The Directors are responsible, under section 150 (1), 151, 152 (1), 153 (1) & 153 (2) of the Companies Act No. 7 of 2007, to ensure compliance with the requirements set out therein to prepare Financial Statements for each financial year giving a true and fair view of the state of affairs of the Company and the Group as at the end of the financial year and of the profit & loss of the Company and the Group for the financial year. The Directors are also responsible, under section 148 for ensuring that proper accounting records are kept to disclose, with reasonable accuracy, the financial position and enable preparation of the Financial Statements.

The Board accepts responsibility for the integrity and objectivity of the Financial Statements presented. The Directors confirm that in preparing the Financial Statements, appropriate accounting policies have been selected and applied consistently while reasonable and prudent judgments have been made so that the form and substance of transactions are properly reflected.

They also confirm that the Financial Statements have been prepared and presented in accordance with the Sri Lanka Accounting Standards. The Financial Statements provide the information required by the Companies Act and the listing rules of the Colombo Stock Exchange.

The Directors have taken reasonable measures to safeguard the assets of the Group and, in that context, have instituted appropriate systems of internal control with a view to preventing and detecting fraud and other irregularities.

As required by section 56 (2) of the Companies Act, the Board of Directors has authorised distribution of the dividends paid and now proposed, being satisfied based on information available to it that the Company would satisfy the solvency test after such distributions in accordance with section 57 of the Companies Act No. 7 of 2007, and have obtained in respect of dividends paid and sought in respect of the dividend now proposed, Certificates of Solvency from its Auditors.

The External Auditors, Messrs Ernst & Young are deemed re-appointed in terms of Section 158 of the Companies Act No. 7 of 2007 were provided with every opportunity to undertake the inspections they considered appropriate to enable them to form their opinion on the Financial Statements. The report of the Auditors, shown on page 67 sets out their responsibilities in relation to the Financial Statements.

Compliance Report

The Directors confirm that to the best of their knowledge, all statutory payments relating to employees and the Government that were due in respect of the Company and its Subsidiaries as at the end of the reporting period have been paid or where relevant, provided for.

By order of the Board,

Hayleys Group Services (Pvt) Ltd.
Secretaries
400, Deans Road, Colombo 10

May 14, 2013