation

Research on the Kayankerni Reef
Under Dilmah’s Marine Habitat & Species Conservation programme, research is carried out on the Kayankerni Reef in
the Eastern seaboard of Sri Lanka. It represents a relatively undisturbed marine environment, due to its inaccessible status
during the now concluded war, with an abundance of associated marine life. The reef is home to various marine habitats
ranging from shallow staghorn coral beds to deep coral domes, and steep reef slopes. The aim of the ongoing research
activities carried out in partnership with the Ocean Resources Conservation Association – ORCA is to document the status
of the reef including its species and to create a platform to upgrade its conservation status as a marine sanctuary in the
near future.
Left: Thriving coral in the Kayankerni Reef. Centre: A programme to conserve the globally threatened dugong. Right: Dilmah sponsored cashew plant nursery in the
Eastern Province.
Dugong Conservation
Dilmah is also working to conserve the dugong, classified as ‘Vulnerable to Extinction’ under the International Union
for Conservation of Nature (IUCN) Red List of Threatened Species. Although data on dugong distribution and numbers
is limited, they were reported to be both abundant and widely distributed in the shallow sea off Sri Lanka up until the
late 20th century. However over the past 30 years, dugong populations have declined dramatically and sightings are now
rare in most areas of Sri Lanka. In January 2012, Sri Lanka became a signatory to the Memorandum of Understanding on
the Conservation and Management of Dugongs and Their Habitats throughout their Range (Dugong MOU). The MOU
operates under the United Nations Environment Programme (UNEP) and the Convention on Migratory Species (CMS)
and Dilmah Conservation is working with the Department of Wildlife Conservation and the IUCN Sri Lanka Country
Office to implement the work programme.
Ecosystem Restoration
Batticaloa, a bustling city on the eastern coast of Sri Lanka suffered from dual natural disasters in the last thirty years. A
cyclone in 1978 and the Asian Tsunami in 2004 caused considerable loss of forest cover in Batticaloa. Dilmah Conservation
embarked on the Greening Batticaloa Initiative to address this situation by initially planting 50,000 cashew trees within
a span of 3-years starting in 2011 in the coastal areas between Valachchenai to Kalavanchikudi. Due to the enthusiasm
shown by the recipient communities, Dilmah Conservation was able to distribute all 50,000 cashew plants during 2011.
The initiative is carried out with assistance from the Cashew Cooperation and the relevant Divisional Secretariat. The
recipients were identified based on the available land extent and their ability to contribute to 50 per cent of the cost. On the
long-term, suitable support will be given to the community to produce cashew for commercial purposes. This will help
them in enhancing their livelihoods.
Dilmah Conservation
Environmental Education & Awareness

WED 2012 Initiatives
Under its initiative to create environmental education and awareness, Dilmah Conservation carried out a series of events
to celebrate World Environment Day (WED) 2012 for the second consecutive year. These activities were held in partnership
with the Sri Lanka Association for the Advancement of Science (SLAAS) and the Field Ornithology Group of Sri Lanka
(FOGSL). The media partner for the event was Funday Times supplement of the Sunday Times newspaper. The initiatives
are held to encourage youth to take care of nature around them as part of their everyday life and not limit it to one
particular day. Go Wild on the Web and Nature Database initiatives encourage young minds to use nature as their subject
and design websites that are both creative and educative as well as to document the various species of fauna and flora
found in their environments and to submit them online in order to build up a database of Sri Lankan faunal and floral
species specific to each area.
Left: Jaffna students with copies of the Tamil version of the Birds of Sri Lanka. Centre: Laying the foundation stone to rebuild the Field Work Centre in Thondamanaru.
Right: Uplifting the lives of indigenous communities - working with the Veddah community.
Reconciliation through the Power of Nature Initiative
Dilmah Conservation partnered with the Field Ornithology Group of Sri Lanka (FOGSL) and the Centre for Children’s
Happiness, Jaffna (CCH) on a landmark project aimed at healing conflict wounds through the use of nature. Reconciliation
through the Power of Nature used nature as therapy to reconcile communities traumatised by the war. A series of
workshops, field studies and visits to Sinharaja, facilitated by Prof Sarath Kotagama were carried out for students from
Jaffna, where they were given hands on, minds on experiences on ecology, bird watching, identification and knowledge
on the environment. As part of ongoing activities, Dilmah Conservation and FOGSL launched the Tamil version of The
Birds of Sri Lanka. This is Sri Lanka’s first Tamil language publication on birds and the first copy was presented to the
Chancellor of the Jaffna University Professor M. Sivasuriya by Professor Sarath Kotagama.
Rebuilding the Jaffna Field Work Centre
Dilmah Conservation laid the foundation stone to rebuild the Field Work Centre (FWC) in Thondamanaru as part of the
Reconciliation through the Power of Nature Initiative. The FWC was an integral part of scientific education in the Jaffna
District and was the location where many young and aspiring scientists nurtured their knowledge of science. Work is
already underway.
Culture & Indigenous Communities Programme
Dilmah Conservation is supporting the wellbeing of indigenous and traditional communities in Sri Lanka. The early
inhabitants of Sri Lanka, the Veddahs and members of the traditional Ahikuntika community are supported under this
initiative. Sri Lanka’s Eastern Veddah community, a group that had almost disappeared in the face of modernity and
three decades of war has been at the centre of Dilmah’s research. This has enabled their return into the mainstream. It also
enabled the holding of the Varigasabha for the first time in the Eastern Province in Vakarai. Their unique lives have been
documented and the data compiled into a coffee table publication. The culture of the Ahikuntika community is also being
documented and will be collated into a coffee table publication in the near future.
Report of the Directors
For The Year Ended 31st March 2012
The Board of Directors of Ceylon Tea Services PLC have pleasure in presenting their 31st Annual Report together with the
Audited Financial Statements of the Company for the year ended 31st March 2012, prepared in accordance with Section
152 of the Companies Act no 7 of 2007, the relevant Listing Rules of the Colombo Stock Exchange and recommended best
accounting practices.
Principal activities of the Group

The principal activity of the company is to manufacture, export and market tea bags and packets under the brand name
“Dilmah”. The principal activity of the Subsidiary Company is to manufacture, export and market tea in the form of liquid
tea concentrate and ready to drink tea.
Review of the year

A review of the business of the Group and its performance during the year with comments on financial results, future
strategies and prospects are contained in the Chairman’s review pages 03 to 06.
This Report together with the Financial Statements, given on pages 25 to 47, reflects the state of affairs of the Company.
Group results and appropriations

For the year ended 31st March 2012 2011
Rs. ‘000 Rs. ‘000
Revenue 5,839,922 5,789,033
Profit after tax 1,670,640 1,400,826
Balance from previous year 4,050,990 3,250,164
Final dividend for last year (450,000) (350,000)
Interim dividend for the current year (600,000) (250,000)
Balance to be carried forward 4,671,630 4,050,990
Proposed final dividend 200,000 450,000
Dividends
The Directors recommend the payment of a final dividend of Rs. 10/- per share in respect of the year ended 31st March
2012. In December 2011 and March 2012, the Company after having confirmed the status of solvency paid two interim
dividends of Rs.10/- and Rs. 20/- per share respectively. Therefore the total dividend for the year ended 31st March 2012
amounts to Rs.40/- per share, compared to Rs.35/- per share, paid for the last financial year.
Corporate Donations
We continue with the Company philosophy that business is a matter of human service, which was explained in the last
couple of Annual General Meetings. For the current year, the Company made a donation of Rs. 160.0 million (2010/2011
Rs. 135.0 million) to the MJF Charitable Foundation. The activities of the Foundation are given on pages 12 to 19 of this
Annual Report. Other Donations by the Company during the year amounted to Rs. 950,338/- (2010/11 - Rs. 232,425/-).
Taxation
The income tax exemptions which the Company enjoyed according to Paragraph c of sub Section (2) of Section 16 of
the Inland Revenue Act No. 10 of 2006, ended on 31st March 2011. According to the Section 59 A of the Inland Revenue
Amendment Act No.22 of 2011, effective from the year 2011/12, profits from exports of products with minimum domestic
value addition of sixty five percent and with Sri Lankan brand names are taxed at a concessionary rate of 10%.
Other income is liable to tax at 28%.
Employment
As at 31st March 2012, 538 persons were employed by the Group (31st March 2011 - 529)
Statutory Payments
The Directors confirm that, to the best of their knowledge all statutory payments in relation to taxes and duties and in
relation to employees have been made promptly on the due dates.
Report of the Directors (Contd...)
Compliance with Laws & Regulations

To the best of the knowledge and belief of the Directors, the Group has not engaged in any activities contravening the laws
& regulations of the country.
Property, Plant & Equipment

The expenditure incurred in the acquisition of Property, Plant & Equipment during the year under review was Rs. 367.0
million (2010/11 - Rs. 48.2 million). The details are shown in Note 3.1 of the Notes to the Accounts. The market value of
Property, Plant & Equipment is considered not materially different to the values stated.
Investments
Investments made by the company are detailed in Notes 5 and 6 of the Notes to the Accounts.
Stated Capital
The Stated Capital of the Company is Rs. 200,000,000/- divided into 20,000,000 Ordinary Shares. There was no change in
the Stated Capital during the year.
Shareholding
As at 31st March 2012, there were 718 (695 as at 31st March 2011) registered shareholders and their distribution is shown
on page 49.
The twenty major shareholders as at 31st March 2012 and the number of shares held and their percentage shareholding are
given on page 50.
Reserves
The total reserves as at 31st March 2012 stand at Rs. 6,571.6 million (2010/11 - Rs. 5,951.0 million) including general reserves
of Rs.1,900 million (2010/11 - Rs.1,900 million).
Going Concern
On the basis of current financial projections and facilities available, the Directors are confident that the Group has adequate
resources to continue business operations. Accordingly the Directors consider that it is appropriate to adopt the going
concern basis in preparing the financial statements.
Events occurring after the Balance Sheet Date

