Annual Report 2024/25

S i n ge r ( S r i L a n ka) PLC

An nual Re por t 2 024/ 2 5

EVER PRESENT

Singer (Sri Lanka) PLC | Annual Report 2024/25

At Singer Sri Lanka, we celebrate the fact that we are ever-present in the lives of Sri Lankans.

As Sri Lanka’s go-to supplier of home appliances and household electronics, Singer thrives when the country thrives. One can find Singer appliances in any home in the country; that stands as testament to our goal to make Singer goods accessible to all, and as proof that Singer is a lifestyle in itself.

We move forward, towards highly prosperous times and moments of brilliant innovation, and with us, we take forward the country’s population. We are ever-present, in every kitchen, living room, bedroom, bathroom and guest room in the nation; and while our products are

an aesthetic of their own, they are also efficient in every

aspect and enhances the lives of their users.

In the year under review, we have ensured that our products and services are affordable for all – and while cementing our position in the economy, we cement our position in every home.

Content

OVERVIEW

04 About this Report

08 Performance Highlights 2024/25 09 Non-Financial Highlights

10 Year at a Glance

12 Awards and Accolades

CHAIRMAN’S

GROUP MANAGING

MESSAGE

DIRECTOR’S MESSAGE

16 20

PRODUCTS ICONS

SMART PHONE AIR CONDITIONERS TELEVISIONS - LED LAPTOPS REFRIGERATORS WASHING MACHINES

2 Singer (Sri Lanka) PLC | Annual Report 2024/25

THE SINGER STORY

STEWARDSHIP

SUPPLEMENTARY INFORMATION

Our Milestones

34 Group Structure

MANAGEMENT DISCUSSION AND ANALYSIS

141 Audit Committee Report

143 Remuneration Committee Report

144 Nominations and Governance Committee

146 Related Party Transactions Review Committee Report

148 Risk Management

FINANCIAL REPORTS

1. Financial Calendar

2. Annual Report of the Board of

   THE CAPITALS REPORT 66 Financial Capital		167	Directors on the affairs of the Company Statement of Directors’
   78	Human Capital		Responsibility
   86	Social and Relationship Capital	168	Statement by the Senior
   93	Manufactured Capital		Independent Director
   99	Intellectual Capital	169	Independent Auditor’s Report
   107	Natural Capital	174	Statement of Profit or Loss and Other Comprehensive
   			Income
   		175	Statement of Financial Position
   		176	Statement of Changes In Equity
   		179	Statement of Cash Flows
   		181	Notes to the Financial
   			Statements

   TABLE TOP GAS COOKERS

   FURNITURE SEWING MACHINES GRINDERS & BLENDERS KITCHEN APPLIANCES AUDIOS

   Singer (Sri Lanka) PLC | Annual Report 2024/25 3

   ABOUT THIS REPORT

   This is the Integrated Annual report of Singer (Sri Lanka) PLC for the financial year ended 31st March 2025 which provides a balanced and concise overview of the Group’s performance using financial, environmental, social and governance

   information. This is the fourth report using the Framework and seeks to provide a fair account of how its resources

   were allocated to create value for its key stakeholders.

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 embraced a climate-first approach to the new standards

1. Gender Reporting: Gender Parity Reporting Framework issued by the Institute of Chartered Accountants of Sri Lanka

2. Corporate Governance: Listing Requirements of the Colombo Stock Exchange and Code of Best Practice on Corporate Governance issued by CA Sri Lanka

REPORTING FRAMEWORKS AND ASSURANCE

1. Financial Statements and

   Information: Sri Lanka Financial Reporting Standards and external assurance provided by Messrs. KPMG

2. Narrative Report: Integrated Reporting Framework of the International Integrated Reporting Council (IIRC). External assurance on Integrated Reporting provided by Messrs. Ernst & Young

3. 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

REPORT PROFILE

Reporting period for financial and sustainability reporting: Financial year ended 31st March 2025

Frequency: Annual (01st April 2024 to 31st March 2025)

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

Standards Board Standard for Multiline and Specialty Retailers & Distributors, Appliance Manufacturing and Consumer Finance

4 Singer (Sri Lanka) PLC | Annual Report 2024/25

REPORTING BOUNDARY

Regnis Appliances (Private) Limited

Singer Finance (Lanka) PLC

Reality Lanka LTD

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The financial reporting included in this Report represents the Singer Group (comprising Singer (Sri Lanka) PLC or the “Company”) and 3 subsidiaries as illustrated below. The boundary for sustainability reporting is limited to the Company and 2 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.

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MATERIALITY

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 52-53 of this Report.

