Damro Exchange

The helix or spiral is a symbol of resilience, pliancy and endurance; the
ability to survive adversity—to thrive even in a difficult environment.

The spiral shape can be seen throughout the natural world, in the
magnificence of the galaxies, in weather patterns and in the DNA of
every living organism.
It can also be found in the shells of nautilus and snails, in animal horns
and human fingerprints and in the structure of countless flowers and
ferns. In fact, when a plant encounters an obstacle, it often twists itself
into a helix, using the flexibility and strength of its shape to surmount all
barriers and keep progressing onward and upward.
The
Construct of
Resilience
Access Engineering has braved through tough challenges wrought by a
turbulent and an unprecedented business environment, where we have
strategically navigated the company during this challenging time to move
forward positively and looking forward to sustaining our future business.
We swiftly embraced the volatilities to understand and adapt a multitude of

strategies which proved the resilience of our team.
As we stride purposefully into the future, our success hinges on our strong
fundamentals to build a sustainable business for our stakeholders.
At Access Engineering, we construct resilience.

2 Access Engineering PLC
CONTENTS
01 This is Access Engineering 02 Strategy
About Access Engineering 4 Operating Environment 22

About this Report 6 SWOT Analysis 25
Milestones 8 PEST Analysis 26
Group Structure 10 Stakeholder Engagement 29
Financial Highlights 12
Materiality 36
Non-Financial Highlights 13
Strategic Direction 42
Chairman’s Message 14
Our Value Creation Model 44
Joint Statement from the Executive Vice Chairman
Our Business Portfolio 46
and the Managing Director 16
Spread of Operations in Sri Lanka During 2022/23 48
Key Projects 50
Roads and Highways 50

Bridges and Flyovers 52
Buildings and Piling 60
Telecommunications 68
Group Performance Review 70

Construction 70
Construction related Material 73
Property 74
Automobile 80
04 Stewardship
Board of Directors 130

Corporate Management Team 134
Corporate Governance 138
Audit Committee Report 162
Related Party Transactions Review Committee Report 164
Remuneration Committee Report 165
14
Investment and Subsidiary Performance
Monitoring Committee Report 166
Chairman’s Strategic Planning Committee Report

Managing Key Risks
167
168
Message
Annual Report 2022/23 3
03 Management Discussion & Analysis

Capital Management Review 84
Financial Capital 84
Manufactured Capital 89
Intellectual Capital 93
Human Capital 98
Social and Relationship Capital 106
Natural capital 115
GRI Content Index 123

Independent Assurance Report to Access Engineering PLC 126
16 Joint Statement from

the Executive Vice
Chairman and the
Managing Director
05 Financial Reports 06 Annexes
Operating Structure 278

Annual Report of the Board of Directors
on the Affairs of the Company 182 Ten-year Summary 279
Statement of Directors’ Responsibility 188
Directors of Group Companies 280
Notice of Meeting 281
Directors’ Statement on Internal Control 189
Form of Proxy 283
Independent Auditors’ Report 190
Corporate Information Inner Back Cover
Statement of Profit or Loss and
Other Comprehensive Income 196
Statement of Financial Position 197
Statement of Changes in Equity 198
Statement of Cash Flows 199
Index to the Financial Statements 201
Notes to the Financial Statements 202
ABOUT ACCESS ENGINEERING GRI 2-6
Since our inception, Access

Engineering PLC (AEL) has
extensively contributed to
the construction landscape
in Sri Lanka through
Vision
numerous completed To be the foremost
construction projects. Sri Lankan business
We collaborate across enterprise in value
disciplines and industries engineering.
like energy and resources,
environmental and water
to bring highly diversified
projects to life.
We have set ourselves apart
Mission
from the competition by way
of innovative,
one-of-a-kind solutions
combined with our end-to-
end project and engineering
know-how. Recently, we also To meet the challenges in
diversified into the supply of the development of multi-
warehousing logistics space
with the logistics parks in sector civil engineering
Ekala and Kimbulapitiya. projects, providing
Our strength, knowledge,
innovative solutions whilst
and relationships, coupled developing long-term
with our
world-class expertise,
progressive relationships
have allowed us to provide with all our stakeholders.
advanced, yet personalised
engineering solutions to our
stakeholders.
GRI 2-6
Key Facts
Ì Established in 2001 concrete batching plants along with the • ISO 9001:2015
Ì Premier civil engineering firm in Sri Lanka latest machinery • ISO 14001: 2015
Ì Backward and Forward integrated, Ì Has the highest CIDA grading across • ISO 45001:2018
EPC (Engineering, Procurement and several disciplines of civil engineering
Ì A signatory to the UN Global Compact
Construction) Contractor Ì Accreditations for quality, environmental,
and health and safety management Ì A TRACE member in good standing
Ì An island wide network of quarries,
crusher plants, asphalt plants, and systems
Project Portfolio “Access Engineering Promise”
Over the years, our portfolio Ì Water treatment plants and To maintain the highest professional standards
includes and is not limited to: water supply projects from planning and design to execution.
Ì Building and Piling Ì Land drainage and
irrigation schemes
Ì Bridges and flyovers
Ì Power infrastructure
Ì Roads and highways Recognition
Ì Telecommunication
Ì Harbours and marine works
infrastructure projects Recognised as a “Major and Specialist contractor”
Ì Airports by the National Construction Association of Sri
Lanka.
Subsidiaries and Joint Ventures
Wholly owned subsidiaries: Joint ventures:

Ì Access Realties (Private) Limited Ì AEL has a 60% joint venture in Blue Star Realties (Private)
Ì Access Realties 2 (Private) Limited Limited
Ì WUS Logistics (Private) Limited Ì Our associate Company, ZPMC Lanka Company (Private)
Limited, in which AEL has a 30% stake is a joint venture
Ì Access Logistics Park Ekala (Private) Limited
with Shanghai Zhenhua Heavy Industries Company Limited
Ì Access Logistics (Private) Limited (ZPMC) of China, the world’s largest container handling
Ì AEL East Africa Limited equipment manufacturer
Ì ARL Elevate (Private) Limited
Other subsidiaries: Ì Harbour Village (Private) Limited (66.67% owned)

Ì Sathosa Motors PLC (84.42% owned) Ì Lanka AAC (Private) Limited (50% owned)
Ì Access Projects (Private) Limited (80% owned) Ì Access Motors (Private) Limited
(42.21% owned)
Ì The Company also has made an investment in Access – CHEC JV (Private) Limited
ABOUT THIS REPORT GRI 2-3,2-24
Access Engineering PLC (hereinafter referred

to as “AEL” or “Company”) prepares and
publishes its Annual Report to inform
stakeholders of the Company’s performance
and prospects for a given financial year.
For the past nine years, AEL published

an Integrated Annual Report. The latest
report, which marks the tenth edition of the
Company’s integrated reporting journey,
covers the financial year 01 April 2022 to 31
March 2023 and coincides with the Company’s
financial reporting cycle.
This report and all other previous integrated

reports including the most recent past report
for FY 2021/22 are available for viewing and
downloading on our corporate website -
https://www.accessengsl.com
There are no restatements pertaining to any

of these previous reports.
Scope and Boundary

The overall boundary of this report Materiality and the Precautionary Principle
includes both Access Engineering PLC
and its subsidiaries as listed out on page 5 The principle of Materiality has been used to determine the sustainability information
(collectively referred to as the “Group”). The included in this report. Materiality is a concept promoted by The GRI (Global Reporting
report covers the financial aspects of the Initiative) Standards for the purpose of presenting non-financial (sustainability) information
entire Group while non-financial information that may be of interest to stakeholders.
contained herein relate to only Access
Engineering PLC abbreviated as AEL. The Materiality section on page 36 describes how Material matters are identified, assessed
and integrated in the Company’s strategy in order to generate value for the organisation and
In addition, the report also contains information deliver positive outcomes for stakeholders.
pertaining to AEL’s strategy, business model,
risk, governance, and sustainability initiatives It should be noted that, in the case of social and environmental topics, the Company also
that may be of interest to stakeholders of the applies the precautionary principle. This is done with a view to addressing the impact
Company and the Group. on society and the environment caused by the Company’s operations and to facilitate
appropriate corrective action to mitigate any potential negative impacts.
GRI 2-3,2-5
Reporting Frameworks
Financial Governance, Compliance Sustainability

Reporting and Risk Reporting Reporting
Ì Sri Lanka Accounting Standards Ì Code of Best Practice on Corporate Ì International Integrated Reporting
issued by the Institute of Chartered Governance jointly issued by the Framework (IIRC)
Accountants of Sri Lanka Institute of Chartered Accountants
Ì “A Preparer’s Guide to Integrated
of Sri Lanka and the Securities and
Ì Sri Lanka Accounting Standards - Reporting” issued by The Institute of
Exchange Commission of Sri Lanka
SLFRS and LKAS Chartered Accountants of Sri Lanka
Ì Listing Rules of the Colombo Stock
Ì The Companies Act No. 7 of 2007 Ì Consolidated Set of Global
Exchange
Reporting Initiative Sustainability
Ì Statement of Alternative Treatment
Ì Securities and Exchange Reporting Standards Guidelines
(SoAT) issued by the Institute of
Commission Regulations
Chartered Accountants of Sri Lanka Ì UNCG 10 Principles
where applicable
Ì United Nations Sustainable
Development Goals (SDG’s)
Assurance Forward-Looking Statements

Feedback and Queries
We have adopted the combined assurance This report contains certain forward-looking
approach where information obtained from statements with regard to Access Engineering The Company welcomes feedback
both internal and external sources have been PLC’s, financial position, strategic objectives and queries regarding this report and
verified by the Company’s Internal Audit and growth prospects. Such statements by encourages readers to direct their
team and further validated by the Board their very nature, are often associated with risk responses to;
Audit Committee to confirm accuracy and and uncertainty as they relate to events that
completeness. may or may not occur in the future. Therefore, Rohana Fernando
readers are cautioned that actual results or Managing Director,
Messrs. KPMG, Chartered Accountants have outcomes may differ materially from what Access Engineering PLC,
provided external assurances regarding the was expressed or implied by forward-looking 12th Floor, Access Tower,
Financial Statements and other statutory statements. Union Place,
financial disclosures of the Company and the Colombo 02
Group.
Disclaimer - The Company considers all Phone : +94 11 760 6606
forward-looking statements contained Email : rohana@accessengsl.com
Messrs. KPMG, Chartered Accountants have
herein to be applicable only as at the date
also independently reviewed the sustainability
of publication of this Annual Report and
performance of Access Engineering PLC
as such, does not accept any obligation to
and provided a reasonable assurance on the
revise or in any way update information
financial highlights on page 12 and limited
expressed in such forward-looking
assurance on the non-financial highlights and
statements.
indicators on page 13 and pages 84 to 122
respectively. Their report is on page 126 of this
Annual Report. Board Responsibility Statement
The Board of Directors of Access Engineering
PLC takes full responsibility for the authenticity
and transparency of this Integrated Annual
Report. The Board assures all stakeholders that
the report is an accurate representation of the
performance and prospects of the Company
and Group for the FY 2022/23.
MILESTONES
The key milestones achieved during the reporting period

exemplify Access Engineering PLC’s ability to persevere
against all odds to honour its commitments to clients and
other stakeholders.
2022
May September November December
Completion of design, Ì Completion of piling Ì Commencement of the Ì Commencement of
construction & financing of works of the proposed supply of boulder and piling work for the
housing project at 601 Watta, 350 MW Combined rubbles of the proposed Proposed Container
Cyril C. Perera Mawatha, Cycle Power Plant at facilities for container Freight Station at
Bluemendhal Kerawalapitiya terminal at west container Kerawalapitiya
terminal in the port of
Ì Obtaining of the
Colombo
Condominium
Management Authority Ì Completion of phase I of the
(CMA) certificate for ‘Introduction of Fibre Optic
the common amenities Monitoring Technology to
and elements of Capital Sri Lanka’ in partnership with
Heights Rajagiriya the University of Moratuwa
which was supported by
the University of Cambridge
and the University of Oxford.
2023
January February March
Ì Commencement of construction Ì Ranked 8th among top 100 listed entities Ì Completion of construction of Multi
of Diaphragm Wall for Proposed in Sri Lanka in the ‘2022 Transparency in Storey Public Car Parks at Union Place
Star Class Hotel at 594, Galle Road, Corporate Reporting’ (TRAC) Assessment
Colombo 04 conducted by the Transparency
Ì Commencement of the supply International Sri Lanka (TISL)
of ready-mix concrete for the
construction of West Container
Terminal including marine and allied
services at the port of Colombo
Ì Completion of design and

construction of five-Foot Bridges in
Nairobi, Kenya
PB TRANSPARENCY INTERNATIONAL SRI LANKA TRANSPARENCY IN CORPORATE REPORTING 2022 1
TRANSPARENCY IN
CORPORATE REPORTING
2022 ASSESSING THE TOP 100 PUBLIC LIMITED
COMPANIES IN SRI LANKA
GROUP STRUCTURE GRI 207-4
BUSINESS SEGMENT OPERATING ENTITIES
CONSTRUCTION AND Access Engineering PLC
CONSTRUCTION
AEL East Africa Limited
RELATED
MATERIALS Access Projects (Private) Limited
Lanka AAC (Private) Limited
Access – CHEC JV (Private) Limited
Access Realties (Private) Limited

PROPERTY
Access Realties 2 (Private) Limited
Harbour Village (Private) Limited
Blue Star Realties (Private) Limited
W U S Logistics (Private) Limited
Access Logistics Park Ekala (Private) Limited
Access Logistics (Private) Limited

AUTOMOBILE
ARL Elevate (Private) Limited
Sathosa Motors PLC
Access Motors (Private) Limited

MECHANICAL
ENGINEERING
ZPMC Lanka Company (Private) Limited

EFFECTIVE OWNERSHIP PRINCIPLE ACTIVITY MARKETS SERVED COUNTRY OF INCORPORATION
Construction and supply of construction-related services

Parent Sri Lanka Sri Lanka
and materials
100% Construction Kenya Kenya
Construction and supply of construction-related services

80% Sri Lanka Sri Lanka
and materials
50% Supply of construction-related materials Sri Lanka Sri Lanka
51% Construction Sri Lanka Sri Lanka
100% Commercial property development for lease and rental Sri Lanka Sri Lanka
Residential and commercial property development

66.67% (In partnership with China Harbour Engineering Company Sri Lanka Sri Lanka
Limited)
60% Residential property development Sri Lanka Sri Lanka
Commercial property development for lease and rental

100% Sri Lanka Sri Lanka
and provision of support facilities for Access Towers
84.42% Authorized distributor for ISUZU in Sri Lanka and Maldives Sri Lanka & Maldives Sri Lanka
Authorized distributor for Jaguar and Land Rover in

42.21%* Sri Lanka Sri Lanka
Sri Lanka
Commission, repair, and maintenance of container

30% Sri Lanka & Overseas Sri Lanka
handling equipment (in partnership with ZPMC of China)
*Effective Holding
FINANCIAL HIGHLIGHTS
2022/23 2021/22 Change %

Group Company Group Company Group Company
Earnings highlights and ratios
Revenue 20,565 17,556 39,630 33,337 (48%) (47%)
Gross profit 5,859 4,186 5,312 3,663 10% 14%
EBITDA 10,014 6,505 8,315 4,850 20% 34%
EBIT 8,816 6,002 5,784 4,057 52% 48%
Earnings before tax 4,377 1,919 4,613 2,988 (5%) (36%)
Profit attributable to equity holders 2,482 1,444 5,110 2,580 (51%) (44%)
Dividend 750 750 750 750 - -
Earnings per share 2.48 1.44 5.11 2.58 (51%) (44%)
Dividend per share 0.75 0.75 0.75 0.75 - -
Dividend payout 30 52 15 29 106% 79%
Statement of financial position

Highlights and ratios
Total assets 79,941 54,552 81,847 60,833 (2%) (10%)
Stated capital 9,000 9,000 9,000 9,000 - -
Retained earnings 19,741 15,162 18,610 15,072 6% 1%
Total equity/shareholders’ funds 31,972 24,492 30,647 24,323 4% 1%
Total liabilities 47,969 30,061 51,200 36,510 (6%) (18%)
Current assets 35,529 21,094 48,281 32,522 (26%) (35%)
Current liabilities 31,736 16,688 29,780 17,440 7% (4%)
Net asset per share 29.56 24.49 28.19 24.32 5% 1%
Investor highlights and ratios
Price per share - 14.2 - 15.0 (5%)
PE ratio - 9.8 - 5.8 69%
Gross profit margin 28.49% 23.84% 13.40% 10.99% 113% 117%
Net profit margin 11.85% 8.23% 12.95% 7.74% (8%) 6%
Return on equity 7.62% 5.90% 16.74% 10.61% (54%) (44%)
Debt/Total assets 20.31% 27.94% 28.16% 35.77% (28%) (22%)
Debt/Equity 50.79% 62.22% 75.20% 89.47% (32%) (30%)
Interest coverage ratio 2.01 1.49 5.07 3.96 (60%) (62%)
Current asset ratio 1.12 1.26 1.62 1.86 (31%) (32%)
Quick asset ratio 0.62 1.09 1.13 1.64 (45%) (33%)

NON-FINANCIAL HIGHLIGHTS
Manufactured Capital Awards & Recognition

Ì Investment in heavy machinery and equipment fleet – Ì Ranked 8th among the
LKR 58 Mn. top 100 listed entities for
Ì Investment in production plants– LKR 211 Mn. Transparency in Corporate
Reporting by Transparency
Ì Investment in IT infrastructure – LKR 23 Mn. International Sri Lanka (TISL)
Ì Gold Award in the

Construction Sector at the
57th Annual Report Awards
organised by the Institute of
Intellectual Capital Chartered Accountants of Sri
Lanka
Ì Highest CIDA Accreditations for the most number of
engineering disciplines
Ì Research on the use of Fibre optic monitoring Ì Winner of the Best Presented Annual Report Awards in
technology in Sri Lanka the Infrastructure sector at the South Asian Federation of
Accountants (SAFA) Awards
Ì Received a total 5 performance awards from the Construction

Industry Development Authority (CIDA) in retrospect for the
years 2020 and 2021
Human Capital
Ì ‘Great Place to Work’ certified for March 2022 – March
2023 PROJECT HIGHLIGHTS
Ì Total number of training hours – 708.25 hours
Ì Staff and labourers – 1,094
Social & Relationship Capital

Ì Registered suppliers – 1,444
Ì Research Agreement with the University or Moratuwa
supported by the Cambridge and Oxford Universities of
UK
Ì 9,966 Shareholders Substantial Completion of the Construction Work of Export
Green Field Facility at Ekala (EGF2)
Natural Capital
Ì Total water line consumed – 70,968 Units
Ì Bottled water consumed – 3,797,475 Units
Ì Energy consumed – 114,118,521.20 Joules
Completion of 86% of The Stadiumgama Housing Project

CHAIRMAN’S MESSAGE
Dear Stakeholders,
I expect our cashflows As I am sure you are aware, since going public
11 years ago our company has been known
As an entrepreneur for the past three decades,
to receive a further of which 22+ years have been as the Chairman to have one of the strongest balance sheets
of Access Engineering, I have witnessed the Sri among listed entities in Sri Lanka underscored
boost in the coming Lankan economy at a crossroads on numerous by below average gearing. While our cash
months, especially occasions. I do believe however this past year flows took a hit in the current financial year
owing to the temporary disruption in several
will forever be etched in my memory as the
with the scheduled most catastrophic period in all my years as a large projects, I am happy to announce that
we have succeeded in recovering most of the
conclusion and businessman. In 2022, Sri Lanka slipped into
its deepest-ever recession in over seventy five government debt as at the post balance sheet
commencement years post independence. A confluence of date, thereby generating the required cash
flow to support our project pipeline. I expect
factors, including the buildup of systemic issues
of commercial due to weak policy fundamentals along with our cashflows to receive a further boost in the
coming months, especially with the scheduled
operations of Access implications from post-pandemic challenges,
globally, weighed down on the already fragile conclusion and commencement of commercial
Logistics Park Ekala economy. Sri Lanka by its own admission operations of Access Logistics Park Ekala in the
declaring inability to honour sovereign debt FY 23/24 and the completion of Marina Square
in the FY 23/24 and in May 2022 only served to further exacerbate Mix Development in the FY 25/26. Meanwhile
in seeking to restore our low gearing position
the completion of the situation, leaving all sectors facing grim
prospects in the near term. at least by the end of the financial year 2024,
Marina Square Mix we will explore new investment opportunities
Being in the construction industry, challenges through PPP’s and BOT’s to further augment our
Development in the are the norm and we at Access Engineering liquidity position in the short to medium term.
FY 25/26. Meanwhile PLC have become quite adept at proving our

resilience in the face of such adversity. The fact As the Founder Chairman, I foresee a new era
in seeking to restore that we have been able to retain our status of expansion and diversification for the Access
quo as the leading construction company in Engineering Group in the years ahead. That said,
our low gearing Sri Lanka for the past two decades, is indeed it is imperative that we remain agile in order
position at least a testament to the resilience of our business

model and the robustness of our core strategies.
to respond to whatever policy changes the
government makes in terms of incentives and
by the end of the tax structures that will no doubt influence the
The FY 2022/23 provided another excellent future prospects of our business.
financial year 2024, opportunity for Access Engineering to
we will explore showcase its resilience. Amidst extreme
pressure experienced during the year, we
Me together with my Board is committed to
ensure a corruption free environment in all
new investment put every aspect of our business under the our dealings and we adopt a zero tolerance
microscope as we sought to revisit our priorities policy in this regard. As a first generation Sri
opportunities vis-a-vis stakeholder deliverables as well as long Lankan Entrepreneur, I am very confident that
through PPP’s and term corporate aspirations. Having made some in time, the Country too will overcome the
present challenges and work towards restoring
tough calls to consolidate our core strengths,
BOT’s to further while pursuing scalable opportunities where its credibility in the eyes of the world, thereby
possible, I am pleased to say that my Board regaining its rightful place as a strategic business
augment our liquidity and the Corporate Management have done hub not just in the Indian Sub continent, but
position in the short remarkably well to strengthen our defenses across the wider Asian region as well.
and enable the Group to fight the relentless
to medium term headwinds that continue even to this day. In
fact, I believe the hard, yet necessary decisions
we made over the past twelve months have
been the key catalysts that helped us to
Sumal Perera
navigate the ongoing hurricane.
Chairman
29 August 2023
Sumal Perera
Chairman
JOINT STATEMENT FROM THE

EXECUTIVE VICE CHAIRMAN AND
THE MANAGING DIRECTOR
With most of our resources, injury, global rating agencies proceeded to Operational Focus
substantially downgrade Sri Lanka's sovereign
including people, machinery The construction industry was among the worst
rating. As reported by Fitch Ratings, the long-
and equipment being left hit by the turbulence, mainly as a consequence
term issuer default rating has remained at
of the government decision to curtail public
idle, we looked to streamline ‘Restricted Default’ from May 2022 to date. S&P
spending on infrastructure projects as well
our operations in order Global Ratings too has affirmed its long-term
as the suspension of the international debt
to reduce our fixed cost and short-term foreign currency sovereign
repayments which influenced bi lateral and
credit ratings on Sri Lanka at ‘Selective Default’
as much as possible. At (SD). Sri Lanka’s woes progressively further
multilateral funding agencies to reconsider
disbursements towards ongoing projects.
the same time exploring worsened amidst widespread social unrest and
Stemming from these issues, many of our
opportunities to mobilise the public outcry for a regime change.
ongoing projects got disrupted by mid-2022.
our resources productively, Our production plants, primarily asphalt plants,
The sharp economic contraction was only to
we proceeded to deploy also experienced a drastic reduction in demand.
be expected with GDP for 2022 recording a
many of our engineering negative growth of 7.8% in real terms. Primary
With most of our resources, including people,
and technical teams across economic indicators such as the exchange
machinery and equipment being left idle, we
our ongoing development rate, inflation and interest rates, all showed a
looked to streamline our operations in order to
projects including the never-before-seen level of instability. Starting
reduce our fixed cost as much as possible. At the
from late March 2022, the Sri Lankan Rupee
Export Greenfield Facility experienced its steepest-ever depreciation
same time exploring opportunities to mobilise
(EGF) integrated logistics our resources productively, we proceeded to
against all major global currencies including the
deploy many of our engineering and technical
park and the public car park USD, GBP, CAD, AUD, etc… As a result, the cost of
teams across our ongoing development
development project adjacent all imports increased by at least 2-3 fold in turn
projects including the Export Greenfield Facility
fuelling domestic inflationary conditions. Sri
to our head office (EGF) integrated logistics park and the public
Lanka experienced month on month inflation
car park development project adjacent to our
reaching double digits. Meanwhile, in a bid to
head office. Similarly, our concrete batching
prevent hyper – inflation, the Central Bank of Sri
plants were kept operational in order to
Macroeconomic Update Lanka raised policy rates on several occasions
support the construction of our Marina Square
The year 2022 was unlike any other in recent throughout 2022, a trend that saw both the
mixed development project, which continued
memory. In fact it will no doubt stand out as lending and deposit rates of commercial Banks
throughout the year, albeit at a slower pace
a watershed moment in Sri Lanka’s modern spiraling sharply upward to reach record highs.
than originally planned. Interestingly, we were
history. The Sri Lankan economy started 2022 also able to make good progress in certain
seemingly on the rebound after the pandemic The appointment of a new government in mid-
development projects, particularly in the port
led downturn, raising hopes of a gradual 2022 saw an end to the social unrest and the start
sector where continuation of work was possible.
economic recovery over time. of talks with the International Monetary Fund
(IMF) to negotiate a bail-out package under an
We are pleased to note that our quarry
Regrettably however these expectations were Extended Fund Facility worth 2.9 Bn USD. In the
operations resumed in early 2023 after
short lived as the Country plunged into its meantime, the government made some tough
Access Engineering PLC was awarded work
worst economic crisis in 75 years. The crisis, a calls to rein in expenditure, especially to curtail
at the Colombo West International Terminals
culmination of weak economic fundamentals public expenditure including the spending
(CWIT) at the Port of Colombo. The use of
and poor debt management policies that led on economic and social infrastructure, while
most of our primary raw materials including
to massive debt distress which cascaded into import restrictions that were in place at the
reinforcement, cement, bitumen, were further
the unprecedented erosion of foreign reserves beginning of the year were further tightened,
optimised through our ongoing work and
that left the Country with insufficient resources leaving businesses unable to meet their import
prudent management. Maintaining our
to meet basic needs. Amidst this backdrop, Sri requirements of basic input material.
heavy equipment and machinery fleet at
Lanka declared the suspension of all overseas optimum levels, despite not having much
debt service commitments with effect from April At the same time taking a multi-pronged
work, was another key priority for us. To that
2022. A decision was also taken to temporarily approach to boost its revenue, the government
end, we continued with all routine servicing
halt all payments to both international and began exploring the possibility of revising its tax
and periodic maintenance to safeguard their
domestic bond holders. Adding insult to thresholds in an effort to expand the tax base
operational status.
while simultaneously working to increase both
direct and indirect taxes.
Rohana Fernando J C Joshua

Managing Director Executive Vice Chairman

EXECUTIVE VICE CHAIRMAN AND THE
MANAGING DIRECTOR
Towards the latter part industry by way of issuing treasury bonds. Most tensioning in the construction of viaducts of
of our receivables from the Road Development the Central Expressway Project (Section 3), the
of the financial year we Authority (RDA) and the Urban Development application of Building Information Modelling
also benefitted from the Authority (UDA) were cleared through the (BIM) in the construction work of high rise
government’s decision to issuance of bonds. buildings and the use of pre – cast structures
settle the outstanding to the in the road and drainage works of our very own
Supply Chain Impacts Export Greenfield Warehousing project are
construction industry by way
The economic crisis in the Country raised notable.
of issuing treasury bonds.
significant challenges across our supply chain,
Most of our receivables often causing unprecedented disruptions that This year saw the unveiling of Thin Asphalt
from the Road Development adversely affected the continuity of operations. Surfacing (TAS) which was trailed at 3 separate
Authority (RDA) and the In light of the severe depletion of the Country’s sites. We are also in the initial stages of testing
foreign reserves, all major Banks rushed to the use of plastic based asphalt which will
Urban Development Authority
restrict the opening of Letters of Credit (LCs) significantly reduce the use of bitumen.
(UDA) was cleared through which made importing raw material an arduous
the issuance of bonds task. To add to this, the cost of major imported We achieved another important milestone in
raw materials such as steel and cement our innovation roadmap with the ‘Introduction
increased significantly as the value of the Rupee of Fibre Optic Monitoring Technology to Sri
Funding Implications Lanka’ - a joint project by Access Engineering
tumbled against all major global currencies.
From a project perspective, a majority of our PLC and the University of Moratuwa supported
infrastructure development projects are funded The day to day ecosystem was also further by the University of Cambridge and the
through bi–lateral / multi – lateral consortiums disrupted owing to fuel shortages and extended University of Oxford. As the sponsor of the
or by local banks, which meant we had to face power outages, often leading to a breakdown project, we were able to see fast track Phase 1 of
the harsh reality stemming from the economic in logistics networks that had a bearing on our the project which involved the compilation of a
crisis. These projects included the Kohuwela ability to access key raw materials such as sand research paper by the students of the University
flyover and the Getambe flyover. Similarly and cement as needed. of Moratuwa, under the topic “A Review on the
construction work undertaken by us in the Advances in Distributed Fibre Optic Sensing
Gampaha District under the ‘Integrated Roads’ People Management Strategy Technology for Structural Health Monitoring”.
network project was disrupted in the latter part We are indeed proud to note that the paper went
The sudden disruption to work on many of
of 2022. on to be published at the 12th International
our projects and production plants had a
Conference on Structural Engineering and
catastrophic impact on our people. Mindful
Thankfully however the Asian Infrastructure Construction Management – Lecture Notes in
of the pressure on our staff owing to the
Investment Bank (AIIB) funded Stadiumgama Civil Engineering. Further to this, the research
deepening crisis, we endeavoured to retain as
Housing Project continued without much paper was declared the runner-up at the Civil
many employees as possible by redeploying
hindrance. Work on the East Container Terminal Engineering Research Symposium 2022. Such
them through job rotations and other special
project also continued without interruption, recognition at an early stage of the project is
assignments. Despite these best efforts
thanks to the steady inflow of funds from the indeed very exciting and we are eager to see
however some of our people were left idling,
Sri Lanka Ports Authority (SLPA), while our how this technology will transform the field of
and we had no option but to reevaluate our
latest project for associated construction work structural health monitoring in the future.
stance as an employer. As a measure to curtail
at the West Container Terminal at the Port of
our expenditure and overheads we also had to
Colombo funded by the Adani Group of India Progress on the Project Pipeline
cut down on most of the planned training and
commenced in the early part of 2023. As mentioned previously, a number of ongoing
development work.
projects were disrupted due to the economic
Meanwhile excessive lending rates in 2022 Innovation Drive crisis including some of the work undertaken
forced a rethink of our internal funding strategy. for the Road Development Authority (RDA) and
In what is perhaps the only silver lining
Working proactively to manage our cash flows the Urban Development Authority (UDA).
to emerge as a result of the crisis, was our
while balancing the gearing position, we began
unyielding determination to innovate.
working with our partner banks/financial However work on several projects did continue
Rather than dampening our enthusiasm, the
institutions to restructure our loan portfolio in throughout the year, though for obvious
challenges we encountered this past year
order to manage our cash flow and minimise reasons, progress was slower than the expected
only served to stimulate our innovation drive.
the stress on the balance sheet. pace. Our mechanical workshop undertook
We continued to justify our position as the
and completed the fabrication and erection of
Towards the latter part of the financial year we leading innovator for our sector through the
several supporting structures on the 700,000
also benefitted from the government’s decision use of unconventional methods of construction
Sq. Ft. Export Greenfield (EGF) logistics facility
to settle the outstanding to the construction methodologies, among them the use post
in Ekala for CAMSO/Michelin. Installation,
testing and commissioning of the unique Fire works at the Colombo West International
Our 425,000 Sq. Ft. integrated
Detection and Protection System was also Terminal (CWIT) of the Port of Colombo, which
successfully concluded within the course of the once commissioned would be the largest and
logistics and warehousing
year. deepest container terminal in Sri Lanka. We were facility at Kimbulapitiya was
also awarded a contract for the construction of also occupied during the year.
Steady progress was made on the Stadiumgama a preschool and cultural centre in Colombo 05 Following the substantial
Housing Project, an AIIB funded initiative to for Shinnyo-en Lanka.
construct 1,000 housing units for the low-
completion of the integrated
income earners. With approximately 86% Performance of Other Business Segments logistics and warehousing
of the project completed by the end of the Construction Related Material facility in Ekala, we entered
financial year, we are confident of meeting the
While a significant demand contraction for
into a lease agreement with
handing-over deadline scheduled during the CAMSO/Michelin which
construction related material was observed right
next financial year.
from the start of the economic crisis, we took a allows us to start commercial
proactive approach to ensure our production operations in 23/24
Construction work of the public car park facility
plants and quarries were kept operational in
at Union Place made good progress during the
order to supply required construction material
year where the multi-level car parking facility
for several ongoing projects. It is noteworthy that work on the Marina Square
was completed. The contract was awarded to
Uptown Colombo progressed at a slower pace
Access Engineering PLC on a DBFOT (Design-
Our Meerigama and Thebuwa Quarries were in FY 2022/23 owing to the challenges posed
Build-Finance-Operate-Transfer) basis and is
engaged in supplying core rock and aggregates by the 2022 economic crisis. Nonetheless, we
due to begin operations in 23/24.
to the Colombo West International Container were able to see completion of 5 standard
Terminal at the Port of Colombo and the East construction milestones by the end of the
Other notable projects that continued despite
Container Terminal of Port of Colombo Phase financial year.
challenges encountered in the current financial
II. We mobilised our concrete batching plants
year include, piling work on the proposed Automobile
within the Port premises to supply ready – mix
container freight station at Kerawalapitiya,
concrete for the construction of Colombo West With the vehicle import restrictions imposed
construction of the diaphragm wall for proposed
International Container Terminal at the Port of at the onset of the pandemic in 2020 in
star class hotel at Galle Road, Colombo 04 and
Colombo. Our ready-mix plant in Peliyagoda effect throughout 2022, the core business of
piling work of the proposed 350 MW combined
continued to supply the requirements for both Sathosa Motors PLC and Access Motors
cycle power plant at Kerawalapitiya.
the Marina Square Uptown Colombo mix remained under pressure. Meanwhile, workshop
development. operations too, were adversely affected by
Construction of Central Expressway (Section 3)
from Pothuhera to Galagedara slowed down the economic crisis due to fuel and energy
Property shortages, while the demand for spare parts
considerably due to the scarcity of material,
fuel and explosives as a direct result of the 2022 Our property segment made good progress declined visibly as costs skyrocketed in tandem
economic crisis. We are pleased to note that the in the current financial year. Both our flagship with the LKR depreciation against the USD and
work is now continuing at a reasonable rate. commercial buildings, Access Tower I & II other major currencies. It is noteworthy that
experienced very high levels of occupancy despite these challenges both Sathosa Motors
It is gratifying to see our overseas project throughout the year. This offering was further PLC and Access Motors recorded a satisfactory
- construction of the T – Mall flyover and strengthened with the completion of the 285 car performance for FY 2022/23.
foot bridges in Kenya reaching a successful parks located adjacent to Access Towers 1 & 2.
Key Financial Highlights
completion ahead of schedule, which, together
with our partner, Centunion Espanola De Our 425,000 Sq. Ft. integrated logistics and In light of the staggering challenges we faced,
Coordinacion Tecnica Y Financiera, S.A. of Spain. warehousing facility at Kimbulapitiya was turnover recorded by the Group and Company
The completed project was handed over to the also occupied during the year. Following for FY 2022/23 declined to LKR 20.56 Bn and
Kenya National Highways Authority (KNHA) by the substantial completion of the integrated LKR 17.56 Bn respectively. The drop in Company
the end of the current financial year. logistics and warehousing facility in Ekala, we turnover was largely attributed to the lower
entered into a lease agreement with CAMSO/ turnover in the Construction business as well
Despite all the chaos unfolding around us, we Michelin which allows us to start commercial as the Construction-related Material segment.
were awarded some of the major construction operations in 23/24. Topline figures of the Construction business
works in the port sector, no doubt thanks to our declined by 50.81% year on year, as all verticals,
longstanding brand reputation and industry Our Condominium development project - including Roads and Highways, Water and
leadership. During the latter part of the financial Capital Heights Rajagiriya, received the green Drainage, Building and Bridge construction
year we were awarded the contract for the light from the Condominium Management reported lower turnover figures compared to
construction of backup yard and building Authority (CMA) to commence the deed the previous year.
transfer process to the new homeowners.

EXECUTIVE VICE CHAIRMAN AND THE
MANAGING DIRECTOR
A similar trend was seen in the Construction- The Board approved a second interim dividend some real opportunities to grow our project
related Material segment where the topline for of LKR. 0.75 per share for the financial year pipeline via private sector investments. The
FY 2022/23 was 52.93% lower compared to the ended 31st March 2022, to the shareholders, Multinational Businesses have continued to
previous financial year. which amounted to a total dividend payout invest in key projects and with the exchange
totaling LKR. 750 Mn. rate and interest rates predicted to reach
Revenue tabled by the automobile sector more stable ground towards end-2023, we
showed a decline of 38.45% YOY on the back Awards and Accolades foresee increased investment by the private
of the continuity of ongoing restriction on We are very pleased to have received a total of sector, especially in the form of FDI’s. Hence
vehicle imports. However, on a positive note, 5 performance awards from the Construction our priority in the short to medium term
the property development segment reported a Industry Development Authority (CIDA) in would be to deepen our engagement with the
solid 81.13% revenue growth year on year. retrospect for the years 2020 and 2021 when private sector, where we will focus on securing
the ceremonies could not be held due to the large scale projects in the ports, logistics and
Even amidst the substantially lower topline COVID 19 pandemic. The 5 Projects nominated renewable energy sectors.
recorded by all segments, except the property for the awards were;
arm, gross profit for the Group and the Acknowledgments
Company stood at LKR 5,859 Mn and LKR Ì Reconstruction of Kochchikade Bridge on In conclusion, we wish to express our
4,186 Mn respectively for FY 2022/23, denoting Peliyagoda – Puttalam Road sincere thanks to our Chairman and all Board
an improvement of 10.30% and 14.27% Members for their able stewardship during
respectively over the previous financial year. Ì Rehabilitation and Improvements to
these unprecedented times. Our sincere
Colombo - Kandy Road from Kadawatha to
gratitude to the Corporate Management Team,
With the healthy Gross Profit creating the space Nittambuwa
Management Team, and all team members for
for additional cost absorption, the resultant Ì Construction of new road along west bank their loyalty, and hard work, throughout this
improvement in EBIT helped to boost Operating of west Beira Lake adjoining Former Army crisis period. Your dedication and commitment
Profit margins at both Group and Company Headquarters at Colombo have been an invaluable strength.
level. EBIT at Group and Company level showed
a significant YoY growth of 52.41% and 47.95% Ì Rehabilitation of Downstream & Upstream
Finally, to our shareholders, valued customers,
respectively. Dam Embankments of Iranamadu
business partners and all other stakeholders -
Reservoir at Kilinochchi
thank you for your continued support, trust and
Finance costs increased significantly at Group Ì Rehabilitation of Spillway, Supplying confidence over the years. We assure you of our
and Company level on the back of rising & Installation of New Radial Gates and best attention towards a sustainable future with
interest rates. Interest expenses as a percentage Automation of spill & Sluice gates of Access Engineering PLC.
of revenue increased 7-fold to 21.38% (2021/22 Iranamadu Reservoir at Kilinochchi
– 2.88%) and 23.01% (2020/21 – 3.07%)
respectively at Group and Company level. Future Plans
Having weathered what was easily the most
The effective tax rate for the Group and
challenging year in our 22 year history, we now
Company increased substantially in the current Rohana Fernando
look forward to sustaining our business during
financial year in direct correlation with the new Managing Director
the period ahead. As we move forward, we will
corporate tax regime introduced with effect
strive to maintain continuity of operations to
from 1st October 2022. Consequently, the
ensure ongoing projects such as the Marina
effective tax rate at Group and Company level
Square mix development meet their respective
rose to 44.34% and 24.73% respectively from
construction milestones.
11.21% and 13.66% respectively in FY 2021/22.
As the Country tackles the debt restructuring Christopher Joshua

A culmination of higher finance costs and
process, we anticipate the government Executive Vice Chairman
increased taxes saw the Group and Company
would begin negotiations that will ensure the
register post- tax profits of LKR. 2,436 Mn and
recommencement of multilateral and bi – 29 August 2023
LKR. 1,444 Mn respectively for FY 2022/23.
lateral funded projects in due course.
Earnings per ordinary share also decreased from
We do feel it is unlikely that any new State
LKR 5.11 to LKR 2.48 at the Group level and from
funded Infrastructure development will
LKR 2.58 to LKR 1.44 at the Company level.
commence in the near term. That said, we see

STRATEGY
Operating Environment 22 Key Projects 50
SWOT Analysis 25 Roads and Highways 50
PEST Analysis 26 Bridges and Flyovers 52
Stakeholder Engagement 29 Buildings and Piling 60
Materiality 36 Telecommunications 68
Strategic Direction 42 Group Performance Review 70
Our Value Creation Model 44 Construction 70
Our Business Portfolio 46 Construction related Material 73
Spread of Operations in Sri Lanka During 2022/23 48 Property 74
Automobile 80
OPERATING ENVIRONMENT
Global Economy
Overview Outlook and Prospects

Contrary to heightened expectations of a post- weakened by the pandemic, experienced Global growth is expected to hover in the
COVID surge in economic activity, the global higher-than-expected inflation worldwide. range of 3.8% - 4% in 2023. This marginal
economy recorded moderate growth of just Rising energy prices and supply disruptions improvement is based on the assumption
above 3% in 2022 - the weakest growth profile have resulted in higher and more broad-based of a cyclical pickup as current drags on
since 2001. Global output contracted noticeably inflation, particularly in the United States and growth gradually dissipate. Nevertheless,
in the second quarter of the year, owing to several European economies as well as across high levels of inflation are expected
the slowdown observed in China and Russia, many emerging markets and developing to persist for longer than envisioned
while US consumer spending also undershot economies. Supply chain and trade disruptions with ongoing supply chain disruptions
expectations. The global economy, already as a consequence of the Russia/Ukraine war and high energy prices likely to remain
was another key impediment to global growth elevated in 2023 as well. Economic
in 2022. damage from the Russia/ Ukraine conflict
is also expected to cause a significant
slowdown in global growth in 2023 and
add to inflation. Beyond 2023, global
growth is forecasted to decline to about
3.3% over the medium term.
Global Construction Industry
Overview
Outlook and Prospects
In 2022, the global construction industry While technology is paving the way to attract The global construction industry’s growth
showed signs of an uptick driven by young people with tech skills for new roles is forecast to remain sluggish in 2023.
improved activity in the US, Europe, and mainly in design, graphics and data science, The deceleration reflects the challenging
the Asia-Pacific region. Despite improved the construction industry remains inherently conditions in most markets around the
prospects, the construction sector world-wide labour intensive which draws attention to the world leading to persistently high inflation
continues to be plagued by massive labour importance of retaining skilled workers. and a tightening of monetary policy
and skills shortages which for decades has
controls which together will dampen
manifested into low productivity, poor project
investment. Construction industry
management, insufficient skills, and inadequate
prospects will likely be further hampered
design processes. The pandemic has further
by industry-specific challenges such as
exacerbated the problem.
high construction material costs and acute
labour shortages.
Sri Lankan Economy
Overview Outlook and Prospects
In 2022, the Sri Lankan economy experienced disposable income of households, ultimately Sri Lanka’s ability to achieve sustainable
its worst-ever economic regression in 75 triggering widespread social unrest across the recovery of growth hinges on expediting
years. As deeply entrenched macroeconomic Country. much needed reforms in key areas of the
weaknesses along with recent ill-timed and ill- economy, while benefiting from the ongoing
equipped reforms in taxation and agricultural Responding to the crisis, the government debt restructuring efforts. In this regard the
policies boiled over, the Sri Lankan economy enforced significant monetary policy Government has declared its commitment
descended into a fully blown economic crisis. tightening measures, along with the other to expedite both fiscal consolidation and
strategies to contain the balance of payments economic reforms in order to achieve
Acute fuel shortages due to the dearth of (BOP) pressures. A series of fiscal reforms were medium term fiscal targets set out under the
foreign exchange caused a significant drag on also introduced to mitigate excessive price IMF-EFF supported programme.
activities. The situation was further aggravated pressures, improve foreign exchange liquidity
by crippling fuel shortages, prolonged power conditions, minimise external and fiscal sector This would involve implementation of long
outages, surging cost of production along with stresses, support economic activity, and steer overdue structural reforms to streamline
an acute scarcity of raw materials owing to the economy towards stability, SOEs in order to ensure these institutions
import restrictions. Further, significant upward do not compromise the Country’s financial
revisions in major utility prices amidst soaring However available data indicates that Sri stability. In addition, reforms to taxation
global energy prices and the depreciation of Lanka’s real GDP contracted by 7.8% in 2022, a policies and tax administration and the
the exchange rate exacerbated supply side marked contrast to the growth of 3.5% reported strengthening of the legal compliance
pressures, while severe inflationary pressure in 2021. framework will be critical to achieving the
and unprecedented tax hikes affected the revenue targets of the Government, thereby
restoring the macroeconomic balance in the
period ahead.
Local Construction Industry:
Overview
Outlook and Prospects
Construction related activities showed a highways and roads, construction of bridges
The construction sector recovery will
marked decline in 2022 amidst the shortage of and flyovers, and restoring roads damaged
depend largely on the resumption of
building materials and high input costs along by natural disasters. Accordingly, expenditure
Government funded infrastructure
with lower demand attributed to high interest incurred in developing expressways and
projects in the coming months. Similarly
rates. The budgetary space for the Government highways, amounted to Rs. 34.4 billion and Rs.
recommencement of multi – lateral and
to accommodate investment expenditure 145.0 billion, respectively, during the year, while
bi – lateral funded construction projects
on infrastructure facilities was also severely Rs. 6.6 billion was spent on the construction
that were temporarily disrupted in the
curtailed as a result of the economic crisis. of bridges and flyovers. Although the annual
immediate aftermath of the economic crisis,
budgetary allocation for RDA was revised on
will speed up the return to normalcy for the
Consequently, many government-funded many occasions under the Government’s efforts
local industry. At the same time, attracting
infrastructure projects were temporarily on expenditure curtailment, the expenditure
new investments in the form of multi –
disrupted, while others continued to progress incurred remained below the finalised
lateral / bi – lateral funded projects as well
at a slower pace owing to financial constraints annual allocation of Rs. 247.8 billion for 2022.
as from private multinational investors will
associated with the deepened economic Meanwhile the Urban Development Authority
create the much needed momentum to
crisis. The Government’s road infrastructure (UDA) continued to engage in around 180
enable the local construction industry to
development initiatives made only modest projects under the Urban Infrastructure and
grow sustainably in the years ahead.
progress in 2022, reflecting the tight fiscal Township Development Programme (Siyak
conditions amidst cash flow pressures. The Road Nagara), including city beautification and urban
Development Authority (RDA) incurred around development endeavours, to enhance the
Rs. 195.4 billion on various activities, aimed at infrastructure base of the country.
improving the road network via maintenance,
widening and enhancement of expressways,
OPERATING ENVIRONMENT
Local Construction Industry:
Amidst this backdrop, the local construction by 2025 and 2027, respectively. Upon the
sector decelerated notably, growing by only completion of both terminals, the estimated
3.1% in 2022 compared to 13.1% expansion in annual capacity of the Port of Colombo is
2021. expected to enhance by around 6 million TEUs,
which will largely support to cater to future
On a positive note, major development projects demand in the port industry, enabling the Port
related to the Port of Colombo and regional of Colombo to derive benefits from its strategic
ports continued to expand in 2022. Construction geographical location.
work of the second phase of ECT continued
through the year with 30% of work relating to Encouragingly, development activities relating
dredging and reclamation completed by end to the Colombo Port City made steady progress
2022. Construction work of the West Container in 2022. Notable milestones for the year
Terminal (WCT) of the Colombo Port also included the gazetting of the Development
commenced in November 2022, following the Control Regulations (DCR) for the entire project
finalisation of the Build-Operate-Transfer (BOT) in April 2022, and finalisation of the regulatory
agreement that spans over 35 years between frameworks in relation to businesses of strategic
a foreign investor, a local investor and the SLPA importance, offshore companies, authorised
for the development of the project. The ECT and persons, and duty-free retail operations.
WCT terminals are expected to be completed
SWOT ANALYSIS
STRENGTHS WEAKNESSES
Ì Visionary leadership and skilled and capable top Ì Large portion of Company revenue being dependent upon local economy
management support
Ì Limited experience in overseas project execution
Ì Diversified company, operating across four sectors;
construction and construction related materials, OPPORTUNITIES
property, automobile & mechanical engineering
Ì Restoration of the country image in BOT & PPP basis
Ì Know-how gained through past experience having global trade following the IMF bail out Ì Significant contributor to the GDP
completed numerous infrastructure development
Ì Reinstatement of commitment of Ì Rising demand for urbanized and
projects across the country across many disciplines
multi – lateral funding agencies for vertical living
Ì Goodwill created by impressive track record and local infrastructure development
high reputation Ì Development of Sri Lanka as a
following the IMF bailout
logistics hub for transshipment
Ì Being a public quoted company on the Colombo Ì Ability to diversify the product
Ì Promotion of Non – Conventional
Stock Exchange portfolio
Renewable Energy (NCRE)
Ì Growing net asset base Ì Overseas expansion with international
Ì Long-term relationship with financial institutes partners
Ì Commitment to value engineering resulting in Ì Opportunity to execute projects on

high quality construction, low cost and speedy
completion THREATS
Ì In-house service portfolio that complements Ì Rising level of unemployment in Ì Limitations in the supply of fuel
construction projects including the designs office, the construction industry following negatively affecting smooth
piling division, production plants, workshops, etc. the disruption to infrastructure continuity of construction projects
Ì The decentralized operating structure for project development activities Ì Intense competition among existing
execution that results in high productivity and Ì Migration of Sri Lankan professionals competitors especially in bidding for
efficiency and skilled staff creating a scarcity of government projects
Ì Having the highest CIDA grading across the most potential employees Ì Barriers to penetrate overseas markets
number of engineering disciplines Ì Possible delays in client payments Ì Changes to fiscal and monetary policy
Ì Long term networking and relationship with clients, resulting in cash flow difficulties and negatively affecting infrastructure
suppliers and the government higher finance costs development
Ì Temporary disruption and delays in Ì Rising cost and scarcity of
Ì Receiving best in class knowledge through
fund disbursement by bi – lateral construction material (E.g. Sand)
executing a large number of projects jointly with
funding partners and overseas
reputed international partners Ì Continuous rupee devaluation
creditors
Ì Use of latest ERP systems and communication resulting in increased cost of
Ì Depletion of foreign exchange imported raw materials
platforms for decision making
reserves
Ì Removal of tax concessions
Ì Strong governance structure in place Ì Difficulties in transacting overseas
due to the foreign exchange crisis in
Sri Lanka
PEST ANALYSIS
Impact to AEL
POLITICAL FACTORS
FY 2022/23 FY 2021/22
Ecological/ Ì Concern on preventing environmental pollution (Air, water and land pollution) LOW LOW
Environmental Ì Continuation and renewal of operating licences based on the stated rules and regulations
Issues of Central Environmental Authority (CEA) and Local Authorities
Current Ì Laws stated by the Labor Authority relating to working hours, minimum wage rates, leave, LOW LOW
Legislations Employee Provident Fund, Employee Trust Fund and health and safety of employees
Ì Laws and regulations relating to obtaining construction licences, approval of plans etc.
Ì General civil and commercial law and governing Acts (Contract law, Companies’ Act, laws
pertaining to insurance etc.)
International Ì The open economy policy adopted by Sri Lanka to improve Foreign Direct Investments has HIGH MODERATE
Legislations attracted the participation of international firms especially in the construction sector
(Global Ì Local Companies including construction companies are bound by the International Treaties
Influence) that Sri Lanka has pledged to uphold
Ì Most of the construction projects executed in Sri Lanka are governed by the conditions set
out by the International Federation of Consulting Engineers (FIDIC)
Ì Foreign funded construction projects are governed by the bilateral and multilateral funding
agreements between Sri Lanka and the respective countries or funding agencies
Ì Restrictions imposed on Sri Lanka in engaging in global trade following the economic crisis
Compliance Ì All industry participants are required to conform to the specifications stated by the MODERATE MODERATE
requirements Construction Industry Development Authority (CIDA)
of Regulatory Ì The CIDA has specified grading for construction companies and the renewal of grading will
bodies occur by observing compliance with the established rules and regulations.
Ì Specifications set out by the implementing agencies such as the Urban Development
Authority (UDA), Road Development Authority (RDA), Sri Lanka Ports Authority (SLPA) and
the National Water Supply and Drainage Board (NWS&DB)
Ì All public quoted companies are bound by the rules and regulations prescribed by the
Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka
(SEC)
Policy Ì Infrastructure development is heavily dependent on the policy directions set out by the HIGH HIGH
Inconsistency GoSL
Ì The decision taken by the Government to curtail expenditure on infrastructure development
following the economic crisis of 2022
Funding, grants Ì The tendency to increasingly engage in multilateral and bi-lateral funded projects will HIGH LOW
and initiatives improve the flow of foreign funds and grants to the country
Ì The economic crisis of 2022 resulting in the temporary disruption to disbursement of funds
by the bi lateral and multilateral funding agencies
Ì Payment terms negotiated by the GoSL including the criteria for local engagement (grace
period, interest rate, etc..) will have a direct impact on construction contracts
Ì Government budget allocations for infrastructure development
Market lobbying Ì The influence of market lobbying groups in determining; LOW LOW
groups • The sustainable utilisation of natural resources
• Protection of human rights
• Prevention of environmental damages through air, water or land pollution
Wars, terrorism Ì Post war (2009) infrastructure development drive HIGH LOW
and conflicts Ì Terrorist activities would hamper the economic development and business sentiment in
general
Ì Civil protests of 2022 disrupting economic activity
Impact to AEL
ECONOMIC FACTORS
FY 2022/23 FY 2021/22
Local economic Ì Construction industry contributed 7.7% to the national GDP of 2022. The construction HIGH LOW
conditions industry experienced a YoY contraction of 21% in 2022.
Ì Funding constraints due to treasury not having sufficient funds also influenced the progress
of infrastructure development activities
General Ì Construction activities are taxed at 30% which was a 2% increase as opposed to the HIGH LOW
taxation issues previous year
Ì The new Social Security Contribution which came into effect from October 2022
Ì Imposition of VAT on the sale of condominium apartments from January 2023 will have a
negative impact on the sale of new apartments
Seasonality or Ì Extreme weather conditions affecting the progress of construction related activities MODERATE MODERATE
other weather
issues
Special Sector Ì High degree of attention towards condominium developments in the country will favour LOW LOW
factors the building construction sector
Interest and Ì Interest rate specifies the borrowing capacity and influences the investment process HIGH LOW
exchange rates especially if the projects are debt financed. High interest rates that were prevalent
throughout 2022 made the cost of borrowing substantial
Ì Depreciation of the Sri Lankan Rupee has led to foreign exchange losses and high cost of
imports for raw materials such as cement and steel
International Ì Tendency to import construction related materials and machinery from low cost HIGH MODERATE
trade and destinations, while lowering the cost of construction, may compromise on quality
monetary issues Ì Significant depletion of the country’s foreign exchange reserves in 2022 resulting in
difficulties to import raw material
Ì Import restrictions imposed on selected goods limiting import dependent businesses
Ì Difficulty in importing construction machinery, material and plants due to foreign exchange
restrictions
Ì Free Trade Agreements, bilateral and multilateral agreements enhancing the potentials for
engaging in international trade including the possibility of carrying construction projects
overseas
PEST ANALYSIS
Impact to AEL
SOCIAL FACTORS
FY 2022/23 FY 2021/22
Lifestyle trends Ì Increase in urbanisation and the preference of people for vertical living have created MODERATE MODERATE
opportunities for construction companies specially for construction of condominium
apartments
Ì The shortage of fuel in the country following the economic crisis resulted in employees
working from home
Demographics Ì A significant portion of the workforce leaving for overseas job opportunities following the HIGH MODERATE
economic crisis
Ì Ageing population creating limitations for the potential workforce especially engaging in
construction related works
Job Perceptions Ì Majority preference for white collar jobs as against blue collar work MODERATE MODERATE
Superstitious Ì Beliefs on auspicious and non-auspicious times of the day and the year in the building LOW LOW
beliefs construction sector and especially in the individual house building sector
Consumer Ì People are becoming more environmentally concerned, creating a tendency to demand MODERATE MODERATE
attitudes and for more sustainable construction technologies and methodologies. This results in further
opinions emphasis on Green construction methods.
Media views Ì Influence of the public media by bringing to limelight pressing issues of the general HIGH LOW
public like housing, water, electricity, etc… is creating more opportunities for construction
activities and companies
Image of the Ì High degree of concern towards organisational reputation, brand image, adaption of good MODERATE MODERATE
organisation corporate governance practices
Consumer Ì Increasing demand for more urbanised office spaces and vertical living spaces MODERATE MODERATE
buying patterns
Major events Ì Civil unrest following the economic crisis resulting in damage to property and civilians HIGH LOW
and influences Ì Promotion of Sri Lanka as a MICE destination is creating the need for new infrastructure
developments and renovations
Impact to AEL
TECHNOLOGY FACTORS
FY 2022/23 FY 2021/22
Competing Ì Development of modern techniques that; MODERATE MODERATE
technology • Reduce the use of natural resources and raw materials
development
• Reduce pollution such as use of fly ash from power plants to create concrete blocks
• Reduces cost and speeds up construction such as prefabricated construction, self-
healing concrete and advance finishing materials
Associated/ Ì Development of sophisticated software, especially for the purposes of designing which in MODERATE MODERATE
dependent turn result in accuracy and speed.
technologies Ì Use of Building Information Modelling (BIM)
Ì Augmented reality/virtualization designs
Ì Use of fibre optic monitoring technology
Ì Remote monitoring of construction progress using drones
Ì 3D scanning and photogrammetry
Maturity of Ì The construction industry is moving from being a strictly labour incentive one to a more MODERATE MODERATE
technology knowledge incentive one
Ì Emerging technological advances used throughout the world to foster efficient construction
are now introduced and used in Sri Lanka
Innovation Ì Heavy emphasis on research and development to further initiate technological MODERATE MODERATE
potential advancements and construction materials
Maturity of Ì Technological obsolescence of machinery and methods used in the construction processes LOW LOW
organization’s will formulate threats in conducting operations
products /services
STAKEHOLDER ENGAGEMENT GRI 2-16
We understand that staying connected to our stakeholders is vital to our business success.
Accordingly, we aim to forge deep connections with our stakeholders in order to learn their
expectations and changing needs.
Our approach to engaging with stakeholders is a continuous process as shown below;
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ENGAGEMENT
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Suppliers
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lenders
Clients and Employees

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STAKEHOLDER ENGAGEMENT GRI 2-29
We understand that staying connected to our tailor-made engagement strategies to suit the needs of various stakeholder groups. For instance,
stakeholders is vital to our business success. stakeholders deemed to wield a high degree of power and have a high level of interest are engaged
Accordingly, we aim to forge deep connections more frequently and proactively. In this way, stakeholder engagement also serves as an important
with our stakeholders in order to learn their tool in updating our Material Issues.
expectations and changing needs.
KEEP SATISFIED ACTIVELY ENGAGE
The first step to engaging with stakeholders is to Ì Government and Ì Clients and customers
identify all key players encompassing our entire regulatory bodies Ì Investors and shareholders
value chain. Across the Group, functional heads
HIGH
Ì Business partners
at all levels have been tasked with proactively
Ì Board of Directors
identifying both internal and external
Ì Corporate Management
stakeholders relevant to their respective
operations. Stakeholders identified in this Ì Employees
way include; the Board of Directors, Corporate Ì Suppliers and subcontractors
POWER
Management, Investors and Shareholders,

MONITOR KEEP INFORMED
Bankers and Prospective Lenders, Employees,
Government and Regulatory Bodies, Clients Ì Society Ì Banks and prospective lenders
and Customers, Suppliers and Subcontractors, Ì Industry peers and
LOW
Business Partners, Society, Industry Peers and competitors

Competitors.
Once stakeholders are identified, the next

step involves stakeholder mapping, wherein
identified stakeholders are plotted on the
LOW HIGH
Power/Interest grid. The Power/Interest grid
acts as a guideline for the formulation of
INTEREST
BOARD OF DIRECTORS
Ties to the company Power Interest

The Board is the apex governing body within the company and provides strategic leadership by; HIGH HIGH
Ì Setting corporate objectives & formulating strategies & policies
Ì Reviewing the performance of corporate management
Ì Representing the views of the Company to outside world
Ì Protecting Company assets & shareholder interests
Ì Establishing a sound system of governance and enforcing same
Methods of Engagement Frequency

Ì Board Meetings Quarterly
Ì Board Committee Meetings

Independent evaluation of performance Annual
Key Concerns Raised During the Year Company Response
Diversification of business operations Ì Expedited construction of the Export Greenfield (EGF) Logistics and Warehousing facility at Ekala
Ì Completion of construction of the public car parks in Union Place on a Design, Build, Finance,
Operate and Transfer (DBFOT) model
Consolidation of core business Continued with infrastructure development projects in a limited capacity under challenging economic
conditions following the economic crisis of 2022. Our engagement in the Port sector was further
strengthened during the year with the securing of substructure and civil work of the West International
Container Terminal of the Port of Colombo.
CORPORATE MANAGEMENT

The Corporate Management operates under the delegated authority of the Board in managing the day to day activities of HIGH HIGH
the business as per the Board-approved strategies, policies and objectives.

Corporate Management Meetings Continuous with at least one in every two months
Ì Progress review meetings Monthly
Ì Performance review meetings

Improving efficiency & productivity Ì Rationalized core business activities in line with the contraction in the industry
Ì Strengthened cost and project management functions
Securing of projects Ì Vigilant & pro-active business development efforts

Ì Secured new construction projects in booming sectors of the economy such as port operations
INVESTORS AND SHAREHOLDERS

Investors play a key role in funding future projects. Investors of mega infrastructure projects expect a reasonable return on HIGH HIGH
their investment in the long term and expect the Company to honour their contractual obligations.
Shareholders provide equity capital and approve / reject company strategic decisions while expecting a reasonable return
on their investment. They also expect us to provide periodic updates about the development of our Company, our key
financial figures and our long term business strategy/direction. As the custodians of their wealth the shareholders expect
us to build a growing and sustainable business while being a good corporate citizen. The long term strategy of AEL is to
increase its market value to shareholders.

Ì Periodic meetings to ascertain / review project progress As and when required
Ì Business promotion meetings
Annual Integrated Report and the Annual General Meeting (AGM) Annual
Interim Financial Statements Quarterly
Extraordinary General Meetings (EGM) As & when required
Ì Company website and dedicated investor relations email Continuous

Ì Newspaper articles and other publications
Ì Road shows and Investor Forums
Ì CSE Disclosures and Announcements
Ì Research reports of the stock broking community
Ì Telephone communication
Ì E-mail and other written correspondence
Providing up-to-date information about the affairs of the company Ì Published press releases featuring key projects
Ì Published the Annual Integrated Report
Ì Release of Interim Financial Statements on a quarterly basis
Ì Frequent release of research reports about the company via stock brokers
Ì Held one to one meetings with institutional investors, stock broker firms,
research companies, etc..
STAKEHOLDER ENGAGEMENT
BANKS AND PROSPECTIVE LENDERS

Banks and prospective lenders provide support in the following areas; LOW HIGH
Ì Financing infrastructure development projects of the country

Ì Processing day to day monetary transactions of the Company
Ì Providing funding arrangements to enable effective working capital management
Ì Providing investment opportunities through accepting deposits
Ì Timely settlement of dues Continuous
Ì Providing periodic financial information
Responding to lenders’ queries As & when required
Mitigating the negative effects of high interest regime and the need Restructured the loan portfolio with banks and lending institutions
for effective treasury management
EMPLOYEES

The industry we operate-in is highly labour intensive. Thus to remain competitive in the market we need to have the best HIGH HIGH
talent pool & human capital in the industry. In return for their commitment the employees expect us to provide them with
a fair remuneration, safe working environment, equal opportunities, individual career growth, opportunities for training &
development, reward their performance and to promote work-life balance.
Ì Management-employee meetings Continuous

Ì ‘Open-door’ policy
Ì Exit interviews
Ì Newsletter blog Quarterly

Ì ‘News Within’ quarterly newsletter
Ensuring job security Ì Facilitated transfers within group companies engaged in complementary
businesses, where possible
Ì Retained all possible team members, having them engaged in all available
work
GOVERNMENT AND REGULATORY BODIES

Maintaining cordial relationships with GoSL is very important to the company since most infrastructure projects are HIGH LOW
initiated by the government. The client and the project proponent of the majority of our projects is a government
institution. Thus building confidence is paramount to business operations & our continuity.
The Government expects us to create direct and indirect employment opportunities, engage in investment opportunities
and drive economic growth while complying with all their laws and regulations. We act as a source of revenue to the
government by paying direct taxes and channeling indirect taxes. The Government also expects us to actively participate
in uplifting industry standards.
Regulatory bodies and authorities play a vital role in approving & reviewing completed, on-going & future infrastructure
development projects. They also expect us to fully comply with all their rules and regulations.
Ì Public Private Partnership (PPP) projects Continuous

Ì Design, Build, Finance, Own, Operate & Transfer (DBFOOT)
projects
Ì Timely feedback through submission of reports, tax returns,
updates, etc
Ì Ensuring compliance
Ì Participation at various forums, meetings, discussions organised
by the government and regulatory authorities
Ì Continuous membership in industry associations
Need to jointly execute projects as investment partners Completed the Company’s first DBFOOT project to build public car parks at
Union Place
Need to comply with all government regulatory requirements and Complied with all applicable rules & regulations of the government with timely
payment of dues such as taxes, rates, etc.. payment of all dues
INDUSTRY PEERS AND COMPETITORS

Fostering and engaging in fair competition while promoting ethical business practices is vital for the development of the LOW LOW
industry. The peers expect us to actively promote and uplift the standard of the industry as a whole through our active
participation in various industry initiatives. In situations where joint execution of projects with industry participants is
necessary, they expect us to honour contractual obligations and joint venture agreements while displaying a satisfactory
level of performance.
Ì Membership in industry associations Continuous

Ì Joint execution of infrastructure projects with peers
Ì Industry advancement workshops and discussion forums
Need to jointly execute mega-scale infrastructure development Carried out flyover steel fabrication work for the first time in Sri Lanka in joint
projects partnership with a local contractor
STAKEHOLDER ENGAGEMENT
CLIENTS AND CUSTOMERS

Maintaining cordial relationships with clients is important since most of the repeat orders are based on this. Similarly client HIGH HIGH
satisfaction through effective project implementation is important in securing future business. Hence client interaction is
one of the most important factors of our success.
We also carry out a substantial amount of engineering projects and services at the client’s premises and need customers
to continually subscribe to our engineering products & services in order to generate business.
Publication of the Annual Integrated Report Annual
Ì Proactive business development Continuous

Ì Progress review meetings
Ì Updated website
Ì Relationship Managers for each major customer
Ì Regular correspondence during defect liability/notification
period (DLP)
Delivery of projects at a lesser cost Provided solutions that are less costly & speedy such as the diaphragm
wall, prefabricated structures, post –tensioning, HDD, micro trenching, etc..
depending on the availability of work
Need for high quality construction Executed projects with the least number of defects
SUPPLIERS AND SUBCONTRACTORS

The construction industry is heavily dependent on raw material and, therefore, suppliers play a key role in the achievement HIGH HIGH
of business objectives and timely completion of projects. While enabling us to deliver innovative value engineering
solutions to various clients they also help us to make our processes more efficient. We also need subcontractors who are
capable of carrying out work in an uninterrupted manner, who are trustworthy, competitive in terms of prices, quality of
service offered and flexibility, easy to communicate with, have a good past track record and adhere to ethical conduct.
In carrying out our projects and services they expect us to build progressive long-term relationships while honoring all
contractual obligations.
Ì Subcontractor / supplier evaluation Continuous

Ì Regular progress review meetings
Ì Company website
Ì Contract negotiation and communication
Ì Procurement Committee meetings
Ì Sub – contractor meetings
Ì “Green Tape” e-procurement platform
Timely settlement of dues Settled all dues on time with zero fines or penalties for delayed payments
Need to further improve transparency and efficiency in procurement Carried out all procurement activities through the Central Procurement
Department (CPD)
BUSINESS PARTNERS

For us to be a leader in knowledge-based value engineering, we need to liaise with companies specialising in particular areas HIGH HIGH
enabling a valuable knowledge transfer process. They also collectively expect us to safeguard their interests, honoring their
obligations on time while building progressive sustainable relationships. As a Sri Lankan business enterprise having executed
a vast number of infrastructure development projects in joint partnerships, business partners are a key stakeholder for AEL.

Ì Regular visits to / from business partners Continuous
Ì Company website
Ì Regular written communication and periodic meetings for
ongoing projects
Ì Relationship Managers for each major customer
Need to maintain sound business relationships Carried out projects in partnership with foreign principles
Need to further enhance business partnerships beyond Sri Lanka Completed the T – mall flyover in Kenya with one of our long-standing business
partners; Centunion SA of Spain
SOCIETY

The end user of almost all our products, i.e. construction projects, is the general public. Hence they expect us to build LOW LOW
infrastructure and provide services that are of high quality and safe to use while being sustainable economically, socially
and environmentally. Being a responsible corporate citizen adhering to social norms and culture and maintaining a
positive public image is very important to succeed in this industry. The general public also expects us to create direct and
indirect employment generation.

Ì Company website Continuous
Ì Regular media and other communications with public
Ì Participating in and sponsoring trade exhibitions
Ì Consultation of local communities in project planning and
execution
Publication of the Annual Integrated Report Annual
Enhancing the knowledge base of the industry Ì Offered internships for university students
Ì Continued the Innovation Hub named “Idea Nest” to provide the younger
generation with an opportunity to innovate
Ì Completed phase I of ‘introducing fiber optic monitoring technology to
Sri Lanka’ in partnership with the University of Moratuwa supported by the
University of Cambridge and Oxford
Ì Introduced innovative solutions to the industry during the year
MATERIALITY GRI 3-1
Material Issues are the ‘areas of concern’ that could potentially affect our commercial viability and/ or impact our social relevance, and as such calls for
a proactive response on our part to manage these specific issues. We follow a 4-step process to understand what issues are deemed Material in the
context of our business and stakeholders.
Materiality Determination Process
Identify all matters that have the potential to impact the Groups' ability to create value for stakeholders. The process of
identifying potential Material Issues involves an in-depth analysis of both internal (Board meetings, Board Committee
meetings, Corporate Management meetings, Annual Key Staff Forum, Results of engagement with employees, Results of
Investigate internal audits and management system audits carried out, Key focus areas of Company policies, values, ethics, Group Code
of Conduct, and the risk management process) and external factors (Political, Economic, Social, Technological developments
in the local and global space along with external best practices such as that outlined under the Global Reporting Initiative
Standards for Sustainability Reporting).
Identified issues are ranked based on their impact on the business as against their importance to
stakeholders. For this purpose, topics are mapped on the Materiality Matrix and ranked in order of
Rank
priority as “High”, “Moderate” or “Low”. The ultimate responsibility of prioritising material matters lies
with the management team and the Board of Directors.
Material Issues that have been identified and prioritised are then integrated into
Integrate corporate strategy and business plans to enable the Group to generate sustainable
value over the short, medium and long term
Material Issues are assessed on an ongoing basis to ensure that

Assess strategic focus areas remain relevant, both from a business
perspective as well as from the stakeholders point of view
201 203 204 302 303 304 305

HIGH
SIGNIFICANCE TO STAKEHOLDER
401 403 404 405 406 413 419

MODERATE
206 301 307 414 205
306 308 407 408 409 410

LOW
402
411 412 415 417 418
LOW MODERATE HIGH
SIGNIFICANCE TO AEL
In this way we consider the Materiality determination process to be a business tool that facilitates integrated thinking and is therefore critical to achieving
the Group’s strategic objectives and meeting stakeholders’ expectations.
GRI 3-2, 3-3
Material Economic Issues
Economic Performance
Context and reason for Economic viability is the foundation of long term sustainability and a fundamental driver of stakeholder value
Materiality creation
Stakeholders Impacted Shareholders, Investors
Management Approach We strive for organic growth by diversifying into new complementary business verticals to achieve backward
and forward integration in order to strengthen overall value proposition and differentiate our offerings from that
of peers. We also pursue inorganic growth through acquisitions and mergers, and entering into new ventures.
While pursuing growth, we ensure adequate resources are available to maintain dividend disbursement at a
satisfactory level, thus ensuring our shareholders receive a consistent return on their investment.
As a part of our commitment, we follow transparent reporting of our financials in accordance with local statutory
disclosure requirements, accounting principles and auditing standards. As a publicly quoted Company, we are
also governed by the rules and regulations of the Colombo Stock Exchange and need to adhere to the best
practices of corporate governance. Beyond this, we have voluntarily adopted global reporting best practices such
as the Global Reporting Initiative (GRI), the Integrated Reporting (IR) Principles of the International Integrated
Reporting Council and the Sustainable Development Goals (SDG’s).
The Annual Audited Financial Statements and the Interim Unaudited Financial Statements serve as the main
source for communicating our financial performance to the public. We have a comprehensive framework of
policies and procedures that serve as a guide to communicate internal control procedures and standard operating
procedures that govern all financial matters.
The annual financial audit and the annual assurance engagement are our primary methods of formally validating
our financial and non-financial performance while the routine audits are carried out by the Internal Audit
Department assessing the efficacy of our internal controls and financial reporting systems.
Further Reading: Financial Capital

Relevance to GRI Ì Economic Performance (201)
Procurement practices and customer health and safety

Context and reason for Reliable and dependable suppliers and subcontractors support the continuity of business and contribute
Materiality towards the achievement of corporate aspirations
Stakeholders Impacted Suppliers, Customers
Management Approach To ensure we tie up with the right partners, all suppliers are evaluated through a stringent screening process. As
part of our overall approach, we strive to utilise as many local suppliers as possible. Routine supplier audits are
conducted to verify supplier alignment with the Company’s frameworks.
We also consider the health and safety of the general public to be of paramount importance. We conduct all our
operations and build our infrastructure in accordance with all mandatory health and safety guidelines applicable
to our various businesses. A programme of safety audits provide assurance regarding the efficacy of existing
safety systems, while the quarterly risk assessment and hazard identification process helps to determine potential
safety gaps that warrant corrective action.
Further Reading: Social and Relationship Capital

Relevance to GRI Ì Procurement Practices (204)
Ì Supplier Social Assessment (414)
Ì Supplier Environmental Assessment (308)
Ì Customer Health and Safety (416)
Ì Marketing and Labelling (417)
Ì Customer Privacy (418)
MATERIALITY GRI 3-2, 3-3, 206-1
Anti-corruption and anti-competitive behaviour

Context and reason for Materiality Good business conduct is critical to maintaining our reputation as the leading construction company in Sri Lanka
Stakeholders Impacted All Stakeholders
Management Approach Ethics and integrity are two of the core values that represent the Access Engineering brand. This is why we
take every possible measure to prevent corruption from occurring. The anti – corruption programs in place are
properly reviewed to ensure its adequacy and appropriate changes where necessary are made. We educate our
employees and evaluate our Company through annual financial reports, audits, and other control measures.
Moreover, we remain cognisant of how anti-competitive behaviour can impact the industry as a whole and have
always maintained cordial relationships with our competitors, reflective of our wish to maintain professionalism in
our dealing with the external world. During 2022/23 there were no legal actions for anti-competitive behaviour,
antitrust and monopoly practices.
Further Reading: Intellectual Capital

Relevance to GRI Ì Anti-Corruption (205)
Ì Anti-Competitive Behaviour (206)
Ì Security Practices (410)
Ì Public Policy (415)
Material Social Issues
Labour management relations, occupational health and safety, market presence, and non-discrimination
Context and reason for Construction is essentially a labour intensive business that requires a committed and passionate workforce
Materiality
Stakeholders Impacted Employees
Management Approach We offer a solid employee value proposition that promises opportunities for both personal and professional growth.
We incentivize our employees by offering monetary and non-monetary rewards, including performance-based
incentives, welfare activities and other benefits. We offer internal and external training programmes to all our
employees, regardless of their grade. All employees also have a clear career progression path that is performance
driven and based on merit. We have invested in creating a healthy, safe working environment to our employees and
conduct an OHSAS audit as well as set specific objectives each year.
AEL is reputed in the industry as an equal opportunity employer. We do not discriminate on the grounds of race,
religion, gender, class, or disability. Due to the nature of the industry, our workforce is primarily made up of male
workers although we make every possible effort to recruit females.
As a responsible corporate, we adhere to all local labour laws and regulations. We have prepared an employee
handbook which communicates the benefits, rules and regulations, administrative matters and Company policies
that are applicable to all employees and by which they are bound. In our recruitments, we give priority to hiring
locally since they possess local knowledge. All our Senior Management is hired locally, and we comply with all
necessary regulations in remuneration and other benefits.
We also conduct annual performance appraisals to monitor and evaluate employees’ performance.
Further Reading: Human Capital

Relevance to GRI Ì Market Presence (202)
Ì Employment (401)
Ì Labour / Management and Relations (402)
Ì Occupational Health and Safety (403)
Ì Freedom of Association and Collective Bargaining (40)
Ì Child Labour (408)
Ì Forced / Compulsory Labour (409)
GRI 3-2, 3-3
Training and Education

Context and reason for A highly trained, skilled workforce provides a strong competitive advantage within the industry and enhances
Materiality our ability to meet customer expectations
Stakeholders Impacted Employees, Customers
Management Approach In an industry with a dearth of highly skilled labour, Access Engineering PLC recognises the importance of training
and development programmes. We offer internal and external programmes to employees, including those in
worker categories. We conduct training needs analysis through performance evaluations and recommendations
of managers. We formulate a training calendar every year, after which a formal evaluation is conducted by the HR
Department to help with gap analysis and provide feedback, which leads to further improvements.

Relevance to GRI Ì Training and Education (404)
Diversity and Equal Opportunities

Context and reason for Be the “most preferred employer” in the local construction sector
Materiality
Stakeholders Impacted Employees
Management Approach Access Engineering PLC is an equal opportunity, non-discriminatory employer, and welcomes people from
different backgrounds. We do not discriminate on the grounds of race, religion, gender, class, or disability. Though
most of our staff is made up of males, we are making a conscious effort to improve the gender parity in the
Company by employing females at all levels of operations. Our rewards scheme, promotions, and recruitments
are conducted in a highly transparent and non-discriminatory manner. The employee handbook is used to
formally communicate information regarding equal opportunities at AEL.