No significant events have occurred after the Balance Sheet date, which require adjustments to or disclosure in the Financial
Statements.
Directorate
The Directors of the Group are listed on the rear cover page of the report.
Mr. Merrill J Fernando retires` in terms of Section 210 of the Companies Act No.7 of 2007. A resolution is proposed to re-
appoint Mr. Merrill J. Fernando in terms of Section 211 (1) of the said Companies Act No.7 of 2007.
Mr. Gritakumar E Chitty retires` in terms of Section 210 of the Companies Act No.7 of 2007. A resolution is proposed to
re-appoint Mr. Gritakumar E Chitty in terms of Section 211 (1) of the said Companies Act No.7 of 2007.
Ms. Minette D A Perera retires by rotation in terms of section 24 of the Articles of Association of the Company and being
eligible offers herself for re-election at the Annual General Meeting.
Independence of Directors
In accordance with Rule 7.103 of Colombo Stock Exchange Rules on Corporate Governance, Mr. Rajan Asirwatham and
Mr. Gritakumar E. Chitty who are Non-Executive Directors of Company have submitted a signed and dated declaration
to the Board of their Independence.
Interests Register
The Group maintains an Interests Register in terms of the Companies Act, No. 7 of 2007. Relevant disclosures made
by the Directors on contracts and proposed contracts with the Group/Company appear under Note no 27.1.2/27.2.2 in
Related Party Disclosure to the Financial Statements on pages 46 to 47 of the Report. These interests have been declared at
Directors’ meetings.
Directors’ Emoluments
During the year under review, total remuneration of the Executive Directors amounted to Rs. 78,494,732/- and Non
Executive Directors amounted to Rs. 1,200,000/- (2010/11 - Executive Directors Rs. 74,724,865/-, Non Executive Directors
Rs. 575,000/-)
Report of the Directors (Contd...)
Directors’ Shareholding
The direct shareholdings of Directors together with that of their spouses & dependent children are as follows:
As at 31st March 2012 2011
Mr. Merrill J Fernando 200 200

Mr. Malik J Fernando 24,200 24,200
Mr. Dilhan C Fernando 24,200 24,200
Mr. Himendra S Ranaweera 20,084 20,084
Ms. Minette Perera 200 200
Mr. Roshan Tissaaratchy 4,000 4,000
Mr. Rajanayagam Asiriwatham 4,800 4,800
Mr. Gritakumar E Chitty - -
The indirect shareholdings of Directors together with that of their spouses & dependent children are as follows:
As at 31st March 2012 2011
Mr. Merrill J Fernando, Mr. Malik J Fernando, Mr. Dilhan C Fernando

MJF Teas (Private) Limited 13,075,382 13,075,382
MJF Exports (Private) Limited 4,256,712 4,256,712
MJF Sons (Private) Limited 25,300 25,300
Corporate Governance
The Directors are responsible for the formulation and implementation of overall business strategies, policies and setting
standards in the short, medium and long term basis adopting good governance in the management of the affairs of the
Company. A separate report on Corporate Governance Practices adopted by the Company is given on pages 09 to 10 of
the report.
Group Auditors
Ernst & Young, Chartered Accountants, served as the Group Auditors during the year under review and the Auditors’
Report is given on page 24 of the report. The Auditors have confirmed that they have no interest in or relationship with the
Company or it’s Subsidiary other than that of Auditors. They confirm that they are independent in accordance with the
Code of Ethics of the Institute of Chartered Accountants of Sri Lanka.
The Audit Fees payable and fees for other services rendered are noted hereunder:-
Fees payable to Auditors for the current financial year Rs. 670,000/- (2010/11 - Rs. 590,000/-)
Fees payable for other services rendered Rs. 1,176,530/- (2010/11 - Rs. 693,740/-)
Auditors Ernst & Young have expressed their willingness to continue in office. A resolution to reappoint them as Auditors
and to authorize the Directors to fix their remuneration will be proposed at the Annual General Meeting.
Annual General Meeting

The Annual General Meeting will be held at 4.00 p.m. on 18th July 2012 at No.111, Negombo Road, Peliyagoda. The Notice
of the Annual General Meeting appears on page 51.
For and on Behalf of the Board,
Sgd. Sgd. Sgd.

Mr. Himendra S Ranaweera Mr. Malik J Fernando Ms. Minette Perera
Deputy Chairman/CEO Director Director/Secretary
21st June 2012
Statement of Directors’ Responsibilities in Relation to the Preparation of
Financial Statements
The following statement sets out the responsibility of Directors, in relation to the Financial Statements. This should be read
in conjunction with the Auditors responsibility in relation to the Financial Statements, set out in the report of the Auditors
on page 24 of this report.
The Companies Act No. 07 of 2007 requires the Directors to prepare Financial Statements for each year giving a true and
fair view of the state of the affairs of the Company as at end of the financial year and the financial performance for the
year. The Directors are also responsible to ensure that proper accounting books and records are maintained, to prepare the
Financial Statements with reasonable accuracy.
The Board accepts the responsibility for the integrity and objectivity of the Financial Statements and the Directors are
responsible to ensure that in preparing the Financial Statements, appropriate accounting policies have been selected and
applied in a consistent manner and that material departures, if any, have been disclosed and explained.
It is the responsibility of the Directors to ensure that the Financial Statements have been prepared in conformity with Sri
Lanka Accounting Standards and that all assumptions and estimates, which have been used in the preparation of the
Financial Statements, are based on reasonable and prudent judgment taken with due care and consideration. The Directors
are required to prepare these Financial Statements on a going concern basis, unless it is inappropriate to presume that the
Company will continue as a going concern.
The Directors are required to take reasonable steps to safeguard the assets of the Company and to ensure the implementation
of appropriate and sufficient internal controls to prevent financial and other irregularities.
The Directors are of the opinion that the Financial Statements presented in the report from pages 25 to 47 have been
prepared in accordance with the above and that they discharged their duties as set out in this statement.
The Directors confirm that the Auditors of the company, Messrs Ernst & Young were provided every opportunity to
undertake whatever inspections they considered necessary to enable them to form their opinion on the Financial Statements.
The Directors confirm that to the best of their knowledge all taxes, duties and levies payable by the Company and all
contributions, levies and taxes payable on behalf of and in respect of the employees of the Company and all other known
statutory dues as were due and payable by the Company as at the Balance Sheet date have been paid, or where relevant
provided for.
By Order of the Board,

Minette Perera
Secretary
21st June 2012
Independent Auditors’ Report
to the Shareholders of Ceylon Tea Services PLC
Report on the Financial Statements
We have audited the accompanying financial statements of Ceylon Tea Services PLC (“Company”), the consolidated fi-
nancial statements of the Company and its subsidiary, which comprise the balance sheets as at 31 March 2012, and the
income statements, statements of changes in equity and cash flow statements for the year then ended, and a summary of
significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Sri Lanka Accounting Standards. This responsibility includes: designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Scope of Audit and Basis of Opinion
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting policies used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for
the purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, so far as appears from our examination, the Company maintained proper accounting records for the year
ended 31 March 2012 and the financial statements give a true and fair view of the Company’s state of affairs as at 31 March
2012 and its profit and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.
In our opinion, the consolidated financial statements give a true and fair view of the state of affairs as at 31 March 2012 and
the profit and cash flows for the year then ended, in accordance with Sri Lanka Accounting Standards, of the Company
and its subsidiary dealt with thereby, so far as concerns the shareholders of the Company.
Report on Other Legal and Regulatory Requirements
In our opinion, these financial statements also comply with the requirements of Sections 151(2) and 153(2) to 153(7) of the
Companies Act No. 07 of 2007.
Sgd.
Ernst & Young
Chartered Accountants
Colombo
21st June 2012
Balance Sheet
As at 31st March 2012
Group Company
Note 2012 2011 2012 2011
ASSETS Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Non-current Assets
Property, Plant and Equipment 3 1,109,611 888,957 931,674 691,100
Intangible Assets 4 3,925 3,525 3,872 3,212
Investment in Subsidiary 5 - - 148,227 179,901
Other Investments 6 239,665 241,970 239,665 241,970
1,353,201 1,134,452 1,323,438 1,116,183
Current Assets
Inventories 7 905,076 996,386 903,237 993,974
Trade and Other Receivables 8 2,898,771 2,381,070 2,892,693 2,374,857
Amounts Due from Related Party 9 - - - 26,545
Cash and Cash Equivalents 16 2,452,300 2,334,111 2,449,616 2,331,828
6,256,147 5,711,567 6,245,546 5,727,204
Total Assets 7,609,348 6,846,019 7,568,984 6,843,387
EQUITY AND LIABILITIES

Capital and Reserves
Stated Capital 10 200,000 200,000 200,000 200,000
General Reserves 11 1,900,000 1,900,000 1,900,000 1,900,000
Retained Earnings 4,671,630 4,050,990 4,632,540 4,050,241
Total Equity 6,771,630 6,150,990 6,732,540 6,150,241
Non-current Liabilities
Deferred Tax Liabilities 12 8,244 8,217 8,244 8,217
Other Deferred Liabilities 13 75,715 63,583 74,503 62,688
Interest Bearing Loans and Borrowings 14 2,312 6,481 2,312 6,481
86,271 78,281 85,059 77,386
Current Liabilities
Trade and Other Payables 15 574,626 576,134 574,564 575,146
Interest Bearing Loans and Borrowings 14 4,061 3,901 4,061 3,901
Income Tax Liabilities 172,760 36,713 172,760 36,713
751,447 616,748 751,385 615,760
Total Equity and Liabilities 7,609,348 6,846,019 7,568,984 6,843,387
These financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007

Sgd.
Buddhika Dissanayaka
Financial Controller
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.
Himendra S Ranaweera Minette Perera
Deputy Chairman/Chief Executive Officer Director
The accounting policies and notes on pages 29 through 47 form an integral part of these financial statements.

