C O N T E N T S
Corporate Information | 2 |
Chairman's Statement | 3-4 |
Report on the Affairs of the Company | 5-8 |
The Board of Directors | 9-10 |
Corporate Governance - Compliance Table | 11-12 |
Corporate Governance - Attendance of Directors at Meetings | 13 |
Corporate Governance - Remuneration & Audit Committee Report | 14 |
Corporate Governance - Related Party Transactions Review Committee Report | 15 |
Material Foreseeable Risk Factors | 16 |
Directors' Responsibilities for the Preparation of the Financial Statements | 17 |
Independent Auditors' Report | 18-22 |
Statement of Profit or Loss & Other Comprehensive Income | 23 |
Statement of Financial Position | 24 |
Statement of Changes in Equity | 25 |
Statement of Cash Flows | 26 |
Notes to the Financial Statements | 27-69 |
Statement of Value Added | 70 |
Shareholders' and Investor Information | 71-72 |
Ten Year Financial Review | 73 |
Glossary of Financial Terminology | 74 |
Notice of Meeting | 75 |
Form of Proxy | Enclosed |
PGP Glass Ceylon PLC
CORPORATE Information
The Board of Directors
Vijay Shah - Chairman
Sanjay Jain - Executive Director & COO
Sanjay Tiwari
Dr. C.T.S.B Perera
R.M.S. Fernando
Audit Committee
Sanjay Tiwari - Chairman
Dr. C.T.S.B Perera
R.M.S Fernando
Remuneration Committee
Vijay Shah - Chairman
Dr. C.T.S.B. Perera
R.M.S. Fernando
Related Party Transactions Review Committee
Vijay Shah - Chairman
Dr. C.T.S.B. Perera
R.M.S. Fernando
Senior Management Team
Sanjay Jain - Executive Director & COO
Palitha Piyanandana - Head of Supply Chain
Niloni Boteju - Financial Controller
Thushara Deshapriya - Head of Domestic Marketing
Damitha Dasanayake - Head of Export Marketing
Sanjeewa Mahendra - Head of Quality Assurance
Naveen Atapattu - Head of Engineering Services
Achini Kandanarachchi - Senior Manager - Human Resources
Company Registration Number
PQ 190
Registered Office
148, Maligawa Road, Borupana, Ratmalana Telephone: +94 112 635 481-83/ +94 117 800 200 Fax:+94 112 635 484
E-mail: pgp.info@pgpfirst.com
Web: www.pgpglassceylon.com
Factory
Wagawatte Road, Poruwadanda, Horana.
Telephone: +94 344 938 965-67/ +94 347 800 200
Fax:+94 342 258 120
Madampe Road,Pahala Walahapitiya,Nattandiya
Telephone: +94 327 800 200 - 4
Fax:+94 322 255 193
Auditors
Statutory
Messrs. KPMG
Chartered Accountants
32 A, Sir Mohamed Macan Markar Mawatha,
Colombo 03.
Internal
Messrs. Ernst & Young Consulting Services (Pvt) Ltd
201, De Saram Place
P.O.Box 101,
Colombo 10.
Bankers
Citi Bank, N.A
Commercial Bank of Ceylon PLC
People's Bank
Standard Chartered Bank
State Bank of India
Hatton National Bank PLC
Company Secretary and Senior Manager Legal
Mrs. Sagarika Weeraparackrama (Attorney-at-Law) 148, Maligawa Road, Borupana, Ratmalana Telephone: +94 117 800 200 Ext: 604
Registrars
Messrs. P W Corporate Secretarial (Pvt) Ltd No. 3/17, Kynsey Road, Colombo 08 Telephone: +94 114 897 711/ +94 114 640 360-3 Fax: +94 114 740 588
Investor Relations
Mrs. Niloni Boteju - Financial Controller 148, Maligawa Road, Borupana, Ratmalana Telephone: +94 117 800 200 Ext: 615
Legal Advisors
Messrs. FJ&G de Saram
216, De Saram Place, Colombo 10 Telephone: +94 114 718 200
2 | Annual Report 2021/2022 |
Dear Shareholders,
On behalf of the Board of Directors, I extend a warm welcome to you all to the 67th Annual General Meeting of PGP Glass Ceylon PLC (PGP) and share with you the achievements and progress we have made during the past year and the future prospects.
We are witnessing an unprecedented economic turmoil in the country wherein we are struggling for the most basic and essential needs of our daily lives, leave aside running a manufacturing organization.
For nearly two years, the world has been struggling with Covid -19 pandemic infecting millions and bringing economic activity to a near standstill with countries imposing travel restrictions and lockdowns. We also experienced over 80 days of lockdown in Sri Lanka in the first half of the year 2021-22. In such difficult times of turmoil and unpredictable scenario, we have been able sustain the financial performance of the organization due to the commitment and dedication of our people.