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 2024/25 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 Managing Director

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

CONNECTIVITY OF INFORMATION

Navigation icons

Financial Capital

Human Capital

Social and Relationship Capital

Manufactured Capital

Intellectual Capital Natural Capital

Customers Employees Business Partners

Government & Regulators

Communities Investors

Unparalleled Customer Centricity

Above Industry Growth and Profitability

Loved Employer Brand

Manufacturing and Supply Chain Excellence

Digital Transformation

THE CAPITALS

STAKEHOLDERS

STRATEGY

Risk

Governance

Singer (Sri Lanka) PLC | Annual Report 2024/25 5

than the parts

of our whole

With a 148-year track record, Singer Sri Lanka continues to be the nation’s market leader in consumer durables. In the year under review, Singer has permeated every household in the nation, ensuring that accessibility is given to all, and prosperity is granted to all.

OVERVIEW

04 About this Report

08 Performance Highlights 2024/25 09 Non-Financial Highlights

10 Year at a Glance

12 Awards and Accolades

PERFORMANCE HIGHLIGHTS 2024/25

Group

Revenue Operating Profit Profit Before Tax

Rs.88,241Mn

2025

Rs.8,470Mn

2025

Rs.6,222Mn

2025

Rs. 69,872 Mn 2024 Rs. 3,137 Mn 2024 Rs. 339 Mn 2024

Company

Revenue Operating Profit Profit/(Loss) Before Tax

Rs.79,243Mn

2025

Rs.6,765Mn

2025

Rs.4,584Mn

2025

Rs. 63,232 Mn 2024 Rs. 3,580 Mn 2024 Rs. (118) Mn 2024

8 Singer (Sri Lanka) PLC | Annual Report 2024/25

NON-FINANCIAL HIGHLIGHTS

Overview

The Singer Story Management Discussion and Analysis

The Capitals Report

Stewardship Financial Reports Supplementary Information

MANUFACTURED CAPITAL

Rs. 7,472 Mn

Total asset base

65% Capacity utilisation

Customer touch points across

9 provinces in the country

421

BRAND STRENGTH

PEOPLE’S BRAND OF THE YEAR 2025

at SLIM-KANTAR People’s Awards for the 19th consecutive year

PEOPLE’S YOUTH BRAND OF THE YEAR 2025

at SLIM-KANTAR People’s Awards

> 2.7 Mn

Loyal customer base

ENVIRONMENTAL IMPACT

Customers

89%

Net promoter score

98.5%

Customer satisfaction rate

16

Service centres

405

Singer showrooms

Business Partners

Rs. 51 Bn

Payments to suppliers

1,610

Dealers

33%

Payments to local suppliers

RESPONSIBLE EMPLOYER

Communities

43%

Employment outside Western Province

Rs. 2.9 Mn

CSR investment

2,400+

Beneficiaries

GOVERNMENT & SOCIETY

Singer (Sri Lanka) PLC | Annual Report 2024/25 9

YEAR AT A GLANCE

Review of 2024/25

After a challenging period, we are seeing a strong recovery both in the market and within our industry. Initially, consumers

had difficulty adjusting to new pricing, which raised concerns about affordability. However, with the exchange rate now more favourable for imports and interest rates declining, we have successfully secured improved terms with global suppliers, allowing us to progressively lower prices. We are steadily gaining momentum and increasing market share, with strong product availability and an expanded portfolio being key drivers of this growth. Throughout this period, we adhered to a strategy that we firmly believed would yield positive results, with management recognising that the renewal model was essential for navigating the challenging environment. We are now transitioning back to our “be big” strategy, where scale plays a critical role. Our focus remains on maintaining growth momentum as the foundation for long-term and sustainable success.

Singer won the coveted SLIM KANTAR ‘People’s Brand of the Year’ award for the 19th year in

a row as well as the ‘People’s Youth Brand of the Year’ award and the ‘People’s Consumer Durable Brand of the Year’ award.

New product introductions

35+

11+

Processes automated

39

approved dealers

Rebranding of retail outlets and

GROUP STRATEGIES AND KEY FOCUS AREAS

• Focus on optimising our cost structure to offer more affordable options to our customers while maintaining our profit margins.

• Prioritise the employee pillar by developing a skilled workforce and encouraging innovation to prepare employees for emerging trends and technological advancements.

• Investing significantly in marketing efforts to expand our brand reach, increase visibility, and drive consumer engagement across various platforms.

• Maintaining optimal inventory levels to ensure product availability, reduce lead times, and reinforce our position as a reliable supplier in the market.

• Pursuing digital transformation to modernise our workflows and focusing on process optimisation across all departments to improve operational efficiency.