Colombo
21st June 2012
Income Statement
Year Ended 31st March 2012
Group Company
Note 2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Revenue 17 5,839,922 5,789,033 5,835,114 5,783,664
Cost of Sales (3,259,948) (3,428,610) (3,227,041) (3,395,525)
Gross Profit 2,579,974 2,360,423 2,608,073 2,388,139
Other Income and Gains 18 9,946 160,639 8,662 160,639
Administrative Expenses (582,333) (521,591) (647,293) (636,822)
Selling and Distribution Costs (973,894) (849,444) (973,576) (848,873)
Foreign Exchange Gain 767,372 254,015 766,857 254,015
Finance Cost 19.1 (1,482) (1,863) (1,481) (1,860)
Finance Income 19.2 104,092 78,709 104,092 78,707
Profit Before tax 20 1,903,675 1,480,888 1,865,334 1,393,945
Income Tax Expense 21 (233,035) (80,062) (233,035) (80,062)
Profit for the year 1,670,640 1,400,826 1,632,299 1,313,883
Basic Earnings Per Share 22 83.53 70.04
Dividend Per Share 23 40.00 35.00

Statement of Changes in Equity
Group
Note Stated General Retained Total
Capital Reserves Earnings
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
As at 01 April 2010 200,000 1,900,000 3,250,164 5,350,164

Profit for the Year - - 1,400,826 1,400,826
Final Dividend - 2010 23 - - (350,000) (350,000)
Interim Dividend - 2011 23 - - (250,000) (250,000)
As at 01 April 2011 200,000 1,900,000 4,050,990 6,150,990

Final Dividend - 2011 23 - - (450,000) (450,000)
As at 31 March 2012 200,000 1,900,000 4,671,630 6,771,630
Company Note Stated General Retained Total

Capital Reserves Earnings
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
As at 01 April 2010 200,000 1,900,000 3,336,358 5,436,358

Final Dividend - 2010 23 - - (350,000) (350,000)
As at 01 April 2011 200,000 1,900,000 4,050,241 6,150,241

Final Dividend - 2011 23 - - (450,000) (450,000)
As at 31 March 2012 200,000 1,900,000 4,632,540 6,732,540
Cash Flow Statement
Note Group Company

2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Cash Flows From / (Used in) Operating Activities
Profit before Income Tax Expense 1,903,675 1,480,888 1,865,334 1,393,945
Adjustments for
Depreciation and amortisation 147,990 144,411 127,690 124,033
Foreign Exchange Gain (392,239) (96,169) (392,126) (96,241)
Interest Expenses 19.1 1,482 1,863 1,481 1,860
Dividend Income 18 (104) (1,263) (104) (1,263)
Interest Income 19.2 (104,092) (78,709) (104,092) (78,707)
Profit on disposal of Property, Plant and Equipment 18 (5,984) (46,044) (4,702) (46,044)
Profit on disposal of Long Term Investments 18 (3,026) (109,627) (3,026) (109,627)
Provision for Doubtful Debts 20 - - 38,342 -
Provision for fall in value of Investments 20 - - 31,674 120,849
Provision for Defined Benefit Plans 13 15,212 22,830 14,769 22,546
Operating Profit before Working Capital Changes 1,562,914 1,318,180 1,575,240 1,331,351
(Increase)/ Decrease in Inventories 91,310 (224,156) 90,737 (226,831)

Increase in Trade and Other Receivables (234,235) (60,876) (234,379) (61,390)
Increase in Amounts Due from Related Party - - (11,797) (298)
Increase/ (Decrease) in Trade and Other Payables (11,156) 81,762 (10,230) 81,329
Cash Generated from Operations 1,408,833 1,114,910 1,409,571 1,124,161
Defined Benefit Plan Costs Paid 13 (3,079) (1,516) (2,954) (1,516)

Interest Paid (1,482) (1,863) (1,481) (1,860)
Income Tax Paid (93,294) (84,654) (93,294) (84,654)
Net Cash Flows From Operating Activities 1,310,978 1,026,877 1,311,842 1,036,131
Cash Flows From / (Used in) Investing Activities

Acquisition of Property, Plant and Equipment 3 (367,007) (48,192) (366,378) (46,973)
Acquisition of Intangible Assets 4 (3,359) (1,771) (3,359) (1,771)
Acquisition of Other Investments - (264,792) - (264,792)
Proceeds from disposal of Other Investments 5,331 229,874 5,331 229,874
Proceeds from disposal of Property, Plant and Equipment 7,307 49,482 5,515 49,482
Recoveries of Interest Bearing Loans - 50,000 - 50,000
Dividend Received 104 1,263 104 1,263
Interest Received 96,879 72,495 96,878 72,493
Net Cash Flows From Investing Activities (260,745) 88,359 (261,909) 89,576
Cash Flows From/ (Used in) Financing Activities

Dividend Paid 23 (1,050,000) (600,000) (1,050,000) (600,000)
Principal Payment under Finance Lease Liabilities 14.1 (4,009) (3,431) (4,009) (3,431)
Net Cash Flows Used in Financing Activities (1,054,009) (603,431) (1,054,009) (603,431)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 121,965 28,849 121,864 28,922
Net Increase in Cash and Cash Equivalents 118,189 540,654 117,788 551,198
Cash and Cash Equivalents at the beginning of the year 16 2,334,111 1,793,457 2,331,828 1,780,630
Cash and Cash Equivalents at the end of the year 16 2,452,300 2,334,111 2,449,616 2,331,828
Notes to the Financial Statements
1. CORPORATE INFORMATION
1.1 General
Ceylon Tea Services PLC is a public limited liability Company incorporated and domiciled in Sri Lanka and listed
on the Colombo Stock Exchange. The registered office of the Company and the principal place of business is situated
at No. 111, Negombo Road, Peliyagoda.
1.2 Principal Activities and Nature of Operations
Company
The principal activities of the Company are to manufacture, export and market tea bags and packets under the
brand name “Dilmah”.
Subsidiary - MJF Beverages (Pvt) Ltd

The principal activities of the subsidiary Company are to manufacture, export, and market tea in the form of liquid
tea concentrate and ready to drink tea. The subsidiary Company has commenced its commercial operations on 22
July 2008.
1.3 Parent Enterprise and Ultimate Parent Enterprise
The Company’s parent undertaking is MJF Teas (Pvt) Ltd. In the opinion of the Directors, the Company’s ultimate
parent undertaking and controlling party is MJF Holdings Limited, which is incorporated in Sri Lanka.
1.4 Date of Authorization for Issue
The financial statements of Ceylon Tea Services PLC and its Subsidiary for the year ended 31st March 2012 was
authorized for issue in accordance with a resolution of the Board of Directors on 21st June 2012.
2. GENERAL ACCOUNTING POLICIES
2.1 BASIS OF PREPARATION
The consolidated financial statements have been prepared on a historical cost basis and presented in Sri Lankan
Rupees, unless stated otherwise.
2.1.1 Statement of Compliance
The consolidated financial statements of Ceylon Tea Services PLC and its Subsidiary (the ‘Group’) have been
prepared in accordance with Sri Lanka Accounting Standards (SLAS). The preparation and presentation of these
financial statements is in compliance with the Companies Act No. 07 of 2007.
2.1.2 Basis of Consolidation
(a) Subsidiary
The consolidated financial statements of Ceylon Tea Services PLC and its subsidiary are prepared as at
31st March each year. The financial statements of the subsidiary are prepared for the same reporting year as
the parent Company using consistent accounting policies.
All intra-group balances, transactions, income and expenses and profit and losses resulting from intra-group
transactions are eliminated in full.
The subsidiary is consolidated from the date the Parent obtains control until such time as control ceases.
The total profits and losses for the year of the Company and of its subsidiary included in consolidation are
shown in the consolidated income statement.
Notes to the Financial Statements (Contd...)
All assets and liabilities of the Company and of its subsidiary included in the consolidation are shown in the
consolidated balance sheet. The consolidated cash flow statement includes the cash flows of the Company
and its subsidiary.
(b) Country of Incorporation
The subsidiary is incorporated in Sri Lanka.
2.1.3 Comparative Information
The accounting policies have been consistently applied by the Group. Previous year’s figures and phrases have
been re-arranged wherever necessary, to conform to the current year’s presentation.
2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES & ASSUMPTIONS
The preparation of consolidated financial statements, requires management to make judgments, estimates and
assumptions that effect the reported amounts of assets, liabilities, income and expense and the disclosure of
contingent liabilities at the reporting date. The key judgments, estimates and associated assumptions are assessed
on an ongoing basis and are based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
The following key judgments, estimates and assumptions addresses amongst others that require subjective and
complex judgment.
a) Judgment
Inventories
Company reviews the existence and usability of inventories based on a perpetual inventory count. Provisions
are made when Management determines obsolete stock and/or assesses a reduction in recoverable value.
Allowance for Doubtful Debts

