The Directors are pleased to present this 47th Annual Report of your Company together with the Audited Financial Statements of Sunshine Holdings PLC (the “Company”), and the Audited Consolidated Financial Statements of the Group for the year ended 31 March 2020 and the Independent Auditors’ Report on page 42 conforming to all relevant statutory requirements. The details set out here provide pertinent information required by the Companies Act No. 07 of 2007 and the Colombo Stock Exchange (CSE) Listing Rules and are guided by recommended best practice.
Sunshine Holdings was incorporated on 16 June 1973 as a limited liability company to engage in the travel business under the name of Sunshine Travels Ltd., and subsequently converted to a public limited liability company. Sunshine Holdings is the Group’s holding company. The principal activities of the Company and the Group during the year are given on page 57.
The financial and operational performance and outlook of the Company and the Group and its business units are described in the Company Profile on page 6, and the Group Managing Director’s Review on page 12. This, together with the Audited Financial Statements, reflects the state of affairs of the Company and the Group. Segment-wise contribution to Group revenue, results, assets and liabilities is given in Note 9.1 to the Financial Statements.
In terms of Sections 150 (1), 151, 152 and 153 (1) and (2) of the Companies Act, the Board of Directors is responsible for the preparation of the Financial Statements of the Company and the Group, which reflect a true and fair view of the financial position and performance of the Company and the Group. In this regard, the Board of Directors wishes to confirm that the Consolidated Financial Statements appearing on pages 46 to 162 have been prepared in conformity with the requirements of the Sri Lanka Accounting Standards as mandated by the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 and the Companies Act. There were no changes to the accounting policies adopted in the previous year for the Company and the Group, other than those stated.
The Financial Statements of the Company and the Group for the year ended 31 March 2020, including comparatives for 2018/19, were approved and authorised for issue by the Board of Directors in accordance with a resolution of the Directors on 26 May 2020. The appropriate number of copies of the Annual Report will be submitted to the CSE and to the Sri Lanka Accounting and Auditing Standards Monitoring Board within the statutory deadlines.
The Directors of the Company, as at 31 March 2020, and their brief profiles are given on page 16. The names of all the Directors who held office anytime during the reporting year are given on page 22. The names of Directors who will retire and those who will seek reappointment at the forthcoming Annual General Meeting (AGM) are given in the Notice of Meeting on page 166.
Except as stated in Note 41 to the Financial Statements, during and at the end of the financial year 2019/20, none of the Directors were directly or indirectly interested in contracts or proposed contracts connected with the Company or the Group’s business.
The details of shares held by the Directors as at the end of the current and the previous financial year are as follows:
|Mr G Sathasivam||3,055||3,055|
|Mr V Govindasamy||451,500||451,500|
|Mr S G Sathasivam||1,018||1,018|
|Mr A D B Talwatte||1,018||1,018|
Messrs M A Shaikh, H D Abeywickrama, D A Cabraal, S Shishoo, S Ratwatte and Y Kitao did not hold shares of the Company.
The Directors recommend that a final cash dividend of Rs. 112,165,577 equivalent to Rs. 0.75 per ordinary share (2018/19 Rs. 186,942,629 equivalent to cash dividend of Rs. 1.25) be paid to those on the register of shareholders at the close of business on the ex-dividend date. Prior to recommending the dividend and in accordance with Sections 56 (2) and (3) of the Companies Act, the Board signed a certificate stating that, in their opinion, based on available information, the Company will satisfy the solvency test immediately after the distribution is made and have obtained a certificate from the Auditors in terms of Section 57 of the Companies Act. Shareholder approval will be sought on the day of the AGM to declare and pay the dividend as recommended.
The External Auditors, Messrs KPMG, who were appointed in accordance with a resolution passed at the 46th AGM, have expressed their opinion on pages 42 to 45. Details of their remuneration are given in Note 12 on page 71 to the Financial Statements. As far as the Directors are aware, the Auditors do not have any other relationship or any interest in contracts with the Company or the Group.
The Directors, to the best of their knowledge and belief, are satisfied that all statutory payments to the Government, other regulatory institutions, and related to employees have been made on time or have been provided for.
The Company has not made donations during the year 2019/20.
The Board of Directors reviewed the business plans of the Company and the Group and is satisfied with the adequacy of resources to continue operations in the foreseeable future. Accordingly, the Financial Statements of the Company and the Group have been prepared on the going concern basis.
The Board carried out an assessment of the potential implications of COVID 19 on profitability and liquidity of each Group's entity and at consolidated Group level, and incorporated the required adjustments in the revised budget for the year ending 31 March 2021. Based on this assessment, the Board is of the view that the Group has adequate liquidity position considering the cash flows in hand and the secured facilities available through bank credit facilities. Accordingly, the Group will not have any limitations in meeting the future obligations and ensuring business continuity.
The Board therefore is confident that COVID-19 will not impact the going concern ability of the Group and the Company, and will continue to monitor any material changes in future economic conditions and amend the business projections accordingly, if required. The Group is regularly monitoring the situation.
The relevant interests of each Director in the share capital of the Company have been notified by the Directors to the CSE in accordance with Section 7.8 of the Listing Rules and, accordingly, the relevant entries have been made in the Company’s Interests Register which has been maintained as required by the Companies Act. This Annual Report also contains particulars of entries made in the Interests Registers of subsidiaries which are public companies or private companies which have not dispensed with the requirement to maintain an Interests Register as permitted by Section 30 of the Companies Act.
Particulars of entries in the Interests Register include interests in contracts. The Directors have all made a general disclosure to the Board as required by Section 192 (2) of the Companies Act and no additional interests have been disclosed by any Director.
The Company’s transactions with related parties in respect of the Company and the Group, for the financial year ended 31 March 2020, are given in Note 41 to the Financial Statements on page 154 of the Annual Report and have complied with Rule 9.3.2 of the Listing Rules and the Code of Best Practices on Related Party Transactions under the Securities and Exchange Commission Directive issued under Section 13 (c) of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987.
The Board, through the involvement of the Group Executive Committee, takes steps to gain assurances on the effectiveness of control systems in place. The Audit Committee receives regular reports on the adequacy and effectiveness of internal controls in the Group, compliance with laws and regulations, and established policies and procedures of the Group. The Board has direct access to the Chairman of the Audit Committee. This Committee reviews reports of the Internal Auditors too.
The Company has not engaged in any activity which is harmful to the environment.
The Group pursues its business goals under a stakeholder model of business governance. As per this model, the Group has taken specific steps, particularly in ensuring the conservation of its natural resources and the environment as well as addressing material issues highlighted by stakeholders.
The Group has an equal opportunity policy and these principles are enshrined in specific selection, training, development and promotion policies, ensuring that all decisions are based on merit. The Group practices equality of opportunity for all employees irrespective of ethnic origin, religion, political opinion, gender, marital status, or physical disability.
Please refer the Notice of Meeting that appears on page 166 of this Annual Report.
The Directors declare that:
Signed in accordance with the resolution of the Directors.
Mr Munir Shaikh
Mr D A Cabraal
Mr S G Sathasivam
Mr V Govindasamy
Group Managing Director
Mr A D B Talwatte
Mrs S Ratwatte
Mr S G Sathasivam
Mr H D Abeywickrama
Mr S Shishoo
Mr Y Kitao
Mr S Dias
27 May 2020