RISING STRONGER
S i n g e r ( S r i L a n k a ) P L C | A n n u a l R e p o r t 2 0 2 3 / 2 4
RISING
STRONGER
At Singer Sri Lanka, we have in recent years, endured a sustained test of our resilience. Through it all, we have remained unwavering in our commitment to excellence, emerging from adversity stronger and more determined than ever before. Our ability to adapt to changing market conditions and overcome challenges with agility has been instrumental in our continued success.
Looking ahead, we remain committed to leveraging our experiences to propel us towards even greater achievements. By maintaining a steadfast focus on our goals and embracing a culture of continuous improvement, we are confident that we will continue to rise stronger and achieve new heights of success in the years to come.
CONTENT
NAVIGATION ICONS
Customers Intellectual Investors
Employees Manufactured Business Partners
Financial | Natural | Social And |
Relationship |
Human Capital Government & Communities
Regulators
Overview
04 About this Report
06 Performance Highlights 2023/24
06 Non-Financial Highlights
08 Year at a Glance
09 Awards and Accolades
CHAIRMAN'S MESSAGE
12
GROUP CHIEF EXECUTIVE OFFICER'S REVIEW
16
The Singer Story | |
Who We Are | 21 |
Portfolio | 22 |
Milestones | 24 |
Group Structure | 25 |
2 Singer (Sri Lanka) PLC | Annual Report 2023/24
Management |
Discussion and |
Analysis |
FinancialSupplementary
ReportsInformation
Value Creation Model | 28 |
Stakeholder Relationships | 30 |
Operating Landscape | 32 |
Determining Materiality | 36 |
Our Strategy | 39 |
Sustainability Reporting at Singer | 41 |
The Capitals Report
Financial Capital | 46 |
Human Capital | 58 |
Social and Relationship Capital | 64 |
Manufactured Capital | 70 |
Intellectual Capital | 76 |
Natural Capital | 80 |
Stewardship | |
Board of Directors | 90 |
Management Team | 95 |
Corporate Governance | 98 |
Audit Committee Report | 110 |
Remuneration Committee Report | 112 |
Nominations and Governance Committee | |
Report | 113 |
Related Party Transactions Review | |
Committee Report | 115 |
Risk Management | 117 |
Financial Calendar | 124 |
Annual Report of the Board of | |
Directors on the affairs of the | |
Company | 125 |
Statement of Directors' Responsibility .... | 131 |
Statement by the Senior Independent | |
Director | 132 |
Independent Auditor's Report | 133 |
Statement of Profit or Loss and Other | |
Comprehensive Income | 138 |
Statement of Financial Position | 139 |
Statement of Changes In Equity | 140 |
Statement of Cash Flows | 143 |
Notes to the Financial Statements | 145 |
Parent, Subsidiaries and Related | |
Companies | 246 |
A Decade in Perspective | 247 |
Quarterly Analysis | 249 |
Horizontal and Vertical Analysis | 250 |
Share information | 256 |
Compliance With Corporate | |
Governance Frameworks | 260 |
Independent Assurance on Integrated | |
Reporting | 306 |
Independent Assurance on | |
Sustainability Reporting | 308 |
GRI Content Index | 310 |
Distribution Network | 317 |
Service Network | 320 |
Glossary | 323 |
Notice of Annual General Meeting | 324 |
Shareholder Feedback Form | 325 |
Form of Proxy | 327 |
Corporate Information | IBC |
Singer (Sri Lanka) PLC | Annual Report 2023/24 | 3 |
ABOUT THIS REPORT
About this report
This is the Integrated Annual report of Singer (Sri Lanka) PLC for the financial year ended 31st March 2024 which provides a balanced and concise overview of the Group's performance using financial, environmental, social and governance information. This is the third report using the Framework and seeksto provide a fair account of how its resources were allocated to create value for its key stakeholders.
Reporting frameworks and assurance
-
Financial statements and information:
Sri Lanka Financial Reporting Standards and external assurance provided by Messrs. KPMG - Narrative report: Integrated Reporting Framework of the International Integrated Reporting Council (IIRC). External assurance on Integrated Reporting provided by Messrs. Ernst & Young
-
Sustainability Reporting: Report has
been prepared in accordance with the: GRI
Standards 2021, with external assurance obtained from Messrs. Ernst & Young. We have also adopted the Sustainability Accounting Standards Board Standard for Multiline and Specialty Retailers & Distributors, Appliance Manufacturing and Consumer Finance
Singer (Sri Lanka) PLC has opted for early adoption of the SLFRS S1 and S2 Sustainability Reporting Standards under the transitional relief allowed by the ISSB and CA Sri Lanka. Accordingly, the Group has adopted a climate-first approach to the new standards, with plans in place to ensure full compliance by 2024/25.