Company reviews at each balance sheet date all receivables to assess whether an allowance should be recorded
in the income statement. Management uses judgment in estimating such allowance considering the duration
of outstanding and any other factors management is aware of that indicates uncertainty in recoverability.
b) Estimates
Depreciation of Property, Plant and Equipment

Management assigns useful lives and residual values to property, plant and equipment based on the
intended use of assets and the economic lives of these assets. Subsequent changes in circumstances such as
technological advances or utilization of the assets concerned could result in the actual useful lives or residual
values differing from initial estimates. Management reviews annually the residual values and useful lives of
major items of property, plant and equipment.
c) Assumptions
Defined Benefit Plan

The cost of the retirement benefit plan of employees is determined using an actuarial valuation. The actuarial
valuation is based on assumptions concerning the rate of interest, rate of salary increase, special premium,
retirement age and going concern of the Company. Due to the long term nature of the plan, such estimates are
subject to significant uncertainty.
2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.3.1 Foreign Currency Translations
The consolidated financial statements are presented in Sri Lankan Rupees, which is the Group’s functional and
presentation currency. Transactions in foreign currencies are initially recorded at the functional currency rate ruling
at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the
functional currency rate of exchange ruling at the balance sheet date. All differences are taken to the Income Statement.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was determined. The resulting
gains and losses are accounted for in the income statement.
2.3.2 Taxation
a) Current Taxes
Company
Current income tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the Taxation Authorities. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively enacted by the balance sheet date.
According to Paragraph (c) of sub Section (2) of Section 16 of the Inland Revenue Act No.10 of 2006, the profits
and income from export of “Tea packets or bags each containing made tea wholly of Sri Lanka origin, not
exceeding five hundred grams in weight” was exempted from income tax commencing from April 1, 2009 to
March 31, 2011.
Further, according to the Section 59A of the Inland Revenue (Amendment) Act No. 22 of 2011, commencing
on or after April 1, 2011, profits from export of products having domestic value addition in excess of sixty five
per centum and Sri Lankan brand name with patent rights reserved in Sri Lanka are taxed at a concessionary
rate of 10%.
The provision for income tax is based on the elements of income and expenditure as reported in the financial
statements and computed in accordance with the provisions of the Inland Revenue Act.
Subsidiary
The Subsidiary Company has entered into an agreement registered under the terms of Section 17 (2) of the
Board of Investment Law No. 4 of 1978 with the Board of Investment Sri Lanka, under which the Company’s
profit and income are exempted from Income Tax for a period of 5 years from the year in which the Company
commences to make profits or any year of assessment not later than 2 years reckoned from the date of
commencement of commercial operations or production which ever is earlier.
b) Deferred Taxation
Deferred income tax is provided, using the liability method, on all temporary differences at the balance sheet
date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax
losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.
2.3.3 Intangible Assets
Intangible assets are capitalized at cost only when future economic benefits are probable. Cost includes purchase
price together with any directly attributable expenditure. Intangible asset is amortised on a straight-line basis over
the estimated useful life of 3 years.
2.3.4 Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowances for obsolete and
slow moving items. Net realisable value is the price at which inventories can be sold in the ordinary course of
business less the estimated cost of completion and the estimated cost necessary to make the sale.
The cost incurred in bringing inventories to its present location and conditions are accounted using the following
cost formulae:-
Raw Materials
Purchased Tea Stock At actual cost on first-in first-out basis
Manufactured Tea Stock At actual cost on weighted average basis
Packing Material At actual cost on weighted average basis
Finished Goods and Work-in-Progress At the cost of direct materials, including appropriate production
over heads.
Consumables and Spares At actual cost on weighted average basis
Goods in Transit At actual cost
2.3.5 Trade and Other Receivables
Trade receivables are stated at the amounts they are estimated to realise net of allowances for bad and doubtful
receivables.
Other receivables and dues from Related Parties are recognised at cost less allowance for bad and doubtful
receivables.
2.3.6 Cash and Cash Equivalents
Cash and cash equivalents are defined as cash in hand, demand deposits and short term highly liquid investments,
readily convertible to known amounts of cash and subject to insignificant risk of changes in value.
For the purpose of cash flow statement, cash and cash equivalents consist of cash in hand and deposits in banks
net of outstanding bank overdrafts. Investments with short maturities i.e. three months or less from the date of
acquisition are also treated as cash equivalents.
2.3.7 Property, Plant and Equipment
a) Cost and Valuation
All items of Property, Plant and Equipment are initially recorded at cost. Where items of Property, Plant and
Equipment are subsequently revalued, the entire class of such assets is revalued. Revaluations are made with
sufficient regularity to ensure that their carrying amounts do not differ materially from their fair values at
the balance sheet date. All other Property, Plant and Equipment are stated at historical cost less accumulated
depreciation and less accumulated impairment in value.
b) Restoration Costs
Expenditure incurred on repairs or maintenance of Property, Plant and Equipment in order to restore or
maintain the future economic benefits expected from originally assessed standard of performance, is
recognised as an expense when incurred.
c) Depreciation
The provision for depreciation is calculated by using a straight line method on the cost of all Property, Plant
and Equipment other than leasehold land, in order to write off such amounts over the estimated useful lives
as follows:
Buildings Over 40 years

Plant and Machinery Over 10 years
Furniture and Fittings Over 6.67 years
Office and Stores Equipment Over 5 years
Computer Hardware Over 3 years
Motor Vehicles Over 5 years
d) Derecognition
An item of Property, Plant and Equipment is derecognised upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the Income
Statement in the year the asset is derecognised.
2.3.8 Leases
Finance leases, which transfer to the Company substantially all the risks and benefits incidental to ownership of the
leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the
present value of the minimum lease payments. Lease payments are apportioned between the finance charges and
reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are charged reflected in the income statement.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease
term, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term. The
depreciation policy for depreciable leased assets is consistent with that for depreciable asset that are owned as
described in Note 2.3.7.
2.3.9 Investments
Cost of investment includes purchase cost and acquisition charges such as brokerages, fees, duties and bank
regulatory fees. The Group distinguishes and presents current and non-current investment in the Balance Sheet.
a) Long Term Investments
Quoted investments in equity securities held on a long term basis are stated at lower of cost and market value
determined on a portfolio basis whilst the non-quoted long term investments are stated at cost. Temporary
reductions and reversals of such values of marketable equity securities on a portfolio basis are dealt in Equity.
The cost of the investment is the cost of acquisition inclusive of brokerage fees, duties and bank fees.
The carrying amount of other long term investments is reduced to recognise a decline other than temporary
in the value of investments, determined on an individual investment basis.
b) Other Investments
Treasury bills and other interest bearing securities held for resale in the near future to benefit from short term
market movements are accounted for at cost plus relevant proportion of the discounts or premiums.
2.3.10 Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event, where it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
2.3.11 Retirement Benefit Obligations
a) Defined Benefit Plan - Gratuity
The Group measures the present value of the promised retirement benefits of gratuity, which is a defined
benefit plan with the advice of an Actuary every three years using the Projected Unit Credit Method.
The key assumptions used by the Actuary, include the following:
2012 2011
Discount Rate 10% 10%

Future Salary Increase 10% 10%
Withdrawal Rate 23% 20%
Retirement Age 55 Years 55 Years
The Group will continue as a going concern
The gratuity liability is not externally funded. This item is grouped under “Other Deferred Liabilities” in the
Balance Sheet.
However, as per the payment of Gratuity Act No. 12 of 1983 this liability only arises upon completion of 5
years of continued service.
b) Defined Contribution Plans - Employees’ Provident Fund and Employees’ Trust Fund
Employees are eligible for Employees’ Provident Fund Contributions and Employees’ Trust Fund
Contributions in line with the respective statutes and regulations. The Group contributes 12% and 3% of gross
emoluments of employees to Employees’ Provident Fund and Employees’ Trust Fund respectively.
2.3.12 Impairment of Non-financial Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of
the asset’s recoverable amount. When the carrying amount of an asset exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.
For assets, an assessment is made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group
makes an estimate of recoverable amount. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss
was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That
increased amount cannot “exceed’’ the carrying amount that would have been determined, net of depreciation, had
no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the income statement
unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase.
2.3.13 Income Statement
Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair
value of the consideration received or receivable net of trade discounts, value added taxes, and other sales taxes
and after eliminating intra-group sales. The following specific criteria are used for the purpose of recognition of
revenue.
a) Sale of Goods
Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods
have passed to the buyer, with the Group retaining neither continuing managerial involvement to the degree
usually associated with ownership, nor effective control over the goods sold.
b) Turnover Based Taxes
Turnover based taxes include Value Added Tax, Nation Building Tax and Economic Service Charge. The
Company and its subsidiary pay such taxes in accordance with the respective statutes.
c) Interest
Revenue is recognized on a time proportion basis that takes into accounts the effective interest rate on assets.
d) Dividend
Dividend income is recognised when the shareholders’ right to receive the payment is established (on net
basis).
e) Others
Other income is recognised on an accrual basis.
Gains and losses arising from incidental activities to main revenue generating activities and those arising
from a group of similar transactions which are not material, are aggregated, reported and presented on a net
basis.
2.4 BUSINESS SEGMENT REPORTING
A business segment is distinguishable component of an enterprise that is engaged in providing an individual

