Annual Report 2024-2025

Millennium Housing Developers PLC

A n n u a l R e p o r t 2 0 2 4 / 2 0 2 5

Contents

About this Report » 6

About Us » 7

Financial Highlights » 8 Chairman's Message » 9 Executive Director's Message » 11 Board of Directors » 17

Senior Management » 22

Corporate Governance » 23

Composition of Board of Directors 2024/2025 » 44

Annual Report of the Board of Directors on the Affairs of the Company » 46 Director's Statement on Internal Control Financial Reporting » 50 Statement of Directors' Responsibilities » 53

Audit Committee Report » 54 Remuneration Committee Report 57 Nomination Committee Report » 58

Related Party Transactions Review Committee » 59

Risk Management » 63

Responsibility Statement of Executive Director and Finance Manager » 67

Financial Calendar 2024/25 » 73

Proposed Financial Calendar - 2025/26 » 73

Independent Auditor's Report » 74

Statement of Profit or Loss and Other Comprehensive Income » 77

Statement of Financial Position » 78 Statement of Changes in Equity » 80 Statement of Cash Flows » 81

Notes to the Financial Statements » 82 Shareholders & Investors Information » 132 Ten Year Summary » 134

Notice of Meeting » 136

Notes » 137

Form of Proxy » 139

Corporate Information Inner Back Cover

At Millennium Housing, we believe that a home should offer more than shelter; it should uplift. Every project we undertake is rooted in this belief, combining intelligent design, thoughtful planning, and enduring value to create spaces that inspire better living.

As we look ahead, we continue to redefine standards and unlock new possibilities in housing. Because when people live better, communities grow stronger and, that is the essence of elevated living.

In a year defined by resilience and reimagination, we remained committed to enhancing the everyday experience of our homeowners. From optimised layouts and community infrastructure to sustainable materials and lifestyle-focused amenities, we raised the bar on what it means to own a home. Our developments are designed not only to house people but to empower them, offering dignity, comfort, and a sense of belonging.

Millennium Housing Developers PLC

Annual Report 24/25 2

Thoughtfully crafted spaces that blend function with form - where every detail enhances daily life.

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Millennium Housing Developers PLC

Annual Report 24/25

About this Report 6

About Us 7

Financial Highlights 8

Chairman's Message 9

Executive Director's Message 11

Millennium Housing Developers PLC has taken urban and township development to unprecedented heights. Since 1999, the Company has been revolutionizing mega township projects by identifying and catering to the progressive lifestyles of prospective clients around the island. The Company stands out proudly as the only private property developer that is listed on the Colombo Stock Exchange.

The Company has a diverse portfolio which includes land, housing, apartments and villas in diverse settings. Paradis, Olympus, Tulip and Orchid are a few of the residential

housing designs that are secure, eco-friendly and modern. They are value-engineered and strategically located to cater to target markets. The additions to the portfolio are the Heights residencies projects located at Edmonton Colombo 5, Nawala and the upcoming project at Rajagiriya Green Heights.

The Company a subsidiary member of the prestigious Nawaloka Holdings consistently meets impeccable standards of raw materials, and construction. The company is constantly striving and engaged in many community service responsibilities in rural Sri Lanka and continues to transform lifestyles and cityscapes around the country by taking pride in its loyal customer base that's built on years of relationship excellence.

About this Report

We are pleased to present the Annual Report

for the financial year 2024/25, which provides a comprehensive account of our Company's operational and financial performance, strategy, and key achievements. Millennium Housing Developers PLC, established in 1999, is a Sri Lankan Company operating within the housing and property development industry. Over the years, the Company has delivered mega township projects, catering to the evolving lifestyle requirements of prospective clients across the Country. Its diverse portfolio includes land, housing, apartments, and villas across multiple urban and semi-urban areas.

SCOPE AND BOUNDARY

This report presents a descriptive narrative of the Company's performance from April 1, 2024, to March

31, 2025, highlighting both financial and nonfinancial aspects. These

include business objectives, strategic direction, risk and governance and, future plans, offering an all-encompassing view of the Company's operations.