Relevance to GRI Ì Diversity and Equal Opportunity (405)
Ì Non-discrimination (406)
Socio-economic compliance and indirect economic impacts

Context Build a reputation as a responsible construction company that goes above and beyond to drive socioeconomic
development and ensure the wellbeing of communities
Stakeholders Impacted Community
Management Approach We recognize that our projects may have a significant impact on the communities that we operate in. We
comply with all applicable laws and regulations across all our operations and support local communities by
creating direct and indirect economic benefits, including generation of employment, sourcing materials locally,
and engaging in community building initiatives. Our sustainability policy and strategy are our primary means of
communicating our commitment to the community, while our Annual Report also forms an important part of
communicating our work to a wider audience.
Further Reading: Social and Relationship Capital

Relevance to GRI Ì Indirect Economic Impacts (203)
Ì Rights of Indigenous People (412)
Ì Local Communities (413)
MATERIALITY GRI 3-2, 3-3
Material Environmental Issues
Energy
Context and reason for Electricity and fuel consumed for operating our machinery and equipment contribute towards increasing our
Materiality carbon footprint
Stakeholders Impacted Nature and the environment
Management Approach We adopt energy saving practices to minimise our consumption wherever possible, including:
Ì Using renewable energy such as solar power wherever possible
Ì Using and investing in energy efficient construction methodologies, equipment, and the latest technologies
Ì Educating employees on the importance of being energy efficient
All energy data is recorded and monitored to determine the effectiveness of our energy management efforts.
Further, each business unit is given a target on energy consumption which is monitored by our Management
Systems Team.
Further Reading: Natural Capital

Relevance to GRI Ì Energy (302)
Water
Context and reason for Our operations have the potential to pollute water and water resources
Materiality
Stakeholders Impacted Environment and Ecosystems
Management Approach We have implemented various strategies to minimise and save water usage where possible. These practices
include but are not limited to:
Ì Use of innovative construction techniques that consume less water
Ì Budgeting water consumption for each activity/project
Ì Reusing and recycling water wherever possible such as in our workshop
Ì Educating employees on the importance of saving water
All water data is recorded and monitored to determine the effectiveness of our water management efforts.
Further, each business unit is given a target on water consumption which is monitored by our Management
Systems Team.

Relevance to GRI Ì Water (303)
Ì Effluents and Waste (306)
Ì Environmental Compliance (307)
GRI 3-2, 3-3
Emissions, Environment, and Biodiversity

Context and reason for Our operations have the potential to cause environmental damage
Materiality
Stakeholders Impacted Environment and Ecosystems
Management Approach Our sustainable construction practices over the years have led to a minimal negative impact on the environment.
The first step of any project is to carry out an Environmental Impact Assessment (EIA) by relevant authorities.
Our environmental performance is also monitored through the Environmental Management System (EMS),
which is also externally verified. Annual emission targets are set at the beginning of each financial year and we
strictly monitor environmental performance through regular EMS audits. We also conduct employee awareness
programmes and have implemented tree planting programmes to offset the impact of our emissions.
The importance of preserving biodiversity is communicated across the Company through the environment
policy, environmental laws and regulations and the requirements of the EMS. EMS audits and site visits by our
Management Systems Team help to identify impacts on biodiversity. These are periodically reported to the client
at project progress review meetings.

Relevance to GRI Ì Materials (301)
Ì Emissions (305)
STRATEGIC DIRECTION GRI 2-22
For the past two decades, our strategy has played Construction and Construction Related In the meantime it is not likely that international
an anchoring role in fuelling business growth Material funding agencies will be inclined to invest in
while strengthening operational resilience over The Construction and Construction Related any new construction projects until greater
time. Given the highly fluid macroeconomic Material vertical represents the core business macroeconomic stability is reached and all key
environment that we have witnessed in the of the Access Engineering Group. The segment indicators such as the interest rates, exchange
recent past, we are committed to ensure our remains the main contributor to Group rates and inflation, are brought under control.
strategy continues to evolve. performance, contributing 83.86% towards On the other hand, it is encouraging to see
consolidated Group Turnover. the interest shown by private multinational
Over the years we have progressively widened organisations such as the Adani Group based
our principle approach to strategy formulation, In the year under review, the Construction and in India and China Merchants Group to invest
wherein we consider not just our primary risks, Construction Material segment came under in Sri Lanka’s developing port, warehousing,
but cast wider net to understand emerging extreme pressure. The economic crisis erupted logistics and renewable energy infrastructure.
and frontier risks that could potentially impact in 2022 thrust the local construction sector into These investments present solid opportunities
our performance and prospects. Findings from a tailspin that led to its worst-ever contraction, to grow AEL’s construction project pipeline.
our SWOT and PEST analysis have also proven which affected all industry stakeholders,
to be vital for identifying potential growth including Access Engineering PLC. However, AEL’s construction material segment too will
opportunities and supporting our efforts to with the conclusion of the EFF by the IMF have opportunities for growth amidst the broad
reshape and realign our business verticals to in the early part of 2023, confidence of the based resumption of construction activities
help them preserve their competitive edge and lending agencies will likely be restored to some in the coming months. Going forward, the
grow sustainably over the medium to long term. extent in due course, thus paving the way for Construction and Construction Material vertical
the recommencement of multi – lateral and will look to consolidate its core strengths in
bi – lateral funded construction projects that the production and supply of concrete and
were temporarily disrupted in the immediate asphalt, while pursuing business expansion and
aftermath of the economic crisis. diversification strategies on a prudent basis.
Strategic Priorities - Construction and Construction Related Material
Short Term Ì Recommence all temporarily disrupted projects after negotiation with the implementing agencies
Ì Rationalise business units for better management of resources and to reduce overheads
Ì Retain our core staff including the technical personnel who will be the backbone of our operations
Medium Term Ì Selective expansion of the project pipeline
Ì Optimise resource allocation within the Group in order to reduce overall cost burden
Long Term Ì Engage in business sectors which yet have growth potential, in partnership with multinational businesses and our
international partners and engage our local resources where possible
Ì Invest in improving scalability only in areas where there are opportunities for growth and sustainability
Real Estate and Property Development

Real Estate and Property Development comprises a portfolio of rentable spaces, including A-grade commercial office buildings as well as state-of-the-art
logistics and warehousing footprint. Also included in the Real Estate and Property Development is the Group’s flagship residential condominium projects.
Bolstered by high occupancy at all commercial and warehousing properties, including at the integrated logistics facility at Kimbulapitiya, the segment
delivered a strong performance in the current financial year to increase its share of the consolidated Group Turnover. In the year under review, Real Estate
and Property Development accounted for 6.79% in the year under review, a sizable improvement from 1.95% in the previous year.
The main objective for the Real Estate and Property Development segment would be to capitalise on opportunities to build on the success achieved in
the current financial year.
Strategic Priorities - Real Estate and Property Development
Short Term Ì Implement solutions to upgrade the facilities offered at Access Tower I & II on par with global standards for premium
A-grade office spaces
Ì Expedite construction work on Marina Square- Uptown Colombo targeting to complete the super – structure in 23/24
Medium Term Ì Leverage the state-of-the-art logistics facilities to drive customer acquisition across the wider Asian region
Long Term Ì Invest in lucrative logistics and warehousing projects on PPP and BOT basis
Automobile
The Automobile vertical remained under stress owing to the longstanding vehicle import restrictions that have been in force since the onset of the
pandemic in 2020. Since then, the segment has relied entirely on the sale of spare parts and the workshop operation. This too came under threat in the
current financial year amidst tighter import restrictions enforced by the government on the back of the economic crisis. Fuel shortages and frequent
power outages in the first six months of the financial year also affected the continuity of operations at the workshops during this period.
With no clear indication regarding the government’s stance on revoking / extending vehicle import restrictions, the long-term prospects of the
Automobile sector remain uncertain. However, short to medium term prospects of the segment will continue to hinge on the sale of spare parts and
the service workshop operation.
Strategic Priorities - Automobile
Short Term Ì Embedding lean management principles to drive optimal use of existing resources
Medium Term Ì Expand after sales service including the spare part sales and workshop operations
OUR VALUE CREATION MODEL
KEY INPUTS KEY INPUTS
Financial Manufactured Intellectual

Capital Capital Capital
Ì Base of 9,966 equity shareholders Ì LKR 58 Mn. invested in heavy Ì Ranked 8th among the top 100
machinery and equipment by AEL listed companies for transparency in
Ì LKR 24.5 Bn. equity employed
corporate reporting
Ì LKR 211 Mn. invested in production
Ì LKR 13.5 Bn. obtained from banks and
plants by AEL Ì The AEL Brand
financial institutions
Ì LKR 13.8 Bn. generated from operations
KEY INPUTS
Human Social and Natural
Capital Relationship Capital Capital
Ì 12 internal and external training Ì Network of 1,444 suppliers Ì Energy consumption 114,118,521.20
programmes conducted Joules
Ì 'Green Tape' e-procurement system
Ì Total staff and labourers 1,094 Ì Water consumed 3,868,443 Units
Ì AEL organisational culture
Investors and Suppliers and

Shareholders Business Partners Clients
Ì Financial growth and stability Ì Long-term relationships with Ì LKR 23 Mn. invested to upgrade
Ì Shareholder wealth maximisation suppliers and business partners integrated information and planning
Ì Strategic alliances that strengthen systems
Ì Improved creditworthiness and rating
AEL’s position within the industry Ì The AEL Brand
Ì Better retention and attraction of
shareholders Ì Suppliers and partners who follow
AEL’s values and code of conduct
Society, Local Community

Employees and Government Environment
Ì Employee engagement and Ì Infrastructure development driving Ì Mitigating the negative impact of our
satisfaction local economic growth business on the environment
Ì Safe working environment Ì Development of the local community Ì Responsible and efficient, energy and
Ì A workforce committed to achieve Ì A corporate citizen committed to natural resource management
sustainable growth sustainable development Ì Responsible practices in waste
Ì A culture of learning and knowledge Ì An exemplary culture of compliance management
to provide value engineering Ì Public Private Partnerships leading to Ì Sustainable and green development
projects of National importance
OUTCOMES OUTCOMES
OUR VALUE CREATION PROCESS
VISION AND SUSTAINABLE

MISSION STRATEGY
MECHANICAL PROPERTY
ENGINEERING
Office and commercial
Commissioning space leasing
Repair services Real Estate services
Maintenance services
CONSTRUCTION
AUTOMOBILE CONSTRUCTION RELATED MATERIALS
Sale of new vehicles Light commercial Asphalt production Crusher operations
Sale of spare parts vehicles
Engineering Projects Other Concrete Autoclaved aerated
Workshop services Luxury passenger production concrete block
vehicles Roads and highways Telecommunication
Quarry operations production
Building and piling Engineering designs
Water and waste water Fabrication
CORPORATE Power infrastructure Repair and maintenance of ENTERPRISE RISK
GOVERNANCE Bridges and flyovers construction equipment & MANAGEMENT
machinery
VALUE OUT
Financial Manufactured Intellectual

Capital Capital Capital
Ì Profit after tax of LKR 1.4 Bn. Ì Development of much-needed Ì One of Sri Lanka's highest
public infrastructure to fuel CIDA accredited EPC
Ì LKR 3.9 Bn. interest paid to
economic growth contractors
financial institutions
VALUE SHARED
Human Social and Natural

Capital Relationship Capital Capital
Ì Zero fatalities Ì LKR 1.6 Bn. spent on local suppliers Ì Energy and fuel saving
initiatives
Ì LTIFR ratio of 2.80
OUTPUT
OUR BUSINESS PORTFOLIO
Construction
Engineering Projects
Water and Wastewater Buildings Roads and Highways Bridges and Flyovers Piling
Engineering Services
Telecommunication Fabrication Engineering Designs Repair and Maintenance of

Construction Equipment & Machinery
Construction Related Material
Asphalt Production Concrete Production Quarry Operations
Crusher Operations Autoclaved Aerated Concrete (AAC) Manufactured Sand

Block Production (M – Sand) Production
Pre-cast Production
Property
Office and Commercial Space Leasing Condominium Mix Development Warehousing & Logistics
Automobile
New Vehicle Sales Sale of Spare Parts Workshop Operations
Light Commercial Vehicles

Luxury Passenger Vehicles
Mechanical Engineering
Commission of Port Repair of Port Machinery Maintenance of Port

Machinery Machinery
SPREAD OF OPERATIONS IN
SRI LANKA DURING 2022/23
(Excluding Production Plants)
District Project List
Anuradhapura Anuradhapura North Water Supply Project – Phase I
Batticaloa Dialog Optical Fibre Backbone Network Project
Colombo Ì Corporate Office – Colombo 2
Ì Design Unit – Colombo 2
Ì Central Equipment Division – Kaduwela
Ì Scaffolding Unit – Ranala
Ì Fabrication Unit – Ranala
Ì Telecommunication Services Unit – Nugegoda
Ì Design and construction of Kohuwela flyover
Ì Design and construction of Baladaksha Mawatha flyover
Ì Design, construction and financing of Housing Project at 601 Watta, Cyril C Perera Mawatha, Bloemendhal
Ì Design and Construction of 1,000 Housing Units at Stadiumgama
Ì Design, Construction and Financing of Housing Project at Elliot Place – Borella
Ì Construction of Diaphragm Wall for Proposed Star Class Hotel at 594, Galle Road, Colombo 04
Ì Construction of East Container Terminal
Ì Construction of Marina Square Uptown Colombo
Ì Design, Construction and Financing of 432 Affordable Housing Units at Orugodawatta – Phase 02
Ì Piling Works of 300 Housing Units at Obeysekerapura
Ì Piling works of the National Transmission and Distribution Network Development and Efficiency Improvement
Project at Ratmalana
Ì Dialog Optical Fibre Backbone Network Project
Ì SLT New Subscriber Connection Project
Galle Ì Dialog Optical Fibre Backbone Network Project
Gampaha Ì Widening and Improvement of the Colombo-Kandy Road Section from Nittambuwa to Pasyala
Ì Piling and Earth Works for the New Terminal Building and Viaduct at Bandaranaike International Airport
Ì I – Roads project
Ì Piling Work for Proposed Container Freight Station at Kerawalapitiya
Ì Construction of the Export Green Field Logistics and Warehousing Facility at Ekala (EGF2)
Ì Piling works of the proposed 350 MW LNG Combined Cycle Power Plant at Kerawalapitiya

District Project List
Hambanthota Ì Dialog Optical Fibre Backbone Network Project
Jaffna Dialog Optical Fibre Backbone Network Project
Kandy Ì Design and construction of Getambe flyover
Kalutara Piling works of District Hospital at Beruwala
Kegalle Dialog Optical Fibre Backbone Network Project
Kurunegala Central Expressway Project Section 3 (from Pothuhera to Galagedara) - Construction of Package 1M
Mannar Piling work for proposed 15MW wind power project at Nanatta
Matara Ì Dialog Optical Fibre Backbone Network Project
Matale Dialog Optical Fibre Backbone Network Project
Puttalam Dialog Optical Fibre Backbone Network Project
Ratnapura Ì Dialog Optical Fibre Backbone Network Project
Vavuniya Dialog Optical Fibre Backbone Network Project

KEY PROJECTS GRI 203-1, 203-2
Construction Roads and Highways
8.42% 1.48 Bn Significant

Contribution to Company
Turnover Worth of Projects Executed Projects
Nittambuwa – Pasyala Road Project
Overview scope of this new project involves the expansion

of a section of the Nittambuwa – Pasyala main
A project by the Road Development Authority
road to a four-lane standard carriageway. Given
(RDA), the Nittambuwa - Pasyala Road Project
that the width of a single lane would be 3.5m,
is a part of the National Road Rehabilitation
the work requires extensive land acquisition,
Plan, aimed at rehabilitating and improving
Ì Nittambuwa – Pasyala Road Project reorganising utilities and widening of the
the stretch of road between Kadawatha to
road with hard and soft shoulders, along with
Ì Central Expressway Project Section 3 Nittambuwa on the existing Colombo-Kandy
improvements to existing cross drainage
main Road.
structures, construction of elevated foot-
Access Engineering was awarded the contract walks and appropriate centre median/islands.
following the successful completion of the Improvements to the town centre at the Pasyala
previous project under the same initiative. The junction are also part of the overall project
scope.
Project Status FY 2022/23

Construction work of the project was slowed down due to the availability of limited funds with
work earmarked to resume in full scale in 2023/24.
Central Expressway Project Section 3
Overview embankment filling and rock fillings for soft

The proposed 4-lane link Expressway branching ground treatments before the construction of
from the Central Expressway will start from the expressway. The project scope also includes
Pothuhera and pass through Rambukkana and designing of structures including the Viaduct
Naranwala before ending in Galagedara thereby and the Overpass. The 120m long Viaduct will
providing easy access to the Kandy District from have four 30m spans with each span consisting
Colombo. of 10 beams, while the 20m Overpass will
include two spans with 5 beams per span. The
The section assigned to Access Engineering PLC scope of work also includes the construction of
involves clearing the trace of the road including basements, piling works for the structure and
rock blasting, followed by soil excavation, drainage work.

Work on the project commenced in the current financial year with the closure of adjacent roads
to facilitate rock blasting to remove approximately 300,000 Cubic metres of rock. In parallel, an
independent third party specialist registered with the GSMB and CEA was hired to monitor
social and environmental impacts such as noise, vibration, dust and ground disturbance on
a daily basis. In addition, a comprehensive pre-construction Crack Survey was carried out to
analyse likely future damage to structures within a 500m radius from the blast sites.
KEY PROJECTS
Construction Bridges and Flyovers
7.6% 1.33 Bn Significant

Flyover Connecting Baladaksha Mawatha and Chittampalam A Gardiner Mawatha
Overview The Slave Island Flyover Project was initiated

Slave Island located in the southern part of by the Road Development Authority (RDA)
Colombo City Is one of the busiest commercial as part of its ongoing efforts to reduce traffic
Ì Flyover Connecting Baladaksha hubs in Sri Lanka. The road network in the area bottlenecks in the greater Colombo area. The
Mawatha and Chittampalam A which offers connectivity to Fort / Pettah and proposed Slave Island flyover which comprises a
Galle Face continues to be highly congested 343 m long steel flyover consisting of two 3.5 m
Gardiner Mawatha wide lane carriageways for one-way traffic and
during peak hours. Also adding to the congestion
Ì Kohuwala Flyover two 2.0 m wide pedestrian walkways, will help
in Slave Island is the recent surge of real-estate
Ì Gatambe Flyover and mixed development projects in the area, alleviate many of the aforementioned problems.
all in close proximity to each other. Further, the The flyover will be built on pile foundations with
Ì T-Mall Flyover - Kenya
Coastal Line, one of the major railway lines in Sri a six span steel superstructure.
Lanka Railways, also runs through Slave Island
Access Engineering PLC was awarded the
with two level crossings - one on Justice Akbar
tender for the construction of this flyover over
Mawatha (nearby Slave Island Railway station)
the railway track and Beira Lake in Slave Island
and the other on Uttarananda Mawatha. With
by connecting Baladaksha Mawatha and the
both these being some of the most frequently
Chittampalam A Gardiner Mawatha. To handle
plied railway crossings in the country, the
the superstructure design and for technical
average number of gate closures exceeds 100
advice for the project, Access Engineering
per day, resulting in an estimated loss time of
joined hands with the Spanish Engineering
more than 3 hours per day .
Company - Centunion S.A.
.
As at the end of the current financial year approximately 73% of the overall project was
completed. Within the substructure, 4 piers out of 5, one of 2 abutments, the Baladaksha
Mawatha retaining wall and the flyover approach encompassing part of junction development
were completed, to allow for vehicular movement.
For the first time in a local flyover project, the steel superstructure fabrication was done in
partnership with a local contractor – Dockyard General Engineering Services (Pvt.) Ltd, a
company with a proven record in the end-to-end fabrication of large-scale structures. The
fabrication process saw a number of new innovative technologies being used including semi
robotic welding, automatic beam retrofitting and Computer Numerical Control (CNC) drilling
techniques. While the progress of the superstructure slowed down owing to delays in land
acquisition, fabrication was 100% completed by end 2022 enabling erection up to pier 4 to be
completed by end March 2023.
KEY PROJECTS

Kohuwala Flyover
Overview The Kohuwala Flyover is funded by the

The Kohuwala junction is a major intersection Government of Hungary with the design and
that offers connectivity between Colombo City supply of the superstructure entrusted to
and Colombo North and South subdivisions, Betonútépítő Group of Hungary - the main
making it one of the busiest and most contractor for the project.
congested intersections in the greater Colombo
Access Engineering PLC was awarded the sub-
area with high volumes of vehicular traffic
contract to construct the Kohuwala flyover
passing through on a daily basis.
including the assembling and installing of the
The Kohuwala Flyover Project was initiated by prefabricated steel superstructure supplied by
the Road Development Authority (RDA) under the main contractor in Hungary. In addition
the direction of the Ministry of Highways, as Access Engineering is responsible for the design
part of its ongoing efforts to reduce traffic and construction of substructures as well as the
bottlenecks in the greater Colombo area. The designing and construction of adjacent roads.
proposed 297 metre long flyover will consist
of a two lane carriageway built parallel to the
existing Colombo – Horana (B84) Road with a
minimum 5.2m vertical clearance to facilitate,
traffic flow underneath the flyover. The structure
will be facilitated with a service lane on either
side of the flyover.

The economic crisis in Sri Lanka in 2022 affected the progress of the project and construction
work was slowed down. However, we carried out substructure work and super structure
erection work of the flyover during the financial year utilising material available with us. By the
end of the financial year 55% of the total project was completed.
KEY PROJECTS

Gatambe Flyover
Overview comprise a two lane carriageway. The branch

The Gatambe junction, located between flyover covering 245 m long stretch of road will
Peradeniya and Kandy and Old Peradeniya comprise a single lane carriageway.
Kandy Road (A1) and the New Peradeniya Kandy
The project is funded by the Government of
Road (AB42 - William Gopallawa Mawatha), is
Hungary with the design and supply of the
one of the busiest intersections in the Central
superstructure entrusted to Betonútépítő Group
Province. Insufficient road capacity and poor
of Hungary - the main contractor for the project.
mobility management efforts over the years
have led to increased traffic congestion around
Access Engineering PLC was awarded the sub-
the Gatambe junction. Adding to the congestion
contract to construct the main flyover as well
is the railway crossing on William Gopallawa
as the branch flyover at Gatambe junction.
Mawatha located just after the Gatembe
As per the project scope, Access engineering
junction towards Kandy City. Inefficient control
PLC is required to assemble and install the
and safety systems at this level crossing have
prefabricated steel superstructure supplied by
become a major issue that puts pedestrians and
the main contractor in Hungary. In addition
vehicle users at serious risk of accidents.
Access Engineering is responsible for the design
and construction of substructures as well as
As a solution to ease off the traffic congestion at
the designing and construction of adjacent
the Gatambe Junction, the Road Development
roads, including necessary improvements to the
Authority has proposed to erect a flyover. The
junction and service roads to facilitate turning
proposed flyover will consist of two parts - the
movements and route traffic along A1 road
main flyover along the AB42 road and a branch
direction. Also included within the project scope
flyover from AB42 road to A1 road towards
are improvements and landscaping underneath
Peradeniya. The 429 m long main flyover
the flyover, the newly formed traffic islands and
with a minimum vertical clearance of 6.5 m
existing old bridge area.
over the railway and 5.2 m over the road, will

By the end of the current financial year approximately 19% of the total project was completed
with the remaining construction temporarily on hold.
KEY PROJECTS
UHURU GARDEN FOOT BRIDGE
BARRACKS FOOT BRIDGE

T – Mall Flyover Project – Kenya
Overview According to Kenyan media reports, close to 40

The T-Mall junction is among the busiest pedestrians have been killed in road crossing
intersections in the whole of Kenya, with a heavy related accidents with a further 80 persons
traffic load throughout the day, which worsens suffering injuries in January 2022 alone. Upon
at peak times between 6.30 am to 10.00 am and completion, the five footbridges are expected
4.00 pm to 7.30 pm. to largely enhance the safety of pedestrians
crossing the road while reducing the travel time
The project to construct a flyover at the T-Mall of motorists.
junction was initiated by the Kenya National
Highways Authority (KNHA) of the Ministry of In 2020, AEL was awarded the contract to
Transport Infrastructure, Housing and Urban construct Kenya’s first-ever steel flyover and 05
Development of Kenya. The project involves footbridges at the T-Mall junction in Nairobi.
the construction of a 405.8 meter long flyover
The project is a sub-contract from Centunion
and footbridges in 05 locations namely; T –
Española De Coordinacion Tecnica Y Financiera,
Mall Junction, Uhuru Garden, Barracks, Nayayo
S.A of Spain with whom Access Engineering
and Galariya, all of which are located along
has successfully executed several projects in Sri
the Mombasa and Langata Road, Nairobi. The
Lanka in the past.
footbridges are located where the recorded
pedestrian fatalities are highest in the city.

The entire project was successfully completed during the current financial year with all
components (i.e. T-Mall Flyover, T-Mall Footbridge, Galleria Footbridge, Nyayo Footbridge,
Barracks Footbridge & Uhuru Garden Footbridge) handed over ahead of schedule (by 14th
December 2022) resulting in a significant cost saving.
KEY PROJECTS
Construction Building Construction and Piling
36% 6.3 Bn Significant

Export Green Field Warehouse Facility at Ekala (EGF2)
Overview Fire Detection and Protection System. The fire

EGF 2 is a 700,000 Sq. Ft. integrated logistics system infrastructure included the fabrication
Ì Export Green Field Warehouse Facility at Ekala and warehousing facility developed by Access & installation of two 1500 m³ fire water tanks,
Ì Piling for the Proposed 350 MW Combined Cycle Logistics Park Ekala (Private) Limited, which is a a drain control system with 5 automated radial
Power Plant at Kerawalapitiya II 100% owned subsidiary of Access Engineering gates and 3 sluice gates which are connected
Ì Elliot Place Housing Project to the fire alarm system. Given the high fire
PLC. Developed on a Design, Build, Finance,
Ì Piling for Proposed Star Class Hotel risk, the fire control system was equipped
Own, Operate and Transfer (DBFOOT) basis, total
Ì Stadiumgama Housing Project with 3 drain lines designed to automatically
Ì Piling for the Proposed Container Freight investment required for the project was funded
by Access Engineering PLC. divert the flushed water to an isolated pond
Station at Kerawalapitiya
within 5 minutes, thus preventing harmful
Ì West Container Terminal
Being a fully owned subsidiary, it was required chemicals released from the fire extinguishers
Ì Public Car Park Facility at Union Place
for the construction management and contaminating on-site natural water bodies.
supervision staff of AEL to be fully deployed in All mechanical, electrical and plumbing work
the management of construction work. Access including the design, installation, testing and
Engineering PLC was also entrusted with civil, commissioning of all electrical systems and
mechanical, electrical, plumbing work as well power distribution systems, Generators, Medium
as landscaping and commissioning of utilities. and Low voltage systems, UPS, Lighting control
A notable achievement was the installation, and the Lightning protection systems, were fully
testing and commissioning of the automatic completed during the year.

Having commenced work on the project during the latter part of 2021/22, majority of work
was completed during the financial year under review despite innumerable challenges posed
by the external environment. The project is currently in the final stages of completion, prior to
the commencement of commercial operations during the 2nd quarter of 2023/24.
Piling Works for the Proposed 350 MW Combined Cycle Power Plant at Kerawalapitiya II
Overview As the Subcontractor for Piling, Access

Engineering was given the task of constructing
The Kerawalapitiya LNG Combined Cycle Power
250 Cast In-situ Piles of diameters of 600mm
Plant is a 350MW dual-fuel fired power project.
& 900mm including the Pile Integrity Tests
The primary fuel being used to power the plant
(PIT), Pile Driving Analyser (PDA) tests and Pile
will be liquefied natural gas. In case of shortage
hacking.
of liquefied natural gas, the plant will run on
Fuel, Oil/Diesel. The new power plant will have
the potential to generate 13% of the country’s
current electricity demand, approximately 2000
million electricity units annually.

The project which commenced on 11th March 2022 was successfully completed on 30th
September 2022.
KEY PROJECTS

Elliot Place Housing Project
Overview as well as a separate section allocated for drivers’

The Elliot Place Housing Project is an initiative and janitors’ quarters.
by the Urban Development Authority, to
The complex will also be equipped with
provide affordable housing units in the greater
common amenities such as a community hall,
Colombo area. The project comprises two 30
a gymnasium, a children’s play area, a swimming
storey (B+G+28) towers, together consisting of
pool, a supermarket, shops and a laundry. In
400 housing units. The complex will comprise of
keeping with the latest global trends, the entire
both 2-bedroom and 3-bedroom housing units.
complex will be powered by a 40 KVA solar
The 2-bedroom units are designed with a floor
power system and will also have a rainwater
area of 850 Sq. Ft, along with two different types
harvesting system.
of the 3-bedroom units - a smaller floor area of
1,050 Sq. Ft and a larger unit with a floor area
Access Engineering PLC was awarded the tender
of 1,250 Sq. Ft. All units consist of features such
to design and build the Elliot Place Housing
as living, dining, kitchen, attached bathrooms, a
Project as per the above specifications.
common toilet, utility room and a balcony.
Both towers will also have dedicated parking

structures, car charging points, car washing bays

Work on the project which was ongoing at the start of the financial year, slowed down due to
the economic crisis. However, work is earmarked to resume in full scale in 2023/24.
Piling for Proposed Star Class Hotel
Overview As the contractor for the project, Access

Engineering PLC was tasked with constructing
The BOI approved hotel project, which will
a 276m long Diaphragm wall (D-wall) for the
consist of 30 stories + 4 basements, is to be
proposed building which is situated at 594,
constructed and operated by Damro Leisure
Galle Road, Colombo 04. The contract also
Private Limited - a subsidiary of the Damro Group.
involves Hacking up to cut-off level and casting
of the Capping beam to increase the rigidity of
the foundations and reduce movement.

Phase I of the project which commenced on 23rd January 2023 involved construction of the
D-wall. While adhering to the recommended wall depth of approximately 26 m, the innovative
Cross Hole Sonic Logging (CSL) technique was introduced to safeguard the structural integrity
of the wall. The CSL technique has helped to identify any weak spots prior to excavation in
order to facilitate necessary risk mitigating action to safeguard the structural integrity of the
wall.
Moreover, fabrication and lifting of the heavy reinforcement cage (24 ~ 28 m) was a major
challenge especially given that the site is located in a highly residential and commercial
environment with limited space availability. Nonetheless the project made good progress to
reach the 20% completion target by end March 2023.
KEY PROJECTS

Stadiumgama Housing Project
Overview Access Engineering PLC as the main contractor

The Stadiumgama Housing Project is an for the project is required to design and build
initiative spearheaded by the Ministry of Urban the entire complex. The project scope includes
Development and Housing to construct 1,000 construction of a ground floor parking area,
housing units in Colombo 14 for low income provision of electricity, water supply, fire
earners and is funded by Asia Infrastructure protection, elevators and emergency stairs,
Investment Bank (AIIB) of China. The 1,000 units wastewater and sewer system and stormwater
will be spread across four blocks, with each drainage system as well as landscaping and
block 14-storeys high. Each housing unit will construction of the road networks.
consist of 2 bedrooms, a living room, kitchen,
bathroom, and balcony across a floor capacity
of 500 Sq. Ft. The complex will also consist of a
nursery care unit, a supermarket, 19 shops and
46 parking slots per building.

By the end of the financial year, approximately 86% of the overall project was completed.
Piling for the Proposed Container Freight Station at Kerawalapitiya
Overview consists of 27 loading docks and 11,000 pallet

positions with a storage capacity of 15,000
The proposed development envisages
Cubic Meter (CBM).
commissioning a state – of – the – art, 100,000
sq. ft. container freight station in Mabole,
Access Engineering secured the contract to
Wattala. The proposed warehouse is
construct cast In-situ bored piles consisting of
strategically located in close proximity to
600mm, 800mm & 1000 mm diameters piles.
the Port of Colombo and the Bandaranaike
The contract also consisted of conducting Pile
International Airport and with easy access to the
Integrity Tests (PIT), The Pile Driving Analyzer
main highways / expressways in the Country.
(PDA) tests and Pile hacking.
Designed to cater to a wide range of export
consolidation and supply chain management
needs of diverse industry verticals, the facility

The project commenced in December 2022 and was successfully completed in March 2023.
KEY PROJECTS

West Container Terminal
Overview the region and is expected to elevate its ranking

by two positions to 20th among the world’s
The Colombo West International Terminal
top container terminals. It will also transform
Pvt. Ltd. is a consortium comprising the Sri
the port’s position in terms of global shipping
Lankan conglomerate - John Keells Holdings
connectivity, which is currently 12th globally.
PLC; the Sri Lanka Ports Authority and India’s
When commissioned, CWIT will be the largest
largest port operator, Adani Ports and SEZ Ltd.
and deepest container terminal in Sri Lanka.
The consortium is set to develop Colombo
With a quay length of 1,400 meters and an
West International Terminal (CWIT) on a Build,
alongside depth of 20 meters, CWIT will be
Operate and Transfer (BOT) basis for a period of
equipped to handle Ultra Large Container
35 years.
Vessels with capacities of 24,000 TEUs. The new
The development of this terminal will reinforce terminal’s annual cargo handling capacity is
Colombo Port’s position as the primary hub in likely to exceed 3.2 Mn TEUs.

Access Engineering PLC was awarded the Construction work of Backup Yard, Utilities and allied
services (Package 01) and Construction of Buildings ( Package 02).
Package-01 – Construction work would involve construction of the 350,000 m2 (86 Acres)
container terminal platform, including major works such as excavation, leveling and compaction
of the reclaimed land, sand filling, sub-base filling, cement-based macadam filling, manufacturing,
and laying of interlocking blocks, concrete structures, laying of utility service lines, road works,
construction of rail for gantry cranes, construction of steel structures, MEP works, etc.
Package-02 – Comprising the construction work of buildings for West Container Terminal
including major works such as Substructures, Superstructures and Finishes of 29 buildings, which
covers a floor area of 13,366 m2.
Construction work on Package 01 commenced in February 2023, while the construction work on
Package 02 is set to commence in 2023/24.
Public Car Park Facility at Union Place
Overview The development will consist of 285 car parking

bays and over 20,000 Sq. Ft. of retail and office
This is a project initiated by the Urban
space upon full completion.
Development Authority (UDA) to commission
public car parks to reduce traffic congestion in
key cities around the Country.

The project made satisfactory progress in the current financial year amidst some notable
challenges encountered as a result of the economic crisis in the country. Additional resources
were mobilized towards completing the project during the daytime which ensured the
completion of the project in a timely manner.
KEY PROJECTS
Construction Telecommunications
2% 341 Mn Significant
Dialog Optical Fibre Network Development Project
Overview Access Engineering was contracted to manage

the end-to-end deployment of Dialog optical
The project is an initiative by Dialog Broadband
fibre network including pre-installation survey,
Networks (Private) Limited to enhance and
supply of ducts, network deployment covering
develop island-wide internet penetration levels
through the introduction of state-of-the-art the installation of ducts, manholes and hand
Ì Dialog Optical Fibre Network holes, road reinstatement, installation of cables,
wireless technology for broadband internet
Development Project delivery. splicing and testing and commissioning the
project.
Ì SLT New Connection Project

In the current financial year, a total of over 100 Dialog Mobile sites were connected, a
significantly higher number than the client’s targeted contract performance criteria.
In keeping with the latest global standards, HDD (Horizontal Directional Drilling), a trench-less
method for optical fibre laying was continued to be used in order to minimise the damage to
the road surfaces in very congested and newly paved road sections where open cut trenching
is prohibited. For low depth trenching on asphalt and concrete surfaced roads, the method of
optical fibre laying by Micro trenching method was introduced in order to reduce the damages
to the road surface due to micro cut and also minimise the damages to the underground
utilities of third parties due to low depth trenching in city areas.
SLT New Connection Project
Overview Access Engineering PLC as the main contractor

for this project was assigned to carry out the
Sri Lanka Telecom PLC’s FTTH (Fibre to the
home) implementation project was launched installation of new telephone line connections,
PEO TV connections, FTTH connections, fault
with the aim of providing high speed internet
rectification and maintenance. In addition,
and related facilities to households in several
Access Engineering is also tasked with multi-
provinces around the country using optical fibre
service access node (MSAN) installation and
cables.
development and expansion of the optical fibre
networks in the said areas.

Work on the project continued across the Western, Southern, Sabaragamuwa, Central, North
Western and Eastern Provinces, with over 22 Km’s of fibre optic network development and over
1,215 new subscriber FTTH connections were completed during the year.
GROUP PERFORMANCE REVIEW
CONSTRUCTION
AEL East Africa Limited

ALLERIA FOOT BRIDGE
A fully owned subsidiary of Access engineering

PLC, AEL East Africa Limited was incorporated,
in the Republic of Kenya for the purpose of
undertaking the construction of Kenya’s first-
ever steel flyover at the T-Mall junction in
Nairobi and 05 footbridges in Nyayo, T – Mall
Junction, Uhuru Garden, Barracks and Galariya.
The flyover and the footbridges are expected to
reduce traffic congestion substantially, directly
resulting in improved vehicular movement,
lower environmental pollution and lower
vehicle operating costs.
The project was successfully concluded in the

current financial year with construction work
on all footbridges and the flyover completed
ahead of schedule and handed over to Kenya
National Highway Agency.
Transactions carried out in Kenya are

denominated in Euro. However as per the
Company policy, these are converted to the
reporting currency which is LKR and reported
taking into consideration the spot rate
prevailing on the date of the transaction. Such
reported transactions are consolidated with the
financials of AEL.
CONSTRUCTION
Access Projects (Pvt) Ltd.
Access Projects (Private) Limited was incorporated in 2007. The Company is a CIDA C1 graded Ì Finishing works & Installation of Doors &
contractor for building construction and a SP 1 graded contractor for aluminium works, floor, wall Door Frames of Capital Heights – Rajagiriya
and ceiling finishes. The Company is a member of the National Construction Association of Sri Lanka
Ì Supply & Installation of Aluminum Doors &
(NCASL) and has obtained the ISO 9001:2015 Quality Management System (QMS) accreditation.
Windows of Trizen Mix Development
Since 2007 Access Projects has been the sole licensed fabricator in Sri Lanka for ALUK Group S.P.A Ì Supply and installation of glass handrails of
(Italy) proprietary doors, windows and facades. More recently, the Company also secured proprietary Prime Grand – Ward Place
licenses from R.A.M Metal Industries LLC (UAE) and Many Best Building and Material Co., Ltd (China)
Ì Structural work with selected finishing
for metal ceiling systems.
work of Serenia Residences – Talpe, Galle
The main activities of the Company include building construction, aluminium construction, supply Ì Supply & Installation of Aluminum Doors
and installation of ceilings, supply and installation of fire doors, supply and installation of glazed & Windows for Serenia Residences – Talpe,
handrails and supply and installation of raised flooring. Galle
Ì Supply and installation of Aluminum

The economic crisis, rising inflation and other challenges disrupted the progress of many ongoing
Windows, Doors & Hand Rails of 606 The
projects in the current financial year. Nonetheless the Company undertook the following projects
Address Mix Development
during the year;
Ì Super-structure work for a Six Unit
Ì Supply, Coordination and Installation Supervision of Ceilings for Block 01, 02, 03, & 04 of the Apartment Development at Pamankada
Defence Headquarters Complex at Akuregoda
Ì Installation of Sky Bridge Façade &
Ì Supply and Installation of Proprietary Doors, Frames and Hardware for Block 01, 02, 03, & 04 of associated works, preparation & fabrication
the Defence Headquarters Complex at Akuregoda of Façade Glassing Material of podium for
ITC Colombo 01
Ì Design & Build & Installation of Aluminum Doors, Windows & Glazing works of Capital Heights
– Rajagiriya Ì Design & Supply of External and Internal
Aluminum Doors & Windows for
Crossroads Project Island 3, Maldives
CONSTRUCTION
Access – CHEC JV (Pvt) Ltd.
Access – CHEC JV (Private) Limited was

incorporated in 2021 with Access Engineering
PLC having the controlling interest of 51% share
ownership of the Company. The company
has undertaken the construction of the
East Container Terminal (ECT) at the Port of
Colombo - the second deep-water terminal to
be developed since the Colombo International
Container Terminal (CICT).
Phase I of the project to increase the ECT’s

berthing capacity to 600m, commenced in
early 2022 and remains in progress, while phase
II involving the full terminal development up
to 1,320m to facilitate 3M TEU throughput
capacity, is scheduled to commence in 2024.
CONSTRUCTION RELATED MATERIAL
Lanka AAC (Pvt) Ltd.
Lanka AAC (Pvt) Ltd, was established in 2017 and was acquired by Access Engineering PLC in late
2021. Since its inception, the Company has earned a reputation as the leading manufacturer of
Autoclaved Aerated Concrete (AAC) blocks in Sri Lanka. The AAC block is mainly produced as cuboid
in three standard sizes. Produced using mainly fly ash - a non-toxic industrial waste, the AAC block
is deemed to have a lower environmental footprint and is thus positioned in green construction
materials space.
The Company’s operations in the current financial year were severely affected by the challenges
arising from the 2022 economic crisis in the Country. The shortage of input materials owing to
import restrictions, the decline in demand for AAC blocks due to the construction sector slowdown
along with inflation induced cost increases and high finance costs were among the major issues
that dampened the Company’s performance in FY 2022/23. Nevertheless, adapting quickly to
tackle these challenges, the Company pursued alternative opportunities to safeguard revenue
targets. Prioritising export market orientation, the Company succeeded in growing its order book by
securing several new overseas contracts to supply AAC blocks to projects in the Maldives.
Going forward, the main focus would be to explore opportunities for the better use of waste / by-
products generated during the AAC block manufacturing process. Investing in backward integration
to safeguard raw material sources is also seen as a medium term priority.
PROPERTY
Access Realties (Pvt) Ltd.
Access Realties (Pvt) Ltd. is a fully owned subsidiary of Access Engineering PLC. The Company has Tenant Occupancy
been in operation for the past 25 years and functions as the proprietor and managing agent of
Access Tower I (North), a modern contemporary 12-storey office complex providing approximately
120,000 sq. ft. of office space on par with international standards. Access Tower I currently houses 23%
many leading corporates, including the head office of Access Engineering PLC. 27%
In FY 2022/23 Access Tower I recorded a 100% occupancy rate with more than 25% of the tenants
occupying the building for over 10 years.
20%
23%
7%
Below 1 5 - Mar Above 10

1 to 10 - May
Access Realties II (Pvt) Ltd.
Access Realties II (Pvt) Ltd. is a fully owned subsidiary of Access Realties (Pvt) Ltd. Access Realties Tenant Occupancy
II (Pvt) Ltd owns and manages Access Tower II (South), an ultra modern high rise office complex
comprising approximately 200,000 sq. ft of grade-A office space spread across 30 levels. In addition 0% 8%
to its world class facilities and prime location in close proximity to Colombo’s financial district,
Access Tower II (South) also boasts breathtaking views of the Indian Ocean, Beira Lake, and the 44%
Colombo skyline. Ongoing improvements undertaken during the year saw new green spaces being
created around the building exterior and surrounding the parking floors.
The Tower’s diverse clientele from a wide range of sectors, include local conglomerates as well as
multinational organisations. In the current financial year, the Company registered approximately 36%
95% occupancy levels, with more than 40% of the tenants occupying the building for over 5 years.
12%
Below 1 5 to 10
1 to 3 Above 10
3 to 5
PROPERTY
Harbour Village (Pvt) Ltd.
Harbour Village Private Limited represents a partnership between Access Engineering PLC with Marina Square Uptown Colombo amplifies
China Harbour Engineering Company Limited (CHEC), wherein Access Engineering PLC has a the concept of Urban Luxury throughout the
controlling 66.67% share ownership while CHEC - the developer of the Colombo Port City holds residential units and the common facilities. The
the balance 33.33%. infinity pool, the club house, games room, large
kids play areas as well as the indoor and outdoor
Harbour Village Private Limited has undertaken the development of ‘Marina Square Uptown
gyms, are all designed with the discerning
Colombo’, Sri Lanka’s largest single – phase oceanfront mix development project comprising 1,088
city dweller in mind, while the expansive 2
residential condominium units. The ocean front location of Marina Square offers magnificent and
acres dedicated for walking/ jogging tracks
breathtakingly captivating views of the ocean, city and mountains from within most of the condos
and garden spaces are the epitome of urban
in the complex. Marina Square Uptown Colombo is undoubtedly the best location to watch the
luxury. The commercial space situated within
future of Colombo City unfolding with the Port City Development taking shape over the next few
the complex that houses the food court, retail
decades. The development is also a mere 400 metres away from the inner – city Elevated Expressway
outlets, wellness services and selected office
Network currently being built.
spaces, has also been designed to complement
The entire complex is spread across a total floor area of over 2.1 Mn. Sq. Ft. , with approximately 1.1 the needs of the residents in Marina Square
Mn. Sq. Ft. dedicated to residential units, 150,000 Sq. Ft. of commercial space and the remainder Uptown Colombo.
allocated for common spaces and amenities.
The complex, which has been conceptualised
in line with global sustainability principles also
includes energy efficient electrical equipment
and lighting, rainwater harvesting infrastructure
and a dedicated sewer line constructed with the
coordination of Colombo Municipal Council.
PROPERTY
Blue Star Realties (Pvt) Ltd.
Blue Star Realties (Private) Limited is a property development company, wherein Access Engineering
PLC holds the controlling interest of 60% ownership. The flagship project of Blue Star Realties (Private)
Limited is ‘Capital Heights’ Rajagiriya, a BOI approved multi storey condominium mix development
project comprising 242 luxury units representing a total square foot area of 640,000 Sq. Ft and a
saleable area of 425,000 Sq. Ft.
The development includes a range of world class facilities including a large infinity swimming pool,
disabled parking and access, a sewerage treatment plant and rainwater harvesting infrastructure
among others. Capital Heights is also structurally designed to withstand earthquakes up to 6 on the
Richter Scale even though Colombo has been classified as Seismic Zone ‘0’ under the International
Building Code. With its unique curvilinear design, fine finishes, prime location and superior
construction techniques, Capital Heights is comparable to any high end condominium complex
anywhere in the world.
Capital Heights, with its premium location to the finest quality products and world renowned brands
offer potential owners both a perfect home and a solid investment.
With construction fully completed and having secured the approval from the Condominium
Management Authority, handing over of units to buyers commenced from early 2023.
PROPERTY
WUS Logistics (Pvt) Ltd.
WUS Logistics Private Limited (WUS) is a fully owned subsidiary of Access Engineering PLC. The steel fibre reinforcement and large pours was
Company owns and manages the largest single-roof warehouse in Sri Lanka and the second largest designed by CoGri Singapore and constructed
in South Asia. The complex is designed as a state-of-the-art Logistics City spread over a 9 acre area jointly by the team of CoGri Asia and Access
encompassing warehouse space covering 430,000 Sq. Ft. The facility also includes 32,000 Sq. Ft of ‘A’ Engineering PLC. The specialised flooring
grade office space built to comply with the latest ASHRAE standards. concrete was mixed at Access Engineering’s
own batching plant at Peliyagoda. This was the
The facility has the capacity to handle 720 twenty-foot equivalent container units including the first time such large pours per bay and such a
installation of a gantry crane and all support equipment. Equipped with 50 loading bays having large floor in total was constructed in Sri Lanka.
self-levelling dock levellers and fast opening sectional doors, the facility is geared to handle as many The entire 400,000+ Sq. Ft floor was completed
as 50, 40-foot containers simultaneously. To add to loading and MHE movement efficiency without within 45 working days.
obstruction, the warehouse has only 2 internal columns per portal and a maximum span between
the internal columns of 60m.
The warehouse has a 15.5 metre eave height and ridge height of 22.5 metre internally to enable
high racking in both narrow aisle (NA) and very narrow aisle (VNA) configuration. The warehouse
has the capacity to store 100,000+ euro pallets without tapered racking making it the highest
density storage facility in the country. Armoured joints comprising 10,000 Sq. Ft blocks are designed
to support racking with minimal material handling equipment (MHE) crossing, while the floor is
designed to withstand a punching load of 150 Kilo Newtons (15 tons) and a uniform distributed
load of 75 kilo newtons (7.5 tons) per square metre. The floor, which is Superflat FM2 graded with
GRI 201-4
PROPERTY
Access Logistics Park Access Logistics (Pvt) Ltd.

Ekala (Pvt) Ltd.
Access Logistics Private Limited is a fully owned subsidiary of Access
Engineering PLC. The Company engages in the design, development and
management of logistics and industrial facilities and buildings.
ARL Elevate (Pvt) Ltd.
ARL Elevate (Private) Limited is a fully owned subsidiary of Access

Engineering PLC. The Company operates and manages the Gymnasium of
Access Tower (South) building. Subsequent to the restructuring exercise
undertaken the restaurant, rooftop bar and the members lounge located
Access Logistics Park Ekala (Private) Limited is a fully owned subsidiary
at the Access Tower (South) building, were handed over to Jetwing Hotels
of Access Engineering PLC. The Company was incorporated in 2021 and
for management under the “Vertical” brand.
immediately commenced construction of an Export Greenfield (EGF)
Warehouse and Logistics Facility. The complex is being constructed on a
plot of land obtained from the Urban Development Authority (UDA) on
a DBFOOT (Design, Build, Finance, Own, Operate and Transfer) basis for a
lease term of 50 years.
Once completed, the facility will comprise approximately 700,000 Sq. Ft.
of dedicated logistics space along with another 32,000 Sq. Ft. of premium
Grade ‘A’ office space and a world-class distribution centre equipped to
offer state-of-the-art mechanical and electrical services encompassing;
Ì Logistics/warehouse facilities for cargo supply, value addition and

storage
Ì Final products assembling, parts assembling, customising or related

value addition facilities etc.
Ì Storage, packing, packaging and repackaging, labelling the products,

temperature-controlled facilities for consolidation of products
and redistribution or related valuation, bar code identification,
distributions, related value addition etc.
Ì Sea – Air Services or export, re – exports based products with value

addition to strengthening the Colombo Airport & Port cargo supply
Ì Providing front end services to global operations, hub and regional

headquarters, operations for management of finances, supply chain
and billing operations, logistics services such as bonded warehouse
facilities, etc.
The complex will also include staff accommodation, medical and

recreational facilities such as basketball courts, gymnasium, etc.
Work on the facility remains in progress and is scheduled to be completed

during FY 2023/24.
AUTOMOBILE
Sathosa Motors PLC
Sathosa Motors PLC (SML) is the authorized distributor for Isuzu motor vehicles in Sri Lanka. The
Company engages in new vehicle sales, sale of spare parts, sale of Isuzu marine engines and
workshop operations. Given that Isuzu is one of the most sought after vehicle brands in Sri Lanka,
SML enjoys a substantial market share in the Country’s mainstream Japanese, light commercial
vehicle market.
SML operates through a network of 10 branches located in Vauxhall street, Peliyagoda, Panchikawatha,
Kurunegala, Matara, Ratnapura, Negombo, Dambulla, Kandy and Badulla. Additionally, an island-
wide dealer network of more than 120 dealers play a key role in driving the sale of Isuzu spare parts.
Being a predominantly vehicle sales oriented Company, the ongoing restriction on the importation
of vehicles remains the single largest challenge that affected SML’s performance in the current
financial year. Apart from this, import restrictions imposed by the government in the wake of the
shortage of foreign exchange liquidity meant the Company was unable to import vehicle spares
and marine engines as well. Even after the import restrictions on these items were lifted, SML had
to contend with sizable price escalations resulting from the unprecedented depreciation of the LKR
against the USD. High prices were also responsible for the drop in the demand for spare parts and
marine engines.
Moreover with the continuity of operations at the workshop affected by the fuel shortage and
additional pressure on the bottom line owing to high finance costs, cost containment remained the
main focus for the current financial year.
During the year under review the Company did not carry out any transactions in the Republic of
Maldives.
AUTOMOBILE
Access Motors (Pvt) Ltd.
Access Motors (Pvt) Ltd is the sole agent and authorised distributor in Sri Lanka for the world
renowned high end vehicle brands - Jaguar and Land Rover (JLR). With its fully fledged 3S (Sales,
Service & Spare Parts) facility in Boralesgamuwa and state of the art body shops in Raththanapitiya
and Boralesgamuwa, Access Motors is equipped to offer a world-class experience to JLR customers
around Sri Lanka.
From a business perspective, the dependence on government policy places a heavy burden on the
core business activities of the Company. For instance, the restriction on vehicle imports introduced
by the government at the onset of the COVID-19 pandemic in 2020 and remains in force to date,
has proven to be a major setback for all automobile companies in Sri Lanka, including Access
Motors (Pvt) Ltd. Moreover, in the current financial year the Automobile industry as a whole was
adversely affected by the foreign exchange crisis that emerged in 2022. Given the severity of the
challenges faced by the industry over the past few years, the Ceylon Motor Traders’ Association has
requested the government to provide a clear direction regarding the duration of the vehicle import
suspension. The Association also continues to reiterate the need for an appropriate regulatory
framework to govern automotive imports and ensure that only legitimate importers vetted by the
Government are granted the authority to import.
Additionally, the fuel scarcity in the first half of the financial year impacted the continuity of
operations at the Company’s workshops, while the rapid depreciation of the LKR against the USD
forced the company to raise the prices of oil, parts and other components, which in turn had a
negative impact on the demand for such products.
In light of the current challenges, going forward the Company expects to pivot more towards
electric vehicles and has begun working towards launching the new All-Electric Range Rover by end
of 2023. Plans are also underway to improve value added services offered to existing customers, in
particular by offering regional warranty and general registration and also targeting the grey market
customers for the extended/renewal warranty. At the same time it is hoped that promoting the
multi-brand offering at the Company’s Body Shop at Rattanapitiya will help to further grow the
customer base.
MECHANICAL ENGINEERING
ZPMC Lanka Company (Pvt) Ltd.
ZPMC Lanka Company Private Limited is a Joint Venture between Access Engineering PLC &
Shanghai Zhenhua Heavy Industries Co. Ltd. (ZPMC China). This is the first ever Joint Venture formed
by ZPMC China, outside their home Country.
The core business activities of ZPMC Company Lanka involve the supply of port services including
commissioning, repair and maintenance of port machinery. In the year under review, the Company
continued to serve all leading port operators in Sri Lanka namely the Colombo International
Container Terminals (CICT), South Asia Gateway Terminals (SAGT) and the Hambantota International
Port Group (HIPG). The Company’s services were also sought by several international ports such as
the Qasim International Container Terminals (QICT) in Pakistan, the South Carolina Ports Authority
(SC Ports) – USA, the Oman International Container Terminal (OICT) and the Port of Salalah in Oman,
Mombasa Port – Kenya, Lekki Port in Nigeria, Port of Pointe Noire – Congo, as well as the Asia World
Port Terminal in Myanmar.
The key activities conducted at these ports included commissioning, repair and maintenance, of
Ship to Shore (STS) cranes, Rubber Tyred Gantry (RTG) cranes, Hybrid Rubber Tyred Gantry (HRTG)
cranes and Automatic Rubber Tyred Gantry (ARTG) cranes. In addition the Company was also
involved in modification of port machinery, upgrading of Gantry Crane control systems as well as
project engineering consultancy and control systems training.

MANAGEMENT DISCUSSION
AND ANALYSIS
Capital Management Review 84 GRI Content Index 123
Financial Capital 84 Independent Assurance Report to Access Engineering PLC 126
Manufactured Capital 89
Intellectual Capital 93
Human Capital 98
Social and Relationship Capital 106
Natural Capital 115
CAPITAL MANAGEMENT REVIEW

Financial Capital
Our Financial Capital
Our Financial Capital comprises the financial resources - equity and
debt capital, liquid assets as well as the reserves ploughed back to the
business, which together create the ecosystem to enable the smooth
functioning of day to day operations, while facilitating business
scalability over time
Management Approach
We follow a comprehensive 360 degree
approach to managing financial capital,
based on prudent cashflow management
and disciplined capital planning underscored
by strong risk fundamentals. These efforts are
further supported by governance and oversight
coupled with an intense focus on ethics
Revenue
TURNOVER
Despite the worst impact on the industry by the Revenue 2021/22
economic crisis, AEL succeeded in recording Automobile
a turnover of LKR 20.56 Bn and LKR 17.56 Bn
Property
at the Group and Company level respectively. and Other
This denoted Year – on – Year (YoY) decline of
Construction
48.11% and 47.34 % over the figures reported related material
by the Group and Company respectively in the
Construction
previous financial year.
Revenue 2022/23
-20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000
Rs. Mn
GRI 201-1
Direct Economic Value Generated And Distributed
Value Created 2022/23 2021/22

LKR LKR
Value Created
Gross Revenue 17,556,370,250 33,336,537,165
(-) Cost of Goods and Services (Excluding Depreciation and remuneration to employees) (11,113,317,287) (25,960,162,678)
Value added from operations 6,443,052,963 7,376,374,487
Other Income 2,941,417,122 1,437,024,525

Finance Income 491,183,206 117,394,276
Total Value Created 9,875,653,291 8,930,793,288
Value Distributed
Operating Costs 1,150,311,751 749,955,465
Remuneration to the Employees 1,733,044,561 3,281,029,472
Directors' Fees and Remuneration 29,063,375 32,550,000
Community Investments 906,145 18,012,771
Government Levies 388,745 742,076
Corporate Taxes 331,906,117 418,431,650
Interest Cost 4,040,304,069 1,024,484,359
Non Controlling Interest - -
Dividends 750,000,000 750,000,000
Total Value Distributed 8,035,924,763 6,275,205,792
Total Value Retained 1,839,728,528 2,655,587,496
Total Value Distributed and Retained 9,875,653,291 8,930,793,288
Value Retained
Profit Retained 845,324,279 1,744,154,433
Depreciation & Amortisation 994,404,249 911,433,063
Total Value Retained 1,839,728,528 2,655,587,496
The decline in Company turnover was

devaluation of the Rupee against all major Building and Other Construction
mainly due to the contraction in the Sale of
global currencies had a negative impact on this
Construction related material and the core The building and other construction segment,
sector as well.
Construction business which amounted to a which reported a YoY decline of 41.37% in
YoY decline of 52.93% and 50.81% respectively. Sales of Construction-Related Material revenue, contributed 34.02% to the overall
This contraction was primarily due to the Group turnover, becoming the main contributor
Sale of construction related material was the
limitations experienced in the disbursement to the Group Turnover despite the temporary
second largest contributor to Group top-
of funds for infrastructure development by the disruption caused in two major building
line accounting for 35.88%. In line with the
treasury and the Bi -lateral and Multi-lateral projects; the Elliot Place Housing Project and
contraction of the economy in 2022, the demand
funding agencies. Despite this negative impact the Orugodawatta Housing Project.
for construction material experienced a marked
these two segments contributed 83.86% of the
reduction resulting in a YoY decline of 52.93%
Group turnover for FY 2022/23. Construction work of the Stadiumgama Housing
in revenue compared to the previous year. This
Project which involves the construction of 1,000
segment was able to record a turnover of LKR
The main positive contributors to Group housing units for the underserved continued
7.38 Bn primarily with the supply of asphalt and
Turnover came from the property development throughout the year becoming the major
ready-mix concrete both to external customers
segment, which reported a 81.13% YoY revenue contributor to this sector. Additionally, the three
and related party companies notwithstanding
growth. On the contrary, revenue recorded by piling projects undertaken in Kerawalapitiya
the negative market forces.
the automobile sector showed a decline of and Colombo also contributed to this segment’s
38.45% YoY on the back of continuous import turnover.
restrictions imposed by the government on the
importing of new vehicles since 2020. The steep

Financial Capital
Roads and Highway construction has been in effect from 2020 and the 2022 Administration and other expenses as a
The Roads and Highways segment contributed economic crisis further hampered our ability percentage of Group and Company revenue
LKR 1.48 Bn (7.19%) towards group revenue for to import new vehicles and spare parts. Further increased from 5.60 % to 13.83 % and from
FY 2022/23, which was a YoY decline of 56.23% the workshop operations too, got negatively 3.49% to 9.21% respectively compared to the
compared to the previous year. affected by the economic crisis which resulted previous year aligning with the inflationary
in extended power cuts and utility shortages. pressure and fixed overheads. This cost increase
This was mainly due to the temporary disruption was absorbed mainly via healthy gross profit
caused in the Nittambuwa Pasyala Road Project REVENUE COMPOSITION margins which finally resulted in an improved
and the Integrated Roads (I-Roads) project. The EBIT at Group and Company level of LKR 8,816
construction work of Package 1M of the Central 8% Mn and LKR 6,002 Mn respectively. Further the
2%
Expressway Project Section III from Pothuhera 50% Operating Profit margins too have increased
to Galagedara also experienced a slow progress significantly at Group and Company level
during the year due to the limited availability of from 10.63% to 38.09% and 11.81% to 31.39%
material, fuel, and explosives. respectively.
2021-22
EBIT
Bridge construction
LKR Mn %
The Bridge construction segment recorded a
YoY decrease of 58.32% due to the temporary 10,000 50
40%
disruption experienced in all three ongoing
projects; the construction of Kohuwela and 8,000 40
Gatambe flyovers which are funded by the
Construction Segment
Government of Hungary and the construction 6,000 30
Sales of Construction Related Material
of Baladaksha Mawatha Flyover which is funded
Property and other
by the treasury. 4,000 20
Automobile
Nevertheless, these three projects collectively 2,000 10
contributed well over LKR 1 Bn to the Group’s REVENUE COMPOSITION
top – line during the financial year. 0 0
9% 2019/20 2020/21 2021/22 2022/23
PROPERTY 48%
7%
EBIT -Company (LKR Mn)
During the year both our office buildings, Access
EBIT - Group (LKR Mn)
Tower I & II experienced very high levels of
occupancy despite the economic crisis. Further, EBIT Margin-Company (%)
2022-23 EBIT Margin- Group (%)
this segment was supported by the rental
income of Our 425,000 Sq. Ft. integrated logistics
and warehousing facility at Kimbulapitiya which
was occupied during the year. As a result, the FINANCE EXPENSES/INCOME
36%
property segment’s contribution to the Group Interest expenses as a percentage of revenue
Turnover has increased significantly from 1.95% increased significantly to 23.13% (2021/22 –
to 6.79% compared to the previous year. 3.88%) and 25.07% (2020/21 – 4.26%) at Group
Construction Segment
Sales of Construction Related Material and Company levels respectively due to the
This segment will further be strengthened with
Property and other unprecedented increase in both the policy rates
the commencement of our new 700,000 Sq. Ft.
Automobile of the Central Bank and the average prime rate
integrated logistics and warehousing facility in
of domestic commercial banks.
Ekala from the second quarter of FY 23/24.
Profitability
The resultant finance cost was LKR 4,396 Mn
AUTOMOBILE Despite the decline of revenue reported by all
and LKR 4,040 Mn at the Group and Company
segments except the Property segment, both
The automobile sector contributed LKR 1.92 level respectively.
the Group and the Company were able to
Bn to (9.34% ) Group Turnover during the FY
report gross profits of LKR 5,859 Mn. and LKR
2022/23. The high cost of funding associated with the
4,186 Mn respectively for FY 2022/23 reflecting
increases in the lending rates made borrowing,
YoY increases of 10.30% and 14.27% respectively
The performance of this sector was severely non serviceable or sustainable. As a proactive
over the previous financial year. This was a direct
affected by the ongoing import restrictions that approach the company successfully restructured
result of our imposed operational efficiency
prevailed throughout the year. This restriction
and improved asset utilisation.
its loan portfolio with the lending institutions/ Earnings per ordinary share decreased from LKR CAPITAL STRUCTURE
banks which made borrowings sustainable. The 5.11 to LKR 2.48 at the Group level and from LKR
The gearing ratio, which is calculated as
positive impact of this restructuring will be even 2.58 to LKR 1.44 at the Company level. In the
a proportion of the total interest-bearing
more evident in the FY 23/24. year under review, the Board of the Directors of
liabilities to equity, decreased from 75.20%
the Company approved a final dividend of LKR.
to 50.79% for the Group and from 89.47% to
Interest income at Group and Company levels 0.75 per share based on previous year’s profit
62.22% for the Company. This decrease was due
was LKR. 576 Mn and LKR. 491 Mn respectively. (2021/22) which amounted to a total dividend
to the recovery of the outstanding from the
payout of LKR. 750 Mn.
government institutions through the issuance
Due to the significant increase of the interest of Treasury Bonds during the year.
expenses, interest coverage of the Group and EPS and DPS
the Company decreased from 5 times to 2 times
Rs. Mn Gearing Ratio
and 4 times to 1 time for the FY 2022/23.
Rs. Mn
3.0
TAXATION
100
The effective tax rates for FY 2022/23 remained 2.5
at 44.34% and 24.73% respectively at Group
and Company levels as opposed to 11.21% and 2.0 80
13.66% respectively in 2021/22. The primary
reason for this increase in the effective tax rates 1.5
60
is the increase in the deferred tax rate from 10%
to 30%. 1.0
40
PROFIT AFTER TAX 0.5
The Group and the Company registered a 2020/21 2021/22 2022/23
20
Net Profit of LKR. 2,436 Mn and LKR. 1,444 Mn 2020/21 2021/22 2022/23
Earning Per Share (Rs)
respectively for FY 2022/23. Consequently,
the net profit margin of the Group and the Dividend Per Share (Rs) Company
Company stood at 11.85% (2021/22 –12.95%) Group
and 8.23% (2021/22 – 7.74%) respectively. The Group and the Company were able to
record a YoY decrease in the Return on Capital
Employed (ROCE), despite the extremely volatile
Net Profit
external environment, proving the effectiveness
LKR Mn % of business diversification which took place in
the last few years.
6,000 20
4,500 15 Key Working Capital Components
2022/23 2021/22 Change

3,000 10
LKR LKR %
1,500 5 Group
Inventory 15,945,251,765 14,619,851,673 9%
0 0 Trade and other Receivable 12,812,888,021 25,160,628,086 (49%)
2020/21 2021/22 2022/23
Trade and other Payable 26,095,814,875 25,161,709,167 4%
NP -Company (LKR Mn)
NP- Group (LKR Mn) Company
NP ratio-Company (%) Inventory 2,844,782,987 3,881,321,447 (27%)
NP ratio- Group (%) Trade and other Receivable 9,215,075,944 21,854,323,383 (58%)
Trade and other Payable 12,111,492,173 14,065,939,280 (14%)

Financial Capital
SUBSIDIARY – CONSOLIDATED REVIEW HARBOUR VILLAGE (PVT) LTD.

OF FINANCIAL PERFORMANCE AND
FINANCIAL POSITION Harbour Village (Pvt) Ltd is a joint venture
between Access Engineering PLC and China
ACCESS REALTIES (PRIVATE) LIMITED (ARL)
Harbour Engineering Company Limited formed
A fully owned subsidiary of AEL, Access Realties for the purpose of developing Marina Square
(Private) Limited is the owner and the managing Uptown Colombo, a mixed development
agent of Access Tower I and Access Tower II. project in the North of Colombo with very
The Group and Company reported a turnover close proximity to the Port City. The project, Sri
of LKR 1 Bn and LKR 302 Mn and gross profits Lanka’s largest harbour front mix development,
amounting to LKR 799 Mn and LKR 250 Mn at progressed at a slower pace during 22/23 due
the Group and Company level respectively with to the challenges posed by the 2022 economic
a healthy gross profit margin of 82.68%. crisis. Nevertheless over 50% of the apartments
have been sold and the development had
In addition to this ARL Elevate (Pvt) Ltd. which completed 5 standard construction milestones
is 100% owned by Access Realties (Private) by the end of the financial year.
Limited contributed LKR. 22 Mn to the total
Group revenue. WUS LOGISTICS (PRIVATE) LIMITED ,
ACCESS LOGISTICS (PRIVATE) LIMITED
SATHOSA MOTORS PLC AND ACCESS LOGISTICS PARK EKALA
(PRIVATE) LIMITED
During the year under review, Sathosa Motors
PLC generated a revenue of LKR. 1,931 Mn The logistics sector comprising WUS Logistics,
and LKR 817 Mn at Group and Company levels Access Logistics and Access Logistics Park Ekala
respectively with resultant Gross profit margins performed well during the year. Our 425,000 Sq.
of 39.39% and 52.32% respectively at Group and Ft. integrated logistics and warehousing facility
Company levels. at Kimbulapitiya was occupied during the year.
Further our 750,000 Sq. Ft. integrated logistics
ACCESS PROJECTS (PRIVATE) LTD and warehousing facility at Ekala is ready to start
During the year under review, Access Projects commercial operations during the FY 23/24
generated a revenue of LKR. 1,978 Mn. The further strengthening this segment.
negative impact of the 2022 economic crisis was
the primary reason for this poor performance.
As a result during the FY 22/23, the Company
reported a gross loss of LKR – 3.04 Mn and a net
loss of LKR – 268 Mn.

