Building Tomorrow
Today
Millennium Housing Developers PLC
Annual Report 2023/24
Contents
COMPANY OVERVIEW
About this Report / 2
About Us / 3
Operating Environment / 4
Financial Highlights / 5
Chairman's Message / 6
Executive Director's Message / 10
GOVERNANCE AND ACCOUNTABILITY | |||||
Board of Directors | / 14 | ||||
Senior Management / 20 | |||||
Corporate Governance / 21 | |||||
Composition of Board of Directors / 39 | |||||
Annual Report of the Board of Directors on the Affairs of the Company | / 41 | ||||
Director's Statement On Internal Control Financial Reporting | / 44 | ||||
Statement of Directors' Responsibilities | / 46 | ||||
Audit Committee Report / 47 | |||||
Remuneration Committee Report / 49 | |||||
Nomination Committee Report | / 50 | ||||
Related Party Transactions Review Committe / 51 | |||||
Risk Management | / 53 | ||||
Responsibility Statement of Executive Director and Finance Manager | / 55 | ||||
FINANCIAL REPORTS | |||||
Financial Calendar - 2023/24 | / 58 | ||||
Proposed Financial Calendar - 2024/25 | / 58 | ||||
Independent Auditor's Report | / 59 | ||||
Statement of Profit or Loss and Other Comprehensive Income | / 63 | ||||
Statement of Financial Position | / 64 | ||||
Statement of Changes In Equity | / 66 | ||||
Statement of Cash Flows / 67 | |||||
Notes to the Financial Statements / 68 | |||||
ANNEXES | |||||
Shareholders & Investors Infromation / 120 | |||||
Ten Year Summary | / 122 | ||||
Notice of Meeting | / 124 | ||||
Notes / 125 |
Form of Proxy / 127
Corporate Information / Inner Back Cover
Building Tomorrow
Today
As we reflect on the past year, we are proud of the strides we have made in transforming visions into reality. Our commitment to innovation and sustainability has driven us to create communities that not only meet the needs of today but are also poised to thrive in the future. By embracing the latest advancements in construction and design, we will enhance the quality and efficiency of our projects, providing superior living and working environments.
Looking ahead, our focus remains on delivering exceptional value to our stakeholders. We understand that the success of our projects depends on the trust and support of our investors, partners, and the communities we serve. To this end, we are committed to growth that is fueled by transparency and accountability. Together, we are building a brighter, more sustainable tomorrow, today.
02 | Company | 21 | Governance and | ||
Overview | Accountability | ||||
ABOUT THIS REPORT
57
Annual Financial Statements
119
Annexes
MILLENNIUM HOUSING
DEVELOPERS PLC
We are delighted to present the Annual Report for the fiscal year 2023/24, offering a detailed account of our company's operations, achievements, and strategic direction. Millennium Housing Developers PLC, based in Sri Lanka, is a leading entity in the housing and property development industry, boasting a diverse portfolio of land, housing, apartments, and villas across multiple urban and semi-urban areas.
OVERVIEW OF REPORTING CONTENT, SCOPE, AND BOUNDARY This report provides a thorough analysis of our performance
from 1st April 2023 to 31st March 2024, highlighting both financial and non-financial aspects. It encompasses various dimensions, including corporate governance, risk management, and future strategic plans, ensuring a holistic view of our operations.
The activities and outcomes detailed in this report pertain to Millennium Housing Developers PLC and its fully owned subsidiaries: Millennium Housing Limited (MHL), Millennium Villa Housing Development Limited (MVHDL), Millennium Housing Construction Limited (MHCL), MC Urban Developers Limited (MCUDL), and MC Universal Limited (MCUL). Collectively referred to as the Millennium Group, this document reflects the initiatives and projects executed by our parent company in collaboration with its subsidiaries.
COMPLIANCE AND GOVERNANCE
Our financial statements are meticulously prepared in alignment with the Sri Lanka Financial Reporting Standards and the stipulations of the Companies Act No.7 of 2007. We are committed to upholding the highest standards of corporate governance, as outlined in the Code of Best Practice for Corporate Governance issued by The Institute of Chartered Accountants of Sri Lanka and the corporate governance rules set forth in the Listing Rules of the Colombo Stock Exchange.
Moreover, the Millennium Group remains dedicated to complying with all pertinent regulations and standards, while also embracing voluntary disclosures to promote transparency and accountability.
CONTACT FOR INQUIRIES
For any questions or clarifications concerning this Annual Report, please reach out to our Finance Manager.
Millennium Housing Developers PLC
No. 66/9B, Green Path,
Colombo 7
Millennium Housing Developers PLC
2 | Annual Report 2023/24 |
02
Company Overview
21
Governance and Accountability
57
Annual Financial Statements
119
Annexes
ABOUT US
Our Vision
To create a landmark in the industry by crafting innovative, unique, eco-friendly, and residential neighborhood solutions in vertical and horizontal living
Our Mission
To provide housing solutions to middle class, upper middle, and elite class customer segments while preserving individuality and presenting a wider choice of standard housing to luxury apartments together with all facilities in flexible terms by the leader in mega-township developments, a competent, proactive and diligent organization which is financially viable.
