Our Annual Report is structured in line with our business model and emphasises our strategic direction which in turn spans five distinctive imperatives. These imperatives cover all key forms of capitals.
The business model of People’s Leasing is a system for transforming inputs into outputs to generate outcomes that make an impact, contributing towards the fulfilment of our Vision and Mission in the process.
Building a legend (refer pages 10 to 23) involves marching towards the realisation of our Vision while staying true to our Mission.
It also involves sound governance (“Being responsible stewards” on pages 24 to 59) as we consider the impacts and influence of the overarching trends in the operating environment (“Putting enterprise in context” on pages 60 to 65) and stakeholder expectations (“Strengthening stakeholder relationships” on pages 66 to 71) on our ability to create value. Our strategy (“Plotting our journey” on pages 72 to 77) is designed to ensure that we remain on track to meet our goals.
Our business model can be considered a system for transforming inputs through business activities into outputs, outcomes, and impact with the goal of fulfilling our Vision and Mission. This “results chain” (“Seeing enterprise in action” on pages 78 to 150) is also underpinned by continuous monitoring and evaluation of results (“Staying on course” on pages 152 to 178) to ensure that we remain on course.
As a well-entrenched player in the NBFI sector in Sri Lanka, we have a resilient business model that has evolved over the past two decades. It is an important determinant of our sustainability and therefore, draws guidance from multiple disciplines such as economics, finance, marketing, regulation, strategy etc. to remain relevant in its day-to-day operations. Further, given the competitiveness and the complexities of the market, the dynamic operating environment and the emerging developments that threaten to challenge conventional business models, People’s Leasing continuously fine tunes the components of its business model, process, or activities in particular, based on the available/required inputs, targeted outputs, envisaged outcomes, and desired impact.
As we continue our work in building a legend, we look back at the highlights of the year. Our Chairman discusses how we have been realising our Vision and contributing to financial inclusion. How we remain true to our Mission is discussed by our Chief Executive Officer who also highlights our focus on innovation and customer service in our quest to create value.
Responsible stewardship is championed by our Board of Directors, and corporate management and management teams. People’s Leasing is supported by a robust compliance culture, with the necessary controls, training, and technology in place. Sound corporate governance is also practiced to create trust and engagement between the Company and its investors. The Annual Report of the Board of Directors on the affairs of the Company provides information required by regulators.
As a responsible corporate citizen, we put value creation at the heart of our strategy. Our growth, during the reporting year, is reviewed in the context of global economic activity which impacted our local economy and, in turn, our business. We identified these external developments as opportunities and risks. In this Report, we look at topics that have the most impact on our value creation process.
Through meaningful dialogue with our key stakeholder groups we are able to better understand and address their needs and concerns while balancing the distribution of value created. The operating environment and stakeholder engagement become the basis for materiality. The materiality of a topic was assessed by its relevance to People’s Leasing or our stakeholder, and its significance. How significant it is was determined by the probability of occurrence and the magnitude of impact.
Our strategic imperatives are designed to mitigate risks and capitalise on the opportunities that are material to us and which arise from stakeholders concerns and the overarching trends shaping the contours of our operating environment. Seeing enterprise in action All forms of inputs that help People’s Leasing create value through its business model are capitals. It comprises both quantitative and qualitative inputs provided by stakeholders external to the Company as well as those generated internally. Beyond the financial capital, our future prospects and potential depend on the quantity and quality of these capital inputs in today’s context. Inputs then are the internal and external capitals we use to create value.
Activities are actions taken or work performed through which inputs are used to produce specific outputs. Activities focus on key strategic imperatives.
Outputs can be defined as the short-term impact. They are the services we produce and the resulting changes which are relevant to the achievement of outcomes. We define outcomes as value created by us for the Company and for our stakeholders in the medium term. Impact is the continued delivery of our Vision and Mission over the long term.
In order to mitigate the risks associated with our business model, our Integrated Risk Management Framework focuses on managing our exposures to risk and potential losses and to protect the value of our assets and shield earnings. To ensure that we stay on course we constantly monitor and evaluate our performance making minute course adjustments as the need arises.
As indicated in the Contents on the previous pages, this Report is structured in line with our business model (see overleaf).