Manufactured Capital
Our Manufactured Capital
As a construction company, the property, plant and equipment used in
the day to day operations form the bedrock of AEL business. Another
key component of Manufactured Capital is our IT infrastructure
including our network systems and state-of-the-art ERP that provide
backend support to ensure smooth functioning of operations.
Management Approach
AEL’s approach to developing Manufactured
Capital is based on continuous and ongoing
investment to renew, upgrade and maintain
both physical and digital assets to ensure
they remain up-to-date and function at
optimal capacity in order to meet stakeholder
deliverables on time, every time.
Fleet Age Analysis - AEL 2022/23 Capacity Building

Rs. Mn
Furniture & Fittings
18% 0 to 5 Years 2,500
38% Motor Vehicle
5 to 10 Years
2,000 Office Equipment
Over 10 Years
Other
1,500 Equipment
Plant & Machinery
1,000 Tools and Equipment
500
44%
0
2020/21 2021/22 2022/23

Construction Vehicle Fleet, Machinery and Innovation and R & D

Equipment
AEL has always considered innovation and R &
As the leading construction company in Sri D to be key levers in improving the efficiency
Lanka, AEL has over the years built an extensive of plant operations. In the year under review,
fleet comprising state-of-the-art construction challenges, including supply chain disruptions,
vehicles, machinery and equipment, including labour shortages and inflationary pressures
piling machines, grab machines, crawler caused many of the plants to operate well
and tower cranes, pavers, pump cars, drilling below capacity. Moreover, with the fuel
machines, formwork systems, mobile cranes, shortage threatening to disrupt the continuity
motor graders, excavators, Kelly bars, wheel of operations at Asphalt plants, we started
loaders, micro trenching machines, HDD resorting to new innovative techniques such as
machines, concrete mixers, silos, desanders, using pyrolysis for aggregate heating burners
rollers, shotcrete machines, compactors, and furnace oil for the aggregate heating and
loaders, trailers, grouting machines, cable bitumen heating burners.
blowing machines, weighbridge systems and
air compressors among other. Investment Despite external challenges, R & D activities
decisions in this regard are based on the annual gathered momentum leading to the
CAPEX budget allocations pre-approved by the development of Thin Asphalt Surfacing (TAS) in
Board in tandem with the strategic plan. the current financial year. TAS is considered to
be an ideal solution for paving of Low Volume
Owing to the suspension of construction roads (LVR) with annual average daily traffic
activity owing to the economic crisis in FY less than or equal to 1000 vehicles per day. The
2022/23, the AEL Board resolved to halt all Cumulative Number of Standard Axle (CNESA)
planned investments in the fleet with only new values of these rural roads (LVR) are considerably
acquisitions being essential tools, furniture and low, with many studies indicating that 25mm-
fittings and office equipment. Consequently, 30mm wearing course is in fact sufficient
only Rs. 269 million was spent in the current to carry low volume traffic. The Asphalt mix
financial year, compared to Rs. 2,355 million produced using the TAS technique, with a
incurred in the previous year. nominal maximum aggregate of 10 mm and
can support a laying thickness of 25-30 mm,
Production Plants thus making it a good fit for the purpose. Phase
Strategic business diversification initiatives 1 of the TAS was successfully implemented on
undertaken over the years has seen AEL LVR’s in the Kalutara district.
investing in complementary businesses such
as specialised production plants. Today, our
portfolio of production plants comprises 08
Asphalt plants, 06 Concrete Batching plants, 09
Quarries, 09 Crusher Plants and 01 Manufactured
Sand plant, located in various regions across Sri
Lanka.
Amidst the backdrop of the severe economic

crisis that erupted in the Country in 2022 which
resulted in a massive slowdown in construction
activity, no major investments were made
towards expansion of production plants.
Asphalt plants
Concrete batching plants
Quarries
Crusher plants
Manufactured sand plant
Precast Yard
Sand Washing Plant
MSand Plant

Investment Properties network infrastructure leading to an incremental Ì Upgraded the Site Firewalls
year on year increase in expenditure on such Ì Patch level Upgrade to ArcMate system
AEL has a portfolio of investment properties
which generate rental income or have a strong aspects in the recent past. (DMS)
capital appreciation value or both. Every year,
Given the strong IT foundations in place, no Ì Patch level update to Arcserver (Backup
resources are allocated through our annual
investments in IT were made in the current System)
budgets towards the maintenance and upkeep
financial year. However as part of the continuous Ì SAP Storage enhancement
of these properties.
improvement programme, a sum of Rs. 23
million was incurred on maintenance of the Ì Securing several globally recognised
IT Systems
following infrastructure and network systems; software licenses for the company (CAD
Since first embarking on its digital journey over Mate, & Microsoft)
a decade ago, AEL’s backend operations have
become increasingly reliant on IT systems and Ì Wi-Fi system upgrade (in progress)
Ì Initiating the SAP storage replacement
FUTURE PLANS
MEDIUM TERM LONG TERM

Ì Rationalisation of equipment and machinery Ì Carrying out more collaborated developments
fleet to improve efficiency and productivity through novel forms of project execution such
as BOT, DBFOOT, etc.
Intellectual Capital
Our Social and Relationship Capital
Our Intellectual Capital consists of the intangible elements - essentially
the key strengths that together anchor AEL’s competitive position and
also create the ecosystem to support sustained organisational growth
over time.
Management Approach
Our approach to developing Intellectual
Capital aims to enhance each element
individually, while also increasing the synergy
and deepening the interconnectedness
between elements in a way that supports
organisational goals and aligns with
stakeholder expectations.
Value Creation Scorecard FY 2022/23
Outcomes for Stakeholders Outputs for AEL
Ì Innovative solutions for new Projects Gold Award Winner for the Best Presented Annual Report
(Construction Sector Companies) at the TAGS Awards 2022
Ì Cutting Edge Engineering Designs for new Projects
conducted by CA Sri Lanka
Ì Guarantee of excellence from, the leading construction
brand in Sri Lanka Ranked 8th among top 100 listed entities in Sri Lanka in
the ‘2022 Transparency in Corporate Reporting’ (TRAC)
Ì Assurance of a brand with an unblemished ethics record
Assessment conducted by the Transparency International
Sri Lanka (TISL)

Brand Leadership few local companies selected by Adani Ports Amidst the scarcity of construction materials
Preserving the authenticity of our brand is central of India for the construction of Colombo West in the current financial year, AEL continued to
to our endeavour to maintain brand leadership. International Terminal (CWIT) of the Port of reiterate its commitment to innovation across
Guided by our overarching brand strategy, Colombo. AEL is also the only Sri Lankan entity a number of ongoing projects, most notably by;
we have made a conscious effort to stand out to be appointed as an ‘Investment Partner’ by
China Harbour Engineering Company (CHEC), Ì Introducing pre- loading for the foundation
against peers by continuously augmenting and
the developer and investor of the Colombo and floor structure of Export Greenfield
differentiating our credentials through various
International Port City, which resulted in being Warehousing Complex to improve the
scalability initiatives undertaken over the years.
awarded the contract for the development of ground condition and eliminate the deep
Strategic investments towards expanding our ‘Marina Square – Uptown Colombo’ - Sri Lanka’s pile foundation resulting in the saving of
competencies within the broader construction largest single – phase mixed development cost, materials and time
sector has paved the way for AEL to be ranked comprising 1,088 apartments and over 150,000
Ì Using internally manufactured Precast
as the only construction Company in Sri Sq. Ft. of commercial space.
structures in road and drainage works
Lanka with the highest CIDA grading across 9 of the Export Greenfield Warehousing
disciplines of civil engineering namely; building, AEL holds the distinct honour of being the
Complex resulting in cost saving and
highway, bridge, water supply and sewerage, first and only Company in the world to secure
quality and efficiency of the project
piling, soil nailing and stabilisation, electrical a Joint Venture partnership with ZPMC China
as a ‘JV Partner’ to carry out port equipment Ì Reinforcing the slab and beams using light
installation (low voltage), extra low voltage
maintenance operations. AEL is also the only weight AAC blocks and Hollow partition
installation and heavy steel fabrication.
civil engineering Company in Sri Lanka to walls at the construction of Marina Square
Through our diversification strategies over partner with Vestas - the world’s largest wind Mix Development.
the years, we have accumulated extensive turbine manufacturer for civil works in the
Ì Reviewing and optimising the Pile design
expertise in the fields of engineering designs, 100MW Mannar Wind Power Project, and also
capacity of the Orugodawatta Housing
foundations, mechanical and fabrication the only local Company to be selected by
Project and Stadiumgama Housing Project.
workshops, production of construction Michelin, the 2nd largest tire manufacturer
in the world to construct Sri Lanka’s largest Ì Replacing 1500mm Diameter piles with
materials, construction projects and real estate
warehouse for Camso the newly introduced 1350 Diameter Piles
solutions, which has propelled the Access brand
for the Orugodawatta Housing Project and
as the #1 ‘integrated’ civil engineering solutions
Innovation Capability Stadiumgama Housing Project.
in Sri Lanka.
The deep desire for innovation has always been Ì Replacing the Water Sump Pile Foundation
Meanwhile our investment in building the a key catalyst in our brand strategy over the past with a ground supported option in
largest asphalt production plant in Mathugama 02 decades. In seeking to cement its status as order to reduce the pilling cost of the
has positioned AEL as the undisputed leader for the frontrunner in construction industry, Orugodawatta Housing Project.
the production of ‘asphalt’ in the local market. AEL has introduced several unconventional
and innovative construction techniques and Ì Using post tensioning in the construction
However,in light of the economic crisis in 2022 methodologies to the Sri Lankan market, most of viaducts of the Central Expressway
and the construction sector challenges arising notably the Horizontal Directional Drilling Project - section 3 package 1 M resulting in
therefrom, no major investments were made (HDD) and micro trenching method of cable significant cost savings.
in expanding AEL brand presence in the year installation in telecommunication works, the
under review. post tensioning and the aluminium formwork
system for high rise building construction and
Business Networks the diaphragm wall for basement construction.
Our strong brand reputation and outstanding
track record in the local construction arena has
enabled AEL to expand its business networks,
both locally and overseas. In particular, tie-ups
with leading global entities add further value to
the Access brand.
In the year under review, AEL was appointed

as the ‘Lead Partner’ in a landmark Joint
Venture agreement for the construction of
the East Container Terminal (ECT) of the Port
of Colombo. AEL also became one of the elite
GRI 205-1
Knowledge-based Systems
Support for industry-leading R & D
Our systems and processes and unique ways
In 2022, AEL undertook to finance a new R of working form an integral part of how our Code of
& D project relating to the ‘Introduction of business operates. In particular, the knowledge Conduct
Fibre Optic Monitoring Technology to Sri and expertise of our engineering and design
Lanka’. The project was done in partnership teams play a pivotal role in differentiating our
with the University of Moratuwa which USP. In a bid to further augment our knowledge
was supported by the University of and keep pace with the latest construction Data classification
Cambridge and the University of Oxford. design trends we have significantly accelerated and handling
Phase 1 of the project was to familiarise our investment in sophisticated hardware as well policy
AEL
with the instrument procured from Fibris as design and simulation software such as ETAB Ethics
Terre Systems GmbH, Germany and also 2018 , STAADPR, Auto Cad, CIVIL 3D, AUTODESK Framework
perform a comparison of test results with REVIT and CADMATE. Leveraging these cutting
conventional instrumentation. edge building modelling software has helped Whistleblowing
to conceptualise a number of unique structural Policy
The research was carried out under and architectural designs for many of our recent
the topic “A Review on the Advances in projects including;
Distributed Fibre Optic Sensing Technology Anti Bribery
for Structural Health Monitoring'' by a Ì The two warehouse buildings for the and Corruption
student at the University of Moratuwa. Export Greenfield Warehousing Complex Policy
The student went on to publish a paper for Access Logistic Park Ekala (Pvt) Ltd
for the 12th International Conference on
Structural Engineering and Construction Ì The two storey nursery and cultural
Management – Lecture Notes in Civil centre building for the Shinnyo En Lanka
Nursery school at Kirimandala Mawatha, to ethics goes beyond compliance and extends
Engineering. Further to this, the research
Narahenpita to excellence in conduct.
topic was announced as the runner-up at
the Civil Engineering Research Symposium Ì four 15 storey buildings comprising 1000 AEL ethics framework creates a foundation for all
2022. This technology will give AEL first housing units for the Urban Development employees to adopt the appropriate behaviours
mover advantage in the field of structural Authority. in executing their internal activities as well as
health monitoring in the future.
Ì Creating the eco friendly façade of the when acting on behalf of the Company with
Urban Development Authority public car external parties.
park in Colombo 02 to maximise natural
ventilation Our focus on ethics is further reinforced by
regular training for all employees accompanied
Ì The viaduct and overpass, drainage and with routine due diligence activities conducted
culverts of the Central Expressway Project- by the internal audit team to provide further
Section 3 Package 1M (From Pothuhera to assurance regarding the efficacy of the internal
Galagedara) for the Road Development ethics framework and the level of organisation-
Authority wide adherence to the same.
Ì The proposed Marina Square Mix
Development for Harbour Village (Pvt) Ltd In addition, AEL is a certified 'Member in Good
Standing' of TRACE International - the UK-based
Ì The flyover including pile foundation, organisation for anti - bribery compliance.
abutments & piers of the Slave Island This certificate is given after a comprehensive
Flyover for the Road Development annual due – diligence which covers diverse
Authority. areas including the Ownership, Group Structure,
Financials, Compliance, Corporate Governance
Business Ethics and Risk Management. AEL has continuously
Part of AEL reputation in the industry rests on the maintained this status for over a decade now
fundamental commitment to do business the and is the only construction Company in Sri
right way. This involves the uncompromising Lanka to do so.
commitment to regulatory compliance across
all aspects of the business. Our overall approach
CAPITAL MANAGEMENT REVIEW GRI 2-28, 205-2
Our anti-corruption policy also applies to non Ì Reporting on procurement related to

– controlled persons or entities that provide government contracts
goods or services under contract including our
Ì Industry – wide comparison
sub – contractors and labour suppliers. We are
committed to counter corruption by all means.
With this score, AEL falls into the category of
'Significantly Transparent' companies. AEL is
In 2022, AEL was ranked 8th among the top 100
also the only construction Company to be
listed companies in Sri Lanka by Transparency
featured among the top 10 in this 2022 edition.
International Sri Lanka (TISL) for Transparency in
Corporate Reporting with an overall TRAC Score Accreditations and Certifications
of 9.06 out of 10, based on the following criteria;
Our pursuit of excellence in every sphere has led
Ì Anti - corruption programs to voluntary adoption of global accreditations Similarly, international certifications such as
and certifications that directly enhance various the ISO 9001:2015 - Quality Management
Ì Organisational transparency aspects of our operations by helping to manage Standard, ISO 14001:2015 - Environmental
Ì Domestic financial reporting risks while leveraging opportunities for business Management Standard and the ISO 45001:2018
optimisation and new market expansion. - Occupational Health and Safety Standard
Ì Country by country reporting
contribute towards driving our Environmental,
Ì Reporting on gender and non – To that end, in the core business, AEL stands
Social and Governance (ESG) ambitions.
discrimination as the only construction Company in Sri Lanka
with a total of 9 CIDA (Construction Industry
Development Authority) gradings to date.
Access Engineering PLC - CIDA Gradings Other Memberships
Field Grade
Name of Professional Membership
Building CS-2 Highest grade
Organization/
Highways CS-2 Highest grade Professional and
Bridge CS-2 Highest grade Affiliated Organization
Water Supply and Sewerage CS-2 Highest grade
National Construction Member
Piling GP-B1 Highest grade Association of SL (NCASL)
Soil Nailing & Stabilisation SP-1 Highest grade The Ceylon Chamber of Member
Electrical Installation (Low voltage) EM-1 Highest grade Commerce (CCC)
International Chamber of Member
Extra Low Voltage Installation- ELV EM-1 Highest grade
Commerce (ICC)
Heavy Steel Fabrications – HSF EM-1 Highest grade
Sri Lanka Business and Patron Member
Maritime Construction C-1 Biodiversity Platform (BSL)
Heavy Construction C-1 The Chamber of Member
Irrigation and Drainage Canals C-1 Construction Industry SL
(CCI)
Plumbing & Drainage - PD EM-1
Elevators, Escalators & Travelators - EET EM-1
Fire Detection, Protection & Suppression - FDPS EM-1
LP Gas Systems - LPG EM-1
Dredging and Reclamation C-7
Storm Water disposal and Land Drainage C-7
Memberships and Affiliations
Name of Professional Organization/

Benefits
Professional and Affiliated Organization
Construction Industry Development Authority Inputs regarding construction industry norms, regulations (Quality, Safety &Environment) & best
(CIDA) practices
Facilitating training, seminars & knowledge sharing workshops for Engineers, Quantity surveyors
The Institute of Engineers, Sri Lanka
etc.
The National Chamber of Commerce of Sri Lanka Training on various disciplines
Ceylon Chamber of Commerce Business & Bio
Collaboration for CSR Projects
Diversity Platform
Advisory services related to Labour Law.
Employer Federation of Ceylon (EFC)
Facilitating trainings, seminars & knowledge sharing sessions
Condominium Developers Association of Sri
Advisory services & consultancy related to condominium development & knowledge sharing
Lanka (CDASL)
International Chamber of Commerce Sri Lanka
Knowledge sharing related to different disciplines
(ICCSL)
Institute of Chartered Accountants of Sri Lanka
Approved training institution for business, corporate and strategic levels
(ICASL)
United Nations Global Compact (UNGC) Networking access to UN Global Compact participants
TRACE International UK for Anti-bribery Access to information and best practices on ESG topics, including data models, compliance
Compliance policies, training materials, and local law specifications across over 140 countries.
FUTURE PLANS

Ì Enhancing the BO (Business Objects) reporting Ì Quantification of ‘AEL’ Brand Equity
module of SAP
Ì Extending the collaboration/s with reputed
Ì Implementation of a real-time Planning & global research institutes/universities to diverse
Monitoring system for Production Plants areas of engineering
Ì Migrating to SAP HANA
Ì Investing in the SAP Storage replacement

module to facilitate the future requirements for
AEL
CAPITAL MANAGEMENT REVIEW GRI 2-7, 2-24
Human Capital
Our Human Capital
At AEL, we identify our Human Capital as the key custodians of our
business, for it is their commitment, skills, knowledge and passion that
create the foundation of our competitive advantage and remain the
driving force behind our continued success.
Management Approach
AEL follows an integrated approach to Human
Capital Management (HCM) which is closely
aligned with corporate strategy, thus ensuring
our human capital has the capacity and
capability and feels empowered to support
the achievement of short, medium and long
term corporate aspirations. To that end, our
HCM approach revolves around a set of key
principles which cascade into a comprehensive
policy framework along with clear governance
and responsibilities.
Based on Gender Based on Age Total Staff by Category
Male Female Total Number of Number of

Employees Employees
=< 30 260 36 296
30 < 50 618 47 665 =< 30 296 Managerial 114
=> 50 130 3 133 30<age<50 665 Operational/Technical 335
Total 1,008 86 1,094 =>50 133 Clerical & Supportive 229
Total 1,094 Skilled and unskilled 416
Total 1,094
GRI 202-1, 405-1
Based on Gender
HR Governance Structure
AEL has implemented a semi-decentralised structure for the effective management of

Female
Human Capital. The responsibility for setting overall HR Policy is under the stewardship
86 of the corporate office headed by the Senior General Manager. The training and
development process is also largely overseen by the corporate office. For our projects,
we have established four separate divisions to oversee Human Capital Management
activities, where the respective Human Resource departments handle all human capital
Male related functions, including recruitment, selection, performance evaluation, staff
1,008 welfare etc.
Employee Value Proposition Competency testing accompanied by several to be recruited as and when needed in
Since its inception, Access Engineering PLC rounds of formal interviews form the basis of partnership with specialised labour service
(AEL) has sought to position itself as an employer selecting candidates. Clerical and supportive providers.
of choice by presenting a strong Employee (Operational) employees are required to
present themselves for an interview, with final Given the extreme challenges caused by the
Value Proposition (EVP) with the promise of
selections made by the HRD representatives economic crisis in the Country in 2022, AEL’s
meaningful work, rewards and recognition and
based on a set of predetermined criteria management took a strategic decision to
job security.
outlining required minimum technical and restrict recruitments as much as possible. As
However burdened by the challenges arising behavioural competencies. such, recruitments undertaken during the year
out of the economic crisis in 2022 AEL was was mostly for the purpose of filling vacancies
forced to revisit its EVP in the current financial The existing Senior Management Team is all of key management personnel who had
year. With work on projects at a standstill hired locally from Sri Lanka. resigned.
for much of the year owing to the crisis, we
As a responsible employer, AEL recruitment
were unable to provide our employees with
processes are guided by the labour principles
meaningful work befitting their skills and talent
outlined by the ILO and the UN Global Compact.
and most were left idling. Amidst this backdrop,
Accordingly, AEL does not condone “Child
we were compelled to rationalise our teams
Labour” and our recruitment and selection
while engaging the key staff with ongoing
process includes stringent verification controls
projects.
to ensure all potential new recruits are within
Recruitment and Selection the minimum age regulations as stipulated by
Sri Lanka’s labour laws. Moreover we strongly
As a non-discriminatory employer, our advocate the principle of “No Forced Labour” by
recruitments are merit-based. We have in place ensuring our employees remain in employment
a highly streamlined recruitment process to voluntarily and at their free will.
screen and hire the right candidate for the
specific job role, vis-a-vis their qualifications, All new recruits are required to participate in
experience and mindset as well as their our comprehensive orientation programme
potential for growth and capacity to handle to help them assimilate our unique corporate
greater responsibility. culture and understand what is expected of
an employee of AEL. Meanwhile, daily paid
labourers (skilled and unskilled) are continued
CAPITAL MANAGEMENT REVIEW GRI 202-1, 401-1, 401-2, 405-2
HUMAN CAPITAL
This reduction in recruitment numbers is evident in the year on year comparison with FY 2021/22. Compensation and Benefits
New Hires Our salary structures have been designed

to conform with all labour laws currently
Based on Age 2022/23 2021/22 applicable to the organisation, namely the
=< 30 167 989 Shop and Office Employees Act, Wages Board
30<age<50 95 726 Ordinance, the EPF Act, ETF Act and Payment
=>50 27 141 of Gratuity Act, while at the same time being
industry competitive. Salary scales for all
Total 289 1,856
employee categories are reviewed regularly
Based on Gender
and adjusted to ensure compensation and
Male 277 1,782
benefits remain competitive. In keeping
Female 12 74
with our equity goals, we also ensure that
Total 289 1,856 men and women in similar roles across
Based on Province all employee categories are remunerated
Southern 0 48 equally without prejudice with the ratio of
Western 285 1,552 basic salary of female to male employees
Central 0 125 standing at 1:1.
North Central 0 24
North Western 0 25
Northern 2 64
Sabaragamuwa 2 18
Total 289 1,856
Turn over Benefits provided to Permanent

Employees
Based on Age Based on Province
 Performance – based incentives and
recognition
2,000
1,000  Surgical and hospitalisation cover
(extended to the whole family)
800 1,500
 Meals and transportation when
600 1,000 working extended hours /on holidays
 Time off allowance in lieu of working

400
500 on Saturdays, Sundays and holidays
200  Female employees are entitled to 84

0 days of maternity leave for the birth of
Southern
Western
Central
North Central
North Western
Sabaragamuwa
Northern
0 a child, as stipulated by the Shop and

=< 30 30< to <50 =>50 Office Act
Based on Gender  Personal accident and death insurance

coverage
102
1,947  Staff welfare activities
Male
Female
GRI 401-1, 401-3, 404-2, 404-3
Performance-driven Culture process serves as the foundation for the

In seeking to promulgate the performance- establishing of performance incentives, salary
driven culture, AEL has implemented a increments and identifying potential training as
comprehensive performance management well for determining opportunities for vertical
process that begins with a goal setting exercise and lateral career advancement
to ensure individual and team goals are aligned
Apart from the Annual Performance Appraisal,
with the strategic objectives of the organisation.
performance evaluations are also carried out
In this context, strategic objectives of the
for the purpose of service extension, in the
organisation are broken down into department-
event of disciplinary issues, to determine
wise KPI’s, which are then cascaded down
interim increments / promotions and at the exit
to each individual within the department /
interview.
division. This is accompanied with regular
feedback and coaching followed by the Annual
Learning and Development
Performance Appraisal to drive individual
KPI’s ultimately leading to the achievement of AEL is committed to ensuring that all staff
strategic objectives. Employees who are eligible have access to learning and development Training is mobilised based on the 70:20:10
for the Annual Appraisal Process are employees opportunities, which enable them to be suitably principle (70% of on-the-job experience, 20%
who have completed the six month period. The knowledgeable and skilled to carry out their mentoring and 10% classroom training), with
results of this Annual Performance Appraisal designated job role and to develop their talents the highest weightage allocated to enhancing
in ways that fit with the broader organisational the skills for employees’ current role, through a
objectives. combination of technical or specialist training.
Leadership and soft skill training programmes
are also deployed from time to time based on
need.
Benefits Provided to Daily-paid Training programmes overview
workers
 Surgical and hospitalisation coverage Internal External
(extended to the whole family) On-the-job training Institutional training
 Personal accident and death insurance In-house training using Company’s own Ad-hoc training
coverage resources and expertise
 Accommodation facilities Knowledge sharing sessions Customised training for organisational and individual
requirements
 Target-based allowances Industrial training
Training type Participants Training Hours Total Training

Hours
Training based on type of skill

Soft skills 28 29.5 141
Parental Leave Health and safety 4 1.5 6
Knowledge enhancement 2 3 6
Number of employees entitled to 86 Technical skills 26 63.75 555.25
parental leave
Number of employees that took 4 Internal training program
parental leave
Technical skills 19 56 528
Number of employees that 3
returned to work after parental
leave ended External training program
Number of employees that returned 1 Technical skills 7 7.75 27.25
to work after parental leave ended Soft skills 28 29.5 141
that were still employed 12 months Health and safety 4 1.5 6
after their return to work Knowledge enhancement 2 3 6
CAPITAL MANAGEMENT REVIEW GRI 2-30, 402-1, 403-2, 406-1
HUMAN CAPITAL
Gender Parity Employee Relations

As an equal opportunity, non-discriminatory Encouraging regular and open communication is a major part of our effort to create a supportive
employer, AEL has adopted a broad based work environment that promotes a healthy work-life balance for all employees and increases their
strategy to reduce gender parity at every stage level of job satisfaction.
of the employee journey. Accordingly, we have
implemented gender-neutral recruitment Since AEL does not have a collective bargaining agreement, formal team briefings and other routine
practices, established strict guidelines to reduce meetings create a structured framework for continuous and ongoing dialogue between employees
unconscious bias in the selection processes, and their respective team leadership. Meanwhile our open-door policy creates a more informal
and have benchmarked our assessment and setting for employees to reach out to their superiors to discuss any work related matters.
interview criteria against global best practices.
Grievance Handling
As stated above, our compensation and benefits A formal grievance handling process is in place for employees to formally intimate any issues that
packages are fair and equitable regardless of have not been resolved to their satisfaction through the aforementioned informal channels. All
gender. grievances are treated seriously and investigated immediately supported by an impartial review
to ensure a fair and equitable resolution within the stipulated timeline. These are Company-wide
Further deepening our commitment to reduce practices that apply to all employee categories. There were no grievances reported in FY 2022/23.
gender parity, we conduct special training and
Grievance handling procedure
awareness programmes to educate employees
and managers on the importance of gender
equality, address unconscious bias, promote Employee
gender sensitivity, and create an inclusive
work environment. More recently we have also
HR Officer /
implemented a parental leave policy to support Immediate Superior
Executive
better work-life balance for men.
If unsatisfied Project Manager / If unsatisfied
As part of our 360 degree approach, workforce Dept. Head
data relating to gender representation, hiring,
promotions, retention etc are collated, analysed
If unsatisfied
and reported to determine the degree of
HR Manager (Unit)
achievement against established gender parity
goals. These real world insights are also used to
drive continuous improvement.
Senior HR Manager If unsatisfied

We have two specific policies on sexual
harassment in the workplace – the “Policy
on Disciplinary Management” and the
“Whistleblowing Policy”. Under the Policy on Unit Head
Disciplinary Management, sexual harassment is If unsatisfied
(General Manager)
defined as misconduct. The policy provides for
disciplinary action against sexual harassment,
such as inappropriate sexual development, Senior General
requests for sexual favours, sexual or explicit If unsatisfied
Manager
posters, pictures, cartoons, or other verbal
or physical acts. Any employee who has
experienced harassment can report such
an incident to their manager, the next level Managing Director If unsatisfied
of management, Human Resources, or Top
Management. All complaints are treated as
confidential. An investigation is conducted
Occupational Health and Safety
based on the misconduct and the relevant
punishment will be decided by the Board of In our core business of construction, safety is the #1 priority. To assure the safety and wellbeing of its
Inquiry. employees (staff and labourers), contractors, suppliers and visitors to its project sites, AEL remains fully
compliant with all safety regulations mandated under the Factories Ordinance 1942. Additionally, as
per the Workmen's Compensation Ordinance of 1935 and subsequent Amendments thereto, we have
obtained insurance cover to compensate workers who are injured in the course of their work.
Going beyond these mandatory requirements, safety hazards. The OHS system is further as per the detailed incident management
AEL has voluntarily adopted the ISO 45001:2018 strengthened through dedicated safety teams protocol. According to the protocol, incidents
- Occupational Health and Safety Management and stringent management oversight across all are segmented under three broad categories;
Standards as the basis of implementing its aspects, including hazard identification and risk near misses and first aid; minor, major and
organisation-wide Occupational Health and assessment, hazard control, training, emergency fatal accidents; or occupational illnesses, with
Safety (OHS) system. The main aim of the OHS response, incident reporting and investigation, clear investigative responsibilities under each
framework is to effectively reduce the risk of and communication. segment. The protocol also sets out guidelines
injury and illness across all workplace operations for the implementation of corrective action and
and is therefore based on three fundamental In line with the OHS system in place, all incidents for updating incident reports.
pillars - detecting, assessing, and controlling are documented and investigated immediately
Key Hazards in the Construction Industry
Hazard Reason for Hazard Hazard Prevention System Implemented by Access Engineering
Working at Falls from multi-storey Edge protection is incorporated to the guard rail, mid-rail and toe board must be provided to the edge of
Heights building structures any scaffold platform, fixed stair, landing, suspended slab, formwork, or false work where there is a risk of
a person falling two or more metres
Edge protection is provided where there is a risk that a person could fall three or more metres from an
edge at the workplace other than an edge referred to above
Where it is not practicable to provide edge protection as outlined above, a fall injury prevention system is
provided and used to control the risk of a fall or a fall arrest system is used to arrest a fall
Electrocution Working with and Inspection of wiring of electrical equipment before each use & periodically
around electrical Use of safe work practices every time electrical equipment is used
equipment and power
tools creates significant Awareness of the location and how to operate shut-off switches and/or circuit breaker panels
workplace hazards Practicing lock-out & tag-out systems with regard to energy isolation
in the construction Limiting the use of extension cords
industry Using only standard electrical equipment
Being Hit Coming into contact Use of machine guarding to prevent contact with moving parts
by Moving with moving Ensuring correct isolation procedures are practiced before any work is carried out on equipment with
Objects machinery, goods, and moving parts
tools and equipment
Establishment of exclusion zones to make sure that load transport areas are sufficiently barricaded to
are critical workplace
prevent workers from accessing the area
hazards in the
Ensuring tools, materials and equipment are stored securely to prevent them from falling to the level
construction industry
below and acting as projectiles
Falls, Trips and Due to poor Keeping only frequently used tools in the work area
Slips housekeeping Ensuring floors around benches and machinery are kept clean & tidy
practices Keeping work areas tidy by storing materials and equipment neatly
Keeping extension leads off the ground by using cable stands
Regular disposal of waste material and rubbish in appropriate methods
Maintaining good housekeeping
Unintended Falling into excavated Adopting soil protection methods such as stepping, sloping, shoring and close sheeting
collapse sites Shoring or close sheeting excavation work as per the requirement
Use of adequate barricade and excavation signage
Walkways across excavations are made by scaffolding and strict prohibition of unsafe work practices
Maintaining excavated soil, material and equipment at a distance of 0.5 meter away from the edge of
excavation site/s

HUMAN CAPITAL
Incident Reporting Hierarchy
Management Review
Senior General Manager

(Management Representative)
Consultant – Management Systems

General Manager –
Project Management Divisions/ Legal Officer
Manager – Management Systems

Project Manager
Assistant Manager
Management Systems
Management System
Safety Officer
Divisional Representative
Supervisor
Labour/Observer (Employee)
Composition and Scope of Safety Teams
Safety Committee Fire Fighting Team First Aid Team
Reports to Management Systems Dept. Project Manager / Plant Manager Project Manager / Plant
Manager
Headed by Project Manager / Plant Manager Safety Officer / Safety Manager Safety Officer / Safety Manager
No. of members 6 Members per 100 Employees 3 Firefighters per 100 Employees 4 First Aiders per 100
Employees
Composition Representatives of Labours, Officer Appointed Lower Level Employees & Appointed Lower Level
Representatives from Each Division Site Staff Employees & Site Staff
TOR To implement, maintain & improve For Emergency Preparedness For Emergency Preparedness
OHSMS
Meeting Frequency Once a Month Annual Annual
Health and safety parameters 2022/23
Total safety hours 3,573,637

Fatalities -
Major accidents 2
Minor accidents 8
Frequency of major accidents 0.56
Frequency of minor accidents 2.24
LTIFR (Lost Time Injury Frequency Rate) 2.80
Continuous improvement is a key aspect in managing the efficacy of the OHS system. This is
facilitated by regular safety meetings, the findings from bi-annual audits conducted internally by
AEL’s Department of Management Systems and non-conformities detected through the ISO external
assurance audit conducted every 09 months by DNV GL.
Future Focus
Emphasis on retaining core staff at all levels of the organisation

Social and Relationship Capital
OUR SOCIAL AND RELATIONSHIP CAPITAL
Our Social and Relationship Capital refers to the primary stakeholder
relationships that form the building blocks for the continuity of our
business. These key relationships include the customers who select
AEL for their construction needs, investors who provide financial
resources and suppliers who provide essential goods and services.
Our ties to the wider community also form an important part of our
Management Approach
Our approach to developing Social and
Relationship Capital is to develop strong
bonds with each of these key stakeholders
in order to encourage them to remain part of
AEL over the long term
Value Creation Scorecard FY 2022/23
Outcomes for Stakeholders Outputs for AEL
Customers Ì Strong customer affinity and loyalty towards the Access

Assurance of project continuity when most other construction brand
were halted
Ì Increased investor confidence in the Access brand
Investors Ì Supply chain reliability to support the continuity of

Consistent returns despite economic challenges operations
Suppliers
Continuous business opportunities notwithstanding the
construction sector slowdown
GRI 416-2
Fully Fledged Construction Solutions

CUSTOMER CAPITAL We began our diversification and integration
strategy several years ago, and since then
AEL’s diversified business portfolio is equipped
AEL has always placed customers at the heart have worked systematically to build a broad
to provide the best in-class solutions for every
of its business strategy. In our endeavour to based portfolio of complementary business
stage of the construction value chain. As
fulfil their construction needs, we have adopted to support our core. For instance our industry-
the leading EPC (Engineering, Procurement,
a holistic approach framed around four key leading production capability enables us to
Construction) company in Sri Lanka, we leverage
pillars - fully fledged construction solutions, provide a diverse array of solutions ranging
our expertise in civil engineering to offer
360 degree quality assurance, innovation, from asphalt concrete, ready mix concrete
customised design and integrated construction
sustainable operations and ongoing customer
solutions for large projects including Highways, and aggregate products. Similarly, the Central
communication.
Water supply and sewerage, Buildings, Bridges, Equipment Division acts as an internal supplier
Irrigation and land drainage, Dredging and of heavy construction equipment machinery
In the current financial year, where the ongoing
reclamation, Maritime construction, Piling, Soil for our construction projects.
economic crisis in the country has seen the
nailing and stabilisation, Electrical installation
entire construction sector at a near standstill,
(Low-tension), Heavy steel fabrication, HDD & 360 degree Quality Assurance
AEL reiterated its commitment to its customers
Telecommunication Services.
by prioritising the continuity of operations Striving to position ourselves as the #1 choice
across business segments. for construction solutions, we focus on a 360
degree approach to quality.
Crusher Plants
Ready – Mix
Asphalt Plants
Concrete Plants
Sand Washing
Central Equipment
Plant
Division (CED)
Construction
Solutions
Production
Our Capability
Integrated
Suite
HDD &
Telecommunication
Services Quarry
Design Operations
Solutions
Steel Fabrication
Piling Workshops
Engineering
Designs
CAPITAL MANAGEMENT REVIEW GRI 416-2
Our quality processes are contingent on

Solutions Provided to customers in FY 2022/23
having the right systems, implementing the
required internal controls to ensure continuous
assessment, monitoring and due diligence as
Ready - Mix Concrete
well as mobilising appropriate resources to
drive operational excellence to ensure on-time Ì Supply of Ready-Mix Concrete of Proposed Facilities for Container Terminal including
delivery of customer commitments. Marine and Allied Services at West Container Terminal in the Port of Colombo
We have invested in the leading global SAP

enterprise resource planning system to ensure Quarry Operation
AEL’s core business processes and backend
architecture remain 100% efficient and reliable Ì Supply of Core Rock and Armour Rock for West Container Terminal Project
across all aspects of the business from material
management, production planning, equipment Ì Supply of Rocks and Aggregate for East Container Terminal of Port of Colombo Phase II
and tool management and plant maintenance
to distribution, sales and finance.
Piling
In the current financial year we implemented

Ì Casting bored piles, pile testing and Ì Construction of Cast In-situ Bored Piles
“SAP Fiori” - mobile app based solution to enable
hacking for Package A, Passenger for Proposed 350 MW Combined Cycle
selected business functions to be performed
Terminal Building and Associated Works Power Plant at Kerawalapitiya II
remotely through a secure platform.
on Bandaranaike International Airport
Ì Casting bored piles, pile testing and
Development Project (BIADP) Phase II
From an assurance perspective, in-house hacking for Piling works for Transmission
Stage 2
laboratory facilities in every plant and at most Lines (Pannipitiya to Ratmalana)
sites enable testing for the purpose of quality Ì Piling work for 15 MW Wind Power Plant
Ì Piling works at Gatambe Meda Ela
assurance/ quality control. Moreover the ISO at Nanattan, Mannar
Bridge– Small Bridge Along A1 Road
certified Quality Assurance and Management
Ì Construction of Diaphragm Wall for
Systems ensure that all regulations regarding Ì Piling Work for Proposed Container
Proposed Star Class Hotel at 594, Galle
safety, health, and quality are met. We conduct Freight Station for Aitken Spence
Road, Colombo 04
a minimum of three audits during a project, Logistics
at commencement, execution, and upon
completion. Ad hoc audits are also carried out Steel Fabrication Workshop
on a need basis.
Innovation and Continuous Improvement Ì Supply & Installation Fire Protection & Ì Installation, Testing & Commissioning
AEL embraces innovation and continuous Detection system of the public car park of the Fire Protection System at Export
improvement as a means of enhancing the facility at Union Place Greenfield Warehousing Complex
value proposition presented to customers. Ì Design, fabrication & installation of two Ì Design, fabrication & installation of drain
We encourage knowledge sharing among 1500 m3 water tanks at Export Greenfield control automated Radial gates and sluice
industry peers to foster innovation and ideation Warehousing Complex gates at Export Greenfield Warehousing
and often seek out overseas partnerships to Complex
augment our technical expertise and learn Ì Fabrication & Erection of roof structures at
about the latest global best practices relevant Export Greenfield Warehousing Complex
to our field.
Sustainable Operations
To achieve this, we have been progressively embedding sustainable business practices into
We are fully aware of the nature of our business
every aspect of work through the adoption of sustainable construction techniques, proper waste
and the impact our operations can have on the
management, prudent resource allocation and energy saving initiatives.
environment, especially in terms of greenhouse
gas emissions. In keeping with the commitment
At the same time, we continue to invest in technology to help refine various internal processes
to safeguard the wellbeing of customers and
in order to minimise the use of natural resources and cut waste. For example, the Document
the wider community, AEL makes a conscious
Management System (DMS) that was implemented in 2018 has not only served its intended purpose
effort to lead by example in finding solutions to
of improving document tracking, managing and storage but also greatly reduced the day to day
reduce its environmental footprint.
paper usage across a number of departments.
Ongoing Customer Communication project / activity centre / department and customer complaint handling and reviewing
tasked with managing all customer interactions platform provides data-driven insights to
AEL follows a structured customer
and receiving complaints. enable the management to track issues raised
communication framework to stay connected
by customers. Complaint data is analysed and
with customers in order to keep them apprised
A 5-step complaint handling process is in place reported to the Management monthly and on a
on the status of their projects. A designated
to ensure the effective resolution, while the quarterly basis to the Board.
communications liaison is appointed for each
Stage in the project Medium of dialogue Typical dialogue content
Pre-contract Pre-bid meeting Ì Description of the project and key deliverables
Ì Obtaining of bidding documents

Site visits Ì Understanding of the actual ground situation
Ì Gathering vital information/technical data for preparing bidding documents

Queries and clarifications Follow-up queries and clarifications are sought from the customer where required
Formal bidding Ì Submission of formal bid together with the technical and financial proposal
Ì Submission of guarantees/bonds as required

Negotiations Once shortlisted the client commences negotiations and further clarifications are sought if
required
Implementation Kick-off meeting Happens prior to work commencement where the following is discussed in great detail:
Ì Obligations of parties
Ì Project implementation schedule and the way forward

Progress review meeting Every two weeks at the site where the project progress is discussed at length including site
challenges and proposed actions
Special meetings If and when required
Substantial completion or Formal handing over of the site and completed project to the client/customer
taking over
Defect Liability Period Inspection Regular visits are made by the client/customer during the DLP to identify any defects or errors
(DLP) — (Usually for and same is communicated for rectification
one year) Performance certificate Issued after the expiry of the DLP
Appointment of a customer complaint Officer Complaints are investigated to

for each Project Manager, Plant / Activity identify the root cause followed by
1 Centre / Department 3 corrective action to avoid recurrence
in the future
The officer reviews the complaint and

takes immediate actions to rectify the Effectiveness of actions are evaluated
2 issue raised, if possible. 4 within a reasonable time period
If not the complaint is escalated to
responsible people based on the
nature of complaint Feedback from the complainant to
All complaints are recorded in the
5 determine the need for further action
Complaints Register

INVESTOR CAPITAL Directors’ Shareholding as at 31 March 2023
As an entity listed on the Colombo Stock Name of the Director Number of Percentage
Exchange (CSE), approximately 40.104% of AEL shares held %
share capital is held by the public represented
by 9,947 shareholders. Mr. Sumal J S Perera 250,000,000 25.00
Mr. R. J S. Gomez Nil Nil
Reflecting our commitment to be fully
transparent regarding our activities, we meet Mr. J C Joshua 101,000,000 10.10
all mandatory shareholder disclosures to the Mr. S H S Mendis 24,300,000 2.43
CSE, including price sensitive information. Mr. D A R Fernando 24,300,000 2.43
Moreover given our large shareholder base,
Mr. S D Munasinghe 24,300,000 2.43
we have implemented a structured investor
relations framework to enable our shareholders Mr. S D Perera 2,000,000 0.20
to access information on an ongoing basis. Prof. K A M K Ranasinghe 100 0.00
Mr. N D Gunaratne Nil Nil
Our corporate website (www.accessengsl.com)
gives shareholders access to real time trading Mr. D S Weerakkody 60,597 0.01
information, financial statements and research Mr. Shamal J S Perera 51,159,365 5.12
reports. The corporate website is also updated
frequently with project related information
Investor Capital Structure
Meanwhile a dedicated investor relations From To Number of Number of Percentage

email has been assigned to facilitate direct shareholders shares %
connectivity to AEL’s Company Secretaries.
Shareholders can use this email to request 1 – 1,000 5,202 1,816,684 0.18
a prior appointment to meet with any Board
1,001 – 10,000 3,182 13,038,871 1.30
Director.
10,001 – 100,000 1,229 39,842,547 3.98
100,001 – 1,000,000 299 83,249,581 8.33
Over 1,000,000 54 862,052,317 86.21
9,966 1,000,000,000 100.00
Share prices for the year
Market price per share 2022/23 2021/22

LKR LKR
Highest 16.50 (20.03.2023) 38.40 (21.01.2022)
Lowest 8.30 (13.01.2023) 15.00 (31.03.2022)
As at end of the year 14.20 (31.03.2023) 15.00 (31.03.2022)

Top 20 Major shareholders
31 MARCH 2023 31 MARCH 2022*

Name of shareholder Number of Shares Percentage Number of Shares Percentage
% %
1. Mr. Sumal .J.S Perera 250,000,000 25.000 250,000,000 25.000

2. Mr. J.C.Joshua 101,000,000 10.100 101,000,000 10.100
3. Mrs. R.M.N. Joshua 70,000,000 7.000 70,000,000 7.000
4. Mr. Shamal J.S. Perera 51,159,365 5.116 50,811,814 5.081
5. Mrs. D.R.S Malalasekera 45,000,000 4.500 45,000,000 4.500
6. Access International (Pvt.) Limited 32,200,000 3.220 32,200,000 3.220
7. Mr. J.W. Nanayakkara & Mrs. H.D. Nanayakkara 30,788,574 3.079 30,788,574 3.079
8. Foresight Engineering (Pvt.) Limited 30,000,000 3.000 30,000,000 3.000
9. Mr. D.A.R. Fernando 24,300,000 2.430 24,300,000 2.430
10. Mr. S.H.S. Mendis 24,300,000 2.430 24,300,000 2.430
11. Mr. S.D. Munasinghe 24,300,000 2.430 24,300,000 2.430
12. Confab Steel (Pvt.) Limited 22,940,000 2.294 19,647,506 1.965
13. Employees Provident Fund 20,478,289 2.048 20,478,289 2.048
14. Mercantile Investments and Finance PLC 13,121,925 1.312 13,121,925 1.312
15. Access Medical (Pvt.) Limited 13,000,000 1.300 13,000,000 1.300
16. Mr. M.J. Fernando 12,138,117 1.214 12,138,117 1.214
17. Mr R.P. Weerasooriya 10,132,479 1.013 - -
18. Deutsche Bank AG as Trustee to Capital Alliance Quantitative Equity 7,125,871 0.713 - -
Fund
19. Mrs. T.T.A. De Silva Weerasooriya 6,000,000 0.600 - -
20. Deutsche Bank AG as Trustee for JB Vantage Value Equity Fund 5,072,312 0.507 5,072,312 0.507
793,056,932 79.306 766,158,537 76.616
OTHERS 206,943,068 20.694 233,841,463 23.384
TOTAL 1,000,000,000 100.000 1,000,000,000 100.000
* Comparative shareholdings as at 31 March 2022 of the twenty largest shareholders as at 31 March 2023
Release dates of interim financial statements – 2022/23 Release date of Annual Reports- 2021/22
Quarter Due date Actual release date Quarter Due date Actual release date
1 15th August 2022 12th August 2022 Annual Report 31st August 2022 05th September 2022
2 15th November 2022 11th November 2022 AGM 30th September 2022 23rd September 2022
3 15th February 2023 09th February 2023
4 31st May 2023 19th May 2023

Dividend policy
The dividend Policy remains unchanged. Earnings & dividends in the last few years are as below.
2022/2023 2021/2022 2020/2021 2019/2020 2018/2019

Group Company Group Company Group Company Group Company Group Company
EPS (LKR) 2.48 1.44 5.11 2.58 2.39 2.33 0.98 1.93 2.15 1.96
DPS (LKR) 0.75 0.75 0.75 0.75 0.50 0.50 0.5 0.5 0.5 0.5
Payout (%) 30 52 15 29 21 21 51 26 23 25
Performance of shares relative to ASPI
31 March 2023 1 April 2022 Change

(%)
AEL Share Price (LKR) 14.20 15.00 5.33

ASPI 9301.09 8471.43 9.80
S&P SL 20 2682.83 2830.93 5.23
Capital Goods 1266.06 1248.78 1.38
AEL Trading Details of the Debenture Issue

12,000 18.00 In November 2015 AEL issued 50 million rated,
senior, unsecured, redeemable debentures
with tenures of 5-8 years raising Rs. 5 Bn. The
10,000 16.00
debentures were listed on the Colombo Stock
Exchange on 23rd November 2015. Thereafter
8,000 12.00 on 15th September 2022, ICRA Lanka Limited
revised the issue rating of the outstanding
Rs.0.56 Mn Senior Unsecured Redeemable Listed
6,000 8.00 Debentures to [SL] A (Negative) from [SL] A+
(Negative)
4,000 6.00
Amidst these developments, an Extraordinary
General Meeting (EGM) of the Type ‘D’
2,000 2.00 Debenture Holders was held on 10th March
2023 to approve an early redemption of the
same. The resolution was passed by a majority
at the EGM and all outstanding Debentures
ASPI (Index) S&P SL 20 (Index) Capital goods (Index) AEl share price (LKR) were paid in full by the Company on 18th April
2023. Outstanding Debentures were not traded
during the financial year 2022/23 up to the last
date of trading entitled for early redemption.
Trading Statistics
31 March 2023 31 March 2022 31 March 2021 31 March 2020 31 March 2019
No. of shares traded 157,122,837 448,903,146 357,123,112 102,113,697 108,091,199

Value of shares traded (Rs. Mn) 1,932 9,588 6,757 1,637 2,729
Number of days traded 235 240 219 231 240
GRI 204-1
SUPPLIER CAPITAL Supplier Age Analysis Supplier Screening
AEL’s supplier base consists of over 20,000 16% Our Supplier Screening SOP sets a series of
suppliers comprising contractors, sub- criteria for screening of suppliers, including
contractors, material and machinery suppliers, price competitiveness, quality, credit terms,
labour suppliers, designers, surveyors, delivery timelines, responsiveness and flexibility,
transporters, IT solutions providers etc. Given innovation etc. The screening process also often
the vital role they play in enabling AEL to 26% involves sampling, factory visits etc.
maintain uninterrupted operations, we have
always sought to build strong and enduring ties Suppliers are also screened to determine
with our suppliers based on trust and mutual their alignment with the requirements of
respect. Expanding on this concept in recent 58% Environmental Management Systems ISO
years we have further deepened our ties with 140001: 2015.
selected suppliers to achieve supply chain
security through backward integration. Apart from this, construction contractors bidding
Below 2 years 5 - 10 years
for state sector projects are further scrutinised
2 - 5 years
in line with relevant regulatory compliance
requirements applicable to the project.
Procurement
Policy Spending on local suppliers - AEL
Supplier
Screening
Material purchases Local Suppliers Foreign Suppliers Total
Fundamentals
for building
Supplier Material Purchases 1,545,023,665 612,111,825 2,157,135,490
Capital CAPEX 6,434,255 - 6,434,255
Total 1,551,457,920 612,111,825 2,163,569,745
Supplier Code of
Conduct Social and Environmental Regulations included in the Supplier Screening Process
Labour The following list is in addition to EPF, ETF and Gratuity related Acts:
Ì Wages Boards Ordinance

Procurement Policy Ì Factories Ordinance
Our Procurement Policy serves as an overarching Ì Workmen’s Compensation Ordinance
framework for effective and efficient
Ì Employment of Women, Young Persons and Children Act
procurement to allow AEL to form the right
partnerships that harmonise with short term Ì Shop and Office Employees Act
goals as well as long term corporate aspirations. Ì Industrials Disputes Act
Standard Operating Procedures (SOP) set out
Environmental Regulations imposed by the National Environment Act
under the Procurement Policy are designed
in accordance with global best practices for Regulations imposed by the Mines and Minerals Act
sustainable procurement while balancing the Regulations imposed by the Coast Conservation Act
technical, social and environmental credentials
Regulations imposed by the Marine Pollution Prevention Act
of suppliers and service providers.
Regulations imposed by the Fauna and Flora Protection Ordinance
The practical application of the Procurement Regulations imposed by the Forest Ordinance
Policy and its SOP’s falls under the purview Regulations imposed by the Soil Conservation Act
of AEL’s Central Procurement Division’ which
Regulations imposed by the State Land Ordinance
handles all material purchases, procurement
of machinery and assets and major sub – Regulations imposed by the Explosives Principle Act
contractors. Under above regulations the suppliers are required to obtain the following
where applicable:
Ì Environmental Protection License (EPL)
Ì Mining Licence
Ì Archaeology Clearance
Ì UDA Clearance
Supplier Code of Conduct

COMMUNITY CAPITAL outweigh the negatives. In the short term,
Selected suppliers are on-boarded through a communities in and around projects benefit
AEL is of the opinion that good standing in immensely from various job opportunities
legally binding agreement that also includes the
the community further enhances its overall created for the duration of the project, while
Code of Conduct. The Code of Conduct which
reputation. To that end, we remain committed to improved transport links, public infrastructure
aims to ensure that all of our significant and
contribute to the enrichment of the society and and telecommunication infrastructure, all
ongoing suppliers are aligned to AEL’s business
make a tangible contribution to the economic collectively contribute towards greater socio
and ethical conduct standards in regard to
and social development of the localities in and economic progress and improving the quality
technical, social and environmental aspects.
around our project sites and plants. of life for these communities over the long term.
Socio Economic Development Agenda Social Responsibility Policy

Technical Social Environmental
The first order or priority outlined in our Socio Our Social Responsibility Policy acts as a
Care of Protection of Economic Development Agenda is to minimise blueprint in guiding our efforts to empower
Scope Works Environment the negative impact to communities as a communities vis-a-vis four thematic areas:
consequence of our project / plant operations. Local Community Development, Human
Social Specifically, we focus on mitigating the adverse Capacity Building, Industry Advancement and
Security and Site Cleaning impact to human health and wellbeing due Environmental Stewardship.
Price Welfare etc. etc. to disturbances caused by our operations,
Time for air emissions, and discharges; social impacts However, during the financial year we could
commencement of involuntary resettlement, physical and not engage in any social responsibility projects
economic displacement and disruptions to owing to the economic turmoil which had a
livelihoods. negative impact on our core business.
The Code of Conduct applies to all of our
suppliers and this fact is notified either at the
At the same time, we do take great pride
point of calling for tender bids or through the
in the fact that the positive impact to the
RFQ. It is mandatory that all suppliers comply
community from our projects significantly
with the Code of Conduct, without exception.
New Suppliers Screened and on-Boarded
Type of Supplier FY 2022/23 FY 2021/22
International 63 22
Local 1,365 587
Internal 8 5
Inter-company 1 1
Total as at year end 1,444 615
FUTURE PLANS

Ì Performing the entire tendering process Ì Supplier evaluation based on social criteria
through ‘Green Tape’
Ì Conducting periodic investor webinars
Ì Recommencement of social responsibility

projects following industry revival
Natural Capital
OUR NATURAL CAPITAL
Natural resources are vital for the day to day operations, from the
rock and limestone extracted as part of our quarry operations to the
energy and water consumed in our manufacturing process.
Management Approach
Our fundamental approach is based on
consumption of resources to prevent loss
of Natural Capital coupled with targeted
initiatives to minimise the negative impacts to
the environment.
Natural Capital
Environmental Compliance
Operating within the highly regulated construction industry, AEL seeks to achieve leadership in environmental compliance by ensuring all applicable
laws and regulations at every stage of construction are fully complied with. In the year under review, there were no reported incidents of noncompliance
in relation to environmental laws and regulations.
Environment, statutory, and other compliance requirements
Legislation Application to AEL
National Environment Act No. 47 of 1980, National Obtaining environmental protection license for emission or disposal of waste
Environment Act (Amendment) Act No. 56 of Provision with respect to the powers, functions and duties of the Authority and provision for the
1988, National Environment protection and management of the environment and for the matters connected therewith
Act No. 53 of 2000 and Rules and Regulations of Protection of the environment and quality regulations
the Central Environmental Authority Compliance with noise control measures
Compliance with air quality regulations and standards
Compliance for ozone depleting substances
Compliance with mobile air emission standards
Compliance with vehicular exhaust emission standards/fuel standards and exhaust emission
standards for importation of vehicles
Mines and Minerals Act No. 33 of 1992 Obtaining trade license and industrial mining license
Coast Conservation Act No. 57 of 1980 Compliance in harbour and marine work projects
Marine Pollution Prevention Act No. 59 of 1981 Compliance in harbour and marine work projects
Fauna and Flora Protection Ordinance 1981 Protecting fauna and flora
(Consolidated status up to 2006)
Felling of Trees (control) Act No. 9 of 1951 Compliance in activity of felling trees
Forest Ordinance Compliance in operating production plants in a forest area
Mahaweli Authority Act No. 23 of 1979 Compliance for workstations situated under Mahaweli Authority
Municipal Councils Ordinance Compliance when working in municipal council areas
Prevention of Mosquito Breeding Compliance with the prevention of mosquito breeding; for the eradication of places of
Act No. 11 of 2007 mosquito breeding and for matters connected there with or incidental thereto
Pradeshiya Sabha Act No. 15 of 1987 Compliance when working in Pradeshiya Sabhas
Soil Conservation Act (Amendment) Compliance for the enhancement and substance of productive capacity of the soil; to restore
No. 24 of 1996 degraded land for the prevention and mitigation of soil erosion; for the conservation of soil
resources and protection of land against damage by floods, salinity, alkalinity water logging,
brought and to provide for matters connected therewith or incidental thereto
Antiques Ordinance Compliance when working in Archaeological Department areas
State Land Ordinance Compliance when working on land
North Western Provincial Environmental Statute Compliance when working in the North Western Province
No. 12 of 1990
Compared to conventional drilling,

HDD (Horizontal Directional Drilling) the HDD methodology creates lesser
noise and dust generation
Environmentally
Friendly Construction
Solutions
Use of Manufactured Sand & washed
Manufactured sand Quarry Dust whenever possible to
minimise the use of river sand
GRI 302-1, 302-3
Environmental Management System (EMS)

A fully fledged EMS is in place to support our efforts to minimise the negative externalities arising out of AEL’s operations. The EMS, which is certified
under the ISO 14001:2015 Environmental Management Standard, provides a comprehensive framework to manage and monitor aspects such as water
consumption, electricity consumption, as well as to report on the progress of environmental targets with regard to these aspects
Routine internal audits are conducted to help identify and take corrective action to continuously improve the functionality of the EMS, while the
scheduled ISO 14001:2015 audits provide assurance regarding the efficacy of the EMS in serving its intended purpose.
Moreover in line with the Environmental Protection Licence (EPL), noise level, dust level, water quality, stack emission, etc. are tested regularly and
reported to the appropriate authorities as stipulated under the EPL.
Energy and Emission Management
Electricity and diesel / petrol are the primary Total energy consumption (electricity and fuel) routine testing of backup generators. We also
sources of energy used by AEL. in its day is strictly monitored with a root cause analysis monitor Stack Emissions released by our Asphalt
to operations. Electricity is used to power conducted in the event any anomalies are plants during the process of incineration.
equipment and for lighting purposes while detected.
diesel / petrol are used to power construction Further increasing our vigilance on emissions,
vehicles, generators and motor vehicles. Given Although AEL’s business operations as a whole we have more recently started looking into the
the large volumes of energy consumed by do not generate any hazardous emissions, we possibility of quantifying emissions associated
our business each year, we consider energy have taken steps to track emissions associated with importation of raw materials using sea / air
management to be a major priority. with the operation of our fuel-driven equipment freight.
and generators, including emissions released by
Energy consumption within the organization
AEL
Type of energy Units consumed Conversion Ratio Total energy
consumption (joules)
Diesel (ltr) 2,757,836.86 38.940 107,390,167.41

Petrol (ltr) 87,761.12 33.165 2,910,597.58
Kerosene (ltr) 95.24 36.765 3,501.50
Electricity (kWh) 1,059,515.20 3.600 3,814,254.72
Total 114,118,521.20
Energy intensity within the organization
Total Energy Consumption (Joules) 114,118,522.56

Year end number of employees 1,094
Energy intensity measured in terms of energy consumption per employee (Joules) 104,313.09

Natural Capital
Operations With Significant Actual and Potential Negative Impacts on the Environment
Operation Impact (on the environment) Mitigation strategies
Mechanical Waste oil and burnt oil generation resulting in water and land Ì Handing over to CEA-approved burnt oil handler for
Workshop pollution reuse/recycle
Hazardous waste (e.g., oil filters, empty chemical containers, etc.) Ì Handing over to CEA-approved service provider for
generation resulting in water and land pollution reuse/recycle
Road Projects Tree cutting during execution of certain projects causing an Ì Minimising the number of trees to be cut during project
imbalance to ecology design/execution
Ì Conducting tree planting programmes
Dust generation resulting in air quality degradation Ì Watering
Concrete Cement contaminated water generation resulting in water and Ì Simple water treatment (sedimentation) and reuse of
Batching Plants land pollution water
Crusher Plants Dust generation resulting in air quality degradation Ì Water sprinkling
General Fuel and oil leakages and spillages from storages resulting in Ì Secondary containment for storage tanks
Construction water and land pollution
Activities
Fossil fuel consumption leading to natural resource depletion Ì Monitoring fuel consumption
Ì Preventive and corrective maintenance of equipment
Emissions of motor vehicles leading to air quality degradation Ì Conducting emission tests for motor vehicles
Ì Preventive and corrective maintenance of vehicles
Noise from generators and equipment leading to area nuisance Ì Soundproofing
Office Operations E-waste generation resulting in heavy metal being released to Ì Handing over e-waste to certified recycling agents
the environment
Waste paper resulting in natural resource depletion Ì Handing over waste paper to certified recycling agents
Energy Saving Initiatives Fuel Saving Initiatives
Ì Anticipating and addressing concerns Ì Installing energy efficient lighting Ì Adhering to servicing and maintenance
during the design stage which leads to requirements recommended by the OEM
Ì Investing in renewable energy
reduction in energy consumption and
Ì Annual maintenance and assessment of
consequently GHG emission in the long Ì Limit the operating hours of air
vehicles and machinery and performing
term conditioners in specific areas.
scheduled services on time
Ì Use of natural light and ventilation Ì Incorporate layout and design features to
Ì Phasing out of old / obsolete generators /
whenever possible and practical enable independent control as opposed
vehicles
to centrally controlled lighting and air
Ì Install thermal insulation for roofs to
conditioning
regulate heating and reduce the reliance
on air conditioning Ì Enabling auto power management
functions on computers
Ì Procuring in energy efficient machinery
and equipment from Original Equipment Ì Enhance energy efficiency of three-
Manufacturers (OEM) phase connections through power factor
correction
Ì Adhering to servicing and maintenance
requirements recommended by the OEM Ì Promote energy saving behaviours among
employees
GRI 303-1, 305-1, 305-2
Emission Data - FY 2022/23
Type of Emission Type of energy Units consumed Conversion Ratio Total CO2
Emission
Direct Diesel (Litres) 2,757,836.86 2.74 7,556,473.00

Direct Petrol (Litres) 87,761.12 2.28 200,095.36
Direct Kerosene (Litres) 95.24 2.52 240.00
Indirect Electricity (kWh) 1,059,515.20 0.71 752,255.79
Total 3,905,208.42 8,509,064.15
Mode of Transport Number of Import consignments for FY Percentage %

2022/23
Air 6 15%
Sea 35 85%
Total Shipments 41 100%
Managing Water and Effluents
In our core construction business, water is contain chemical contaminants such as oil, permitted by the Central Environmental
used primarily in mixing of concrete, dust grease, heavy metals, and construction-related Authority. Random sampling and quarterly
suppression, and equipment cleaning. Apart chemicals. Such wastewater is channeled to testing provides further assurance regarding
from this, water is only for the utility and the wastewater treatment plant located on- the effectiveness of the wastewater treatment
sanitation needs of employees. site in line with the conditions set out under systems in place.
the EPL. This is accompanied with continuous
We remain mindful of the effluents generated and ongoing monitoring of water quality Effluents that satisfy the mandatory quality
during construction activities. For instance, parameters such as Chemical Oxygen Demand parameters are released to the public drainage
wastewater generated in the day-to-day (COD), Biological Oxygen Demand (BOD), Total line, while sludge, if any is captured separately
operations due to equipment cleaning, Suspended Solids (TSS), and pH to ensure in sedimentation tanks.
concrete mixing, and site dewatering, may they meet with the standard discharge limits
Water Related Concerns attributed to the Construction sector
Surface Runoff and Erosion: Groundwater Impacts:

Construction sites can cause increased surface runoff and erosion, Construction activities can disrupt natural hydrological patterns and alter
leading to sedimentation and pollution of nearby water bodies. This groundwater flow. Excavation and dewatering practices can lower the
runoff may contain sediment, chemicals, and other pollutants from water table and impact local wells and underground water sources
construction activities.
Water Pollution: Habitat Destruction:

Construction sites may contribute to water pollution through the Construction projects often involve land clearing, which can destroy
release of construction materials, such as cement, chemicals, fuels, and natural habitats, wetlands, and riparian zones. These areas play crucial
oils. Improper handling and disposal of these materials can result in roles in water filtration, flood control, and supporting aquatic ecosystems
contamination of water bodies
Natural Capital
Activities Undertaken by AE PLC for the Management of Water Related Impacts
Environmental Impact Assessment (EIA) Water Management Plans: Training and Employee Awareness::
EIAs evaluate the potential environmental Develop comprehensive water management Provide training programs to educate
impacts of construction projects, including plans that outline strategies and measures to employees about the importance of water
water-related impacts. They involve site surveys, minimise water consumption, control pollution, management and the specific practices to
data collection, and impact prediction to and manage runoff. These plans typically follow. This promotes a culture of environmental
identify and assess the significance of various include best practices for water conservation, responsibility and encourages employees to
impacts. pollution prevention, and sediment and erosion actively participate in mitigating water-related
control. impacts
Water Monitoring:
Construction sites may monitor water quality Water Conservation Practices: Monitoring and Reporting:
parameters, such as turbidity, pH levels, and Implement water-saving techniques such as Regularly monitor water-related parameters,
pollutant concentrations, in nearby water using efficient equipment, employing water such as water quality, sediment levels, and
bodies. This helps identify any pollution recycling and reuse systems, and optimising compliance with permits. This monitoring
or contamination caused by construction water use in construction processes. This allows them to identify any deviations from
activities reduces water consumption and the strain on expected outcomes and take corrective actions
local water resources. promptly. They also report their findings and
Water Metering: actions to relevant authorities as required.
Water consumption can be measured through Sediment and Erosion Control:
water metering systems installed at construction Implement erosion control measures, such
Drinking Water Consumption by
sites. These metres track the volume of water as installing sediment barriers, silt fences, and
Employees - FY 2022/23
used, helping companies understand and sediment ponds, to prevent sedimentation and
manage their water consumption. minimise the impact of construction activities
on nearby water bodies.
Type Consumption
Sediment and Erosion Control:
(Litres)
Construction companies implement erosion Stormwater Management:
control measures, such as sediment barriers, Construction sites incorporate effective
18.9 L Water Bottles 129,975
silt fences, and sediment ponds, to minimise stormwater management systems, including
sedimentation and monitor their effectiveness the use of retention ponds, swales, and other 350ml Water Bottles 1,123,500
permeable surfaces. These systems help 500ml Water Bottles 2,544,000
Regulatory Compliance: capture and treat stormwater runoff, preventing Total 3,797,475
Construction companies must adhere to local, pollution and minimising the impact on local
regional, and national regulations related waterways.
to water management and environmental
protection. Compliance with permit
requirements and reporting obligations
ensures that impacts are properly identified
and managed
Waste Management
AEL produces different types of waste at various stages of the construction lifecycle. We follow a disciplined approach to reduce the environmental
impact resulting from such waste, while also looking for ways to cut the waste generated at each stage. To that end, our waste management programme
is based on the following principles;
Reduce: focus on waste minimisation Recycle and Reuse: prioritise recycling and reuse of materials to minimise waste sent to landfills. To
by adopting practices that reduce waste that end, we have formed partnerships with CEA approved recyclers to undertake the collection,
generation at the source. This includes sorting, and processing of recyclable materials such as concrete, wood, metal, and plastics. More
optimising material use, planning for efficient recently we have also started salvaging and reusing materials from demolition and renovation
construction methods, and selecting materials projects to help reduce waste and conserve resources.
with minimal waste potential
AEL PLC Waste Generation Profile
Waste Sorting and Segregation: waste

Packaging materials from General waste (paper,
sorting and segregation stations have been set
construction materials and plastics, etc.), hazardous
up to facilitate proper separation of different
equipment waste (chemicals, oils etc.)
types of waste. This includes providing separate
and electronic waste
bins or containers for different waste streams
like general waste, recyclables, hazardous
waste, and construction debris. Clear signage
and education programmes help workers
understand and follow the waste segregation
requirements.
Promoting Waste Circularity Operations and

Procurement
Maintenance
Existing paved concrete in roads certain road

projects are crushed and reused for the base
preparation in road works
Design and Renovation and
Construction
Planning Demolition
Excavated soil is reused for backfilling subject
to quality of the soil with the prior approval of
the client
Balanced concrete in the truck mixture

are used to cast paving blocks at the
batching plants Paper waste from Concrete, debris, Construction debris, asbestos-
design drafts, bricks, wood, metals, containing materials, hazardous
Broken cement brick pieces are used for
blueprints and plastic and other materials and various other
backfilling after crushing/ sieving
documentation construction materials construction related materials
Waste Transportation and Disposal: ensure

Training and Education: conducting regular training programs and providing educational materials
that waste is transported and disposed of
to raise awareness among employees about waste management practices. Training covers proper
in compliance with local regulations and
waste handling, segregation, recycling guidelines, and reinforces the importance of environmental
guidelines. We work with licensed waste haulers
responsibility. Workers are encouraged to actively participate in waste management initiatives and
and disposal facilities to ensure that waste is
report any issues or concerns.
handled and disposed of properly, minimising
environmental impact and adhering to legal
requirements.
Natural Capital
Waste disposal techniques
Ì Every site has its own Waste Ì Non-hazardous construction and Ì Storage techniques are used to avoid
Management Plan addressing controls demolishing debris are used for landfills material wastages and material storages
to minimise the generation of waste and are covered
Ì Following are collected and sent to
methods of disposal
CEA approved agents for recycling and Ì Construction techniques that minimise
Ì Bentonite wastes are disposed as per the reusing purpose: wastage are used
CEA/MC recommended methods only
– Waste papers Ì Procurement of quality material at every
in approved locations
stage of a project to eliminate wastage
– Barricade tapes
Ì Domestic waste collected onsite are due to rejections
segregated at the time of collection (E.g. – HDPE wastes
Ì Reinforcement scraps are used to erect
iron, glass, steel, paper, polythene, etc.)
– Used batteries chairs in the cafeteria, carts to move
Ì Hazardous waste generated at site materials and buckets to be used for the
– Glass wool
(burnt oil, oil filters, etc.) are disposed crane
via CEA approved agents for recycle and Ì Sludge accumulated in the concrete
Ì Using the DMS (Document Management
reusing purposes batching plants is used for back filling
System) to reduce paper consumption
on public requests after approval from
Ì Electronic wastes are collected and
the relevant authorities
disposed via a CEA-approved agent
Paper Consumption Data for FY 2022/23 Environmental Awareness and Education

Awareness and education plays an important role in driving our environmental initiatives. At each
Type of paper Total consumption
of our projects, our designated H & S officer is responsible for conducting programmes to raise
(kg)
environmental awareness among relevant stakeholders including employees, suppliers, sub-
contractors, and local community. As part of this overall approach, we also conduct special training
A3 80GSM Paper-Pkt 690.00 sessions on selected topics that become relevant from time to time.
A4 80GSM Paper-Pkt 4,545.00
Biodiversity Conservation
A5 80GSM Paper-Pkt 6.25
With our construction sites located mainly in urban areas, there is minimal risk that our operations
Total 5,241.25
will have an impact on the biodiversity of a particular area. The only exception to this is our quarry,
crusher and asphalt plant in Vavuniya.
Location/ Project Land Description Ownership Position in relation Type of Biodiversity Listing of protected
extent of operation of land to the protected/ operation value status (if applicable)
threatened area
Vavuniya Quarry, 0.4 Production Leased Adjacent to Manufacturing Terrestrial Forest Conservation
Crusher and Asphalt hectares of asphalt Department
Plant
To offset potential negative impact to the biodiversity and ecosystems in and around our Vavuniya Quarry, Crusher and Asphalt Plant, we have an
ongoing tree planting project themed 'Husma Dena Thuru'.
FUTURE PLANS
Ì Prioritise the use of sustainable materials and construction practices
Ì Promote Building Information Modeling (BIM) to ensure greater precision in planning and coordinating
construction projects.
Ì Collaboration with energy consultants to obtain green building certifications.

GRI CONTENT INDEX

Statement of Access Engineering PLC has reported in accordance with the GRI Standards for the period
use : 1st April 2022 to 31st March 2023
GRI 1 used GRI 1: Foundation 2021
GRI STANDARD DISCLOSURE LOCATION

/ OTHER
SOURCE
GRI 2: General 2-1 Organizational details Inner back cover

Disclosures 2-2 Entities included in the organization’s sustainability reporting 6
2-3 Reporting period, frequency and contact point 6 and 7
2-4 Restatements of information N/A
2-5 External assurance 7, 126 and 190
2-6 Activities, value chain and other business relationships 4 and 5
2-7 Employees 98 to 105
2-8 Workers who are not employees N/A
2-9 Governance structure and composition 138
2-10 Nomination and selection of the highest governance body 153 and 154
2-11 Chair of the highest governance body 151 and 152
2-12 Role of the highest governance body in overseeing the management of impacts 140
2-13 Delegation of responsibility for managing impacts 144
2-14 Role of the highest governance body in sustainability reporting 142
2-15 Conflicts of interest 139 and 140
2-16 Communication of critical concerns 29 to 35
2-17 Collective knowledge of the highest governance body 139
2-18 Evaluation of the performance of the highest governance body 144
2-19 Remuneration policies 165
2-20 Process to determine remuneration 165
2-21 Annual total compensation ratio 255
2-22 Statement on sustainable development strategy 42
2-23 Policy commitments 186
2-24 Embedding policy commitments 98
2-25 Processes to remediate negative impacts 6
2-26 Mechanisms for seeking advice and raising concerns 30 to 35
2-27 Compliance with laws and regulations 146
2-28 Membership associations 96
2-29 Approach to stakeholder engagement 30 to 35
2-30 Collective bargaining agreements 102
GRI 3: Material 3-1 Process to determine material topics 36
Topics 3-2 List of material topics 37 to 41
GRI 201: 3-3 Management of material topics 37
Economic 201-1 Direct economic value generated and distributed 85
Performance 201-3 Defined benefit plan obligations and other retirement plans 247
201-4 Financial assistance received from Government 79
GRI 202: Market 3-3 Management of material topics 37
Presence 202-1 Ratios of standard entry level wage by gender compared to local minimum wage 100
202-2 Proportion of senior management hired from the local community 99
GRI 203: Indirect 3-3 Management of material topics 37 to 41
Economic 203-1 Infrastructure investments and services supported 50 to 69
Impacts 203-2 Significant indirect economic impacts 50 to 69
GRI CONTENT INDEX

/ OTHER
SOURCE

Procurement 204-1 Proportion of spending on local suppliers 113
Practices
GRI 205: Anti- 3-3 Management of material topics 38
corruption 205-1 Operations assessed for risks related to corruption 95 and 96
205-2 Communication and training about anti-corruption policies and procedures 95 and 96
205-3 Confirmed incidents of corruption and actions taken 95 and 96
GRI 206: Anti- 3-3 Management of material topics 38
competitive 206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices 38
Behaviour
GRI 207: Tax 2019 207-4 Country-by-country reporting
a All tax jurisdictions where the entities included in the organisation’s audited 202
consolidated financial statements, or in the financial information filed on
public record, are resident for tax purposes
b. For each tax jurisdiction reported in Disclosure 207-4-a: Names of the 10 and 11
resident entities and Primary activities of the organisation
Number of employees, and the basis of calculation of this number 211
Revenues from third-party sales and Profit/loss before tax 196
Tangible assets other than cash and cash equivalents 197
Corporate income tax accrued on profit/loss 215
Reasons for the difference between corporate income tax accrued on profit/loss 214
and the tax due if the statutory tax rate is applied to profit/loss before tax
c. The time period covered by the information reported in Disclosure 207-4 196
GRI 302: Energy 3-3 Management of material topics 40
302-1 Energy consumption within the organisation 117
302-3 Energy intensity 117
GRI 303: Water 3-3 Management of material topics 40
303-1 Water withdrawal by source 119
303-3 Water recycled and reused 120
Biodiversity 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and 122
areas of high biodiversity value outside protected areas
Emissions 305-1 Direct (Scope 1) GHG emissions 119
505-2 Energy indirect (Scope 2) GHG emissions 119
Environmental 307-1 Non-compliance with environmental laws and regulations 116
Compliance
GRI 401: 3-3 Management of material topics 38 and 39
Employment 401-1 New employee hires and employee turnover 100
401-2 Benefits provided to full-time employees that are not provided to temporary or 100 and 101
part-time employees
401-3 Parental leave 101
GRI 402: Labour/ 3-3 Management of material topics 38
Management 402-1 Minimum notice periods regarding operational changes 102
Relations

/ OTHER
SOURCE

Occupational 403-2 Types of injury and rates of injury, occupational diseases, lost days, and 102 and 103
Health and Safety absenteeism, and number of work-related fatalities
GRI 404: Training 3-3 Management of material topics 39
and Education 404-1 Average hours of training per year per employee 101
404-2 Programmes for upgrading employee skill and transition assistance programmes 101
404-3 Percentage of employees receiving regular performance and career development 101
reviews
GRI 405: Diversity 3-3 Management of material topics 39
and Equal 405-1 Diversity of governance bodies and employees 99, 144, 145 and 146
Opportunity 405-2 Ratio of basic salary and remuneration of women to men 100
GRI 406: Non- 3-3 Management of material topics 39
discrimination 406-1 Incidents of discrimination and corrective actions taken 102
GRI 413: Local 3-3 Management of material topics 39
Communities 413-1 Operations with local community engagement, impact assessments, and 114
development programmes
Customer Health 416-2 Incidents of non-compliance concerning the health and safety impacts of 107 and 108
and Safety products and services
GRI 419: Socio- 3-3 Management of material topics 39
economic
Compliance
INDEPENDENT ASSURANCE REPORT

TO ACCESS ENGINEERING PLC GRI 2-5
We have been engaged by the Directors of Our conclusions Management’s Responsibility

Access Engineering PLC (“the Company”) to
Our conclusion has been formed on the basis Management is responsible for the preparation
provide reasonable assurance and limited
of, and is subject to, the matters outlined in this and presentation of the Reasonable Assurance
assurance in respect of the Sustainability
report. We believe that the evidence we have Sustainability Indicators and the Limited
Indicators as identified below for the year ended
obtained is sufficient and appropriate to provide Assurance Sustainability Indicators in
31 March 2023. The Sustainability Indicators
a basis for our conclusions. accordance with the Consolidated Set of Global
are included in the Access Engineering PLC
Reporting Initiative Sustainability Reporting
Integrated Annual Report for the year ended 31 Reasonable Assurance Sustainability Standards Guidelines.
March 2023 (the “Report”). Indicators
In our opinion, in all material respects, the These responsibilities includes establishing such
The Reasonable Assurance Sustainability
Reasonable Assurance Sustainability Indicators, internal controls as management determines
Indicators covered by our reasonable assurance
as defined above, for the year ended 31 March are necessary to enable the preparation of the
engagement are:
2023, in all material respects, has been prepared Reasonable Assurance Sustainability Indicators
and presented by the management of Access and the Limited Assurance Sustainability
Assured Integrated Engineering PLC in accordance with the Indicators that are free from material
Sustainability Annual Report Consolidated Set of Global Reporting Initiative misstatement whether due to fraud or error.
Indicators Page Sustainability Reporting Standards Guidelines.
Management is responsible for preventing
Financial Highlights 12 Limited Assurance Sustainability and detecting fraud and for identifying and
Indicators ensuring that the Company complies with laws
Based on the evidence we obtained from the and regulations applicable to its activities.
Limited Assurance Integrated
assurance procedures performed, as described
Sustainability Annual Management is also responsible for ensuring
below we are not aware of any material
Indicators Report Page that staff involved with the preparation and
misstatements that causes us to believe that
the Limited Assurance Sustainability Indicators, presentation of the description and Report
Non-Financial 13
as defined above, for the year ended 31 March are properly trained, information systems are
Highlights
2023, have not in all material respects, been properly updated and that any changes in
Information provided reporting encompass all significant business
prepared and presented by the management of
on following units.
Access Engineering PLC in accordance with the
Financial Capital 84 to 88 Consolidated Set of Global Reporting Initiative
Manufactured Capital 89 to 92 Sustainability Reporting Standards Guidelines.
Intellectual Capital 93 to 97
Human Capital 98 to 105
Social & Relationship 106 to 114
Capital
Natural Capital 115 to 122
Our responsibility Reasonable assurance over Reasonable Limited Assurance Sustainability Indicators, and
Assurance Sustainability Indicators applying analytical and other procedures, as
Our responsibility is to express a reasonable
assurance conclusion on the Company’s The procedures selected in our reasonable appropriate. These procedures included:
preparation and presentation of the Reasonable assurance engagement depend on our
judgment, including the assessment of the risks Ì interviews with senior management and
Assurance Sustainability Indicators and a limited
of material misstatement of the Reasonable relevant staff at corporate and selected
assurance conclusion on the preparation
Assurance Sustainability Indicators whether due site level concerning sustainability
and presentation of the Limited Assurance
to fraud or error. strategy and policies for material issues,
Sustainability Indicators included in the Report,
and the implementation of these across
as defined above.
In making those risk assessments, we have the business;
We conducted our assurance engagement considered internal controls relevant to Ì enquiries of management to gain
in accordance with Sri Lanka Standard on the preparation and presentation of the an understanding of the Company’s
Assurance Engagements SLSAE 3000: Assurance Reasonable Assurance Sustainability Indicators processes for determining material issues
Engagements other than Audits or Reviews of in order to design assurance procedures that for the Company’s key stakeholder groups;
Historical Financial Information (SLSAE 3000) are appropriate in the circumstances, but not
for the purposes of expressing a conclusion as Ì enquiries of relevant staff at corporate
issued by the Institute of Chartered Accountants
to the effectiveness of the Company’s internal and selected site level responsible for
of Sri Lanka.
controls over the preparation and presentation the preparation of the Limited Assurance
We have complied with the independence of the Report. Sustainability Indicators;
and other ethical requirements of the Code Ì enquiries about the design and
of Ethics issued by the Institute of Chartered Our engagement also included assessing the implementation of the systems and
Accountants of Sri Lanka. appropriateness of the Reasonable Assurance methods used to collect and report the
Sustainability Indicators, the suitability of the Limited Assurance Sustainability Indicators,
SLSAE 3000 requires that we plan and perform criteria, being the Consolidated Set of Global including the aggregation of the reported
the engagement to obtain reasonable assurance Reporting Initiative Sustainability Reporting information;
about whether the Reasonable Assurance Standards Guidelines, used by the Company
Sustainability Indicators are free from material in preparing and presenting the Reasonable Ì comparing the Limited Assurance
misstatement and limited assurance about Assurance Sustainability Indicators within the Sustainability Indicators to relevant
whether the Limited Assurance Sustainability Report, obtaining an understanding of the underlying sources on a sample basis
Indicators are free from material misstatement. compilation of the financial and non-financial to determine whether all the relevant
information to the sources from which it was information has been appropriately
Our firm applies Sri Lanka Standard on Quality obtained, evaluating the reasonableness included in the Report;
Management (SLSQM) 1, which requires the of estimates made by the Company, and Ì reading the Limited Assurance
firm to design, implement and operate a system re-computation of the calculations of the Sustainability Indicators presented in
of quality management including policies or Reasonable Assurance Sustainability Indicators. the Report to determine whether they
procedures regarding compliance with ethical are in line with our overall knowledge of,
requirements, professional standards and Limited assurance on the Assured and experience with, the sustainability
applicable legal and regulatory requirements. Sustainability Indicators
performance of the Company;
Our limited assurance engagement on the
Ì reading the remainder of the Report
Limited Assurance Sustainability Indicators
to determine whether there are any
consisted of making enquiries, primarily of
material misstatements of fact or
persons responsible for the preparation of the
material inconsistencies based on our
understanding obtained as part of our
assurance engagement.
INDEPENDENT ASSURANCE REPORT TO

ACCESS ENGINEERING PLC
The procedures performed in a limited Restriction of use of our report

assurance engagement vary in nature and
This report has been prepared for the Directors
timing from, and are less in extent than
of Access Engineering PLC for the purpose
for, a reasonable assurance engagement,
of providing an assurance conclusion on the
and consequently the level of assurance
Reasonable Assurance Sustainability Indicators
obtained in a limited assurance engagement
and the Limited Assurance Sustainability
is substantially lower than the assurance that
Indicators included in the Access Engineering
would have been obtained had a reasonable
PLC Integrated Annual Report for the year ended
assurance engagement been performed.
31st March 2023 and may not be suitable for
Accordingly, we do not express a reasonable
another purpose. We disclaim any assumption
assurance conclusion on the Limited Assurance
of responsibility for any reliance on this report,
Sustainability Indicators.
to any person other than the Directors of Access
Engineering PLC, or for any other purpose than
Purpose of our report
that for which it was prepared.
In accordance with the terms of our
engagement, this assurance report has been
prepared for the Company for the purpose
of assisting the Directors in determining
whether the Company’s Reasonable and
Limited Assurance Sustainability Indicators are
prepared and presented in accordance with the CHARTERED ACCOUNTANTS
Consolidated Set of Global Reporting Initiative
Colombo
Sustainability Reporting Standards Guidelines
and for no other purpose or in any other
29 August 2023
context.