MACRO-ECONOMIC HEADWINDS

Consumer Purchasing Power Concerns - Despite inflation stabilising, affordability remains a challenge for many consumers.

Impact of Increased Taxation - Higher taxes reducing disposable income, affecting both consumer spending and business operations.

Grey Market Competition -Unregulated imports continue to create price competition, affecting official retailers.

10 Singer (Sri Lanka) PLC | Annual Report 2024/25

Overview

The Singer Story Management Discussion and Analysis

The Capitals Report

Stewardship Financial Reports Supplementary Information

ESG HIGHLIGHTS

Environmental (E)

Singer Group have a significant impact on ESG (Environmental, Social, and Governance) factors through its various initiatives and practices. Through these initiatives, Singer contributes to the advancement of ESG principles, driving sustainability, social welfare, and ethical governance.

Singer (Sri Lanka) PLC | Annual Report 2024/25 11

AWARDS AND ACCOLADES

These honours are more than accolades; they are reflections of the trust millions place in Singer daily. They celebrate Singer’s relentless pursuit of innovation, commitment to quality, and the ability to evolve while staying true to its heritage. Singer remains not just a brand, but a beloved part of Sri Lanka’s story.

1. SLIM KANTAR People’s Brand Of The Year 2025

2. SLIM-KANTAR People’s Youth Brand Of The Year 2025

3. SLIM-KANTAR People’s Consumer Durable Brand Of The Year 2025

4. Federation of Asia Pacific Retailers Association (FAPRA) 2024 - Most Innovative Retail Concept Country Award Winner

5. Best Corporate Citizen Sustainability Awards 2024 - Retail Sector Winner

6. TAGS Awards 2024 - Trading Sector Gold Award

7. ACCA Sustainability Awards 2024 -Retail Sector Winner

8. Chairman’s Award Winner - Consumer And Retail Sector For The Phenomenal Comeback In The Mobile Phone Category

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12 Singer (Sri Lanka) PLC | Annual Report 2024/25

Overview

The Singer Story Management Discussion and Analysis

The Capitals Report

Stewardship Financial Reports Supplementary Information

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Singer (Sri Lanka) PLC | Annual Report 2024/25 13

in the drive

to serve

Having achieved a reputation associated with trust, quality and reliability, Singer is now one of the island’s most beloved brands, and through local manufacturing and international partnerships, Singer has grown from strength to strength,

all in service of this country’s citizens.

THE SINGER STORY

24 Who We Are

26 Portfolio

28 History of Singer and Our Milestones

34 Group Structur

35 Way Forward

CHAIRMAN’S MESSAGE

Mohan Pandithage

Chairman

16 Singer (Sri Lanka) PLC | Annual Report 2024/25

Overview

The Singer Story

Management Discussion and Analysis

The Capitals Report

Stewardship Financial Reports Supplementary Information

Dear Shareholder,

I am delighted to report that the Singer

Group recorded a Profit After Tax of Rs.

4.18 Bn for the financial year ended 31st March 2025, turning around the loss of Rs. 91 Mn recorded in the previous year as

Sri Lanka’s economy stabilised after two years of unprecedented challenges. The Group’s performance for the year reflects the significant changes undertaken to realign the Group’s portfolios, touchpoints and processes to meet the needs and budgets of customers, recognising

the varied needs of a loyal and diverse customer base built and retained over generations. It is a story of building strong value propositions for discernible customer segments with attention to detail and driving change to deliver the same as a leaner and more efficient organisation that moves forward, further and faster.

RE-WRITING THE PLAYBOOK

Singer used the period of import restrictions to re-think its game plan as demand dynamics shifted and the country saw a surge in migrations,

impacting both our internal and external customer base. While we took care of our internal customers during the lean times, we needed to rebuild the teams to be stronger and more agile than before. Significant work went into defining new value propositions for them that were aligned to Singer’s business goals and their aspirations and tested with reality checks as the landscape had changed significantly.

There was a clear understanding that we needed multiple value propositions to cater to the diverse lifestyles of our extensive customer base. Infrastructure, processes

and products were aligned to deliver on these value propositions that we aspired to deliver for our loyal customers, to uplift lives. This is what Singer has been doing for more than a century and is still what drives and differentiates us.

This is also the first-year post-merger of the manufacturing arms, and the results affirm our decision to merge. Administration is leaner and more responsive. Our manufacturing has expanded reflecting the power of the Singer brand. Supply chains have been strengthened and made more resilient. Importantly, how we reach our

customers is also changing as we look at omnichannel presence, serving customers at their convenience. We remain an integral part of Sri Lanka’s socioeconomic fabric, guiding Sri Lankans to realise their

Singer (Sri Lanka) PLC | Annual Report 2024/25 17

CHAIRMAN’S MESSAGE

potential by integrating technology to create comfort, convenience and time.

