Annual Report FY 2023-2024

CORPORATE Information

The Board of Directors

Mr. Vijay Shah - Chairman

Mr. Sanjay Jain - Executive Director & COO

Mr. Sanjay Tiwari

Dr. C.T.S.B Perera (Up to 25.04.2024)

Mr. R.M.S. Fernando (Up to 25.04.2024)

Mr. Mayura Fernando (From 25.04.2024)

Mrs. Aruni Goonetilleke (From 25.04.2024)

Nominations and Governance Commitee (From 25.04.2024)

Mrs. Aruni Goonetilleke (Chairperson)

Mr. Mayura Fernando

Mr. Vijay Shah

Senior Management Team

Mr. Sanjay Jain - Executive Director & COO

Mr. Arun Khedwal - Genaral Manager and Head of Operations Mr. Palitha Piyanandana - Head of Supply Chain

Mrs. Niloni Boteju - Financial Controller

Mr. Thushara Deshapriya - Head of Domestic Marketing Mr. Damitha Dasanayake - Head of Export Marketing

Mr. Naveen Atapattu - Head of Engineering Services (Up to 30.04.2024) Mr. A.K.M.Fowzin - Head of Human Resources

Company Registration Number

PQ 190

Registered Office

148, Maligawa Road, Borupana, Ratmalana Telephone: +94 112 635 481-83/ +94 117 800 200 Fax:+94 112 635 484

E-mail: pgp.info@pgpfirst.com

Web: www.pgpglassceylon.com

Factories

Wagawatte Road, Poruwadanda, Horana.

Telephone: +94 344 938 965-67/ +94 347 800 200

Fax:+94 342 258 120

Madampe Road,Pahala Walahapitiya,Nattandiya

Telephone: +94 327 800 200 - 4

Fax:+94 322 255 193

Auditors

Statutory

Messrs. KPMG

Chartered Accountants

32 A, Sir Mohamed Macan Markar Mawatha,

Colombo 03.

Internal

Messrs. Ernst & Young Consulting Services (Pvt) Ltd

Rotunda Towers,

No. 109, Galle Road,

Colombo 03.

Bankers

Citi Bank, N.A

Commercial Bank of Ceylon PLC

People's Bank

Standard Chartered Bank

State Bank of India

Hatton National Bank PLC

Company Secretary and Senior Manager Legal

Mrs. Sagarika Weeraparackrama (Attorney-at-Law)

148, Maligawa Road, Borupana, Ratmalana

Telephone: +94 117 800 200 Ext: 604

Registrars

Messrs. P W Corporate Secretarial (Pvt) Ltd (Up to 09th January 2024)

No. 3/17, Kynsey Road, Colombo 08 Telephone: +94 114 897 711/ +94 114 640 360-3 Fax: +94 114 740 588

Messrs. Central Depository Systems (Pvt) Limited

(From 10th January 2024)

Ground Floor, M & M Center, 341/5, Kotte Road,

Rajagiriya.

Telephone: +94 112356444, +94 112356456

Fax:+94 112440396

Investor Relations

Mrs. Niloni Boteju - Financial Controller 148, Maligawa Road, Borupana, Ratmalana Telephone: +94 117 800 200 Ext: 615

Legal Advisors

Messrs. FJ&G de Saram

216, De Saram Place, Colombo 10 Telephone: +94 114 718 200

Dear Shareholders,

On behalf of the Board of Directors, I extend a warm welcome to the 69th Annual General Meeting of PGP Glass Ceylon PLC (PGP) and share with you the achievements and progress we have made during the past year and the prospects for this year.

We have witnessed the continuation of the extraordinary turbulence in the Sri Lanka political and socio - economic landscape. The country faced credit rating downgrades resulting in a severe forex liquidity crisis, acute shortages were seen in fuel, medicine, cooking & industrial gas. Imports were restricted impacting manufacturing and economic activity adversely; the inflation reached an unprecedented level.

It looks like the current year has brought some economic stability, with availability of raw materials and energy remaining steady and moderate inflation. The appreciation of the currency is also a positive sign, indicating potential improvements in macroeconomic indicators.

However, post IMF engagement, the country had to implement reforms that had severe social implications and austerity measures impacting the common man.

Inthiscase,thehikeinexcisedutiesonspiritsandtheincrease in VAT rates have impacted consumer purchasing power, particularly for common citizens. Implementation of SSCL

PGP Glass Ceylon PLC

CHAIRMAN'S Statement

coupled with steep hike in Payee Tax, led to a drop in demand for all food & beverage products, resulting in production rationalization during the year for your company. Amidst the challenging operating environment, your company has managed to report a profit after tax (PAT) of LKR 2.93 Bn in F24 as against LKR 3.18 Bn in F23. However, the revenue saw a decline of 11% from LKR 20 Bn in F23 to LKR 17.82 Bn in F24. The major impact was from the domestic revenue which declined by 15% from LKR 14.01 Bn in F23 to LKR 11.94 Bn in F24 whilst the exports remained almost constant at LKR 5.87 Bn as against LKR 6.05 Bn in F23.