Corporate Objectives | Core Values |
Provide quality houses to our customers | Honour and integrity |
Maximise customer satisfaction | Entrepreneurship |
Enhance shareholder value | Professionalism |
Maintain dynamic, satisfied, and | Teamwork |
motivated staffs, who are directed | Passion and pride |
towards our mission | Sense of purpose |
Satisfy our obligation towards society at | |
large | |
Contribute to the development of the | |
country |
Millennium Housing Developers PLC
Annual Report 2023/24 | 3 |
02
Company Overview
21
Governance and Accountability
57
Annual Financial Statements
119
Annexes
OPERATING ENVIRONMENT
Camellia 1
Camellia 2
Camellia 3
Millennium Housing Developers PLC
4 | Annual Report 2023/24 |
02
Company Overview
21
Governance and Accountability
57
Annual Financial Statements
119
Annexes
FINANCIAL HIGHLIGHTS
2024 | 2023 | Change | ||
% | ||||
Earning Highlights and Ratios | ||||
Revenue | LKR '000 | 115,200 | 674,719 | (82.93) |
Gross Profit | LKR '000 | 33,846 | 180,500 | (81.25) |
Results from operating activities | LKR '000 | (51,201) | (25,925) | 97.50 |
Profit / (loss) before Tax | LKR '000 | (185,686) | (180,611) | 2.81 |
Profit / (loss) after Tax | LKR '000 | (186,889) | (199,185) | (6.17) |
Gross profit margin | % | 29.38 | 26.75 | 9.83 |
Operating profit / (loss) margin | % | (44.45) | (4.00) | 1,056.73 |
Net profit / (loss) margin | % | (162) | (30) | (447.31) |
Earning/ (loss) per share | LKR | (1.39) | (1.49) | (6.08) |
Interest |
Interest Cover
Financial Position Highlights & Ratios
No of Times | (0.38) | (0.17) | 126 |
Equity attributable to owners
Total assets
Total borrowings
Debt to equity
Gearing
Current asset
Current liability
Inventory
Current asset ratio
Quick asset ratio
Net asset per share
Share in issue
Market /Share Holders Information
Market value per share as at 31st March
Market capitalisation as at 31st March
Price earnins/(loss) ratio
LKR '000 LKR '000 LKR '000
%
%
LKR '000 LKR '000 LKR '000 No of Times No of Times
LKR
No. Mn
LKR LKR '000 No of Times
646,957 | 834,299 | (22.46) |
1,982,339 | 2,074,456 | (4.44) |
654,737 | 689,477 | (5.04) |
101.20 | 82.64 | 22.46 |
50.30 | 47.89 | 5.03 |
1,762,164 | 1,847,367 | (4.61) |
1,242,569 | 1,035,377 | 20.01 |
1,647,017 | 1,664,614 | (1.06) |
- 1.78(20.33)
- 0.18 (47.50)
- 6.19 (22.46)
- 134.68 -
- 3.10 (3.23)
404,044 | 417,512 | (3.23) |
(2.21) | (2.08) | 3.27 |
Millennium Housing Developers PLC
Annual Report 2023/24
02 | Company | 21 | Governance and | ||
Overview | Accountability | ||||
CHAIRMAN'S MESSAGE
57
Annual Financial Statements
119
Annexes
Millennium Housing Developers PLC
6 | Annual Report 2023/24 |
02
Company Overview
21
Governance and Accountability
57
Annual Financial Statements
119
Annexes
We are delighted to present the Annual Report of Millennium Housing Developers PLC (MHDPLC) for the financial year ending 31 March 2024. On behalf of the Board of Directors, we extend our heartfelt gratitude for your steadfast support and trust in our company.
This year's theme, "Building Tomorrow, Today," encapsulates our dedication to creating a sustainable and prosperous future, despite the numerous challenges we have faced.
FINANCIAL ASPECT
The fiscal year 2023/2024 has presented MHDPLC with an array of unprecedented challenges, stemming from political instability, fluctuating economic conditions, and elevated interest rates. These external factors, compounded by the imposition of new taxes on real estate, have significantly impacted our financial performance. However, amidst these adversities, MHDPLC has demonstrated remarkable resilience and prudence in navigating these turbulent times through the optimization of our resources and operations.
Our anticipated revenues and profits fell short due to the aforementioned adverse conditions. Nonetheless, we achieved substantial sales towards the end of the fiscal year.