This report outlines the activities and outcomes related to Millennium Housing Developers PLC and its wholly 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). These initiatives and projects are collectively referred to as the Millennium Group, and therefore, this report echoes the efforts implemented by the parent company in collaboration with its subsidiaries.

COMPLIANCE AND GOVERNANCE

Our financial statements are diligently prepared in accordance with the Sri Lanka Financial Reporting Standards and the provisions of the Companies Act No. 7 of 2007. We remain firmly committed to upholding the highest standards of corporate governance, guided by the Code of Best Practice for Corporate Governance issued by the Institute of Chartered Accountants of Sri Lanka, as well as the corporate governance requirements outlined in the Listing Rules of the Colombo Stock Exchange.

The Millennium Group also ensures adherence to all applicable laws and standards, complemented by voluntary disclosures aimed at fostering greater transparency and accountability.

CONTACT FOR ENQUIRIES

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

About Us

OUR VISION CORPORATE

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.

OBJECTIVES

Provide quality houses to our customers

Maximise customer satisfaction

Enhance shareholder value

Maintain dynamic, satisfied, and motivated staffs, who

are directed towards our mission

Satisfy our obligation towards society at large

Contribute to the development of the country

CORE VALUES

Honour and integrity

Entrepreneurship

Professionalism

Teamwork

Passion and pride

Sense of purpose

Financial Highlights

Chairman's Message

Our unwavering focus remains on maximizing shareholder value. During the year, our efforts were centered on deleveraging the balance sheet, optimizing operational costs, and investing in high-potential projects.

Millennium Housing Developers PLC - Annual Report 2024/25 "Rebuilding Strength, Restoring Confidence"

INTRODUCTION

It is with great pride and optimism that I present to you the Annual Report of Millennium Housing Developers PLC (MHDPLC) for the financial year ended 31 March 2025. On behalf of the Board of Directors, I extend our sincere appreciation for your continued confidence, commitment, and support during a year that marks a remarkable turnaround for our Company. Despite a challenging macroeconomic environment, I am pleased to report

that MHDPLC has demonstrated significant recovery, driven by strategic focus, financial discipline, and operational resilience.

Chairman's Message

FINANCIAL PERFORMANCE AND RECOVERY

The 2024/25 financial year has been a pivotal period in the Company's trajectory. Following a difficult prior year, our consolidated revenue and profitability showed a marked improvement, supported by robust land sales, disciplined cost management,

and completion of key transactions including the successful divestment of the Moragahahena and

Nawala-Koswatta properties. Our efforts to restructure debt and improve cash

flows bore fruit, with most legacy liabilities settled and key projects such as River View regaining momentum. While macroeconomic pressures such as high interest rates and reduced purchasing power persisted, our late-year performance and forward bookings laid

a strong foundation for a more resilient and profitable future.

NAVIGATING ECONOMIC UNCERTAINTY

The Sri Lankan real estate sector continues to face volatility, driven by inflationary pressures,

shifting policy environments, and constrained investor sentiment. However, MHDPLC's agile response- anchored in pragmatic planning and adaptive marketing-has helped

mitigate these risks. Our strategic decision to focus on fast-moving land development projects,

complemented by selective vertical development, has allowed us to stabilize cash flows and build financial resilience. By realigning our business model to current market realities while positioning for future demand, we have emerged stronger and more agile.

PROJECT PIPELINE AND STRATEGIC VISION

Looking ahead, we are confident in the Company's prospects. Our major projects-including

the ongoing River View development and the relaunch of the Rajagiriya apartment complex-are expected to contribute significantly to revenue in the coming years.

Additionally, we are in the advanced stages of

launching a high-rise mixed-use development in Nawala, further strengthening

our urban footprint. The Company also aims to expand land development activities in the Gampaha and Colombo districts, capitalizing on the growing demand for affordable, well-planned housing solutions.

This diversified approach to project development ensures a balanced risk profile while opening new revenue channels.

ENHANCING SHAREHOLDER VALUE

Our unwavering focus remains on maximizing shareholder value. During the year, our efforts were centered on deleveraging the balance sheet, optimizing operational costs, and investing in

high-potential projects. With improved cash flow visibility, cleared debt obligations, and a clear strategic direction, we are better positioned to return value to shareholders-both in terms of capital appreciation and long-term sustainability. The Board remains committed

to strong governance and value creation through innovation, efficiency, and responsible growth.