product or service or a group of related products or services that is subject to risk and returns that are different from
those of other business segments. The accounting policies adopted for segment reporting are the same accounting
policies adopted for preparing and presenting consolidated financial statements of the Group.
2.5 SRI LANKA ACCOUNTING STANDARDS EFFECTIVE FROM 01 JANUARY 2012
The Company will be adopting the new Sri Lanka Accounting Standards (new SLAS) comprising LKAS and SLFRS
applicable for financial periods commencing from 01 April 2012 as issued by the Institute of Chartered Accountants
of Sri Lanka. The Company has commenced reviewing its accounting policies and financial reporting in readiness
for the transition and is in the process of quantifying the impact on the financial statements.
The Institute of Chartered Accountants of Sri Lanka has resolved an amendment to Sri Lanka Accounting Standard
10, whereby the provision contained in paragraphs 30 and 31 of SLAS 10 - Accounting Policies, Changes in
Accounting Estimates and Errors, would not be applicable for financial statements prepared in respect of financial
periods commencing before 1 January 2012 and hence the impact of this transition is not required to be disclosed in
these financial statements.
3. PROPERTY, PLANT AND EQUIPMENT
3.1 Group
3.1.1 Gross Carrying Amounts Balance as at Additions Disposals Balance as at

01.04.2011 31.03.2012
At Cost Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Freehold Land - 234,064 - 234,064

Buildings on Leasehold Land 67,474 - - 67,474
Plant and Machinery 1,565,805 25,389 - 1,591,194
Furniture and Fittings 5,143 673 - 5,816
Office and Stores Equipment 38,070 1,633 (1,379) 38,324
Computer Hardware 38,419 4,107 (2,179) 40,347
Motor Vehicles 109,186 101,142 (6,921) 203,407
1,824,097 367,008 (10,479) 2,180,626
3.1.2 Assets on Finance Lease
Motor Vehicles 17,665 - - 17,665

17,665 - - 17,665
Total Gross Carrying Amount 1,841,762 367,008 (10,479) 2,198,291

3.1.3 Depreciation Balance as at Charge for Disposals Balance as at
01.04.2011 the year 31.03.2012
At Cost Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Buildings on Leasehold Land 4,121 1,822 - 5,943

Plant and Machinery 816,540 107,476 - 924,016
Motor Vehicles 63,347 26,876 (5,669) 84,554
948,115 142,885 (9,156) 1,081,844
3.1.4
Assets on Finance Lease
Motor Vehicles 4,690 2,146 - 6,836
4,690 2,146 - 6,836
Total Depreciation 952,805 145,031 (9,156) 1,088,680
2012 2011
Rs. ‘000 Rs. ‘000
3.1.5 Net Book Value 1,109,611 888,957
3.1.6 During the financial year, the Group acquired Property, Plant and Equipment to the aggregate value of Rs. 367,007,464/-
(2011 - Rs. 55,126,502/-). Cash payments amounting to Rs. 367,007,464/- (2011 - Rs. 48,191,460/-) were made during the year for
purchase of Property, Plant and Equipment.
3.1.7 Property, Plant and Equipment include fully depreciated assets having a gross carrying amount of Rs. 647,679,107/-
(2011 - Rs. 547,622,362/-).
3.1.8 During the financial year, the Group has not acquired any Motor Vehicles by means of a finance lease. (2011 - Rs. 6,935,040).
3.1.9 The Group has entered into a long term operating lease agreement with Kahawatta Plantations PLC from 1st June 2006 to 14th June
2045 for the use of land situated at Rilhena Estate, Kahawatta. Building on leasehold land as reflected above represent buildings
constructed by the Group on the said leased land.

3. PROPERTY, PLANT AND EQUIPMENT (Contd.)
3.2 Company
3.2.1 Gross Carrying Amounts Balance as at Additions Disposals Balance as at

01.04.2011 31.03.2012
At Cost Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Freehold Land - 234,064 - 234,064

Plant and Machinery 1,398,536 24,802 - 1,423,338
Motor Vehicles 107,986 101,141 (6,321) 202,806
1,581,353 366,379 (9,879) 1,937,853
Motor Vehicles 17,665 - - 17,665

17,665 - - 17,665
Total Gross Carrying Amount 1,599,018 366,379 (9,879) 1,955,518

3.2.3 Depreciation Balance as at Charge for Disposals Balance as at
01.04.2011 the year 31.03.2012
At Cost Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Plant and Machinery 778,985 89,629 - 868,614

Motor Vehicles 63,177 26,757 (5,579) 84,355
903,228 122,846 (9,066) 1,017,008
Motor Vehicles 4,690 2,146 - 6,836
4,690 2,146 - 6,836
Total Depreciation 907,918 124,992 (9,066) 1,023,844
2012 2011
Rs. ‘000 Rs. ‘000
3.2.5 Net Book Value 931,674 691,100

3.2.6 During the financial year, the Company acquired Property, Plant and Equipment to the aggregate value of Rs. 366,378,404/-
(2011 - Rs. 53,907,204/-). Cash payments amounting to Rs. 366,378,404/- (2011 - Rs. 46,972,164/-) were made during the year for
purchase of Property, Plant and Equipment.
3.2.7 Property, Plant and Equipment include fully depreciated assets having a gross carrying amount of Rs. 648,323,677/-
(2011 - Rs. 547,622,362/-).
3.2.8 During the financial year, the Company has not acquired any Motor Vehicles by means of a finance lease. (2011 - Rs. 6,935,040).

4. INTANGIBLE ASSETS Group Company

2012 2011 2012 2011
Computer Software Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
4.1 Cost
As at 1st April 18,972 28,345 18,015 27,388
Acquired during the year 3,359 1,771 3,359 1,771
Write off during the year - (11,144) - (11,144)
As at 31st March 22,331 18,972 21,374 18,015
4.2 Amortisation
As at 1st April 15,447 22,816 14,803 22,525
Amortisation for the year 2,959 3,775 2,699 3,422
Write off during the year - (11,144) - (11,144)
As at 31st March 18,406 15,447 17,502 14,803
4.3 Net book value 3,925 3,525 3,872 3,212
4.4 During the financial year, the Group acquired Intangible Assets to the aggregate value of Rs. 3,359,268/-(2011-
Rs. 1,770,907/-) and Company - Rs. 3,359,268/- (2011 - Rs. 1,770,907/-). Cash payments amounting to Group -
Rs. 3,359,268/-(2011- Rs. 1,770,907/-) and Company - Rs. 3,359,268/-(2011- Rs. 1,770,907/-) were made during the
year for purchase of Intangible Assets.
4.5 Intangible Assets include fully amortised assets having a gross carrying amount of, Group Rs. 15,696,188/-
(2011 - Rs. 10,703,263/-). Company Rs. 14,836,618/- (2011 - Rs. 10,703,263/-)
5. INVESTMENT IN SUBSIDIARY
Holding Holding Carrying Directors’ Carrying Directors’
% % Value Valuation Value Valuation
2012 2011 2012 2012 2011 2011
Non-Quoted Rs. ‘000 Rs.’000 Rs.’000 Rs.’000
MJF Beverages (Pvt) Ltd. 100 100 300,750 148,227 300,750 179,901
Less - Provision for fall in value of Investments (152,523) - (120,849) -
148,227 148,227 179,901 179,901
6. OTHER INVESTMENTS
Group/Company
2012 2011
Summary Rs. ‘000 Rs. ‘000
Non Current
Investments in Equity Securities (Note 6.1) 239,665 241,970
Total Carrying Value of Other Investments 239,665 241,970
6. OTHER INVESTMENTS (Contd.)
6.1 Investments in Equity Securities-Non Current
(a) Quoted No. of Shares Carrying Market Carrying Market

2012 2011 Value Value Value Value
2012 2012 2011 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Renuka City Hotels PLC 17,500 17,500 450 3,831 450 5,822
Maskeliya Plantation PLC 800 800 12 14 12 22
Watawala Plantation PLC 6,000 6,000 9 60 9 150
Hapugastenna Plantation PLC 100 100 1 4 1 7
Kahawatte Plantation PLC 12,571,800 12,707,400 214,102 330,638 216,407 494,318
John Keells Holdings PLC 950 713 91 196 91 204
Total Investments in Quoted Equity Securities 214,665 334,743 216,970 500,523
(b) Non-Quoted No. of Shares Carrying Directors’ Carrying Directors’

2012 2011 Value Valuation Value Valuation
2012 2012 2011 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Rainforest Ecolodge (Pvt) Ltd. 2,500,000 2,500,000 25,000 25,000 25,000 25,000
Total Investments in Non-Quoted Equity Securities 25,000 25,000 25,000 25,000
Total Carrying Value of Other Investments 239,665 241,970
7. INVENTORIES Group Company

2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Raw Materials 583,935 730,523 582,428 728,789

Work-in-progress 58,669 93,072 58,669 93,072
Finished Goods 132,915 90,632 132,583 89,954
Goods in Transit 49,549 20,738 49,549 20,738
Consumables and Spares 80,008 61,421 80,008 61,421
905,076 996,386 903,237 993,974
8. TRADE AND OTHER RECEIVABLES Group Company