STEWARDSHIP
Board of Directors 130 Remuneration Committee Report 165
Corporate Management Team 134 Investment and Subsidiary Performance
Monitoring Committee 166
Corporate Governance 138
Strategic Planning Committee Report 167
Audit Committee Report 162
Managing Key Risks 168
Related Party Transactions Review Committee Report 164
BOARD OF
DIRECTORS
Seated (Left to right) - Saumaya Dharshana Munasinghe, Dalpadoruge Anton Rohana Fernando
Standing (Left to right) - Shamal Perera, Shevantha Harindra Sudharaka Mendis,
Niroshan Dakshina Gunaratne, Dinesh Weerakkody
Seated (Left to right) - Sumal Joseph Sanjiva Perera, Joseph Christopher Joshua
Standing (Left to right) - Prof Kulatilleke Arthanayake Malik Kumar Ranasinghe,
Dilhan Perera, Ranjan John Suriyakumar Gomez
BOARD OF DIRECTORS
SUMAL JOSEPH SANJIVA PERERA DALPADORUGE ANTON ROHANA SAUMAYA DHARSHANA MUNASINGHE
Chairman FERNANDO Executive Director/Director – Business
The Founder Chairman of the Access Group Managing Director Development
of Companies founded in 1989, he is also Joining the AEL Group in 1998 as an Engineer He joined Access International (Private)
the Founder Chairman and a shareholder of based in the Engineering Division, he played Limited in 1996 and held Executive and
AEL. He continues to be the Chairman of all a vital role in enabling the division to become Senior Managerial positions throughout his
companies under the umbrella of the Access a separate business entity, encompassing successful career. He joined AEL in 2006 and
Group, AEL Group and Sathosa Motors PLC. He the name and persons of AEL. Having held was appointed to the Board of AEL as Director
is a Fellow Member of the Chartered Institute of Senior Management positions in AEL, he was – Business Development. He is also a Director of
Management Accountants – UK. It is under his appointed to the Board in 2002. In 2007, he was Access International (Private) Limited, Sathosa
vision and leadership that the Access Group of appointed as the Director/COO of AEL. He is a Motors PLC, Access Motors (Private) Limited,
Companies has grown to be a diversified and Corporate Member of Institution of Engineers Access Realties (Private) Limited, Access Realties
successful business enterprise, in a span of over Sri Lanka (IESL) and has a BSc Degree in Civil 2 (Private) Limited, ZPMC Lanka Company
three decades. Engineering from the University of Peradeniya. (Private) Limited and ARL Elevate (Private)
He is also a Director of Access International Limited.
JOSEPH CHRISTOPHER JOSHUA (Private) Limited, Eco Friendly Power Developers
Executive Vice Chairman (Private) Limited, Access Realties (Private) DILHAN PERERA
Limited, Access Realties 2 (Private) Limited, Non-Executive Director
One of the founder Directors of the Access
Harbour Village (Private) Limited, Access
Group of Companies, he was instrumental in Dilhan Perera is serving in the capacity of Non-
Projects (Private) Limited, Sathosa Motors
heading some of the most successful business Executive Director of AEL since December 2013.
PLC, WUS Logistics (Private) Limited, Access
units within the Group. A founder shareholder He is serving as the Chief Financial Officer in
Logistics (Private) Limited, Access Logistics Park
of AEL, he was the Joint Managing Director/ affiliated companies which are not coming
Ekala (Private) Limited, ARL Elevate (Private)
CEO/Managing Director of the Company under the Group of Companies of Access
Limited and Lanka AAC (Private) Limited. He
since its inception until 24th August 2021. It Engineering PLC.
was appointed the Managing Director of the
was under his leadership that AEL achieved
Company on 24th August 2021.
significant milestones in growth. He is also a RANJAN JOHN SURIYAKUMAR GOMEZ
Director of Access Realties (Private) Limited, (Resigned w. e. f. 11 May 2023)
SHEVANTHA HARINDRA SUDHARAKA
Access Realties 2 (Private) Limited, Harbour Non-Executive Director
MENDIS
Village (Private) Limited, Lanka AAC (Private) One of the Founder Directors of the AEL Group
Limited, WUS Logistics (Private) Limited, Access Executive Director/Director – Business
of Companies and has functioned as the Joint
Logistics (Private) Limited, Access Logistics Park Development
Managing Director of the Group since 1997.
Ekala (Private) Limited, ZPMC Lanka Company Having held many Executive and Management Companies under his purview include Access
(Private) Limited , ARL Elevate (Private) Limited, positions within the AEL Group, he has Holdings (Private) Limited, ATSL International
Access International (Private) Limited, Access functioned within the Engineering Division (Private) Limited, ATSL Telesoft (Private) Limited,
Energy (Private) Limited, Access Natural Water since its inception. With the genesis of AEL, he Access Energy Solutions (Private) Limited and
(Private) Limited and Eco Friendly Power became a part of that unit and was appointed Business Units of Access International (Private)
Developers (Private) Limited. He was also as Director – Business Development in 2002. He Limited.
appointed as Managing Director of Sathosa is also a Director of Access International (Private)
Motors PLC with effect from 1 April 2019. He Limited, Access Realties (Private) Limited, Blue
was appointed as Executive Vice Chairman of Star Realties (Private) Limited, Access Realties
the Company on 24th August 2021. 2 (Private) Limited, AEL East Africa Limited, Eco
Friendly Power Developers (Private) Limited and
ARL Elevate (Private) Limited.
SHAMAL PERERA NIROSHAN DAKSHINA GUNARATNE Dinesh currently serves and has served in a
Non-Executive Director Independent Non-Executive Director number of private sector listed and unlisted
boards, including GlaxoSmithKline Sri Lanka and
Shamal Perera joined Access International Appointed to the AEL Board in 2011, he is an
Ceylon Tobacco Company PLC. He was a Vice-
(Private) Limited in 2009 as Director – Associate Member of the Chartered Institute of
President of the Sri Lanka Tennis Association,
Healthcare and played a pivotal role in the Management Accountants – UK. Commencing
member of the Sri Lanka Cricket Financial
rapid growth of the business leading to Access his career at MB Financial Services (Private)
Advisory Body and a Life Member of the Sri
Healthcare becoming a well reputed and Limited, a primary dealer appointed by the
Lanka Economic Association. He is a Graduate
respected supplier in the industry. Following CBSL, he possesses over twenty-five years of
in Business Administration, a Fellow Member
this success, he was appointed to the Director experience in the field of finance and accounting
of the Chartered Institute of Management
Board of Access International (Private) Limited spanning from the garment industry including
Accountants United Kingdom, a Fellow Member
in 2014. In 2015, Access International (Private) Jewelknit, a subsidiary of Mast Industries – USA,
of the Certified Management Accountants of Sri
Limited expanded its healthcare services by accounting and operational management
Lanka, Professional Member of the Singapore
acquiring the Ninewells Hospital, and Shamal in diversified Investments including
Human Resource Institute, and has obtained a
was appointed to its Board, tasked with the manufacturing, stock brokering, Engineering
MBA from the University of Leicester in England
responsibility of restructuring the Company. design and construction.
and was awarded an Honorary Doctorate
Today, Ninewells is the leading private women’s
from American National Business University
and children’s hospital in the country. Shamal DINESH WEERAKKODY
USA. Mr. Weerakkody has received extensive
also serves as a Director in many of the Access Independent Non-Executive Director Leadership, Economic and Finance, HR, and
Group Companies. He holds an MBA from the
Dinesh Weerakkody is a former Chairman of Management training in the UK, USA, France,
University of Buckingham and a CIMA Advanced
Hatton National Bank PLC and Commercial Bank Japan, Singapore, and India. In 2008, he was
Diploma in Management Accounting. Shamal is
of Ceylon PLC. Dinesh is the Vice Chairman of conferred an Honorary membership by the
also a major shareholder of Access Engineering
the Employers’ Federation of Ceylon, Immediate Institute of Personnel Management of Sri
PLC.
Past Chairman of the International Chamber of Lanka for his contribution to Human Resources
Commerce Sri Lanka, and the Vice Chairman of Management in Sri Lanka.
PROF KULATILLEKE ARTHANAYAKE MALIK
the Sri Lanka Institute of Directors and Director
KUMAR RANASINGHE
of several companies. Dinesh has published widely on Economics,
Independent Non-Executive Director Banking and Finance, Trade issues, HR,
A member of the AEL Board since 2011, He is currently an Advisor on Treasury Affairs to Leadership, Management, International
Prof Ranasinghe is a Senior Professor in Civil the President, the Chairman of the Colombo Relations and development issues, and also has
Engineering at the University of Moratuwa Port City Economic Commission and the been involved in large-scale research projects
and the Chairman of the Information and Board of Investment of Sri Lanka. He is also a in the USA and has presented many papers at
Communication Technology Agency of Sri former Chairman of the Employees’ Trust Fund national and international level. He is a recipient
Lanka. He is a Chartered Engineer, International Board of Sri Lanka, the International Chamber of many awards, including the Jaycees Ten
Professional Engineer, Fellow of the Institution of Commerce Sri Lanka, the National Human Outstanding Young Persons Award TOYP in
of Engineers, Sri Lanka, National Academy of Resource Development Council of Sri Lanka. 1999 and the International Associations of Lions
Sciences, Sri Lanka and Institute of Project He was also an Advisor to the Prime Minister Clubs National Achievers Award in 2008 for the
Managers. He is an Independent Non-Executive of Sri Lanka, Ministry of National Policies and advancement of good governance in the Sri
Director of Resus Energy PLC, Teejay Lanka PLC Economic Affairs and to the Minister of Tourism Lankan public sector. He was conferred National
and United Motors Lanka PLC. He was a former Development and Lands. Honours - Sri Lanka Sikhamani in 2019.
Vice-Chancellor and former Dean of the Faculty
of Engineering at the University of Moratuwa,
former Chairman of Sampath Bank PLC, former
Fellow of the National University of Singapore
and former Non-Executive Director of the
Colombo Stock Exchange, Sampath Bank PLC,
Hemas Power PLC and Lanka IOC PLC.
CORPORATE MANAGEMENT TEAM
Seated (Left to right) - Joseph Christopher Joshua, Dalpadoruge Anton Rohana Fernando,
Sumal Joseph Sanjiva Perera
Standing (Left to right) - K
osala Wickramasinghe, Sameera Siyabalape, Nilantha Iddagodage,
Senarath Bandara, Lagath Gamalathge, Srimal Fernando, Vasantha Manatunge
Seated (Left to right) - Shevantha Harindra Sudharaka Mendis, Saumaya Dharshana Munasinghe
Standing (Left to right) - Manoaj Jayahsuriya, Prasanna Gunarathne, Dhanushka Munasinghe,
Thasantha Kumara, M G Dhammika Deshapriya Silva,
Pivithiri Jayasinghe, Prabashana Kumara
CORPORATE MANAGEMENT TEAM
VASANTHA MANATUNGE KOSALA WICKRAMASINGHE sector for 16 years in the capacity of Project
Senior General Manager General Manager – Planning and Manager, Senior Project Manager and Divisional
Development Coordinator in the Roads, Highways and
V K Manatunge joined the Company in early
Bridges Division. He has a BSc (Hons) in Civil
2003 and is currently functioning as the Senior Kosala joined the Company as a Project
Engineering from the University of Moratuwa
General Manager of Access Engineering. He Manager in 2007 and currently functions as the
and a Postgraduate Diploma in Highway and
obtained his Degree in Civil Engineering from General Manager (Planning and Development).
Traffic Engineering from the University of
the University of Moratuwa in 1978 and has He holds a BSc (Hons) in Civil Engineering
Moratuwa. He is also a Corporate Member of
been a Corporate Member of the Institution of from the University of Moratuwa, Postgraduate
the Institution of Engineers, Sri Lanka.
Engineers, Sri Lanka since 1982. He counts over Diploma in Structural Engineering from the
45 years of experience in the civil engineering University of Moratuwa and an MBA from Cardiff
NILANTHA IDDAGODAGE
field and has worked in various capacities in the Metropolitan University. He is also a Corporate
state sector as well as the private sector. Member of the Institution of Engineers Sri General Manager – Finance
Lanka and a Corporate Member of the Society Nilantha joined the Company in 2008 and
MANOAJ JAYAHSURIYA of Structural Engineers Sri Lanka. He has over 23 presently serves in the capacity of General
General Manager – Project Management years’ experience in various disciplines including Manager – Finance of the Company. He is
Division I structural engineering designs, contract a Fellow Member (FCA) of The Institute of
administration, project management and real Chartered Accountants of Sri Lanka and
Manoaj joined the Company in March 2006. He
estate development in Sri Lanka and overseas. an Associate Member of the Association of
has over 36 years of experience in diversified
During his tenure at Access Engineering PLC, Accounting Technicians of Sri Lanka. He holds
fields such as the Sri Lanka Navy, operations,
he was involved with major projects in many an MBA from the Postgraduate Institute of
apparel manufacturing, corporate planning
diversified fields such as Bridges & Flyovers, Port Management (PIM) of the University of Sri
and human resources management. He is a
& Airports, Buildings, Real Estate Developments Jayewardenepura and holds a BSc in Estate
Project Management Professional (PMP) who
in a senior management capacity. In addition, Management and Valuation (Special) Degree
holds an MBA from the Postgraduate Institute
he currently serves as a Director of Harbour from the University of Sri Jayewardenepura. He
of Management (PIM) of the University of
Village Private Ltd. has over 17 years of experience in the field of
Sri Jayewardenepura, BSc (Hons) from the
Finance and Auditing. He was also appointed to
University of Colombo and a Postgraduate
PRABASHANA KUMARA the Board of Access Projects (Private) Limited in
Diploma in Psychology as well as several naval
General Manager – Project Management May 2018.
professional qualifications. He also functions as
a Director of Sathosa Motors PLC and Access Division II
LAGATH GAMALATHGE
Motors Private Limited. Prabashana joined the Company in December
2006 as an Operations Manager – Telecom General Manager – Head of Production Plants
SRIMAL FERNANDO Projects. Since then he has risen from Senior Lagath joined Access Engineering in 2007 as an
Senior General Manager Manager – Telecom Projects to Deputy General Accountant for Projects and since then he has
Manager and he is currently functioning as risen from Manager to Senior Manager roles
Srimal joined the Company in August 1999 as a
a General Manager (Project Management and is now operating in his present placement
Civil Engineer and was promoted to Manager –
Division II). He holds a BSc in Electrical and as General Manager – Head of Production
Engineering in January 2004, General Manager
Electronics Engineering from the University of Plants. Lagath graduated from the University
in January 2008 and Senior General Manager
Peradeniya. He has 25 years of experience in of Sri Jayewardenapura with a Bachelor of
in 2017. He is currently heading the Central
the fields of Telecommunication and Building Commerce, specializing in marketing; following
Procurement Division of the Company. He holds
Services (M&E) and was involved in several which he also completed an MBA at Cardiff
a Bachelor’s Degree in Civil Engineering from
major projects in Sri Lanka and overseas in Key Metropolitan University. He has over 23 years
the University of Peradeniya and is a Corporate
Management roles. of experience in diversified fields such as
Member of the Institution of Engineers, Sri
manufacturing, operations and trading in Sri
Lanka. During the period of his service, he
THASANTHA KUMARA Lanka and overseas. Lagath is also a member
was involved with major projects in many
General Manager – Project Management of the Chartered Professional Managers of Sri
diversified fields such as Roads and Highways,
Division IV Lanka. He was also appointed as a Director to
Bridges, Telecommunication, Water and
the Board of Lanka AAC (Private) Limited.
Wastewater, Piling and Buildings in a senior level Thasantha joined the Company at the beginning
management capacity. He was also appointed of 2013. He has over 27 years of experience in
as a Director to the Board of WUS Logistics the field of Civil Engineering including Roads,
(Private) Limited, Access Logistics (Private) Highways and Bridge Engineering and Project
Limited and Access Logistics Park Ekala (Private) Management. He has served in the capacity
Limited. of Resident Engineer, Design Engineer, and
Executive Engineer for the Road Development
Authority for seven years and in the private
DHAMMIKA SILVA PRASANNA GUNARATHNE SENARATH BANDARA

General Manager – Head of Engineering Deputy General Manager – Contract Deputy General Manager – Business
Designs Management (Project Management Division Development
Dhammika joined Access Engineering in 2007 III) Senarath has served in the capacity of Civil
as a Senior Design Engineer. Since then he Prasanna joined the Company in 2006 as Engineer for a foreign construction Company
has risen from Manager Engineering Design a Quantity Surveyor. Having held many for seven years. He joined Access Engineering
to Senior Manager Engineering Designs and positions from middle management to Senior in 2004 as a Planning Engineer. Then he rose
is currently operating as the General Manager Management, he was appointed Deputy to Senior Engineer Planning, Senior Manager
– Engineering Designs. He holds both a BSc General Manager in 2021. He has over 19 years Engineering and is currently functioning
(Hons) in Engineering and an M.Eng in Structural of experience locally and internationally in as the Deputy General Manager – Business
Engineering from the University of Moratuwa. the fields of quantity surveying and contract Development. He graduated from the
Dhammika is a Fellow Member of the Institution administration. He is a Graduate of the University University of Peradeniya with a BSc in Civil
of Engineers, of Sri Lanka and a Member of the of Moratuwa holding a BSc (Hons) in Quantity Engineering, after which he followed through
Society of Structural Engineers of Sri Lanka. Surveying Degree and completed a Master’s with an MBA from the University of Moratuwa
He is a recognized structural Engineer eligible Degree in Construction Law and Dispute and Diploma in Commercial Arbitration.
to design and approve high rise buildings in Resolution attached to the same university. He Senarath is also a corporate member of the
Sri Lanka under the IESL and UDA regulations. is a Chartered Quantity Surveyor possessing Institution of Engineers of Sri Lanka. He has
He is an International Professional Engineer an Associate Membership from the Institute over 23 years of experience in the fields of Civil
recognized in 20 leading countries under the of Quantity Surveyors, Sri Lanka (A.I.Q.S.SL) Engineering Construction, Planning, Contract
Washington Accord. He has over 22 years and Associate Membership of The Chartered Administration, Dispute Resolution, Project
of experience in various disciplines of Civil Institute of Arbitrators (ACIArb) UK. He is also a Management and Business Development.
Engineering mainly in structural engineering diploma holder in Commercial Arbitration.
designs together with the constructions. SAMEERA SIYABALAPE
PIVITHIRI JAYASINGHE Deputy General Manager - Commercial
DHANUSHKA MUNASINGHE Deputy General Manager – Project Sameera Joined Access Engineering in 2016 as
Deputy General Manager – Project Management Division II a Treasury Manager attached to the Commercial
Management Division III Pivithiri joined Access Engineering in 2008 as Division. He has over 12 years’ experience in
Dhanushka has been with Access Engineering a Trainee Site Engineer attached to the piling Financial Analysis, Fund Management and
since 2005, starting as an Engineer for Projects division. He then rose to becoming Manager, Commercial Operations. He then rose to
and advancing to Senior Engineer, Senior Senior Manager and was promoted to Deputy becoming Senior Manager, Head of Treasury
Manager and currently holds the position of General Manager (Project Management and was promoted to Deputy General Manager
Deputy General Manager (Project Management Division II) in 2019. He holds a BSc (Hons) in Civil – Commercial in 2023. He graduated from the
Division III). He earned his BSc in Engineering Engineering from the University of Moratuwa University of Moratuwa with a BSc in Information
from the University of Peradeniya and holds an and is also a Chartered Engineer. Technology in 2011. He is a Chartered Financial
MBA in Project Management from the University Analyst with the membership at Chartered
of Moratuwa. Dhanushka is a Chartered Financial Analyst Institute – (CFA) - USA and
Engineer with corporate membership in the is a Passed Finalist of Chartered Institute of
Institution of Engineers of Sri Lanka. He is a Management Accountants (CIMA) – UK.
member of Engineers Australia, Engineering
New Zealand, and the Australian Institute of
Project Management and Institute of Chartered
Professional Managers, Sri Lanka. Additionally,
he holds a diploma in Commercial Arbitration.
CORPORATE GOVERNANCE GRI 2-9
ACCESS ENGINEERING’S APPROACH TO GOOD GOVERNANCE

At Access Engineering, we work with the understanding that high standards of corporate governance is fundamental to the sustainability of our business.
The belief that good governance is a key enabler of AEL’s competitive advantage, underpins our efforts to ensure our decisions and actions are framed
by principles of accountability, transparency, ethical management and fairness. In our quest to lead by example in promulgating the principles of good
governance, we continually review and update our governance framework and structures to reflect evolving global best practices. In this way we seek to
ensure that our business is well governed and supported by effective decision-making in order to fulfill AEL’s purpose and meet stakeholder aspirations.
CORPORATE GOVERNANCE FRAMEWORK AND STRUCTURE

AEL’s Corporate Governance Framework and multi-layered Governance Structure is designed to ensure that the Company complies with all regulatory
requirements and that business activities are always conducted in good faith to safeguard the interests of the Company and all its stakeholders.
STAKEHOLDERS Regulatory Requirements

Ì Companies Act No 7 of 2007
Government Business Community Ì Listing rules of the Colombo

and Partners Shareholders Employees and other Stock Exchange
Regulators and Investors Stakeholders
Ì SEC Rules
Ì Shop and Office Employees

(Regulation of Employment
REPORTING TO
and Remuneration) Act,
No. 19 of 1954
Ì Factories Ordinance
Chairman and Board
(No. 45 of 1942)
Managing Director
ELECTED BY REPORTING TO Internal Frameworks

Ì Articles of Association
Ì Board Charter
BOARD SUBCOMMITTEES
Ì TOR of Board Committees
Ì Board-approved policy
Investment frameworks for governance,
Related Party and risk and operational areas
Strategic
Audit Remuneration Transactions Subsidiary
Planning
Committee Committee Review Performance
Committee
Committee Monitoring
Committee
Voluntary Codes and Best
Practices
REPORTING Ì Code of Best Practice on

TO Corporate Governance
Ì GRI Standards issued by the

Global Reporting Initiative
Enterprise Ì IR Framework issued by IIRC
Internal
Corporate Management Risk
Audit
Management Ì Sustainable Development
Goals (SDG’s)
GRI 2-15, 2-17
BOARD OF DIRECTORS
AEL has a unitary Board, where no individual member of the Board has unfettered powers of decision making. The general powers of the Board and the
Directors are conferred in the Company’s Articles of Association, while the Terms of Reference for the Board are set out in the Board Charter. The Board
Charter covers the powers and authority of the Board and provides a clear and concise overview of the responsibilities and accountability of Board
members, collectively and individually.
BOARD COMPOSITION All Non-Executive Directors are independent of In addition, a strong mix of skills, experience
AEL’s current Board comprises five (5) Executive management and free of any business or other and expertise among Board members
Directors and six (6) Non-Executive Directors, relationship that could materially interfere with support the Board in discharging its collective
of which three (3) function in an independent or could reasonably be perceived to materially responsibilities. The Chairman with assistance
capacity, thus ensuring no individual or group interfere with the exercise of their unfettered of the Remuneration Committee reviews the
of individuals is able to dominate the decision- and independent judgement. The Chairman quality of the AEL Board on an ongoing basis.
making process. holds separate meetings with the Non-
Executive Directors without the presence of
the Executive Directors, as and when needed.
Board Diversity
Structure
Non-Independent - 73% Independent - 27%
Tenture
Less than
Over 10 Years - 73% 5 - 10 Years - 18%
5 Years - 9%
Age
30-40 - 9% 41-50 - 18% 51-60 - 45% 60+ - 28%
Managing Conflict of Interest Trait Number of Directors with Trait

To ensure conflicts of interest are avoided, all
Executive Directors are required to adhere to the
out
provisions of the “Company Policy on Disciplinary Leadership 11 of 11
Management” regarding the avoidance of any
potential conflict of interest. Implementation of Strategy and out
11 of 11
this policy is periodically monitored by a five- Commercial Acumen
member committee. Non-Executive Directors are
out
required to submit a dated and signed declaration Industry Expertise 8 of 11
of independence in line with the criteria for the
determination of Directors independence as out
Health and Safety 7 of 11
specified under the Code of Best Practice for
Corporate Governance jointly issued by the SEC and
out
the Institute of Chartered Accountants of Sri Lanka. Risk Management 8 of 11
Such declarations are submitted to the Company
Secretary who is required to keep the Board aware out
Financial Acumen 8 of 11
of all such declarations. A Director deemed to have
a conflict of interest is expected to recuse himself
out
from participating in any meetings where the item Digital Acumen 9 of 11
in which he has an interest is being discussed.
CORPORATE GOVERNANCE GRI 2-10, 2-12
Full Name Nature of the No of Board Seats held No of Board Seats held
Directorship in Listed Companies in Non Listed Companies
Mr. Sumal Joseph Sanjiva Perera Executive 2 45
Mr. Joseph Christopher Joshua Executive 2 14
Mr. Dalpadoruge Anton Rohana Fernando Executive 2 16
Mr. Shevantha Harindra Sudharaka Mendis Executive 1 9
Mr. Saumaya Dharshana Munasinghe Executive 2 9
Mr. Ranjan John Suriyakumar Gomez Non-Executive 1 19
Mr. Suresh Dilhan Perera Non-Executive 1 24
Mr. Shamal Perera Non-Executive 1 20
Prof. Kulathilaka Arthanayake Malik Kumar Ranasinghe Independent Non-Executive 4 -
Mr. Niroshan Dakshina Gunarathne Independent Non-Executive 1 2
Mr. Dinesh Stephan Weerakkody Independent Non-Executive 4 5
Directors Training In addition, the Board is accountable for;
To ensure that Directors’ contribution to the

Board/Committees remains relevant, all Board Governance
Directors are encouraged to undertake relevant
training and knowledge building programmes
Ì Review of governance arrangements
to augment their knowledge, skills and
understanding of the business and operating Ì Appointments to and removals from the Board
environment.
Ì Terms of reference for and membership of Board committees
Duties and Responsibilities of the AEL
Board
As the highest governing body within Strategy and direction
the organization, the AEL Board is the key
custodian responsible for establishing the
Ì Approval of strategy and annual budgets
Company’s vision and mission as well as setting
corporate values, defining strategic objectives Ì Authorisation of acquisition and disposal activities
and approving necessary capital allocations to
Ì Affirmation of risk management strategies and risk appetite
catalyse the stated vision and mission.
Matters such as the appointment and removal

of Directors and Board Sub Committee Risk management, accountability and control
members are managed directly under the
purview of the Board of Directors. The Board is
Ì Approval of financial statements, other updates to the market and recommendations
also the sole authority responsible for reviewing
on dividends
and updating the Company’s governance
frameworks, including the terms of reference of Ì Approval of authority levels, financial and treasury policies
Board Sub Committees.
Ì Review of internal controls and risk management practices
Ì Approval of Health and Safety policies

Regulatory Compliance Ethics and Integrity AEL's Code of Ethics

The Board collectively and Directors The Board sets the tone from the top for
individually, are expected to act in promoting the highest standards of ethics Honesty
accordance with the laws of the country, and integrity in all business activities. Towards
as applicable to the activities of the this end, the Board approved Code of Ethics Ì Conducting business in a
Company. In executing this responsibility, seeks to instill the values of Honesty, Integrity, professional manner
the Board is responsible for ensuring all Discipline and Self Regulation to enable Ì Upholding the principles of fair play
relevant procedures and controls are in employees to counter corruption at a more
place to maintain compliance with all personal level. Every member of our AEL
applicable laws and regulations. family including new recruits and Directors are
required to abide by our Code of Ethics.
The Board has appointed a dedicated Integrity
Compliance Committee to provide In addition the Employee Handbook
Ì Being transparent about business
oversight and conduct necessary due which summarizes the Company's policies,
activities
diligence activities to support the work regulations, guidelines, and benefits
Company’s zero tolerance policy for non- also establishes the behavioural norms Ì Serving all stakeholders with honest
compliance of regulatory matters. expected by the Board. AEL’s Policy on values
Disciplinary Management further reinforces
Risk Management and Control the Company’s zero tolerance approach
The Board, as the ultimate authority for risk towards corruption. The Policy on Disciplinary
Management describes acts of misbehaviour
Discipline
oversight, retains the right to establish the
Company’s appetite and tolerance for risk that amount to corruption coupled with steps Ì Having Company interest over self
to support long term strategic objectives. that will be taken in a case of occurrence. interest
Also included in the Policy on Disciplinary
Ì Carrying out work in an orderly
Refer the Enterprise Risk Management Management, is the Directive on managing
manner
Report on pages 168 to 180 for Conflict of Interest. This directive outlines
comprehensive details on AEL’s risk the many forms of conflicts of interest that
management architecture established may emerge, as well as the actions that may
under the stewardship of the Board. result in the event of violations. The Policy Self Regulation
on Disciplinary Management, including the
Financial Reporting and Internal Directive on Conflict of Interest is distributed Ì Recognising the rights of all
Control Systems via mail to all employees and is also accessible stakeholders
The Board, together with the Board Audit to all employees via the intranet. Ì Carrying out activities with due
Committee is jointly responsible for the consideration to their rights
establishment of a proper system of
financial and internal controls to support
timely, transparent and accurate disclosure
of financial results to stakeholders in line
with regulatory requirements. The Board
approves all financial statements prior to
publication. Company’s External Auditors
- Messrs KPMG Chartered Accountants
provide an independent opinion annually
to assure the Board and stakeholders
that the Company’s financial statements
reflect a true and fair view of operations.
CORPORATE GOVERNANCE GRI 2-14
The Company’s Whistleblowing Policy nature and scale of AEL’s operations, the Board Division of Responsibility Between the
provides leadership in framing the Company’s Chairman, Executive Vice Chairman and
The Company’s Whistleblowing Policy is
Sustainability Policy, with due consideration to the Managing Director
another important aspect of accountability
and transparency and is a mechanism that material economic, social and environmental The role of the Chairman is separate from
allows employees to voice concerns in a impacts. The Policy cascades through to the that of the Company’s Managing Director
responsible and effective manner. This policy operational level via specific approaches to thus providing the assurance that there is an
is intended to assist individuals to report address each identified Material Matter. Refer adequate balance of power and authority and
alleged malpractice or impropriety without the Material Topics on pages 36 to 41 for that no individual has unfettered powers of
the fear of reprisal. Whistleblower complaints comprehensive details on the economic, social decision and control.
are reviewed by a five member committee. and environmental topics deemed important
Throughout the investigation process, two-way in driving AEL towards becoming a sustainable The Chairman who functions in an executive
communication is maintained to ensure the business entity. capacity, leads the Board to ensure that
whistleblower is kept informed of the progress the Board fulfills its mandate as outlined by
Stakeholder Engagement the Board Charter. As such the Chairman is
of the investigation. The Whistleblowing Policy
can also be accessed through the Company’s The Board assigns high priority to stakeholder responsible for directing the affairs of the
intranet. Our whistle blowing policy is reviewed engagement. Towards this end a wide range of Board while maintaining effective external
regularly to ensure its suitability, adequacy and targeted engagement strategies are adopted relationships in line with governance best
effectiveness with necessary improvements in order to maximize the outcomes derived practices. As the head of the Board, the
accordingly. from the engagement process. Refer the Chairman is required to encourage active and
Stakeholder Engagement on pages 29 to 35 effective participation of all Directors at Board
As part of the annual Audit Plan, the Company’s for comprehensive details on the mechanisms Meetings. He is also responsible for making
Internal Audit team evaluates business units adopted. the Board Members aware of the importance
for corruption, with results discussed with of creating value to all stakeholders of the
the corresponding business unit along with Shareholder Relations and Annual Company. Chairman’s responsibilities are
corrective action to be taken. A subsequent General Meeting discussed in detail on page 151 and 152.
audit verifies the implementation of corrective The Board plays a vital oversight role in
action. A summary of the same is also presented cultivating shareholders relations. Well aware The Executive Vice Chairman, as the head of the
to the Audit Committee quarterly. of their fiduciary responsibility towards Corporate Management Team, is accountable
shareholders, the AEL Board seeks to uphold to the Board for the day-to-day management
Moreover AEL is also a member of TRACE the principles of timely and accurate disclosure of the Company vis-a-vis Board approved
International, a globally recognised non- of financial information. Financial disclosures strategic objectives and policy frameworks. The
profit organization dedicated towards the made by the Company are reviewed and MD is responsible for the management of the
promotion of anti-bribery compliance and approved by the Board prior to publication. Company and operations in coordination with
good governance. As a TRACE International These principles are applied to all financial the Vice Chairman.
member, AEL has adopted the ‘TRACE Code publications, including the quarterly results
of Conduct”, and our systems and processes Board Meetings
and the Annual Report.
are subject to stringent verification as part of Board meetings are scheduled well in advance,
the annual TRACE International certification The Board sets the date for the Annual General with all Directors being provided adequate
renewal programme. Meeting (AGM) after the conclusion of the notice. Prior to each Board or Committee
particular financial year. Notice of AGM, the meeting, the Company Secretary is required
IT Governance Annual Report and accounts and any other to work with the Chairman to set the agenda
IT Governance is ultimately the responsibility resolutions together with the corresponding for the next scheduled Board meeting. The
of AEL’s Board. The Board exercises strict information, are circulated to shareholders Company Secretary is further required to
control over IT matters by reviewing the a minimum 15 working days prior to the compile the Board papers including all matters
appropriateness of the Company’s IT strategy AGM. The Board will seek to ensure that the relevant to the agenda and circulate the same
and approving necessary improvements. The resolutions and supporting information are to all Directors 7 working days prior to the
implementation of the IT strategy falls under sufficiently detailed and comprehensive meeting.
the purview of the Company’s IT Department. to allow shareholders to form a view on all
matters to be considered. Voting procedures at Directors are expected to dedicate sufficient
Sustainability Governance the AGM are also circulated to the shareholders time before a meeting to review Board
in advance. AEL’s next AGM is scheduled to be papers and call for additional information
As the main governing body within the
held on 22nd September 2023. and clarifications and to follow up on issues.
organization, the AEL Board is charged with
In the process of preparing for the meeting,
overseeing the Company’s transition towards
Directors are allowed to reach out to members
sustainable operations. Considering the
of the Corporate Management team or seek their responsibilities are discharged effectively. Meeting minutes, once approved by the
independent external advice, for which the Members of the Company’s Corporate Chairman are then circulated among Directors
cost is borne by the Company. Management may also be invited to attend by the Company Secretary not later than 7
Board Meetings to provide explanations for working days after the meeting.
It is mandatory that all Directors attend Board various agenda matters. All matters tabled
Meetings. Directors are also expected to at the Board Meeting are minuted by the
actively participate at every meeting to ensure Company Secretary.
Director Name Director Statues Meeting Title

Board Audit Related Party Investment
Meeting Committee Transactions & Subsidiary
Meeting Review Performance
Committee Monitoring
Meeting Committee Meeting
1 Mr. S J S Perera ED 4/4 - - -

2 Mr. R J S Gomez NED 0/4 - - -
3 Mr. J C Joshua ED 4/4 - - 4/4
4 Mr. S H S Mendis ED 3/4 - - -
5 Mr. D A R Fernando ED 4/4 - 4/4 4/4
6 Mr. S D Munasinghe ED 3/4 - - -
7 Prof. K A M K Ranasinghe Independent NED 4/4 4/4 4/4 4/4
8 Mr. N D Gunaratne Independent NED 4/4 4/4 4/4 4/4
9 Mr. S D Perera NED 4/4 4/4 - -
10 Mr. D Weerakkody Independent NED 3/4 3/4 4/4 4/4
11 Mr. Shamal J S Perera NED 4/4 4/4 - 3/4
Key Focus areas for the

Board in FY 2022/23
Strategy and Business Governance
Ì Approval of the Corporate Strategic Plan Ì Review of policy frameworks

Ì Continuous review of strategic plan, Ì Succession planning
considering impact of economic crisis Ì Ensure corruption free business
on business operations environment
Risk Oversight Control
Ì Review of impacts from the Ì Ensure an effective control

operating environment environment within the business
Ì Performance review of projects Ì Implementation of new controls for
Ì Risk Review the betterment of the business
Ì Balance sheet and liquidity management
CORPORATE GOVERNANCE GRI 2-13, 2-8, 405-1
Evaluating Board Performance

All Directors individually and the Board collectively carries out a self-evaluation to assess their performance against economic, environmental and social
targets/goals set at the beginning of each year. Results of these evaluations are properly minuted for future reference.
Delegation of Authority by the Board

Audit Committee Related Party Transactions
Board Sub Committees Review Committee
To assist in the discharge of its duties and
responsibilities, the Board has appointed a
number of Sub Committees. In addition to the
mandatory Audit Committee, Remuneration E NE INE E NE INE
Committee, Related Party Transactions Review None 2 3 1 None 3
Committee, the Board has established two
Full report on pages 162 and 163. Full report on pages 164.
additional Board Sub Committees - the
Investment and Subsidiary Performance
Monitoring Committee and the Strategic Remuneration Committee Strategic Planning Committee
Planning Committee. These Committees help
the Board to meet its regulatory commitments
while also enabling it to uphold good
governance. E NE INE E NE INE
None 1 3 3 None 1
Each Committee is chaired by an Independent
Full report on page 165. Full report on page 167.
Non-executive Director and operates as per the
Terms of Reference set out by the respective
Committee Charter. The TOR includes roles and Members of the Audit Committee:
Investment and Subsidiary
responsibilities, duties, powers and authority
Performance Monitoring Committee
and the composition. Committee TOR’s are Niroshan Dakshina Independent
reviewed on an annual basis by the Board and Gunaratne Non-Executive Director
updated as needed. (Chairman)
E NE INE Prof. Kulatilleke Independent
3 None 3 Arthanayake Malik Non-Executive Director
Full report on page 166. Kumar Ranasinghe
Dinesh Weerakkody Independent

Corporate Management Team Report on Board Subcommittees Non-Executive Director
AEL’s Corporate Management Team receives Audit Committee Suresh Dilan Perera Non-Executive Director
their mandate from the Board. The Corporate The committee is responsible for the integrity
Management Team is responsible for Shamal J S Perera Non-Executive Director
of Financial Statements, risk management,
implementing the objectives, strategies, and business ethics, internal control, internal audit
policies set forth by the Board and effective function, compliance, review External Auditor’s The Audit Committee Charter formalizes the
functioning of the Company. The Corporate performance and Financial Reporting. authority, responsibilities and specific duties
Management team comprises of the Executive pertaining to the Committee as follows;
Vice Chairman (EVC), Managing Director (MD), Audit Committee has continued to review 1. Overseeing preparation, presentation and
Board Members and Senior Management and report to the Board on the Group’s adequacy of disclosures in the Financial
team who meet at regular intervals to financial reporting, internal control and risk Statements of the Company, in accordance
discuss the management of business and management processes and the performance, with Sri Lanka Accounting Standards;
operating activities. The core of AEL, Project independence and effectiveness of the External
implementation is carried out by the Project Auditor, Messrs KPMG, Chartered Accountants. 2. Ensuring compliance with financial
Management Divisions wherein General This report describes the Committee’s major reporting requirements, information
Managers and Deputy General Managers areas of focus since their last report in financial requirements of the Companies Act and
work on plans and targets, matching those year 2021/22. The Committee appointed by other relevant financial related regulations
to practical time frames and ensuring any the Board of Directors comprises Three (03) and requirements;
shortfalls or delays are speedily attended to. Independent Non-Executive Directors and One
(01) Non-Executive Director of the Board.
GRI 405-1
3. Ascertaining that the Company’s internal Related Party Transactions Review Investment and Subsidiary Performance
controls and risk management processes Committee Monitoring Committee
are adequate and meet the Sri Lanka The committee is responsible for ensuring that The committee is responsible for assessing
Auditing Standards requirements; all related party transactions of the Company and monitoring existing and new investments
4. Assessing the independence and are consistent with the regulatory provisions of AEL and report observations and
performance of the Company’s External laid down by the Corporate Governance recommendations to the Board.
Auditor; Directions, LKAS 24 and the Listing Rules of the
CSE. Since the investment decisions and
5. Making recommendations to the Board
performance of previous investment decisions
pertaining to appointment, re-appointment The objective of the Related Party Transactions are essential to be reviewed, this Board
and removal of External Auditors and Review Committee is to ensure that the Subcommittee was set up, comprising Three
to approve remuneration and terms of interests of shareholders as a whole are taken (03) Independent Non-Executive Directors
engagement of the External Auditor. into account by a Listed Entity when entering and Two (02) Executive Directors. The purpose
into Related Party Transactions. The Rules of the Committee is to discuss prospective
Audit Committee Report is given on page 162 set out in this Section further provide certain investments and performance monitoring of
and 163. measures to prevent Directors, Managing subsidiaries/associates prior to discussion of
Director, or Substantial Shareholders taking the relevant matters at Board Meetings.
Remuneration Committee
advantage of their positions. This Committee
The committee is responsible for setting comprises Three (03) Independent Non- Members of the Committee on
up the remuneration policy and making Executive Directors and One (01) Executive Investment and Subsidiary Performance
recommendations to the Board on recruitment, Director of the Board. Monitoring:
remuneration and performance evaluation.
Members of the Related Party Prof. Kulathilake Independent
In order to attract and retain the best human Transactions Review Committee: Arthanakyake Malik Non-Executive
capital to sustain operations while rewarding Kumar Ranasighe Director
performance, the Remuneration Committee is Niroshan Dakshina Independent (Chairman)
tasked with recommending the remuneration Gunaratne Non-Executive Director
payable to the Executive Directors of the Niroshan Dakshina Independent
(Chairman)
Company and/or equivalent position thereof. Gunaratne Non-Executive
Dinesh Weerakkody Independent Director
This recommendation is made to the Board,
Non-Executive Director
which is responsible for the final determination Dinesh Weerakkody Independent
upon consideration of such recommendations. Prof. Kulatilleke Independent Non-Executive
Arthanayake Malik Non-Executive Director Director
Comprising Three (03) Independent Non- Kumar Ranasinghe
Executive Directors and One (01) Non- Joseph Christopher Executive Vice
Executive Director of the Board, this Committee Dalpadoruge Managing Director Joshua Chairman
is appointed by the Board. Anton Rohana
Dalpadoruge Anton Managing Director
Fernando
Rohana Fernando
(By Invitation)
Members of the Remuneration
Committee: Shamal J S Perera Non-Executive
The purpose of the Committee is to provide Director
Dinesh Weerakkody Independent independent review, approval and oversight
(Chairman) Non-Executive Director of all proposed Related Party Transactions in The Committee’s mandate includes:
Prof. Kulatilleke Independent accordance with the Related Party Transactions
Ì Assessment and notification of their
Arthanayake Malik Non-Executive Director Policy. The Related Party Transactions Review
recommendations to the Board on
Kumar Ranasinghe Committee Charter formalizes the authority,
major new investments in subsidiaries /
responsibilities and specific duties pertaining
Niroshan Dakshina Independent associates and capital investments in the
to the Committee. Refer page 164 for the
Gunaratne Non-Executive Director parent Company
Related Party Transactions Review Committee
Suresh Dilhan Non-Executive Director Report. Ì Assessment and notification of their
Perera
recommendations to the Board on
divestment of subsidiaries in the parent
Company
CORPORATE GOVERNANCE GRI 2-27, 405-1
Ì Monitoring the budgets of subsidiaries Ì Ensuring management has established an The Committee’s mandate includes:
and associates and submit their effective strategic planning process with
1. Establish and monitor whether the
observations and recommendations to time line targets
organization’s objectives are met
the Board
Ì Advising the Board on the trends
2. Evaluate Company policies, formulate new
Ì Review the progress of subsidiary in organisation’s industry, market/
policies, advise and take the initiative to
companies of AEL community, and core competencies
revise existing policies
Ì Advice the Management on what action Ì Periodically reviewing the vision, mission
3. Ensure that policies are in compliance with
to be taken in any instances of non- and strategic plan, and recommending
laws and regulations
compliance noticed in investment and changes to the Board
budgetary monitoring of subsidiaries / 4. Ensure that project management,
Ì Reviewing and forwarding to the Board,
associates accounting, procurement, stores and
strategic plans of subsidiary organisations
human resource functions are carried out
Investment and Subsidiary Performance to assure they are aligned with the
according to established processes and
Monitoring Committee Report is given on page system’s strategic direction and goals
procedures
166.
Ì Reviewing major new programmes and
5. Ensure that control systems are laid down
services
Strategic Planning Committee and operated to promote most economical,
The committee is responsible for focusing on The Committee met regularly to fulfill the efficient and effective use of resources as
planning and setting strategic directions to above tasks assigned. well as safeguard assets
achieve goals and objectives of the Company.
Strategic Planning Committee Report is given Beyond the mandatory requirements to set-
The Strategic Planning Committee assists on page 167. up the Audit, Remuneration and Related
the Board with its responsibilities for the Party Transactions Review Committees, AEL
Compliance Committee has set-up the Strategic Planning Committee,
Organisation’s vision, mission and strategic
direction. The Strategic Planning Committee The Compliance Committee is appointed by Compliance Committee and the Investment
provides a useful forum for Board Members to the Managing Director and is set-up to further and Subsidiary Performance Monitoring
share views on strategic issues. The Committee strengthen good governance at the Corporate Committee described above, voluntarily for
addresses strategic issues in detail that require Management level. This mechanism will bridge enhanced transparency and good governance
more focused study prior to bringing a matter the gap between the Senior Management on par with industry practices. Occasionally,
to the full Board. and the Board of Directors when important where it may be more expedient to do so, the
decisions are to be made on operational Board may delegate some of its powers to a
issues. The Board oversees the performance Subcommittee on an ad hoc basis.
Members of the Strategic Planning
Committee: of the Company against the triple bottom
line objectives and the Code of Conduct Integrated Management Systems
Sumal Joseph Sanjiva Chairman based on the recommendations made by the At AEL, we have established and implemented
Perera (Chairman) Compliance Committee via the Managing Quality, Environment and Health and Safety
Director. Regular meetings are conducted Management Systems which meet the
Joseph Christopher Executive Vice
to discuss the compliance matters and new requirements of international standards.
Joshua Chairman
trends. Further the Company’s Quality, Environment
Dalpadoruge Anton Managing Director and Health and Safety Management Systems
Rohana Fernando Members of the Compliance Committee: are upgraded and certified to the latest
Prof Kulatilleke Independent International Standards ISO 9001:2015, ISO
Arthanayake Malik Non-Executive Rohana Fernando Managing Director 14001:2015 and ISO 45001:2018 respectively.
Kumar Ranasinghe Director (Chairman)
Management systems are driven by risk based
V.K. Manatunge Senior General
Key Responsibilities of the Strategic Planning thinking and interacts with all activities of
(Convener) Manager
Committee include – the organization, identify context/needs and
Manoaj Jayahsuriya General expectations of interested parties, assessing
Ì Making recommendations to the Board Manager (Project and managing risk, satisfying interested parties
on the organization’s vision, mission, Management while enabling AEL to improve its processes,
strategic initiatives, major programs and Division I) reduce environmental impacts, protect the
services workforce and increase the market share.
Kosala General Manager
Ì Identify critical strategic issues facing the Wickramasinghe (Planning &
organisation and assisting in analysis of Development)
alternative strategic options
The Corporate Management of AEL ensures Environment Management System (EMS) involves identifying, assessing and controlling
its commitment and provision of adequate risks to workers in all workplace operations.
AEL reflects its green consciousness via
resources for the effective implementation of The core elements of our Health & Safety
the establishment and maintenance of the
management systems, while internal audits are Management System includes management
Environment Management Systems. This
carried out to ensure conformance with the involvement and commitment, hazard
enables to eliminate/reduce significant
management systems and periodically review identification and risk assessment, hazard
environmental impacts caused by the
for continual improvement. control, training, emergency response, incident
operations carried out by the organisation.
This is done by identifying and assessing reporting & investigation and communication.
Quality Management System (QMS) environmental impacts, establishing The system enables us to protect our workforce,
environmental control measures, formulating comply with laws and regulations, reduce cost,
The QMS defines processes which will result
and implementing management programmes enhance employee relations and create an
in quality of products and services instead of
to minimise that impact. This enables to - incident free workplace.
adopting a reactive approach of detecting
product and service nonconformance. Further,
Ì Manage and improve our environmental Our Health & Safety Policy
it establishes policies, objectives, processes and
performance (managing negative
procedures in order to continually improve the Access Engineering PLC is committed to
impacts) and increase the efficiency of
effectiveness and efficiency of its performance. ensuring the health and safety of staff and
resource utilization (e.g. reduce waste and
It ensures; workers, contractors, suppliers, visitors and
energy use)
other stakeholders via an effective health and
Ì The ability of AEL to deliver the desired
Ì Comply with environmental laws and safety management system to manage health
product and/or service consistently, while
regulations and safety risks, and eliminate hazards that
meeting relevant interested parties' needs
Ì Improve our standing and reputation could result in injury or disease.
and expectations and
among staff, clients, partners and other Ì The Company consults the staff, workers,
Ì That the products and services are
stakeholders contractors and other stakeholders to
produced at an optimum cost with
Ì Adapt to changing environments (in enhance the effectiveness of the Health
efficient use of the available resources
operations and/or products and services) and Safety Management System and
– materials, human, technology and
provides appropriate training, information,
information
instruction, equipment and supervision
Our Environment Policy
for them to work safely
Our Quality Policy Ì AEL is committed to carry out its
operations to have a minimal impact to Ì The Company will meet these
Ì AEL is committed to satisfy customer
the environment as its strategic direction commitments by providing necessary
needs and expectations by providing high
for a sustainable business resources and adopting safe work
quality products & services with effective,
practices and procedures, which comply
efficient and innovative solutions Ì The Company analyses the internal and with or exceed the requirements of all
Ì The top management determines the external factors affecting the performance Acts, Regulations and other statutory
context of the organization by strategically of its EMS provisions governing Occupational Health
analysing and reviewing its internal & Ì The Company identifies and reviews the and Safety
external factors to support its strategic needs and expectations of interested Ì Health and safety objectives, are
direction parties including compliance obligations established to maintain and continually
Ì The Company is committed towards with regard to the environment, and improve the health and safety at
the identification of relevant interested establishes communication with workplace and work environment
parties, their needs & expectations the relevant interested parties on
and their fulfillment to enhance the environmental obligations External Frameworks
sustainability of the business Ì The environmental management system The main external frameworks that govern
Ì To meet with the above commitment, the is continually improved by reviewing, the system of corporate governance at AEL
Company continually improves its quality assessing and setting targets & objectives include The Companies Act No. 07 of 2007, the
management system whilst adhering to for enhancing its performance Listing Rules of the Colombo Stock Exchange
the applicable regulatory requirements and the Code of Best Practice on Corporate
through cost effective, profitable, safe and Health & Safety Management System Governance jointly issued by CA Sri Lanka and
sound environmental friendly operations Health and Safety Management System at AEL the Securities and Exchange Commission of
is a systematic approach that has been put in Sri Lanka (SEC). Company’s compliance with
place to minimize the risk of injury and illness. It each of these provisions is given in pages 161,
148 to 150 respectively.
CORPORATE GOVERNANCE
Statement of Compliance under Section 7.6 of the Listing Rules of the Colombo Stock Exchange on Corporate Governance
Principal Description Comment/Reference Compliance

Status
CSE Listing Rule 7.6 – Contents of Annual Report

(i) Names of persons who during the financial year were directors Board of Directors Complied
of the Entity
(ii) Principal activities of the Entity and its subsidiaries during the Notes to the Financial Statements Complied
year and any changes therein
(iii) The names and the number of shares held by the 20 largest Investor Capital Complied
holders of voting and non-voting shares and the percentage
of such shares held
(iv) The Public Holding percentage Investor Capital Complied
(v) A statement of each Director’s holding and Chief Executive Investor Capital Complied
Officer holding in shares of the Entity at the beginning and end
of each financial year
(vi) Information pertaining to material foreseeable risk factors of Enterprise Risk Management Complied
the Entity
(vii) Details of material issues pertaining to employees and industrial During 2022/23 there were no material issues pertaining to employees
relations of the Entity and industrial relations of the Company
(viii) Extents, locations, valuations and the number of buildings of Annual Report of the Board of Directors on the Complied
the Entity’s land holdings and investment properties affairs of the Company
(ix) Number of shares representing the Entity’s stated capital Annual Report of the Board of Directors on the Complied
affairs of the Company
(x) A distribution schedule of the number of holders in each class Investor Capital Complied
of equity securities, and the percentage of their total holdings
(xi) Financial ratios and market price information Investor Capital Complied
(xii) Significant changes in the Entity’s or its subsidiaries’ fixed assets Notes to the Financial Statements Complied
and the market value of land, if the value differs substantially
from the book value.
(xiii) Details of funds raised through a public issue, rights issue and a In 2022/23 no funds were raised through a public issue, rights issue or
private placement during the year a private placement.
(xiv) Employee Share Option Schemes and Employee Share The Company does not have any Employee Share Option Schemes or
Purchase Schemes Employee Share Purchase Schemes
(xv) Disclosures pertaining to Corporate Governance practices in Ì Board of Directors Complied
terms of Rules 7.10.3, 7.10.5 c. and 7.10.6 c. of Section 7 of the Ì Compliance with Code of Best Practice on
Rules Corporate Governance jointly issued by
Chartered Accountants of Sri Lanka and
Securities and Exchange Commission of Sri
Lanka
Ì Annual Report of the Board of Directors on
the affairs of the Company
Ì Notes to the Financial Statements
Ì Audit Committee Report
Ì Remuneration Committee Report
(xvi) Related Party transactions exceeding 10% of the Equity or Ì Related Party Transactions Review Complied
5% of the total assets of the Entity as per Audited Financial Committee Report
Statements, whichever is lower Ì Notes to the Financial Statements
Statement of Compliance under Section 7.10 of the Listing Rules of the Colombo Stock Exchange on Corporate Governance
Principal Description Comment/Reference Compliance

Status
CSE Listing Rule 7.10 – Corporate Governance

a. and b. Compliance with corporate governance rules Annual Report of the Board of Directors on the Complied
affairs of the Company
CSE Listing Rule 7.10.1 – Non-Executive Directors
a., b.and c. Composition of the Non-Executive Directors Board of Directors Complied
CSE Listing Rule 7.10.2 – Independent Directors
a. Composition of the Independent Directors Board of Directors Complied
b. Signed and dated declaration of each Independent Compliance with Code of Best Practice on Complied
Director Corporate Governance jointly issued by
Lanka
CSE Listing Rule 7.10.3 – Disclosures Relating to Directors
a. and b. Determination of independence or non-independence Board of Directors Complied
of each NED
Compliance with Code of Best Practice on
Corporate Governance jointly issued by
Lanka
c. A brief Résumé of each Director Board of Directors Complied
d. Brief Résumé of newly appointed Director/s During 2022/23 no Director was appointed to the board as a Non-
Executive Director
CSE Listing Rule 7.10.4 – Criteria for Defining ‘Independence’
a. to h. Criteria to meet to be an Independent Director Compliance with Code of Best Practice on Complied
Corporate Governance jointly issued by
Lanka
CSE Listing Rule 7.10.5 – Remuneration Committee
a. Composition Corporate Governance Complied
b. Functions Corporate Governance Complied
c. Disclosures in the Annual Report Ì Annual Report of the Board of Directors Complied
on the affairs of the Company
Ì Notes to the Financial Statements
Ì Remuneration Committee Report
CSE Listing Rule 7.10.6 – Audit Committee

a. Composition Audit Committee Report Complied
b. Functions Audit Committee Report Complied
c. Disclosures in the Annual Report Audit Committee Report Complied
THE COMPANY’S ADHERENCE TO CODE OF BEST PRACTICES ON CORPORATE GOVERNANCE ISSUED JOINTLY BY THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA AND THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA.
Principal Comment Compliance

Status
A Directors
A.1 The Board
A.1 The Company is headed by a Unitary Board comprising of eleven members. The primary objective of Complied
the Board is to provide necessary stewardship, strategic direction, a policy framework and a governance
structure in order to achieve the Vision of the Company. The Board regularly monitors the performance of
the Company against goals and targets set on a periodic basis and discusses the same at Board meetings in
great detail. Composition of the Board is set out on page 139.
All Executive Directors are a part of the Company’s Corporate Management Team. The Board consists of
professionals from diverse fields such as Engineering, Accounting, Finance, Business Development, Human
Resources and Consultancy, bringing independent judgment and perspectives for the efficient functioning
of the Board and discharge of duties.
They also sufficiently represent professional, academic and entrepreneurial domains, all of which are
necessary for the effective functioning of the Board. Additionally, all Members of the Board possess
adequate levels of skills, competencies and knowledge in their respective fields of specialization so as to
provide overall strategic direction to the Company. The Board also sets the level of Risk Appetite of the
Company.
There are five Subcommittees of the Board of which three are mandatory and two is voluntary. These
Committees ensure the Company’s adherence to best practices of corporate governance in conducting
business.
A.1.1 During the year, four scheduled Board meetings were conducted, all of which were well planned and Complied
informed in advance and all Members were eligible to attend. Attendance of Members at meetings is given
on page 143.
As and when the need arises Special Board meetings are also conveyed though no such meeting was held
during the year under review.
In addition to the above, the Board Subcommittees also met at various frequencies to discuss matters under
their purview as elaborated in detail under their respective Reports.
A.1.2 A brief profile of each member of the Board of directors and Corporate Management team is given on Complied
pages 130 to 137.
A.1.3 The Board collectively and the Directors individually, have recognized their duty to act in accordance with Complied
the prevailing Laws of the Country. The Board has put in place the Compliance Committee, which is headed
by the Managing Director to ensure compliance with all necessary rules and regulations applicable to the
Company.
The Board also complies with the sound framework of business practices in place, which further strengthens
compliance with existing laws and regulations. In matters of strategic importance to the Company, the
Board obtains independent professional advice, if it deems necessary, at the expense of the Company.
A.1.4 All Directors had access to the services of a professional Company secretarial body, which ensured that Complied
the Board received information on a timely manner for the effective conduct of meetings. The firm also
provided the Board with advice on matters relating to compliance with rules and regulations, proper
conduct of meetings and the adoption of best practices of corporate governance. The firm is also
responsible for the distribution of the Company’s Annual Report to its shareholders.
GRI 2-11

Status
A.1.5 All Directors are encouraged to bring independent judgment on matters relating to strategic direction of Complied
the Company, effective utilization of resources, performance and business conduct. The vast experience and
knowledge they possess in their specialized fields ensure the execution of this judgment.
Transparency of the judgments is further enhanced with the existence of three Independent Non-Executive
Directors who continue to critically evaluate the decisions of the Executive Directors. The Board has put in
place a culture of accepting the contribution of each member and all Directors have an equal opportunity
to express their views and ideas. The composition of the Board is sufficient enough to ensure balance of
power and no Director dominates the conduct of meetings or the Board’s decision-making process.
A.1.6 All Directors dedicated an adequate amount of time on matters relating to the Company and the Complied
Board. Their contribution to the Company was evident in the participation at Board meetings, Board
Subcommittee meetings and in the decisions passed through circular resolution. Relevant Board Papers,
together with supplementary information, were sent at least a week prior to the Board meetings so as to
give them adequate time to critically review and study the contents. In the event additional information
was requested by the Board through the Company Secretary the same was made available at the earliest in
order to enhance the effectiveness of Board decisions.
A.1.7 One third of the directors could request for a resolution to be presented to the Board for the best interest of Complied
the Company.
A.1.8 A new Director who is appointed to the Board receives an orientation on the operations, risk management, Complied
internal control and other areas from the Managing Director in order to familiarize the new Director with the
Company.
Majority of the Independent Non-Executive Directors are members of the Sri Lanka Institute of Directors.
Each Director was well aware of the need to continuously enhance his knowledge and skills so as to
effectively perform his duties as a Director. Knowledge sharing among members, attending seminars
organized by relevant professional bodies, participating in industry advancement sessions and policy
making initiatives are some of the methods adopted during the year with respect to training and
development.
A.2 Chairman and Chief Executive Officer (CEO)
A.2 The Chairman is responsible for the effective conduct of the business of the Board, while the executive Complied
responsibility for management of the Company’s business is vested with the Managing Director.
Hence there is a balance of power and authority. The Managing Director is supported by the Corporate
Management in managing the day-to-day affairs of the Company. Decision-making at the highest level
happens by adopting the rule of simple majority. No one individual is vested with unfettered powers of
decision-making.
A.2.1 The Chairman is mainly responsible for leading, directing and controlling the affairs of the Board including Complied
the Board Balance, effective conduct of Board meetings and Special meetings of the Board. He is also
responsible for maintaining effective external relationships. Day-to-day affairs of the Company are headed
by the Executive Vice Chairman (EVC) who is supported by the Managing Director (MD). The EVC and MD
give leadership to the Corporate Management team who is collectively responsible for the conduct of day-
to-day operations.
A.3 Chairman’s Role
A.3 As the highest member of the organization, the Chairman is committed to the practice of good corporate Complied
governance. As the head at the Board meetings, the Chairman ensures that the Board members receive
adequate information prior to every meeting together with the agenda to enable them to take accurate
decisions about the Company, facilitates discussions at the meetings to include the views of all Members,
encourages participation of all members in the decision-making process and ensures accurate recording of
proceedings via minutes through the Company Secretary. He is responsible for ensuring that the objectives
of the meeting are achieved and adequately discussed among its members.
The Chairman is also responsible for the composition and the structure of the Board, representing the
views of the Company to the public, maintaining relationships with shareholders and overseeing the self-
evaluation of Board members performance.

Status
A.3.1 The Chairman is responsible for making sure that the agenda, minutes of prior meetings, Board papers Complied
and supplementary information are circulated among the members in advance, giving sufficient time for
preparation. Agenda for each Board Meeting is finalized by the Chairman in consultation with the Company
Secretary and where necessary, feedback from the other Members is taken.
(A.4) Financial Acumen
A.4 A brief profile of each member of the Board of directors is given on pages 130 to 133. Complied
A.5 Board Balance
A.5 The Board compromises of eleven Directors of which five are Executive Directors and six are Non-Executive. Complied to
This ratio was maintained throughout the Financial Year. Composition of the Board is set out on page 139 2013 Code
No individual or small group of individuals can dominate the Board’s decision-taking. Non-Executive
Directors are not involved in the day-to-day operations of the Company, thus ensures independent
judgment. Non-Executive Directors are also veterans in their respective fields both academically and
professionally thus deemed suitable to hold office.
A.5.1 55% of the Board of Directors of the Company operates in a Non-Executive capacity. Every Non-Executive Complied
Director on the Board has excelled in his respective discipline. Thus their contribution to the decision-
making of the Board was noteworthy during the year, both quantitatively as well as qualitatively.
A.5.2 The Board of Directors of the company comprises six Non-Executive Directors out of which three Complied to
are Independent. Composition of the Board is set out on page 139 (six NED in which four should be 2013 Code
independent)
A.5.3 Three Independent Non-Executive Directors on the Board are not involved in day-to-day affairs of the Complied
Company and they do not have any business or other relationship that could materially interfere with the
exercise of their unfettered and independent judgment. Additionally, each Independent Non-Executive
Director submits a written declaration of his independence to the Board on an annual basis. This written
annual submission is also considered as a part of their annual performance evaluation. Based on the written
declaration submitted by the Independent Non-Executive Directors for the financial year 2022/23, they were
considered as continuing to be independent.
A.5.4 During the year, each Non-Executive Director submitted a dated and signed declaration regarding Complied
their independence against the specified criteria set out in the Code. While this declaration fulfilled the
requirements of Schedule K of this Code, no circumstance rose for the determination of independence by
the Board outside the criteria set out by the Code.
A.5.5 Based on the declarations submitted to the Board and other information available, the following Non- Complied
Executive Directors’ of the Board were decided to be independent as at the end of the Financial Year.
Ì Mr. D S Weerakkody
Ì Prof. K A M K Ranasinghe
Ì Mr. N D Gunaratne
The Board considered the annual declaration made by the Non-Executive Directors’ to be a fair
representation of their independence.
A.5.6 This is not applicable as there are no Alternate Directors in the Company. N/A
A.5.7 This is not applicable as the Chairman of the Company is not the CEO.(There should be a SID because Complied to
Chairman is not an independent director) 2013 Code
A.5.8 Please refer comment under A.5.7. Complied to
2013 Code
GRI 2-10

Status
A.5.9 The Chairman holds meetings with the NEDs’ without the presence of Executive Directors as and when Complied
necessary. During the year no need arose for such meeting.
A.5.10 During the year, there were no matters of the Company that the Board was unable to resolve unanimously. Complied
However, in the event such matter arises, the Company Secretary records same in sufficient detail in the
Board minutes. These minutes are circulated among Board members prior to the next meeting.
A.6 Supply of Information
A.6 The Board was provided with timely information by way of Management Reports, Proposals and Board Complied
Papers during the year. The information was made available by the Company Secretary along with the
agenda at least seven days prior to the meeting in order to provide sufficient, time for preparation.
In the event, information provided was not sufficient supplementary information was provided on the
request of Board Members.
A.6.1 Members of the Board (mainly Executive) are provided with Management Reports, Proposals and Project Complied
Performance Reports on a monthly basis, both in a quantitative and qualitative manner. In addition to
this, the entire Board is provided with Board Papers and other relevant information by the Corporate
Management. The Board is also appraised on areas such as CSR, Risk Management, Corporate Governance,
Human Resources and Legal Compliance by the Corporate Management time to time. instances where
additional information is required the same is requested, from the Corporate Management or the
responsible individuals. As and when necessary, the Corporate Management also makes presentations to
the Board in order to enable sound decision-making.
The Board has free and open access to all Corporate Management members. The Chairman ensured that all
Board Members were briefed sufficiently on any matter/s arising from the meeting/s. Any Director who was
unable to attend a particular Board meeting is briefed on the proceedings before the next meeting by the
Chairman and through the minutes of the meeting.
A.6.2 As a norm, all Board papers are circulated to the Board members 10 working days before hand for them Complied
to study the materials and prepare themselves for the meeting and within two weeks of the meeting
the decisions taken and the discussion points are minuted and circulated for their review/comments and
finalization.
A.7 Appointments to the Board
A.7 All Board appointments are based on the capacity of the individual concerned to pass the ‘fit and proper’ Complied
test, which in turn is based on the qualifications, experience and the value that can be added by the
individual to the Board as well as to the Company. Existing Directors are vested with the autonomy to
critically evaluate the potential candidate in the above test and a final decision is taken by the Board
collectively.
A.7.1 The Company does not have a Nomination Committee in place. Complied to
2013 Code
However, the existing Board members function in a manner that is similar to a formally appointed
Nomination Committee in matters concerning new appointments to the Board.
A.7.2 During the year, the Board critically evaluated the ‘quality’ of the Board in terms of their qualifications, Complied
experience, independence and the value that can be added to the Company to effectively meet the
demands of the Company. The Board is satisfied with its composition and the level of qualifications,
knowledge and experience it possesses as a whole in order to meet strategic demands facing the Company.
A.7.3 No new Director was appointed during the year 2022/23, and where necessary all new appointments are Complied
promptly communicated to the CSE together with a brief résumé containing the member’s expertise, other
Directorships held and independence for public dissemination.

Status
A.8 Re-Election
A.8 Directors are re-elected with the sanction of the shareholders at the Annual General Meeting of the Complied
Company. The Articles of Association of the Company requires one NED to appear for re-election every year
and as such 2022 saw the re-election of Company Professor K A M K Ranasinghe who retired by rotation.
Generally, Directors who retire are the ones who have held office for the longest period since election and
reappointment. Recommendations on the re-election of Directors are given by the Company Secretary and
the same is reviewed by the Board.
In terms of the Articles of Association of the Company Shamal J S Perera will retire by rotation and being
eligible will offer him-self for re-election at the forthcoming Annual General Meeting.
A.8.1 In terms of the Articles of Association of the Company, one NED is required to retire by rotation every year. Complied
The re-election of NEDs’ is sanctioned by the shareholders at the AGM of the Company.
A.8.2 No directors were newly appointed during the year (2022/23). In the event a new Director is appointed to Complied
the Board, he/she will offer himself/herself for election by the shareholders at the first opportunity.
A.8.3 Resignation
A.8.3 Before the formal resignation the Directors explain their reasons for the resignation decision and the same N/A. No
is being minuted under the Board meeting minutes. Also when Directors send their resignation letters, they resignation of
explain the decision factors in the resignation letter for the documentary purposes. During the Financial directors during
Year 2022/23, there was no resignation of Directors. the year
A.9 Appraisal of Board Performance
A.9 Performance of the Board is evaluated from time to time with at least once a year to ensure that Complied
responsibilities are satisfactorily discharged. Appraisal of Board performance is usually coordinated by the
Company Secretary and overseen by the Chairman.
A.9.1 In order to retain the enthusiasm in company operations overall the Board members meet the Chairman Complied
and conduct face to face discussions on the members anticipated suggestions for the betterment of the
Company and the Chairman addresses the performance remarks of the individual Board members that he
has observed during the year.
A.9.2 Members of the Board and Board Committees carried out self-assessments of their performance for the FY Complied
2022/23 against targets set at the beginning of the year. Minutes of the results of these assessments were
recorded by the Company Secretary and areas for improvement in the FY 2023/24 were identified. Each
individual Director was satisfied of his performance in the FY 2022/23. Over the years, both individual and
collective performance appraisal of the Board has facilitated continuous development and improvement.
A.9.3 When a member‘s name is up for re-election the rest of the Board members discuss the value addition Complied
brought by that particular member to the Board and the contribution made thereof. And based on the
discussion points the decision is made as to re-elect the member or not to. The discussion points are
minuted under the Board meeting minutes.
A.9.4 The performance of the Board has been appraised though a formalized process of individual appraisal by Complied
enabling each member to self-appraise on an anonymous basis
A. 10 Disclosure of Information in Respect of Directors
A.10 Shareholders are informed as and when necessary about changes to the Board, interest in the shares of the Complied
Company and other relevant details through disclosures and financial results released to the CSE for public
dissemination.
A.10.1 Please refer the following pages 130 to 133 for the information relating to Directors of the Company. Complied
A.11 Appraisal of Chief Executive Officer
A.11 Not applicable as the Company doesn’t have a CEO. N/A
A.11.1 Not applicable as the Company doesn’t have a CEO. N/A
A.11.2 Not applicable as the Company doesn’t have a CEO. N/A

Status
B Directors’ Remuneration
B.1 Remuneration Procedure
B.1 Remuneration payable to the Executive Directors of the Company is recommended by the Remuneration Complied
Committee.
Remuneration payable to the Non-Executive Directors of the Company is recommended by the Board as a
whole. No Director is involved in deciding his own remuneration.
B.1.1 The Remuneration Committee is responsible for recommending the remuneration payable to Executive Complied
Directors. The Committee makes recommendations to the Board, which is responsible for the final
determination.
B.1.2 The Remuneration Committee appointed by the Board consisted of four Non-Executive Directors out of Complied
which three were independent.
B.1.3 Details of the Remuneration Committee are given in page 165 of this Report. Complied
B.1.4 Remuneration payable to the Non-Executive Directors is decided by the Board as a whole. The Non- Complied
Executive Directors are paid a monthly fee for being a Member of the Board and its Sub-committees. Since
the Non-Executive Directors are not involved in the day-to-day affairs of the Company they are not entitled
to any performance incentives.
B.1.5 The Remuneration Committee consulted the Chairman and the Vice Chairman in providing Complied
recommendations regarding the remuneration of other Executive Directors. The Chairman and the Vice
Chairman are not remunerated by the Company.
B.2 Level and Make Up of Remuneration
B.2 The remuneration package of both Executive and Non-Executive Directors is based on a variety of factors Complied
including their contribution to the Company, market rates of remuneration and their expectation. The Board
is aware of the fact that the level of remuneration should be sufficient enough to attract and retain Directors
of high calibre to direct the Company.
Portion of the remuneration of the Executive Directors’ is linked to their performance which is evaluated
against targets set and agreed at the beginning of the period.
B.2.1 The Remuneration Committee considers the value addition of Executive Directors and their contribution Complied
to the achievement of short and long-term objectives in structuring their remuneration packages so as to
ensure that nothing is paid more than necessary.
B.2.2 As the remuneration of the key personnel are decided and approved by the Board based on the evaluation Complied
and recommendation made by the Remuneration committee in parity with the current market rates and
packages provided, the Executive Directors’ remuneration also follows by the same process, providing
specific targets in the ED’s TOR which directs the ED in achieving the organizational performance goals
overall.
B.2.3 The Committee conducts an analysis of other companies in the industry in deciding the levels of Complied
remuneration of the Company.
If the need arises the Company carries out an annual salary survey in determining the level of remuneration
of key positions and their increment.
B.2.4 Companies within the Group operate in different industry and market sectors where the remuneration and Complied
employment conditions are substantially different to those of the Company.
B.2.5 The extent of contribution and value addition towards achieving the set targets and objectives of a Complied
particular year is the key determinant in deciding the performance related element of the remuneration of
the Executive Directors.
B.2.6 Not applicable as there are no Executive share options in the Company. N/A

Status
B.2.7 Provisions of Schedule E of the Code were followed in designing schemes of performance related Complied
remuneration.
B.2.8 There are no compensation commitments (including pension contributions) in Directors contracts of N/A
service.
B.2.9 Not applicable as the Company’s objective is to avoid early termination by all means. Complied
B.2.10 The remuneration of Non-Executive Directors reflects the degree of responsibilities and the level of time
commitment extended by them in contributing and adding value to the Company’s decision-making. The Complied
NEDs’ do not have any share options in the Company.
B.3 Disclosure of Remuneration
B.3 Compensation paid to Key Management Personnel is given in page 255 of this Report. Complied
Remuneration committee Report is given in the page no. 165.

B.3.1 Names of the members of the Remuneration Committee and the compensation paid to Key Management Complied
Personnel are given in pages 145 & 255 of this Report respectively.
C Relations with Shareholders
C.1 Constructive Use of the Annual General Meeting (AGM) and conduct of General Meetings
C.1 The Company considers the AGM as the primary tool of communication with shareholders. The Notice of Complied
Meeting inviting all shareholders is given on page 281 of this Report. All shareholders are free to raise any
queries from the Board, on matters relating to the Company at the AGM. The Board encourages an open
dialogue with shareholders at the AGM.
Usual proposals adopted at the AGM include the Annual Report and the Accounts, reappointment of
Directors and Auditors and any other matter that require shareholder approval as per the provisions of the
Articles Association of the Company.
C.1.1 All related papers and the Notice of Meeting are sent to the shareholders 15 days before the AGM through Complied
the Company Secretary.
C.1.2 To receive and consider the Annual Report and Accounts is the first resolution adopted at every AGM. Complied
Further, the Company proposes separate resolutions on each substantially separate issue. Hence
shareholders are given the opportunity to vote separately on each substantial issue.
C.1.3 The secretariat and admin teams have strict follow up from the day the notice of the meeting along Complied
with the Annual report is sent to the shareholders. They track the appointed proxies at the time of the
registration of the AGM and the Secretary team do note the casted votes in favor of the passed resolutions
accordingly.
C.1.4 Before the AGM date, the Company Board and the respective sub committees meet and organize how the Complied
AGM should process and run through the possible questions that the management may face. Accordingly
all the committee heads are prepared in an instance where a related question is posted to answer them.
C.1.5 The notice of meeting and related documents are circulated to the Shareholders 15 working days prior to Complied
the AGM.
Summary of the procedures governing voting at the AGM is provided in the proxy form, which is circulated
to Shareholders together with the notice of meeting 15 working days prior to the AGM.
The Board encourages all Shareholders to attend and actively participate in the AGM. The Shareholders may
raise any queries they have with the Directors.

Status
C.2 Communication with Shareholders
C.2 The AGM, Annual Report and other General Meetings (as and when required) are the primary means of Complied
communication with shareholders. Additionally, the Company makes disclosures on
Material and price sensitive matters from time to time to the CSE for dissemination among the public.
Similarly the Company’s website www.accessengsl.com is updated with financial and project related
information, corporate disclosures and other press releases for public viewing.
C.2.1 Refer comment given under C.2 Complied
C.2.2 The Company’s policy on information dissemination is based on the prime need of creating a fair market for Complied
the Company’s securities among all market participants. Hence the Company focuses on accurate, timely,
relevant and open information dissemination and communication so as to avoid any market malpractice or
doubt.
C.2.3 The Company has disclosed the contact information in all their publications and always encourage Complied
our shareholders to connect with us. Apart from that in our website we have allocated a separate page
indicating Investor information such as the market price per share
C.2.4 The point of contact is given in page 07 of this Report Complied
C.2.5 The shareholders are free to correspond with the Board either directly or through the Company Secretary Complied
as they wish. The Directors can also be met by the shareholders on appointment. The Company Secretary
keeps a record of all valid correspondence from the shareholders and directs them to the appropriate Board
member who in return would respond as necessary. The Company also has a dedicated investor relations
email that could be equally utilized by any shareholder to correspond.
C.2.6 Both the Company Secretary as well as members of the Board act as contact points in relation to Complied
shareholder matters.
C.2.7 Responses for shareholder queries directly sent to individual members of the Board are sent by the Complied
respective members. Queries directed to the Company Secretary are responded by the Directors via the
Company Secretary.
C.3 Major and Material Transactions
C.3 Refer the Related Party Transactions Review Committee Report on page 164 and Note 29 of Notes to the Complied
Financial Statements.
C.3.1 Refer the Related Party Transactions Review Committee Report on page 164 and Note 29 of Notes to the Complied
C.3.2 Refer the Related Party Transactions Review Committee Report on page 164 and Note 29 of Notes to the Complied
D Accountability and Audit
D.1 Financial Reporting Complied
D.1 The Annual Report of the Board of Directors on the Affairs of the Company making the relevant declarations Complied
is given on pages 182 to 187 of this Report.
D.1.1 All related papers and the notice of the meeting are sent to the shareholders 15 days before the AGM Complied
through the company secretaries.
D.1.2 Audited Financial Statements giving a true and fair view of the operations of the Company, Interim Financial Complied
Statements and other price sensitive disclosures are made by the Company periodically and as and when
required in accordance with the applicable rules and regulations.
In these aspects the Company complied with the requirements of the Companies Act No. 07 of 2007,
Registrar of Companies, Department of Inland Revenue and Sri Lanka Accounting Standards and reporting
requirements of the Colombo Stock Exchange and the Securities and Exchange Commission of Sri Lanka.

Status
D.1.3 The Financial statements itself has the respective declaration stating that all standards, legal requirements Complied
are met with and the General Manager – Finance and the Managing Director signs the financial statements
below that declaration. Apart from that an annual declaration is also signed by the GM – Finance and the
MD confirming the same.
D.1.4 The Annual Report of the Board of Directors on the Affairs of the Company making the relevant Complied
declarations, is given on pages 182 to 187 of this Report.
D.1.5 ‘Directors responsibility for Financial Reporting’, ‘Statement of Auditors’ and the ‘Directors Statement on Complied
Internal Control’ are given on pages 184, 190 to 195 and 189 respectively.
D.1.6 ‘Management Discussion and Analysis’ is given on pages 83 of this Report Complied
D.1.7 Not applicable as there was no serious loss of capital during the year. N/A
D.1.8 The Company has set in place an effective and comprehensive system of internal control for identifying, Complied
recording and disclosing related party transactions. This system ratified by the Board ensures that there is no
conflict of interest when transacting with related parties and that there will be no bias favorable treatment.
All related party transactions as defined in Sri Lanka Accounting Standards – LKAS 24 ‘Related Party
Transactions’ are disclosed in Note 29 to the Financial Statements.
D.2 Risk Management and Internal Controls
D.2 The Company operates with a sound system of internal control within an integrated risk management Complied
framework that is formulated and ratified by the Board. This system ensures that shareholders interests and
Company assets are safeguarded.
The Board Audit Committee is responsible to the Board for ensuring the effective operation of the system of
internal controls to achieve objectives of the Company.
D.2.1 The Board is responsible for formulating and implementing appropriate systems of internal control for the Complied
Group and in turn assessing its effectiveness. The Group’s internal audit division assists the Board of Directors
and the Audit Committee in carrying out the above task. Any internal control system has its inherent
limitations. The Board is aware of the inherent limitations and has taken appropriate steps to minimize same.
The Directors’ responsibility for maintaining a sound system of internal control is given in the Board of
Directors’ Statement on Internal Control on pages 189.
D.2.2 The confirmation of the Risk assessment conducted and the principal risks faced by the Company are Complied
disclosed in the Enterprise Risk Management report is given on pages 168 to 180 of this Report.
D.2.3 The Company has an Internal Audit Function headed by the ‘Head of Internal Audit’ and overseen by the Complied
Board Audit Committee.
D.2.4 Operation and review of internal controls is done by the Internal Audit function as a continuous and Complied
ongoing process including internal control over financial reporting. These reports are forwarded to the
Audit Committee for review to ensure that the system of internal control and the risk management process
are effective. The Board is responsible for making disclosures on internal controls.
In 2022/23 the Board was satisfied with the effectiveness of the system of internal control in place within
the Company.
D.2.5 Refer page 189 for the ‘Directors Statement on Internal Controls’. Complied
D.3 Audit Committee
D.3 Accounting policies and financial reporting principles of the Company are formulated so as to ensure Complied
compliance with all applicable standards, rules and other regulations. At times the guidance of the External
Auditors is also sought in this process.
D.3.1 The Audit Committee comprises three Independent Non-Executive Directors and two Non-Executive Complied
Director of the Board. The Chairman of the Committee is an Independent Non-Executive Director

Status
D.3.2 AEL has developed a Charter for the Audit Committee clearly defining the objective/ Duties of the Complied
Committee, each member’s duties and responsibilities and administrative arrangements etc.
D.3.3 The Audit committee report enhances a descriptive note regarding the Audit committee and how they Complied
discharge their duties and also show how they have allocated their valuable time by participating to the
meetings and decision making. (Ref. Page No. 162 and 163)
D.4 Related Party Transaction Review Committee
D.4 As a group norm when transacting with Related parties of the group, the responsible parties stress on the Complied
price at which the transaction takes place to make sure that neither the buyer nor the seller will make extra
ordinary gain through the same.
D.4.1 Company has considered the guidelines provided in the LKAS 24 in defining the Related parties, in Complied
developing the charter for the Related Party Transaction committee.
D.4.2 In compliance with the requirements of the voluntary code of the Corporate Governance the Related Party Complied
Transaction Review Committee comprise of three Non-Executive Directors who are also independent. Also
the Managing Director attends the meetings upon invitation by the committee.
D.4.3 Company has developed a Charter for the Related Party Transaction Review Committee clearly defining Complied
the objective/ Duties of the Committee, each member’s duties and responsibilities and administrative
arrangements etc.
D.5 Code of Business Conduct and Ethics
D.5 Refer page 139 of this Report. – Corporate governance – Board of Directors. Complied
D.5.1 AEL has a Code of Ethics which includes the code of conduct and is circulated to Directors and all Complied
employees. The Board ensures that the Directors and the employees strictly adhere to the Code of Ethics of
the Company in their duties so as not to adversely affect the brand of access in any manner. The violation of
the code of ethics is an offence which is subject to disciplinary action.
D.5.2 The price sensitive transactions relating to Investments are monitored through the Investment Evaluation Complied
and Monitoring committee and through the Audit Committee. Significant matters are informed to the
board for further action
D.5.3 Refer the report of the Related Party Transaction Review Committee on page no 164 Complied
D.5.4 Refer page 139 of this Report – Corporate governance – Board of Directors. Complied
D.6 Corporate Governance Disclosures
D.6 This Report on the Company’s compliance with the CA Sri Lanka/SEC ‘Code of Corporate Governance’ meets Complied
this requirement.
D.6.1 Same as D.5 Complied
E Institutional Investors
E.1 Shareholder Voting
E.1 Board encourages the active participation of Institutional shareholders at the AGM. In addition, Executive Complied
Directors meet institutional shareholders upon their request to discuss about the Company’s past
performance and future strategies.
E.1.1 The most structured and continuous dialogue the Company has with the shareholders is the AGM. The Complied
Chairman is available to meet shareholders at the end of each AGM and can be met on appointment on
other occasions. The Chairman then communicates the views and concerns of shareholders to the Board as
a whole.