GOVERNANCE AND RISK MANAGEMENT

We continue to uphold the highest standards of

corporate governance, risk oversight, and compliance. In a dynamic and often uncertain operating environment, these foundations are vital. Our Board has ensured that robust risk management practices are embedded across all levels of the organization, while fostering a culture of accountability and transparency. These principles guide our actions and reinforce our credibility among stakeholders.

COMMITMENT TO STAKEHOLDERS

To our valued employees, I convey my deepest gratitude for your hard work, adaptability, and loyalty. Your contributions have been instrumental

in our recovery journey. To our shareholders, your trust fuels our vision. And

to our customers, thank you for continuing to choose Millennium as your trusted real estate partner. We are committed to exceeding your expectations by delivering quality, on time, and with integrity.

CONCLUSION

The year under review has been one of rebuilding and re-emergence. The progress we have made is not only

financial, but also strategic- refining our core operations and regaining market confidence. With renewed momentum, a growing project pipeline, and a clear path ahead, Millennium Housing Developers PLC is well-positioned to deliver value and purpose as we build a more secure and sustainable future.

Mr. U. H. DHARMADASA

Chairman Millennium Housing Developers PLC

Executive Director's Message

Looking ahead, our business model is being recalibrated

to reduce reliance on high-leverage projects and focus more on low-risk, highdem

and land developments. This strategic shift will strengthen our operational sustainability while aligning us with changing consumer behavior

and urban expansion patterns in Sri Lanka.

A YEAR OF STABILISATION AND FORWARD MOMENTUM

The financial year 2024/25 marked a significant turning point for Millennium Housing Developers PLC. After enduring several challenging years shaped by macroeconomic pressures and internal constraints, the Company and the Group have demonstrated renewed strength and strategic focus. While the operating environment remained uncertain, our recovery has been shaped by decisive actions, strong governance, and a realigned strategy centered around sustainable growth and prudent financial management.

FINANCIAL PERFORMANCE AND IMPROVED PROFITABILITY

The Group's financial performance during the year reflects the early fruits of our restructuring efforts. Revenues improved significantly, and both the Company and Group returned to profitability after a period of losses. While this progress is encouraging, we

Executive Director's Message

also acknowledge that operating cash flows remained negative, largely due to the absence of major ongoing revenue-generating projects and elevated finance costs. Nevertheless, the profitability achieved this year confirms the fundamental viability of

our business model and supports the going concern assumption under which our financial statements have been prepared.

STRENGTHENING LIQUIDITY THROUGH ASSET DIVESTMENT

To address short-term liquidity constraints and reduce debt exposure, we strategically divested non-core assets. In April 2024, we completed

the sale of our Nawala-Koswatta property for Rs. 105 million, with proceeds applied toward settling debt obligations with Nations Trust Bank and providing working capital for the River View project in Katunayake.

This project has entered its second phase with positive market demand and has benefited from a successful restructuring of

its associated credit facility, including a Rs. 100 million bullet repayment made shortly after the year-end.

Another significant milestone was achieved with the full settlement of Millennium Housing Limited's facility with

Sampath Bank in February 2025. This was enabled through the Rs. 440 million sale of our Moragahahena property. The transaction also allowed us to clear substantial intercompany and external liabilities, thereby improving our Group-wide liquidity and financial flexibility.

UNSETTLED DEBT AND ONGOING RECOVERY EFFORTS

As of the end of the financial year, the loan facility obtained by MC Urban Development Limited from Sampath Bank remained unsettled. A public

auction held in December 2023 did not result in a successful sale. However, we are actively engaged in negotiations with several interested parties and are optimistic that the sale will be concluded in the coming months. Proceeds from this transaction will be used to fully settle the remaining liability and support new land development initiatives.

EMERGING PROJECTS AND GROWTH OPPORTUNITIES

We are now entering a new phase in our development journey, one that places equal emphasis on land development and selective high-return vertical projects. Notably, we are set to launch our Nawala apartment project in August 2025 in collaboration with

a related party under a structured development agreement. This project offers a competitive marketing edge and is expected to generate significant returns.