2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Trade Debtors 2,566,483 2,055,387 2,566,256 2,053,367

Other Debtors 12,990 20,880 9,276 16,687
Deposits, Advances and Prepayments 319,298 304,803 317,161 304,803
2,898,771 2,381,070 2,892,693 2,374,857
9. AMOUNT DUE FROM RELATED PARTY Group Company

2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

MJF Beverages (Pvt) Ltd. - - 38,342 26,545
Less: Provision for Doubtful Debt - - (38,342) -
- - - 26,545

10. STATED CAPITAL
Group / Company 2012 2011
Number - ‘000 Rs. ‘000 Number - ‘000 Rs. ‘000
Fully Paid Ordinary Shares 20,000 200,000 20,000 200,000

11. RESERVES Group Company
2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Revenue Reserves
General Reserve 1,900,000 1,900,000 1,900,000 1,900,000

12. DEFERRED TAX LIABILITIES Balance Sheet Income Statement
Group/Company 2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Deferred Tax Liability
Capital Allowances for Tax Purposes 15,694 14,485 1,209 (7,164)
Deferred Tax Assets

Defined Benefit Plans (7,450) (6,268) (1,181) (20)
Deferred Income Tax Charge/(Reversal) 28 (7,184)
Net Deferred Tax Liability 8,244 8,217
13. OTHER DEFERRED LIABILITIES Group Company

2012 2011 2012 2011
Retirement Benefits Obligation-Gratuity Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
As at 1st April 63,583 42,270 62,688 41,658

Interest Cost 6,358 5,068 6,269 4,999
Current Service Cost 6,343 5,774 6,108 5,560
Benefits Paid (3,079) (1,516) (2,954) (1,516)
Actuarial (Gain)/ Loss 2,510 11,987 2,392 11,987
As at 31st March 75,715 63,583 74,503 62,688
14. INTEREST BEARING LOANS AND BORROWINGS

Group/Company 2012 2012 2012 2011 2011 2011
Amount Amount Total Amount Amount Total
Repayable Repayable Repayable Repayable
Within 1 Year After 1 Year Within 1 Year After 1 Year
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Finance Leases (Note 14.1) 4,061 2,312 6,373 3,901 6,481 10,382
4,061 2,312 6,373 3,901 6,481 10,382
14.1 Finance Leases

New Leases/
As At Hire Purchases Repayment As At
01.04.2011 Obtained 31.03.2012
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Motor Vehicles
Gross Liability 16,794 - 5,460 11,334
Finance Charges allocated to future periods (6,412) - (1,451) (4,961)
Net liability 10,382 - 4,009 6,373
15. TRADE AND OTHER PAYABLES Group Company

2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Trade Payables 206,029 179,378 206,029 179,378

Sundry Creditors including Accrued Expenses 368,597 396,756 368,535 395,768
574,626 576,134 574,564 575,146

16. CASH AND CASH EQUIVALENTS IN CASH FLOW STATEMENT

Group Company
2012 2011 2012 2011
Components of Cash and Cash Equivalents Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Favourable Cash and Cash Equivalents Balance
Fixed and Call Deposits 1,673,786 1,433,232 1,673,786 1,430,949
Cash and Bank Balances 778,514 900,879 775,830 900,879
Total Cash and Cash Equivalents For the
Purpose of Cash Flow Statement 2,452,300 2,334,111 2,449,616 2,331,828
17. SEGMENT INFORMATION AND REVENUE

Group Company
17.1 Revenue 2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Export Sales 5,839,709 5,788,047 5,835,114 5,783,664
Local Sales 213 986 - -
5,839,922 5,789,033 5,835,114 5,783,664
17.2 Segment Information

17.2.1 Business Segment - Group
Tea Bags Tea Packets Bulk Tea and Other Total

Value Added Tea
2012 2011 2012 2011 2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Revenue 4,960,265 4,915,755 608,339 620,415 271,318 252,863 5,839,922 5,789,033

Cost of Sales (2,600,692) (2,777,331) (423,361) (442,276) (235,895) (209,002) (3,259,948) (3,428,610)
Segment Gross Profit 2,359,573 2,138,424 184,978 178,139 35,423 43,861 2,579,974 2,360,423
17.2.2 Business Segment - Company
Tea Bags Tea Packets Bulk Tea and Other Total

Value Added Tea
2012 2011 2012 2011 2012 2011 2012 2011
Revenue 4,960,265 4,915,755 608,339 620,415 266,510 247,494 5,835,114 5,783,664

Cost of Sales (2,600,692) (2,777,331) (423,361) (442,276) (202,988) (175,917) (3,227,041) (3,395,525)
Segment Gross Profit 2,359,573 2,138,424 184,978 178,139 63,522 71,577 2,608,073 2,388,139
Management considers that there is no suitable basis for allocating assets, related liabilities and operating expenses
to business segments. Accordingly, segment assets, segment liabilities, segment operating expenses and other
segment information by business segment is not disclosed.
18.
OTHER INCOME AND GAINS
Group Company
2012 2011 2012 2011
Rs. 000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Dividend from Equity Securities 104 1,263 104 1,263
Rent Income - Related Parties - 1,609 - 1,609
Profit on Disposal of Property, Plant and Equipment 5,984 46,044 4,702 46,044
Profit on Disposal of Investments 3,026 109,627 3,026 109,627
Other Income 832 2,096 830 2,096
9,946 160,639 8,662 160,639
19. FINANCE COST AND INCOME Group Company

2012 2011 2012 2011
19.1 FINANCE COST Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Interest Expense on Overdraft 31 495 30 492
Finance Lease Charges 1,451 1,368 1,451 1,368
1,482 1,863 1,481 1,860

19.2 FINANCE INCOME

Income from Investments :
- Interest on Deposits and Saving Accounts 104,092 76,781 104,092 76,779
- Interest on Loans to Related Parties - 1,928 - 1,928
104,092 78,709 104,092 78,707

20. PROFIT FROM CONTINUING OPERATIONS Group Company
Stated after Charging 2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Included in Cost of Sales
Employee Benefits including the following 254,778 228,995 245,120 219,094
- Defined Benefit Plan Costs -Gratuity 6,599 10,922 6,189 10,638
- Defined Contribution Plan Costs - EPF and ETF 20,120 18,749 19,052 17,657
Depreciation 109,386 119,374 91,538 101,540
Product Development Expenses 1,346 2,714 1,322 2,712
Included in Administrative Expenses

Employee Benefits including the following 165,952 144,624 165,951 144,624
- Defined Benefit Plan Costs -Gratuity 8,310 22,546 8,310 22,546
- Defined Contribution Plan Costs - EPF and ETF 10,872 9,675 10,872 9,675
Depreciation 35,645 21,260 33,453 19,071
Amortisation of Intangible Assets 2,959 3,775 2,699 3,422
Donations - Approved Charities 160,100 135,050 160,100 135,050

- Other Donations 850 182 842 182
Provision for Fall in Value of Investments - - 31,674 120,849
Provision for Doubtful Debts - - 38,342 -
Included in Selling and Distribution Costs

Export Promotion 812,927 666,636 812,927 666,636
21. INCOME TAX EXPENSE Group Company

2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. 000
Current Income Tax
Current Tax Expense on Ordinary Activities for the
Year (Note 21.1) 235,182 87,155 235,182 87,155
(Over)/ Under Provision of current taxes in respect of
prior years (2,175) 91 (2,175) 91
Deferred Income Tax

Deferred Taxation Charge/(Reversal) (Note 21.2) 28 (7,184) 28 (7,184)
233,035 80,062 233,035 80,062
21.1 Reconciliation between Current Tax Expense and the product of Accounting Profit.

Group Company
2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Accounting Profit (Profit before Tax) 1,903,675 1,480,888 1,865,334 1,393,945
Aggregate Disallowed Items 516,800 484,947 516,667 483,087
Aggregate Allowable Expenses (149,091) (105,981) (110,617) (103,649)
Aggregate Allowable Income (111,924) (159,951) (111,924) (156,935)
Qualifying Payments (500) (500) (500) (500)
Exempted Profit - (1,291,996) - (1,208,541)
Taxable Profit 2,158,960 407,407 2,158,960 407,407
Statutory Tax Rate 10% (2011 - 15%) 2,051,816 288,061 2,051,816 288,061
Statutory Tax Rate 28% (2011 - 35%) 107,144 119,346 107,144 119,346
2,158,960 407,407 2,158,960 407,407
Income Tax 235,182 84,980 235,182 84,980

Social Responsibility Levy (2011 - 1.5%) - 2,175 - 2,175
Current Income Tax Expense 235,182 87,155 235,182 87,155
Estimated Current Tax Expense for the Year 235,182 87,155 235,182 87,155
21.2 Deferred Tax Income

Group Company
2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Deferred Tax Expense/(Income) arising due to
- Origination and reversal of Timing Differences 28 (7,184) 28 (7,184)
22. EARNINGS PER SHARE

22.1 Basic Earnings Per Share is calculated by dividing the profit for the year attributable to ordinary shareholders by
the weighted average number of ordinary shares outstanding during the year.