- Gender Reporting: Gender Parity Reporting Framework issued by the Institute of Chartered Accountants of Sri Lanka
- Corporate Governance: Listing Requirements of the Colombo Stock Exchange and Code of Best Practice on Corporate Governance issued by CA Sri Lanka
4 Singer (Sri Lanka) PLC | Annual Report 2023/24
Report profile
Reporting period for financial and sustainability reporting: Financial year ended 31st March 2024
Frequency: Annual (01st April 2023 to 31st March 2024)
Reporting concepts
Strategic focus
Demonstrates how our activities are guided by clearly defined strategic priorities.
Connectivity
Interrelatedness and dependencies shown through navigation icons and signposting.
Stakeholder relationships
Chapter on stakeholder engagement, concerns, and responses.
Materiality
Systematic materiality assessment process
Consistency and comparability
Comparable information for the previous year provided wherever relevant.
Reporting boundary
The financial reporting included in this Report represents the Singer Group (comprising Singer (Sri Lanka) PLC or the "Company") and 6 subsidiaries as illustrated below. The boundary for sustainability reporting is limited to the Company and 4 key subsidiaries, which collectively account for 99% of consolidated assets. The reporting boundary remains unchanged compared to the previous year and there are no major restatements of information provided in previous reports. The Group's operations are solely in Sri Lanka.
Integrated reporting boundary
Financial reporting boundary
Sustainability reporting
SINGER (SRI LANKA) PLC
Singer Finance (Lanka) PLC
Regnis (Lanka) PLC (Amalgamated with Singer (Sri Lanka) PLC on
31st January 2024)
Regnis Appliances (Private) Limited
Singer Industries (Ceylon) PLC (Amalgamated with
Singer (Sri Lanka) PLC on 31st January 2024)
Reality Lanka Limited
Singer Business School (Private) Limited (Amalgamated with
Singer (Sri Lanka) PLC on 1st January 2024)
Domus Lanka (Private) Limited (Amalgamated with Singer (Sri
Lanka) PLC on 1st January 2024)
Customers | Employees | Investors | Business | Communities |
partners |
Materiality
Statement of Responsibility
Singer (Sri Lanka) PLC's Board of Directors is ultimately responsible for ensuring the accuracy of this Report. We hereby confirm that the 2023/24 report addresses all relevant material matters and fairly represents the Group's integrated performance. We also confirm that the Report has been prepared in line with the guidance provided in the Integrated Reporting Framework of the International Integrated Reporting Council.
Signed on behalf of the Board,
Mahesh Wijewardene
Group Chief Executive Officer
Feedback
We are committed to consistently improving the quality and readability of our corporate reporting and welcome your feedback and suggestions on our Annual Report. Please direct your feedback to,
Finance Director, Singer (Sri Lanka) PLC, 112, Havelock Road, Colombo 5
Email: shalinkas@singersl.com
The leadership team have identified the issues that could have the most significant impact on the Group's ability to create value. In determining these issues, we have considered the industry landscape, the concerns of our stakeholders and our strategic aspirations. The process used to determine material issues and the list of topics for the year are given on pages 36 to 38 of this Report.
