Office Equipment : ANNUAL REPORT 2020/2021

Office Equipment PLC Annual Report

2021

Notice of Meeting

NOTICE IS HEREBY GIVEN that the Sixty Fourth Annual General Meeting of Office Equipment PLC will be held at the NCC Committee Room, No. 29, Maitland Place, Colombo 07 on 30th September 2022 at

10.15 a.m. and the business to be brought before the Meeting will be:

1. To receive and consider the Annual Report of the Board of Directors on the affairs of the Company and the Financial Statements for the year ended 31st March 2021 and the Report of the Auditors thereon.
2. To pass the ordinary resolution set out below to appoint Mr. Anthony A Page who is 74 years of age, as a Director of the Company;
   "IT IS HEREBY RESOLVED THAT the age limit stipulated in Section 210 of the Companies Act, No.07 of 2007 shall not apply to Mr. Anthony A Page who is 74 years of age and that he be and is hereby appointed a Director of the Company in terms of Section 211 of the Companies Act No. 07 of 2007"
3. To re-elect Mr. P S R Casie Chitty who retires by rotation in terms of Articles 84 of the Articles of Association, as a Director of the Company.
4. To authorise the Directors to determine donations for the ensuing year.
5. To re-appoint Messrs. Pope & Co, Chartered Accountants as the Auditors of the Company and to authorize the Directors to determine their remuneration.

BY ORDER OF THE BOARD

OFFICE EQUIPMENT PLC

P W CORPORATE SECRETARIAL (PVT) LTD

31st August 2022

Colombo.

Note:

Note: A member entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and vote instead of him/her. A Proxy need not be a member of the Company. A Form of Proxy is enclosed for this purpose. The completed form of Proxy should be deposited at the Registered Office of the Company, not less than forty-eight (48) hours before the time fixed for the commencement of the Meeting.

ANNUAL REPORT- 2021

Corporate Information

Directors

L. I. Ratnasabapathy

(Chairman/Managing Director)

L. C. G. Ratnanather

Anthony A. Page

P. S. R. Casie Chitty

M. M. Marzook

A. M. De Alwis

Secretaries

P W Corporate Secretarial (Pvt) Ltd

Chief Executive Officer

L. I. Ratnasabapathy

Head of Finance

M. S. A. Kariapper

Auditors

POPE & Company

Chartered Accountants

Tax consultants

Nanayakkara & Co.

Chartered Accountants

Bankers

Commercial Bank of Ceylon Ltd.

Lawyers

Nithi Murugesu

Attorney-at-Law

ANNUAL REPORT- 2021

Directors' Profile

L. I. Ratnasabapathy - Executive Chairman and Managing Director

Mr. L. I. Ratnasabapathy is a CIMA finalist with broad experience and exposure to finance, information technology, systems design and implementation, project management, and commercial offset printing. He serves as the Executive Chairman and Managing Director for Ceylon Printers PLC, Office Equipment PLC, Paragon (Ceylon) PLC, Kalamazoo Industries (Pvt) Ltd and International Computers (Ceylon) Ltd.

L. C. G. Ratnanather - Director

Mr. L. C. G Ratnanather has been with the Company since 1965 and counts 56 years of senior management experience. He acts as the Group Finance Director and oversees the finance function. He is a director of Ceylon Printers PLC, Paragon Ceylon PLC, Kalamazoo Industries (Pvt) Ltd, Office Equipment PLC and International Computers (Ceylon) Ltd. Mr. Ratnanather is a finalist at the Chartered Institute of Accountants Sri Lanka.

A. A. Page - Independent Non-Executive Director

Mr. Anthony A Page counts 49 years of management experience in a diverse array of business, serving on the Boards of many companies. He was formerly on the Board of the Colombo Stock Exchange and is a former Council Member of the Employers' Federation of Ceylon. He is a Fellow member of the Institute of Chartered Accountants of Sri Lanka.

P. S. R. Casie Chitty - Independent Non-Executive Director

Mr. R. Casie Chitty joined the board as an independent non executive director in 2009. He is an independent non executive director of Ceylon Printers PLC, Paragon Ceylon PLC and Office Equipment PLC. Mr. Casie Chitty who holds a Masters in Economics from the University of Colombo is also a Fellow of the Association of Chartered Certified Accountants (ACCA), UK, an Associate Member of the Chartered Institute of Management Accountants (CIMA), UK, and a Chartered Financial Analyst, USA.

M. M. Marzook - Independent Non-Executive Director

Mr. M. M. Marzook joined the board as an independent non executive director in 2013. He is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), an Associate Member of the Chartered Institute of Management Accountants (CIMA) and holds a Master of Business Administration from the University of Sri Jayawardenapura. He is currently the Head of Special Projects - Finance and Management Information Systems, at Hayleys Advantis Limited. He counts for over 31 years' experience in Finance, Consulting and Financial Advisory.

A. M. De Alwis - Executive Director

Ms. A. M. De Alwis Obtained a Bachelor of Arts in Economics in 1994 from Haverford College in Pennsylvania and is a passed finalist of CIMA.

She started her career as a management trainee at the Colombo Stock Exchange for a period of a year from September 1994 to 1995. Thereafter she commenced Accounting studies and completed the Stage 4 exams of the Chartered Institute of Management Accountants in 1998.

While studying accountancy, she obtained work experience at BIP Advantage Sri Lanka, an advertising agency, from September 1994 to December 1995 in the Accounts department. She then served as the Accountant at DLPL (Yellow Pages) Sri Lanka from 1999 to 2000 and thereafter for a period of a year at the Ceylon Printers Group of Companies, before rejoining the group in 2020.

ANNUAL REPORT- 2021

Chairman's Review

On behalf of the Board of Directors, I welcome you to the Sixty fourth Annual General Meeting of Office Equipment PLC and it gives me great pleasure to present to you the Annual Report of the Company for the year ended 31st March 2021.

During the year under review, the turnover of the Company recorded a decrease from Rs.71.540 million to Rs.48.932 million. Moreover, there was a decrease recorded in the Gross Profit from Rs 38.023 million to 35.828 million. The company's recorded net loss before taxes for the year was reduced from Rs 4.539 million in the preceding year to a profit of Rs 0.719 million.

The Group turnover declined from Rs 78.161 million to Rs 55.409 million during the period.

During the period under review the company faced increasing operational challenges due to restrictions in movement around the country and import restrictions. There was a significant reduction in the sale of new products and a marginal reduction in service income during the period. However the company managed to maintain its service income due to its efficient handling of customer complaints and prompt service levels. The company saw decreases in sales and administration expenditure which contributed towards the company and group achieving a marginal profit during the year.

Despite the difficult market conditions the company is now succeeding In winning new orders.

The organization is working closely with the leading banks and Cash in Transit companies in providing cash handling solutions to further their regional expansion strategies and currently maintains a presence in these regions to service its clientele.

In conclusion, I wish to thank all our customers, bankers, suppliers and principals for their patronage and support.

My thanks also to my colleagues on the Board, the Management and staff for their commitment and last but not least, our shareholders for their support and confidence.

L. I. Ratnasabapathy

Chairman

31st August 2022

ANNUAL REPORT- 2021