22.2 The following reflects the income and share data used in the basic Earnings Per Share computation.
Amount Used as the Numerator:
2012 2011
Rs. ‘000 Rs. ‘000
Profit for the Year 1,670,640 1,400,826

Number of Ordinary Shares Used as the Denominator: 2012 2011
Number ‘000 Number ‘000
Weighted Average number of Ordinary Shares in issue 20,000 20,000
23. DIVIDEND PER SHARE 2012 2011

Dividend Dividend
Declared and paid during the year Per Share Per Share
Equity Dividend on Ordinary Shares: Rs. Rs. ‘000 Rs. Rs. ‘000

Final Dividend - 2011 22.50 450,000 17.50 350,000
Interim Dividend - 2012 30.00 600,000 12.50 250,000
1,050,000 600,000

Proposed for approval at AGM (not recognised as a liability as at the Balance Sheet date)
Equity Dividend on Ordinary Shares:
Final Dividend - 2012 10.00 200,000 22.50 450,000

24. COMMITMENTS AND CONTINGENCIES
24.1 Commitments

24.1.1 Capital Expenditure Commitments
The Company has purchase commitments for acquisition of Property, Plant and Equipment incidental to the
ordinary course of business as follows,
2012 2011
Rs. ‘000 Rs. ‘000

Contracted but not provided for 167,654 230,644
24.1.2 Operational Commitments
There are no Operational Commitments as at the balance sheet date

24.2 Contingencies
2012 2011
Rs. ‘000 Rs. ‘000

Letters of Guarantee 75,487 94,239
25. ASSETS PLEDGED

There are no Assets Pledged as at the Balance Sheet date.
26. 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.
27. RELATED PARTY DISCLOSURES
Details of significant related party disclosures are as follows:

27.1 Group
27.1.1 Transactions with the parent and related entities

Parent Other* Total
MJF Teas (Pvt) Ltd
2012 2011 2012 2011 2012 2011
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000

Export Sales - - 2,812,898 2,851,601 2,812,898 2,851,601
Local Sales - - 213 986 213 986
Transfer of Tea and Packing Material 1,053,108 1,224,431 204,848 217,387 1,257,956 1,441,818
Purchase of Packing Material - - (698,656) (845,835) (698,656) (845,835)
Rent Paid - - (43,674) (42,300) (43,674) (42,300)
Rent Received - - - 1,609 - 1,609
Transport Charges Paid - - (18,271) (20,935) (18,271) (20,935)
Loan Recoveries - - - 50,000 - 50,000
Donations Paid - - (160,000) (135,000) (160,000) (135,000)

2012 2011
Company Name Receivable/ Receivable/
(Payable) (Payable)
Rs. ‘000 Rs. ‘000

Dilmah Australia (Pty) Limited 1,759,471 1,490,424
Forbes & Walkers (Pvt) Ltd. (177) (11)
PCL Solutions (Pvt) Ltd. - (24)
Packages Lanka (Pvt) Ltd. (4,637) (4,974)
Print Care PLC (10,098) (9,982)
Timber Concepts (Pvt) Ltd. (3,314) (1,688)
Printcare Universal PLC (22,007) (21,716)
1,719,238 1,452,029
27.1.2 Transactions with Key Management Personnel of the entity or parent

The Group/Company considers the members of its Board of Directors are the key management personnel

Key Management Personnel Compensation
2012 2011
Rs. ‘000 Rs. ‘000

Short-term employee benefits 79,695 75,300
79,695 75,300
27. RELATED PARTY DISCLOSURES (Contd.)
Details of significant related party disclosures are as follows:

27.2 Company
27.2.1 Transactions with the parent and related entities

Parent Fellow Subsidiary Other* Total
MJF Teas (Pvt) Ltd MJF Beverages (Pvt) Ltd.
2012 2011 2012 2011 2012 2011 2012 2011

Export Sales - - - - 2,812,898 2,851,078 2,812,898 2,851,078
Transfer of Tea and
Packing Material 1,053,108 1,224,431 - - 204,848 217,387 1,257,956 1,441,818
Purchase of Packing
Material - - - - (698,656) (845,835) (698,656) (845,835)
Purchase of Tea - - (3,397) (5,708) - - (3,397) (5,708)
Rent Paid - - - - (41,969) (40,680) (41,969) (40,680)
Rent Received - - - - - 1,609 - 1,609
Transport Charges Paid - - - - (18,179) (20,804) (18,179) (20,804)
Loan Recoveries - - - - - 50,000 - 50,000
Donation Paid - - - - (160,000) (135,000) (160,000) (135,000)
Reimbursement of
Expenses Incurred - - 471 298 - - 471 298
*Transactions carried out with other companies under common control of the Ultimate Parent Enterprise.
Amounts due from Related Party is disclosed under Note 9, whilst the following amounts have been disclosed
under Trade Receivables and Payables respectively in the Balance Sheet.

2012 2011
Company Name Receivable/ Receivable/
(Payable) (Payable)
Rs. ‘000 Rs. ‘000

Dilmah Australia (Pty) Limited 1,759,471 1,490,424
Forbes & Walkers (Pvt) Ltd. (177) (11)
PCL Solutions (Pvt) Ltd. - (24)
Packages Lanka (Pvt) Ltd. (4,637) (4,974)
Print Care PLC (10,098) (9,982)
Timber Concepts (Pvt) Ltd. (3,314) (1,688)
Printcare Universal PLC (22,007) (21,716)
1,719,238 1,452,029

27.2.2 Transactions with Key Management Personnel of the entity or parent

The Group/Company considers the members of its Board of Directors are the key management personnel.

Key Management Personnel Compensation
2012 2011
Rs. ‘000 Rs. ‘000

Short-term employee benefits 79,695 75,300
79,695 75,300
Five Year Summary - Company
For The Year Ended 31st March
2012 2011 2010 2009 2008
TRADING RESULTS (Rs. ‘000)

Turnover 5,835,114 5,783,664 4,940,755 4,428,780 4,354,890
Operating Expenses 4,847,910 4,881,220 4,337,025 3,960,052 3,600,396
Other Income 879,611 493,361 734,229 103,413 383,996
Interest Expense 1,481 1,860 1,867 2,444 2,455
Profit before Income Tax 1,865,334 1,393,945 1,336,092 569,697 1,136,034
Income Tax on Profits 233,035 80,062 78,639 49,930 52,322
Profit after Income Tax 1,632,299 1,313,883 1,257,453 519,767 1,083,712
SHAREHOLDERS’ FUNDS (Rs. ‘000)

Stated Capital 200,000 200,000 200,000 200,000 200,000
Reserves 6,532,540 5,950,241 5,236,358 3,966,335 4,499,137
NET ASSETS 6,732,540 6,150,241 5,436,358 4,166,335 4,699,137
ASSETS (Rs. ‘000)

Property , Plant & Equipment 931,674 691,100 761,240 483,632 282,202
Intangible Assets 3,872 3,212 4,863 8,227 8,022
Investments 387,892 421,871 398,175 531,487 855,223
Current Assets 6,245,546 5,727,204 4,868,259 3,686,411 3,943,386
LIABILITIES (Rs. ‘000)

Non-current Liabilities 85,059 77,386 61,627 49,914 40,843
Current Liabilities 751,385 615,760 534,552 493,508 348,854
NET ASSETS (Rs.000) 6,732,540 6,150,241 5,436,358 4,166,335 4,699,137
Market Price Per Share (Rs.) 650.00 800.00 480.00 270.00 305.00
Dividend Per Share (Rs.) 40.00 35.00 30.00 25.00 22.50
Total Dividend Rs. 000s (Gross) 800,000 700,000 600,000 500,000 450,000
No of Shares 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000
RATIOS
Return on Average Shareholders Funds (%) 25.34 22.68 26.19 11.73 25.10
Earnings Per Share (Rs) 81.61 65.69 62.87 25.99 54.19
Interest Cover (times) 1,260.16 750.43 717.02 234.10 463.74
Dividend Cover (times) 2.04 1.88 2.10 1.04 2.41
Liquidity (times) 8.31 9.30 9.11 7.47 11.30
Information to Investors
1. STOCK EXCHANGE LISTING

The issued ordinary shares of Ceylon Tea Services PLC are listed on the Colombo Stock Exchange.

2. ORDINARY SHAREHOLDERS
Number of Shares Number of Total %

Shareholders Holding Holding
1 - 1,000 607 66,588 0.33%
1,001 - 5,000 58 158,921 0.79%
5,001 - 10,000 25 182,107 0.91%
10,001 - 50,000 23 558,476 2.79%
50,001 - 100,000 1 68,700 0.34%
100,001 - 500,000 1 156,020 0.78%
500,001 - 1,000,000 - - 0.00%
1,000,001 - Over 3 18,809,188 94.05%

Total 718 20,000,000 100.00%

3. ANALYSIS OF SHAREHOLDERS
Number of Shares Number of Total %

Shareholders Holding Holding
Individuals 661 2,428,596 12.14%
Institutions 57 17,571,404 87.86%
Total 718 20,000,000 100.00%
2,523,669 (12.62%) shares were held by the public as at 31st March 2012.