Additionally, we have earmarked funds from recent asset sales to initiate a series of land development projects in urban areas across Colombo and Gampaha. These projects are aligned with evolving customer preferences and are designed to deliver consistent returns with lower capital risk. Our

land development focus also supports our broader objective of building scalable, market-relevant communities that meet both housing demand and lifestyle aspirations.

STRATEGIC OUTLOOK AND BUSINESS CONTINUITY

Looking ahead, our business model is being recalibrated to reduce reliance on high-leverage projects and focus more on low-risk, high-demand land developments. This strategic shift will strengthen our operational sustainability while aligning us with changing consumer behavior and urban expansion patterns in Sri Lanka. Our future project pipeline is backed by a healthy land bank, active lender support, and a deep understanding of evolving market conditions.

In line with this strategic outlook, the Board has conducted a detailed going concern assessment based on current financials,

cash flow projections, funding access, and the macroeconomic climate. We are confident that the Company and Group

possess adequate resources to continue operations without material curtailment in the foreseeable future.

ORGANIZATIONAL RESILIENCE AND OPERATIONAL CONTROLS

Our transformation has been underpinned by robust internal reforms. We have

overhauled our Standard Operating Procedures

to promote operational efficiency and strategic alignment. Our workforce continues to be one of our strongest assets, and

their professionalism, skill, and commitment are at the heart of our continued progress. With renewed emphasis on performance culture, transparency, and internal collaboration,

we are building an agile organization equipped for long-term competitiveness.

APPRECIATION AND COMMITMENT TO STAKEHOLDERS

We express our deep appreciation to the Chairman and Board of Directors for their strategic guidance and leadership throughout the year. To our valued shareholders, your unwavering trust

has been instrumental in our recovery journey. We also thank our financiers, suppliers, contractors, and government regulators for their ongoing cooperation and confidence in our direction. Above all, we remain grateful to our customers, whose loyalty inspires us to continually raise our standards.

As we move forward, Millennium Housing Developers PLC is committed to delivering on its promise of developing quality housing communities while creating sustainable value for all stakeholders.

Our focus remains clear: building tomorrow's communities with responsibility, resilience, and innovation.

Mr. K. C. C. Perera Executive Director's Message Millennium Housing Developers PLC

Millennium Housing Developers PLC

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Integrated neighbourhoods with access, connectivity and shared amenities that support modern living.

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Millennium Housing Developers PLC

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Board of Directors 17

Senior Management 22

Corporate Governance 23

Composition of Board of Directors 44

Annual Report of the Board of Directors on the Affairs of the Company 46

Director's Statement On Internal Control Financial Reporting 50

Statement of Directors' Responsibilities 53

Audit Committee Report 54

Remuneration Committee Report 57

Nomination Committee Report 58

Related Party Transactions Review Committee 59

Risk Management 63

Responsibility Statement of Executive Director and Finance Manager 67

Board of Directors

MR. U. HARSHITH DHARMADASA

Chairman/Non-Executive Director

MR. GIHAN DE ZOYSA

Non-Executive Independent Director -till 31.12.2024

Non-Executive Non independent -

w.e.f - 01.01.2025 (DOR - 01.08.2025)

Mr. MELWIN PERERA

Non-Executive Independent Director

MR. K. C. CHANDANA PERERA

Executive Director

MR. JAYAPRAKASH RUDRA

Non-Executive Non-Independent Director

Mr. SAM SAMARASINGHE

Non-Executive Independent Director (DOR - 01.07.2024)

MR. U. H. PALIHAKKARA

Non-Executive Independent Director-till 31.12.2024

Non-Executive Non independent-

w.e.f - 01.01.2025 (DOR - 18.02.2025)

MR. SAMAN SRI LAL

Non-Executive Independent Director (DOR - 02.06.2025)

Board of Directors

MR. U H DHARMADASA

Chairman/Non-Executive Director

Mr Harshith Dharmadasa has been the Chairman of the Company since 2011. He has over 26 years of experience in Executive Management. He is an Associate Member of the Institute of Certified Professional Managers. He also served as a Director at the Export Development Board of Sri Lanka and