It is important to note that these sales will influence the financial outcomes of the subsequent fiscal year due to the criteria for revenue recognition. Despite the obstacles encountered, we have remained unwavering in our commitment to preserving shareholder value and
Millennium Housing Developers PLC
We are focused on leveraging emerging opportunities and mitigating risks to maximize shareholder value.
safeguarding the interests of our stakeholders. This has been achieved through the implementation of effective strategies and prudent management of our resources.
As we reflect on the past fiscal year, it is evident that our ability to adapt and respond to these challenges has fortified our position. Moving forward, MHDPLC is well-prepared to leverage the lessons learned and continue to thrive in a complex and evolving business environment.
ECONOMIC OUTLOOK
The economic downturn and elevated interest rates have presented substantial challenges, discouraging potential investors from entering the real estate market. In spite of these formidable obstacles, MHDPLC has strategically adapted to the evolving economic landscape with commendable foresight. Our proactive measures have enabled us to mitigate losses and optimize resource utilization effectively, ensuring that we maintain operational efficiency and financial stability.
To counteract the adverse influences generated by the macro-environment, MHDPLC implemented diversified marketing strategies designed to navigate these challenges successfully. These strategies were meticulously crafted to address the shifting market conditions and to appeal to a broader range of potential clients and investors. Through these efforts, we achieved lucrative results in the fourth quarter, demonstrating the efficacy of our adaptive approaches.
Our ability to anticipate and respond to market fluctuations has been instrumental in sustaining our business operations and safeguarding our stakeholders' interests. The resilience and adaptability demonstrated by MHDPLC underscores our commitment to maintaining a strong market
Annual Report 2023/24 | 7 |
02 | Company | 21 | Governance and | ||
Overview | Accountability | ||||
CHAIRMAN'S MESSAGE
57
Annual Financial Statements
119
Annexes
presence, even in the face of economic adversities. As we move forward, we remain dedicated to refining our strategies and leveraging our strengths to ensure continued success in an unpredictable economic climate.
INCEPTION TO GROW
Looking forward, we are resolutely committed to steering MHDPLC towards renewed growth and enhanced profitability. Our vision for the future encompasses the successful completion of the "River View" project, which promises to be a landmark development. Additionally, we are poised to commence a new apartment complex in Rajagiriya, where the foundations have already been laid, signifying the beginning of a significant and ambitious venture.
Moreover, we have strategically planned new land development projects, which are anticipated to generate increased revenue within a short period. These initiatives are part of our broader strategy to diversify our portfolio and capitalize on emerging opportunities in the real estate market.
A primary objective of the company is to reduce current financial liabilities, thereby enhancing shareholder value. By focusing on debt reduction, we aim to strengthen our financial position and provide greater returns to our shareholders. This objective underscores our commitment to prudent financial management and long-term sustainability.
We are confident that our strategic initiatives, coupled with our inherent
adaptability and unwavering commitment to excellence, will pave the way for a brighter and more prosperous future. Our proactive approach, innovative mindset, and dedication to our stakeholders will ensure that MHDPLC continues to thrive and achieve its ambitious goals in the years to come.
UPLIFT SHAREHOLDER VALUE We are focused on leveraging emerging opportunities and mitigating risks to maximize shareholder value. Our strategic approach encompasses both vertical and horizontal development, related diversification, and meticulous planning. By remaining attuned
to evolving market trends, we aim to deliver innovative, unique, and affordable residential housing solutions that consistently exceed our clients' expectations.
The initiation of new land development projects is a key component of our strategy. These projects are designed to bolster our current financial position by generating substantial revenue in the short term with relatively low investment requirements. This approach not only supports immediate financial stability but also lays the foundation for sustained growth and profitability.
Despite the uncertainties in the macroeconomic environment, we remain steadfast in our commitment to delivering value to all our stakeholders. Our employees, who are the cornerstone of our success, possess solid competencies, extensive experience, and strong
technological know-how. We continue to invest in their growth and well- being, ensuring their safety through stringent procedures and fostering a culture of accountability.
By prioritizing our employees' development and well-being, we create a motivated and skilled workforce capable of driving our strategic initiatives forward. Our commitment to their professional growth and safety not only enhances our operational effectiveness but also contributes to a positive and productive organizational culture.
OPTIMISTIC FACTORS
To our valued clients, we pledge to uphold our esteemed reputation for on- time delivery, quality, and affordability. Despite external challenges, we have successfully completed 99% of our projects on schedule, demonstrating our unwavering commitment to customer satisfaction. Through meticulous procurement planning and the absorption of cost inflation, we have shielded our clients from rising prices, thereby enhancing their trust and loyalty.
By fulfilling our promises and delivering the intended and agreed- upon products to our clients without compromising on quality, even during unpredictable economic conditions, we have retained and expanded
our customer base. This steadfast dedication to quality and reliability has solidified our position as a trusted partner in the real estate market.
Beyond our immediate stakeholders, we remain deeply committed to the communities in which we operate.
Millennium Housing Developers PLC
8 | Annual Report 2023/24 |
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |