Statement of Directors Responsibility

The responsibility of the Directors in relation to the Financial Statements of the Company and the Group prepared in compliance and conformity with the requirements of the following rules, regulations and guidelines is set out in
this Statement:

• Companies Act No. 07 of 2007
• Finance Business Act No. 42 of 2011
• Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995
• Listing Rules of the Colombo Stock Exchange
• Code of Best Practice on Corporate Governance issued jointly by The Institute of Chartered Accountants of
  Sri Lanka and the Securities and Exchange Commission of Sri Lanka, and
• Directions, Rules, Determinations, Notices and Guidelines issued under the Finance Business Act No. 42 of 2011 by the Department of Supervision of Non-Bank Financial Institutions of Central Bank of Sri Lanka

In terms of the Companies Act No. 07 of 2007, the Directors of the Company are responsible for ensuring that the Company and the Group keep proper books of accounts and prepare Financial Statements that give a true and fair view of the state of affairs of the Company and the Group as at the end of each financial year and of the Statement of Income of the Company and the Group for each financial year and place them before General Meeting. The Financial Statements comprise the Statement of Financial Position, Statement of Comprehensive Income, Income Statement, Statement of Changes in Equity, Cash Flow Statement and the Notes to the Financial Statements.

In preparing these Financial Statements the Directors are required to ensure that the appropriate accounting policies have been selected and applied in a consistent manner and any material variances if any have been disclosed and explained, Judgments and estimates have been made which are reasonable and prudent and all applicable standards as relevant have been followed.

The Directors have taken reasonable measures to safeguard the assets of the Company and the Group and to prevent and detect frauds and other irregularities. Accordingly, the Directors have taken steps to establish appropriate systems of internal controls comprising of internal audit, checks, risk assessment tests and financial and other controls to mitigate, prevent and detect fraud and other irregularities.

The Board of Directors provided the Statement of Solvency to the Auditors and obtained Certificates of Solvency from the Auditors in respect of dividends paid and payable (Proposed) conforming to the Section 57 of the Companies Act No. 07 of 2007.

Further, The Board of Directors wishes to confirm that the Company has met requirements under the Section 07 of the Continuing Listing Requirements of the Listing Rules of the Colombo Stock Exchange where applicable.

The Board of Directors also wishes to confirm that, as required by the Sections 166 (1) and 167 (1) of the Companies Act, they have prepared this Annual Report in time and ensured that a copy thereof is sent to every shareholder of the Company, who has expressed desire to receive a hard copy or to other shareholders a soft copy each in a CD containing the Annual Report within the stipulated period of time as required by the Rule No. 7.5 (a) and (b) on Continuing Listing Requirements of the Listing Rules of the Colombo Stock Exchange. The Directors also wish to confirm that all shareholders in each category have been treated equitably in accordance with the original terms of issue.

The Company’s External Auditors Messrs KPMG were reappointed in terms of the Companies Act No. 07 of 2007 and in accordance with a resolution passed at the last Annual General Meeting. They carried out reviews, and sample checks on the system of internal controls as they considered required and appropriate and necessary for expressing an opinion on the Financial Statements and internal controls. They were provided with every opportunity to undertake the inspections they considered appropriate.

The Directors confirm that to the best of their knowledge, all taxes, duties and levies payable by the Company and its Subsidiary, all contributions, levies and taxes payable on behalf of and in respect of the employees of the Company and its Subsidiary, and all other known statutory dues as were due and payable by the Company and its Subsidiaries as at the reporting date have been paid or, where relevant, provided.

The Directors further confirm that after considering the financial position, operating conditions, regulatory and other factors, they have reasonable expectation that the Company and its Subsidiary have acquired adequate resources to continue in operation for the foreseeable future. Accordingly we continue to adopt the going concern basis in preparing the Financial Statements.

By Order of the Board,

(sgd.)	(sgd.)
D H J Gunawardena Chairman	W P C M Nanayakkara Managing Director

2nd June 2014

Colombo