ANNUAL REPORT
2023/2024
Surfing
A ROUGH SEA!
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SURFING A ROUGH SEA!
The day-to-day lives of Sri Lankans were put under unprecedented pressure over 2023. Reeling under asset devaluation during the 2022 socioeconomic debacle, the people saw the increase in everything from utility bills to corporate and personal incomes taxes as "beating up on a man when he is down". Those brutal measures had a reasonable economic foundation for restructuring the fiscal structure and recovering the economy. However, when hard-earned money that had become significantly less powerful evaporated even as it was acquired, the people of the country had no choice but to restructure themselves to survive the suddenly unmanageably bare micro-economy of their families.
It is not to be wondered that almost all citizens had to implement their own austerity measures to keep themselves afloat, cutting down on everything they had gotten used to purchasing - even a vital commodity such as salt.
Under circumstances such as these, when people put their wallets in their pockets and hardly ever took them out, many companies found themselves in a position where they were unable to move their stock, unable to service their debts, unable to see validation of business processes. Most were floundering, rudderless and directionless in some of the roughest socioeconomic seas ever experienced by the business community.
Your company, managed with sobriety and panache, faced the recession head- on. It took all the blows that a seething maelstrom of water could throw at it, recalibrated itself, and, surfed through the darkest period of the country. It came out on the other side, sails trimmed, even in keel, facing the wind, ready for new opportunities opening up to those who go to sea in a ship such as ours that is built on the strongest of foundations.
Raigam Wayamba Salterns PLC | ANNUAL REPORT 2023 - 2024 3
CONTENTS
Overview
Report Rationale | 5 |
Product improvement and process efficiency of salt | 7 |
About Us | 8 |
Our Journey | 10 |
Corporate Information | 12 |
Key Performance Signs - Group | 14 |
Financial Highlights - Group | 15 |
Key Performance Signs - Company | 16 |
Financial Highlights - Company | 17 |
A Brief about the Group | 18 |
Our Presence | 20 |
Our Leadership
Message from the Chairman | 22 |
CEO's Review | 24 |
Board of Directors | 28 |
Senior Management Team | 33 |
Business Model & Operating Context
The Process | 34 |
Value Creation
The Creation of Value | 39 |
Manufactured Capital | 41 |
Human Capital | 42 |
Social and Relationship Capital | 43 |
Intellectual Capital | 44 |
Natural Capital | 45 |
Management Discussion and Analysis | 47 |
Corporate Governance
Stakeholder Engagement | 53 |
Corporate Governance | 61 |
Annual Report of Board of Directors | 77 |
Statement of Directors' Responsibility | 81 |
Responsibility Statement of Chairman, Chief | 82 |
Executive Officer and Chief Financial Officer | |
Report of the Audit Committee | 83 |
Report of the Remuneration Committee | 85 |
Report of the Related Party Transaction Review | 86 |
Committee | |
Disclosure of Related Party Transactions | 87 |
Risk Management | 88 |
Financial Statements | |
Financial Calendar | 93 |
Independent Auditor's Report | 94 |
Statement of Financial Position | 98 |
Statement of Profit & Loss | 99 |
Statement of Comprehensive Income | 100 |
Statement of Changes in Equity | 101 |
Statement of Cash Flows | 102 |
Notes to the Financial Statements | 103 |
Annexes | |
Investor Information | 142 |
Value Added Statement- Group | 145 |
Value Added Statement- Company | 146 |
Group Ten Year Summary | 147 |
Group Real Estate Portfolio | 148 |
Notice of Meeting | 149 |
Form of Proxy | 151 |
REPORT RATIONALE
This Annual Report is providing our stakeholders a holistic view of our strategy and performance during the financial year 2023/2024. Through this reporting, we aim to provide our stakeholders information that we believe is of material interest in making an informed assessment of our ability to create value over the short, medium and long- term. The Report includes material information relating to strategy, governance, performance, market risks and opportunities.
Scope and Boundary
This Report covers the operations of Raigam Wayamba Salterns PLC (RWS) and its operating
subsidiaries Southern Salt Company (Pvt) Limited
(SSC) and Raigam Wayamba Cereals (Pvt) Limited (RWC) from April 1, 2023 to March 31, 2024.
Standards and Principles
The annual financial statements have been prepared based on the principles and/or requirements of the Sri Lanka Accounting Standards (SLFRS/LKAS). The Report also complies with the requirements of the Companies Act No. 7 of 2007, the Listing Requirements
of the Colombo Stock Exchange (CSE) and the Code of Best Practice on Corporate Governance issued by the Institute of Chartered Accountants of Sri Lanka and the Securities and Exchange Commission. The sustainability reporting also complies with the Environmental, Social and Governance (ESG) reporting guidelines published by the CSE.
Materiality
In determining content to be included in this Report, we have considered matters that are of interest to current and prospective investors as well as other stakeholders who wish to assess our ability to deliver value. These material topics form the anchor of this Report and have been identified through numerous stakeholder engagement platforms, as discussed in this Report.
External Assurance
A combined assurance model is used to ensure that the credibility and integrity of our reporting. External assurance on the financial statements has been provided by Messrs. Ernst and Young. The Company's Audit Committee also monitors adequacy and effectiveness of the financial reporting and internal control systems.
Feedback
We welcome your feedback on our Annual Report and encourage you to put forward any suggestions you may have in terms of what you would like to see in our next Report.
Laknow Pathiranage
Senior Manager - Finance Raigam Wayamba Salterns PLC
No: 23, Walukarama Road, Colombo 03.
Email: laknow@raigam.lk
Raigam Wayamba Salterns PLC | ANNUAL REPORT 2023 - 2024 5
PRODUCT IMPROVEMENT AND PROCESS EFFICIENCY OF SALT
OPTIMIZING THE NATURAL PROCESS
Nature's salt is harvested from the sea through careful evaporation and filtered to make natural crystals under highly controlled conditions.
Research is being continued to explore possibilities of using and entirely natural process in salt manufacture.
ALTERNATIVE PROCESSING
METHODS
Salt is made using latest available technology and in it, the specs of the final product
are carefully controlled in line with the requirements of various market segments.
R&D is being conducted into alternative methods to produce fine-powdered salt without damaging the chemical composition of the end product.
PVD ENHANCEMENT
Pure Vacuum Dried (PVD) salt is the purest form of salt made from sea salt and designed for sectors who expect extra purity.
During the year under review, the company further strengthen the use of latest technology, boosting product quality and controlling cost of production.
Raigam Wayamba Salterns PLC | ANNUAL REPORT 2023 - 2024 7
ABOUT US
Vision
"To be the convenient partner in enhancing the taste and health needs of the nation"
Mission
"To become the largest value added salt supplier in the island contributing to fulfillment of salt and iodine needs of the nation by way of extracting best resources from nature using modern technology and improved productivity while satisfying stakeholders of every facet"
Values
- We value our customers as the most important group and ensure that all of our internal processes are customer centric and aimed at exceeding their needs and wants to the point of thrilling them.
- We value management by evidence over management by opinion in all of our decision making processes.
- We ensure that all our employees are afforded equal opportunity and equitable treatment.
- We work constantly to create the optimal work environment for our employees in line with the strongest attention to employee rights.
- We recognize that our employees are our greatest and most crucial asset.
- We recognize and value the drivers of continuous improvement of our internal processes and systems.
- We value team effort over individual goal achievement.
- We recognize and accept our social and environmental responsibilities and value non-compromised effort for the preservation and enhancement of both.
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