DELIVERING RESULTS

The Singer Group delivered a consolidated revenue growth of 26% to Rs. 88.24 Bn, creating a new growth trajectory for the Group. A new mix of products delivered through our multi-channel network enabled the Group to improve gross margins as gross profits increased by 57% to Rs.

27.93 Bn reflecting the effectiveness of the new playbook. The Group’s operating profit increased by 170% to Rs. 8.47 Bn

comfortably accommodating the increased Selling & Distribution expenses and Impairment provisions. Net finance costs declined by 31% to Rs.1.65 Bn as interest rates declined during the year. Profit before tax increased by 1,737% to Rs. 6.22

Bn, positioning the Group for growth in a new era of value conscious, tech savvy consumers. Profit after tax amounted to Rs.4.18 Bn as the Group turned around the loss of Rs.91 Mn recorded in the previous year. This is a phenomenal story measured by any yardstick, and one that merits a deep dive into the annual report to appreciate the multiple initiatives and the holistic approach adopted to make it a reality.

It is important to note that the economic and political stability restored in the country played a key role with lower inflation and interest rates, an appreciating rupee and increased worker remittances serving as favourable tail winds. It is

well established that retailers do well when the country prospers. While acknowledging the positive impact of economic conditions, it is necessary to acknowledge that the growth achieved by Singer significantly outpaces the 5%

growth rate of the country and that it takes meticulously executed strategy to deliver results of this scale.

GOVERNANCE & OVERSIGHT

The merged entity simplified governance of the entity as a whole, significantly freeing up time of the Board and Corporate Management to focus on what needed to be managed. The benefits have undoubtedly filtered down the organisation, easing administrative burdens and eliminating overlaps in multiple functions and processes.

We strengthened Board capabilities welcoming 5 new directors to the Board, commencing with the appointment of Ms. Kawshi Amarasinghe in June 2024 and Mr. Jonathan Alles in November 2024 who serve as Independent Non-

Executive Directors. This was followed by the appointments of Mr. Vajira Tennakoon, Mr. Thulitha Mendis and Mr. Shalinka Seresinhe as Executive Directors in April 2025. Mr. Mahesh Wijewardene was appointed Group Managing Director in April 2025. We bid farewell to Mr. Dumith Fernando and Mr. Hisham Jamaldeen who served as Independent Directors during the year. The Board of Directors was expanded from 9 to 12, facilitating a better balance of Executive, Non-Executive and Independent Directors.

The public float moved above the minimum 10% requirement as a result of the post amalgamation shareholding structure. As a result of this and the

increase in the market capitalisation of the public float with the upward increase in the share price, the Company has been transferred out from the Secondary Board to the Main Board of the Colombo Stock Exchange in March 2025.

The Board ensured compliance with all the requirements of CSE Listing Rule #9 on Corporate Governance. A new Nomination & Governance Committee was established in May 2024, completing the mandatory Board committees required. The policies were published on the website in line with the requirements.

ESG integration gained importance with the issuance of IFRS Sustainability

Standards, later adopted by the Institute of Chartered Accountants of Sri Lanka and progressively mandated. Singer Sri Lanka follows the Hayleys Group ESG Framework as detailed in this report.

Going forward, we will consider expanding our customised ESG approach.

RISKS AND OPPORTUNITIES

The Board is firmly of the view that the potential benefits of opportunities in Singer’s horizon far outweigh the risks. We are a business of people connecting people to opportunity and that is always a workable formula – we just need to read the signs, listen to the people and stay relevant.

Singer has been a critical partner in creating a tech savvy generation that enables the launch of a digital economy. Retail sales of digital devices support the country’s national IT framework, and we are justifiably proud of the role we have played in putting technology in the hands of farmers and fishermen who can get accurate weather forecasts or the student who accesses e-learning or watches a lesson on the television. We continue

to pursue opportunities in creating the tech ecosystems that connect people to opportunity, uplifting lives.

Singer has an opportunity to thrive in the transition to a low carbon economy, acting as a catalyst to introduce energy efficient appliances and renewable energy driven products to market. Our plans for the future have taken this into consideration and our products and processes have been aligned to seize this opportunity.

The grey market continues to thrive, supported by a relatively high VAT which widens the gap between entities that abide by the law and those that circumvent

it. The incentive for consumers to risk purchases in the grey market is also

18 Singer (Sri Lanka) PLC | Annual Report 2024/25