Despite the continuous challenges our Company ensured that our products were available to all our customers in the market without any compromise on product quality levels and customer service.

The Board of Directors have recommended a final dividend of 155% (LKR 1.55 per share) for the approval of the shareholders.

LOOKING AHEAD

The current scenario is uncertain as we see a severe drop in Domestic consumption in Alco-Bev segments.

As we face a slump in Domestic demand, our highest priority continues to maintain & grow the export markets mainly the premium markets like United States, Canada, Australia & India to improve the foreign exchange earnings both for the company as well as for the country which is the need of the hour. We have been addressing new markets and new product launches in premium specialty segments to improve our profitability.

We are working very closely with our customers, vendors

• Government authorities to ensure continuation of our operations, while taking care of our valuable and dedicated employees in this inflationary environment. We have continued with ex-gratia support this year as well to allow our employees to alleviate from the impact of the unprecedented inflationary cost suffering.

We have introduced digitalization solutions and hybrid work culture wherever possible to ensure unhampered working environment and customer service. We continue to make

PGP Glass Ceylon PLC

CHAIRMAN'S Statement

every effort to provide our customers with innovative and efficient solutions by offering new designs and value-added decorations.

We are committed to ensure uninterrupted supply of glass bottles to all customers and we believe that the country situation would gradually get back to normalcy. We will have to find unique ways to produce at higher efficiencies and lowest possible costs to remain competitive and sustainable in this unpredictable environment.

As they say - nothing lasts forever, this too shall pass. We are confident that we will get through with resilience and emerge stronger both as a Company and as a Country.

We wish to welcome our new directors - Mr. Mayura Fernando & Ms. Aruni Goonetilleke to the PGP Ceylon Board.

Mr. Mayura Fernando is a Fellow Member of The Institute of Chartered Accountants of Sri Lanka and a Fellow Member of the Chartered Institute of Management Accountants of the UK. He holds a Bachelor of Science (Applied Science) Degree from the University of Sri Jayewardenepura.

Mrs. Goonetilleke has a Master of Laws from Harvard Law School, Harvard University, USA and a Bachelor of Laws (Honors) from the Faculty of Law, University of Colombo. She is a founding member of the Association of Banking Risk Professionals of Sri Lanka and was a visiting lecturer in law at the Faculty of Law and the Department of Graduate Studies, University of Colombo.

APPRECIATION

We wish to place on record our sincere appreciation and gratitude to Dr. Bandula Pereira & Mr. Ranjith Fernando for their long-term association with the Board of PGP Glass and guiding the company with their valuable inputs and advice.

Dr. Perera joined the Company as its Managing Director in 1995 and continued serving as a Director even after the ownership change to Piramal Glass & PGP Glass. He has been associated with the organization for 29 long years.

Mr. Ranjith Fernando a specialist in the Banking, Finance & legal field, joined our Board in the year 2007 and has been a board member for the past 16 years. He has added much value & insight to the Audit & Risk committee.

Despite the many negative's shocks experienced, the inherent strength of our people, together with the professionalism and experience gained over the years has helped the company to remain resilient and face the challenges with optimism and positive attitude.

The performance of our company, during this eventful year, could not be achieved without the untiring efforts, dedication, and commitment of all our employees more so in these trying times. I take this opportunity to express my gratitude to them and their families for supporting these efforts. I also thank our valued customers for their unflinching patronage and support.

I also wish to convey my gratitude to the Board of Directors, for their valuable contribution and guidance during the past year. I also appreciate the leadership & management team for their valuable contribution during the financial year. I would fail in my duty if I do not thank our shareholders, for the confidence reposed in us. I also wish to thank PGP Glass Corporate Team from India for the help and cooperation always extended in managerial and operational aspects to the operations in Sri Lanka.

I take this opportunity to thank the various departments of the Government of Sri Lanka, Board of Investment, Ceylon Petroleum Corporation, Ceylon Electricity Board, Laugfs & Litro Gas, other institutions, all vendors, and clients that extended assistance to PGP Glass Ceylon. I thank you for your continued faith in us over the past years. We look forward to your support in the coming years too.

I would like to reiterate that our Company's path to excellence is deep rooted, which drives us towards creating long term value for all our stakeholders.

Thank you.

Warm regards,

Vijay Shah

Chairman - PGP Glass Ceylon PLC

25th April 2024

All figures in Rs. Mn

PRODUCTION HIGHLIGHTS

EXPORT TURNOVER

All figures in Rs. Mn

PACKEDGLASSTONNAGE

All figures in Tonnes

All figures in Rs. Mn