Status
E.2 Evaluation of Governance Disclosure
E.2 Institutional investors are encouraged to give due weight to all relevant factors drawn to their attention in Complied
evaluating Companies’ governance arrangements.
F Other Investors
F.1 Investing/Divesting Decisions
F.1 The Company encourages individual shareholders to carry-out adequate analysis or seek independent Complied
advice in investing or divesting decisions. The Company facilitates this process by providing information
necessary for the same on a timely and unbiased basis.
This Integrated Report prepared by the Company gives sufficient information to shareholders to carry out
their own analysis of the Company and its operations.
F.2 Shareholder Voting
F.2 The Company encourages individual shareholders to participate in Annual General Meetings and exercise Complied
their voting rights.
G Internet of things and cyber security.
G.1 Refer Risk Management on page 178 of this Annual Report (Information & Technology Risk) Complied
G.2 The functions of the CISO is carried out by the Manager IT reporting to the Senior General Manager. Complied
The Manager IT is responsible for assessing various Internet of things and Cyber security requirements and
to implement necessary strategies, which is discussed with the Senior General Manager to aid in handling
unforeseen events such as data loss, data and security breaches.
G.3 Relevant risks are discussed at Internal Audit Report and reported the same to Audit Committee. The Audit Complied
Committee along with the Manager IT reviews potential and ongoing cyber security risks and strategizes a
course of action. High risk matters are referred to the Board for further actions.
G.4 Issues are addressed at the Integrated Risk Management audit annually carried out by an independent third Complied
party and identified issues are reported through the management letter. The audit findings are thoroughly
and periodically reviewed in order to mitigate any potential or ongoing risks as, Internet of Things and Cyber
security has become an essential part of the business model due to the ongoing global conditions.
G.5 The Company adheres to the required level of cyber security by analysing the gravity of the requirement Complied
and the IT department does continuous monitoring to mitigate the identified risk.
H Environment, Society and Governance (ESG)
H.1.1Reporting of Refer Page 106 to 122 of the Annual Report - Social and Environmental Capital for this requirement Complied
ESG Factors
H.1.2 Refer Page 106 to 122 of the Annual Report - Social and Environmental Capital for this requirement Complied
Environmental
Factors
H.1.3 Social Refer Page 106 to 122 of the Annual Report - Social and Environmental Capital for this requirement Complied
Factors
H.1.4 Governance Refer Page 138 to 167 of the Annual Report – Corporate Governance for this requirement Complied
H.1.5 Board’s role AEL Engineering understands its role and responsibility in ESG reporting and ensure that the company Complied
on ESG Factors adheres to the ESG reporting requirements.
Statement of Compliance under Section 168 of Companies Act No. 7 of 2007
Principal Description Compliance

Comment
Status
Section 168 – Contents of Annual Report

(1) (a) The nature of the business of the Group and the Company together Complied
Notes to the Financial Statements
with any change thereof during the accounting period
(1) (b) Signed Financial Statements of the Group and the Company for the Complied
Financial Statements
accounting period completed
(1) (c) Auditor’s Report on the Financial Statements and any group Financial Complied
Independent Auditors’ Report
Statements
(1) (d) Change in accounting policies made during the accounting period Notes to the Financial Statements Complied
(1) (e) Particulars of entries in the interests register made during the Complied
accounting period
(1) (f ) Remuneration and other benefits of Directors during the accounting Complied
period
(1) (g) Total amount of donations made by the Company during the Complied
accounting period
(1) (h) Names of the persons holding office as Directors of the Company as Complied
at the end of the accounting period and the names of any persons
Board of Directors
who ceased to hold office as Directors of the Company during the
accounting period
(1) (i) Amounts payable by the Company to the person or firm holding Complied
office as Auditor of the Company as audit fees and as a separate
item, fees payable by the Company for other services provided by
that person or firm
(1) (j) Particulars of any relationship (other than that of Auditor)which Complied
the Auditor has with or any interests which the Auditor has in, the Annual Report of the Board of Directors
Company or any of its subsidiaries
(1) (k) Be signed on behalf of the Board by two Directors of the Company Financial Statements Complied
AUDIT COMMITTEE REPORT

The Committee was established under the MEETING ATTENDANCE
Corporate Governance rules of Section 7. 10. 6
The Committee met on the following occasions (physically or virtually as required) to discuss matters
of the Colombo Stock Exchange and the Code
relating to the financial year of which the members’ attendance was as follows:
of Best Practice on Corporate Governance
issued jointly by The Institute of Chartered
Accountants of Sri Lanka and the Securities Name of Directors 12.05.2022 10.08.2022 10.11.2022 09.02.2023
and Exchange Commission of Sri Lanka. The
Committee continued to review and report to Mr. N D Gunaratne    
the Board on the Group's financial reporting, Prof K A M K Ranasinghe    
internal control and risk management processes
Mr. D S Weerakkody    
and the performance, independence and
effectiveness of External Auditors. Mr. S D Perera    
Mr. Shamal J S Perera    
ROLE OF THE AUDIT COMMITTEE
The role of the Audit Committee is to oversee
In addition to the Committee members, the meetings were attended by the Managing Director, GM-
and report to the Board on the Group’s financial
Finance and the Head of Internal Audit on invitation. The Company Secretaries were also present at
reporting system, compliance with legal and
every meeting.
regulatory requirements, internal control
mechanism, risk management process, internal TERMS OF REFERENCE
audit function and review of independence and
performance of External Auditors, with a view to The Audit Committee has its terms of reference, dealing with its authority and duties, which is
safeguarding the interests of the shareholders established for the purpose of assisting the Board in fulfilling their oversight responsibilities that
and all other stakeholders. include the integrity of the Financial Statements, risk management, business ethics, internal control,
compliance with legal and regulatory requirements, review of Independent External Auditors’
COMMITTEE COMPOSITION performance and the Internal Audit.
The Committee continued to comprise five COMPLIANCE

Non-Executive Directors as set out below. To
FINANCIAL REPORTING AND SIGNIFICANT JUDGEMENT
ensure compliance with the requirements of the
Rule 7.10.6 of the Listing Rules of the Colombo The Committee is responsible for reviewing whether suitable accounting policies have been adopted
Stock Exchange and the Code of Best Practice and whether Management has made appropriate estimates and judgments in the preparation of the
on Corporate Governance issued jointly by Financial Statements. As part of its review the Committee considers the clarity and completeness
The Institute of Chartered Accountants of Sri of disclosures in the Financial Statements to assess whether these have been set appropriately in
Lanka and Securities Exchange Commission of the context. The Committee also keeps under review the impact of any actual or expected changes
Sri Lanka, Committee membership comprises to accounting standards applicable to the Group and provides general oversight in relation to the
three (3) Independent Non-Executive Directors financial policies of the Group.
and two (2) Non-Executive Directors of the
Board. The Audit Committee reviewed the quarterly and annual Financial Statements prior to its publication
and the review included:
Category Number of
Ì Appropriateness and changes in accounting policies
Directors
Ì Significant estimates and judgments made by the Management
Independent 3
Ì Compliance with relevant accounting standards and applicable regulatory requirements
Non-Executive Directors
Non-Executive Directors 2 Ì Impairment of assets
Ì Issues arising from the internal audit and independent external audit
The brief profiles of the existing members of the
Ì The Group’s/Company’s ability to continue as a going concern
Committee are given on pages 130 to 133 of the
Annual Report.
LAWS AND REGULATIONS WHISTLE-BLOWING The Committee reviewed the risk and going
The Audit Committee reviewed the reports The Audit Committee evaluates various issues concern assessment carried out by the
submitted by the Management and the Head reported by the employees or stakeholders Management after considering the existing
of Internal Audit on compliance with applicable relating to doubtful or certain, unethical or and potential financial impact of the economic
laws and regulations. The Committee is satisfied unlawful matters. The Group’s/Company’s crisis in the budget, cash flow projections and
that laws and regulations are duly complied Code of Ethics ensures that each employee funding arrangements. Further, the Committee
with and statutory payments have been made is aware of the whistle-blowing policy and is is satisfied that the Group and the Company
on a timely basis. encouraged to resort to the relevant whistle- is able to continue as a going concern and
blowing protocols, in case of any incident. The adequate disclosures have been made in these
Audit & Accountability prevalence and effectiveness of the whistle- Financial Statements.
Internal Controls blowing policy are constantly monitored by the

CONCLUSION
Audit Committee and the incidents reported are
The Committee is satisfied that an effective investigated thoroughly. The whistle-blowing The Audit Committee is satisfied that the
system of internal control is in place to provide policy in place always ensures strict anonymity effectiveness of the organizational structure of
reasonable assurance on safeguarding the of the whistle-blower’s identity. the Group and of the implementation of Group’s/
Company’s assets and reliability of Financial Company’s accounting policies and operational
Statements. INDEPENDENT AUDITORS controls provide reasonable assurance that the
The Audit Committee reviewed the affairs of the Group are managed in accordance
Effectiveness of the Company’s system of independence and objectivity of the with Group policies and that the Group assets
internal controls is evaluated through reports Independent External Auditors, Messrs KPMG are properly accounted for and adequately
provided by the Management, Internal Auditors Sri Lanka, and Chartered Accountants. The safeguarded. The Committee is also satisfied
and Independent External Auditors. Audit Committee has met with the External that the Company and its subsidiaries are able
Auditors to review their audit plan and any to continue as a going concern.
INTERNAL AUDIT observations made by them. The Committee
The Committee is responsible for reviewing has received a declaration from the External
the role and effectiveness of the internal Auditors, confirming that they do not have
audit function by monitoring the results of its any relationship or interest in the Company
work and the responses of Management to its or its subsidiaries. The Committee reviewed
recommendations. The Audit Committee meets the non-audit services and its impact on the N D GUNARATNE
the Internal Auditors on a quarterly basis and independence of the External Auditors. The Chairman
reviews their findings in order to identify risks Audit Committee has recommended to the Audit Committee
attached to different areas of operation and Board that Messrs KPMG be reappointed as
effectiveness of internal controls. the Independent External Auditor and that the 29 August 2023
reappointment be included in the agenda of
The Committee reviewed and approved the the Annual General Meeting.
2022/23 Internal Audit Plan and continued to
monitor progress against this Plan during the POTENTIAL FINANCIAL IMPLICATION
ARISING CURRENT ECONOMIC CRISIS
year. Results and management action arising
from the reviews undertaken in 2022/23 were The Committee regularly monitored the
discussed in detail at each of the Committee’s Group’s/Company’s known and emerging
meetings. The Head of Internal Audit attended exposures in relation to the changes in the
all of the Committee’s meetings during 2022/23 external regulatory and political environment,
and held discussions with the Committee in the including the possible impact on the Group’s/
absence of the Management. Company’s risk management activities and the
implications of the recent economic crisis in Sri
Lanka.
RELATED PARTY TRANSACTIONS

REVIEW COMMITTEE REPORT
PURPOSE OF THE COMMITTEE
Name of Directors 12.05.2022 10.08.2022 10.11.2022 09.02.2023
The Related Party Transactions Review
Committee was established to advise the Mr. N D Gunaratne    
Board in relation to transactions with the
Prof K A M K Ranasinghe    
related parties as defined by LKAS 24. The
Committee also exercises oversight function Mr. D Weerakkody    
on behalf of the Board in complying with the Mr. D A R Fernando    
Listing Rules of the Colombo Stock Exchange
and with the Code of Best Practices on Related TERMS OF REFERENCE transactions are also disclosed to stakeholders
Party Transactions issued by the Securities through the Company’s Financial Statements. In
The Committee is governed by the written
and Exchange Commission of Sri Lanka. The terms of reference, approved by the Board case of frequent/repetitive/regular transactions
Committee has also adopted best practices as of Directors, which is carefully designed to which are in the normal course of business
recommended by The Institute of Chartered discharge the Committee’s purpose, duties of the Company, the Committee may grant
Accountants of Sri Lanka. and responsibilities. The Committee’s duties standing pre-approval.
and responsibilities are set out in accordance
ROLE OF THE COMMITTEE with requirements stipulated by the Code of PERFORMANCE REVIEW DURING THE YEAR
Best Practices on Related Party Transactions During the year, the Committee reviewed the
The role of the Committee is to ensure that the published by the Securities and Exchange related party transactions and their compliances
interests of shareholders as a whole are taken Commission of Sri Lanka, regulations issued of the Company and communicated same to
into account by a listed entity when entering by the Colombo Stock Exchange and LKAS 24. the Board. The Committee in its review process
into related party transactions. Terms of reference of the Committee includes: recognized the adequacy of the content and
the quality of the information forwarded to its
COMPOSITION Ì Review in advance all proposed Related members by the management. All disclosures
Party Transactions of the Company except as per Section 9.3 of the Listing Rules of the
There were no changes to the composition those explicitly exempted by the Code. Colombo Stock Exchange and details of other
of the Committee as at 31 March 2022. The related party transactions entered into by the
Committee continued to comprise of three Ì Determine whether related party
Company/Group during the year are disclosed
transactions that are to be entered into by
Independent Non-Executive Directors and in Note 29 to the Financial Statements.
the Company require the approval of the
the Managing Director, who were appointed Board or shareholders of the Company.
by resolution at a Board meeting. To ensure DECLARATION
compliance with the requirements of the Ì Ensure that no Director of the Company
NON-RECURRENT-RELATED PARTY
shall participate in any discussion of a
Section 9. 2. 2 of Listing Rules of the Colombo TRANSACTION
proposed related party transaction for
Stock Exchange and Code of Best Practice There were no non-recurrent-related party
which he or she is a related party, unless
on Corporate Governance issued jointly by such a Director is requested to do so by transactions that exceeded the respective
The Institute of Chartered Accountants of Sri the Committee for the express purpose thresholds mentioned of the Rule 9.3.2 in the
Lanka and Securities Exchange Commission of providing information concerning the Listing Rules of the Colombo Stock Exchange,
of Sri Lanka, the Committee comprised of the related party transaction to the Committee. requiring disclosure in the Annual Report.
following members: Ì To recommend the creation of a special
RECURRENT-RELATED PARTY TRANSACTION
committee to review and approve the
proposed related party transaction, in the There were no recurrent-related party
Category Number of
event of any potential conflict of interest. transactions that exceeded the respective
Directors thresholds mentioned of the Rule 9.3.2 in the
Ì Establishing guidelines to be followed Listing Rules of the Colombo Stock Exchange,
Independent 3 by the Management in the event related requiring disclosure in the Annual Report.
Non-Executive Directors party transactions are ongoing. Thereafter,
the Committee, on an annual basis, shall
Executive Directors/ MD 1 review and assess ongoing relationships
and transactions with the related party to
The brief profiles of the existing members of the determine whether they are in compliance
with the Committee’s guidelines and that N D GUNARATHNE
Committee are given on pages 130 to 133 of
the related party transaction remains Chairman
the Annual Report.
appropriate. Related Party Transactions Review Committee
MEETING ATTENDANCE
POLICIES AND PROCEDURES 29 August 2023
The Committee met on the following occasions
As per the existing practice, all related party
to discuss matters relating to the financial year transactions must be reported to the Audit
of which the members’ attendance was as Committee and referred for approval by the
follows: Committee in accordance with this Policy. Such
REMUNERATION COMMITTEE GRI 2-19
REPORT
Remuneration Committee was established COMPOSITION
to ensure compliance with the requirements
Composition of the Board-appointed Remuneration Committee is comprised of three (3)
of Section 7. 10. 5 of the Listing Rules of the
Independent Non-Executive Directors and One (1) Non-Executive Director. There were no changes
Colombo Stock Exchange and the Code of
to the composition of the Committee during 2022/23.
Best Practices on Corporate Governance issued
jointly by the Institute of Chartered Accountants
of Sri Lanka and the Securities Exchange Category Number of
Commission of Sri Lanka. Directors
ROLE OF THE COMMITTEE Independent Non-Executive Directors 3
The role of the Remuneration Committee Non-Executive Directors 1

is to set up the remuneration policy for the
Management and make recommendations to The Committee’s composition met the requirements of the Rule 7. 10. 5 of Listing Rules of the
the Board on recruitment, remuneration and Colombo Stock Exchange. The brief profiles of the existing members of the Committee are given on
performance evaluation of the Management pages 145 and 130 to 133 of the Annual Report.
including Executive Directors of the Company.
REMUNERATION POLICY
Responsibilities include: The Remuneration Committee of the Board, approved the remuneration philosophy, strategy, and
the rewards policy of the Company. The Company’s remuneration philosophy is anchored on the
Ì Preparation of the remuneration total reward approach. The remuneration strategy’s main aim is to enable the Company to develop,
framework motivate, maintain and retain an internal talent pipeline, and when necessary attract the requisite
skills from the labour market to support the Company’s growth strategy. The remuneration policy
Ì Review compensation surveys
codifies the remuneration principles, processes, practices and procedures to give effect to the
Ì Recommend to the Board on the Company’s remuneration philosophy and strategy. The pay mix may comprise a combination of
remuneration payable to the Executive guaranteed pay (fixed pay and bonus) and variable pay (short-term incentives) depending on the
Directors and the Management level in the organizational hierarchy and performance. With the unveiling of the economic crisis the
Company reviewed the workforce and employee planning, management, performance, health and
Ì The evaluation of performance of the
safety and experience strategies in 2022/23.
Management
Ì Preparation of performance based

remuneration plans including
performance incentives
Ì Making amendments to the remuneration DINESH WEERAKKODY

policy Chairman
The Committee is authorized by the Board to Remuneration Committee
seek appropriate professional advice inside and
outside the Company as and when it considers 29 August 2023
necessary.
INVESTMENT AND SUBSIDIARY

PERFORMANCE MONITORING
COMMITTEE REPORT
PURPOSE OF THE COMMITTEE
Category Number of Directors
The Investment and Subsidiary Performance
Monitoring Committee was established as a Independent Non-Executive Directors 3
Board subcommittee to provide the Executive
Executive Directors 3
Directors and the Independent Non-Executive
Directors with an opportunity to discuss
The brief profiles of the existing members of the Committee are given on pages 130 to 133 of the
prospective investments and performance
Annual Report.
monitoring of subsidiaries prior to discussion of
relevant matters at Board meetings.
MEETING ATTENDANCE
ROLE OF THE COMMITTEE The Committee met on the following occasions to discuss matters relating to the financial year of
which the members’ attendance was as follows:
Ì Making an assessment and notifying
their recommendations to the Board on
Name of Directors 05.05.2022 03.08.2022 04.11.2022 02.02.2023
major new investments in subsidiaries,
associates, joint ventures and capital
Prof K A M K Ranasinghe    
investments in the parent Company
Mr. N D Gunaratne    
Ì Making an assessment and notifying
their recommendations to the Board on Mr. D S Weerakkody    
divestment of subsidiaries in the parent Mr. J C Joshua    
Company Mr. D A R Fernando    
Ì Monitoring the budgets of subsidiaries, Mr. Shamal J S Perera    
associates and joint ventures which are
approved by relevant responsible person/ SUMMARY OF ACTIVITIES
persons such as the Board of Directors,
During the year, the Committee comprehensively reviewed the new investment/divestment
Managing Director or the nominated
decisions of the Company and monitored budgets of subsidiaries/associates/joint ventures of the
Head of the Business Unit and ratified by
Company. The Committee decisions and discussions of the meetings were recorded and forwarded
the Chairman or Managing Director
to the Board of Directors of the Company for further action.
Ì Reviewing the progress of subsidiary
companies and sub subsidiaries
Ì Advising the Management on what action

should be taken for non-compliances
PROF. MALIK RANASINGHE
noticed in investments
Chairman
COMPOSITION Investment and Subsidiary Performance Monitoring Committee
Composition of the Investment and Subsidiary 29 August 2023

Performance Monitoring Committee is
comprised of three (3) Independent Non-
Executive Directors and two (2) Executive
Directors as set out below:
STRATEGIC PLANNING
COMMITTEE REPORT
PURPOSE OF THE COMMITTEE COMPOSITION
Strategic Planning Committee was established The Committee comprised of three (3) Executive Directors and One (1) Independent Non-Executive
to focus on planning and setting strategic Director of the Board. There were no changes to the composition of the Committee during 2022/23.
directions to achieve goals and objectives of the
Company. During the year, the Committee has
Category Number of Directors
continued to review and report to the Board on
the Company’s strategic direction, trends and
Executive Directors 3
issues in achieving its goals and objectives.
Independent Non-Executive Directors 1
ROLE OF THE COMMITTEE
The brief profiles of the existing members of the Committee are given on pages 146 and 130 to 133
The role of the Committee is to assist the Board
of the Annual Report.
with its responsibilities for the Company’s
vision, mission and strategic direction. The
MEETINGS
specific responsibilities of the Strategic
Planning Committee includes: The Strategic Planning Committee meets as and when necessary at the call of the Committee Chair
at dates and times which are specified in advance.
Ì Periodically reviewing the Company’s
vision, mission, strategic initiatives, major The Committee met several times during the year to discuss the Company’s strategic direction and
programmes and services and making its major strategic issues.
recommendations to the Board
CONCLUSION
Ì Identifying critical strategic issues facing
The Strategic Planning Committee is satisfied with the effectiveness of the strategic initiatives taken
the Company and assisting in the analysis
during the year and discussed the preventive measures to be taken for issues identified in achieving
of alternative strategic options
overall goals and objectives of the Company.
Ì Ensuring that the Management has
established an effective strategic planning
process with time lines and targets
Ì Advising the Board on trends in the

industry, market, community and core SUMAL PERERA
competencies Chairman
Strategic Planning Committee
Ì Reviewing and forwarding to the Board,
strategic plans of subsidiary companies
29 August 2023
to assure that they are aligned with the
Company’s strategic direction and goals
Ì Reviewing major new programmes and

services
Ì Developing criteria for the Management

to use in evaluating potential strategic
investments
MANAGING KEY RISKS

Risk management processes of AEL continue to evolve to ensure it is reflective of the shape of the business and its operations. The Internal Audit function
has been founded to be fully aligned with the Board and Board Sub Committees to further sharpen focus on the Company’s internal risk and control
environment. The Company recognizes that a consistent, agile and responsive approach to risk management is crucial to the sustainable delivery of its
business objectives. Our approach to risk management has enabled us to strengthen our overall responsibility for managing risks, adopt industry best
practices and improve our internal control frameworks.
The functions that enable AEL to effectively control its risks have been assigned to 3 levels. The first line of defence consists of operational managers
who own and manage risks. They also are responsible for implementing corrective actions to address process and control deficiencies. The second line
of defence consists of functions that monitor the implementation of effective risk management practices by operational managers, assist risk owners
in defining the target risk exposure and report adequate risk-related information throughout the Company. The third line of defence provides the
governing body and the Corporate Management a comprehensive assurance based on the highest level of independence and objectivity within the
organization, by the Internal Audit Function.
Board of Directors
Board subcommittees
Sustain and Continuously Improve

Internal audit
t
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efe vers
Integrated management systems

)
of d d o
ne ce an
Risk
(3r ernan
Quality Identification
efe e
)
nce
of d ructur
d li
ov
ce)
Cost
f de ip
kg
Risk Assessment,
d li rast
e o ersh
fen
Evaluation and Rating

Ris
(2n sk inf
ne
t lin wn
Time
(1s k O
Ri
Risk Management and

Monitoring
Ris
Risk Governance & Oversight Audit Committee Strategic Planning Committee

To meet the requirements of corporate The Audit Committee assists the Board in The Committee assists the Board and the
governance (voluntary & mandatory) and fulfilling its oversight responsibility relating Management in fulfilling its oversight
other regulatory bodies, the Board accepts to the integrity of the Company's Financial responsibilities relating to strategic plans,
overall responsibility for risk management Statements and the financial reporting process, which identify specific long-term goals and
and determines the nature and extent of the the systems of internal accounting and financial business objectives determined to be in the
principal risks to be taken and assesses the controls, the internal audit function, the annual Company’s best interests. This includes helping
effectiveness of the risk management and independent external audit, compliance with the Board and the Management identify
internal control systems that are in place to legal and regulatory requirements, and policies opportunities such as mergers and acquisitions,
mitigate impacts. The risk governance and and ethics established by the Company. joint ventures, new markets or product lines,
oversight function ensures that appropriate acquisition or disposition of capital assets,
Board Subcommittees are involved in the Related Party Transactions Review equity and debt funding and modifications
oversight of risk processes coming under their Committee of existing capital structure, dividend policy,
purview and that the full Board is actively The objective of the Committee is to ensure and stock offerings, repurchase programmes
engaged in a robust dialogue about critical that the interests of shareholders are taken etc. Additionally, the Committee evaluates the
risks. into account when entering into related progress of execution and effectiveness of the
party transactions and to enhance corporate strategic plan and recommends changes to
Board of Directors transparency and promote fair transactions the plan where necessary and evaluates other
The Board is responsible for maintaining a between the Company, its Subsidiaries and issues or opportunities.
sound risk management framework and other related parties. The Committee also
internal control system to safeguard the performs the oversight function on behalf of Compliance Committee
shareholders’ investments and the Company the Board in complying with the Listing Rules The Compliance Committee assists the Board
assets, identifying principal risks and ensuring of the Colombo Stock Exchange and with and the Management in overseeing the
the implementation of an appropriate risk the Code of Best Practices on Related Party Company’s efforts with respect to operational
management and internal control system Transactions issued by the Securities and compliance. This includes:
to manage those risks in accordance with Exchange Commission of Sri Lanka.
(i) Compliance with the laws and regulations
corporate governance principles. The ultimate
Remuneration Committee applicable to the Company’s business;
responsibility for setting the risk appetite for
the effective management of risk rests with the The Remuneration Committee assists the Board (ii) Compliance with the Company policies &
Board. to discharge its responsibility by overseeing procedures, standards of business conduct
remuneration policies and practices of the and ethics by employees, officers, Directors
Board Subcommittees Company. The Committee’s main roles are: and other associates of the Company that
Board Subcommittees are responsible are designed to support lawful and ethical
To review and make recommendations
for overseeing the development and business conduct by the Company and
to the Board in relation to the individual
implementation of policies relevant to their its employees and promote a culture of
remuneration levels of Directors (Executive
areas of scope, identification of emerging risks compliance and
& Non-executive), Senior Executives, other
and monitoring the ongoing effectiveness (iii) Reviewing the Company’s enterprise risk
Executives and other persons whose
of Company procedures. Acting within the management and practices.
activities in the Committee’s opinion affect
authority delegated by the Board, the Strategic
the financial soundness of the Company
Planning Committee and the Audit Committee
review specific risk profiles and receive regular To oversee general remuneration practices
reports on risk management, which include across the Company and make appropriate
the Company’s portfolio trends, policies, recommendations.
standards and soundness of internal controls,
infrastructure and regulatory compliance. Investment and Subsidiary Performance
These Committees are authorized to investigate Monitoring Committee
or seek any information relating to an activity The purpose of the Committee is to evaluate
within the terms of reference. prospective investments and to monitor the
performance of Subsidiaries/Associates prior
to discussion of the relevant matters at Board
Meetings.
MANAGING KEY RISKS
Risk Infrastructure Integrated Management Systems Function These systems are implemented in all Business
Risk infrastructure in place at AEL ensures that Units across the Company and they help
AEL’s integrated management systems consist
it is well prepared to address risks and includes mitigating risks related to quality, environment
of the Quality Management System (QMS)
our risk management policies, procedures, and health & safety. All Business Units are
which confirms with the requirements of ISO
risk training and knowledge, databases and regularly audited by the Management Systems’
9001:2015, the Environmental Management
internal audit teams whilst they are bi-annually
information. The internal audit function and the System (EMS) which confirms with the
audited by the Management Systems External
integrated management systems function play requirements of ISO 14001:2015 and the
Auditor Det Norske Veritas (DNV GL).
a vital role in setting out the risk infrastructure Occupational Health and Safety Management
at AEL. System (OHSAS) which confirms with the
requirements of ISO 45001:2018. These
Internal Audit Function integrated management systems are a pivotal
The Company’s Internal Audit Department component of our risk infrastructure.
which performs the internal audit function
focuses on providing an independent oversight
to the Board and the Audit Committee on the
processes and controls that help to mitigate
major risks.
Risk Culture
Higher levels of operational expertise, technical skills, compliance to distinctive processes and heightened levels of risk awareness, strengthens the formal
components of our risk management framework. Training and developing staff skills, capacity building, the Code of Conduct followed by all employees
and an attractive remuneration and compensation framework that rewards and stabilizes the approach to risk, supports the behaviours and shapes our
risk culture. Along with the above framework, AEL has also incorporated firm whistleblowing policies to further reinforce its risk culture, this ensures the
proper disclosure of misconducts or violations through confidential sources and allows for rectification. Together, these apparatuses emphasize AEL
behaviours, attitudes and norms with respect to risk awareness, acceptance and management which are crucial for sustenance and overall growth of the
organization. These include the Senior Management discouraging corruption by implementing various types of management strategies.
Integrated Risk Management Report Financial Year 2022/23
Risk Corporate
Code of Mandatory Remuneration Corporate
Management and Risk Risk Appetite
Conduct Training and Rewards Values
Policies Governance
Enforcing an organizational risk culture begins For the annual year 2022/23, AEL has taken various initiatives to enforce its risk culture which
at the level of Personal Predisposition, where included:
the employees introspect and analyse various
Ì Awareness programs in order to train and educate the employees regarding the risk culture
risk situations at the floor level. The same is then
further developed in to various levels such as Ì Management clearly specifying a well-defined process in order to report and manage risk
Person Ethics, Behaviours, and Organizational
Ì Leveraging the use of technology in order to assist with the management of risk and to improve
Culture which altogether enforces the
the overall transparency of the Companies
organizations’ risk culture.
Risk Ownership business including risks of systems and challenged by the triple constraints of Time,
equipment failure, overcapacity situations, Cost & Quality. The principle risks we face
The risk ownership function at AEL, is responsible
inadequate skilled workforce and adverse emanate from them. These risks have been
for identifying, measuring, monitoring and
climatic conditions. The Company adheres broadly categorized under 13 principle risk
controlling risks at an operational level. This
to policies, procedures, quality controls and drivers as elaborated in the Risk Table and are
function also creates adequate risk awareness
best practices to ensure that all systems and constantly reported to the Board and its Sub
among the staff.
equipment are functional. The consolidated Committees.
risks and the mitigating actions are presented
Each business unit’s risk management
to the Strategic Planning Committee and the At a more operational level, AEL adopts the
function is led by the respective Head of the
Audit Committee for review. following approach to managing these risks.
Unit, supported by his senior executive team.
Managing Director together with the Corporate
Primarily engaged in large scale infrastructure
Management considers the operational risks
development projects, AEL is constantly
that arise from the execution of the Company’s
Risk identification Risk Assessment, Evaluation and Rating Risk Management & Monitoring
Risk Identification is the process of Risk registers are used to assess and Based on the risk scores derived from
determining risks that could potentially evaluate risks. All identified risks are the risk register, the respective functions
prevent the enterprise from achieving assessed at three levels (high/medium/ formulate strategies to curtail and
its objectives. It includes documenting low) with reference to the likelihood of mitigate these risk exposures. Risks are
and communicating the concern. occurrence and the potential impact. monitored at multiple levels within the
Tolerance levels and trigger points are Organization including at functional
also defined for each identified risk. level, Board Sub Committee and Board
The risk matrix is used by AEL, as a level. Identified risks, the risk registers,
technique for assessing and evaluating mitigation plans and performance of
their risks. This matrix mainly focuses each identified risk are evaluated at these
on risk analysis based on qualitative levels throughout the year.
perception.
Risk Matrix for Risk Assessment

The likelihood of occurrence of a risk is determined based on past experience, industry and
organisational trends and judgment.
The severity of a risk is the potential financial or a non-financial loss/damage to the organisation. This
can also be determined based on experience, discussion, calculation, judgment etc.
Based on likelihood and severity, risks are categorised into three categories where relevant actions
are proposed. Accordingly risks need to be monitored, communicated and controlled. These three
areas are identified based on the risk tolerance (appetite) limits agreed as given below:
MANAGING KEY RISKS
Risk Rating Process

The following diagram summarizes the risk rating process of AEL
Risk category
Risk rating
Identify (Business and Existing
key Identified risk Impact of risk control (Risk
operational,
stakeholders methods assessment
finance, legal,
matrix)
strategic)
Objectives Our Principle Risk

To minimize the risk of not meeting The Board and the Audit Committee at AEL concluded that the level of risk associated with the Company’s
profit expectations principal risks is currently consistent with the Company’s overall appetite in relation to these risks. The “heat
map” sets out the positioning of our principal risks by impact and probability; both before any mitigation
To comply with the Regulatory
measures are taken into account and after the impacts of mitigation measures are taken into account.
Requirements
To maintain a sound system of internal The Directors confirm that they have carried out a robust assessment of the principal risks facing the
controls to safeguard shareholders’ Company, including those that would threaten its business model, future performance, solvency or liquidity.
wealth and Company assets
To ensure faster response to market

opportunities by maintaining a
2 5 6 9 10 1 3 4 7 8
SIGNIFICANT
‘sufficient’ liquidity position at all

times 12 11 13
To move towards diverse business

segments that are synergised with our
core business in order to manage our
exposure to cyclical downturns in our
1 3 4 7 8
MODERATE
core business due to external factors 2 5 6 9 10
Continue to be the preferred 12 11 13

IMPACT
employer, successful in motivating,

developing, retaining and attracting
the best of human capital
To keep pace with the current and

MINOR
new technological developments to

safeguard against obsolescence and
disruptions to our business
To achieve cost savings through

better management of resources
LOW MEDIUM HIGH
To encourage employees to come up
with ideas of innovative solutions and
PROBABILITY
new ventures
Risk positioning before mitigation action Risk positioning after mitigation action
Risk Management & Monitoring

The risk monitoring function at AEL measures the effectiveness of responses given to risks identified while evaluating their implementation against the
plan and taking necessary corrective measures where deviations are evident.
Risk Management & Monitoring Report of Access Engineering PLC
Risk Risk Impact on KPI’s 2021/2022 2022/2023 Risk Mitigation Strategies

Description
1. Operating Risks arising from Ì Delays in project Increased Decreased Ì Conducted frequent progress review
Risk inadequate or deliverables meetings for business units to monitor
During 2022/23,
failed internal work progress & budgetary controls and
Ì Operation cost productivity was
processes, accordingly took precautionary actions
overruns increased as evident
people and when & where necessary
by the improvement
systems, or from Ì Unsatisfactory
in operational margins Ì Regular monitoring of company assets
external events. product
and efficient Project Utilization
performance
Management was
Ì Internal Audit scope was redirected more
Ì Quality not observed throughout all
towards the safeguarding of assets of the
meeting specified operational units.
Company and Reviewed the compliance
requirements
of processes with the Standard Operating
Ì Loss of profits, Procedure (SOP)
credibility &
Ì Compliance with Management System
reputation
Standards (ISO 9001, ISO 14001, ISO
Ì Depleting stocks 45001)
Ì Missing regular
maintenance of the
machineries and
equipment
2. Technological Risks arising Ì Failure to compete Unchanged Unchanged • Continuously used existing innovative
Risk from issues in the market construction technology for greater
During 2022/23,
or concerns as a result of operational efficiency
technological Risk
associated with technological
remained unchanged. • Explored sustainable construction
the technologies obsolescence in
technologies to reduce the cost of
involved in the technology and
Technological risk construction and to maximize the use of
the execution processes used for
associated with the scarce construction material and resources
methods and construction
construction industry does
operational • Completed Phase 1 of the research initiative
not significantly impact the
technology of ‘Introduction of Fiber Optic Monitoring
company.
the project. Technology to Sri Lanka’
MANAGING KEY RISKS

Description
3. Socio- Risks arising Ì Suspension Increased Increased Ì Severity of the socio-economic and
economic from socio of funding for political variables was assessed during
During 2022/23, Socio –
and Political – economic infrastructure the periodic corporate Management
economic and political risk
Risk changes, political development by meetings
increased.
changes or multilateral and
Ì Projects were temporarily put on hold
instability in the bilateral funding
Economic shocks and with the turbulent policy changes and
country. agencies , local
Political instability of until such time a clear direction was
banks and the
the country negatively visible
treasury
influenced the
Ì Operations of the production plants were
Ì Loss of social license performance of the
limited to strategic geographical locations
to operate as a Company.
result of corporate
behaviour against
the interests of the
society
Ì Public unrest and

protests negatively
affecting the
industry
Ì Depreciation
of the Rupee
negatively affecting
the construction
industry
4. Human Risks arising from Ì Significant turnover Increased Increased Ì Developed an operational plan to
Capital and the loss of key of staff and labours optimize available resources including
During 2022/2023, Human
Labour Risk management due to the current staff
capital and Labour risk
resulting in a economic crisis and
increased. Ì Identified idling staff and assigned for
lack of necessary migration
alternative projects within the group
expertise or lack
Ì Loss of growth During the year employee
of continuity Ì Idling staff identified were continued
opportunity turnover ratio was
in executing in their service until the expiry of the
and career significantly high and
strategy. contract period
advancement due to training and development
industry stagnation hours reduced. Further Ì Increased the number of meetings
idling staff increased pertaining to employee relations and
Ì Loss of learning
significantly with the grievances handing
and development
disruption to ongoing
opportunity for staff
projects.

Description
5. Quality, Risks arising Ì Impact on achieving Increased Decreased Ì Maintained international accreditations:
Environment, from potential continual growth of ISO 9001, ISO 14001, and ISO 45001
During 2022/23, Quality,
Health & Safety harm to overall the Company
Environment, Health and Ì Conducted regular management
Performance product quality,
Ì Damage stakeholder Safety Performance Risk meetings to evaluate performance
Risk environment
relationships decreased in tandem with
performance and Ì Strengthened the internal audit function
the contraction of the
employee health Ì Impairing Company to monitor the proper implementation
industry and core business.
and safety reputation of safety standards with the support of
Safety Officers attached to each project
Ì Continuous monitoring of interested

party complaints
6. Compliance Risks arising Ì Risk on going Unchanged Unchanged Ì Reviewed compliance with the regulatory
Risk from the failure concern of the requirements on a quarterly basis
During 2022/2023,
to abide by any Company
compliance risk remained Ì Conducted periodical assessments on the
law or regulatory
Ì Impact on continuity unchanged. extent of compliance with the statutory
requirements
and growth of requirements
applicable to
the Company AEL adhered to its risk
the Company Ì The Management Systems Team
operations mitigation strategies in
resulting in continuously reviewed the changes
order to maintain a high
sanctions by Ì Impairing Company in regulations and took necessary
standard of regulatory
regulatory reputation action to ensure that the Company
compliance.
bodies, penalties is in compliance with the regulatory
Ì Reduction in
and reputational requirements
profitability due
damage.
to legal fees and Ì Strictly followed expert advice on issues
penalties related to income and other taxation
7. Competition Risks arising from Ì Total revenue Unchanged Increased Ì Ensured high standards of quality in
Risk competitive growth finished products
During 2022/2023,
forces resulting
Ì Underlying competition risk increased Ì Increased efficiency through the
in loss of growth
operating margin due to the limited work adoption of best practices
and erosion of
available within the
margins. Ì Underlying Earnings Ì Diversified business operations to reduce
industry.
per share the impact of competition
Ì Work won and Ì Utilized company assets more efficiently

secured and
probable orders
MANAGING KEY RISKS

Description
8. F inance Risk Risks arising from Ì Increased cost of Increased Increased Ì Restructured the loan portfolio to reduce
losing money funding on the back annual finance cost
During 2022/23, Finance
on investments of rising interest
Risk increased due to Ì Encashment of treasury bonds at the face
made or inability rates
the high cost associated value
to provide a
Ì Adverse impact with loan financing,
reasonable Ì Continuously monitored long
to the group due depreciation of the Sri
return on outstanding receivables and expedited
to volatile foreign Lankan Rupee, high level
business the collection process
exchange rates and of import restrictions
ventures.
restrictions imposed and increased risk of Ì Claimed collateral securities soon after
by the Government procurement activities. becoming due
for imports
Ì Charged interest for long outstanding
Ì Increasing level of receivables
debtors negatively
Ì Alternative finance arrangements were
affecting cash flows
used as a tool to finance key projects
Ì Unavailability of
Ì Encouraged cash sales
sufficient working
capital, negatively Ì Reducing the credit period offered to
affecting the buyers
smooth functioning
Ì Implemented the use of management
of day-to-day
systems/platforms that maintains
operations of the
accounts and provides crucial information
Company
to simplify and diminish potential
Ì Negative impact on financial risks
profitability
Ì Diminishing
Company rating for
investors
Ì The risk of default

in trade receivables
due to the prevailing
economic crisis in
the country

Description
9. Reputation Risks arising Ì Diminishing Unchanged Unchanged Ì Continuous use of a budgetary process
Risk from an event or qualifications for and a budgetary control mechanism to
During 2022/23, reputation
incident could bidding ensure that the Company’s performance
risk remained unchanged
damage the is in line with its targets
Ì Negative effects due to the company
image of the
on total revenue policies, procedures, best Ì Adopted stringent quality assurance
Company.
growth practices and compliances policies with regard to goods/materials
that were in place. bought from third parties as well as the
Ì Underlying
inputs, processes and outputs of own
operating margin
products
Ì Underlying Earnings
Ì Ensured effective communication
per share
with various stakeholders including
Ì Negative impact employees, customers, suppliers, other
on work won stakeholders and the community at large
and secured and
Ì Ensured compliance with relevant laws
probable orders
and regulations
Ì Strict monitoring of the practice of

The code of ethics of the Company by
employees without any exception
Ì Contractors were systematically

screened before on – boarding them
and vigorously monitored during the
engagement process to offset any delays
or defects
Ì The internal technical team monitored

contracts to make sure that they are
delivered in a timely manner
Ì The senior management consistently

monitored and ensured that contractors
follow proper operational and working
practices
MANAGING KEY RISKS

Description
10. IT Related Risks arising from Ì Impact on Unchanged Unchanged Ì Maintained a well-established IT
Risk breakdowns regulatory reporting governance structure
During 2022/23, IT
and failures in deadlines of SEC
related risk remained Ì Maintained a proper “back up” system in
information and CSE
unchanged due to the order to overcome data loss
systems and the
Ì Reduce underlying continuous monitoring and
use of obsolete Ì Use of password/access control policy
operating margin maintaining of all relevant
systems.
due to cost for time IT systems by the internal Ì Incorporated necessary validation and
and data recovery teams. verification functions at the information
entry level
Ì Loss of reputation
due to loss of Ì Carrying out Application Control Audits
credibility
Ì Installed a Fire Protection system at the
Server Rooms and maintained centralized
UPS Rooms and installed Smoke
Detectors for the Server Rooms and UPS
Rooms
Ì Used various tools such as proxies,

firewalls and administrative restrictions
to allow for the organization to alleviate
or decrease downtime and increase
operational efficiency
Ì Carried out an organization-wide

awareness on IT, cyber security and
training staff on various ways of handling
sensitive information
Ì Evaluated IT and cyber security risks

and discussed with the management
regarding the potential outcomes and
created a course of action to minimize
the risk
Ì Thoroughly evaluated and regulated

external suppliers providing IT
infrastructure/services to ensure security
and smoothness of operations
Ì Continuously followed up compliance

with the IT policy and reviewed same
periodically

Description
11. Risks arising Ì Reducing underlying Unchanged Increased Ì Established relationships with many
Procurement from material operating margin global and local suppliers for raw
During 2022/2023,
Risk and service price materials and commodities in order to
Ì Inability to meet the Procurement risk increased
variations and reduce over-dependency on a single
completion targets due to the restriction
Non availability supplier/brand
of imports, limitations
of key material. Ì Reduction in the
in extending credit by Ì Negotiated with the suppliers for
ability to procure
suppliers, unavailability favorable payment terms
materials/services
of resources and adverse
due to the ongoing Ì Continuous use of the Central
foreign exchange exposure.
foreign exchange Procurement Division with Green Tape e –
rate risk as vendors procurement platform
may have difficulty
Ì Conducted regular supplier evaluations
in providing supplies
to ascertain their financial strength, social
Ì Potential & environmental conduct
procurement delays
Ì Consistently analysed the market
incurred due to
conditions and existing vendors to
import restrictions
evaluate and strategize a path whereby,
imposed by the
materials/services are supplied without
Government
any disruptions
Ì Degrading quality
Ì Worked with vendors to reduce lead time
standards of works
Ì Frequently communicated with suppliers
Ì Impact on foreign
to assess potential interruptions and
currency fluctuation
devised a strategy to reduce delays or
Ì Potential delays downtimes
expected in
Ì Substituted imported raw materials for
receiving materials
local raw materials
and services leading
to an overall decline Ì Followed up with the government and
in performances foreign parties to strategize a course of
across various action in order to reduce the lead times
business activities
Ì Delays due to
import restrictions
imposed by the
government,
affecting the
overall operation
of the projects and
increasing lead
times due to the
surge in prices
of imported raw
Materials
MANAGING KEY RISKS

Description
12. F raud Risk Risks arising from Ì Losing reputation of Unchanged Unchanged Ì The Internal Audit Department
weaknesses the Company conducted audits on a regular basis
During 2022/23, Fraud risk
in the internal in areas, which are susceptible to the
Ì Decrease in remained unchanged due
controls which occurrence of fraud
operating to various administrative
could result in
profitability of the and internal controls that Ì Authority and approval limits were
financial losses.
Company were in place to ensure implemented for all the functions of
that the risk associated with the Company, making the employees
Ì Going concern of
frauds are kept in check. accountable for their actions
the Company
Ì Ensured appropriate segregation of duties
Ì Every key activity was subject to the

scrutiny of another suitably skilled and
authorized employee
Ì Employees are encouraged to report any

genuine concerns regarding fraud and
malpractice
Ì Use of whistle blowing policy
Ì The company has built, encouraged and

observed ethical working practices for
employees
Ì Conducted a thorough background

check before recruiting an employee
whereby, a potential fraud could be
mitigated
13. Foreign Risks arising from Ì Increasing Increased Increased Ì Maintained a healthy balance in the
Currency foreign currency construction and revenue mix between local and foreign
During 2022/2023,
Risk shortages and construction related currency
foreign exchange risk
foreign currency material prices
increased due to the steep
loss.
Ì Shortages of devaluation of the Sri
materials, due to the Lankan Rupee.
significant increase
in imported material
prices

FINANCIAL REPORTS
Annual Report of the Board of Directors Statement of Profit or Loss and
on the Affairs of the Company 182 Other Comprehensive Income 196
Statement of Statement of Financial Position 197
Directors’ Responsibility 188
Statement of Changes in Equity 198
Directors’ Statement on
Statement of Cash Flows 199
Internal Control 189
Index to the Financial Statements 201
Independent Auditors’ Report 190
Notes to the Financial Statements 202
ANNUAL REPORT OF THE BOARD

OF DIRECTORS ON THE AFFAIRS
OF THE COMPANY
The Board of Directors of Access Engineering SUBSIDIARY INVESTMENT ACTIVITIES Profits and appropriations
PLC has pleasure in presenting the Annual DURING THE YEAR Group profit after tax and Group profit
Report of the Company, together with the
The Company has further invested in 100% attributable to equity holders of the Parent
Audited Financial Statements of the Company
share capital of Access Logistics Park Ekala for the year depicted a figure of LKR 2,436 Mn
and its subsidiaries for the year ended 31 March
(Private) Limited amounting of LKR 5,873 Mn. (2022 – LKR 5,130 Mn) and LKR 2,482 Mn (2022
2023. This Report covers Chairman’s Message,
In addition to the company further invested a – LKR 5,110 Mn) respectively. In addition, the
Corporate Governance and Management
amounting of LKR 83 Mn in the share capital of profit after tax of the Company was LKR 1,444
Structure, Enterprise Risk Management,
Access Logistic (Private) Limited respectively, Mn (2022 – LKR 2,580 Mn).
Auditors Report Independent Assurance on
which are fully owned subsidiaries of the
Non –Financial Reporting and all other relevant Furthermore, the Group total comprehensive
company
information for the year ended 31 March 2023, income attributable to parent was LKR 2,718
in addition to the Audited Financial Statements. Mn (2022 – LKR 5,214 Mn). The Company’s total
REVIEW OF THE PERFORMANCE OF
comprehensive income for the year was LKR
The Company’s Board of Directors is THE COMPANY AND THE GROUP
1,516 Mn (2022 – LKR 2,676 Mn).
responsible for confirming that the information Review of the financial and operational
stated in the Annual Report on the Affairs performance of the Company and the Access Engineering PLC for the year ended 31
of the Company, contains the information Group are described in the joint statements March
required in terms of the Companies Act No.07 of Executive Vice Chairman and Managing
of 2007, the Listing Rules of the Colombo Director and under the review of business
Stock Exchange and Code of Best Practice on 2023 2022
operations in Page 16 to 20 The Segment-wise
Corporate Governance issued by the Institute contribution to Group revenue, results, assets LKR'000 LKR'000
of Chartered Accountants of Sri Lanka. and liabilities are provided in Note 4 (page 206)
to the Financial Statements. Balance brought
forward from the
GENERAL
previous year 14,322,381 12,646,119
Access Engineering PLC was incorporated in FINANCIAL STATEMENTS`
Surcharge tax
terms of the Companies Act No.17 of 1982 on The preparation of the Group and Company adjustment (596,919)
31 July 2001 and was re-registered as per the Financial Statements are been carried out
Balance brought
Companies Act No.7 of 2007 on 6 February in accordance with Sri Lanka Accounting
forward from the
2008 with PB200 as the new number assigned Standards (SLFRSs/LKASs), which is issued by
previous year
to the Company. Thereafter, the Company The Institute of Chartered Accountants of Sri
(Adjusted) 13,725,462
obtained a listing on the DiriSaviBoard of the Lanka, complying with the requirements of
Colombo Stock Exchange on 27 March 2012 the Companies Act No. 07 of 2007 and the Profit after tax 1,444,473 2,579,902
and changed its name to Access Engineering Listing Rules of the Colombo Stock Exchange Other adjustments (7,450) 96,360
PLC on 12 June 2012. The registration number inclusive of specific disclosures, duly signed by Amount available for
of the Company changed to PB 200 PQ. two Directors on behalf of the Board and the appropriation 15,162,485 15,322,381
Auditors are included on pages 190 to 195 of 1st interim dividend Nil (250,000)
Access Engineering PLC is now listed on the this Annual Report.
Main Board of the Colombo Stock Exchange 2nd interim dividend Nil Nil
with effect from 8 January 2013. ICRA Lanka Final dividend Nil (750,000)*
FINANCIAL RESULTS AND
has also reaffirmed the issue Rating of [SL]A+ Balance carried
APPROPRIATIONS
assigned to the Company’s Senior Unsecured forward to the
Redeemable Listed Debenture Programme, Revenue following year 15,162,485 14,322,381
revising the outlook from Stable to Negative. Revenue generated by the Group amounting to
* In accordance with LKAS 10 – Events after the
LKR 20,565 Mn (2022 – LKR 39,630 Mn). Similarly Reporting Period, the final dividend (2021/22) has not
PRINCIPAL BUSINESS ACTIVITIES OF the Company revenue amounted to LKR 17,556 been recognized as liability in the financial statements
Mn (2022 – LKR 33,337 Mn). A detailed revenue as at 31 March 2022.
THE COMPANY AND THE GROUP
analysis is presented in Note 5 (Page 208) to the
Access Engineering PLC is a holding company
and manages a portfolio of diverse range of
business including Construction, Construction-
Related Material, Property and Automobile.
Refer Note 32 to the Financial Statements on
page 258 for a brief description of the principal
activities of the Company and subsidiaries.
Dividends Property, plant and equipment (PPE) and intangible assets

The Final dividend of LKR 750 Mn for the The capital expenditure on property, plant, and equipment in terms of the Group and the Company
financial year 2021/22 has been declared on 17 equalled to LKR 495 Mn (2022 – LKR 2,561 Mn.) and LKR 269 Mn (2022 – LKR 2,355 Mn.) respectively.
May 2022 and paid on 13 June 2022. Related information and movements have been disclosed in Note 11 (pages 218 to 225)to the
There were no dividends declared for the
financial year 2022/23. In addition to No intangible assets of the Group and the Company additions during the year
amounted to LKR Nil (2022 – LKR 45.9 Mn.) and LKR Nil (2022 – LKR 43.9 Mn.) respectively. All other
Revenue Reserves related details to intangible assets are disclosed under the Note 14 (page 230) to the Financial
Statements.
The Revenue reserves of the Group and the
Company as at 31 March 2023 amounted to
LKR 20,557 Mn (2022 – LKR 18,589 Mn) and LKR MARKET VALUE OF PROPERTIES
15,492 Mn (2022 – 15,323 Mn) respectively. The Market value of property, plant and equipment
movement during the year is disclosed in the
Statement of Changes in Equity on page 198. Freehold land and buildings owned by the Group companies were revalued as at 31 March 2023 and
the carrying value was adjusted accordingly. The information relating to freehold land and buildings
are enclosed in Note 11.3 (page 224) to the Financial Statements.
Accounting policies
The significant accounting policies disclosed in
LAND HOLDINGS
note 2.8 adopted in the preparation of Financial
Statements of the Group and the company is The extents, locations and valuations of the Group’s freehold land holdings are given below:
given on pages 203 to 205 o the annual report.
Location Carrying value
Extent
The Financial Statements of the Company of Land
have been prepared in accordance with the A R P LKR
Sri Lanka Accounting Standards (SLFRSs and
LKASs) and the policies adopted thereof are Access Engineering PLC
given on pages 202 to 276 Figures pertaining to No. 336/1, Low Level Road, Jalthara, Ranala - 3 38.4 80,000,000
the previous period have been re-stated where
necessary to conform to the presentation for No. 267, Dehiwala Road, Maharagama - 3 1 300,000,000
the year under review. No. 278, Alubogahalanda, Jalthara, Ranala 3 2 39.42 140,000,000
No. 117, Dehiwala Road, Boralasgamuwa - 2 35.5 365,000,000
Donations
Dickowita – Hendala 2 3 10.18 18,007,200
As at 31 March 2023 total donations made by
the Group and the Company amounted to Weliwita – Kaduwela 2 - - 64,000,000
LKR 2,619,306 (2022 – LKR 3,388,605) and LKR Divigalahena – Hakmana 10 - - 10,000,000
982,905 (2022 – LKR 2,103,344) respectively.
Dombawinne Estate, Heeralugedara, Kotadeniyawa 50 1 8.7 412,201,450
Related details are disclosed in note 8.1 (page
211)
Corporate social responsibility No 266, 268 & 278 Dr Colvin R De Silva Mawatha Union
Place - Colombo 02 - 2 20.22 1,100,000,000
Due to the contraction in the core business
activities that was experienced during 2022/23, No 116 & 118 Dawson Street, Colombo 02 - 2 5.43 768,870,000
the company did not carry out any Corporate
social responsibility projects. Sathosa Motors PLC
Peliyagoda - Leasehold land (99 years) 2 - 23.93 4,828,654
No. 86, Vauxhall Street, Colombo 02 - 2 3.07 868,000,000
ANNUAL REPORT OF THE BOARD OF DIRECTORS

ON THE AFFAIRS OF THE COMPANY
Listing Rules are set out in Note 26.1 to the

Location Carrying value
Extent Financial Statements on Page 244.
of Land
A R P LKR
SHARE INFORMATION
Access Projects (Private) Limited Shareholders
No. 278, Kekulanvila Road, Jaltara, Ranala 2 1 38.38 82,000,000 Nine thousand nine hundred sixty six
shareholders were registered as at 31 March
No. 281, Kekulanvila Road, Jaltara, Ranala - - 20 5,000,000
2023 (9,795 shareholders as at 31 March 2022).
No. 301/1/D, Jaltara, Ranala. 3 26 8,750,000 Detailed analysis of the same is given on page
WUS Logistics (Private) Limited 110 of this Annual Report.
No. 540, MaligagodellaWatta, Aswedduma Junction, Major shareholders, distribution schedule

Aluthapola, Negombo 41 2 27.45 2,200,000,000 and other information
Kimbulapitiya, Negombo - 3 16.25 13,008,718 Information on the distribution of shareholding,
analysis of shareholders, market values per
Harbour Village (Private) Limited share, earnings, dividends, net assets per share,
No. 250, Srimath Ramanathan Mawatha, Kotahena, twenty largest shareholders of the Company,
Colombo 15 5 - - 2,400,000,000 percentage of shares held by the public as
per the Listing Rules of the Colombo Stock
Access Logistics (Private) Limited Exchange are given on Pages 110 to 112 under
Investor Capital.
Kimbulapitiya South, Kimbulapitiya, Negombo 1 3 31.3 89,784,950
THE BOARD OF DIRECTORS
INVESTMENT PROPERTIES STATED CAPITAL Directors’ responsibility for Financial

Reporting
The investment properties of business The Stated Capital of the Company is LKR 9,
units, when significantly occupied by 000 Mn representing 1,000 Mn ordinary shares. The Directors are responsible for the
Group companies, are classified as PPE in (2022 – LKR 9,000 Mn representing 1,000 million preparation of the Financial Statements of
the consolidated Financial Statements in ordinary shares). Details are given in Note 24 the company to reflect a true and fair view of
compliance with LKAS 40. (page 241 ) to the Financial Statements. the state of its affairs. The Directors are of the
view that these financial statements have been
The Group revalued its investment properties prepared in conformity with the requirements
DEBENTURE
in line with the policies adopted by the Group of the Sri Lanka Accounting Standards (SLFRSs/
and the carrying value at Group and Company The total amount raised through the Debenture LKASs), the Companies Act No. 07 of 2007
level is LKR 21,308 Mn (2022 – LKR 17,831 issued in November 2015 was LKR 5 Bn. Type 01 and the Listing Rules of the Colombo Stock
Mn.) and LKR 1,196 Mn (2022 – LKR 1,026 of the debenture issue, amounting to LKR 4.998 Exchange.
Mn) respectively. All information related to Bn, Type 02 of the debenture issue, amounting
revaluation of the investment properties are to LKR 1 Mn and Type 03 of the debenture Further information pertaining to the Directors’
provided in Note 13 (page 228 ) to the Financial issue, amounting to LKR 0.02 Mn matured Responsibility is enclosed in the Statement of
Statements. and fully paid in November 2020,November Directors’ Responsibility on page 188.
2021 and November 2022 respectively. The
outstanding capital as of date is LKR. 540,000. The names of the Directors who held office as
INVESTMENTS as given in Note 26.1 (page 244) to the Financial at the end of the accounting period are given
A detailed description of the Company’s Statements. Said Listed Debentures rating of as follows and their respective profiles are
investment in quoted shares held as at 31 [SL] A+ reaffirmed outlook revised to Negative displayed on pages 130 to 133.
March 2023 is given in Note 21 (page 240 ) to from Stable by ICRA Lanka Limited.
the Financial Statements.
RATIOS AND MARKET PRICES OF
Additionally, a detailed description of the DEBENTURES
Company’s fixed deposits held as at 31 March
2023, are disclosed in Note 22 (page 240) to the Ratios and market prices of the Listed Rated
Financial Statements. Senior Unsecured Redeemable Debentures
issued by the Company, as required by the
Strategic planning committee

For the year ended 31 March 2023 Executive Non-Executive Independent
Non Executive Mr. S J S Perera- Chairman
Mr. J C Joshua
Mr. S J S Perera (Chairman)  Mr. D A R Fernando
Mr. J C Joshua (Executive Vice Chairman)  Prof. K A M K Ranasinghe
Mr. D A R Fernando (Managing Director) 
Declaration under rule 9.3.2 (D) listing
Mr. S H S Mendis 
rules
Mr. S D Munasinghe 
The Directors declare that the Company is in
Mr. R J S Gomez * 
compliance with Rule 9 of the Listing Rules
Mr. S D Perera 
of the Colombo Stock Exchange pertaining a
Mr. Shamal J S Perera  Relate Party Transactions during the Financial
Prof. K A M K Ranasinghe  Year ended 31 March 2023.
Mr. N D Gunaratne 
Interest register
Mr. D S Weerakkody 
The Company maintains an Interests Register
*Mr. R J S Gomez, Non-Executive Director resigned from the board with effect from 11 May 2023
in terms of the Companies Act, No. 7 of 2007,
which is deemed to form part and parcel of
Retirement and re-election of directors Audit Committee the Annual Report and available for inspection
In terms of Article 88(i) of the Articles of Mr. N D Gunaratne - Chairman upon request.
Association, Shamal J S Perera retire by rotation Prof. K A M K Ranasinghe
and being eligible, is recommended by the All related party transactions which
Mr. S D Perera
Board for re-election at the forthcoming encompasses the transactions of Directors
Mr. D S Weerakkody
Annual General Meeting. who were directly or indirectly interested
Mr. Shamal J S Perera in a contract or a related party transaction
Directors of Subsidiary Companies are given in with the Company during the accounting
Remuneration committee period are recorded in the Interests Register
the page 280 of this Annual Report.
Mr. D S Weerakkody - Chairman in due compliance with the applicable rules
Review of the performance of the board Prof. K A M K Ranasinghe and regulations of the relevant regulatory
Mr. N D Gunaratne authorities.
The performance of the Board has been
appraised through a formalized process of Mr. S D Perera
The relevant interests of Directors in the
individual appraisal by enabling each member
shares of the Company as at 31 March 2023 as
to self-appraise on an anonymous basis and it Related party transactions review
recorded in the Interests Register are given in
is mentioned in Page 154. committee
this Report under Directors’ shareholding.
Mr. N D Gunaratne - Chairman
BOARD COMMITTEES Prof. K A M K Ranasinghe
EMPLOYEE SHARE OWNERSHIP PLANS
The Audit Committee, Remuneration Mr. D S Weerakkody
Mr. D A R Fernando The Group does not operate any share option
Committee, Related Party Transactions Review
scheme.
Committee, Investment and subsidiary
performance monitoring committee and Investment & Subsidiary Performance
Strategic Planning Committee function as Monitoring Committee Related party transactions
Board Sub Committees, with Directors, who Prof. K A M K Ranasinghe - Chairman The Company’s transactions with Related
possess the requisite qualifications and Mr. N D Gunaratne Parties, given in Note 29 (page 251)to the
experience. The number of board meetings Financial Statements
Mr. D S Weerakkody
held and the number of meetings attended by
Mr. J C Joshua
the Directors is given on pages 162 to 167. The
composition of the said Committees as at 31 Mr. D A R Fernando
March 2023 is as follows. Mr. Shamal J S Perera
ANNUAL REPORT OF THE BOARD OF DIRECTORS GRI 2-23
ON THE AFFAIRS OF THE COMPANY
NON-RECURRENT RELATED PARTY TRANSACTIONS towards upholding an effective Corporate

Governance Framework in compliance with
There were no non-recurrent related party transactions of which aggregate value exceeded 10%
the Code of Business Conduct, Ethics of the
of the equity or 5% of the total assets of the Company during the year as per Audited Financial
Company and in implementing systems and
Statement as at 31 March 2022, which require specific disclosures in the Annual Report as required
structures required to ensuring best practices
by Listing Rule 9.3.2 of the Colombo Stock Exchange and the Code of Best Practices on Related Party
within the Company.
Transactions issued by the Securities and Exchange Commission.
The corporate governance of the Company

RECURRENT RELATED PARTY TRANSACTIONS reflects the efforts taken to enhance and
There were no recurrent related party transactions which in aggregate exceeded 10% of the protect the interests of the stakeholders of the
consolidated revenue of the Group as per 31 March 2022 Audited Financial Statements, which Company. Prudent internal controls ensure
required additional disclosures in the 2022/23 Annual Report under Colombo Stock Exchange professionalism, integrity and commitment
Listing Rule 9.3.2 and Code of Best Practices on Related Party Transactions issued by the Securities of the Board of Directors, Management and
and Exchange Commission. employees.
DIRECTORS’ REMUNERATION The Corporate Governance Statement on

pages 138 to 161 explains the measures
The Directors’ remuneration is disclosed under key management personnel compensation in adopted by the Company during the year of
Note 29.6 to the Financial Statements on page 255. review.
DIRECTORS’ INTERESTS IN CONTRACTS INTERNAL CONTROLS

Directors’ interests in contracts with the Company are stated below. The Directors have no direct The Directors acknowledge their responsibility
or indirect interest in any other contract or proposed contract with the Company. Except for the for the Group’s system of internal control. The
transactions referred to in Note 29 (page 251) to the Financial Statements, the Company did not system is designed to give assurance,inter
carry out any transaction with any of the Directors. alia, regarding the safeguarding of assets, the
maintenance of proper accounting records
DIRECTORS’ SHAREHOLDING and the reliability of financial information
The relevant interests of Directors in the shares of the Company as at 31 March 2023 and 31 March generated. However, any system can only
2022 are as follows. ensure reasonable and not absolute assurance
that errors and irregularities are either
prevented or detected within a reasonable
Shareholding as at Shareholding as at time period.
31/03/2023 31/03/2022
The Board, having reviewed the system of
Mr. S J SPerera 250,000,000 250,000,000 internal controls, is satisfied with the Group’s
Mr. J C Joshua 101,000,000 101,000,000 adherence to and effectiveness of these
Mr. R J S Gomez Nil Nil controls for the period up to the date of signing
the Financial Statements.
Mr. D A R Fernando 24,300,000 24,300,000
Mr. S H S Mendis 24,300,000 24,300,000
SUSTAINABILITY
Mr. S D Munasinghe 24,300,000 24,300,000
The Group pursues its business goals based
Mr. S D Perera 2,000,000 2,000,000
on a model of stakeholders’ governance.
Mr.N D Gunaratne Nil Nil Finding of the continuous internal stakeholder
Prof. K A M K Ranasinghe 100 100 engagements have enabled the Group to
Mr. D S Weerakkody 60,597 10,597 focus on material issues highlighted by other
Mr. Shamal J S Perera 51,159,365 50,811,814 stakeholders such as employees, customers,
suppliers and the community. These steps have
*Mr. R J S Gomez, Non-Executive Director resigned with effect from 11 May 2023 been encapsulated in a group-wide strategy
focused on sustainable development which
is continuously evolving based on the above
mentioned stakeholder engagements. Capital
The Board of Directors confirms that they are in compliance with section 7.10 of the Listing Rules Formation and Distribution on page 85.
of the CSE. The Chairman, the Board of Directors and the Key Management Personnel is dedicated
EMPLOYMENT POLICY CONTINGENT LIABILITIES The Auditors have expressed their willingness
to continue in office. A resolution to re-appoint
The Company’s employment policy is totally Except as disclosed in Note 30 (Page 256) to the
the Auditors and to authorise the Directors to
non-discriminatory which respects individuals Financial Statements, there were no material
Contingent liabilities as at the reporting date. determine their remuneration will be proposed
and provides carrier opportunities irrespective
at the forthcoming Annual General Meeting.
of the gender, race or religion.
RISK MANAGEMENT
At Company level as at 31 March 2023 a total COMPLIANCE WITH LAWS AND
An ongoing process is in place to identify and
of 1,094 Persons were in employment (2,854 REGULATIONS
manage the risks that are associated with the
persons as at 31 March 2022). Refer Human
business and operations of the Company and To the best of knowledge and belief of the
Capital on Pages 98 to 105 for more information.
the Group on a quarter basis. The Directors Directors, the Group/Company has not
review this process through the Audit engaged in any activity, which contravenes
SUPPLIER POLICY laws and regulations of the country.
Committee, to identify the competence and
AEL relates an overall policy of agreeing and success of internal controls.
clearing communicating terms of payment ANNUAL REPORT
as per the commercial agreements approved Specific steps taken by the Company in
managing the risks are detailed in the section The Board of Directors approved the
upon and pays for all items in accordance with
on Enterprise Risk Management on Pages 168 consolidated Financial Statements on 29
the same. As at 31 March 2023 the trade and
to 180. August 2023 and appropriate number of copies
other payables in terms of the Group and the submitted to the Colombo Stock Exchange
Company amounted to LKR 26,096 Mn (2022 – and to the Sri Lanka Accounting and Auditing
LKR 25,162 Mn) and LKR 12,111 Mn (2022 – LKR EVENTS OCCURRING AFTER THE
Standards Monitoring Board as required.
14,066 Mn) respectively. Details of the same are REPORTING PERIOD
given on Note 28 on page 250. Except for the matters disclosed in Note 31
ANNUAL GENERAL MEETING
(Page 258) to the Financial Statements, there
AEL further makes every effort in order to follow were no material events as at the date of the The Twelfth Annual General Meeting will be
the value of effective stakeholder engagement Auditor’s Report, which require adjustment to held on 22 September 2023 at 2.00 p.m.
in order to establish an enhanced value added or disclosure in the Financial Statements.
model as a result. The notice of the Annual General Meeting
GOING CONCERN appears on page 281.
ENVIRONMENTAL PROTECTION
The Financial Statements are prepared on
This Annual Report is signed for and on behalf
The Group complies with appropriate going concern principles. After making
of the Board of Directors by;
environmental laws and regulations to fulfill adequate enquires from the Management, the
the best practices applicable in the country Directors are satisfied that the Company and
of operation. After making adequate enquiries it’s subsidiaries have adequate resources to
from the management, the Directors are continue its operations in the foreseeable future.
satisfied that the Company operates in a
manner that minimizes the detrimental effects INDEPENDENT AUDITORS’ REPORT D A R Fernando
on the environment and provides products The Report of the Independent Auditor on the Managing Director
and services that have a beneficial effect on the Financial Statements of the Company is given
customers and the communities within, which on Page 190 to 195.
the Company operates. Refer Natural Capital on
Pages 115 to 122 for more information. AUDITORS
Messrs KPMG, Chartered Accountants served as S D Munasinghe
STATUTORY PAYMENTS
the Auditors during the year under review and Executive Director
The Directors confirm that to the best of also provided non audit/ consultancy services.
their knowledge, all taxes, duties and levies They do not have any interest in the Company
payable by the Company and its subsidiaries, other than that of Auditor and provider of tax
all contributions, levies and taxes payable on related services.
behalf of, and in respect of employees of the P W CORPORATE SECRETARIAL
Group and the Company and all other known A total amount of LKR 4,657,000 is payable by (PRIVATE) LIMITED
statutory dues as were due and payable by the the Company to the Auditors for the year under Secretaries
Group and the Company as at the Statement of review comprising LKR 3,957,000 as audit fees
Financial Position date have been paid or, where and LKR 700,000 for non-audit services.[on 29 August 2023
Note 8 of page 211] Colombo
relevant provided for, except as specified in
Note 30 (Page 256) to the Financial Statements
covering commitments and contingencies.
STATEMENT OF DIRECTORS’
RESPONSIBILITY
This Statement sets out the responsibility Ì Financial Statements provide information COMPLIANCE REPORT
of the Board of Directors in respect to the required by and otherwise comply with the
The Directors confirm that to the best of their
Financial Statements of the Company and its Companies Act and the Listing Rules of the
knowledge all contributions, levies and taxes
subsidiaries. The responsibility of the Auditors Colombo Stock Exchange;
payable on behalf of and in respect of the
in relation to the Financial Statements of the
Ì The Company maintains with reasonable employees of the Company and its subsidiaries
Company and its subsidiaries is specified in the
accuracy sufficient accounting records and all other known statutory dues as were
“Independent Auditors’ Report” given in pages
to disclose the financial position of the due and payable by the Company and its
190 to 195.
Company and the Group; subsidiaries as at reporting date have been
The Directors are responsible for the proper paid or, where relevant, provided for, except as
Ì Financial Statements have been prepared
recording and maintenance of the books of all specified in Note 30 (page 256) to the Financial
on a going concern basis and they are
accounts of all transactions of the Company Statements covering commitments and
of the view that sufficient resources are
and its subsidiaries under the Sections 150(1), contingencies.
available to justify.
151, 152(1) and 153 of the Companies Act No.
07 of 2007. By Order of the Board,
The Board of Directors confirm that they have
Under Section 148, the Directors are taken reasonable measures to safeguard the
responsible for preparing the Company assets of the Company and the Group in this
Financial Statements that give a true and regard have established appropriate systems of
fair view of the State of the Affairs of the internal control with a view to preventing and P W CORPORATE SECRETARIAL
Company and its subsidiaries at the reporting detecting fraud and other irregularities. (PRIVATE) LIMITED
date of each financial year. The prepared Secretaries
Financial Statements consist of the Statement As required by the Section 56(2) of the
of Comprehensive Income giving a true and Companies Act No. 07 of 2007, the Board of 29 August 2023
fair view of the profit or loss of the Company Directors have confirmed that the Company, Colombo
along with its subsidiaries for the financial year based on the information available, satisfied
ending. The Statement of Financial Position the solvency test immediately after the
giving a true and fair view of the State of distribution, in accordance with Section 57 of
Affairs of the Company and its subsidiaries at the Companies Act No.07 of 2007, and have
the end of the financial year. Also contains the obtained a certificate from the Auditors, prior
Statement of Changes in Equity, Statement of to declaring all dividends. The Directors are
Cash Flows and Notes thereto. of the view that they have discharge their
responsibilities as set out in this Statement.
During the course of preparation for the
Financial Statements the Directors confirm
The External Auditors, Messrs KPMG who were
that:
deemed re–appointed in terms of Section 158
Ì Appropriate accounting policies have been of the Companies Act No. 07 of 2007 were
selected and applied in a consistent manner provided with every opportunity to undertake
and material departures, if any, have been the inspections they considered appropriate
disclosed and explained; to enable them to form their opinion on
the Financial Statements. The Report of the
Ì Financial Statements are presented in
Auditors, shown on pages 190 to 195 sets out
accordance with Sri Lanka Accounting
their responsibilities in relation to the Financial
Standards (SLFRSs/LKASs) and reasonable
Statements.
and prudent judgments and estimates have
been made so that the form and substance
of transactions are properly reflected;
DIRECTORS’ STATEMENT ON
INTERNAL CONTROL
The following Statement fulfils the requirement Annual Audit Plan approved by the Board Based on the above processes, the Board of
to publish the Directors’ Statement on Internal of Audit Committee for their review on a Directors confirms that the financial reporting
Control as per the Code of Best Practice on quarterly basis. In addition special audits are system of the Company has been designed
Corporate Governance 2017 jointly issued conducted as and when the need arises and to provide reasonable assurance regarding
by The Institute of Chartered Accountants of findings of the same are submitted to the the reliability of financial reporting and the
Sri Lanka and the Securities and Exchange Board of Audit Committee for their review. preparation of Financial Statements for external
Commission of Sri Lanka. purposes has been done in accordance with
Ì The Board of Audit Committee reviews
the Sri Lankan Accounting Standards (SLFRSs/
internal control issues identified by the
The Board of Directors is responsible for LKASs), requirements of the Companies Act No.
Internal Audit Department, regulatory
maintaining a sound system of internal controls 07 of 2007 and Listing Rules of the Colombo
bodies and the Management and evaluates
to safeguard shareholders’ investments and the Stock Exchange. The Consolidated Financial
the adequacy and effectiveness of the
Company’s assets. The Board has established Statements for the year ended 31 March 2023
risk management and internal control
an ongoing process for identifying, evaluating have been audited by Messrs KPMG, Chartered
systems. They further review the internal
and managing the significant risks faced by Accountants.
audit functions with particular emphasis on
the Company and Group. This process includes
the scope of audits and quality of internal
enhancing the system of internal controls
audits. The minutes of the Board of Audit
as and when there are changes to business
Committee meetings are tabled at the
environment or regulatory guidelines. The
Board meetings of the Company.
process is regularly reviewed by the Board.
Ì In accordance, with Sri Lankan Accounting
The Board of Directors view that the system Standards comprising SLFRS and LKAS, S J S Perera
of internal controls in place is sound and processes that are required to comply with Chairman
adequate to provide reasonable assurance requirements of recognition, measurement,
regarding the reliability of financial reporting, presentation and disclosures were
and the preparation of Financial Statements introduced and implemented. Consistent
for external purposes and is in accordance with and continuous monitoring is in progress
relevant accounting principles and regulatory to enhance the system’s effectiveness and
requirements. efficiency. D A R Fernando
Managing Director
Ì The comments made by External Auditors
Following features of the system of Internal
in relation with the internal control system
Control that have been introduced by the
during the financial year 2022/23 were
Board to obtain reasonable assurance that
taken into significant consideration and
proper system are in place:
the necessary steps have been taken to
incorporate them where applicable. N D Gunaratne
Ì Committees appointed by Board to assist
Chairman, Audit Committee
them in ensuring the effectiveness of CONFIRMATION STATEMENT
Company’s daily operations and to ensure
The Board having implemented the above 29 August 2023
that these daily operations are within the
corporate objectives, strategies and annual is aware that such systems are designed to
budget ratified by the Board. manage rather than eliminate the risk of failure
to achieve business objective and can only
Ì The Head of Internal Auditor who heads provide reasonable and not absolute assurance
the Internal Audit Department bears the against material misstatements of loss.
responsibility of carrying out periodic audits
on an ongoing basis covering all operational
projects/units to ensure the effectiveness of
the system of internal control. These audits
are carried out in accordance with the
INDEPENDENT AUDITORS’ GRI 2-5
REPORT
To the Shareholders of Access

Engineering PLC
Report on the Audit of the Financial Statements
Opinion Basis for Opinion Key Audit Matters