4. SHARE TRADING
2012 2011 2010 2009 2008

No of Transactions 120 74 211 106 134
No of Shares Traded 42,541 1,466,000 73,900 36,300 2,195,400
Value of Shares Traded 25,637,120 956,821,140 26,780,550 10,863,400 711,586,925
5. DIVIDENDS
2012 2011 2010 2009 2008

Interim - per share Rs. 30/00 Rs. 12/50 Rs. 12/50 Rs. 25/00 Rs. 8/00
Final - per share Rs. 10/00 Rs. 22/50 Rs. 17/50 Nil Rs.14/50
Amount (Rs.000’s) Gross 800,000 700,000 600,000 500,000 450,000
6. EARNINGS (restated on current number of shares)
2012 2011 2010 2009 2008

Earnings/share Rs. 83.53 70.04 60.77 24.36 53.74
P/E Ratio 7.78 11.42 7.90 11.09 5.67
Information to Investors (Contd...)
7. MARKET VALUES (Rs.)
2012 2011 2010 2009 2008

Highest 750.00 1,000.00 550.00 350.00 325.00
Lowest 530.00 650.00 300.00 255.00 201.00
Year End 650.00 800.00 480.00 270.00 305.00
The weighted average trading price for the year was Rs. 652.67
8. MARKET CAPITALIZATION (Rs. Million)
2012 2011 2010 2009 2008

Capital & Reserves 6,767 6,150 5,350 4,122 4,688
Market Capitalization 13,000 16,000 9,600 5,400 6,100

9 TOP 20 SHAREHOLDINGS AS AT 31ST MARCH 2012

31.03.12 31.03.11

Shareholder Name Total % Total %
Shares Shares
M.J.F. Teas (Pvt) Ltd 13,075,382 65.38% 13,075,382 65.38%

M.J.F. Exports (Pvt) Ltd 4,256,712 21.28% 4,256,712 21.28%
Dr.T.Senthilverl 1,477,094 7.39% 1,449,900 7.25%
Mrs. S.T. Fernando 156,020 0.78% 156,020 0.78%
The Gilpin Fund Limited 68,700 0.34% 68,700 0.34%
Mr.H.A.Van Starrex 47,000 0.24% 50,800 0.25%
Mrs. S. Wanniarachchi 0.00% 43,884 0.22%
Mr.M.P.Wanniarachchi 43,842 0.22% 0.00%
Mrs.S.T.F.Ortiz 42,854 0.21% 42,284 0.21%
Mr. A.W. Atukorala 36,600 0.18% 36,600 0.18%
Lunuganga Trust 0.00% 35,703 0.18%
Mr. M.W. De Silva 34,830 0.17% 34,830 0.17%
Mr. J.W. Burton 29,570 0.15% 29,570 0.15%
Merrill J Fernando & Sons (Pvt) Ltd 25,300 0.13% 25,300 0.13%
Mrs. A.S. Fernando 24,284 0.12% 24,284 0.12%
Mr. D.C. Fernando 24,200 0.12% 24,200 0.12%
Mr. M.J. Fernando 24,200 0.12% 24,200 0.12%
Dr. K. Poologasundram 23,808 0.12% 23,808 0.12%
Mr. H.R. Peries 21,200 0.11% 21,200 0.11%
Mr.H.S.Ranaweera 20,084 0.10% 20,084 0.10%
Amalgamated Graphite Ltd 20,000 0.10% 20,000 0.10%
Bartleet Finance Limited/Hans Anton Van Starrex 19,000 0.10% 30,500 0.15%
Estate of Late D.P.M.Fernando 19,000 0.10% 19,000 0.10%
19,489,680 97.45% 19,512,961 97.56%
Notice of Meeting
Notice is hereby given that the 31st Annual General Meeting of Ceylon Tea Services PLC will be held at 111, Negombo
Road, Peliyagoda on 18th July 2012 at 4.00 p.m. for the following purposes:
1. To receive and adopt the Report of the Directors and statement of accounts for the year ended 31st March 2012 along
with the Report of the Auditors thereon.
2. To declare a Final Dividend as recommended by Directors.
3. To pass the ordinary resolution set out below to re-elect Mr. Merrill J Fernando who is 82 years of age, as a Director
of the Company.
“IT IS HEREBY RESOLVED that Mr. Merrill J Fernando who is 82 years of age be and is hereby re-elected a Director
of the Company and it is hereby declared as provided for in section 211 of the Companies Act. No.7 of 2007 that the
age limit of 70 years referred to in section 210 of the said Companies Act shall not apply to Mr. Merrill J Fernando”
4. To pass the ordinary resolution set out below to re-elect Mr. Gritakumar E. Chitty who is 73 years of age, as a
Director of the Company.
“IT IS HEREBY RESOLVED that Mr. Gritakumar E. Chitty who is 73 years of age be and is hereby re-elected a
Director of the Company and it is hereby declared as provided for in section 211 of the Companies Act. No.7 of 2007
that the age limit of 70 years referred to in section 210 of the said Companies Act shall not apply to Mr. Gritakumar
E. Chitty”
5. To re-elect as a Director, Ms. Minette D. A. Perera who retires by rotation under section 24 of the Articles of
Association.
6. To authorize the Directors to make donations.
7. To re-appoint Ernst & Young, Chartered Accountants, as Auditors of the Company and to authorize the Directors
to determine their remuneration.
8. Any other business of which due notice has been given.
By order of the Board,

Minette Perera
Secretary.
Colombo
21st June 2012
Note:
A member is entitled to appoint a proxy to attend and vote instead of himself, for which purpose a form of Proxy is
enclosed with this Annual Report. The instrument appointing a proxy must be registered at the Registered Office not later
than 48 hours before the time fixed for the Meeting.
Notes
Form of Proxy
Ceylon Tea Services PLC
Registered Office: 111, Negombo Road, Peliyagoda, Sri Lanka
I/We .........................................................................................................................................................................................................
of ...............................................................................................................................................................................................................
......................................................................................................................................................................................................................

being member/s of CEYLON TEA SERVICES PLC hereby appoint:
..................................................................................................................................................................................................................of
.....................................................................................................................................................................................or failing him/her
Mr. Merrill Joseph Fernando of Colombo or failing him
Mr. Malik Joseph Fernando of Colombo or failing him
Mr. Dilhan Chrishantha Fernando of Colombo or failing him
Mr. Himendra Somasiri Ranaweera of Colombo or failing him
Ms. Minette Delicia Anne Perera of Colombo or failing her
Mr. Roshan Conrad Tissaaratchy of Colombo or failing him
Mr. Rajanayagam Nalliah Asirwatham of Colombo or failing him
Mr. Gritakumar Edmund Chitty
As my / our Proxy to attend and vote for me / us on my / our behalf at the Thirty First Annual General Meeting of the
Company to be held on 18th July 2012 at 4.00 p.m. and any adjournment thereof and at every poll which may be taken in
consequence of the aforesaid meeting.
As Witness my hand / our hands this ...........................................................day of ..................................................... 2012
Signature: ...................................................
N.B. 1. Please delete the inappropriate words.

2. Instructions as to completion are noted on the reverse hereof.
3. A Proxy need not be a member of the Company.
Instructions as to Completion
1. Kindly perfect the Proxy by filling legibly your full name and address and by signing in the space provided and
filling in the date of signature.
2. In the case of corporate members, the proxy form must be under the seal or hand of an authorized officer or
attorney.
3. If the proxy form is signed by an attorney, the relevant Power of Attorney should accompany the proxy form for
registration, if such Power of Attorney has not already been registered with the Company.
4. The completed proxy form should be deposited at the registered office of the Company at the address given below
not less than 48 hours before the time appointed for the Meeting.
CEYLON TEA SERVICES PLC

111, Negombo Road
Peliyagoda

11-12 Dilmah

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Contents

Report of the Audit Committee 11

Report of the Remuneration Committee 11

MJF Charitable Foundation / Dilmah Conservation 12

Report of the Directors 20

Statement of Directors’ Responsibilities 23

Independent Auditors Report 24

Statement of Changes in Equity 27

Cash Flow Statement 28

Notes to the Financial Statements 29

Five Year Summary 48

Shareholders’ Funds 6,771,630 6,150,990 10.1%

Per Ordinary Share

Earnings (Rs.) 83.53 70.04 19.3%

Return on Average Shareholder Funds (%) 25.86 24.36 6.1%

TURNOVER & PROFITABILITY

DILMAH- INNOVATIVE MARKETING

OVERVIEW OF MJF FOUNDATION & DILMAH CONSERVATION ACTIVITIES

Mr. Merrill J. Fernando

Mr. Himendra S. Ranaweera

Mr. Malik J. Fernando

Mr. Dilhan C. Fernando

Ms. Minette Perera

Mr. Roshan Tissaaratchy

Mr. Rajan Asirwatham

Mr. Gritakumar E. Chitty

The Board of Directors

Composition of the Board

Responsibilities of the Board

Executive Management Team

Systems and Internal Controls

Relationship with Shareholders

Report of the Remuneration Committee

MJF Kids Programme

Community Health Programmes

Changing Lives – Small Entrepreneur Programme (SEP)

The Plantations Programme

Special education for students

MJF Scholarship scheme

Somerset Health Centre

Supporting the differently abled

Performing arts training for the differently abled

MJF Foundation Centre, Moratuwa

MJF Kids Programme, Moratuwa

Rainbow Centre for special needs children

Curtiss Graphics Design Centre

Bioremediation with Dilmah Tea Gardens

Biodiversity Assessments at Dilmah Tea Gardens

Terrestrial Habitat & Species Conservation

Butterfly Garden at Moratuwa

Marine Habitat & Species Conservation

Environmental Education & Awareness

Reconciliation through the Power of Nature Initiative

Rebuilding the Jaffna Field Work Centre

Culture & Indigenous Communities Programme

Principal activities of the Group

Review of the year