Connectivity of information - Navigation icons
The Capitals | Stakeholders | Strategy | |||||
Financial Capital | Customers | Unparalleled Customer | |||||
Centricity | |||||||
Employees | |||||||
Human Capital | Above Industry Growth | ||||||
Risk | Intellectual Capital | Business Partners | and Profitability | ||||
Loved Employer Brand | |||||||
Social & Relationship Capital | Government & Regulators | ||||||
Manufacturing and Supply | |||||||
Manufactured Capital | Communities | Chain Excellence | |||||
Governance | Natural Capital | Investors | |||||
Singer (Sri Lanka) PLC | | Annual Report 2023/24 | 5 |
PERFORMANCE HIGHLIGHTS 2023/24
For the year ended 31st March | Group | Company | |||||
2024 | 2023 | Increased/ | 2024 | 2023 | Increased/ | ||
(Decreased) | (Decreased) | ||||||
Rs. '000 | Rs. '000 | % | Rs. '000 | Rs. '000 | % | ||
Revenue - Net | 69,973,442 | 54,767,234 | 28% | 63,333,445 | 47,950,386 | 32% | |
Gross Profit | 17,898,934 | 18,872,257 | (5%) | 16,054,917 | 16,215,934 | (1%) | |
Operating Profit | 3,137,410 | 6,687,768 | (53%) | 3,579,901 | 6,272,838 | (43%) | |
Net Finance Cost | 2,401,901 | 6,118,864 | (61%) | 3,621,385 | 6,263,475 | (42%) | |
Profit/(Loss) Before Tax | 338,653 | 174,192 | 94% | (118,484) | (68,636) | 73% | |
Profit/(Loss) For the Year | (91,299) | 95,931 | (195%) | (297,701) | 220,599 | (235%) | |
Total Comprehensive Income/(Expense) for the Year (Net of Tax) | 374,793 | (136,459) | (375%) | 161,620 | 201,872 | (20%) | |
Stated Capital | 1,138,857 | 626,048 | 82% | 1,138,857 | 626,048 | 82% | |
Other Components of Equity | 3,328,107 | 1,600,272 | 108% | 2,948,947 | 1,202,737 | 145% | |
Statutory Reserves | 376,387 | 244,215 | 54% | - | - | 0% | |
Non-Controlling Interest | 1,046,510 | 1,946,904 | (46%) | - | - | 0% | |
Total Equity | 12,443,746 | 12,089,984 | 3% | 8,324,543 | 6,647,515 | 25% | |
Property, Plant and Equipment - Net | 8,142,751 | 7,652,258 | 6% | 7,138,161 | 3,852,273 | 85% | |
Other Investments | 22,326 | 23,645 | (6%) | 20,141 | 21,524 | (6%) | |
Net-Current Assets | 6,855,859 | 14,015,396 | (51%) | 7,115,250 | 7,115,250 | 0% | |
Gross Dividends | N/A | N/A | N/A | Nil | 225,377 | (100%) | |
Dividend per Share - Rs. | N/A | N/A | N/A | Nil | 0.20* | (100%) | |
Dividend Payout Ratio-% | N/A | N/A | N/A | Nil | 102.17* | (100%) | |
Dividend Yield-% | N/A | N/A | N/A | Nil | 0.36 | (100%) | |
Earnings per Share - Rs. | (0.14) | 0.01 | (2278%) | (0.25) | 0.20 | (230%) | |
Price Earnings Ratio - times | N/A | N/A | N/A | (63.15) | 75.00 | (184%) | |
Net Assets per Share - Rs. | 9.76 | 9.00 | 8% | 7.13 | 5.90 | 21% | |
Market Price per Share - Rs. | N/A | N/A | N/A | 16.10 | 15.00 | 7% | |
Gross Profit Margin -% | 25.58 | 34.46 | (26%) | 25.35 | 33.82 | (25%) | |
Operating Profit Margin-% | 4.48 | 12.21 | (63%) | 5.65 | 13.08 | (57%) | |
Net Profit Margin-% | (0.13) | 0.18 | (174%) | (0.47) | 0.46 | (202%) | |
Return on Average Net Assets/Equity - % | (0.74) | 0.75 | (199%) | (3.98) | 3.04 | (231%) | |
Return On Capital Employed-% | 13.80 | 16.34 | (16%) | 17.90 | 25.62 | (30%) | |
Equity Assets Ratio-% | 13.26 | 15.34 | (14%) | 14.30 | 14.95 | (56%) | |
Debt Ratio - % | 86.74 | 84.66 | 2% | 85.70 | 85.05 | 1% | |
Debt to Equity-Times | 5.50 | 4.88 | 13% | 4.22 | 4.46 | (5%) | |
Gearing Ratio - Times | 0.84 | 0.82 | 2% | 0.80 | 0.81 | (1%) | |
Interest Cover - Times | 1.14 | 1.03 | 11% | 0.97 | 0.99 | (2%) | |
Dividend Cover - Times | N/A | N/A | 0% | 0.00 | 0.98 | (100%) | |
Current Ratio - Times | 1.11 | 1.33 | (16%) | 1.17 | 1.29 | (9%) | |
Quick Assets Ratio - Times | 0.76 | 0.86 | (11%) | 0.60 | 0.55 | 8% |
*2021/2022 Final Dividend Paid on 13th May 2022
Group
Company
6
Revenue | Operating Profit | Profit Before Tax | |||||
Rs.69,973Mn | 2024 | Rs.3,137Mn | 2024 | Rs.339Mn | 2024 | ||
Rs. 54,767 Mn | Rs. 6,687 Mn | Rs. 174 Mn | |||||
2023 | 2023 | 2023 | |||||
Revenue | Operating Profit | Profit Before Tax | |||||
Rs.63,333Mn | 2024 | Rs.3,580Mn | 2024 | Rs.(118)Mn | 2024 | ||
Rs. 47,950 Mn | Rs. 6,272 Mn | Rs. (68) Mn | |||||
2023 | 2023 | 2023 |
Singer (Sri Lanka) PLC | Annual Report 2023/24
NON-FINANCIAL HIGHLIGHTS