We have audited the financial statements of We conducted our audit in accordance Key audit matters are those matters that, in
Access Engineering PLC (“the Company”) and with Sri Lanka Auditing Standards (SLAuSs). our professional judgment, were of most
the consolidated financial statements of the Our responsibilities under those standards significance in our audit of the Company
Company and its subsidiaries (“the Group”), are further described in the Auditor’s financial statements and the consolidated
which comprise the statement of financial Responsibilities for the Audit of the Financial financial statements of the current period.
position as at 31 March 2023, and the statement Statements section of our report. We are These matters were addressed in the context of
of profit or loss and other comprehensive independent of the Group in accordance with our audit of the Company financial statements
income, statement of changes in equity and the Code of Ethics issued by CA Sri Lanka (Code and the consolidated financial statements as
statement of cash flows for the year then of Ethics), and we have fulfilled our other ethical a whole, and in forming our opinion thereon,
ended, and notes to the financial statements, responsibilities in accordance with the Code of and we do not provide a separate opinion on
including a summary of significant accounting Ethics. We believe that the audit evidence we these matters.
policies and other explanatory information as have obtained is sufficient and appropriate to
set out on pages 202 to 276. provide a basis for our opinion.
In our opinion, the accompanying financial

statements of the Company and the Group
give a true and fair view of the financial position
of the Company and the Group as at 31 March
2023, and of their financial performance
and cash flows for the year then ended
in accordance with Sri Lanka Accounting
Standards.
Recognition of Revenue
Refer note 5 to the consolidated financial statements
Risk description Our response
The major components of the Group’s revenue comprises of revenue Our audit procedures included,
recognized overtime from construction contracts amounting to Rs. 10.04
• Obtaining an understanding and assessing the design, implementation
Bn for the year ended 31 March 2023.
and operating effectiveness of the management’s key internal controls
over revenue recognition.
Construction revenue is recognised overtime by reference to the Group’s
progress toward completing the contracts. Management judgment is • Discussing with the Group management and project managers the
required to estimate the total construction costs, variations or claims performance of the major contracts in progress during the year and
recognised as contract revenue, and provision for liquidated damages comparing the contract revenue recognised for a sample of contracts
that will affect the measure of progress and revenue and profit margins in progress during the year with interim payment certifications from
recognised from construction contracts. quantity surveyors appointed by the customers or interim payment
applications from the in-house surveyor.
We identified construction revenue recognised overtime as a key audit
• On a sample basis, inspecting of project contract agreements with
matter because of the revenue recognition is inherently subjective and
customers and subcontractors to identify key terms and conditions,
requires significant management judgment and errors in the recognition
including contracting parties, contract period, contract sum, scope of
of revenue could have a material impact on the Group profit for the year.
the work and evaluating whether these key terms and conditions had
been appropriately reflected in the total estimated revenue and cost to
complete under the forecasts of contracts.
• Assessing the adequacy of financial statements disclosure as per the

required accounting standards.
Valuation of Investment Properties

The Group investment properties are stated at their fair value in the Our audit procedures included,
amount of Rs. 21.3 Bn as at 31 March 2023.
• Assessing the objectivity, independence, competence and
qualifications of the external valuers.
Management’s assessment of fair value of investment property is based
on valuations performed by a qualified independent property valuer in • Assessing the key assumptions applied and conclusion made by the
accordance with recognised industry standards. external valuer in deriving the fair value of the Investment properties
and comparing the same with evidence of current market values.
Further, the prevailing uncertain and volatile macro-economic
• Challenging how valuers had assessed the impact of the prevailing
environment introduced significant estimation uncertainty in relation to
uncertain and volatile macro-economic environment to assess whether
the measurement of the market value of investment properties.
that it was appropriately considered in the measurement in valuing
properties to determine the fair value of the investment property.
We identified fair valuation of Investment properties as a key audit matter
due to the use of significant estimates such as per perch price and value • Assessing the adequacy of disclosure in relation to fair value of
per square foot involved in assessing the fair value of the investment investment property in the financial statements.
property.
INDEPENDENT AUDITORS’ REPORT
Impairment assessment of Goodwill and Investments in Subsidiaries

Refer note 14 and 15 to the consolidated financial statements
As at 31 March 2023, the goodwill and investment in subsidiaries amounting Our audit procedures included,
to Rs. 525.4 Mn and Rs. 26.8 Bn respectively.
• Obtaining an understanding of management’s impairment
assessment process.
Management allocated goodwill to the respective cash-generating units
(“CGU”) and the recoverable amounts of the identified CGUs have been • Evaluating the reasonableness of the Group’s key assumptions for
determined based on value-in-use calculation. its cash flow projection by considering prevailing uncertain and
volatile macro-economic environment such as discount rates, cost
Management performed the impairment assessment for subsidiaries with inflation and business growth with reference to the internally and
indicators of impairment and determined their recoverable amounts based externally derived sources including Group budgetary process and
on value-in-use calculations reasonableness of historical forecasts.
• Obtaining the Company’s cash flow projections covering a period

Further, uncertainty on the impact of the prevailing volatile macro-economic
of 12 months from the reporting period end date and challenging
environment introduced significant estimation uncertainty in relation to
these key assumptions used in preparing the projections.
the management’s assumptions and estimation of future cash inflows and
outflows when preparing cash flow projections. • Considering the adequacy of the Group disclosures in the financial
statements in respect of impairment testing.
We have identified the assessment of impairment of goodwill and
impairment of investments in subsidiaries as a key audit matter because
judgment is required in identifying indicators of impairment and required
the management to make various assumptions in the underlying cash flow
forecasts.
Recoverability of Trade Receivables

The Group trade receivables are stated in the financial position at their Our audit procedures included,
fair value less any provision for irrecoverable amounts. As at 31st March
• Understanding and evaluating the design, implementation and
2023 net of trade receivables were Rs. 9.3 Bn after provisions of Rs. 541.6
operating effectiveness of management’s key internal controls in
Mn.
respect of the valuation of trade debtors, which included credit
control procedures and the application of the Group’s doubtful
There are inherent risks relating to customer’s credit risk profile which
debt provisioning policy.
varies due to the size of each customer and the industries that the
customers operate in. The risk is whether the trade receivables are • On sample basis, circularized trade receivables confirmations to
recoverable and determining an appropriate provision for potentially verify existence and tested the reconciliations where discrepancies
impaired trade receivables requires significant management judgment. were identified and testing the subsequent collections for
outstanding trade receivables, where applicable.
Impairment allowances represent management's best estimate of the
• Assessing, on a sample basis, whether items in the trade debtors’
losses expected within receivables as at the financial position date.
ageing report were classified within the appropriate ageing bracket
Management has assessed the receivable balances individually based on
by comparing individual items in the report with underlying
the age of debts to identify any objective evidence of impairment.
documentation, which included sales invoices and goods delivery
notes.
The prevailing uncertain volatility of macro-economic environment
introduced significant estimation uncertainty in relation to the • Assessing how management had assessed the impact of prevailing
measurement of the Group’s allowance for doubtful debts. The rapidly uncertain macro-economic environment within the credit losses
evolving consequences of the prevailing uncertainty of macro-economic model to assess whether that it was appropriately considered in
environment and government, business and consumer responses could the measurement of doubtful debts at year end. In particular, we
result in significant adjustments to the allowance within the current reviewed management’s assessment of the likelihood of economic
financial years. downturn caused by prevailing uncertain macro-economic
environment at the reporting date with reference to the reasonable
Given the level of subjectivity nature of significant management and supportable information available to management at that date.
judgments involved and transition adjustments are likely to be subject
• Assessing the adequacy of financial statements disclosure as per
to scrutiny from investors/ regulators resulted in impairment of trade
the required accounting standards.
receivables being considered as a key audit matter.
INDEPENDENT AUDITORS’ REPORT
Other Information Those charged with governance are responsible • Evaluate the appropriateness of accounting
for overseeing the Company’s and the Group’s policies used and the reasonableness
Management is responsible for the other
financial reporting process. of accounting estimates and related
information. The other information comprises
the information included in the annual report disclosures made by management.
but does not include the financial statements Auditor’s Responsibilities for the Audit • Conclude on the appropriateness of
and our auditor’s report thereon. of the Financial Statements management’s use of the going concern
Our objectives are to obtain reasonable basis of accounting and, based on the audit
Our opinion on the financial statements does assurance about whether the financial evidence obtained, whether a material
not cover the other information and we do statements as a whole are free from material uncertainty exists related to events or
not express any form of assurance conclusion misstatement, whether due to fraud or error, conditions that may cast significant doubt
thereon. and to issue an auditor’s report that includes on the Group’s ability to continue as a going
our opinion. Reasonable assurance is a high concern. If we conclude that a material
In connection with our audit of the financial level of assurance, but is not a guarantee that uncertainty exists, we are required to draw
statements, our responsibility is to read the an audit conducted in accordance with SLAuSs attention in our auditor’s report to the related
other information and, in doing so, consider will always detect a material misstatement disclosures in the financial statements or, if
whether the other information is materially when it exists. Misstatements can arise from such disclosures are inadequate, to modify
inconsistent with the financial statements fraud or error and are considered material if, our opinion. Our conclusions are based
or our knowledge obtained in the audit or individually or in the aggregate, they could on the audit evidence obtained up to the
otherwise appears to be materially misstated. reasonably be expected to influence the date of our auditor’s report. However, future
If, based on the work we have performed, we economic decisions of users taken on the basis events or conditions may cause the Group
conclude that there is a material misstatement of these financial statements. to cease to continue as a going concern.
of this other information, we are required to
report that fact. We have nothing to report in • Evaluate the overall presentation, structure
As part of an audit in accordance with SLAuSs,
this regard. and content of the financial statements,
we exercise professional judgment and
including the disclosures, and whether
maintain professional skepticism throughout
the financial statements represent the
Responsibilities of Management and the audit. We also:
underlying transactions and events in a
Those Charged with Governance for
• Identify and assess the risks of material manner that achieves fair presentation.
the Financial Statements
misstatement of the financial statements,
• Obtain sufficient appropriate audit evidence
Management is responsible for the preparation whether due to fraud or error, design and
regarding the financial information of
of financial statements that give a true and fair perform audit procedures responsive to
the entities or business activities within
view in accordance with Sri Lanka Accounting those risks, and obtain audit evidence that is
the Group to express an opinion on the
Standards, and for such internal control as sufficient and appropriate to provide a basis
consolidated financial statements. We are
management determines is necessary to for our opinion. The risk of not detecting a
responsible for the direction, supervision
enable the preparation of financial statements material misstatement resulting from fraud
and performance of the group audit. We
that are free from material misstatement, is higher than for one resulting from error,
remain solely responsible for our audit
whether due to fraud or error. as fraud may involve collusion, forgery,
opinion.
intentional omissions, misrepresentations,
In preparing the financial statements, or the override of internal control. We communicate with those charged with
management is responsible for assessing the governance regarding, among other matters,
• Obtain an understanding of internal control
Group’s ability to continue as a going concern, the planned scope and timing of the audit
relevant to the audit in order to design
disclosing, as applicable, matters related to and significant audit findings, including any
audit procedures that are appropriate in the
going concern and using the going concern significant deficiencies in internal control that
circumstances, but not for the purpose of
basis of accounting unless management either we identify during our audit.
expressing an opinion on the effectiveness
intends to liquidate the Group or to cease
of the Company and the Group’s internal
operations, or has no realistic alternative but to
control.
do so.
We also provide those charged with governance

with a statement that we have complied with
ethical requirements in accordance with the
Code of Ethics regarding independence, and to
communicate with them all relationships and
other matters that may reasonably be thought
to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with those

charged with governance, we determine those
matters that were of most significance in the
audit of the financial statements of the current
period and are therefore the key audit matters.
We describe these matters in our auditor’s
report unless law or regulation precludes
public disclosure about the matter or when, in
extremely rare circumstances, we determine
that a matter should not be communicated in
our report because the adverse consequences
of doing so would reasonably be expected to
outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory

Requirements
As required by section 163 (2) of the Companies
Act No. 07 of 2007, we have obtained all
the information and explanations that were
required for the audit and, as far as appears
from our examination, proper accounting
records have been kept by the Company.
CA Sri Lanka membership number of the

engagement partner responsible for signing
this independent auditor’s report is 2599.
CHARTERED ACCOUNTANTS
Colombo, Sri Lanka
29 August 2023
GRI 207-4
STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME
Group Company
For the year ended 31 March Note 2023 2022 2023 2022
LKR LKR LKR LKR
Revenue 5.1 20,564,633,275 39,629,621,775 17,556,370,250 33,336,537,165

Cost of sales (14,705,842,008) (34,317,835,707) (13,370,299,376) (29,673,376,893)
Gross profit 5,858,791,267 5,311,786,068 4,186,070,874 3,663,160,272
Other income 6.1 1,351,258,534 1,116,542,042 2,772,325,772 1,437,024,525
Change in fair value of investment property 6.2 3,466,984,624 3,157,849 169,091,350 -
Administrative expenses (2,128,777,926) (2,173,839,561) (999,088,977) (1,125,933,058)
Other expenses (714,586,536) (45,929,888) (617,387,734) (35,949,828)
Operating profit 7,833,669,963 4,211,716,510 5,511,011,285 3,938,301,911
Finance Cost 7.1 (4,757,027,406) (1,537,453,871) (4,401,125,112) (1,418,913,457)
Finance Income 7.1 893,701,601 503,809,844 809,206,821 468,547,838
Share of results of equity-accounted investees, net of tax 16.2 406,927,909 1,435,066,924 - -
Profit before tax 4,377,272,067 4,613,139,407 1,919,092,994 2,987,936,292
Income tax (expense) / reversal 9.1 (1,940,924,967) 517,073,784 (474,620,160) (408,034,408)
Profit for the period 2,436,347,100 5,130,213,191 1,444,472,834 2,579,901,884
Profit attributable to:

Equity holders of the parent 2,481,965,080 5,110,445,938 1,444,472,834 2,579,901,884
Non-controlling interest (45,617,980) 19,767,253 - -
Profit for the period 2,436,347,100 5,130,213,191 1,444,472,834 2,579,901,884
Other comprehensive income

Items that will not be reclassified to profit or loss in
subsequent periods
Remeasurement of defined benefit liability 27.1 58,637,124 125,237,627 46,697,984 112,046,294
Revaluation of Land and Buildings 11.1/11.2 237,691,252 - 79,019,133 -
Related tax 9.1 (61,318,460) (17,623,445) (54,147,790) (15,686,481)
Items that will be reclassified to profit or loss in subsequent periods

Foreign currency translation difference of foreign operations 1,275,688 (3,530,876) - -
Other comprehensive income for the period, net of tax 236,285,604 104,083,306 71,569,327 96,359,813
Total comprehensive income for the period, net of tax 2,672,632,704 5,234,296,497 1,516,042,161 2,676,261,697
Total comprehensive income attributable to;

Equity holders of the parent 2,718,127,763 5,213,985,669 1,516,042,161 2,676,261,697
Non-controlling interest (45,495,059) 20,310,828 - -
Total comprehensive income for the period, net of tax 2,672,632,704 5,234,296,497 1,516,042,161 2,676,261,697
Basic earnings per share 10 2.48 5.11 1.44 2.58
Dividend per share 24.3 0.75 0.75
The Accounting Policies and Notes form an integral part of these Financial Statements.
Figures in brackets indicate deductions.

STATEMENT OF FINANCIAL GRI 207-4
POSITION
Group Company
As at 31 March Note 2023 2022 2023 2022
LKR LKR LKR LKR
Assets
Non-current assets
Property, plant and equipment 11.1/11.2 5,569,748,043 6,159,302,689 3,349,081,908 3,975,160,691
Right of use assets 12.1 2,674,642,709 2,736,746,067 203,942,586 124,743,049
Right of use assets - prepayment 12.1.1 1,237,084,632 444,264,831 1,237,084,632 444,264,831
Investment properties 13.1 21,307,743,685 17,831,487,464 1,195,500,000 1,026,408,650
Investment properties- work in progress 13.3 11,720,990,970 1,768,828,208 - -
Intangible assets and goodwill 14.1 578,329,784 1,257,774,793 43,588,155 58,026,814
Investments in subsidiaries 15 - - 26,772,923,813 21,426,091,615
Equity-accounted investees 16.1 971,511,970 2,245,154,983 655,465,410 1,255,465,410
Non-current financial assets 17 510,000 510,000 510,000 510,000
Deferred tax assets 9.4 351,274,159 1,121,731,724 - -
44,411,835,952 33,565,800,759 33,458,096,504 28,310,671,059
Current assets
Inventories 18.1 15,945,251,765 14,619,851,673 2,844,782,987 3,881,321,447
Trade and other receivables 19.1 12,812,888,021 25,160,628,086 9,215,075,944 21,854,323,383
Amount due from related parties 29.2 82,238,504 8,339,101 4,144,219,498 350,947,740
Current tax assets 9.3 52,426,627 53,920,346 - -
Other current financial assets 20 3,220,199,784 3,557,423,609 2,907,793,820 3,309,006,015
Short term investments 21 151,027,060 536,892,942 151,027,060 536,892,942
Short term deposits 22 2,569,299,538 2,136,020,085 1,693,917,249 1,691,482,324
Cash and cash equivalents 23 696,144,034 2,208,007,038 137,489,717 898,392,700
35,529,475,333 48,281,082,880 21,094,306,275 32,522,366,551
Total assets 79,941,311,285 81,846,883,639 54,552,402,779 60,833,037,610
Equity and liabilities
Equity
Stated capital 24.1 9,000,000,000 9,000,000,000 9,000,000,000 9,000,000,000
Other components of equity 24.2 815,586,406 576,619,466 329,293,246 250,274,113
Retained earnings 19,741,338,842 18,610,155,988 15,162,484,603 15,072,380,079
Equity attributable to equity holders of the parent 29,556,925,248 28,186,775,454 24,491,777,849 24,322,654,192
Non-controlling interests 34 2,415,064,093 2,460,559,152 - -
Total equity 31,971,989,341 30,647,334,606 24,491,777,849 24,322,654,192
Non-current liabilities
Government grants 25 4,826,544 5,045,931 - -
Loans and borrowings 26 12,786,649,626 18,846,956,594 12,692,992,379 18,640,420,000
Lease liabilities 12.2 222,215,070 127,338,944 100,061,541 1,828,144
Employee benefit liabilities 27 260,979,068 323,511,702 196,653,438 242,663,826
Deferred tax liabilities 9.4 2,958,595,374 2,116,602,374 382,723,649 185,861,816
16,233,265,682 21,419,455,545 13,372,431,007 19,070,773,786
Current liabilities
Bank overdraft 23 1,761,142,207 130,864,408 1,553,000,662 -
Trade and other payables 28 26,095,814,875 25,161,709,167 12,111,492,173 14,065,939,280
Amount due to related parties 29.3 70,733,664 71,465,679 229,089,551 191,298,506
Lease liabilities 12.2 41,325,560 134,932,777 6,662,782 17,903
Current tax liabilities 250,452,558 44,934,182 221,044,343 41,977,711
Unclaimed dividends 64,408,986 36,270,007 19,656,006 18,336,127
31,736,056,261 29,780,093,488 16,688,193,923 17,439,609,632
Total liabilities 47,969,321,943 51,199,549,033 30,060,624,930 36,510,383,418
Total equity and liabilities 79,941,311,285 81,846,883,639 54,552,402,779 60,833,037,610
Net asset per share 29.56 28.19 24.49 24.32
The Accounting Policies and Notes form an integral part of these financial statements.
The Financial Statements have been prepared in compliance with the requirements of the Companies Act No.7 of 2007.
N Iddagodage
General Manager - Finance
The Board of Directors is responsible for the preparation and presentation of these financial statements.
Approved and signed for and on behalf of the Board of Directors of Access Engineering PLC.
D A R Fernando S D Munasinghe
Managing Director Executive Director
29 August 2023
Colombo.
STATEMENT OF CHANGES IN EQUITY

Attributable to equity holders of the parent
Group Stated capital Revaluation Foreign currency Retained Total Non–controlling Total equity
reserve translation earnings interests
reserve
LKR LKR LKR LKR LKR LKR LKR
Balance as at 1 April 2021 9,000,000,000 580,150,342 - 14,245,340,560 23,825,490,902 2,689,322,057 26,514,812,959

Profit for the year - - - 5,110,445,938 5,110,445,938 19,767,253 5,130,213,191
Other comprehensive income for the
year, net of tax - - (3,530,876) 107,070,607 103,539,731 543,575 104,083,306
Total comprehensive income for
the year - - (3,530,876) 5,217,516,545 5,213,985,669 20,310,827 5,234,296,497
Cash dividends (Note 24.3) - - - (750,000,000) (750,000,000) - (750,000,000)
Acquisition of NCI - Harbour Village
(Private) Limited (102,701,117) (102,701,117) (249,073,733) (351,774,850)
Balance at 31 March 2022 9,000,000,000 580,150,342 (3,530,876) 18,610,155,988 28,186,775,454 2,460,559,151 30,647,334,606
Adjustment for Surcharge Tax
(Note 9) (597,977,967) (597,977,967) (597,977,967)
Balance at 1 April 2022 (Adjusted) 9,000,000,000 580,150,342 (3,530,876) 18,012,178,021 27,588,797,488 2,460,559,152 30,049,356,638
Profit for the year - - - 2,481,965,080 2,481,965,080 (45,617,981) 2,436,347,099
Other comprehensive income for the
year, net of tax - 237,691,252 1,275,688 (2,804,259) 236,162,681 122,922 236,285,603
Total comprehensive income for
the year - 237,691,252 1,275,688 2,479,160,822 2,718,127,761 (45,495,059) 2,672,632,701
Cash dividends (Note 24.3) - - - (750,000,000) (750,000,000) - (750,000,000)
Balance at 31 March 2023 9,000,000,000 817,841,594 (2,255,188) 19,741,338,842 29,556,925,249 2,415,064,093 31,971,989,341
Company Share capital Revaluation Retained Total equity

reserve earnings
LKR LKR LKR LKR
Balance as at 1 April 2021 9,000,000,000 250,274,113 13,146,118,382 22,396,392,495

Profit for the year - - 2,579,901,884 2,579,901,884
Other comprehensive income for the year, net of tax - - 96,359,813 96,359,813
Total comprehensive income for the year - - 2,676,261,697 2,676,261,697
Cash dividends (Note 24.3) - - (750,000,000) (750,000,000)
Balance at 31 March 2022 9,000,000,000 250,274,113 15,072,380,079 24,322,654,192
Adjustment for Surcharge Tax (Note 9) (596,918,504) (596,918,504)
Balance at 1 April 2022 (Adjusted) 9,000,000,000 250,274,113 14,475,461,575 23,725,735,688
Profit for the year - - 1,444,472,834 1,444,472,834
Other comprehensive income for the year, net of tax - 79,019,133 (7,449,806) 71,569,327
Total comprehensive income for the year - 79,019,133 1,437,023,028 1,516,042,161
Cash dividends (Note 24.3) - - (750,000,000) (750,000,000)
Balance at 31 March 2023 9,000,000,000 329,293,246 15,162,484,603 24,491,777,849
STATEMENT OF CASH FLOWS

Group Company
LKR LKR LKR LKR
Cash flows from operating activities

Profit before tax 4,377,272,067 4,613,139,407 1,919,092,994 2,987,936,292
Adjustments for:
Depreciation of property plant and equipment 11.1/11.2 1,235,167,671 1,162,641,716 970,083,257 894,444,701
Depreciation of right- of - use assets 12.1 109,219,719 47,185,993 9,882,334 2,114,289
Amortisation and impairment of intangible assets 14.1 22,828,883 23,203,354 14,438,659 14,874,073
Provision for employee benefits 27.1 82,073,484 57,176,463 67,318,526 40,896,434
Impairment losses/ write-off of trade and other receivables/
inventories 201,011,521 318,106,883 145,609,350 220,502,423
Increase in fair value of investment properties 13.1 (3,466,984,624) (3,157,849) (169,091,350) -
Impairment of Investment in Subsidiaries - - 609,097,792 -
Impairement of Goodwill 656,616,126 - - -
Gain on disposal of property, plant and equipment 6.1 (75,649,931) (77,779,076) (31,343,908) (55,911,022)
Loss on asset write off 46,238,186 867,424 518,880 867,424
Amortisation of government grant 25 (219,387) (219,387) - -
Share of results of equity-accounted investees, net of tax 16.2 (406,927,909) (1,435,066,924) - -
Dividend income from investments in subsidiaries 6.1 - - (1,657,237,732) (983,565,499)
Net finance cost 7.1 3,863,325,805 1,033,644,027 3,591,918,291 950,365,619
Operating profit before working capital changes 6,643,971,611 5,739,742,031 5,470,287,094 4,072,524,734
Changes in:
Inventories (1,332,924,730) (5,921,408,474) 1,036,538,460 (1,813,422,840)
Trade and other receivables 12,273,882,308 (11,389,295,240) 12,613,602,364 (10,355,966,805)
Other current financial assets 337,223,825 (547,197,639) 401,212,195 (539,893,900)
Amounts due from related parties (73,899,403) 10,342,406 (3,793,271,758) (238,720,071)
Trade and other payables 940,706,538 7,815,851,756 (1,996,188,653) 3,107,983,968
Amounts due to related parties (732,015) 42,747,887 37,791,045 67,321,149
Cash generated from/ (used in) operating activities 18,788,228,134 (4,249,217,273) 13,769,970,747 (5,700,173,765)
Finance cost paid (4,278,267,474) (1,001,310,071) (3,909,226,304) (941,695,116)

Income tax paid 9.3 (181,482,843) (709,747,436) (152,322,890) (701,685,979)
Surcharge tax paid (597,977,967) - (596,918,504) -
Gratuity paid 27 (85,968,994) (34,588,246) (66,630,930) (19,886,830)
Net cash flows generated from/ (used in) operating activities 13,644,530,856 (5,994,863,026) 9,044,872,119 (7,363,441,690)
STATEMENT OF CASH FLOWS
Group Company
LKR LKR LKR LKR
Cash flow from investing activities

Purchase of property, plant and equipment 11.1/11.2 (495,356,632) (2,560,733,666) (268,901,800) (2,354,930,285)
Right of use assets-prepayment (792,819,801) (444,264,831) (792,819,801) (444,264,831)
Purchase of intangible assets 14.1 - (45,872,811) - (43,993,336)
Purchase of investment properties 13.1 (9,271,597) (439,867,128) - (412,201,450)
Purchase of investment properties - work in progress 13.3 (9,952,162,762) (1,102,265,286) - -
Proceeds from sale of property, plant and equipment 116,846,604 144,837,226 34,741,486 60,601,159
Investment in equity securities - (399,999,925) - (399,999,925)
Investment in non-current financial assets 17 - (510,000) - (510,000)
Divestment in equity-accounted investees 600,000,000 - 600,000,000 -
Investment in subsidiary - - (5,955,929,990) (2,428,018,118)
Investment/Withdrawal in short term deposits (258,617,638) (337,178,122) 157,361,541 (206,268,886)
Proceed from maturity on quoted debt investment - 100,000,000 - 100,000,000
Dividend income from investments in subsidiaries - - 577,776,117 503,804,781
Dividend income from equity-accounted investees 1,079,461,615 479,760,718 1,079,461,615 479,760,718
Finance Income received 539,143,448 128,915,419 481,754,387 107,348,203
Net cash flows used in investing activities (9,172,776,763) (4,477,178,406) (4,086,556,444) (5,038,671,969)
Cash flows from financing activities

Dividends paid to equity holders of the parent (750,000,000) (750,000,000) (750,000,000) (750,000,000)
Acquisition of non-controlling interests - (351,774,850) - (351,774,850)
Proceeds from loans & borrowings 26.2 14,991,946,368 42,173,992,817 13,501,923,826 32,863,360,000
Repayment of loans & borrowings 26.2 (21,799,972,193) (28,089,240,432) (20,024,123,146) (19,159,486,728)
Repayment of Debenture 26.1 (20,000) (1,030,000) (20,000) (1,030,000)
Payment of lease liabilities (55,849,073) (2,328,577,439) - -
Net cash flows generated from/ (used in) financing activities (7,613,894,898) 10,653,370,096 (7,272,219,319) 12,601,068,422
Increase in cash and cash equivalents (3,142,140,803) 181,328,663 (2,313,903,645) 198,954,763

Cash and cash equivalent at the beginning of the year 2,077,142,630 1,895,813,967 898,392,700 699,437,937
Cash and cash equivalent at 31st March 23 (1,064,998,173) 2,077,142,630 (1,415,510,945) 898,392,700

INDEX TO THE FINANCIAL

STATEMENTS
Accounting Policy Note Page
Corporate and Group information 1 202

Basis of preparation 2 202
New and amended standards issued but not effective as at the reporting date 3 205
Segment information 4 206
Revenue 5 208
Other income 6 209
Net finance income / (cost) 7 210
Profit before tax 8 211
Income tax 9 212
Earnings per share 10 218
Property, plant and equipment 11 218
Right of use assets and leases 12 225
Investment properties 13 228
Intangible assets and goodwill 14 230
Investments in subsidiaries 15 232
Equity-accounted investees 16 233
Non-current financial assets 17 235
Inventories 18 236
Trade and other receivables 19 237
Other current financial assets 20 239
Short term investments 21 240
Short term deposits 22 240
Cash and cash equivalents 23 241
Stated capital and other component of equity 24 241
Government grant 25 243
Loans and borrowings 26 243
Employee benefits 27 247
Trade and other payables 28 250
Related party disclosure 29 251
Provisions, commitments and contingencies 30 256
Events after the reporting period 31 258
Group Information 32 258
Business combinations 33 259
Non-controlling interest 34 260
Financial assets and financial liabilities 35 262
Fair value measurement and related fair value disclosures 36 266
Financial instruments, risk management objectives, and policies 37 268
NOTES TO THE FINANCIAL GRI 207-4
STATEMENTS
1. CORPORATE AND GROUP The Board of Directors acknowledges this Ì Financial instruments reflected as fair value
INFORMATION responsibility for Financial Statements as set out through profit or loss which are measured
in the “Statement of Directors’ Responsibility at fair value.
This section provides Corporate and Group
for Financial Statements”, ‘Annual Report of
information about Access Engineering PLC, its Ì Employee benefit liability recognised based
the Board of Directors’ and in the statement
subsidiaries, joint venture and associate. on actuarial valuation
appearing with the Statement of Financial
Position of this Annual Report. Ì Lease liabilities measured at amortised
1.1. Reporting Entity
cost using effective interest method
Access Engineering PLC (“Company”) is a where appropriate, the specific policies
2. BASIS OF PREPARATION
public limited liability company, incorporated are explained in the succeeding notes.
on 31 July 2001 and domiciled in Sri Lanka. 2.1. Statement of compliance No adjustments have been made for
The Company was re-registered under the The Financial Statements of the Company inflationary factors in the Financial
Companies Act No. 07 of 2007 on 06 February and the Consolidated Financial Statements of Statements.
2008. The ordinary shares of the Company are the Group comprise Statement of Financial
listed at the Colombo Stock Exchange. The Ì Fair value through other comprehensive
Position, Statement of Profit or Loss and
Company’s registered office and the principal income financial assets which are measured
Other Comprehensive Income, Statement
place of business are located at “Access Towers”, at fair value
of Changes in Equity and Statement of Cash
278, Union Place, Colombo 02. Flows together with the Accounting Policies
2.3. Functional and Presentation
and Notes (the Financial Statements) which
The principal activities and nature of operations Currency
have been prepared in accordance with Sri
of the Company, its subsidiaries and equity Lanka Accounting Standards (SLFRSs / LKASs) Items included in these Financial Statements
accounted investees are given on Note 15 and laid down by the Institute of Chartered are measured using the currency of primary
Note 16 to the Financial Statements. Accountants of Sri Lanka (CA Sri Lanka) and economic environment in which the Company
with the requirement of the Companies Act operates (functional currency).
Access Engineering PLC does not have any No. 7 of 2007, provide appropriate disclosures
identifiable parent of its own. The Company is as required by Listing Rules of Colombo Stock Each entity in the Group determines its own
the ultimate parent of the Group. Exchange. functional currency and items included in
the Financial Statements of these entities are
1.2. Consolidated Financial Statements These Financial Statements except for measured using that functional currency. There
The Financial Statements for the year ended information on cash flows have been prepared were no change in the Group’s presentation
31 March 2023 comprise “the Company” following the accrual basis of accounting. and functional currency during the year under
referring to Access Engineering PLC as the review.
holding Company and “the Group” referring The tax liability arising from the Surcharge
to companies that have been consolidated Tax Act No: 14 of 2022 has been accounted These Financial Statements are presented in
therein together with the Group’s interests in as recommended by the (Addendum Sri Lankan Rupees, the Group’s functional and
Equity-accounted Investees. to) Statement of Alternative Treatment presentation currency.
(SoAT) issued by the Institute of Chartered
The Financial Statements of all Companies in Accountants of Sri Lanka. The following subsidiary company is using
the Group have a common financial year which different functional currency other than Sri
ends on 31 March. The Group did not adopt any inappropriate Lankan Rupees (LKR):
accounting treatments which are not in
1.3. Approval of Financial Statements compliance with the requirements of SLFRSs
and LKASs, regulations governing the Country of Functional Name of the
The Consolidated Financial Statements of preparation of Financial Statements. incorporation Currency Subsidiary
Access Engineering PLC and its subsidiaries
(collectively the Group) for the year ended 31 2.2. Basis of Measurement Republic of Kenyan AEL East
March 2023 were authorised for issue by the
The Financial Statements have been prepared Kenya Shilling Africa Limited
Board of Directors on 29 August 2023.
on the historical cost basis except for the
following material items. 2.4. Materiality and Aggregation
1.4. Responsibilities for the Financial
Statements Each material class of similar items is presented
Ì Lands and buildings which are recognised separately in the Financial Statements. Items
The Board of Directors is responsible for the as property plant and equipment which are of dissimilar nature or function are presented
preparation and presentation of the Financial measured at cost on initial recognition and separately unless they are immaterial as
Statements of the Company and its subsidiaries subsequently carried at fair value. permitted by the Sri Lanka Accounting
as per provisions of the Companies Act No, 07 Standard - LKAS 1 on “Presentation of Financial
of 2007 and the Sri Lanka Accounting Standards Ì Lands and buildings which are recognised
Statements”.
(SLFRSs / LKASs ). as investment property which are
measured at cost on initial recognition and
subsequently carried at fair value.
Notes to the Financial Statements are developments, however, may change due to downturn (and forecasts for key economic
presented in a systematic manner that ensure market changes or circumstances arising that factors including GDP and employment). This
the understandability and comparability of are beyond the control of the Group. Such includes the disruption to capital markets,
Financial Statements of the Group and the changes are reflected in the assumptions when deteriorating credit, liquidity concerns,
Company. Understandability of the financial they occur. increasing unemployment, increasing material
statements is not compromised by obscuring prices, declines in consumer discretionary
material information with immaterial Information about assumptions and estimation spending, reductions in production because
information or by aggregating material items uncertainties that have a significant risk of of decreased demand, and other restructuring
that have different natures or functions. resulting in a material adjustment to the activities; and the effectiveness of government
carrying amounts of assets and liabilities within and central bank measures that have and
Offsetting the year ending 31 March 2023 is included in will be put in place to support businesses
the following notes. and consumers through this disruption and
Assets and liabilities or income and expenses
economic downturn.
are not setoff unless required or permitted by
a Sri Lanka Accounting Standards. Accounting Policies Note Furthermore, changes in underlying economic
factors have fluctuated the prices of inputs and
2.5. Comparative Information
Revenue recognition Note 5 outputs of the automobile industry.
The accounting policies have been consistently
applied by the Group and are consistent Revaluation of Property plant and
Note 11 Having evaluated the future outlook of the
with those used in the previous year. The equipment
Group, the Directors have made an assessment
presentation and classification of the financial Fair value of the investment of the Group’s ability to continue as a going
statements of the previous period, have Note 13
property concern, and being satisfied that it has the
been adjusted, where relevant, for better resources to continue in business for the
presentation. Impairment of non financial
Note foreseeable future confirmed that they do not
assets: key assumption
2.8.5 intend either to liquidate or to cease operations
2.6. Summary of Significant accounting underlying recoverable amount of the Group.
judgments, estimates and Measurement of defined
assumptions benefit obligation: key actuarial Note 27 Furthermore, management is not aware of
The preparation of the Group’s Consolidated assumptions any material uncertainties relating to event or
Financial Statements requires Management to condition that may cast significant doubt upon
Measurement of ECL allowance the Group’s ability to continue as a going
make judgments, estimates and assumptions Note 19
for trade receivables concern. Therefore, the financial statements
that affect the reported amounts of revenues,
expenses, assets and liabilities, and the Fair value measurement of continue to be prepared on a going concern
Note 36 basis.
accompanying disclosures, and the disclosure financial instruments
of contingent liabilities. Uncertainty about
Impairment of financial assets: 2.8. Summary of significant accounting
these assumptions and estimates could result
key assumption underlying Note 35 policies
in outcomes that require a material adjustment
recoverable amount
to the carrying amount of assets or liabilities Summary of significant accounting policies
affected in future periods. Income Tax (current tax and have been disclosed along with the relevant
Note 9
deferred tax) individual notes in the subsequent pages.
In the process of applying the Group’s
Recognition and measurement of
accounting policies, Management has made Following accounting policies which have
provisions and contingencies: key
various judgments. Those which Management been applied consistently by the Group,
assumption about the likelihood Note 30
has assessed to have the most significant are considered to be significant but are not
effect on the amounts recognized in the and magnitude of an outflow of
covered in any other sections.
Consolidated Financial Statements have been resources
discussed in the individual Notes of the related 2.8.1 Basis of consolidation
Financial Statement line items. 2.7. Going concern
The Directors have made an assessment of the The Consolidated Financial Statements
The key assumptions concerning the future Company, its subsidiaries, associates and joint comprise the Financial Statements of the
and other key sources of estimation uncertainty ventures have adequate resources to continue Company, its subsidiaries and the Group’s
at the reporting date, that have a significant in operational existence and ability to continue interest in equity accounted investees
risk of causing a material adjustment to the as a going concern for the foreseeable future. (associates and joint ventures). Subsidiaries and
carrying amounts of assets and liabilities within equity accounted investees are disclosed in
the next financial year, are also described in The ongoing economic crisis in the country Note 15, Note 16 and Note 33 to the Financial
the individual Notes of the related Financial has increased the estimation uncertainty in Statements respectively.
Statement line items below. The Group the preparation of Financial Statements. The
based its assumptions and estimates on estimation uncertainty is associated with the Subsidiaries are those entities controlled by the
parameters available when the Consolidated extent and duration of the expected economic Group. Control is achieved when the Group
Financial Statements were prepared. Existing is exposed, or has rights, to variable returns
circumstances and assumptions about future from its involvement with the investee and has
NOTES TO THE FINANCIAL STATEMENTS
the ability to affect those returns through its “If the Group loses control over a subsidiary, All other borrowing costs are expensed in the
power over the investee. Specifically, the Group it derecognises the related assets (including period in which they occur. Borrowing costs
controls an investee if, and only if, the Group goodwill), liabilities, non-controlling interest consist of interest and other costs that an entity
has: and other components of equity, while any incurs in connection with the borrowing of
resultant gain or loss is recognised in profit or funds. Capitalization of borrowing costs ceases
Ì Power over the investee. (i.e., existing rights loss. Any investment retained is recognised at when substantially all the activities necessary
that give it the current ability to direct the fair value. to prepare the qualifying assets for its intended
relevant activities of the investee). use are completed.
2.8.2 Current versus non-current
Ì Exposure, or rights, to variable returns from
classification 2.8.4 Foreign currencies
its involvement with the investee.
The Group presents assets and liabilities in 2.8.4.1 Transactions and balances
Ì The ability to use its power over the investee the Statement of Financial Position based on
to affect its returns. Transactions in foreign currencies are initially
current/ non-current classification. An asset is
recorded by the Group’s entities at their
Generally, there is a presumption that a majority current when it is:
respective functional currency spot rates
of voting rights results in control. To support at the date the transaction first qualifies for
this presumption and when the Group has less Ì Expected to be realised or intended to sold recognition.
than a majority of the voting or similar rights or consumed in the normal operating cycle
of an investee, the Group considers all relevant Monetary assets and liabilities denominated
Ì Held primarily for the purpose of trading
facts and circumstances in assessing whether it in foreign currencies are translated at the
has power over an investee, including: Ì Expected to be realised within twelve functional currency spot rates of exchange
months after the reporting period at the reporting date. Differences arising on
Ì The contractual arrangement(s) with the Or settlement or translation of monetary items are
other vote holders of the investee. recognised in profit or loss.
Ì Cash or cash equivalent unless restricted
Ì Rights arising from other contractual from being exchanged or used to settle a
arrangements. liability for at least twelve months after the Non-monetary items that are measured in
reporting period. terms of historical cost in a foreign currency are
Ì The Group’s voting rights and potential translated using the exchange rates at the dates
voting rights. All other assets are classified as non-current. of the initial transactions. Non-monetary items
The Group re-assesses whether or not it measured at fair value in a foreign currency are
A liability is current when: translated using the exchange rates at the date
controls an investee if facts and circumstances
indicate that there are changes to one or more when the fair value is determined. The gain
Ì It is expected to be settled in the normal or loss arising on translation of non-monetary
of the three elements of control. Consolidation
operating cycle items measured at fair value is treated in line
of a subsidiary begins when the Group obtains
control over the subsidiary and ceases when Ì It is held primarily for the purpose of trading with the recognition of the gain or loss on the
the Group loses control of the subsidiary. change in fair value of the item (i.e., translation
Ì It is due to be settled within twelve months differences on items whose fair value gain or
Assets, liabilities, income and expenses of a
after the reporting period loss is recognised in Other Comprehensive
subsidiary acquired or disposed of during the
year are included in the Consolidated Financial Income or profit or loss are also recognised in
Ì Or
Statements from the date the Group gains Other Comprehensive Income or profit or loss,
control until the date the Group ceases to Ì There is no unconditional right to defer the respectively).
control the subsidiary. settlement of the liability for at least twelve
months after the reporting period. In determining the spot exchange rate to use on
Profit or loss and each component of Other initial recognition of the related asset, expense
The Group classifies all other liabilities as non-
comprehensive income are attributed to the or income (or part of it) on the derecognition of
current. Deferred tax assets and liabilities are
equity holders of the parent of the Group and to a non-monetary asset or non-monetary liability
classified as non current assets and liabilities.
the non-controlling interests, even if this results relating to advance consideration, the date of
in the non-controlling interests having a deficit the transaction is the date on which the Group
2.8.3 Borrowing costs
balance. When necessary, adjustments are initially recognises the non-monetary asset or
made to the financial statements of subsidiaries Borrowing costs directly attributable to the non-monetary liability arising from the advance
to bring their accounting policies into line with acquisition, construction or production of an consideration. If there are multiple payments or
the Group’s accounting policies. All intra-group asset that necessarily takes a substantial period receipts in advance, the Group determines the
assets and liabilities, equity, income, expenses of time to get ready for its intended use or transaction date for each payment or receipt of
and cash flows relating to transactions between sale are capitalised as part of the cost of the advance consideration.
members of the Group are eliminated in full asset. The amount of borrowing costs eligible
on consolidation. A change in the ownership for capitalisation is determined as the actual
interest of a subsidiary, without a loss of control, borrowing costs incurred on that borrowing
is accounted for as an equity transaction. during the period less any investment income
on the temporary investment of those
borrowings.
2.8.4.2 Foreign operations Impairment losses are recognized in the 2.9. Changes in accounting policies and
Subsidiaries incorporated outside Sri Lanka are Statement of Profit or Loss in those expense disclosures
treated as foreign operations. On consolidation, categories consistent with the function of the
New and amended standards and
the assets and liabilities of foreign operations impaired asset, except for a property previously
interpretations
are translated into Sri Lanka Rupees at the rate of revalued where the revaluation was taken to
other comprehensive income. In this case, The Company has consistently applied new
exchange prevailing at the reporting date and
the impairment is also recognized in other and amended standards from 1 April 2022,
their statements of profit or loss are translated
comprehensive income up to the amount of but do not have a significant impact on the
at exchange rates prevailing at the dates of the
any previous revaluation. consolidated financial statements of the Group.
transactions. The exchange differences arising
The Group has not early adopted any standards,
on translation for consolidation are recognised
For assets excluding goodwill, an assessment interpretations or amendments that have been
in Other Comprehensive Income and presented
is made at each reporting date as to whether issued but are not yet effective.
in the foreign currency translation reserve in
equity except to the extent the translation there is any indication that previously
difference is allocated to the non-controlling recognized impairment losses may no longer 3. STANDARDS ISSUED BUT
interest. On disposal of a foreign operation, the exist or may have decreased. If such indication NOT EFFECTIVE AS AT THE
component of Other Comprehensive Income exists, the Company estimates the asset’s or REPORTING DATE
relating to that particular foreign operation is cash-generating unit’s recoverable amount.
A previously recognized impairment loss is Following amendments to Sri Lanka
reclassified to income statement as part of the Accounting Standards issued not yet
gain or loss on disposal. reversed only if there has been a change in
the assumptions used to determine the asset’s effective as at the reporting date have not
recoverable amount since the last impairment been applied in preparing the Consolidated
Any goodwill arising on the acquisition Financial Statements. These amendments
of a foreign operation and any fair value loss was recognized. The reversal is limited
so that the carrying amount of the asset and improvements are not expected to have
adjustments to the carrying amounts of assets a significant impact on the Group’s financial
and liabilities arising on the acquisition are does not exceed its recoverable amount, nor
exceed the carrying amount that would have statements. The Group plans to apply these
treated as assets and liabilities of the foreign amendments to the standards from their
operation and translated at the spot rate of been determined, net of depreciation, had no
impairment loss been recognized for the asset effective dates.
exchange at the reporting date.
in prior years. Such reversal is recognized in the
Statement of Profit or Loss unless the asset is 3.1 Amendments to LKAS 1 -
2.8.5 Impairment of non-financial assets
carried at a revalued amount, in which case the Classification of Liabilities as
The Group assesses at each reporting date reversal is treated as a revaluation increase. Current or Non current
whether there is an indication that an asset
The amendment aims to promote consistency
may be impaired. If any indication exists, the 2.8.6 Statement of cash flows in applying the requirements by helping
Company estimates the asset’s recoverable
The Statement of Cash Flow has been prepared companies to determine. Whether, in the
amount. An asset’s recoverable amount is the
using the ‘indirect method’ in accordance statement of financial position, debt and
higher of an asset’s or cash-generating unit’s
with Sri Lanka Accounting Standard - LKAS 7 - other liabilities with an uncertain settlement
(CGU) fair value less costs to sell and its value
“Statement of Cash Flows”, whereby operating date should be classified as current (due or
in use and is determined for an individual asset,
activities, investing activities and financing potentially due to be settled within one year)
unless the asset does not generate cash inflows
activities are separately recognised. Cash and or non-current. The amendments clarify:
that are largely independent of those from
other assets or groups of assets. Where the cash equivalent comprise cash in hand, cash
at bank and short term investments that are * What is meant by a right to defer
carrying amount of an asset or CGU exceeds
readily convertible to known amounts of cash settlement
its recoverable amount, the asset is considered
impaired and is written down to its recoverable and subject to an insignificant risk of change in
* That a right to defer must exist at the end
amount. value.
of the reporting period
Interest received and dividends received are * That classification is unaffected by the
In assessing value in use, the estimated future
classified as investing cash flows, while dividend likelihood that an entity will exercise its
cash flows are discounted to their present
paid is classified as financing cash flows and deferral right
value using a pre-tax discount rate that reflects
current market assessments of the time value interest paid is classified under the operating
* That only if an embedded derivative in
of money and the risks specific to the asset. In cash flows for the purpose of presentation of
a convertible liability is itself an equity
determining fair value less costs to sell, recent Statement of Cash Flows.
instrument would the terms of a liability
market transactions are taken into account, not impact its classification
if available. If no such transactions can be Cash and cash equivalent includes bank
identified, an appropriate valuation model is overdrafts that are repayable on demand The amendments are effective for annual
used. These calculations are corroborated by and form on integral part of the Group’s cash reporting periods beginning on or after
valuation multiples, quoted share prices for management. 1 January 2023 and must be applied
publicly traded subsidiaries or other available retrospectively. The amendments are not
fair value indicators. expected to have a material impact on the
Group.
3.2 Amendments to LKAS 1 and SLFRS 3.4 Amendments to LKAS 12 - Deferred Tax related to Assets and Liabilities arising
Practice Statement 2 - Disclosure of from a Single Transaction
Accounting Policies The amendments clarify that where payments that settle a liabilities are deductible for tax purposes
Amendments to LKAS 1 and SLFRS Practice it is a matter of judgement (having considered the applicable tax law) whether such deductions
Statement 2 Making Materiality Judgments, are attributable for tax purposes to the liability recognised in the financial statements (and interest
in which it provides guidance and examples expense) or to the related asset component (and interest expense). This judgement is important in
to help entities apply materiality judgments determining whether any temporary differences exist on initial recognition of the asset and liability
to accounting policy disclosures. The
amendments aim to help entities provide The amendments apply for annual reporting periods beginning on or after 1 January 2023.
accounting policy disclosures that are more
useful by replacing the requirement for entities 4. SEGMENT INFORMATION
to disclose their ‘significant’ accounting policies
with a requirement to disclose their ‘material’ Accounting policy
accounting policies and adding guidance on Segment is a distinguishable component of the Group that is engaged either in providing related
how entities apply the concept of materiality products or services (business segment), or in providing products or services within a particular
in making decisions about accounting policy economic environment (Geographical Segment), which is subject to risks and returns that are
disclosures. different from those of the Segments. The Group’s Primary Format for segmental reporting is based
on Business Segments. The Business Segments are determined based on the Group’s Management
The amendments to LKAS 1 are applicable for and internal reporting structure.
annual periods beginning on or after 1 January
2023 with earlier application permitted. Since The activities of the Group are located mainly in Sri Lanka. Consequently, the economic environment
the amendments to the Practice Statement in which the Group operated is not subject to risks and rewards that are significantly different on a
2 provide non-mandatory guidance on the geographical basis. Hence disclosure by geographical region is not provided.
application of the definition of material to Transfer prices between operating segments are on an arm's length basis in a manner similar to
accounting policy information, an effective transactions with third parties.
date for these amendments is not necessary
The Board of Directors monitors the operating results of its business units separately for the
The Group is currently assessing the impact purpose of making decisions about resource allocation and performance assessment. Segment
of the amendments to determine the impact performance is evaluated based on profit or loss and is measured consistently with profit or loss in
they will have on the Group’s accounting policy the Consolidated Financial Statements.
disclosures. As such for Management purposes, the Group is organized into business units based on their
products and services and has four operating Business Segments as follows:
3.3 Amendments to LKAS 8 – Definition
of Accounting Estimates Business Segment Operations
In February 2021, the IASB issued amendments
to LKAS 8, in which it introduces a definition of Construction Process of constructing buildings and other infrastructures.
‘accounting estimates’. The amendments clarify
the distinction between changes in accounting Construction-Related Materials Production and supply of construction related material such as
estimates and changes in accounting policies asphalt product, quarry products, crusher products, ready-mix
and the correction of errors. Also, they clarify concrete and other construction material.
how entities use measurement techniques and
Property Development of residential and commercial property for leasing,
inputs to develop accounting estimates.
renting or sale in whole or part.
The amendments are effective for annual Automobile Importing and distribution or sale of three branded motor
reporting periods beginning on or after vehicles, spare parts and operates of work shops.
1 January 2023 and apply to changes in
accounting policies and changes in accounting
estimates that occur on or after the start of that
period. Earlier application is permitted.
The amendments are not expected to have a

material impact on the Group.
4.1 Business segment
For the year ended 31 March 2023 Construction Construction– Property Automobile Adjustments & Group Total
related material eliminations
LKR LKR LKR LKR LKR LKR
Revenue
External customers 9,866,774,321 7,379,598,083 1,396,865,114 1,921,395,757 - 20,564,633,275
Inter-segment 1,735,078,160 851,178,053 102,642,014 9,585,728 (2,698,483,955) -
Total revenue 11,601,852,481 8,230,776,136 1,499,507,128 1,930,981,485 (2,698,483,955) 20,564,633,275
Segment operating profit 2,993,361,025 2,409,826,797 4,336,075,134 134,187,878 (2,039,780,871) 7,833,669,963
Net finance income / (cost) (2,318,821,728) (1,408,008,899) 60,614,490 (210,699,484) 13,589,818 (3,863,325,804)
Share of results of equity-accounted
investees, net of tax (Note 16.2) - - - - 406,927,909 406,927,909
Income tax expense (359,415,931) (117,356,360) (1,485,725,089) 21,572,413 - (1,940,924,967)
Segment profit 315,123,366 884,461,537 2,910,964,534 (54,939,193) (1,619,263,144) 2,436,347,100
Capital expenditure 99,235,277 223,093,762 10,171,993,264 144,680,953 (182,212,264) 10,456,790,990
Depreciation and amortisation 776,033,852 280,706,394 56,227,581 128,326,148 16,702,578 1,257,996,553
As at 31 March 2023
Segment assets 51,944,741,695 5,330,140,747 50,908,138,352 3,584,463,206 (31,826,172,712) 79,941,311,285
Segment liabilities 29,405,333,005 2,633,035,175 19,494,220,030 1,480,605,695 (5,043,871,960) 47,969,321,943
For the year ended 31 March 2022 Construction Construction– Property Automobile Adjustments & Group Total
related material eliminations
Revenue
External customers 20,058,443,648 15,678,458,278 771,214,464 3,121,505,385 - 39,629,621,775
Inter-segment 276,359,962 1,974,780,226 69,844,645 72,425,237 (2,393,410,070) -
Total revenue 20,334,803,610 17,653,238,504 841,059,109 3,193,930,622 (2,393,410,070) 39,629,621,775
Segment operating profit 1,979,222,705 2,147,721,119 985,065,093 106,919,861 (1,007,212,268) 4,211,716,510
Net finance income / (cost) (574,091,467) (393,030,013) 13,723,261 (96,898,273) 16,652,465 (1,033,644,027)
Share of results of equity-accounted
investees, net of tax (Note 16.2 ) - - - - 1,435,066,924 1,435,066,924
Income tax expense (186,517,947) (228,642,225) 944,753,382 (12,519,426) - 517,073,784
Segment profit 1,218,613,291 1,526,048,881 1,943,541,736 (2,497,838) 444,507,121 5,130,213,191
Capital expenditure 2,214,818,179 718,622,880 1,575,821,982 95,731,087 (11,990,407) 4,593,003,721
Depreciation and amortisation 751,339,942 233,984,866 50,846,808 135,170,876 14,502,578 1,185,845,070
As at 31 March 2022
Segment assets 52,187,251,719 12,201,262,365 34,261,976,796 4,065,065,428 (20,868,672,669) 81,846,883,639
Segment liabilities 35,804,048,735 3,303,488,605 11,133,045,876 1,906,380,066 (947,414,249) 51,199,549,033
In addition to the segment results, income tax expense and net finance income/ (cost) have been allocated to other segments on a reasonable basis, for
better presentation.
5. REVENUE Sale of goods Rental Income

Accounting policy The revenue recognition occurs at a point in Rental income arising from operating lease
Revenue represents the amounts derived time when control of the asset is transferred on investment properties is accounted for on
from the construction contracts, sale of goods to the customer, generally, on delivery of the a straight-line basis over the lease term and
and provision of services, which fall within goods. Sales are measured at the fair value incurred in revenue in the Statement of Profit
the Group’s ordinary activities net of trade of the consideration received or receivable or Loss due to its operating nature.
discounts and turnover related taxes. excluding amounts collected on behalf of
third parties (e.g. Sales taxes) and variable Agency Services
Revenue from contracts with customers is consideration (e.g. discounts and rebates). When the Group acts in the capacity of an agent
recognised when control of the goods or rather than as the principal in a transaction, the
Rendering of services
services is transferred to the customer at an revenue recognised is the net amount that it
amount that reflects the consideration to Revenue from rendering of services is retains for its agency services.
which the Group expects to be entitled in recognised in the Statement of Profit or Loss
exchange for those goods or services. Timing when each performance obligations are
of transferring the goods and services to the satisfied by transferring promised service to the
customer is determined based on judgments customer.
taking into the consideration of the nature
of the goods and services that offers to the 5.1 Revenue
customers.
Group Company
The following specific criteria are used for the For the year ended 31 March 2023 2022 2023 2022
purpose of recognition of revenue: LKR LKR LKR LKR
Construction contracts
Roads and highways
Revenue from construction related contracts is construction 1,477,688,734 3,375,697,913 1,477,688,734 3,375,697,913
recognised upon satisfaction of a performance
Water and drainage construction 130,089,585 1,491,433,828 130,089,585 1,491,433,828
obligation agreed in the contract. At contract
inception, the Group determines whether it Bridge construction 1,334,513,403 3,201,704,916 1,334,513,403 3,201,704,916
satisfies the performance obligation over time Building and other construction 6,995,705,659 11,931,969,846 6,695,473,589 9,597,624,968
or at a point in time. The revenue recognition
Design income 99,150,386 6,619,650 102,150,386 19,619,650
occurs at a point in time when control of the
asset is transferred to the customer. For each Sale of construction-related
performance obligation satisfied over time, material 6,352,773,355 15,657,756,383 6,657,357,430 15,575,933,159
the Group recognizes the revenue over time Hiring income 681,400,297 71,185,477 961,973,578 72,120,103
by measuring the progress towards complete Fabrication income 175,050,985 533,913 197,123,545 2,402,628
satisfaction of that performance obligation.
Vehicle sales and after sales
The progress is assessed based on surveys services 1,921,395,757 3,121,505,385 - -
of work performed. When the outcome of Rental income 1,396,865,114 771,214,464 - -
construction contract can not be estimated 20,564,633,275 39,629,621,775 17,556,370,250 33,336,537,165
reliably, contract revenue is recognized only to
the extent of contract costs incurred that are 5.1.1 Timing of revenue recognition
likely to be recoverable. By considering loss
making contracts, a provision is immediately Group Company
made in profit or loss for the difference For the year ended 31 March 2023 2022 2023 2022
between the expected cost of fulfilling a LKR LKR LKR LKR
contract and the expected unearned portion
of the transaction price when the forecast costs
Revenue recognised at a point
are greater than the forecast revenue.
in time 10,527,485,507 19,622,195,622 7,816,454,553 15,650,455,890
Revenue recognised over time 10,037,147,768 20,007,426,153 9,739,915,697 17,686,081,275
20,564,633,275 39,629,621,775 17,556,370,250 33,336,537,165
5.2 Contract Balances 6. OTHER INCOME Rent Income

Contract assets Accounting policy Rent income is accounted for on a straight-line
Contract assets are entity's right to consideration Income earned in other sources, which are basis over the lease term.
in exchange for goods or services that the entity not directly related to the ordinary course of
Foreign Exchange Gain
has transferred to a customer, when that right business are recognized as other income.
is conditioned on some criteria other than All monetary assets and liabilities in foreign
the passage of time. Upon satisfaction of the The following specific criteria are used for the currencies at the reporting date are translated
conditions, the amounts recognised as contract purpose of recognising income. in to Sri Lankan Rupee using the year end
assets are reclassified to trade receivables. The exchange rate. Difference arising on settlement
contract assets primarily relate to the Group's Gain on disposal of property, plant and or translation of monetary items are recognized
right to consideration for work completed but equipment in Statement of Profit or Loss.
not billed at the reporting date. The gain on disposal of property, plant and
equipment is determined as the difference Restaurant and membership income
Contract liability between the carrying amount of the property, Restaurant and Membership income
The contract liabilities are entity's obligation to plant and equipment at the time of disposal recognized on accrued basis
transfer goods and services to a customer for and the proceeds from disposal net of expenses
which the entity has received consideration incurred in disposal. Sundry income
(or the amount is due) from the customer. Sundry income includes the repair maintenance
The contract liabilities primarily relate to Dividends
income,miscellaneous income and creditor
the advance consideration received from Dividends income is recognised when the write off on accrued basis.
customers for goods or services provided, for Group’s/ Company's right to receive the
which revenue is recognised over the time. payment is established. Change in fair value of investment property
Investment property is initially measured at
Detail of contract assets, contract liabilities and cost and subsequently at fair value with any
amount recognised during the year as revenue change therein recognised in Statement of
are disclosed in the Note 19.5 and Note 28.1 profit or loss. Details of Investment properties
respectively. are disclosed in the Note 13.1.
6.1 Other Income
Group Company
LKR LKR LKR LKR
Dividend income from investments in subsidiaries - - 1,657,237,732 983,565,499

Rent income 31,573,817 21,545,707 48,298,172 30,566,347
Gain on disposal of property, plant and equipment 75,649,931 77,779,076 31,343,908 55,911,022
Foreign exchange gain 1,118,234,174 525,057,793 1,002,946,531 339,889,908
Sundry income 113,101,892 468,995,236 32,499,429 27,091,749
Restaurant and membership income 12,698,720 23,164,230 - -
1,351,258,534 1,116,542,042 2,772,325,772 1,437,024,525
6.2 Change in fair value of investment property
Group Company
LKR LKR LKR LKR
Gain on fair value changes of investment property 13.1/13.2 3,466,984,624 3,157,849 169,091,350 -
3,466,984,624 3,157,849 169,091,350 -
7. NET FINANCE INCOME / (COST) financial instruments or a shorter period, where cash payments through the expected life of the
Accounting policy appropriate, to the net carrying amount of the financial instrument or a shorter period, where
financial asset. appropriate, to the net carrying amount of the
Finance income
financial liability.
Finance income comprises of interest income Finance costs
on funds invested, staff loan, retention Borrowing costs directly attributable to the
Finance costs comprise interest expense on
receivable, contract liability and dividend acquisition, construction or production of an
borrowings, staff loan, retention receivable,
income, gains on the disposal of financial asset that necessarily takes a substantial period
contract liability and fair value losses on
assets at fair value through profit or loss. of time to get ready for its intended use or sale
financial assets at fair value through profit or
Interest income is recognised as it accrues in are capitalised as part of the cost of the asset.
loss, are recognised in the Statement of Profit
the Statement of Profit or Loss. All other borrowing costs are expensed in the
or Loss.
period in which they occur. Borrowing costs
Interest income is recorded using the Effective consist of interest and other costs that an entity
Interest expense is recorded as it accrues using
Interest Rate (EIR) method, which is the rate incurs in connection with the borrowing of
the effective interest rate (EIR), which is the rate
that exactly discounts the estimated future funds.
that exactly discounts the estimated future
cash receipts over the expected life of the
7.1 Net finance cost
Group Company
For the year ended 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Finance income
Interest income on fixed deposits 341,579,541 112,486,909 269,441,785 98,964,414
Interest income on repurchase agreements 59,611,246 254,670 59,025,584 254,670
Interest income on debenture - 2,525,484 - 2,525,484
Other interest income 121,862,138 13,148,862 110,090,776 7,714,966
Reversal of interest income on related party loan - - - (1,309,732)
Interest Income on Promissory note 46,389,448 - 46,389,448 -
Interest Income on long outstanding debtors - 11,963,098 - -
Dividend income on financial assets at fair value through profit or loss 6,235,613 9,244,474 6,235,613 9,244,474
575,677,986 149,623,497 491,183,206 117,394,276
Interest income on retention receivable 138,127,277 184,975,327 138,127,277 181,942,542
Interest income on staff loans 12,240,370 8,915,219 12,240,370 8,915,219
Interest income on contract liability 167,655,968 160,295,801 167,655,968 160,295,801
Total finance income 893,701,601 503,809,844 809,206,821 468,547,838
Finance cost
Interest on finance leases (49,966,258) (27,146,684) (16,167,380) (185,734)
Interest on bank overdraft (247,568,515) (21,010,762) (212,195,006) (4,199,705)
Interest on debenture (60,493) (129,689) (60,493) (129,689)
Interest on bank loan (3,706,615,225) (1,009,123,201) (3,428,030,809) (937,387,579)
Interest on related party loan (61,676,389) - (53,530,899) -
Net change in fair value of financial assets at fair value
through profit or loss (265,298,814) (82,581,652) (265,298,814) (82,581,652)
Promissory note discounting expense (65,020,670) (65,020,670)
(4,396,206,364) (1,139,991,988) (4,040,304,071) (1,024,484,359)
Unwinding of prepaid retention receivable expenses (138,127,277) (184,975,327) (138,127,277) (181,942,542)
Unwinding of prepaid staff loan expenses (12,240,370) (8,915,219) (12,240,370) (8,915,219)
Unwinding of significant financing component (210,453,395) (203,571,337) (210,453,394) (203,571,337)
Total finance cost (4,757,027,406) (1,537,453,871) (4,401,125,112) (1,418,913,457)
Net finance cost (3,863,325,805) (1,033,644,027) (3,591,918,291) (950,365,619)
GRI 207-4
8. PROFIT BEFORE TAX

Accounting policy
Expenditure recognition
Expenses are recognised in the Statement of Profit or Loss on the basis of a direct association between the cost incurred and the earning of specific items
of income. All expenditure incurred in the running of the business and in maintaining the property, plant and equipment in a state of efficiency has been
charged to the Statement of Profit or Loss.
For the purpose of presentation of Statement of Profit or Loss, the Directors are of the opinion that "function of expenses" method presents fairly the
elements of the enterprise's performance; hence such presentation method is adopted.
8.1 Profit before tax is stated after charging all expenses including following:
Group Company
LKR LKR LKR LKR
Auditors' remuneration - statutory audit & related services 12,861,938 12,472,356 3,957,000 3,412,000
Auditors' remuneration - non-audit services 763,005 1,656,857 700,000 1,310,333
Net change in fair value of financial assets at fair value through
profit or loss 265,298,814 82,581,652 265,298,814 82,581,652
Write-off/ provision for / (reversal of ) of trade receivables 151,542,636 312,347,755 136,276,910 187,207,661
Provision for / (reversal of ) of related party receivables - - 5,081,375 -
Provision for / (reversal of ) of retention receivables 36,862,872 (10,268,365) 4,251,065 41,366,505
Provision for/ (reversal of ) write off of inventories 7,524,639 16,027,493 7,512,599 (8,071,743)
Donations 2,619,306 3,388,605 982,905 2,103,344
Staff expenses 8.1.1 2,541,314,317 4,084,034,876 1,841,480,795 3,389,984,023
CSR expense 1,810,683 20,088,697 906,146 18,012,771
Depreciation of property, plant and equipment 11.1/11.2 1,235,167,671 1,162,641,716 970,083,257 894,444,701
Amortisation and impairment of intangible assets 14.1 22,828,883 23,203,354 14,438,659 14,874,073
Amortisation of right-of-use-assets 12.1 109,219,719 47,185,993 9,882,334 2,114,289
Loss on asset write-off 46,238,186 867,424 518,880 867,424
8.1.1 Staff expenses

Defined benefit plan costs - Gratuity 27.1 82,073,484 57,176,463 67,318,526 40,896,434
Defined contribution plan costs - EPF 137,003,624 173,495,116 91,827,220 126,712,445
Defined contribution plan costs - ETF 33,875,814 45,334,875 22,966,567 31,674,289
Directors' emoluments and fees 29.6 93,804,125 120,209,192 41,159,375 68,125,000
Staff cost 2,194,557,270 3,687,819,230 1,618,209,107 3,122,575,855
2,541,314,317 4,084,034,876 1,841,480,795 3,389,984,023
Group Company
As at 31 March 2023 2022 2023 2022
Number of employees 1,751 3,530 1,094 2,854

9. INCOME TAX
Accounting policy Deferred taxation
Income tax expense comprises current and Deferred tax is recognised in respect of Deferred tax is measured at the tax rates that
deferred tax. It is recognised in profit or loss temporary differences between the carrying are expected to be applied to temporary
except to the extent that it relates to a business amounts of assets and liabilities for financial differences when they reverse, using tax
combination, or items recognised directly in reporting purposes and the amounts used rates enacted or substantively enacted at the
equity or in Other Comprehensive Income. for taxation purposes. Deferred tax is not reporting date, and reflects uncertainty related
recognised for: to income taxes, if any.
The Group has determined that interest and
Ì temporary differences on the initial
penalties related to income taxes, including The measurement of deferred tax reflects the
recognition of assets or liabilities in
uncertain tax treatments, do not meet the tax consequences that would follow from the
a transaction that is not a business
definition of income taxes and therefore manner in which the Group expects, at the
combination and that affects neither
accounted for them under LKAS 37 - "Provisions reporting date, to recover or settle the carrying
accounting nor taxable profit or loss;
, Contingent Liabilities and Contingent Assets". amount of its assets and liabilities. For this
Ì temporary differences related to purpose, the carrying amount of investment
Current tax investments in Subsidiaries, Associates and property measured at fair value is presumed to
Current tax comprises the expected tax payable Joint Arrangements to the extent that the be recovered through sale, and the Group has
or receivable on the taxable income or loss for Group is able to control the timing of the not rebutted this presumption.
the year and any adjustment to the tax payable reversal of the temporary differences and it
or receivable in respect of previous years. The is probable that they will not reverse in the Deferred tax relating to items recognized
amount of current tax payable or receivable is foreseeable future; and outside profit or loss is recognized outside
the best estimate of the tax amount expected profit or loss. Deferred tax items are recognized
Ì taxable temporary differences arising on
to be paid or received that reflects uncertainty in correlation to the underlying transaction
the initial recognition of goodwill.
related to income taxes, if any. The tax rates either in Other Comprehensive Income or
and tax laws used to compute the amount are Deferred tax assets are recognized for unused directly in equity.
those that are enacted or substantively enacted tax losses, unused tax credits and deductible
at the reporting date. Current tax also includes temporary differences to the extent that it is The Group offsets deferred tax assets and
any tax arising from dividends. probable that future taxable profits will be deferred tax liabilities if and only if it has a legally
available against which they can be used. enforceable right to set off current tax assets
Current tax assets and liabilities are offset only if Future taxable profits are determined based and current tax liabilities and the deferred
certain criteria are met. on the reversal of relevant taxable temporary tax assets and deferred tax liabilities relate
differences. If the amount of taxable temporary to income taxes levied by the same taxation
Current tax relating to items recognised directly differences is insufficient to recognise a authority on either the same taxable entity or
in equity is recognised in equity and not in deferred tax asset in full, then future taxable different taxable entities which intend either
the statement of Profit or Loss. Management profits, adjusted for reversal of existing to settle current tax liabilities and assets on a
periodically evaluates positions taken in the temporary differences, are considered, based net basis, or to realise the assets and settle the
tax returns with respect to situations in which on the business plans for individual subsidiaries liabilities simultaneously, in each future period
applicable tax regulations are subject to in the Group. Deferred tax assets are reviewed in which significant amounts of deferred tax
interpretation and establishes provisions where at each reporting date and are reduced to liabilities or assets are expected to be settled or
appropriate. the extent that it is no longer probable that recovered.
the related tax benefit will be realised; such
IFRIC 23 -"Uncertainty over income tax reductions are reversed when the probability Significant judgments relating to deferred
treatments" taxes
of future taxable profits improves.
IFRIC 23 - 'Uncertainty over income tax Deferred tax assets are recognised for unused
treatments' provides guidance on determining Unrecognized deferred tax assets are reassessed tax losses to the extent that it is probable that
taxable profits, tax bases, unused tax credits at each reporting date and recognized to the taxable profit will be available against which the
and tax rates when there is an uncertainty over extent that it has become probable that future losses can be utilized. Significant management
the income tax treatment and Group adopted taxable profits will be available against which judgment is required to determine the amount
above interpretation from 01 April 2019. they can be used. of deferred tax assets that can be recognized,
based upon the likely timing and the level of
No provision has been recognised to the future taxable profits, together with future tax
financial year 2021/22 and 2022/23. planning strategies.
Transfer pricing Ì When receivables and payables are stated cent on the taxable income of the individual
As prescribed in Inland Revenue Act No. 24 with the amount of sales tax included Group companies, net of dividends from
of 2017 and gazette notification on transfer subsidiaries and deemed to be an expenditure
The net amount of sales tax recoverable from,
pricing Group and Company have complied in the financial statements in the year of
or payable to, the taxation authority is included
with the arm's length principles relating to assessment which commenced on 1 April 2020.
as part of receivables or payables in the
transfer pricing. Statement of Financial Position.
The Total Surcharge Tax liability amounted of
Sales tax Surcharge Tax LKR 597,977,967/- and LKR 596,918,504/- have
been recognised for the Group and Company
Expenses and assets are recognised net of the Surcharge Tax Act No. 14 of 2022 was enacted as an opening adjustment to the 1 April 2022
amount of sales tax, except: on 8th April 2022 and is applicable to the retained earnings in the statement of Changes
Ì When the sales tax incurred on a purchase Group as the collective taxable income of in Equity as per the Addendum to the Statement
of assets or services is not recoverable from companies belonging to the Group, calculated of Alternative Treatment (SoAT) issued by The
the taxation authority, in which case, the in accordance with the provisions of the Inland Institute of Chartered Accountants of Sri Lanka.
sales tax is recognised as part of the cost Revenue Act No. 24 of 2017, exceeds Rs. 2,000
of acquisition of the asset or as part of the million, for the year of assessment 2020/2021.
expense item, as applicable The liability is computed at the rate of 25 per
9.1 The major components of income tax expense for the years ended 31 March 2023 and 2022 are:
Group Company
LKR LKR LKR LKR
Consolidated statement of profit or loss

Current income tax:
Current income tax charge 9.2 389,432,881 434,421,459 331,906,117 418,431,650
Adjustments in respect of current income tax of previous year - 3,944,200 - -
Deferred tax:
Relating to origination and reversal of temporary differences 973,336,968 (955,439,443) (40,714,221) (10,397,242)
Impact on changes in tax rates 578,155,118 - 183,428,264 -
Income tax expense/(reversal) reported in the Statement of
Profit or Loss 1,940,924,967 (517,073,784) 474,620,160 408,034,408
Consolidated statement of other comprehensive income

Deferred tax related to items recognised in other
comprehensive income during in the year:
Net loss/ (gain) on actuarial gains and losses 17,591,137 17,623,445 14,009,395 15,686,481
Net loss/ (gain) on revaluation of land and building 23,689,303 (29,201,705)
Impact on changes in tax rates 20,038,020 - 69,340,100 -
Deferred tax charged to Comprehensive Income 9.4 61,318,460 17,623,445 54,147,790 15,686,481
NOTES TO THE FINANCIAL STATEMENTS GRI 207-4
9.2 Reconciliation between accounting profit and current tax expense
Group Company
LKR LKR LKR LKR
Accounting profit before tax 4,377,272,067 4,613,139,407 1,919,092,994 2,987,936,292

Aggregate non-deductible expenses 2,923,405,468 2,548,288,662 2,396,723,116 1,943,239,476
Aggregate allowable items (2,947,963,454) (7,625,003,392) (1,273,595,005) (1,367,619,774)
Current year tax losses not utilized 28,336,533 4,593,362,015 - -
Tax losses set-off against the current taxable income 9.2.1 (849,615,121) (205,319,058) - -
Total statutory income 3,531,435,493 3,924,467,634 3,042,221,105 3,563,555,994
Exempted income (1,696,783,492) (1,020,012,356) (1,696,783,492) (988,237,153)
Taxable income 1,834,652,001 2,904,455,278 1,345,437,613 2,575,318,841
Taxable income at 2% 300,598,344 269,751,861 - -

Taxable income at 14% 239,582,936 1,194,906,062 239,582,936 1,157,553,062
Taxable income at 18% 76,140,798 1,256,505,097 76,140,798 1,256,505,097
Taxable income at 24% 430,432,560 97,003,427 345,932,349 76,268,084
Taxable income at 30% 765,771,908 1,296,233 661,656,083 -
Dividend tax at 14% 18,024,375 84,992,598 18,024,375 84,992,598
Dividend tax at 15% 4,101,080 4,101,072
1,834,652,001 2,904,455,278 1,345,437,613 2,575,318,841
Tax @ 2% 6,011,967 5,395,037 - -

Tax @ 14% 33,541,611 167,286,849 33,541,611 162,057,429
Tax @ 18% 13,705,344 226,170,917 13,705,344 226,170,917
Tax @ 24% 103,303,814 23,280,822 83,023,764 18,304,340
Tax @ 30% 229,731,572 388,870 198,496,825 -
Dividend tax @ 14% 2,523,413 11,898,964 2,523,412 11,898,964
Dividend tax @ 15% 615,160 615,161
Current income tax charge 389,432,881 434,421,459 331,906,117 418,431,650
9.2.1 Tax loss reconciliation
Group
As at 31st March 2023 2022
LKR LKR
Tax losses brought forward 5,399,611,283 942,493,498

Adjustments to tax loss brought forward and tax losses arising during the year 87,783,079 4,662,436,843
Utilization of tax losses (849,615,121) (205,319,058)
Tax losses carried forward 4,637,779,241 5,399,611,283
GRI 207-4
9.3 Current tax liabilities / (assets)
Group Company
As at 31st March Note 2023 2022 2023 2022
LKR LKR LKR LKR
Balance at the beginning of the year (8,986,164) 257,228,390 41,977,711 325,232,040

Provision made during the year 9.2 389,432,881 434,421,459 331,906,117 418,431,650
Adjustments for the prior year - 3,559,312 - -
Payments made during the year (181,482,843) (709,747,436) (152,322,890) (701,685,979)
WHT recoverable (937,943) 5,552,111 (516,595) -
Balance at the end of the year 198,025,931 (8,986,164) 221,044,343 41,977,711
Made-up as follows
Current tax assets (52,426,627) (53,920,346) - -
Current tax liabilities 250,452,558 44,934,182 221,044,343 41,977,711
198,025,931 (8,986,164) 221,044,343 41,977,711
9.4 Deferred tax liabilities / (assets)
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Balance at the beginning of the year 994,870,650 1,932,804,748 185,861,816 180,572,577

Expense for the year recognized in profit or loss 1,551,492,086 (955,439,443) 142,714,043 (10,397,242)
Expense for the year recognized in OCI 61,318,460 17,623,445 54,147,790 15,686,481
Expense for capitalized during year (359,981) - - -
Exchange difference on translation - (118,100) - -
Balance at the end of the year 2,607,321,215 994,870,650 382,723,649 185,861,816
Made-up as follows
Deferred tax assets (351,274,159) (1,121,731,724) - -
Deferred tax liabilities 2,958,595,374 2,116,602,374 382,723,649 185,861,816
2,607,321,215 994,870,650 382,723,649 185,861,816
9.5 Deferred tax provision as at the year end is made up as follows:

Temporary Tax effect on Temporary Tax effect on
difference temporary difference temporary
difference difference
LKR LKR LKR LKR
Group
Accelerate depreciation for tax purpose 1,302,736,205 390,820,860 1,494,506,234 236,023,585
Revaluation of land and building to fair value 8,849,629,221 2,655,225,942 8,377,150,358 1,978,383,154
Revaluation of investment land to fair value 645,195,420 193,558,626 501,402,620 50,140,262
Leasehold land and buildings (right-of-use-assets) 153,877,089 46,163,127 65,388,929 3,193,343
Provision for impairment of trade & retention receivables (637,236,870) (191,171,061) (449,338,912) (66,847,909)
Provision for impairment of related party receivable (5,081,375) (1,524,413) - -
Provision for inventories (33,242,290) (9,972,684) (47,447,813) (11,387,475)
Defined benefit obligation (260,979,068) (78,630,898) (318,966,013) (48,894,803)
Lease liability (116,625,386) (34,987,616) - -
Unutilized tax losses (1,205,769,309) (361,730,793) (4,773,914,616) (1,145,739,507)
8,692,503,638 2,607,751,090 4,848,780,787 994,870,650
Company
Accelerate depreciation for tax purpose 1,038,943,808 311,683,142 1,144,691,080 160,256,751
Revaluation of land and building to fair value 223,990,314 67,197,094 321,329,332 44,986,107
Revaluation of investment land to fair value 614,599,500 184,379,850 470,806,700 47,080,670
Leasehold land and buildings (right-of-use-assets) 203,942,586 61,182,776 125,000,000 17,500,000
Lease liability (106,724,323) (32,017,297) - -
Provision for impairment of trade & retention receivables (497,271,568) (149,181,470) (357,062,683) (49,988,776)
Provision for impairment of related party receivable (5,081,375) (1,524,413) - -
Defined benefit obligation (196,653,438) (58,996,033) (242,663,827) (33,972,936)
1,275,745,505 382,723,649 1,462,100,602 185,861,816
Impact on rate changes- Deferred tax differences could be utilised. The deferred tax from 1 October 2022) for income and deferred
Deferred tax liability has been computed taking effect on undistributed reserves of subsidiaries taxation. Accordingly, income tax rates of,
into consideration the tax rate of 14% applicable has not been recognised where the parent 14% for Construction income profits, 18% for
for the company as per the new Inland Revenue can control the timing of the reversal of these Construction related material income profits,
Act No. 24 of 2017 until September 30, 2022. temporary differences. and 24% for construction services and other
Deferred tax is provided at 30% w.e.f 1 Oct 2022 income profits have been used for the first
as per the Inland Revenue (Amendment) Act 9.6 Applicable rates of income tax six months (2022/23) and a standard rate of
No. 45 of 2022.In addition to company provided 30% has been used for profits of all segments
Company
additional deffered tax provision amounting of for the second six months with effect from 1
Corporate Income Tax of Company has been October 2022. The Rate of 30% has been used
LKR 252,768,364/= due to rate changes.
computed in accordance with the Inland for Deferred Tax. The resultant impact has been
Revenue Act No. 14 of 2017 and its amendments recognised in the Statement of Profit or Loss
Unutilized tax losses there to. and Other Comprehensive Income.
A deferred tax asset is recognised only to the
extent that it is probable that taxable profit will The Company has used the new tax
be available in the foreseeable future, against rate introduced by the Inland Revenue
which such deductible temporary timing (Amendment) Act No. 45 of 2022 certified on
19 December 2022, (with retrospective effect
Subsidiaries reasons depending on the nature of the defined benefit obligations, obsolete stocks,
Access Realties (Private) Limited business, such period shall be extended up to debtor impairment and right of use assets.
01 April 2018.
As per the agreement entered in to with the Access Projects (Private) Limited
Board of Investment (BOI) of Sri Lanka, under The aforesaid tax exemption period shall be Under the provisions of the Inland Revenue
Section 17 of the BOI Act No. 04 of 1978, the reckoned from the year in which the enterprise Act No.24 of 2017 and amendments thereto,
Company is exempted from Income Tax for commences to make profits or any Year of the Company is liable for income tax at the rate
the period of seven (07) years from the year of Assessment not later than two (02) years of 14% for the first six months (2022/23) and
assessment in which the enterprise commences reckoned from the date of commencement of 30% for the next six months with effect from 1
to make profit in relation to the transaction in commercial operations whichever year is earlier October 2022. Deferred tax rate is 30%.
that year or any year of assessment not later as determined by Commissioner General of
than five (05) years reckoned from the date of its Inland Revenue. Access Projects (Private) Limited has recognised
operations whichever year is earlier. Accordingly, a LKR.3,584,073/- as a deferred tax asset on the
the seven (07) years Income Tax exemption Accordingly, the profit arising from the business deductible temporary differences as at 31 March
period has commenced on 1 April 2003. is exempt from income tax for the period 2023.
covering 01 April 2017 to 31 March 2029.
In accordance with the agreement entered Harbour Village (Private) Limited
in to with the BOI of Sri Lanka the Company is Other income of Company is taxable at 24% for
the first six months (2022/23) and 30% applied The Company has entered into an agreement
liable for Income Tax at 2% on its revenue for
with BOI for ten (10) years tax holiday period
next fifteen (15) years immediately following the for next six months with effect from 1 October
during the year ended 31 March 2017, and the
Seven (07) years Tax exemption period. On that 2022.
provisions of the Inland Revenue Act No. 24 of
basis, the revenue arising from the business shall 2017 relating to the imposition, payment and
As per the provisions of new Inland Revenue
be taxed at 2% during the concessionary period recovery of income tax in respect of the profits
Act No. 24 of 2017 and amendments thereto,
covering 01 April 2010 to 31 March 2025.Other and income of the enterprise shall not apply to
the Company has recognised Deferred Tax
income of Company is taxable at 24% for the first the profits and income of the enterprise for the
Liability on business assets (Building) at 30%
six months (2022/23) and 30% applied for next year ended 31 March 2023.
amounting to LKR 1,409,074,294/- as at 31 March
six months with effect from 1 October 2022.
2023, because the management is under the
For the above purpose the year of assessment
As per the provisions of new Inland Revenue Act impression that the asset will not be disposed
shall be commencing from the year of
No. 24 of 2017 and amendments thereto, the prior to the expiration of BOI tax exempted
assessment in which the enterprise commences
Company has recognised Deferred Tax Liability period.
to make a profit or any year of assessment not
on business assets (Land and Buildings) at 30% later than two years reckoned from the date of
ARL Elevate (Private) Limited
amounting to LKR 1,119,420,524/- as at 31 March commencement of commercial operations or
2023 because the management is under the In accordance with the provision in the Inland production whichever is earlier.
impression that the assets will not be disposed Revenue Act No. 24 of 2017 and amendments
prior to the expiration of BOI Tax exempted thereto, the Company is liable for income tax at In accordance with the provisions of the Inland
period. 24% for first six month (2022/23) and 30% for Revenue Act No. 24 of 2017 and amendments
next six months with effect from 1 October 2022. thereto, the Company is liable for other income
Access Realties 2 (Private) Limited at a rate of 24% for first six months (2022/23) and
Deferred tax asset has not been recognized in 30% next six months with effect from 1 October
As per the Agreement entered into with the
the Financial Statements as at 31 March 2023 2022. Deferred tax rate is 30%.(2021/22-24%)
Board of Investment of Sri Lanka under Sec. 17
because the Board of Directors of ARL Elevate
(A) of Inland Revenue (Amendment) Act No.
(Private) Limited is of the opinion that the Deferred tax liability on Business Assets has been
08 of 2012, the Company shall qualify for a tax
deferred tax asset would not be crystalized in recognized as at reporting date because the
exemption period of twelve (12) years subject to
the foreseeable future. management is under the impression that the
the condition that over of LKR 2,500 Mn is made
asset will not be disposed prior to the expiration
in the project within a period of three (03) years Sathosa Motors PLC and its Subsidiary of BOI exemption period.
from the date of 04 April 2013.
In accordance with the provisions of the Inland
Further insertion of New Section under 48 D of Revenue Act No.24 of 2017 and amendments Starting with the capitalization under project
Inland Revenue (amendment) Act 09 to 2015, if thereto, the Company is liable for Income Tax WIP of Gratuity provision from the financial year
at 24% for the first six months (2022/23) and 2021 it has become a permanent difference and
the approval of Board of Investment was granted
30% for the next six months with effect from 1 therefore Gratuity balance as at 31 March 2023
prior to 31 October 2014 and the Company
October 2022.Deferred tax rate is 30%. is not considered for deffered tax computation.
which invested in such undertaking is unable
to complete the required investment prior to
Sathosa Motors PLC has recognized LKR 48 The Company has made provisions on the
01 April 2015 and to commence commercial
Mn as a deferred tax asset on the deductible Deferred Tax Liability for the revaluation of
operations prior to 01 April 2016 due to practical
temporary differences arising from tax losses,
Business Asset (Land) and the temporary The Company entered in to an Agreement with the Board of Investment of Sri Lanka as per the section
differences arising on employee benefits. 17 of Board of Investment law number 4of 1978 . As per the Inland Revenue act number 24 of 2017 the
Deferred tax asset amounting to LKR. 43,041,819/- Company shall qualify for a 100% enhance capital allowance and any unrelieved loss can be deducted
(2021/22 - LKR. 44,326,898/-) has not been when computing income from business for ten succeeding years.
recognized for deductible temporary difference
as the management is of the opinion that the AEL East Africa Limited
reversal of taxable asset will not be crystalized in Companies incorporated and operating outside Sri Lanka are liable for income tax in accordance
the BOI exemption period. with the provisions of the foreign jurisdictions applicable to the respective companies. As per
the relevant foreign jurisdiction the Company is liable for Income Tax at 30% on its taxable profit.
WUS Logistics (Private) Limited Deferred tax rate is 30%.
Revenue Act No.24 of 2017 and amendments 10. EARNINGS PER SHARE
thereto, the Company is liable for Income Tax rate Accounting policy
at 24% for first six month and 30 % for the next six
months with effect from 1 October 2022 on its Basic earnings per share is calculated by dividing the net profit for the year attributable to equity
taxable profit. Deferred tax rate is 30%.(2021/22- holders of the Parent by the weighted average number of ordinary shares outstanding during the year.
24%)
The following reflects the income and share data used in the basic earning per share calculation.
The Company has recognised a LKR 785,422,588/-
as a deferred tax expenses during 2022/23 period Group Company
and It set off with brought forward tax loss.
Cumulative deferred tax asset amounting of LKR For the year ended 31 March 2023 2022 2023 2022
295,005,485/= as at 31 March 2023.
Profit attributable to ordinary
The Company entered in to an Agreement with equity holders of the parent
the Board of Investment of Sri Lanka as per the (LKR) 2,481,965,080 5,110,445,938 1,444,472,834 2,579,901,884
section 17 of Board of Investment law number
4of 1978 . As per the Inland Revenue act number Weighted average number of
24 of 2017 the Company shall qualify for a 100% ordinary shares of the parent 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
enhance capital allowance and any unrelieved Basic earnings per share (LKR) 2.48 5.11 1.44 2.58
loss can be deducted when computing income
from business for ten succeeding years. 10.1 Diluted earnings per share
Lanka AAC (Private) Limited

Diluted EPS is calculated by dividing the profit/(loss) attributable to ordinary equity holders of the
parent (after adjusting outstanding share option scheme and warrants) by the weighted average
In accordance with the provisions of the Inland number of ordinary shares outstanding during the year plus the weighted average number of
Revenue Act No.24 of 2017 and amendments
ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into
thereto, the Company is liable for Income Tax rate
ordinary shares.
at 18% for first six month (2022/23) and 30 % for
the next six months with effect from 1 October
2022 on its taxable profit. Deferred tax rate is 30%. There were no potentially dilutive ordinary share outstanding at any time during the year/ previous year.
(2021/22-24%)
There have been no other transactions involving ordinary shares or potential ordinary shares
Access Logistics (Private) Limited between the reporting date and the date of authorisation of these Financial Statements.
Revenue Act No.24 of 2017 and amendments 11. PROPERTY PLANT AND EQUIPMENT
thereto, the Company is liable for Income Tax rate Accounting policy
at 24% for first six month (2022/23) and 30 % for
the next six months with effect from 1 October Property, plant and equipment are tangible items that are held for use in the production or supply
2022 on its taxable profit. Deferred tax rate is 30%. of goods or services, for rental to others, or for administrative purpose and are expected to be used
(2021/22-24%). during more than one period. The Group applies the requirements of LKAS 16 in accounting of
property, plant and equipment.
Recognition and measurement
Revenue Act No.24 of 2017 and amendments Property, plant and equipment are recognized if it is probable that future economic benefits
thereto, the Company is liable for Income Tax at associated with the asset will flow to the Group and the cost of the asset can be reliably measured.
24% for first six month (2022/23) and 30 % for
the next six months with effect from 1 October Items of property, plant and equipment including construction in progress are stated at cost/
2022 on its taxable profit. Deferred tax rate is 30%. revaluation less accumulated depreciation and accumulated impairment losses, if any.
(2021/22-24%).
Owned assets to day repair and maintenance are recognised begins when it is available for use whereas
An item of property, plant and equipment that in the Statement of Profit or Loss as incurred. depreciation of an asset ceases at the earlier
qualifies for recognition as an asset is initially of the date that the asset is classified as held
measured at its cost. Cost includes expenditure The carrying value of property plant and for sale (or included in a disposal group that
that is directly attributable to the acquisition equipment are reviewed for impairment when is classified as held for sale) and the date that
of the asset and subsequent cost. The cost events or changes in circumstances indicate the asset is derecognized. Depreciation is not
of self-constructed assets includes the cost that the carrying value may not be recoverable. charged on Freehold Land and capital work in
of materials, direct labor, and any other costs progress.
Derecognition
directly attributable to bringing the asset to
the working condition for its intended use. An item of property, plant and equipment The estimated useful lives are as follows:
This also includes the cost of dismantling and and any significant part initially recognised is
derecognised upon disposal or when no future Asset Category Useful Life
removing the items and restoring in the site on
which they are located and borrowing costs on economic benefits are expected from its use.
qualifying assets. Any gain or loss arising on derecognition of the Freehold building 5 - 50 years
asset (calculated as the difference between the Leasehold building 8-20 years
Property, plant and equipment transferred net disposal proceeds and the carrying amount
of the asset) is included in the statement of Plant and machinery 3 - 15 years
from customers are initially measured at fair
value at the date on which control is obtained. profit or loss when the asset is derecognized. Motor vehicles 4 - 10 years
Gains are not classified as revenue. Leasehold Motor vehicles 5 years
Purchased software that is integrated to the
Revaluation Office equipment 3 - 12 years
functionality of the related equipment is
capitalized as part of equipment. Revaluation is performed on freehold land and Furniture & fittings 3 - 13 years
building by professionally qualified valuers Tools 3 - 8 years
When significant part of property, plant and using the open market value at least once in
equipment are required to be replaces at Other construction equipment 5 years
every three years or when there is a substantial
intervals, the Group derecognised the replaced difference between the fair value and the
The residual value, useful lives and methods of
part and recognises the new part with its carrying amount, to ensure that the fair value
depreciation of property, plant and equipment
own associated useful life and depreciation. does not differ materially from its carrying
are reviewed at each financial year end and
Likewise when a major inspection is performed, amount.
adjusted prospectively, if appropriate.
its cost is recognised in the carrying amount
of plant and equipment as a replacement if A revaluation surplus is recorded in Other Capital work in progress
the recognistion criteria are satisfied, All other Comprehensive Income and credited to the
repair and maintenance costs are recognised in asset revaluation surplus in equity. However, Capital expenses incurred during the year
the profit or loss as incurred. to the extent that it reverses a revaluation which are not completed as at the reporting
deficit of the same asset previously recognised date are shown as capital work in progress,
Leased assets in profit or loss, in which case the increase is whilst the capital assets which have been
recognised in profit and loss. A revaluation completed during the year and available to use
Leases of property, plant and equipment that
deficit is recognised in the statement of profit have been transferred to property, plant and
transfer to the Group substantially all of the
or loss, except to the extent that it offsets an equipment.
risks and rewards of ownership are classified as
finance leases. The leased assets are measured existing surplus on the same asset recognised
Reclassification to investment property
initially at an amount equal to the lower of in the asset revaluation surplus. Upon
their fair value and the present value of the disposal, any revaluation surplus relating to When the use of a property changes from
minimum lease payments. Subsequent to the particular asset being sold is transferred to owner-occupied to investment property,
initial recognition, the assets are accounted retained earnings. the property is remeasured to fair value and
for in accordance with the accounting policy reclassified accordingly. Any gain arising on
applicable to that asset. Depreciation this remeasurement is recognised in profit or
Depreciation is recognized in profit or loss on loss to the extent that it reverses a previous
Subsequent costs straight-line basis over the estimated useful impairment loss on the specific property, with
lives of each part of item of property, plant any remaining gain recognised in OCI and
The cost of replacing part of an item of
and equipment. Leased assets are depreciated presented in the revaluation reserve. Any loss is
property, plant and equipment is recognized in
over the shorter of the lease term and their recognised in profit or loss. However, to extent
the carrying amount of the item if it is probable
useful lives unless it is reasonably certain that that an amount is included in the revaluation
that the future economic benefits embodied
the Group will obtain ownership by the end surplus for that property, the loss is recognized
within the part will flow to the Group and its
of the lease term. Depreciation of an asset in OCI and reduces the revaluation surplus
cost can be measured reliably. The costs of day
within the equity.
Reconciliation of beginning and ending balances by classes of assets
11.1 Group
Freehold
Land Building Plant and Motor Office
machinery vehicles equipment
LKR LKR LKR LKR LKR
Cost or Valuation
Balance at 01 April 2021 1,438,047,290 756,075,378 5,758,700,091 1,344,545,913 628,699,408
Additions - 30,784,904 1,254,976,390 363,001,465 126,144,568
Transfers (837,404,080) (42,426,049) 2,500,000 - -
Disposals/derecognition (11,000,000) - (39,448,342) (69,136,556) (6,441,481)
Exchange difference on translation - - - 1,429,275 300,253
Balance at 31 March 2022 589,643,210 744,434,233 6,976,728,139 1,639,840,097 748,702,748
Additions - 19,309,018 238,488,531 11,800,000 63,829,400
Disposals/derecognitions and adjustments - - (134,205,078) (31,418,428) (25,990,208)
Revaluation 197,750,000 39,941,252 - - -
Transfers (from revaluation adjustment) - (57,224,770) - - -
Balance at 31 March 2023 787,393,210 746,459,733 7,081,011,592 1,620,221,669 786,541,940
Accumulated Depreciation and Impairment Losses

Balance at 01 April 2021 - 121,334,459 3,942,873,786 707,141,348 486,736,802
Depreciation charge for the year - 45,862,885 583,835,902 186,840,562 82,440,964
Transfers - (2,987,978) 166,500 - -
Disposals/derecognition - - (33,189,040) (22,098,527) (6,015,075)
Exchange difference on translation - - - 476,425 200,170
Balance at 31 March 2022 - 164,209,366 4,493,687,148 872,359,808 563,362,861
Disposals/derecognitions and adjustments - - (129,449,163) (31,418,427) (24,120,474)
Balance at 31 March 2023 - 155,438,429 4,914,219,805 1,032,938,072 637,079,480
Carrying value
At 31 March 2023 787,393,210 591,021,304 2,166,791,788 587,283,597 149,462,460
At 31 March 2022 589,643,210 580,224,867 2,483,040,991 767,480,289 185,339,887
Group property, plant and equipment with a cost of LKR. 5,243 Mn (2022 - LKR. 4,231 Mn) have been Capital work in progress
fully-depreciated and continue to be in use by the Group. Capital work in progress includes, construction
cost incurred for the construction of factory
There were no capitalized borrowing costs related to the acquisition of property, plant and building of Lanka AAC (Private) Limited and
equipment during the year 2022/23 (2021/22-Nil). under construction of workshop building of
Access Motors (Private) Limited
The exchange difference has arisen as a result of the translation of property, plant and equipment
of foreign operations which are accounted for in foreign currencies and translated to the reporting
currency at the balance sheet date.
Leasehold
Furniture Tools Other Building Motor Vehicles Capital Total
and fittings construction work-in-progress
equipment
LKR LKR LKR LKR LKR LKR LKR
476,911,362 930,199,088 513,770,312 837,642,168 4,000,000 1,267,752 12,689,858,762

42,412,127 268,906,001 463,159,506 1,830,339 - 9,518,366 2,560,733,666
- 1,234,990 (3,734,990) - - - (879,830,129)
(1,948,752) (17,401,755) (145,451,151) (5,478,426) - - (296,306,463)
309,221 - - - - - 2,038,749
517,683,958 1,182,938,324 827,743,677 833,994,081 4,000,000 10,786,118 14,076,494,585
12,316,161 35,865,891 - 9,877,226 - 103,870,405 495,356,632
(16,280,302) (17,219,947) (48,266,970) (183,569,235) - - (456,950,168)
- - - - - - 237,691,252
- - - - - - (57,224,770)
513,719,817 1,201,584,268 779,476,707 660,302,072 4,000,000 114,656,523 14,295,367,531
283,392,485 796,275,277 405,337,933 238,048,667 933,336 - 6,982,074,094

56,271,623 91,079,583 68,787,682 46,722,515 800,000 - 1,162,641,716
- 119,492 (285,992) - - - (2,987,978)
(1,759,904) (16,879,220) (145,451,145) - - - (225,392,911)
180,380 - - - - - 856,975
338,084,584 870,595,132 328,388,478 284,771,182 1,733,336 - 7,917,191,896
58,160,650 127,757,283 119,258,391 40,921,906 800,004 - 1,235,167,671
(12,817,724) (16,518,858) (48,266,970) (106,923,693) - - (369,515,309)
- - - - - - (57,224,770)
383,427,510 981,833,557 399,379,899 218,769,395 2,533,340 - 8,725,619,488
130,292,307 219,750,711 380,096,808 441,532,677 1,466,660 114,656,523 5,569,748,043

179,599,374 312,343,192 499,355,199 549,222,899 2,266,664 10,786,118 6,159,302,689
Property, plant and equipment pledged as indications of impairment as at the reporting

security date due to the economic uncertainties, and
Property pledged as securities against loans functions under the business continuity plan as
and borrowings are described in note 26.3 per the Group’s risk management strategy.
Impairment There were no restrictions existed on the title of

the assets of the Group as at the reporting date.
The Management has assessed the potential
impairment loss of property, plant and
There are no temporarily idle assets as at the
equipment as at 31 March 2023. Based on the
reporting date.
assessment, the Group does not foresee any
11.2 Company
Freehold
Land Building Plant and Motor Office
machinery vehicles equipment
LKR LKR LKR LKR LKR
Cost or Valuation
Balance at 01 April 2021 236,000,000 94,912,243 5,030,978,204 1,089,899,958 437,791,945
Additions - - 1,154,084,280 349,236,759 100,589,539
Disposals / Derecognition - - (17,948,766) (5,450,000) (5,849,068)
Balance at 31 March 2022 236,000,000 94,912,243 6,167,113,718 1,433,686,717 532,532,416
Additions - - 210,599,482 - 21,904,832
Disposals / Derecognition - - (61,236,385) (201,100) (23,776,015)
Revaluation 58,000,000 21,019,133 - - -
Transfers (from revaluation adjustment) (21,019,133) - - -
Balance at 31 March 2023 294,000,000 94,912,243 6,316,476,815 1,433,485,617 530,661,233
Accumulated Depreciation and Impairment Losses

Balance at 01st April 2021 - 11,120,065 3,650,368,472 575,069,648 341,217,342
Disposals / derecognition - - (12,762,422) (5,449,998) (5,807,763)
Balance at 31 March 2022 - 22,209,830 4,134,285,709 725,578,337 399,041,094
Disposals / derecognition - - (61,197,257) (201,099) (22,620,672)
Balance at 31 March 2023 - 12,280,462 4,539,591,068 891,766,332 449,172,910
Carrying value
At 31 March 2023 294,000,000 82,631,781 1,776,885,747 541,719,285 81,488,323
At 31 March 2022 236,000,000 72,702,413 2,032,828,009 708,108,380 133,491,322
Company property, plant and equipment with a cost of LKR. 4,711 Mn (2022- LKR. 3,715 Mn) have been fully-depreciated and continue to be in use by
the Company.
Property, plant and equipment pledged as security

As at reporting date property, plant and equipment have not been pledged by the Company as securities against facilities obtained from banks.
Furniture Tools Other Total

and fittings construction
equipment
LKR LKR LKR LKR
156,851,751 828,895,398 510,035,322 8,385,364,821

25,481,927 266,086,027 459,451,753 2,354,930,285
(725,124) (17,105,360) (145,451,151) (192,529,469)
181,608,554 1,077,876,065 824,035,924 10,547,765,637
6,320,876 30,076,610 - 268,901,800
(11,549,422) (16,845,949) (48,266,970) (161,875,841)
- - - 79,019,133
- - - (21,019,133)
176,380,008 1,091,106,726 775,768,954 10,712,791,596
134,660,528 747,644,157 405,051,941 5,865,132,153

16,284,088 82,429,643 68,371,344 894,444,701
(725,098) (16,775,482) (145,451,145) (186,971,908)
150,219,518 813,298,318 327,972,140 6,572,604,946
17,934,749 117,392,072 118,022,473 970,083,257
(9,358,631) (16,314,753) (48,266,970) (157,959,382)
- - - (21,019,133)
158,795,636 914,375,637 397,727,643 7,363,709,688
17,584,372 176,731,089 378,041,311 3,349,081,908

31,389,036 264,577,747 496,063,784 3,975,160,691
11.3 Revaluation of Land and Building

Company
The freehold land and buildings of the Company were revalued as at 31 March 2023 by Mr. K T D Tissera – FIV (Sri Lanka), F.R.I.C.S. (Eng) an independent
professional valuer on an open market value for existing use basis.
Subsidiaries
The freehold land and buildings of Access Projects (Private) Limited were revalued as at 31 March 2023 by Mr. K.T.D. Tissera - F. I. V (Sri Lanka), F. R. I. C.
S. (Eng.) an independent professional valuer on a depreciated replacement cost basis for buildings and market value basis for land as at the date of
revaluation.
Details of Group's land and building stated at valuation are indicated below;
Significant unobservable input

Location Extent Building Number Valuation technique Estimated Estimated price Fair value Correlation
square of price per perch per square feet to
feet buildings fair value
LKR LKR LKR Mn.
Access Engineering PLC

Land depicted at No.236/1, Low 3 R and 9,070 1 Open market value basis 500,000 750-1500 90 Positive
Level Road, Jalthara, Ranala. 38.4 P
Land depicted at No 278, 3 A 2 R and 36,572 1 Open market value basis 200,000 - 250,000 1000 - 1750 202 Positive
Alubogahalanda, Jalthara, Ranala. 39.42 P
Land depicted at Weliwita, 2A - - Open market value basis 200,000 - 64 Positive
Kaduwela.
Land depicted at Divigalahena, 10 A - - Open market value basis 62,500 - 10 Positive
Pananwela, Hakmana
Access Projects (Private) Limited

Land depicted at No: 278, 2 A 1 R and 50,748 1 Depreciated replacement 125,000 - 225,000 600 - 3000 215 Positive
Kekulanvila road, Jalthara, Ranala. 38.38 P cost basis for buildings
and open market value
basis for land
Land depicted at No. 281, 20 P 1,506 1 Open market value basis 250,000 1500 - 3000 8.3 Positive
Kekulanvila road, Jalthara, Ranala.
Land depicted at No. 301/1/C, 3 R 26 P 2,508 1 Open market value 60,000 2,500 15 Positive
Jalthara, Ranala. basis
Summary description of valuation methodologies

Open market value method (OMV)
Open market value method uses prices and other relevant information generated by market transactions involving identical or comparable assets,
liabilities or a group of assets and liabilities such as business.
Depreciated replacement cost Method

Depreciated replacement cost method uses the current cost of reproduction or replacement of an asset less deductions for physical deterioration and
all relevant forms of obsolescence and optimization.
The carrying amount of revalued land and buildings if they were carried at cost less depreciation and impairment, would be as follows;
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Cost 289,402,923 289,402,923 110,461,118 110,461,118

Accumulated depreciation and impairment (69,591,086) (63,381,083) (26,199,654) (22,155,490)
Net carrying amount 219,811,837 226,021,840 84,261,464 88,305,628
12. RIGHT OF USE ASSETS AND LEASES

Accounting policy
The Group assesses at contract inception If ownership of the leased asset transfers to modification, a change in the lease term, a
whether a contract is, or contains, a lease. That the Group at the end of the lease term or the change in the lease payments (e.g., changes
is, if the contract conveys the right to control cost reflects the exercise of a purchase option, to future payments resulting from a change in
the use of an identified asset for a period of depreciation is calculated using the estimated an index or rate used to determine such lease
time in exchange for consideration. useful life of the asset. The right-of-use assets payments) or a change in the assessment of an
are also subject to impairment. option to purchase the underlying asset.
Group as a lessee
Lease liabilities Short-term leases and leases of low-value
The Group applies a single recognition and
assets
measurement approach for all leases, except At the commencement date of the lease, the
for short-term leases and leases of low-value Group recognises lease liabilities measured at The Group applies the short-term lease
assets. The Group recognises lease liabilities to the present value of lease payments to be made recognition exemption to its short-term (i.e.,
make lease payments and right-of-use assets over the lease term. The lease payments include those leases that have a lease term of 12
representing the right to use the underlying fixed payments (including in-substance fixed months or less from the commencement date
assets. payments) less any lease incentives receivable, and do not contain a purchase option). Lease
variable lease payments that depend on an payments on short-term leases and leases of
Right-of-use assets index or a rate, and amounts expected to be low-value assets are recognised as expense on
The Group recognises right-of-use assets at paid under residual value guarantees. The a straight-line basis over the lease term.
the commencement date of the lease (i.e., the lease payments also include the exercise price
of a purchase option reasonably certain to Group as a lessor
date the underlying asset is available for use).
Right-of-use assets are measured at cost, less be exercised by the Group and payments of Leases in which the Group does not transfer
any accumulated depreciation and impairment penalties for terminating the lease, if the lease substantially all the risks and rewards incidental
losses, and adjusted for any remeasurement term reflects the Group exercising the option to ownership of an asset are classified as
of lease liabilities. The cost of right-of-use to terminate. operating leases. Rental income arising is
assets includes the amount of lease liabilities accounted for on a straight-line basis over
recognised, initial direct costs incurred, Variable lease payments that do not depend the lease terms and is included in revenue
and lease payments made at or before the on an index or a rate are recognised as in the statement of profit or loss due to its
commencement date less any lease incentives expenses (unless they are incurred to produce operating nature. Initial direct costs incurred in
received. Right-of-use assets are depreciated inventories) in the period in which the event or negotiating and arranging an operating lease
on a straight-line basis over the shorter of the condition that triggers the payment occurs. are added to the carrying amount of the leased
lease term and the estimated useful lives of the asset and recognised over the lease term on
assets, as follows: In calculating the present value of lease the same basis as rental income. Contingent
payments, the Group uses its incremental rents are recognised as revenue in the period
Years borrowing rate at the lease commencement in which they are earned.
date because the interest rate implicit in the
lease is not readily determinable. After the Amounts recognised in the statement of
Building 3 -10 financial position and profit or loss
commencement date, the amount of lease
Land 30 liabilities is increased to reflect the accretion Set out below are the carrying amounts and
of interest and reduced for the lease payments the movements of the Group's right of use
made. In addition, the carrying amount of assets and Lease liabilities for the year ended
lease liabilities is remeasured if there is a 31 March 2023 and 2022.
12.1 Right-of-use-assets
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Balance at the beginning of the year 2,841,371,492 286,270,639 126,857,338 -

Additions 122,944,881 2,555,100,853 89,081,871 126,857,338
Disposal of prepaid lease rental (116,659,261) - - -
Balance at the end of the year 2,847,657,112 2,841,371,492 215,939,209 126,857,338
Accumulated depreciation
Balance at the beginning of the year 104,625,425 57,439,432 2,114,289 -
Amortisation expense 109,219,719 47,185,993 9,882,334 2,114,289
Amortisation of disposal of prepaid lease rental (40,830,741) - - -
Balance at the end of the year 173,014,403 104,625,425 11,996,623 2,114,289
Carrying value
As at 31 March 2,674,642,709 2,736,746,067 203,942,586 124,743,049
12.1.1 Right of use assets - Prepayment

Right of use assets- prepayment represents the amount of expenditure recognised during the year for construction of car park and commercial building
of the company in a lease land of UDA for 30 years period. The construction of car park has been completed and operated from July 2023.
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Balance at the beginning of the year 444,264,831 444,264,831 444,264,831 444,264,831

Additions 792,819,801 - 792,819,801 -
Balance at the end of the year 1,237,084,632 444,264,831 1,237,084,632 444,264,831
Reclassification note
The Construction cost of car park and commercial building recognized under PPE in the 2021/22 period and reclassified the construction cost of car park
and commercial building under the right of use asset-prepayment during the financial year (2022/23).
As at 31st March Previous year Adjustment Re Adjusted
balance balance
(2022) (2023)
Property, Plant and Equipment 4,419,425,521 (444,264,831) 3,975,160,690

Right of use assets - Prepayment - 444,264,831 444,264,831
12.2 Lease liabilities
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Balance at the beginning of the year 262,661,779 143,917,902 1,846,047 -

Additions during the year 122,944,882 2,419,981,603 89,081,871 1,857,338
Adjustment/ Cancellation and Termination (100,802,032) - 5,952,723 -
Interest expense 34,757,618 27,536,743 10,127,682 185,734
Payments made during the year (55,849,073) (2,328,774,464) (284,000) (197,025)
Balance at the end of the Year 263,713,174 262,661,779 106,724,323 1,846,047
Interest in Suspense (172,544) (390,058) - -
Payable within one year 41,325,560 134,932,777 6,662,782 17,903

Payable after one year 222,215,070 127,338,944 100,061,541 1,828,144
12.3 Maturity analysis - contractual undiscounted cash flows
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Within the next 12 months 81,351,339 116,986,851 7,923,152 197,025

Between 1 and 2 years 86,268,680 124,213,896 11,742,728 197,025
Beyond 5 years 331,532,967 96,843,476 273,902,320 4,925,625
701,540,477 555,712,696 328,796,384 5,910,750
12.4 Amounts recognised in profit or loss on SLFRS 16 - Leases
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
2022/23 Lease under SLFRS 16

Amortisation of right-of-use assets 109,219,719 47,185,993 9,882,334 2,114,289
Interest expense on lease liabilities 34,585,075 27,146,685 10,127,682 185,734
12.5 Amounts recognized in cash flows for 2022/23 on SLFRS - Leases
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Payment of lease liabilities (55,849,073) (2,328,774,464) (284,000) (197,025)
There were no right of use assets pledge by the Group and Company as security for facilities obtained from the Banks.
13 INVESTMENT PROPERTIES
Accounting policy
Investment property is property held either to applying a valuation model recommended Transfers are made to (or from) investment
earn rental income or for capital appreciation by the International Valuation Standards property only when there is a change in use.
or for both, but not for sale in the ordinary Committee. For a transfer from investment property to
course of business, used in the production of owner occupied property, the deemed cost
supply of goods or services or for administrative Investment properties under construction for subsequent accounting is the fair value at
purposes. is measured at cost until either its fair value the date of change in use. If owner-occupied
becomes reliably measurable or construction is property becomes an investment property,
Recognition and measurement completed (which ever is earlier). the Group accounts for such property in
Investment properties are measured initially at accordance with the policy stated under
De-recognition property, plant and equipment up to the date
cost, including transaction costs. Subsequent
to initial recognition, investment properties Investment properties are derecognized either of change in use.
are stated at fair value, which reflects market when they have been disposed of or when
conditions at the reporting date. Gains or they are permanently withdrawn from use and Where Group companies occupy a significant
losses arising from changes in the fair values of no future economic benefits are expected from portion of the investment property of a
investment properties are included in profit or their disposal. The difference between the net subsidiary, such investment properties are
loss in the period in which they arise, including disposal proceeds and the carrying amount of treated as property, plant and equipment in
the corresponding tax effect. Fair values are the asset is recognised in profit or loss in the the consolidated financial statements and
determined based on valuation performed period of derecognition. accounted using Group accounting policy for
by an accredited external independent valuer property, plant and equipment.
13.1 Quantitative and qualitative disclosures of the investment properties
Group Company
LKR LKR LKR LKR
Balance at the beginning of the Year 17,831,487,464 10,573,071,663 1,026,408,650 614,207,200

Additions/ Acquisitions 9,271,597 439,867,128 412,201,450
Transfer from property, plant and equipment - 876,842,151 - -
Transfer from investment properties- Work-in-progress 13.3 - 5,938,548,673 - -
Gain on fair value changes 3,466,984,624 3,157,849 169,091,350 -
Balance at the end of the Year 21,307,743,685 17,831,487,464 1,195,500,000 1,026,408,650
Rental income derived from investment properties 994,372,853 841,312,249 16,778,454 15,253,140
Direct operating expenses (including repair and maintenance)
generating rental income 165,563,984 150,835,697 - -
13.2 Location, Extent and Valuation of Investment Properties

Fair value of the Property was ascertained by independent valuation carried out by Mr. K.T.D Tissera, FIV (Sri Lanka), F. R. I. C. S. (Eng.) an independent
professional valuer, on an open market value for existing use basis as at 31 March 2023.
Description of valuation techniques used and key inputs to valuation of investment properties;
Significant unobservable inputs
Location Estimated
Freehold price per Fair Value Correlation
Method of Building Estimated price square No of Fair value Gain LKR to Fair
Extent valuation Square Feet per perch LKR feet Buildings LKR Mn. Mn Value

Land depicted at No 117, Dehiwala Road, 2 R and Open market
Boralasgamuwa. 35.5 P value method 12,784 3,500,000 Rs.8,000 1 465 135 Positive
Land depicted at No.267, Dehiwala Road, Open market
Maharagama. 3 R and 1 P value method - 2,500,000 - - 300 34 Positive
Land depicted at Dickowita, Hendala. 2 A 3 R and Open market
10.18 P value method - 40,000 - - 18 - Positive
Land depicted at Heeralugedara, 50A 1 R and Open market
Kotadeniyawa 8.7 P value method - 51,250 - - 412 - Positive

Land depicted at Nos. 264/5, 266, 268, 278
and 278/4 Dr. Colvin R De Silva Mawatha
(Union Place) and No 116 and 118 Dawson Open market 9,000,000 - Rs.4,000 -
street, Colombo 2 1 A 25.65 P value method 216,718 10,000,000 Rs.10,000 1 4,056 - Positive
Access Realties 2 (Private) Limited
30 Stories Buildings at No 116, 118, 264/5 and Open market
278/4 Dawson street, Colombo 2 - value method 404,554 - Rs.16,500 1 6,993 - Positive
Sathosa Motors PLC Open market
value method
Land depicted at No. 86, Vauxhall Street,
Colombo 02
2 R 3.07 P 4,063 10,500,000 Rs. 3000 1 880 - Positive
Kimbulapitiya South, Kimbulapitiya, 1A3R Open market
Negombo 31.3 P value method - - - - 90 - Positive
WUS Logistics (Private) Limited
No.540, Maligagodella Watta, Kimbulapitiya 41 A 2 R Open market Rs. 4,500 -
27.45 P value method 625,293 250,000 - 450,000 Rs 15,000 1 9,275 3,433 Positive
Land depicted at Bogahawatta, Open market
Welamullawattha 3 R 16.25 P value method - 95,500 - - 13 - Positive
Summary description of valuation methodologies

Investment method
The investment method is used to value properties which are let to produce an income for the investor. Conventionally, investment value is a product of
rent and yield. Each of these elements is derived using comparison techniques.
Open market value method

Open market value method uses prices and other relevant information generated by market transactions involving identical or comparable assets,
liabilities or a group of assets and liabilities such as a business.
13.3 Investment properties - Work-in-progress
Group
As at 31 March 2023 2022
LKR LKR
Balance at the beginning of the year 1,768,828,208 6,605,111,595

Additions 9,952,162,762 1,102,265,286
Transfer to Investment Properties - (5,938,548,673)
Balance at the end of the year 11,720,990,970 1,768,828,208
Investment properties work-in-progress consists the Proposed Warehouse Construction ( 02 Nos) at Export Greenfield warehousing Complex 02, Ekala
and development at No.250, Srimath Ramanathan Mawatha, Kotahena, Colombo 15 by Harbour Village (Private) Limited.
Since the above mentioned investment properties are under construction, the Group is unable to determine fair value reliably. Therefore as recommended
in LKAS 40 paragraph 53, it has been measured at cost.
14. INTANGIBLE ASSETS AND GOODWILL of each reporting period. Changes in the
Accounting policy expected useful life or the expected pattern
of consumption of future economic benefits
Basis of recognition
embodied in the asset is considered to
An Intangible asset is recognised if it is probable that future economic benefits associated with the modify the amortisation period or method,
assets will flow to the Group and cost of the asset can be measured reliably. as appropriate, and are treated as changes
in accounting estimates. The amortisation
Goodwill Goodwill arising on the acquisition of subsidiaries is measured at cost less
expense on intangible assets with finite lives
accumulated impairment losses.
is recognised in the Statement of Profit or Loss
Research and Expenditure on research activities is recognised in profit or loss as incurred. in the expense category that is consistent with
development the function of the intangible assets.
Development expenditure is capitalised only if the expenditure can be
measured reliably, the product or process is technically and commercially Intangible assets with indefinite useful lives are
feasible, future economic benefits are probable and the Group intends to not amortised, but are tested for impairment
and has sufficient resources to complete development and to use or sell the annually, either individually or at the cash
asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent generating unit level. The assessment of
to initial recognition, development expenditure is measured at cost less indefinite life is reviewed annually to determine
accumulated amortisation and any accumulated impairment losses. whether the indefinite life continues to be
Other intangible Other intangible assets are acquired by the Group and have finite useful lives supportable. If not, the change in useful
assets are measured at cost less accumulated amortisation and any accumulated life from indefinite to finite is made on a
impairment losses. prospective basis.
Basis of measurement reflected in the Statement of Profit or Loss in Subsequent expenditure
Intangible assets acquired separately are the year in which the expenditure is incurred. Subsequent expenditure is capitalised only
measured on initial recognition at cost. The when it increases the future economic benefits
Useful economic lives, amortisation and embodied in the specific asset to which
costs of intangible assets acquired in a business
impairment
combination is their fair value as at the date of it relates. All other expenditure, including
acquisition. The useful lives of intangible assets are assessed expenditure on internally generated goodwill
as either finite or indefinite. Intangible assets and brands, is recognised in profit or loss as
Following initial recognition, intangible assets with finite lives are amortised over the useful incurred.
are carried at cost less any accumulated economic life and assessed for impairment
amortisation and accumulated impairment whenever there is an indication that the Amortisation
losses. intangible asset may be impaired. Amortisation of intangible assets with a finite
life is recognised in profit or loss on a straight-
Internally generated intangibles, excluding The amortisation period and the amortisation line basis over the estimated useful lives of
capitalised development costs, are not method for an intangible asset with finite intangible assets, from the date on which they
capitalised and the related expenditure is useful lives are reviewed at least at the end are available for use. The estimated useful lives
are as follows:
have been allocated to Cash Generating Units Business growth – Based on the long term
Asset category Amortisation period
(CGU) that is expected to benefit from the average growth rate for each business unit
(Years) synergies of the combination. CGUs to which where applicable. The weighted average
goodwill has been allocated have been tested growth rate used is consistent with the industry
Enterprise resource
5 - 10 years for impairment annually, and whenever there growth rates.
planning system is an indication that the unit may be impaired
Other software 3 - 10 years by comparing the carrying amount of the unit Inflation – Based on current inflation rate.
including the goodwill, with the recoverable
Impairment of goodwill Discount rate – Risk free rate adjusted for the
amount of the unit. If the carrying amount of
Based on impairment assessment, the the unit exceeds the recoverable amount of the specific risk relating to the industry.
following goodwill were impaired during the unit and the goodwill allocated to that unit has
Margin – Based on past performance and
year 2022/ 2023; been regarded as impaired. The impairment
budgeted expectations.
loss has been allocated to reduce the carrying
amount of any goodwill allocated to the CGU
For the year ended 2023 2022 Derecognition of intangible assets
and then to other assets of the unit.
31st March, LKR LKR An intangible asset is derecognised upon
The recoverable amount of goodwill is disposal (i.e., at the date the recipient obtains
Access Project determined based on value-in-use calculations. control) or when no future economic benefits
(Private) Limited 656,616,126 - These calculations use cash flow projections are expected from its use or disposal. Any gain
656,616,126 - based on financial budgets approved by or loss arising upon derecognition of the asset
management. The key assumptions used are (calculated as the difference between the net
For the purpose of impairment testing , given below; disposal proceeds and the carrying amount of
goodwill acquired from business combinations the asset) is included in the Statement of Profit
or Loss.
14.1 Reconciliation of beginning and ending balances by classes of assets
Group Company
Note Software Goodwill Total Software Total
LKR LKR LKR LKR LKR
Cost / Revaluation
At 1 April 2021 156,301,457 1,182,012,008 1,338,313,465 98,024,496 98,024,496
Additions 45,872,811 - 45,872,811 43,993,336 43,993,336
At 31 March 2022 202,174,268 1,182,012,008 1,384,186,276 142,017,832 142,017,832
Additions - - - - -
At 31 March 2023 202,174,268 1,182,012,008 1,384,186,276 142,017,832 142,017,832
Accumulated amortisation and impairment losses

At 1 April 2021 103,208,129 - 103,208,129 69,116,945 69,116,945
Amortisation 23,203,354 - 23,203,354 14,874,073 14,874,073
At 31 March 2022 126,411,483 - 126,411,483 83,991,018 83,991,018
Amortisation 22,828,883 - 22,828,883 14,438,659 14,438,659
Impairment of Goodwill 656,616,126 656,616,126
At 31 March 2023 149,240,366 656,616,126 805,856,492 98,429,677 98,429,677
Carrying value
At 31 March 2023 52,933,902 525,395,882 578,329,784 43,588,155 43,588,155
At 31 March 2022 75,762,785 1,182,012,008 1,257,774,793 58,026,814 58,026,814
Software in intangible assets mainly consists of the SAP Enterprise Resource Planning system software and SAP user license acquired by the Company.
Intangible assets with a cost of LKR 19 Mn (2022 - LKR. 19 Mn ) and LKR 10 Mn (2022 - LKR. 10 Mn) have been fully amortised and continue to be in use
by the Group and Company respectively.
There were no intangible assets pledge by the Group and Company as security for facilities obtained from the banks (2022 - Nil).
15. INVESTMENTS IN SUBSIDIARIES

Accounting policy
Investment in subsidiaries are initially recognised at cost in the financial statements of the Company. Any transaction cost relating to acquisition of
investment in subsidiaries are immediately recognised in Profit or Loss. Following initial recognition, Investment in subsidiaries are carried at cost less
any accumulated impairment losses. The net assets of each subsidiary are reviewed at each reporting date to determine whether there is any indication
of impairment. If any such indication exists, then the recoverable amount of the investment is estimated and the impairment loss is recognised to the
extent of its net assets loss.
15.1 Total carrying amount
Note 2023 2022

LKR LKR
Investment in subsidiaries - quoted (note 15.2) 1,196,572,767 1,196,572,767

Investment in subsidiaries - unquoted (note 15.3) 25,576,351,046 20,229,518,848
26,772,923,813 21,426,091,615
15.2 Quoted Investments
Company
2023 2022
Country of Number of Effective LKR Number of Effective LKR
incorporation shares holding % shares holding %
Sathosa Motors PLC Sri Lanka 5,093,745 84.42 1,196,572,767 5,093,745 84.42 1,196,572,767
Market value of quoted investment 762,788,314 942,342,825
15.3 Unquoted Investments
Company
2023 2022
Country of Number of Effective LKR Number of Effective LKR
incorporation shares holding % shares holding %
Access Realties (Private ) Limited Sri Lanka 199,922,532 100 7,996,901,280 199,922,532 100 7,996,901,280
Access Projects (Private) Limited Sri Lanka 16,000,000 80 1,000,000,000 16,000,000 80 1,000,000,000
Harbour Village (Private) Limited Sri Lanka 191,748,574 66.67 3,099,158,510 191,748,574 66.67 3,099,158,510
WUS Logistics (Private) Limited Sri Lanka 557,443,261 100 5,574,432,610 557,443,261 100 5,574,432,610
Access Logistics (Private) Limited Sri Lanka 12,296,416 100 122,964,160 3,955,581 100 39,555,810
Lanka AAC (Private) Limited Sri Lanka 13,100,832 50 131,008,320 13,100,832 50 131,008,320
Access Logistics Park Ekala (Private)
Limited Sri Lanka 826,064,530 100 8,260,728,400 238,820,676 100 2,388,206,760
AEL East Africa Limited Kenya 1,000 100 255,558 1,000 100 255,558
26,185,448,838 20,229,518,848
Less :Provision for impairment in value of
Investment in subsidiaries (609,097,792) -
Carrying value of unquoted Investments 25,576,351,046 20,229,518,848
Accounting estimate - provision for impairment

An impairment assessment was carried out as at 31 March 2023 and it was concluded that amount of LKR 608,842,234/= and LKR 255,558/= impaired
of Access Projects (Private) Limited and AEL East Africa Limited respectively, other unquoted investments net realisable value exceed its carrying value.
16. EQUITY-ACCOUNTED INVESTEES

Accounting policy
The Group's interests in equity-accounted or joint venture since the acquisition date. After application of the equity method, the
investees comprise interest in associate and Goodwill relating to the associate or joint Group determines whether it is necessary
joint Venture. venture is included in the carrying amount of to recognise an impairment loss on its
the investment and is not tested for impairment investment in associate or joint venture. At
An associate is an entity over which the Group separately. each reporting date, the Group determines
has significant influence. Significant influence whether there is objective evidence that the
is the power to participate in the financial and The Statement of Profit or Loss reflects the investment in the associate or joint venture
operating policy decisions of the investee, Group’s share of the results of operations of the is impaired. If there is such evidence, the
but is not control or joint control over those associate or joint venture. Any change in OCI Group calculates the amount of impairment
policies. of those investees is presented as part of the as the difference between the recoverable
Group’s OCI. In addition, when there has been a amount of the associate or joint venture and
A joint venture is a type of joint arrangement change recognised directly in the equity of the its carrying value, and then recognizes the
whereby the parties that have joint control associate or joint venture, the Group recognises loss as ‘Share of results of equity accounted
of the arrangement have rights to the net its share of any changes, when applicable, in investees’ in the statement of profit or loss.
assets of the joint venture. Joint control is the Statement of Changes in Equity. Unrealised Upon loss of significant influence over the
the contractually agreed sharing of control gains and losses resulting from transactions associate or joint control over the joint
of an arrangement, which exists only when between the Group and the associate or joint venture, the Group measures and recognises
decisions about the relevant activities require venture are eliminated to the extent of the any retained investment at its fair value. Any
the unanimous consent of the parties sharing interest in the associate or joint venture. difference between the carrying amount of
control. the associate or joint venture upon loss of
The aggregate of the Group’s share of profit or significant influence or joint control and the fair
The considerations made in determining loss of an associate and a joint venture is shown value of the retained investment and proceeds
significant influence or joint control are similar on the face of the statement of profit or loss from disposal is recognized in profit or loss.
to those necessary to determine control over outside operating profit and represents profit
subsidiaries. The Group’s investments in its or loss after tax and noncontrolling interests Investments in equity accounted investees
associate and joint venture are accounted for in the subsidiaries of the associate or joint are carried at cost less any accumulated
using the equity method. venture. impairment losses.
Under the equity method, the investment The Financial Statements of the associate
in an associate or a joint venture is initially or joint venture are prepared for the same
recognised at cost. The carrying amount of the reporting period as the Group. When necessary,
investment is adjusted to recognise changes in adjustments are made to bring the accounting
the Group’s share of net assets of the associate policies in line with those of the Group.
16.1 Carrying amount of interest in equity-accounted investees
Group Company
Number of Effective 2023 2022 2023 2022
shares holding % LKR LKR LKR LKR
Investment in joint venture

Blue Star Realties (Private) Limited * 60,150,000 60 726,116,546 2,071,285,760 600,000,000 1,200,000,000
Investment in an associate
ZPMC Lanka Company (Private ) Limited 5,546,544 30 245,395,423 173,869,223 55,465,410 55,465,410
971,511,970 2,245,154,983 655,465,410 1,255,465,410
* The Group investment in Blue Star Realties (Private) Limited consists of voting shares of 80,300,000 and non voting shares 40,000,000. The Group has
an economic interest of 60% in Blue Star Realties (Private) Limited as at 31 March 2023.
16.1.1 Reconciliation of carrying amount of interest in equity-accounted investees
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
At the beginning of the year 2,245,154,983 1,290,088,059 1,255,465,410 1,255,465,410

Add/ (Less) - Group’s share of results of equity-accounted investees, net of tax 406,927,909 1,435,066,924 - -
Divestment in join venture (600,000,000) - (600,000,000) -
Dividends received from joint venture (1,079,461,612) (480,000,000) - -
Carrying amount of interest in equity accounted investees 971,511,970 2,245,154,983 655,465,410 1,255,465,410
16.2 Group’s share of total comprehensive income
For the year ended 31st March 2023 2022

LKR LKR
Group’s share of profit

Joint venture 334,292,401 1,424,152,148
Associate 72,635,508 10,914,776
406,927,909 1,435,066,924
16.3 Investment in joint venture

The Group has invested 50% interest and further 10% interest (non voting share capital) in Blue Star Realties (Private) Limited in the year of 2016 and 2020
respectively. The Group has an economic interest of 60% in Blue Star Realties (Private) Limited as at 31 March 2023.The Board of Directors of Blue Star Realties
(Private) Limited has decided to reduce stated capital of the company in terms of section 59(1) of the companies Act No 07 of 2007.During the year 2022/23,
AEPLC received a sum of LKR 600,000,000/= on capital reduction. Cumulative value of the investment is LKR. 600,000,000/= as at 31 March 2023. The joint
venture involves in the business of residential property development. There is no changes of shareholding percentage due to capital reduction.
The Group’s interest in joint ventures are accounted for using the equity method in the Consolidated Financial Statements.
Summarised financial information of the joint ventures, based on its Audited Financial Statements, and reconciliation with the carrying amount of the
investment in the Consolidated Financial Statements are set out below:
2023 2022
LKR LKR
Non-current assets 5,531,428 8,811,189

Current assets 1,585,213,477 3,926,255,617
Non-current liabilities (164,023,410) (219,092,869)
Current liabilities (294,972,662) (340,156,989)
Net assets (100%) 1,131,748,833 3,375,816,948
Group’s share of net assets -60% 680,320,954 2,025,490,168
Goodwill 45,795,592 45,795,592
Carrying amount of interest in joint venture 726,116,546 2,071,285,760
Revenue 2,137,016,791 9,718,464,179
Total comprehensive income (100%) 557,431,885 2,373,586,914
Group’s share of total comprehensive income - 60% 334,292,401 1,424,152,148
Dividends received by the Group 1,079,461,612 480,000,000
The joint venture had no material contingent liabilities or capital commitments as at 31 March 2022 or as at 31 March 2023.
16.4 Investment in an associate

The Group has a 30% interest in ZPMC Lanka Company (Private ) Limited, which has entered in to a contract with Colombo International Container
Terminal to service and maintain the Container Handling Equipment supplied by Shanghai Zhenhua Heavy Industries Company Limited of China
(known as ZPMC).
The Group’s interest in ZPMC Lanka Company (Private) Limited is accounted for using the equity method in the Consolidated Financial Statements.
Summarised financial information of the associate, based on its SLFRS financial statements, and reconciliation with the carrying amount of the investment
in the Consolidated Financial Statements are set out below:
2023 2022
LKR LKR
Non-current assets 34,260,782 12,812,524

Current assets 1,332,571,977 938,388,287
Non-current liabilities (19,737,518) (9,362,540)
Current liabilities (530,394,516) (363,183,953)
Net assets (100%) 816,700,725 578,654,318
Group’s share of net assets (30%) 245,395,424 173,869,223
Carrying amount of interest in associate 245,395,424 173,869,223
Revenue 1,544,495,560 883,912,346

Total Comprehensive Income 241,738,297 36,325,475
Group’s share of total comprehensive income (30%) 72,635,508 10,914,776
There were no dividends received from the associate during 2022/23 (2021/22 - Nil).
The associate had no material contingent liabilities or capital commitments as at 31 March 2022 or as at 31 March 2023.
17. NON-CURRENT FINANCIAL ASSETS

Accounting policy
The Group designated the investments shown below as equity securities at FVOCI because these equity securities represent investments that the Group
intends to hold for the long term for strategic purposes.
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Non-listed equity investment

Access CHEC JV (Private) Limited 510,000 510,000 510,000 510,000
510,000 510,000 510,000 510,000
No Strategic investments were disposed of during 2022/23 , and there were no transfers of any cumulative gain or loss within equity relating to these
investments
18. INVENTORIES
Accounting policy
Inventories are measured at the lower of Net realisable value is the estimated selling Work in progress
cost or net realizable value, after making due price in the ordinary course of business, Remaining work in progress are stated at
allowance for obsolete and slow moving items. less estimated costs of completion and the cost.
estimated costs necessary to make the sale.
The cost of inventories are based on a weighted The work in progress balance include the work
average costs. Inventory movement is reviewed at the end of Marina Square project apartments at actual
of reporting period by an expert to assess the cost.
The cost of inventories is comprised of all costs recoverability of inventory and the items that
of purchase, costs of conversion and other are identified as irrecoverable are written off Goods in transit
costs incurred in bringing the inventories to during the year.
Goods-in-transit are recognised at actual cost
their present location and condition, excluding
as at reporting date.
borrowing cost. Borrowing cost for inventories
that are qualifying assets are capitalised as part
of cost.
18.1 Inventories
Group Company
LKR LKR LKR LKR
Inventories 3,735,351,184 4,605,262,215 2,634,408,324 3,650,295,824

Work in Progress 12,187,486,326 9,947,729,690 221,817,364 234,955,726
Goods In Transit 78,649,080 118,344,819 - -
Provision for inventories 18.1.1 (56,234,825) (51,485,051) (11,442,701) (3,930,103)
15,945,251,765 14,619,851,673 2,844,782,987 3,881,321,447
18.1.1 Movement in provision for inventories
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR

Provision for/ (Reversal of ) inventory provision 4,749,774 4,928,257 7,512,598 (8,071,743)
There were no inventories pledge by the Group and Company as security for facilities obtained from the banks (2023 - Nil).
19. TRADE AND OTHER

RECEIVABLES
Accounting policy
Trade receivables are amounts due from Provision for impairment of trade receivables
customers for goods sold or services
The Group applies the simplified approach such as experiencing a significant financial
performed in the ordinary course of business.
in measuring expected credit losses (ECL) difficulty or default in payment by customer.
Other financial nature receivables are
allowance which is recommended by SLFRS 9 Debtors that are not specifically impaired are
recognised as other receivables. If collection is
on making impairment of trade receivables. then collectively assessed for any impairment.
expected in one year or less (or in the normal
In assessing collective impairment, the Group
operating cycle of the business if longer), they
ECL are probability- weighted estimate of uses historical information on the probability
are classified as current assets. If not, they are
credit losses. It is not resulted in a material of default, the timing of recoveries, the amount
presented as non-current assets.
change in loss allowance compared with of loss incurred and makes an adjustment if
previous policy. The allowance is provided current and forward looking economic and
Trade and other receivables are initially
by considering evidence of impairment for credit conditions are likely to be greater or
measured at fair value and subsequently
receivables of both individual and collective lesser than suggested historical trends.
measured at amortised cost using the Effective
level. Receivables are individually assessed for
Interest Rate method (EIR) less any provision for
impairment by considering objective evidence
impairment.
19.1 Trade and other receivables
Group Company
LKR LKR LKR LKR
Trade receivables 19.2 9,288,542,651 21,866,473,460 7,657,330,128 19,438,660,181

Other receivables 19.3 479,417,930 389,737,167 229,417,647 117,054,346
Advance and prepayments 19.4 3,015,989,134 2,863,546,746 1,299,389,864 2,257,738,143
Contract assets 19.5 28,938,306 40,870,713 28,938,305 40,870,713
12,812,888,021 25,160,628,086 9,215,075,944 21,854,323,383
19.2 Trade receivables
Group Company
LKR LKR LKR LKR
Trade Receivables 9,830,158,344 22,257,054,064 8,102,484,867 19,747,857,100

Less: Provision for impairment of trade receivables 19.2.1 (541,615,693) (390,580,604) (445,154,739) (309,196,919)
9,288,542,651 21,866,473,460 7,657,330,128 19,438,660,181
19.2.1 Movement in Provision for impairment of trade receivables
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR

Net provision for impairment of trade receivables 151,035,089 97,343,361 135,957,820 167,337,294
19.3 Other receivables
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Other tax receivables 171,404,163 176,852,990 4,786,158 21,041,281

Others 308,013,767 212,884,177 224,631,489 96,013,065
479,417,930 389,737,167 229,417,647 117,054,346
19.4 Advances and prepayments
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR
Deposits and prepayments 126,838,465 152,075,625 57,486,030 93,265,283

Advances 2,775,009,580 2,589,493,439 1,157,526,122 2,067,109,168
Refundable deposit 114,141,089 121,977,682 84,377,712 97,363,692
3,015,989,134 2,863,546,746 1,299,389,864 2,257,738,143
19.5 Contract assets
Group Company
As at 31st March 2023 2022 2023 2022
LKR LKR LKR LKR

Adjustments for the year (4,952,071) 29,307,887 (4,952,071) 29,307,887
Amount recognised at cost (6,980,336) (58,628,535) (6,980,336) (58,628,535)
20. OTHER CURRENT FINANCIAL ASSETS

Accounting policy
This mainly comprise of retention receivable, staff loans and current portion of investment in debentures which have been designated as financial assets
at amortised cost and measured at amortised cost using EIR method and are subject to impairment.
Group Company
As at 31 March Note 2023 2022 2023 2022
LKR LKR LKR LKR
Retention receivable 20.1 2,244,443,291 2,734,385,189 2,049,881,734 2,591,792,853

Staff loans 130,324,340 128,960,571 120,071,558 110,162,452
Prepaid retention receivable expenses 810,844,182 679,234,703 703,252,557 592,207,564
Prepaid staff loan expenses 34,587,971 14,843,146 34,587,971 14,843,146
Total other current financial assets 3,220,199,784 3,557,423,609 2,907,793,820 3,309,006,015
20.1 Retention receivable
Group Company
As at 31 March Note 2023 2022 2023 2022
LKR LKR LKR LKR
Retention receivable 2,340,064,468 2,793,143,494 2,101,998,563 2,639,658,617

Less: Provision for impairment of retention receivables 20.1.1 (95,621,177) (58,758,305) (52,116,829) (47,865,764)
2,244,443,291 2,734,385,189 2,049,881,734 2,591,792,853
20.1.1 Movement in Provision for impairment of retention receivable
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR

Net provision for / (reversal of ) impairment of retention receivables 36,862,872 (10,268,365) 4,251,065 41,366,505
21. SHORT TERM INVESTMENTS

Accounting policy
Investment in equity securities have been designated as financial assets at fair value through profit or loss. Loss on fair value changes of the investments
have been charged to the profit or loss.

Number of Market Number of Market
shares Value shares Value
LKR LKR
Group / Company
Quoted investments
Browns Investments PLC - - 25,500,000 191,250,000
Chemanex PLC - - 72,023 5,387,320
Expolanka Holdings PLC - - 388,000 80,607,000
Lanka Orix Leasing Company PLC - - 393,698 235,234,555
Lanka Tiles PLC - - 52,708 3,146,668
Bairaha Farms PLC 24,000 3,480,000 138,185 20,900,464
Peoples Leasing & Finance PLC 45,234 357,349 45,234 366,395
People's Merchant Finance PLC 100 520 100 540
C.W.Mackie PLC 84,030 6,882,057 - -
C I C Holdings PLC(Non voting) 75,852 3,754,674 - -
Ex-Pack Corrugated 1,650,000 24,090,000 - -
First Capital Holdings PLC 206,500 6,566,700 - -
LOLC Holdings PLC 10,609 3,978,375 - -
Lankem Ceylon PLC 252,500 19,114,250 - -
Lankem Developments PLC 1,487,121 37,178,007 - -
Lanka IOC PLC 125,000 21,437,500 - -
Maskeliya Plantations PLC 200,000 7,300,000 - -
The Fortress Resorts PLC 716,824 15,770,128 - -
Watawala Plantations PLC 15,000 1,117,500 - -
Total 4,892,770 151,027,060 26,589,948 536,892,942
22. SHORT TERM DEPOSITS

Accounting policy
Investments in fixed deposits have been designated as financial assets at amortised cost and measured at amortised cost using EIR method and are
subject to impairment.
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Fixed deposits 2,569,299,538 2,136,020,085 1,693,917,249 1,691,482,324

2,569,299,538 2,136,020,085 1,693,917,249 1,691,482,324
The Group and Company have invested in Fixed deposits in Bank of Ceylon and People's Bank.
23. CASH AND CASH EQUIVALENTS

Accounting policy
Cash and cash equivalents are defined as cash at bank, cash in hand, demand deposits and short term highly liquid investments, readily convertible to
known amounts of cash and subject to insignificant risk of changes in value.
For the purpose of Statement of Cash Flow, cash and cash equivalents consist of cash in hand and deposits in banks net of outstanding bank overdrafts.
Investments with short maturities i.e. three months or less from the date of acquisition are also treated as cash equivalents.
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Cash at bank 679,071,840 1,763,439,998 129,422,998 869,879,240

Cash in hand 17,072,194 38,720,465 8,066,719 28,513,460
Investment in short term call deposit - 405,846,575 - -
Cash and cash equivalents in the Statement of Financial Position 696,144,034 2,208,007,038 137,489,717 898,392,700
Bank overdraft (1,761,142,207) (130,864,408) (1,553,000,662) -
Cash and cash equivalents for the purpose of Statement of Cash Flows (1,064,998,173) 2,077,142,630 (1,415,510,945) 898,392,700
The credit risk relating to the Group and Company bank balances are analysed according to the credit ratings of each bank. (Note 37.3.2)
Group
The bank overdraft from Commercial Bank and Seylan Bank are secured by the corporate guarantee issued by Access Engineering PLC (parent Company)
for LKR. 250 Mn and secured over debts and inventory of Access Projects (Private) Limited for LKR. 1,000 Mn respectively.
24. STATED CAPITAL AND OTHER COMPONENTS OF EQUITY

Accounting policy
The ordinary shares of Access Engineering PLC are quoted in the Colombo Stock Exchange. The holders of ordinary shares are entitled to receive dividends as
declared from time to time and are entitled to one vote per individual present at meetings of the shareholders or one vote per share in case of a poll.
24.1 Stated capital
2023 2022
Number of Value of Number of Value of
shares shares shares shares
LKR LKR
Issued and fully paid

At the beginning of the year 1,000,000,000 9,000,000,000 1,000,000,000 9,000,000,000
At the end of the year 1,000,000,000 9,000,000,000 1,000,000,000 9,000,000,000
24.2 Other Components of Equity

Other components of equity mainly comprise of revaluation reserve and foreign currency translation reserve.
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
At the beginning of the year 576,619,466 580,150,342 250,274,113 250,274,113

Revaluation reserve 237,691,252 - 79,019,133 -
Foreign currency translation reserve 1,275,688 (3,530,876) - -
At the end of the Year 815,586,406 576,619,466 329,293,246 250,274,113
24.2.1 Revaluation reserve

The revaluation reserve consist of the amounts by which the revaluation of property, plant and equipment, and revaluation of investment properties
immediately before reclassified from property, plant and equipment. There were no restrictions on distribution of these balances to the shareholders.
24.2.2 Foreign currency translation reserve

The foreign currency translation reserve represents the differences between translated values of assets and liabilities of foreign operations at the
exchange rate as at reporting date.
24.3 Dividends
The following dividends were declared and paid by the Company for the year.
Company
As at 31 March 2023 2022
LKR LKR
Dividends on ordinary shares:

Second Interim dividend (2020/21) 500,000,000
First Interim dividend (2021/22) 250,000,000
Final dividend* (2021/22) 750,000,000
Total dividends 750,000,000 750,000,000
Dividend per share 0.75 0.75
* Dividend paid out of previous year's profit (2021/22).
Final dividend of LKR 750Mn for the financial year 2021/22 has been declared on 17 May 2022 and paid on 13 June 2022.
25. GOVERNMENT GRANT

Accounting policy
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied
with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is
intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of
the related asset.
Group
As at 31 March 2023 2022
LKR LKR
Balance at the beginning of the Year 5,045,931 5,265,318

Amortisation (219,387) (219,387)
Balance at the end of the Year 4,826,544 5,045,931
The above represents a Government grant received by Sathosa Motors PLC, for the construction of work shop at Peliyagoda and is amortised over a
period of fifty (50) years. There are no unfilled conditions or contingencies attached to these grants.
26. LOANS AND BORROWINGS

Accounting policy
Loans and borrowings are initially recognised at fair value net of directly attributable transaction costs. Subsequently they are measured at amortized
cost. Any difference between the proceeds (net of transaction cost) and the repayable amount (including interest) is recognised in profit or loss over the
period of the loan using the effective interest rate method.
Group Company
As at 31 March Note 2023 2022 2023 2022
LKR LKR LKR LKR
Current portion of loans and borrowings

Debentures 26.1 561,857 41,857 561,857 41,857
Term loan 26.2 3,451,616,554 4,199,875,411 2,546,686,549 3,121,998,248
3,452,178,411 4,199,917,268 2,547,248,406 3,122,040,105
Non current portion of loans and borrowings

Debentures 26.1 - 540,000 - 540,000
Term loan 26.2 12,786,649,626 18,846,416,594 12,692,992,379 18,639,880,000
12,786,649,626 18,846,956,594 12,692,992,379 18,640,420,000
26.1 Debentures
On 18 November 2015 Company issued fifty million (50,000,000) rated senior unsecured redeemable debentures to the value of Rupees five billion (LKR
5,000,000,000). These debentures are listed in the Colombo Stock Exchange.
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Balance at the beginning of the year 560,000 1,590,000 560,000 1,590,000

Repayments during the year (20,000) (1,030,000) (20,000) (1,030,000)
Balance at the end of the year 540,000 560,000 540,000 560,000
Interest payable 21,857 21,857 21,857 21,857
Carrying value as at the end of the year 561,857 581,857 561,857 581,857
Debenture payable within one year 561,857 41,857 561,857 41,857

Debenture payable after one year - 540,000 - 540,000
561,857 581,857 561,857 581,857
Details regarding the listed debentures are as follows.
Instrument type Type 01 Type 02 Type 03 Type 04
Issue Date 18-Nov-2015 18-Nov-2015 18-Nov-2015 18-Nov-2015

Maturity Date 18-Nov-2020 18-Nov-2021 18-Nov-2022 18-Nov-2023
Interest Frequency Semi-Annually Semi-Annually Semi-Annually Semi-Annually
Coupon rate % 10.25 10.45 10.72 10.95
Effective Annual Yield % 10.51 10.72 11.01 11.25
IROCGS* as at reporting date % 26.76 25.05 24.85 24.65
Market Values
Highest Rs. Not traded
Lowest Rs. Not traded
Matured and fully paid
Last traded Rs. Not traded
Last traded date Not traded
Other ratios as at date of last trade

Interest yield (%) N/A
Matured and fully paid
Yield to maturity (%) N/A
* Interest rate of comparable Government Securities
The total amount raised through the Debenture issued in November 2015 was LKR 5 Bn. Type 01 of the debenture issue, amounting to LKR 4.998 Bn, Type
02 of the debenture issue, amounting to LKR 1 Mn and Type 03 of the debenture issue, amounting to LKR 0.02 Mn matured and fully paid in November
2020,November 2021 and November 2022 respectively. The outstanding capital as of date is LKR. 540,000.
Debt security related ratios
Company
For the year ended / as at 31 March 2023 2022
Debt to equity ratio (%) 62 89

Quick assets ratio (times) 1.09 1.64
Interest cover (times) 1.49 3.96
Utilization of funds raised via debenture issue is as follows.
Objective Construction of Access Tower II Urban Regeneration Project - Design and Construction of
at Union Place, Colombo 02 941 Housing Units at Henamulla, Colombo 15
Amount allocated from proceeds in LKR (Mn) (A) 2,586 2,414

Amount utilized in LKR (Mn) (B) 2,586 2,414
% Utilization against allocation (B/A) 100% 100%
26.2 Term loan
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Balance at the beginning of the Year 23,046,292,005 8,961,539,620 21,761,878,248 8,058,004,976

Obtained during the year 14,991,946,368 42,173,992,817 13,501,923,826 32,863,360,000
Repayment during the year (21,799,972,193) (28,089,240,432) (20,024,123,146) (19,159,486,728)
Balance at the end of the Year 16,238,266,180 23,046,292,005 15,239,678,928 21,761,878,248
Loan payable within one year 3,451,616,554 4,199,875,411 2,546,686,549 3,121,998,248

Loan payable after one year 12,786,649,626 18,846,416,594 12,692,992,379 18,639,880,000
16,238,266,180 23,046,292,005 15,239,678,928 21,761,878,248
26.3 Analysis of loans and borrowings
Company Name Lending Nature of Interest rate Maturity Currency Loan 2023 2022
institution the facility and security value
LKR Mn. LKR Mn. LKR Mn.
Company
Access Engineering PLC Seylan Bank Limited Short term loans Weekly re-price - Unsecured 12 Months LKR 875 - 878.85
Long term loans Monthly Re- Price - Unsecured 48 Months LKR 3,500 3,107.77 2,634.66
National Short term loans Monthly Re- Price - Unsecured 12 Months LKR 350 - -
Development Bank Long term loans Fixed rate -Unsecured 48 Months LKR 1,000 466.45 1,000
Monthly Re- Price - Unsecured 60 Months LKR 500 - -
Commercial Bank of Short term loans Monthly Re- Price- Unsecured 12 Months LKR 1,600 72.43 1,604.85
Ceylon PLC Long term loans Fixed rate - Unsecured 48 Months LKR 7,900 7,122.36 7,166.38
Bank of Ceylon Short term loans Monthly Re- Price 12 Months LKR 450 1,309.10 450.07
Long term loans Fixed rate 36 Months LKR 4,880 183.82 3,998.91
Fixed rate 18 Months USD 1,469 - 1,471.14
Hatton National Short term loans Weekly AWPLR 12 Months LKR 275 4.55 276.38
Bank PLC Long term loans 48 Months LKR 1,700 1,812.61 1,704.34
Nations Trust Bank Short term loans AWPLR +.25% 12 Months LKR 500 405.85 500.80
Sampath Bank Short term loans Monthly AWPLR 12 Months LKR 1,075 501.36 75.44
Cargills Bank Short term loans Monthly AWPLR 12 Months LKR 500 253.37
Group
Access Projects (Private) Commercial Bank loan AWPLR plus margin 60 Months 200 170.07 183.35
Limited Bank of Ceylon PLC Unsecured
Bank loan AWPLR plus margin - Unsecured 3 Months 401.7 49.80 154.75
Bank loan Fixed rate - Unsecured 36 Months 12 2.33 5.99
Sathosa Motors PLC Sampath Bank PLC Revolving short term Market rate over AWPLR - 03 Months 34 10 -
loans Unsecured
Commercial Bank of Revolving short term Market rate over AWPLR 03 Month 680 680 737.00
Ceylon PLC loans
Term Loan 60 Month 100.00 75 60.00
Import loan Market rate over AWPLR 01 Month 33.95 - 24.95
Import loan Market rate over AWPLR 03 Month 97.22 - 97.22
Lanka AAC (Private) Sampath Bank PLC Long term loans Fixed Rate - Unsecured 60 Months 72 11.24 18.75
Limited Short term loans Fixed Rate - Unsecured 12 Months 5.28 - 0.28
Long term loans Fixed Rate - Unsecured 24 Months 13.71 0.16 2
GRI 201-4
27. EMPLOYEE BENEFIT LIABILITIES

Accounting policy
Short-term employee benefits Defined benefit plans Defined benefit plan liability has not been
Short term employee benefits are expected The liability recognized in the Statement of externally funded by the Company as well as
as the related service is provided. A liability is Financial Position in respect of defined benefit subsidiaries of the Group.
recognized for the amount expected to be paid plan is the present value of defined benefit
if the Group has a present legal or constructive obligation at the reporting date. The defined When the benefits of a plan are changed or
obligation to pay this amount as a result of benefit obligation is calculated annually by when a plan is curtailed, the resulting change
past service provided by the employee and the independent actuaries using Projected Unit in benefits that relates to past service or the
obligation can be estimated reliably. Credit (PUC) method as recommended by LKAS gain or loss on curtailment is recognized
19 - 'Employee Benefits'. Remeasurements, immediately in profit or loss. The Group
Defined contribution plans-Employees comprising of actuarial gains and losses, are recognizes gain or losses on the settlement of a
Provident Fund and Employees Trust Fund recognised immediately in the statement of defined plan when the settlement occurs.
A defined contribution plan is a post- financial position with a corresponding debit or
employment benefit plan under which an credit to retained earnings through OCI in the However, according to the Payment of Gratuity
entity pays a fixed contribution to a separate period in which they occur. Remeasurements Act No. 12 of 1983, the liability for gratuity
entity and will have no legal or constructive are not reclassified to profit or loss in subsequent payment to an employee arises only after the
obligation to pay further amounts. periods. The Group recognises the changes in completion of five years of continued service.
the defined benefit liability attributable to the
All employees who are eligible for Employees’ service costs (current service costs and any past The following table shows a reconciliation from
Provident Fund Contributions and Employees’ service costs) and interest expense in the profit the opening balances to the closing balances
Trust Fund Contributions are covered by or loss. Key assumptions used in determining for the net defined benefit liability.
relevant contributions funds in line with the the defined benefit obligation are given in note
relevant statutes. Employer’s contributions to 27.2.
the defined contribution plans are recognized
as an expense in profit or loss when incurred
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR

Current service cost 33,219,839 57,406,239 29,705,633 46,431,546
Interest cost 48,853,645 38,176,192 37,612,893 29,031,945
Past service cost - (38,405,968) - (34,567,057)
Actuarial losses / (gain) (58,637,124) (125,237,627) (46,697,984) (112,046,294)
346,948,062 358,099,948 263,284,368 262,550,656
Less: Payments made during the year (85,968,994) (34,588,246) (66,630,930) (19,886,830)
27.1 Expense recognised in Statement of Profit or Loss and Other Comprehensive Income
Group Company
As at 31 March Note 2023 2022 2023 2022
LKR LKR LKR LKR
Current service cost 33,219,839 57,406,239 29,705,633 46,431,546

Interest cost 48,853,645 38,176,192 37,612,893 29,031,945
Past service cost - (38,405,968) - (34,567,057)
Expense Recognised in Statement of Profit or Loss 27.1.1 82,073,484 57,176,463 67,318,526 40,896,434
Actuarial losses recognised in other comprehensive income (58,637,124) (125,237,627) (46,697,984) (112,046,294)
Total provision for the year 23,436,360 (68,061,164) 20,620,542 (71,149,860)
The actuarial present value of the Group's and Company's promised retirement benefits as at 31st March 2023 amounted to LKR 260,979,068/= and
196,653,438/= respectively.
27.1.1 Expenses recognised in Statement of Profit or Loss
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Cost of sales 45,067,228 32,291,834 48,335,561 27,806,192