Our industry being a continuous process industry needs timely availability of its input materials and uninterrupted supply of energy which includes Furnace Oil, LP Gas, Diesel and electricity. Energy availability has been the biggest challenge for sustaining our operations. We have been on tenterhooks for days on end and have been forced to use substandard sources of energy such as Bunker oil which will have an adverse impact on our furnace life.
PGP Glass Ceylon PLC
CHAIRMAN'S Statement
We are facing unprecedented runaway inflation across the board. The energy prices have increased over 300% due to rupee devaluation, global inflation and price correction. due to the Russia Ukraine conflict. This has directly affected the processing cost and availability of all raw materials and packing materials which has significant impact on the cost of glass bottle production.
All raw materials, packaging materials prices increased by over 100%. In such a situation, ensuring 100% capacity utilization remains a huge challenge and we have been often forced to decrease the draw on the furnace.
We have been compelled to take multiple price increases in both domestic and export markets in order to partially recoup the exceptional cost inflation. Most importantly, we have ensured the continuous supply of glass containers for all domestic food, pharma & beverage industry as they depends 100% on our manufacturing facility for their glass packaging needs.
Our highest priority continues to be to grow the export markets in order to improve the foreign exchange earnings both for the company as well as for the country which is the need of the moment. We have been addressing new markets and new product launches in premium specialty segments in order to improve substantially our profitability too.
Despite the challenging operating environment, your company has delivered a steady performance and crossed a revenue milestone of Rs 10 Billion .PGP Ceylon reported a turnover of Rs. 10.229 Bn and profit after tax( PAT) of Rs 1.915 Bn as against Rs. 8.532 Bn and Rs. 1.096 Bn respectively in the previous year reflecting a y-o-y growth of 20% in revenue and 75% in PAT.
The Domestic sales during the year grew by 23% from Rs. 5.885 Bn in F21 to Rs7.270 Bn in F22 and the Export sales grew by 12% from Rs. 2.647 Bn in F21 to Rs. 2.959 Bn in F22.
We entered the new financial year of F22 with renewed hope and optimism. Unfortunately, Sri Lanka faces multiple challenges, which are beyond the COVID-19 pandemic. The local economy is hit hard by multiple concerns, fueled by depletion of foreign exchange reserve since Apr'22. The economic turmoil continues to create huge challenges and hurdles keeping the management team on its toes in trying to keep the manufacturing and sales operations going.
Annual Report 2021/2022 | 3 |
PGP Glass Ceylon PLC
CHAIRMAN'S Statement
LOOKING AHEAD
The Board of Directors declared a total dividend of 50% as two interim dividends of 25% each, amounting to Rs. 0.50 per share.
The current scenario is extremely uncertain, as we have virtually no visibility on energy supplies, rising energy prices, import restrictions & foreign exchange availability. Even for exports, the rising cost of production & higher ocean freights is challenging our competitiveness in the global markets.
We are working very closely with our customers, vendors, government authorities to ensure continuation of our production apart from taking care of our valuable and dedicated employees in this inflationary environment.
We have introduced digitalization solutions and hybrid work culture wherever possible to ensure unhampered working environment and customer service. We continue to make every effort to provide our customers with innovative and efficient solutions by offering new designs. Team PGP believes that we can face this situation with renewed
optimism and positivity.
We are committed to ensure uninterrupted supply of glass bottles to all our domestic customers and we believe that the country situation would gradually get back to normalcy. We will have to find unique ways to produce at higher efficiencies and lowest possible costs to remain competitive
and sustainable in this unpredictable environment.
As they say - nothing lasts forever, this too shall pass. We are confident that we will get through with resilience and emerge stronger both as a Company and the Country.
APPRECIATION
The performance of our company, during the year, could not be achieved without the untiring efforts, dedication and commitment of all our employees more so in these trying times. I take this opportunity to express my gratitude to them and their families for supporting these efforts. I also thank our valued customers for their unflinching patronage and support.
I also wish to convey my gratitude to the Board of Directors, for their valuable contribution and guidance during the past year. I also appreciate the leadership & management team for their valuable contribution during the financial year. I would fail in my duty if I do not thank our shareholders, for the confidence reposed in us.
I also wish to thank PGP Glass Corporate Team from India for the help and cooperation extended in managerial and operational aspects at all times to the operations here in Sri Lanka.
I take this opportunity to thank the various departments of the Government of Sri Lanka, Board of Investment, Ceylon Petroleum Corporation, Ceylon electricity Board, Litro Banks, other institutions, all vendors and clients that extended assistance to PGP Glass Ceylon.
I thank you for your continued faith in us over the past years. We look forward to your support in the coming years too.
I would like to reiterate that our Company's path to excellence is deep rooted, which drives us towards creating long term value for all our stakeholders.
Vijay Shah
Chairman
10th May 2022
4 | Annual Report 2021/2022 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
PGP Glass Ceylon plc published this content on 08 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 July 2022 11:33:05 UTC.