Sathosa Retail Ltd. during 2003/04. He has acquired experience in the fields of trading, manufacturing, and the construction sector. He is the Managing Director of Ceyoka (Pvt) Ltd., Nawaloka Trading (Pvt) Ltd., Nawaloka Agri (Pvt) Ltd., Ceyoka Engineering (Pvt) Ltd., Nawaloka MEP Concepts (Pvt) Ltd.,

Koala (Pvt) Ltd., East West Marketing (Pvt) Ltd., Nawaloka Steel Industries (Pvt) Ltd., Ceylon Nutrinut Holding (Pvt) Ltd., and Nawaloka Construction Company (Pvt) Ltd. Mr H Dharmadasa is also a Director of Nawaloka College of Higher Studies (Pvt) Ltd., Nawaloka Guardian International (Pvt) Ltd., Nawaloka Medicare (Pvt) Ltd., and JDC Printing Technologies (Pvt) Ltd.

MR. K C C PERERA

Executive Director

Mr Chandana Perera has been a Director of the Company since 2015. He has over 34 years of Senior Management experience. Mr Perera started his career at John Keells Holdings in 1985. During his tenure at John Keells Holdings, he held the positions of Manager Walkers Tours, Director Mack International Freight, and Country Manager of DHL Worldwide Express. Mr Perera also held the positions of Country Manager for Aramex International in Vietnam and as the Regional General Manager for Aramex overseeing the North India region covering over nine states. Mr Perera also, held the position of Country Manager - Hayleys Advantis, freight operations in India from 2008-2011. Mr Chandana Perera holds an MBA from the University of Western Sydney and currently serves as the Director/General Manager for

Ceyoka (Pvt) Ltd., Nawaloka Trading (Pvt) Ltd., Ceyoka Health (Pvt) Ltd., Ceyoka Engineering (Pvt) Ltd., Nawaloka Agri (Pvt) Ltd., Nawaloka MEP Concepts (Pvt) Ltd., Ceyoka Exports (Pvt) Ltd., Koala (Pvt) Ltd. Mr Perera is also a Director of Millennium Housing Developers PLC and Tea & Herb Co (Pvt) Ltd.

MR. U H PALIHAKKARA

Non-Executive Independent Director

Mr Uditha Harilal Palihakkara, a leading accounting and finance personality holding membership in many recognised professional institutions - Accounting, Banking, Corporate Secretarial

and Economics, has been the President of the three leading accountancy professional bodies in Sri Lanka: The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), CIMA

Sri Lanka and ACCA Sri Lanka. In 2010, he was elected President of the Organisation of Professionals Association of Sri Lanka (OPA) a multidisciplinary professional's institution comprising 52 member associations. He has held leadership positions in several Public and Private Sector establishments including the Ceylon Electricity Board, Development Finance Corporation, People's Merchant Bank, Merchant Bank of Sri Lanka, Acland Insurance Services Ltd., Securities Council

of Sri Lanka, National Enterprise Development Authority, Postgraduate Institute of Management etc., and served as a Financial Management Specialist in the Commonwealth Secretariat (CFTC). After a successful career in investment banking, he expanded his outreach by engaging in many projects and programmes of the World Bank, Asian

Development Bank, African Development Bank, International Fund for Agricultural Development, European Development Bank, International Labour Organization etc. In 2015,

The President of Sri Lanka, on the recommendation of the Constitutional Council appointed him as the Chairman of the Finance Commission of Sri Lanka. In appreciation of dedicated services, he was inducted into the Hall of Fame of CA Sri Lanka, in 2014. In 2016, OPA presented him with the National Apex Award in recognition of his outstanding contribution to the profession and the nation. In June 2017 he was conferred the "People Leader - Finance 2017", by the Institute of Personnel Management (IPM), in recognition of his contribution in promoting sound and vibrant people management practices

in the world of work. In September 2017, he was honoured with a Recognition Award for his outstanding leadership and contribution and service to CIMA Sri Lanka. A Director of a few companies, Mr Palihakkara is a Trustee of the Organisation of Professionals Association of Sri Lanka and, the President of the Sri Lanka China Business Cooperation Council.