Manufactured
Capital
422 | 52% |
Customer service | Capacity |
touch points across | utilisation |
25 districts in the | |
country | 4 |
Rs. 9,118 Mn | |
Total asset base | Manufacturing |
in manufacturing | facilities in Sri |
sector | Lanka |
Environmental
Impact
52,767 GJ
Energy consumption
28 MT
E-waste collected
17%
GHG emissions reduced
Brand Strength
People's Brand of the
Year 2024
at SLIM-KANTAR People's Awards for the 18th consecutive year
Most Valuable Consumer
Brand-Retail
Brand Finance 2023
> 2.5 Mn
Loyal customer base
Government &
Society
Rs. 14.4 Bn
Total direct and indirect taxes paid to the government
2, 800+
Indirect employment through entrepreneurial branch model
Social and Relationship Capital
Customers
6.1 Mn | 15 |
Customer reach | Service centres |
86% | 406 |
Net promoter | Singer |
score | showrooms |
Business Partners
45% | 55% |
Payments to | Payments to |
local suppliers | global suppliers |
819 | 1,250+ |
Total suppliers | Dealers |
Responsible Employer
48,490 | Community | ||
3,102 | Training hours | ||
Rs. 2.27 Mn | 44% | ||
Employees | 15.63 | ||
CSR investment | Employment | ||
20% | Average training hours/employee | outside western | |
2,100+ | province | ||
Female representation rate | 393 | ||
Beneficiaries |
Rs. 4 Bn
Employee promotions
Personal cost
Singer (Sri Lanka) PLC | Annual Report 2023/24 | 7 |
YEAR AT A GLANCE
REVIEW OF 2023/24
The two halves of the year were characterised by contrasting conditions. The initial half of the year was marked by challenges including sustained import restrictions, a weaker rupee, and elevated finance costs, culminating in financial losses. However, the latter half witnessed significant improvements with the removal of import restrictions, coupled with the appreciation of the rupee and declining interest rates, heralding a positive shift in our operational landscape. Singer persevered through various challenges by implementing effective strategies and adapting swiftly to seize market opportunities. By remaining agile and responsive, the company safeguarded the interests of its stakeholders, ensuring a positive turnaround amidst a challenging year.
Group resilience strategies
- Sustain agility and resilience by prioritising four key areas for viability and making necessary adjustments according to the operating environment to facilitate a turnaround.
- Merging smaller companies and integrating listed factories to achieve economies of scale, streamline operations, and enhance overall efficiency.
- Boost revenue by acquiring established brands and expanding into new product categories.
- Sustaining revenue streams and absorbing margin losses to swiftly clear high priced inventory.
- Prioritise digital capabilities by implementing process enhancements, automation, and internal process advancements to optimise organisational efficiencies.
- Leverage Singer's customer loyalty program to enhance customer engagement, foster brand loyalty, and drive repeat purchases.
Macro-economic
headwinds
- The temporary suspension of imports continuing into the first half of the financial year.
- Escalating costs causing steep inflation in product prices and affecting affordability.
- Reduced consumption due to tightening of monetary and fiscal policy.
- Increases in taxation leading to low disposable income.
- The resurgence of informal grey markets and heightened price sensitivity diminishing brand loyalty among customers.
International | Processes | |
56 | brands | 8+ automated |
Singer won the coveted SLIM-KANTAR 'People's Brand of the year' award for the 18th year in a row
Outlook for
2024/25
- Implement advanced e-commerce capabilities and
launch a comprehensive Customer Relationship Management (CRM) system to improve customer satisfaction and loyalty.
- Continue the digitalisation of processes by integrating advanced software solutions and enhance overall efficiency.
- Capitalise on our retail strength by expanding our product offering to diversify revenue streams and capture new market opportunities.
8 Singer (Sri Lanka) PLC | Annual Report 2023/24
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