Administrative expenses 37,006,256 24,884,629 18,982,965 13,090,242
82,073,484 57,176,463 67,318,526 40,896,434
27.2 Key assumptions and quantitative 27.3 Company

sensitivity analysis
An independent actuarial valuation of the retirement benefit obligation was carried out as at 31
The cost of the defined benefit plan are March 2023 by professional actuaries - Messrs K.A.Pandit, Professional Consultants and Actuaries.
determined using actuarial valuations and it
involves making various assumptions. These The valuation method used by the Actuaries to value the Retirement Benefit Obligation is the
include the determination of the discount "Projected Unit Credit Method". The method recommended by the LKAS 19- 'Employee Benefits'.
rate, future salary increases, attrition rate and
retirement age (mortality in service). Due to the The principal assumptions used in determining the cost of employee benefits were:
complexities involved in the valuation and its
long-term nature, a defined benefit obligation 2023 2022
is highly sensitive to changes in these
assumptions. All assumptions are reviewed at Discount rate (%) 17.5 15.5
each reporting date.
Expected annual average salary increment rate (%) 9.00 9.00
The key assumptions and their sensitivity Attrition rate (%) 5 3
analyses are discussed further below. Retirement age (years) 60 60
The Company has considered the impact on the defined benefit obligations due to changes in
economic factors as a result of the prevailing macroeconomic conditions, with support of the
independent actuarial expert.
Discount rate Attrition rate b. Other Subsidiaries

The Company have used a long term Based on the actual staff turnover of the Employee Benefit liabilities of other subsidiaries
interest rate of 17.5% p.a (2021/22-15.5% Company over the past few years, Company have been calculated applying the "Projected
p.a) to discount future liabilities. As per the has used staff turnover factor of 5% p.a to value Unit Credit method" recommended by LKAS
guidelines issued by the Institute of Chartered future liabilities. 19, "Employee Benefits".
Accountants of Sri Lanka, the discount rates
27.4 Group
have been adjusted to convert the coupon The principal assumptions used in determining
bearing yield to a zerocoupon yield to match a. Sathosa Motors PLC the employee benefits obligation were:
the characteristics of the gratuity payment An actuarial valuation of the provision for
liability and the resulting yield to maturity employee benefits was carried out as at 31
2023 2022
for the purpose of valuing Employee benefit March 2023 by Actuarial & Management
obligations as per LKAS 19 'Employee Benefits'. Consultants (Private) Limited. The valuation
Discount rate (%) 17% - 20% 13% - 16%
method used by the Actuaries to value
Expected annual average salary increment rate the Employee Benefit Obligation is the Expected annual
Based on the actual salary increment rate of "Projected Unit Credit Method". The method average salary
the Company over the past few years and recommended by the LKAS 19- 'Employee increment rate (%) 8% - 12% 5% - 10%
having evaluated the business continuity plan, Benefits'. Attrition rate (%) 12% - 46% 3%-00%
adjustments have not been made to expected
Retirement age
annual average salary increment rate, to value
(years) 60 60
future liabilities.
27.5 Sensitivity of assumptions used

A quantitative sensitivity analysis for significant assumptions as at 31 March is, as shown below:
Group Company
2023 2022 2023 2022
LKR LKR LKR LKR
Effect on the defined benefit obligation liability;

Increase by one percentage point in discount rate 18,141,636 (21,723,957) (10,563,082) (17,783,169)
Decrease by one percentage point in discount rate 46,198,004 24,543,978 11,768,062 20,388,435
Increase by one percentage point in salary increment rate 46,229,273 25,670,617 12,618,956 21,484,936
Decrease by one percentage point in salary increment rate 17,313,045 (22,955,089) (11,440,035) (18,932,231)
The sensitivity analyses above have been determined based on a method that extrapolates the impact on the defined benefit obligation as a result
of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analyses are based on a change in a significant
assumption, keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit
obligation as it is unlikely that changes in assumptions would occur in isolation of one another.
27.6 Future expected contributions to the defined benefit plans

The following payments are expected contributions to the employee benefit obligation in future years:
Company
2023 2022
LKR LKR
Within the next 12 months (next annual reporting period) 23,963,487 26,076,596
Between 1 and 2 years 19,676,229 14,324,798
Total expected payments 311,973,874 296,426,699
Weighted average duration of the projected benefit obligation (years) 10 10
28. TRADE AND OTHER PAYABLES

Accounting policy
Trade payables are the aggregate amount of obligation to suppliers for goods delivered to or services consumed by the Group in the ordinary course of
business. Trade payables are classified as current liabilities if they are payable within one year or less.
Trade payables are recognized initially at fair value and subsequently measured at amortised cost using the effective interest method.
Trade and other payables are normally none interest bearing liabilities.
Group Company
As at 31 March Note 2023 2022 2023 2022
LKR LKR LKR LKR
Trade creditors 6,916,658,335 9,044,960,393 6,227,734,533 8,415,686,787

Other tax payable 16,208,049 15,608,979 - -
Accrued expenses 3,641,339,832 2,631,622,294 908,010,217 1,084,432,788
Mobilization advance 4,018,822,706 4,283,522,513 3,012,758,061 3,035,183,716
Advances received 9,743,537,310 7,462,395,047 1,175,174,466 624,012,222
Retention payable 924,825,707 985,497,302 474,603,501 634,913,253
Security deposit 521,211,540 466,392,125 - -
Contract liability 28.1 313,211,395 271,710,514 313,211,395 271,710,514
26,095,814,875 25,161,709,167 12,111,492,173 14,065,939,280
28.1 Contract liability
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR

During the year addition 167,655,968 139,071,496 167,655,968 139,071,496
Recognised in profit or loss during the year (126,155,087) (61,804,785) (126,155,087) (61,804,785)
29. RELATED PARTY DISCLOSURE

Accounting policy
The Company carried out transactions in the ordinary course of its business with parties who are defined as related parties as per Sri Lanka Accounting
Standard LKAS 24 on Related Party Disclosures.
29.1 Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at
the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party
receivables or payables. For the year ended 31 March 2023.
Disclosure as per the requirement of Colombo Stock Exchange listing rule sec 9.3.2 and Code of Best Practices on Related Party Transactions, under
the Security Exchange Commission Directives issues under Section 13 (C) of the Security Exchange Commission Act is on page no 164 - Related Party
Transaction Review Committee Report.
The following tables provide the amount receivable from/to and summary of the transactions entered with related parties for the relevant financial years.
29.2. Amounts due from related parties
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Access International (Private) Limited 6,997,029 3,778,364 2,324,747 2,984,220

Access Civimech (Private) Limited - 1,432 - -
Access International Projects (Private) Limited 3,941,857 4,474,123 - 486,000
Access Industrial Systems (Private) Limited 13,180 - 13,180 -
ATSL International (Private)Limited 34,268 - 34,268 -
Sathosa Motors PLC - - 45,836,875 63,244,060
Harbour Village (Private) Limited - - 344,418,378 1,034,104
Access Motors (Private) Limited - - 7,790,127 -
Access Projects (Private) Limited - - 621,969 4,173,348
Access Transport & Services (Pvt) Ltd 2,619,512 - - -
Access Real Estate (Private) Limited 190,199 24,873 - -
ZPMC Lanka (Private) Limited 103,778 60,309 - 17,052
Access Realties II (Private) Limited - - - 265
Access Realties ( Private ) Limited - - 242,784 187,572
Access Residencies Pvt Ltd 44,203 - - -
Reprographics (Pvt) Ltd 13,180 - 13,180 -
WUS Logistics (Private) Limited - - 168,187,916 168,227,916
Lanka A A C (Private) Limited - - 15,427,279 13,769,712
Access Logistics (Private) Limited - - 27,128,819 1,693,420
Access Logistics Park Ekala (Private) Limited - - 3,467,457,413 90,048,696
AEL East Africa Limited - - 5,081,375 5,081,375
Foresight Engineering (Pvt) Ltd 3,558,734 - - -
Access-CHEC JV (Pvt) Limited 64,722,563 - 64,722,563 -
82,238,504 8,339,101 4,149,300,873 350,947,740
Less -Provision for Impairment of Receivables - - (5,081,375) -
82,238,504 8,339,101 4,144,219,498 350,947,740
29.3 Amounts due to related parties
Group Company
As at 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Access International (Private) Limited 59,694,368 12,972,059 49,959,219 9,376,869

Access Natural Water (Private) Limited 517,351 773,399 262,032 581,447
Access International Projects (Private) Limited 5,138,399 10,003,966 1,702,936 6,568,503
Reprographics (Private) Limited 516,323 396,274 488,608 334,029
Access Motors (Private) Limited - - 2,179,189 2,169,578
Access Projects (Private) Limited - - 780,230 168,984
Sathosa Motors PLC - - 786,555 23,287,203
Access Realties (Private) Limited - - 46,224,222 -
Access Realties II (Private) Limited - - 344,614 -
Access Industrial Systems (Private) Limited 4,867,224 910,815 3,776,821 570
Access Lifestyle (Private) Limited - 38,783 - -
W U S Logistics (Pvt) Ltd - - 97,233,381 97,233,381
Lanka A A C (Private) Limited - - 4,642,647 4,952,001
Access Logisitics Park Ekala (Private) Limited - - 20,453,540 -
AEL East Africa Limited - - 255,558 255,558
Access-CHEC JV (Private) Limited - 46,370,383 - 46,370,383
70,733,664 71,465,679 229,089,551 191,298,506
29.4 Transactions with related parties

The following table provides the total amount of transactions that have been entered into with related parties.
Group Company
For the year ended 31 March 2023 2022 2023 2022
LKR LKR LKR LKR
Subsidiaries
Sales of goods / rendering of services - - 2,737,904,987 293,933,312
Purchases of goods / receiving of services - - (321,360,758) (199,990,621)
Dividend received - - 577,776,117 503,804,781
Investment in shares - - (5,955,929,990) (3,743,420,408)
Advance to share capital - - (973,042,160) -
Equity accounted investees

Sales of goods / rendering of services - 8,178,514 - -
Investment in shares - - - -
Interest paid (53,530,899) - (53,530,899)
Dividend received 1,079,461,615 479,760,718 1,079,461,615 479,760,718
Other related party companies

Sales of goods / rendering of services 243,400,090 33,491,637 217,531,793 7,447,321
Purchases of goods / receiving of services (202,305,909) (236,794,629) (76,557,646) (191,607,222)
Investment in shares - (510,000) - (510,000)
29.5 Key management personnel of Access Engineering PLC hold positions in other Companies. Such companies the Group had
transactions with are identified below.
Company Name Company (AEL)

S. J. S. J.C. R.J.S. S.D. D.A.R. S.H.S. S.D. Shamal
Perera Joshua Gomez Perera Fernando Mendis Munasinghe J.S. Perera
Subsidiaries
Access Realties (Private) Limited √ √ √ √ √ √ √
Access Realties 2 (Private) Limited √ √ √ √ √ √
A R L Elevate (Private) Limited √ √ √ √ √ √
Sathosa Motors PLC √ √ √ √
Access Motors (Private) limited √ √
Access Projects (Private) Limited √ √
Harbour Village (Private) Limited √ √ √ √
WUS Logistics (Private) Limited √ √ √
Lanka A A C (Private) Limited √ √ √
Access Logistics (Private) Limited √ √ √
Access Logistics Park Ekala (Private) Limited √ √ √
AEL East Africa Limited √ √ √ √
Associate
ZPMC Lanka Company (Private) limited √ √
Joint Venture
Blue Star Realties (Private) Limited √
Other Related Party Companies

Access International (Private) Limited √ √ √ √ √ √ √ √
Access Natural Water (Private) Limited √ √ √ √
Access Civimech (Private) Limited √ √ √
Access Industrial Systems (Private) Limited √ √ √
Access International Projects (Private) Limited √ √ √
C.R.D.S. Development (Private) Limited √ √ √ √
Reprographics (Private) Limited √ √ √
ATSL International (Private)Limited √ √ √
Access-CHEC JV (Private) Limited √ √
GRI 2-21
29.6 Transactions, arrangements and agreements involving key management personal (KMP) and their close family members (CFM)
According to LKAS 24 “Related Party Disclosures”, Key Management Personnel are those having authority and responsibility for planning, directing and
controlling the activities of the entity. Accordingly Board of Directors (including Executive and Non -Executive Directors ) have been classified as key
Management Personnel of the Group.
Close Family Members (CFM) of the KMP are those family members who may be expected to influence, or be influenced by, that KMPs in their dealing
with the entity. They may include;
(a) the KMP’s domestic partner and children;
(b) children of the KMP’s domestic partner; and
(c) dependents of the KMP or the KMP’s domestic partner
CFM are related parties to the entity. There were no material transactions with CFM during the year.
A. Directors’ Loan
No loans have been given to the Directors of the Company.
B. Compensation of Key Management Personnel of the Group
Group Company
LKR LKR LKR LKR
Short-term employee benefits 8 93,804,125 120,209,192 41,159,375 68,125,000

Total compensation paid to key management personnel 93,804,125 120,209,192 41,159,375 68,125,000
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to Key Management Personnel.
30. PROVISIONS, COMMITMENTS The commitments and contingent liability of W.U.S Logistics (Pvt) Ltd and Access
AND CONTINGENCIES the Group and the Company as at 31 March Engineering PLC (Defendant-Petitioners ) filed
Accounting policy 2023, relates to the following; the application Supreme Court Case No. SC/HC/
LA/52/2021 seeking inter alia Leave to Appeal
Provisions are recognized when the Group/ against the order dated 29 July 2021 delivered
30.1 Disclosure - Company
Company has a present obligation (legal Commercial High Court in Case bearing No.
or constructive) as a result of a past event, 30.1.1 Legal claim contingency
CHC/43/2021/MR.Judgement entered on 9
it is probable that an outflow of resources 30.1.1.1 Legal Cases filed against the Company
May 2023 varying the order of the commercial
embodying economic benefits will be required Case No : CHC 706/ 2010/ MR high court dated 29 July,2021 delivered in
to settle the obligation and a reliable estimate CHC/43/2021/ MR, by restricting the interim
can be made of the amount of the obligation. The case of money recovery filed against three
defendants (2nd defendant: Access Engineering relief to that as prayed for in paragraph g(i) of
When the Group expects some or all of a the prayer to the Plaint and setting aside the
provision to be reimbursed the reimbursement PLC) claiming LKR. 17.69 Mn together with
interest against the three defendants jointly interim injunctions granted by the commercial
is recognised as a separate asset when the high court in terms of prayers g(ii)-(iv) and j(i)-
reimbursement is virtually certain. The expense and/or severally for non payment of material
supplied and invoiced by the Plaintiff. This (v) of the Plaint.
relating to provision is presented in income
statement net of any reimbursement. matter was trial on 12 September 2023.
Case No : DMR 2774/20
If the effect of the time value of money is Case No :DLM 136/ 2018 The case of money recovery against four
material, provisions are discounted using A case was filed against the Access Engineering defendants (3rd defendant Access Engineering
a current pre-tax rate that reflects, when PLC claiming inter alia damages amounting PLC) filed to claim LKR.7.5Mn against the
appropriate, the risks specific to the liability. LKR. 17.5 Mn and interim relief preventing the Defendants jointly and/or severally in the
When discounting is used, the increase in construction on the property. This matter was District Court of Kandy claiming damages for
the provision due to the passage of time is trial on 9 October 2023. the death of the husband of the Plaintiff by
recognised as a finance cost. an Accident which took place in Kandy. This
Case No : DSP 297/ 2019 matter is fixed for pre-trial on 22 September
Provisions are calculated based on the 2023.
A case was filed against the two defendants
historical experience and the specific terms in (2nd defendant: Access Engineering PLC) Case No : LT 2/1080/21
the individual cases. The Group arrives at an claiming LKR. 50 Mn in respect of and interim
estimate on the basis of an evaluation of the relief preventing the construction on the A Labour Tribunal case filed against the
most likely outcome. property. This matter was re-fixed for Pre-Trial Company for the termination of employment
on 9 October 2023. while he is guilty for misconduct, claiming for
All known provisions have been accounted for employment / Compensation. The matter was
in preparing the Financial Statements. Case No : DSP 298/ 2019 re-fixed on 14 September 2023.
Contingent liabilities are possible obligations Special matter was filed against the two Case No : LT 03/07/2021
whose existence will be confirmed only by defendants (2nd defendant: Access Engineering
PLC) claiming of LKR 50 Mn in respect of and A Labour Tribunal case filed against the
uncertain future events or present obligations Company for the termination of employment
where the transfer of economic benefit is interim relief preventing the construction on
the property. This matter was re-fixed for Pre- while he is guilty for misconduct, to appoint
not probable or cannot be readily measured. an Arbitrator. Judgment is delivered on 15 May
Contingent liabilities are not recognised in the Trial on 9 October 2023.
2023, Application of the applicant is dismissed
statement of financial position but disclosed without cost .
Case No : CHC/ 43/ 2021/ MR
as a note to the financial statements unless
the outflow of resources is remote. Contingent A case has been filled against two defendants Based on the information currently available,
assets are disclosed, where inflow of economic [1st defendant: Access Engineering PLC, 2nd the directors believe that the ultimate
benefit is probable. defendant: W.U.S Logistics (Pvt) Ltd.] seeking resolution of above all lawsuits are not likely
declaratory relief to the effect that, the offer to have a material effect on the results of
Currently the Group/ Company is involved made by the plaintiff for the buyback of the operations, financial position or liquidity of the
in pending litigations and claims arising shares in the 2nd Defendant is valid and Company.
out of the normal conduct of the business. reasonable; and the 1st Defendant is liable to
The Group/ Company does not expect the transfer the shares to the Plaintiffs at the price
pending litigations and claims, individually offered; The Court fixed the Pre-Trial hearing
and in aggregate, to have a material impact inquiry into the application under section 183B
on Group’s Financial Position, operating profit on 16 October 2023.
or cash flow in addition to amounts accrued as
provision for legal disputes.
30.1.1.2 Legal Cases filed by the Company Case No : DSP 174/2022 30.1.2 Guarantees
Case No : 12362/ 19, 12363/ 19 and 12364/19 This case filed by Access Engineering PLC Bank guarantees issued by the banks on behalf
The Accused has been charged for fraudulently against 3 Defendants for a claim of bank of the Company are as follows;
drawing cheques with the knowledge of that guarantee amount of LKR. 6 Mn. This case was
there are no money in account sum of LKR. filed inter- alia for declaratory relief to the Bank Amount
3.6 Mn. The accused was pleaded guilty and effect that the 01st defendant has no right LKR
agreed to settle the payment in 39 instalments. to claim under the bank guarantee for the
Defendant has failed to pay due installment construction of Pethiyagoda pump house and Nations Trust Bank PLC 17,752,513
of LKR 100,000/= and areas four installments seeking an injunction ,enjoining order against Hatton National Bank PLC 436,312,430
amounting LKR 350,000/=.Court fix this matter the 02nd Defendants to prevent the said 2nd
Defendants from paying the Guarantee value. Bank of Ceylon 999,473,032
for payment on 13 September 2023. The Hon.
Order is delivered infavour of defendant. An People's Bank 2,177,369,580
Judge issued warrant on the accused.
application for leave to appeal against the National Development Bank PLC 624,189,796
Case No : CHC/ 216/ 2020/ MR order dated 09 May 2023 of the Case No.DSP
Commercial Bank of Ceylon PLC 492,905,657
174/2022 was filed in the Registry of the High
Access Engineering PLC claims judgement and court of Civil Appeal of the Western Province Cargills Bank Limited 685,601,198
decree against the Defendant in a total sum on 10 May 2023.(Civil Appellate High court Sampath Bank PLC 468,734,156
of LKR 28.33 Mn together with legal interest Case No. WP HCCA LA 70/23 ). Seylan Bank PLC 2,669,390,582
thereon on returned cheques. The claim is
made under chapter LIII of the civil procedure DFCC Bank PLC 264,740,000
Case No:WP HCCA LA 70/23
code. The court scheduled the case on 23 8,836,468,944
August, 2023 to deliver the order. Having heard the submissions of the counsel,
their Lordships decided to grant Leave in the Corporate guarantees issued by the company
Case No : DMR/ 2502/ 2021 aforesaid matter. Further they issued interim on behalf of Access Projects (Private) Limited,
orders as prayed for the Petition. This matter Sathosa Motors PLC and Harbour Village
The Company has filed a case against was fixed for argument on 15 February 2024. (Private) Limited, for banking facilities are
defendant to claim in a sum of LKR 16.1 Mn
LKR 250Mn, LKR 500Mn and LKR 300Mn
together with an additional sum equivalent to Case No : CA Tax 23/2022 respectively.
the market value of Bitumen 60/70 drums with
legal interest, in a sum of LKR. 3.87 Mn together This case filed by Access Engineering PLC
against the defendant for dissatisfied with the 30.1.3 Tax Assessments
with further damages at the rate of LKR 6,059
per day, until such date the said 1313 Bitumen determination of the Tax Appeals Commission Value added Tax Assessment Received for
60/70 drums are returned to the Plaintiff in dated 07 April 2022.Matter was fixed for the taxable period 1 December 2016 to 31
argument on 5 September 2023. December 2016
good order and condition, as an alternative
to prayer (a), for return of 1313 bitumen 60/70 The Department of Inland Revenue has
Case No : 6362 M
drums in good order and condition. This matter raised an assessment of value added tax for
is fixed for pre-trial on 1 September 2023. The money recovery case was filed by Access the taxable period 01.12.2016 to 31.12.2016,
Engineering PLC against two defendants for a assessing tax credit notes when calculating
Case No : CHC/ 44/ 2019/ MR money recovery actions claiming LKR. 3.9 Mn the output tax to pay value added tax LKR.
The case of money recovery by Access against defendants for the equipment rented 2,504,622/-. The Company has filed valid appeal
Engineering PLC against two defendants for out. On 9 June 2023 the term of settlement against this assessment. The commissioner
a claim of LKR 68.7 Mn on account of work formally recorded. Plaintiff shall pay LKR. 3.4 Mn general determination received infavor of
completed and LKR 9.1 Mn on account of on or before the last working day of June 2026. IRD, Company has filed a appeal to tax appeal
finance charge upto 30 September 2018 legal commission and determination is pending.
Case No :CHC/ 85/ 2022/ MR
interest charge on aggregate of the above
cases from 1 October 2018 is made against This case filed by Access Engineering PLC The directors are confident that ultimate
defendants. The case is to be called on 8 against the defendant claiming LKR 59 Mn resolution would be in favour of the Company
September 2023. and LKR 151 Mn of insurance made for losses and there will not have material adverse impact
incurred due to the leakage in diaphragm wall on the Financial statement of the Company on
constructed at Odel Shopping Mall Project. The above tax assessments.
case trial to commence on 8 December 2023.
30.2 Disclosure - Group 31. EVENTS AFTER THE REPORTING

Sathosa Motors PLC PERIOD
Corporate Guarantee There have been no material events after the
reporting date which would have any require
Corporate guarantee issued by Sathosa Motors PLC on behalf of Access Motors (Private) Limited is
adjustments to, or disclose in the Financial
LKR 75 Mn and USD 125,000.
Statements.
Bank Guarantees
Bank guarantees issued by the banks to Access Projects (Private) Limited's customers are as follows;
Bank Letter of credit/import documents Performance bid and Total

against acceptance facility retention bonds
LKR LKR LKR
Commercial Bank PLC 1,000,466 1,258,012,254 1,259,012,720
32. GROUP INFORMATION

Company
Access Engineering PLC (AEL) is primarily involved in the business of construction activities and supply of construction-related services and materials.
Subsidiaries and equity accounted investees

The consolidated financial statements of the Group include :
% of Equity interest
Name Principle Activities Country of 2023 2022
incorporation
Access Realties (Private) Limited Commercial property development for Lease and rental Sri Lanka 100 100
Access Realties 2 (Private) Limited Commercial property development for Lease and rental Sri Lanka 100 100
ARL Elevate (Private) Limited Provision for conference, restaurant and support facilities for Access Towers Sri Lanka 100 100
Sathosa Motors PLC Authorized distributor for ISUZU brand vehicles in Sri Lanka Sri Lanka 84.42 84.42
Access Motors (Private) Limited Authorized distributor for Jaguar and Land Rover in Sri Lanka Sri Lanka 42.21 42.21
Access Projects (Private) Limited Construction and supply of construction related services and materials Sri Lanka 80 80
Harbour Village (Private) Limited Residential and commercial property development Sri Lanka 66.67 66.67
WUS Logistics (Private) Limited Commercial property development for Lease and rental Sri Lanka 100 100
Access Logistics (Private) Limited Commercial property development for Lease and rental Sri Lanka 100 100
Lanka AAC (Private) Limited Supply of construction related materials Sri Lanka 50 50
Access Logistics Park Ekala (Private) Commercial property development for Lease and rental Sri Lanka 100 100
Limited
AEL East Africa Limited Construction activities Republic of 100 100
Kenya
ZPMC Lanka Company (Private) Commission, repair and maintenance of port machinery Sri Lanka 30 30
Limited
Blue Star Realties (Private) Limited Residential property development Sri Lanka 60 60
During the year investments of subsidiaries are disclosed in Note 33.1 in the Financial Statements.
There are no other significant changes in the nature of the principal business activities of the Group or Company during the financial year under review.
Description of the nature of operations and principal activities of the Company, its subsidiaries and equity-accounted investees are described in more
detail in the
33. BUSINESS COMBINATIONS Otherwise, other contingent consideration is Subsidiaries that are consolidated have been
remeasured at fair value at each reporting date listed in the Note 15. The following company,
This section provides additional information
and subsequent changes in the fair value of with equity control equal to 50%, have been
on how changes in the Group structure has
the contingent consideration are recognised in consolidated as subsidiaries based on above
impacted the financial position and financial
profit or loss. criteria.
performance of the Group as a whole and
significant events that have occurred during If share-based payment awards (replacement Company % Holding
the year impacting the financial performance awards) are required to be exchanged for awards
and position of the Group. held by the acquiree’s employees (acquiree’s
Lanka AAC (Private) Limited 50%
awards), then all or a portion of the amount of
Business combinations
the acquirer’s replacement awards is included Non-controlling interests
The Group accounts for business combinations in measuring the consideration transferred in
using the acquisition method when the NCI are measured initially at their proportionate
the business combination. This determination
acquired set of activities and assets meets share of the acquiree’s identifiable net assets at
is based on the market-based measure of the
the definition of a business and control is the date of acquisition.
replacement awards compared with the market-
transferred to the Group. In determining based measure of the acquiree’s awards and the Changes in the Group’s interest in a subsidiary
whether a particular set of activities and assets extent to which the replacement awards relate that do not result in a loss of control are
is a business, the Group assesses whether the to pre-combination service. accounted for as equity transactions.
set of assets and activities acquired includes, at
a minimum, an input and substantive process Subsidiaries Loss of control
and whether the acquired set has the ability to Subsidiaries are entities controlled by the When the Group loses control over a subsidiary,
produce outputs. Group. The Group ‘controls’ an entity when it it derecognises the assets and liabilities of the
is exposed to, or has rights to, variable returns subsidiary, and any related NCI and other
The Group has an option to apply a from its involvement with the entity and has components of equity. Any resulting gain or
'concentration test' that permits a simplified the ability to affect those returns through its loss is recognised in profit or loss. Any interest
assessment of whether an acquired set of power over the entity. The financial statements retained in the former subsidiary is measured at
activities and assets is not a business. The of subsidiaries are included in the consolidated fair value when control is lost.
optional concentration test is met if subsidiary financial statements from the date on which
all of the fair value of the gross assets acquired control commences until the date on which Interests in equity-accounted investees
is concentrated in a single identifiable asset or control ceases. The Group’s interests in equity-accounted
group of similar identifiable assets.
investees comprise interests in associates and
Consolidation of entities in which the Group
The consideration transferred in the acquisition holds less than/ equal voting rights a joint venture.
is generally measured at fair value, as are the
When the Group has less than a majority of the Associates are those entities in which the Group
identifiable net assets acquired. Any goodwill
voting or similar rights of an investee, the Group has significant influence, but not control or
that arises is tested annually for impairment.
considers all relevant facts and circumstances joint control, over the financial and operating
Any gain on a bargain purchase is recognised
in assessing whether it has power over an policies. A joint venture is an arrangement in
in profit or loss immediately. Transaction costs
investee, including: which the Group has joint control, whereby
are expensed as incurred, except if related to
Ì The contractual arrangement with the the Group has rights to the net assets of the
the issue of debt or equity securities.
other vote holders of the investee; arrangement, rather than rights to its assets
The consideration transferred does not and obligations for its liabilities.
include amounts related to the settlement of Ì Rights arising from other contractual
pre-existing relationships. Such amounts are arrangements; and Interests in associates and the joint venture
generally recognised in profit or loss. are accounted for using the equity method.
Ì The Group’s voting rights and potential
They are initially recognised at cost, which
voting rights
Any contingent consideration is measured includes transaction costs. Subsequent to
at fair value at the date of acquisition. If an initial recognition, the consolidated financial
obligation to pay contingent consideration that statements include the Group’s share of the
meets the definition of a financial instrument is profit or loss and OCI of equity accounted
classified as equity, then it is not remeasured investees, until the date on which significant
and settlement is accounted for within equity. influence or joint control ceases.
Transactions eliminated on consolidation AEL East Africa Limited

Intra-group balances and transactions, and Access Engineering PLC has invested in 100% share capital of AEL East Africa Limited at a total
any unrealised income and expenses (except consideration of LKR. 255,558/- during 2021/22 period involve in Construction activities which was
for foreign currency transaction gains or incorporated in Republic of Kenya.
losses) arising from intra-group transactions,
are eliminated. Unrealised gains arising from 34. NON-CONTROLLING INTERESTS
transactions with equity-accounted investees Non- controlling interest is initially measured at their proportionate share of the acquirees identifiable
are eliminated against the investment to the net assets at the date of acquisition.
extent of the Group’s interest in the investee.
Unrealised losses are eliminated in the same The total profit and loss for the year of the Company and its subsidiaries included in consolidation
way as unrealised gains, but only to the extent are shown in the Statement of Profit or Loss and Comprehensive income with the proportion
that there is no evidence of impairment. of profit and loss after taxation pertaining to Non-controlling shareholders of subsidiaries being
deducted as “Non-controlling Interest”. All assets and liabilities of the Company and of its subsidiaries
33.1 Investments in subsidiaries 2022/23
included in consolidation are shown in the Consolidated Statement of Financial Position. The
Access Logistics (Private) Limited interest of Non- controlling shareholders of subsidiaries in the fair value of net assets of the Group
The Company has further invested LKR. is indicated separately in the consolidated statement of financial position under the heading “Non-
83,408,350/- in the share capital of its fully controlling interests”. Changes in the Group's interest in subsidiary that do not result in loss of
owned subsidiary, Access Logistics (Private) controls are accounted for as transactions with owners in their capacity as owners. Adjustments to
Limited. Cumulative value of the investment is non-controlling interests are based on proportionate amount of the net assets of the subsidiary. No
LKR. 122,964,161/- as at 31 March 2023. adjustments are made to goodwill and no gain or loss is recognized in profit or loss.
Access Logistics Park Ekala (Private) Limited Ownership interest held by Non-Controlling Interest (NCI)
The Company has further invested LKR
Principal place Operating 2023 2022
5,872,521,640/- in the share capital of its fully
of business segment
owned subsidiary, Access Logistics Park Ekala
(Private) Limited. Cumulative value of the
investment is LKR. 8,260,728,400/- as at 31 Access Projects (Private) Limited Sri Lanka Construction 20% 20%
March 2023. Sathosa Motors PLC Sri Lanka Automobile 15.58% 15.58%
33.2 Investments in subsidiaries 2021/22 Harbour Village (Private) Limited Sri Lanka Property development 33.33% 33.33%
WUS Logistics (Private) Limited Construction related
Lanka AAC (Private) Limited Sri Lanka materials 50.00% 50.00%
The Company has further invested LKR.
963,627,430/- in the share capital of its fully
owned subsidiary, WUS Logistics (Private)
Limited. Cumulative value of the investment is
LKR. 5,574,432,610/- as at 31 March 2022.

The Company has invested LKR. 39,555,800/- in
the share capital of its fully owned subsidiary,
Access Logistics (Private) Limited. Cumulative
value of the investment is LKR. 39,555,810/- as
at 31 March 2022.
Access Engineering PLC has invested in 100%
share capital of Access Logistics Park Ekala
(Private) Limited at a total consideration of LKR.
2,388,206,760/- during the 2021/22 period,
involve in Commercial property development
for Lease and rental.
The following table summaries the information relating to each of the Group's subsidiaries that has Non-Controlling interest , before any intra - group
elimination.
For the year ended 31 March 2023 Access Projects Sathosa Harbour Village Lanka AAC Total
(Private) Limited Motors PLC (Private) Limited (Private) Limited
LKR LKR LKR LKR LKR
Non-current assets 292,581,481 1,983,458,827 2,019,221,348 281,306,543 4,576,568,200

Current assets 2,098,061,289 1,601,004,392 13,126,194,882 53,187,894 16,878,448,457
Non-current liability (150,584,767) (300,956,103) (52,880,819) (11,412,991) (515,834,680)
Current liability (1,751,110,795) (1,179,649,591) (10,746,485,760) (57,370,815) (13,734,616,960)
Net asset 488,947,208 2,103,857,526 4,346,049,652 265,710,631 7,204,565,016
Net asset attributable to non controlling interest 97,789,442 735,880,987 1,448,538,349 132,855,315 2,415,064,093
Revenue 1,978,330,615 1,930,981,485 - 266,020,696 4,175,332,796
Profit / (loss) for the Year (268,142,887) (54,939,211) 59,879,418 18,136,303 (245,066,378)
Other Comprehensive Income 32,667,116 111,366 - 801,507 33,579,989
Total Comprehensive Income (235,475,771) (54,827,845) 59,879,418 18,937,809 (211,486,388)
Profit / (loss) attributable to Non Controlling Interest (53,628,577) (27,701,982) 19,957,810 9,068,151 (52,304,598)
OCI attributable to Non Controlling Interest 6,533,423 17,347 - 400,753 6,951,523
Total comprehensive income attributable to non
controlling interest (47,095,154) (27,684,635) 19,957,810 9,468,904 (45,353,075)
Cash flows from / (used in) operating activities 99,657,035 195,695,261 327,142,171 30,228,585 652,723,052
Cash flows from / (used in) investment activities (16,885,409) (25,507,482) (277,874,670) (21,601,067) (341,868,628)
Cash flows from / (used in) financing activities (121,924,979) (225,658,592) (19,932,124) (10,802,647) (378,318,342)
Net increase/ (decrease) in cash and cash equivalents (39,153,352) (55,470,813) 29,335,377 (2,175,129) (67,463,918)
For the year ended 31 March 2022 Access Projects Sathosa Harbour Village Lanka AAC Total
(Private) Limited Motors PLC (Private) Limited (Private) Limited
LKR LKR LKR LKR LKR
Non-current assets 282,639,485 2,129,960,758 1,679,125,342 283,215,585 4,374,941,170

Current assets 2,938,837,919 1,935,104,673 10,325,660,757 32,725,676 15,232,329,025
Non-current liabilities (179,294,567) (407,036,551) (80,525,745) (21,148,593) (688,005,456)
Current liabilities (2,317,759,859) (1,499,343,509) (7,638,090,128) (48,019,846) (11,503,213,342)
Net assets 724,422,978 2,158,685,371 4,286,170,226 246,772,822 7,416,051,397
Net assets attributable to non controlling interest 144,884,596 763,707,608 1,428,580,536 123,386,412 2,460,559,152
Revenue 2,568,634,016 3,193,930,622 - 136,019,345 5,898,583,983
Profit/ (loss) for the year 176,745,892 (2,497,814) 14,282,162 (2,463,623) 186,066,617
Other Comprehensive Income 1,859,493 1,102,085 - - 2,961,578
Total comprehensive income 178,605,385 (1,395,729) 14,282,162 (2,463,623) 189,028,195
Profit / (loss) attributable to Non Controlling Interest 35,349,179 (19,110,358) 4,760,245 (1,231,813) 19,767,253
OCI attributable to Non Controlling Interest 371,899 171,676 - - 543,575
Total comprehensive income attributable to non
controlling interest 35,721,078 (18,938,682) 4,760,245 (1,231,813) 20,310,828
Cash flows from /(used in) operating activities (126,414,470) 43,462,970 83,210,391 40,267,204 40,526,095
Cash flows from /(used in) investment activities (17,128,146) (24,671,670) (1,026,034,243) (54,285,937) (1,122,119,996)
Cash flows from / (used in) financing activities 331,765,641 34,339,430 (19,800,000) (58,218,193) 288,086,878
Net increase/ (decrease) in cash and cash equivalents 188,223,025 53,130,730 (962,623,852) (72,236,926) (793,507,023)
34.1 Acquisition of NCI expedient are measured at the transaction price Financial assets at amortised cost (debt
determined under SLFRS 15. instrument)
Acquisition of NCI 2022/23
The Group measures financial assets at amortised
There were no acquisition of NCI during 2022/23 Classification and measurement cost if both of the following conditions are met:

In order for a financial asset to be classified and
(a) the financial asset is held within a business
Acquisition of NCI 2021/22 measured at amortised cost or fair value through
model whose objective is to hold financial
On 15 February 2022, the company acquired OCI, it needs to give rise to cash flows that are
assets in order to collect contractual cash
additional 5.84% interest in the shares of Harbour "solely payments of principal and interest (SPPI)"
flows and
Village (Private) Limited and increased its on the principal amount outstanding. This
ownership upto 66.67% (before the acquisition assessment is referred to as the SPPI test and is (b) the contractual terms of the financial asset
the ownership is 60.83%). Cash consideration of performed at an instrument level. Financial assets give rise on specified dates to cash flows that
Rs. 351,774,850/- was paid to the non controlling with cash flows that are not SPPI are classified are solely payments of principal and interest
share holders. The carrying value of the net and measured at fair value through profit or loss, on the principal amount outstanding.
assets of the Harbour Village (Private) Limited irrespective of the business model.
was Rs. 3,099,158,510/-. Following is a schedule Financial assets at amortised cost are subsequently
of additional interest acquired in Harbour Village The Group's business model for managing measured using the effective interest (EIR)
(Private) Limited. financial assets refers to how it manages its method and are subject to impairment. Gains
financial assets in order to generate cash flows. and losses are recognised in profit or loss when
LKR The business model determines whether cash the asset is derecognised, modified or impaired.
flows will result from collecting contractual cash The Group's financial assets at amortised cost
flows, selling the financial assets, or both. Financial includes trade receivables, short term deposits
Cash consideration paid to Non -
assets classified and measured at amortised and other current financial assets.
Controlling shareholders 351,774,850
cost are held within a business model with the
Carrying value of the additional objective to hold financial assets in order to Financial Assets at fair value through OCI (debt
interest in Harbour Village (Private) collect contractual cash flows while financial instruments)
Limited (249,045,267) assets classified and measured at fair value The Group measures financial assets at fair value
through OCI are held within a business model through OCI if both of the following conditions
A decrease in equity attributable
with the objective of both holding to collect are met:
to owners of the company 102,729,583
contractual cash flows and selling.
(a) the financial asset is held within a business
35. FINANCIAL ASSETS AND Purchases or sales of financial assets that require model whose objective of both holding to
FINANCIAL LIABILITIES delivery of assets within a time frame established collect contractual cash flows and selling and
by regulation or convention in the market place (b) the contractual terms of the financial asset
A financial instrument is any contract that gives (regular way trades) are recognised on the trade
rise to a financial asset of one entity and a financial give rise on specified dates to cash flows that
date, i.e., the date that the Group commits to are solely payments of principal and interest
liability or equity instrument of another entity. purchase or sell the asset. on the principal amount outstanding.
Financial assets
Subsequent measurement
For debt instruments at fair value through OCI,
Initial recognition and measurement
For purposes of subsequent measurement, interest income, foreign exchange revaluation
Financial assets are classified, at initial recognition, financial assets are classified in to four categories and impairment losses or reversals are recognised
as subsequently measured at amortised cost, based on the entity's business model and the in the statement of profit or loss and computed
fair value through other comprehensive income cash flow characteristics: in the same manner as for financial assets
(OCI), and fair value through profit or loss. measured at amortised cost. The remaining
(a) financial assets at amortised cost;
fair value changes are recognised in OCI. Upon
The classification of financial assets at initial (b) financial assets at fair value through OCI with derecognition, the cumulative fair value change
recognition depends on the financial asset's recycling of cumulative gains and losses recognised in OCI is recycled to profit or loss
contractual cash flow characteristics and the (debt instruments);
Group's business model for managing them. Financial assets designated at fair value through
(c) Financial assets designated at fair value
With the exception of trade receivables that do OCI (equity instruments)
through OCI with no recycling of cumulative
not contain a significant financing component Upon initial recognition, the Group can elect
gains and losses upon derecognition (equity
or for which the Group has applied the practical to classify irrevocably its equity investments
instruments);
expedient, the Group initially measures a financial as equity instruments designated at fair value
asset at its fair value plus, in the case of a financial (d) financial assets at fair value through profit or through OCI when they meet the definition of
asset not at fair value through profit or loss, loss. equity under LKAS 32 Financial Instruments:
transaction costs. Trade receivables that do not Presentation and are not held for trading. The
contain a significant financing component or classification is determined on an instrument-by-
for which the Group has applied the practical instrument basis.
Gains and losses on these financial assets are Ì The Group has transferred its rights to receive For trade receivables and contract assets,
never recycled to profit or loss. Dividends are cash flows from the asset or has assumed an the Group applies a simplified approach in
recognised as other income in the statement of obligation to pay the received cash flows in full calculating ECLs. Therefore, the Group does not
profit or loss when the right of payment has been without material delay to a third party under track changes in credit risk, but instead recognises
established, except when the Group benefits a "pass-through" arrangement; and either a loss allowance based on lifetime ECLs at each
from such proceeds as a recovery of part of the (a) the Group has transferred substantially all reporting date. The Group has established a
cost of the financial asset, in which case, such the risks and rewards of the asset, or (b) the provision matrix that is based on its historical
gains are recorded in OCI. Equity instruments Group has neither transferred nor retained credit loss experience, adjusted for forward-
designated at fair value through OCI are not substantially all the risks and rewards of the looking factors specific to the debtors and the
subject to impairment assessment. asset, but has transferred control of the asset economic environment.
When the Group has transferred its rights to
Financial Assets at fair value through profit or loss Aside from this note, other disclosures relating to
receive cash flows from an asset or has entered
impairment of financial assets (trade receivables)
Financial Assets at fair value through profit or loss into a pass-through arrangement, it evaluates
are included in Note 19.
include financial assets held for trading, financial if, and to what extent, it has retained the risks
assets designated upon initial recognition at and rewards of ownership. When it has neither
fair value through profit or loss, or financial Financial liabilities
transferred nor retained substantially all of the
assets mandatorily required to be measured at risks and rewards of the asset, nor transferred Initial recognition and measurement
fair value. Financial assets are classified as held control of the asset, the Group continues to Financial liabilities are classified, at initial
for trading if they are acquired for the purpose recognise the transferred asset to the extent recognition as financial liabilities at fair value
of selling or repurchasing in the near term. of its continuing involvement. In that case, the through profit or loss, loans and borrowings,
Derivatives, including separated embedded Group also recognises an associated liability. The payables, or as derivatives designated as hedging
derivatives, are also classified as held for trading transferred asset and the associated liability are instruments in an effective hedge, as appropriate.
unless they are designated as effective hedging measured on a basis that reflects the rights and
instruments. Financial assets with cash flows obligations that the Group has retained. All financial liabilities are recognized initially at fair
that are not solely payments of principal and
value and, in the case of loans and borrowings
interest are classified and measured at fair value Continuing involvement that takes the form of a and payables, net of directly attributable
through profit or loss, irrespective of the business guarantee over the transferred asset is measures transaction costs.
model. Notwithstanding the criteria for debt at the lower of original carrying amount of the
instruments to be classified at amortised cost or asset and the maximum amount of consideration The Group financial liabilities include trade and
fair value through OCI, as described above, debt that the Group could be required to repay. other payables, loans and borrowings including
instruments may be designated at fair value
bank overdraft.
through profit or loss on initial recognition if Impairment of financial assets
doing so eliminates, or significantly reduces, an
The Group recognises an allowance for expected Subsequent measurement
accounting mismatch.
credit losses (ECLs) for all debt instruments not For purposes of subsequent measurement,
held at fair value through profit or loss. ECLs are financial liabilities are classified in two categories:
Financial assets at fair value through profit or loss
based on the difference between the contractual
are carried in the statement of financial position • Financial liabilities at fair value through profit
cash flows due in accordance with the contract
at fair value with net changes in the fair value or loss
and all the cash flows that the Group expects
recognised in the statement of profit or loss.
to receive, discounted at an approximation of • Financial liabilities at amortised cost (loans
This category includes listed equity investments
the original effective interest rate. The expected and borrowings)
which the Group had not irrevocably elected to
cash flows will include cash flows from the sale of
classify at fair value through OCI. Dividends on
collateral held or other credit enhancements that Financial liabilities at fair value through profit or
listed equity investments are also recognised as
are integral to the contractual terms. loss
other income in the statement of profit or loss
when the right of payment has been established. Financial liabilities at fair value through profit or
ECLs are recognised in two stages. For credit loss incurred financial liabilities held-for-trading
exposures for which there has not been a and financial liabilities designated upon initial
De-recognition
significant increase in credit risk since initial recognition as at fair value through profit or loss.
A financial asset (or, where applicable, apart of a recognition, ECLs are provided for credit losses
financial asset or part of a group of similar financial that result from default events that are possible Financial liabilities are classified as held-for-
assets) is primarily derecognised (i.e., removed within the next 12-months (a 12-month ECL). For trading if they are incurred for the purpose of
from the Group's consolidated statement of those credit exposures for which there has been repurchasing in the near term. This category also
financial position) when: a significant increase in credit risk since initial includes derivative financial instruments entered
recognition, a loss allowance is required for credit into by the Group that are not designated as
Ì The rights to receive cash flows from the asset
losses expected over the remaining life of the hedging instruments in hedge relationships
have expired, or
exposure, irrespective of the timing of the default as defined by SLFRS 9. Separated embedded
(a lifetime ECL). derivatives are also classified as held for trading
unless they are designated as effective hedging 35.1 Classification of Financial assets and financial liabilities - Group
instruments.
Financial instruments recognised
Gains or losses on liabilities held-for-trading are through profit or loss
recognized in the Statement of Profit or Loss. As at 31 March 2023 2022
LKR LKR
Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated at the initial date of recognition, Financial assets
and only if the criteria in SLFRS 9 are satisfied. The Equity securities 151,027,060 536,892,942
Group has not designated any financial liability as Trade and other receivables - -
at fair value through profit or loss.
Amounts due from related parties - -
Financial liabilities at amortised cost (loans and Other current financial assets - -
borrowings) Short-term deposits - -
After initial recognition, interest bearing loans Cash and cash equivalent - -
and borrowings are subsequently measured at Corporate debt securities - -
amortized cost using the EIR method. Gains and
losses are recognized in the profit or loss when Financial liabilities
the liabilities are derecognized as well as through Unsecured bond issue - -
the EIR amortization process. Bank over draft - -
Interest bearing borrowings - -
Amortized cost is calculated by taking into
account any discount or premium on acquisition Trade payable - -
and fees or costs that are an integral part of the Amount due to related parties - -
EIR. The EIR amortization is included in finance Lease Liabilities - -
costs in the Statement of Profit or Loss. This
Total 151,027,060 536,892,942
category generally applies to interest-bearing
loans and borrowings.
35.2 Financial assets and liabilities by categories in accordance with SLFRS 9 - Company
De-recognition
Financial instruments recognised
A financial liability is derecognized when the through profit or loss
obligation under the liability is discharged or
cancelled or expires. When an existing financial As at 31 March 2023 2022
liability is replaced by another from the same LKR LKR
lender on substantially different terms, or the
terms of an existing liability are substantially Financial assets
modified, such an exchange or modification
Equity Securities 151,027,060 536,892,942
is treated as the derecognition of the original
liability and the recognition of a new liability. The Trade and Other Receivables - -
difference in the respective carrying amounts is Amounts due from related parties - -
recognized in the Statement of Profit or Loss. Other Current Financial Assets - -
Short-Term Deposits - -
Offsetting of financial instruments
Cash and Cash Equivalent - -
Financial assets and financial liabilities are Corporate Debt Securities - -
offset and the net amount is reported in the
consolidated statement of financial position if
there is a currently enforceable legal right to offset Financial liabilities
the recognised amounts and there is an intention Unsecured Bond Issue - -
to settle on a net basis, to realise the assets and Bank Over Draft - -
settle the liabilities simultaneously. Interest bearing borrowings - -
Trade Payable - -
Amount Due to Related Parties - -
Lease Liabilities - -
Total 151,027,060 536,892,942
Financial instruments at FVOCI – equity Total Financial liabilities measured

amortised cost instruments at amortised cost
2023 2022 2023 2022 2023 2022 2023 2022
LKR LKR LKR LKR LKR LKR LKR LKR
- - 510,000 510,000 151,537,060 537,402,942 - -

12,514,645,393 24,831,699,471 - - 12,514,645,393 24,831,699,471 - -
82,238,504 8,339,101 - - 82,238,504 8,339,101 - -
3,220,199,784 3,557,423,609 - - 3,220,199,784 3,557,423,609 - -
2,569,299,538 2,136,020,085 - - 2,569,299,538 2,136,020,085 - -
696,144,034 2,208,007,038 - - 696,144,034 2,208,007,038 - -
- - - - - - -
- - - - - - 561,857 581,857
- - - - - - 1,761,142,207 130,864,408
- - - - - - 16,238,266,180 23,046,292,005
- - - - - - 22,060,784,121 20,862,577,675
- - - - - - 70,733,664 71,465,679
- - - - - - 263,540,630 262,271,721
19,082,527,253 32,741,489,304 510,000 510,000 19,234,064,313 33,278,892,246 40,395,028,658 44,374,053,345
Financial instruments at FVOCI – equity Total Financial liabilities measured

amortised cost instruments at amortised cost
2023 2022 2023 2022 2023 2022 2023 2022
510,000 510,000 151,537,060 537,402,942 - -

9,123,865,450 21,699,146,106 - - 9,123,865,450 21,699,146,106 - -
4,149,300,873 350,947,740 - - 4,149,300,873 350,947,740 - -
2,907,793,820 3,309,006,015 - - 2,907,793,820 3,309,006,015 - -
1,693,917,249 1,691,482,324 - - 1,693,917,249 1,691,482,324 - -
137,489,717 898,392,700 - - 137,489,717 898,392,700 - -
- - - - - - - -
- - - - - - 561,857 581,857
- - - - - - 1,553,000,662 -
- - - - - - 15,239,678,928 21,761,878,248
- - - - - - 9,098,734,112 11,030,755,564
- - - - - - 229,089,551 191,298,506
- - - - - - 106,724,323 1,846,047
18,012,367,110 27,948,974,885 510,000 510,000 18,163,904,169 28,486,377,827 26,227,789,434 32,986,360,222
36. FAIR VALUE MEASUREMENT AND RELATED FAIR VALUE DISCLOSURES

36.1 Fair Value Measurement
Fair-value related disclosures for financial The Group uses valuation techniques that At each reporting date, the Management
instruments and non-financial assets that are are appropriate in the circumstances and for analyses the movements in the values of
measured at fair value or where fair values which sufficient data are available to measure assets and liabilities which are required to
are disclosed in this note. Aside from this fair value, maximising the use of relevant be remeasured or re-assessed as per the
note additional fair value related disclosures observable inputs and minimising the use of Group’s accounting policies. For this analysis,
including the valuation methods, significant unobservable inputs. the Management verifies the major inputs
estimates and assumptions are also provided applied in the latest valuation by agreeing the
in; All assets and liabilities for which fair value information in the valuation computation to
is measured or disclosed in the financial contracts and other relevant documents.
• Property, plant and equipment under
statements are categorised within the fair value
revaluation model Note 11
hierarchy, described as follows, based on the The Management, in conjunction with the
• Investment properties Note 13 lowest level input that is significant to the fair Group’s external valuers, also compares the
value measurement as a whole: change in the fair value of each asset and
• Financial instruments (including those carried
at amortised cost) Note 35 Level 1 - Input that are quoted market prices liability with relevant external sources to
(unadjusted) in active markets for determine whether the change is reasonable.
Accounting Policy identical assets or liabilities.
For the purpose of fair value disclosures,
Fair value is the price that would be received Level 2 - Valuation techniques for which the the Group has determined classes of assets
to sell an asset or paid to transfer a liability lowest level input that is significant and liabilities on the basis of the nature,
in an orderly transaction between market to the fair value measurement is characteristics and risks of the asset or liability
participants at the measurement date. The directly or indirectly observable. and the level of the fair value hierarchy, as
fair value measurement is based on the explained above.
presumption that the transaction to sell the Level 3 - Valuation techniques for which the
asset or transfer the liability takes place either: lowest level input that is significant
to the fair value measurement is
* In the principal market for the asset or liability unobservable.
Or
* In the absence of a principal market, in the For assets and liabilities that are recognised
most advantageous market for the asset or in the financial statements at fair value on a
liability recurring basis, the Group determines whether
transfers have occurred between levels in the
The principal or the most advantageous market hierarchy by re-assessing categorisation (based
must be accessible by the Group. on the lowest level input that is significant to
the fair value measurement as a whole) at the
The fair value of an asset or a liability is end of each reporting period.
measured using the assumptions that market
participants would use when pricing the asset Involvement of external valuers is decided
or liability, assuming that market participants upon annually by the management. Selection
act in their economic best interest. criteria include market knowledge, reputation,
independence and whether professional
A fair value measurement of a non-financial standards are maintained. The Management
asset takes into account a market participant's decides, after discussions with the Group’s
ability to generate economic benefits by using external valuers, which valuation techniques
the asset in its highest and best use or by selling and inputs to use for each case.
it to another market participant that would use
the asset in its highest and best use.
36.2 Valuation techniques and significant unobservable inputs

The following tables summarises the valuation techniques used by the Group and the Company in measuring Level 2 and Level 3 fair values, and the
significant unobservable inputs used for the valuation.
Type Valuation technique Significant unobservable inputs Inter-relationship between significant

unobservable inputs and fair value measurement
Financial assets
Unquoted equity Net assets basis Net asset per share (9.5 - 43.5) Variability of inputs are insignificant to have an
securities impact on fair values
Non financial assets
Land and Open market value basis for lands Estimated price per perch, Estimated price Estimated fair value would increase (decrease) if ;
building and depreciated replacement cost per square feet - Price per perch increases (decreases)
basis for buildings - Price per square feet increases (decreases)
Investment Investment method Open market Estimated price per perch, Estimated price Estimated fair value would increase (decrease) if ;
property method per square feet - Price per perch increases (decreases)
- Price per square feet increases (decreases)
36.3 Fair value hierarchy

The following table shows fair value measurement hierarchy of the Group's assets, liabilities. It does not includes fair value information for financial assets
and financial liabilities not measured at fair value if carrying amount is a reasonable approximation of fair value.
36.3.1 Fair value hierarchy – Group
Fair value hierarchy

Level 1 Level 2 Level 3 Total
As at 31 March Note 2023 2022 2023 2022 2023 2022 2023 2022
Financial assets
Unquoted equity securities (17/ 35.1) 151,027,060 536,892,942 - - 510,000 510,000 151,537,060 537,402,942

Land and building 11.1 - - - - 1,533,852,943 1,334,077,443 1,533,852,943 1,334,077,443
Investment property 13.1 - - - - 21,307,743,685 17,831,487,464 21,307,743,685 17,831,487,464
36.3.2 Fair value hierarchy – Company
Fair value hierarchy

Level 1 Level 2 Level 3 Total
As at 31 March Note 2023 2022 2023 2022 2023 2022 2023 2022
Financial assets
Unquoted equity securities (17/ 35.2) 151,027,060 536,892,942 - - 510,000 510,000 151,537,060 537,402,942

Land and building 11.2 - - - - 388,912,243 330,912,243 388,912,243 330,912,243
Investment property 13.1 - - - - 1,195,500,000 1,026,408,650 1,195,500,000 1,026,408,650
37. FINANCIAL INSTRUMENTS RISK MANAGEMENT OBJECTIVES AND POLICIES

37.1 Introduction
Financial Risk Management is the practice of 37.3 Credit risk historical credit loss experience and forecast
economic value in a firm by using financial Credit risk is the risk that counterparty will of economic conditions may also not be
instrument, manage exposure to risk face by not meet its obligations under a financial representative of customer's actual default in
group. The Group’s principal financial assets instrument or customer contract, leading to a the future. The minimum exposure to credit
include trade and other receivables, and cash financial loss. The Group is exposed to credit risk at the reporting date is the carrying value
and short-term deposits that derive directly risk from its operating activities (primarily trade of the each class of financial assets disclosed in
from its operations. The Group also holds receivables) and from its financing activities, Note 35.
investments in debt and equity instruments. including deposits with banks and financial
The major financial liabilities used by a group institutions, foreign exchange transactions and The Group evaluates the concentration of risk
including debt securities, loans and borrowings other financial instruments. with respect to trade receivables as low, as its
and trade and other payables. The main customers are located in several industries and
purpose of these financial investments is to The maximum exposure to credit risk in respect operate in largely independent markets and
finance the group’s operations and to provide of above at the reporting date is the carrying material payments being backed by guarantees
guarantees to support its operations. value of financial assets recorded in the and enters contractual agreements with client
Financial Statements, net of any allowance for before starting the operations.
37.2 Risk management framework
losses.
The Board of Directors has overall responsibility The uncertainty is reflected in the assessment
for the establishment and oversight of the 37.3.1 Trade receivables of expected credit loss calculation which
Group's risk management framework. The are subject to a number of management
Customer credit risk is managed by each
Board of Directors has established group risk judgments and estimates.
business units subject to group’s established
management policies to identify analyse the polices procedures and controls relating to
risk faced by the Group and set appropriate Based on the assessment carried, no further
customer credit risk management.
risk limits and controls and to monitor risk impairment provision is required to be made
and adherence to limits. Risk management in the financial statements as at the reporting
The Group's exposure to credit risk is influenced
policies and systems are reviewed regularly, date in respect of impairment provision other
mainly by the individual characteristics of
and aim to develop a disciplinary constructive than disclosed in note 19.2.1.
each customer. However, management also
control environment, in which all employees considers the factors that may influence the
understand their roles and obligations credit risk of its customer based including
through training, management standards and default risk associate with the industry and
procedures. country in which customers operate. Each
new customer is analysed individually for
The Group Audit Committee oversees how credit worthiness, reviews external ratings, if
management monitors compliance with they are available financial statements, credit
the Group's risk management policies and agency information, industry information, and
procedures, and reviews the adequacy of the in some cases bank references. Each business
risk management framework in relation to units monitor the customers' financial standing
the risk faced by the Group. The Group Audit (financial insolvency) and outstanding
Committee is assisted in its oversight role by customer receivables are regularly monitored.
Internal Audit. Internal Audit undertakes both An impairment analysis is performed at each
regular and adhoc reviews of risk management reporting date using simplified approach to
controls and procedures, the result of which measure expected credit losses. The calculation
are reported to the Audit Committee. The reflects the probability-weighted outcome,
committee reports regularly to the board of the time value of money and reasonable and
directors on its activities. supportable information that is available at
the reporting date about past events, current
The Group is exposed to key financial risks conditions and forecasts of future economic
include Credit Risk, Liquidity Risk , Market Risk. conditions. The assessment of the correlation
between historical observed default rates,
The board of Directors reviews, verifies, agree forecast economic conditions and ECL is a
the policies for managing each type of risk significant estimate. The amount of ECLs is
which are summarized below. sensitive to changes in circumstances and of
forecast economic conditions. The Group's
As at 31st March, the aging analysis of trade receivables and provision for impairment were as follows for the Group.
As at 31 March 2023 2022

Gross carrying Provision for Weighted Gross carrying Provision for Weighted
amount impairment average amount impairment average
(according to SLFRS 9) loss rate (according to SLFRS 9) loss rate
LKR LKR LKR LKR
Current (Not past due) 2,848,773,105 (751,920) 0.03% 3,976,170,230 - -
Past due
< 30 days 1,000,517,732 (1,682,261) 0.17% 3,335,611,207 (4,799,129) 0.14%
30–60 days 765,885,220 (307,679) 0.04% 3,854,579,042 (3,181,658) 0.08%
61–90 days 380,339,793 (1,673,844) 0.44% 1,983,325,776 (2,511,108) 0.13%
91–120 days 1,359,997,829 (5,492,686) 0.40% 1,953,145,798 (2,253,121) 0.12%
> 120 days 3,474,644,665 (531,707,303) 15.30% 7,154,222,011 (377,835,588) 5.28%
Total 9,830,158,344 (541,615,693) 22,257,054,064 (390,580,604)
As at 31st March, the aging analysis of trade receivables and provision for impairment were as follows for the Company.
As at 31 March 2023 2022

Gross carrying Provision for Weighted Gross carrying Provision for Weighted
amount impairment average amount impairment average
(according to SLFRS 9) loss rate (according to SLFRS 9) loss rate
LKR LKR LKR LKR
Current (Not past due) 2,725,841,002 - - 3,828,319,725 - -
Past due
< 30 days 735,661,609 (776,027) 0.11% 2,873,762,984 (1,471,404) 0.05%
30–60 days 736,429,234 (109,155) 0.01% 3,672,633,816 (1,682,888) 0.05%
61–90 days 248,088,280 (436,729) 0.18% 1,531,221,991 (1,069,260) 0.07%
91–120 days 435,486,106 (3,794,901) 0.87% 1,000,898,189 (69,190) 0.01%
> 120 days 3,220,978,636 (440,037,927) 13.66% 6,841,020,395 (304,904,177) 4.46%
Total 8,102,484,867 (445,154,739) 19,747,857,100 (309,196,919)
Collateral acquired for mitigating credit risk

The Group whenever possible, obtain collaterals in the form of unconditional and irrevocable bank guarantee that can be encashed an demand or
advances are provided to cover the receivable. The Group focuses on the realisability of such collateral to mitigate potential credit loss.
37.3.2 Financial instruments and cash deposits

Credit risk from balances with banks and financial institution is managed by the Group’s treasury management in accordance with the Group’s policy.
Treasury management established “investment policies” in place, funds invest with high liquidity and high level of safety. The funds may invest in
investments grade assets with a rating award by rating agencies or awarded internally by the fund management company. The Group held short term
deposits and cash and cash equivalent as at 31 March 2023 which represents its maximum credit exposure on these assets.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. The
Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties. The Group uses a similar
approach for assessment of ECLs for cash and cash equivalents to those used for debt securities. Cash and cash equivalents has not been materially
impaired.
As at 31 March 2023 - 99%, (2022 - 99%) and 2023 - 99%, (2022 - 99%) of the favorable balances of bank and financial institution were rated “A-” or better
for the Group and Company respectively.
Group Company
2023 2022 2023 2022
Fitch rating LKR % LKR % LKR % LKR %
AA+ - 0% - 0% - 0% - 0%
AA - 0% - 0% - 0% - 0%
AA- 0% 3,894,606,044 91% - 0% 2,506,218,973 98%
A+ 0% 346,708,468 8% - 0% 2,633,153 1%
A 822,062,663 64% 20,005,874 0% 66,075,590 86% 18,388,655 1%
A- 454,481,531 36% - 0% 10,346,746 14% - 0%
BBB- - 0% - 0% - 0% - 0%
B+ 0% 7,963,109 1% - 0% - 0%
Not Rating - 0% - 0% - 0% - 0%
Total 1,276,544,194 100% 4,269,283,495 100% 76,422,336 100% 2,527,240,781 100%
The Group’s maximum exposure to credit risk for the components of the statement of financial position at 31 March 2023 and 2022 is the carrying
amounts as illustrated in Note 35.
37.4 Liquidity Risk against a combination of contractual cash Excessive risk concentration
Liquidity risk is the risk that the Group will inflows plus other inflows that can be generated Concentrations arise when a number of
encounter difficulty in meeting the obligations through the sale of assets, repurchase counterparties are engaged in similar business
associated with its financial liabilities that are agreement or other secured borrowing. The activities, or activities in the same geographical
settled by delivering cash or another financial Group aims to maintain the level of its cash and region, or have economic features that
asset. The Group monitors its risk of a shortage cash equivalents and other highly marketable would cause their ability to meet contractual
of funds using a liquidity planning tools. The debt instruments at an amount in excess of obligations to be similarly affected by changes
Group’s approach of managing liquidity risk is expected cash flows on financial liabilities. in economic, political or other conditions.
to ensure as far as possible that it will always To measure and mitigate liquidity risk, the Concentrations indicate the relative sensitivity
have sufficient liquidity meets its liability when Company closely monitors its net operating of the Group’s performance to developments
due, and maintaining the balance between cash flow, forecasting and maintaining a level affecting a particular industry.
financial assets and liabilities and forecasting of cash and cash equivalents and secured
cash flows from operating activities under committed funding facilities from financial In order to avoid excessive concentrations
both normal and stressed conditions, without institutions. of risk, the Group’s policies and procedures
incurring unacceptable losses or risking include specific guidelines to focus on
As disclosed in note 2.7, Board of directors the maintenance of a diversified portfolio.
damages to the Group’s reputation.
satisfied that the Group and Company have Identified concentrations of credit risks are
The mixed approach combines elements of the adequate liquidity and business plan to controlled and managed accordingly.
cash flow matching approach and the liquid continue business operations and mitigate
assets approach. The business units attempt the increase liquidity risk arising from macro
to match cash outflows in each time bucket economic implication, for the next 12 months
from the reporting date.
Maturity Analysis
The table below summaries, the maturity profile of Group's/ Company's financial liabilities at 31 March 2023 based on contractual payments.
Contractual cash flow

Carrying Total On demand 6 months 6-12 More than
amount or less months 1 year
Non-derivative financial liabilities - Group

Bank overdrafts 1,761,142,207 1,761,142,207 - 1,761,142,207 - -
Trade and other payables 26,095,814,875 26,095,814,875 - 20,317,743,528 4,018,822,706 1,759,248,642
Amounts due to related parties 70,733,664 70,733,664 - 70,733,664 - -
Interest bearing borrowings 16,238,828,037 18,163,087,800 - - 3,937,489,317 14,225,598,483
Unclaimed dividend 64,408,986 64,408,986 64,408,986 - - -
Lease liabilities 263,540,633 701,540,477 - 40,675,670 40,675,670 620,189,138
Contractual cash flow

Non-derivative financial liabilities - Company

Bank overdrafts 1,553,000,662 1,553,000,662 - 1,553,000,662 - -
Trade and other payables 12,111,492,173 12,111,492,173 - 8,310,919,216 3,012,758,061 787,814,896
Amounts due to related parties 229,089,551 229,089,551 - 131,856,170 97,233,381 -
The table below summaries, the maturity profile of Group's/Company's financial liabilities at 31 March 2022 based on contractual payments.
Contractual Cash flow

Non-derivative financial liabilities-Group

Bank overdrafts 130,864,408 130,864,408 - 130,864,408 - -
Trade and other payables 25,161,709,167 25,161,709,167 16,927,809,993 4,283,522,513 3,950,376,661
Amounts due to related parties 71,465,679 71,465,679 71,465,679 - -
Interest bearing borrowings 23,046,873,862 23,046,873,862 18,554,861 3,512,850,136 19,515,468,865
Contractual Cash flow

Non-derivative financial liabilities-Company

Trade and other payables 14,065,939,280 14,065,939,280 - 11,030,755,564 3,035,183,716 -
Amounts due to related parties 191,298,506 191,298,506 - 191,298,506 - -
Lease liabilities 1,846,047 5,910,751 - 98,513 98,513 5,713,725
37.5 Market risk

Market risk is the risk that fair value of future cash flows of financial instruments will fluctuate because of changes in market price. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. All such transactions are
carried out within the guidelines set by the Group Management.
Market risk comprise of the following types of risk:
I. Interest rate risk
II. Currency risk
III. Commodity price risk
IV. Equity price risk
Financial instruments affected by market risk include loans and borrowings, deposits, debt, equity and derivative financial instruments.
Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rates.
The Group's exposure to the risk of changes market interest rates relates primarily to the Group long - term debt obligations with floating interest rates.
The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate financial instruments. Group treasury designed capital
structure guidelines for each projects at the planning stage and thereby maintains optimised level of gearing in the group. The Group manage its interest
rate risk by monitoring and managing cash flows negotiating favorable rates on borrowings and deposits including and maintaining on appropriate
combination of fixed and floating rate risk.
Group Company
Capital Structure as at 31st March, Note 2023 2022 2023 2022
LKR LKR LKR LKR

Bank overdraft 23 1,761,142,207 130,864,408 1,553,000,662 -
Total borrowings 17,999,970,244 23,177,738,270 16,793,241,447 21,762,460,105
Equity 31,971,989,342 30,647,334,606 24,491,777,849 24,322,654,192
Debt / Equity (%) 56.30% 75.63% 68.57% 89.47%
Exposure to interest rate risk

The interest rate profile of the Group's interest bearing financial instruments as reported to the management of the Group is as follows.
Group Company
2023 2022 2023 2022
LKR LKR LKR LKR
Fixed rate instruments

Financial assets 2,569,809,538 2,542,376,660 1,694,427,249 1,691,992,324
Financial liabilities 12,693,554,236 13,723,183,331 12,693,554,236 13,637,073,331
Variable rate instruments

Financial liabilities 5,306,416,008 9,453,524,939 4,099,687,210 8,125,386,774
Cash flow sensitivity analysis for variable rate instruments

A reasonably possible change in interest rates at the reporting date would have increased/ (decreased) profit or loss by the amounts shown below. Due
to the significant volatility observed in interest rates especially during the later part of the financial year and there after, a fluctuation of 100 basis points
is considered for the sensitivity analysis for financial liabilities of variable rate instruments at reporting date, compared to a fluctuation of 100 basis points
considered in the last financial year. This analysis assumes that all other variables, in particular foreign currency interest rates, remain constant.
Effect on profit before tax

Increase/Decrease Group Company
LKR LKR
Variable rate instruments 2023 + 100bp (851,686) (823,968)

- 100bp 851,686 823,968
2022 + 800 bp (7,458,128) (6,500,309)
- 800 bp 7,458,128 6,500,309
Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Group exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense
is denominated in a foreign currency) and the Group’s net investments in foreign currency deposits. These currencies primarily are the Euro, US Dollars
(USD), Pound (GBP), Chinese Renminbi and Japanese Yen.
The Group hedges its exposure to fluctuations on the translation of its foreign operations by forward contracts and matching sales and purchases to
same currency. The Group's Treasury management closely monitors the exchange rate fluctuations and advices management regular basis.
Exposure to currency risk

The summary quantitative data about the Group's exposure to currency risk as reported to the management of the Group is as follows,
2023 2022
EUR USD GBP SGD JPY EUR USD GBP SGD JPY
Trade and other receivables 2,244,513 2,050,532 - - - 1,491,888 1,599,197 - - -

Cash at bank 20,138 523,483 18,662 - - 840 337,392 18,522 - -
Trade and other payables (33,053) (2,775,674) (41,246) - - - (557,476) (162,282) - (69,437,492)
Net Statement of financial
position exposure 2,231,597 (201,659) (22,584) - - 1,492,729 1,379,113 (143,760) - (69,437,492)
The summary quantitative data about the Company's exposure to currency risk as reported to the management of the Company is as follows,
2023 2022
EUR USD GBP EUR USD GBP
Trade and other receivables 2,244,513 2,050,532 - 1,491,888 1,599,197 -

Cash at bank 20,138 15,043 18,662 840 244,899 18,522
Trade and other payables (33,053) (179,991) - - (557,476) -
Net Statement of financial position exposure 2,231,597 1,885,584 18,662 1,492,729 1,286,620 18,522
The following significant exchange rates were applicable during the year 2022/23 & 2021/22.
Company/Group
year end spot rate
2023 2022
LKR LKR
EUR 356.72 334.03

USD 327.14 299.00
GBP 405.14 392.53
SGD 246.48 221.05
JPY 2.46 2.45
Sensitivity Analysis
A reasonably possible strengthening (weakening) of the Euro, US Dollars (USD), Pound (GBP), Singapore Dollar (SGD) and Japanese Yen (JPY) against all
other currencies as at 31st March would have affected the measurement of the financial instruments denominated in the foreign currency and affected
equity and profit or loss by the amounts shown below. Due to the significant volatility observed in exchange rates especially during the later part of
the financial year and there after, a fluctuation of 10% is considered for the sensitivity analysis as at reporting date, compared to a fluctuation of 15%
considered in the last financial year. This analysis assumes that all other receivables in particular exchange rates remains constant and ignores.
Group 2023 2022

Strengthening Weakening Strengthening Weakening
LKR LKR LKR LKR
EUR (10% movement) 79,604,969 (79,604,969) EUR (15% movement) 74,791,960 (74,791,960)
USD (10% movement) (6,597,164) 6,597,164 USD (15% movement) 61,853,216 (61,853,216)
GBP (10% movement) (914,974) 914,974 GBP (15% movement) (8,464,435) 8,464,435
SGD (10% movement) - - SGD (15% movement) - -
JPY (10% movement) - - JPY (15% movement) (25,515,154) 25,515,154
Company 2023 2022

Strengthening Weakening Strengthening Weakening
LKR LKR LKR LKR
EUR (10% movement) 79,604,969 (79,604,969) EUR (15% movement) 74,791,960 (74,791,960)
USD (10% movement) 61,685,868 (61,685,868) USD (15% movement) 57,704,898 (57,704,898)
GBP (10% movement) 756,060 (756,060) GBP (15% movement) 1,090,585 (1,090,585)
Equity Price Risk

The Group’s listed and unlisted equity securities are susceptible to market price arising from uncertainties about future values of the investment securities.
The Treasury management monitors the mix of debt and equity securities in investment portfolio based on market indicators and manage risk through
diversification of portfolio. Reports on the equity portfolio are submitted to the Group’s senior management on a regular basis. The Group’s Board of
Directors reviews and approves all equity investment decisions.
At the reporting date, the exposure to the equity investments at fair value listed on the Colombo Stock Exchange was LKR 151 Mn -2023 (LKR 536
Mn -2022). Following table shows the portfolio maintain in different sectors and all the listed equity instruments were measured based on the prices
available as of 31 March 2023.
As at 31 March 2023 2022

Market value % Market value %
Industry / Sector LKR LKR
Banks - - - -
Capital Goods 19,114,250 12.66% 3,146,668 0.57%
Diversified Financials 10,902,944 7.22% 235,601,490 43.88%
Energy 21,437,500 14.19% -
Food Beverage & Tobacco 49,075,525 32.49% 212,150,464 39.54%
Materials 27,844,674 18.44% 5,387,320 1.00%
Retailing 6,882,057 4.56% -
Consumer Services 15,770,128 10.44%
Transportation 80,607,000 15.01%
151,027,078 100.00% 536,892,942 100.00%
37.6 Capital management 37.7 Distribution made and proposed

Capital management is financial strategy In order to achieve this overall objective, the The Company recognises a liability to make
aimed ensuring maximum efficiency in a Group’s capital management, amongst other cash or non-cash distributions to equity
company’s cash flow. The Group’s objective things, aims to ensure that it meets financial holders of the parent when the distribution is
of capital management is to maintain strong covenants attached to the interest-bearing authorised and the distribution is no longer at
financial position healthy capital ratios in order loans and borrowings that define capital the discretion of the Company. A corresponding
to safeguard the company’s ability to continue structure requirements. Breaches in meeting amount is recognised directly in equity.
as a going concern in order to maximize the financial covenants would permit the bank
shareholder value. Capital consists of share to immediately call loans and borrowings. Non-cash distributions are measured at the fair
capital, reserves, retained earnings and non- There have been no breaches of the financial value of the assets to be distributed with fair
controlling interests of the group. The Group’s covenants of any interest-bearing loans and value remeasurement recognised directly in
management and board of directors monitor borrowing in the current period. equity. Upon distribution of non-cash assets,
the return on capital and dividends to ordinary any difference between the carrying amount
shareholders. No changes were made in the objectives, of the liability and the carrying amount of
policies or processes for managing capital the assets distributed is recognised in the
The Group manages its capital structure and during the years ended 31 March 2023 and statement of Profit or Loss.
makes adjustments to it, in the light of changes 2022.
in economic conditions. Distribution made and proposed are disclosed
in note 24.3.

FINANCIAL REPORTS
Operating Structure 278 Notice of Meeting 281
Ten-year Summary 279 Form of Proxy 283
Directors of Group Companies 280
OPERATING STRUCTURE
Ì Business Development Ì Aggregate Production Unit

Project Management Division (PMD) I Ì Construction Projects Ì Concrete Production Unit
Ì Asphalt Production Unit
Ì Business Development
Ì Scaffolding Unit
Ì Construction Projects
Project Management Division (PMD) II Ì Construction Equipment
Ì Fabrication Unit
Division
Ì Piling Unit
Ì Business Development Ì Mechanical, Electrical and

Project Management Division (PMD) III
Ì Construction Projects Plumbing
Project Management Division (PMD) IV Ì Business Development Ì Construction Projects
Ì Design Training and Development

Design Department Ì Civil / Structural Design Ì Innovation and Value Engineering
Ì Research and Development
Ì HR Planning and Recruitment

CORPORATE MANAGEMENT
Human Resource Department Ì Personnel Administration

BOARD OF DIRECTORS
Ì Employee Grievances handling
Ì Project Development Ì Investor Relations (IR)

Ì Corporate Planning and Ì Corporate Communications
Subsidiary Management and Investments Ì Compliance and Corporate
Project Development Department
Ì Management Information Affairs
Systems (MIS) Ì Subsidiary Management
FINANCE COMMERCIAL
Ì Financial Reporting and Ì Procurement
Compliance Ì Treasury and Working
Finance and Commercial Department Ì Budgeting & Monitoring Capital Management
Ì Payments
Ì Tax Planning and Compliance
Internal Audit Department Ì Finance Audits Ì Compliance Audits
Management Systems Department Ì Systems Audits
Ì IT Systems Management Ì Network Administration

IT Department
Ì Help Desk Support Ì Information Security Support
Ì Project Progress Monitoring Ì Premises Management

Corporate Office Ì Legal and Compliance
TEN-YEAR SUMMARY
2022/23 2021/22 2020/21 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14
Statement of Profit or Loss and Other

Comprehensive Income Highlights
Revenue LKR Mn. 20,565 39,630 23,837 24,027 32,277 26,056 20,448 17,625 16,514 16,373
Gross profit LKR Mn. 5,859 5,312 4,138 3,808 5,184 4,061 4,732 3,977 3,815 4,186
EBITDA LKR Mn. 10,015 8,315 4,050 3,419 4,891 5,044 4,300 3,748 3,322 3,771
EBIT LKR Mn. 8,816 5,784 3,225 2,688 4,173 5,044 3,381 2,900 2,653 3,180
Net finance income/(cost) LKR Mn. (3,863) (1,034) (573) (577) (651) (383) 150 95 110 136
Profit for the year LKR Mn. 2,436 5,130 2,393 928 2,245 2,463 2,746 2,551 2,424 2,902
Profit attributable to owners LKR Mn. 2,482 5,110 2,386 979 2,150 2,507 2,708 2,465 2,346 2,833
Statement of
Financial Position Highlights
Property, plant and equipment LKR Mn. 5,570 6,604 5,708 4,937 5,198 5,980 5,428 4,791 4,222 3,787
Total non-current assets LKR Mn. 44,412 33,566 25,688 19,705 20,144 21,171 16,074 12,357 9,155 7,349
Cash and cash equivalent LKR Mn. 696 2,208 2,223 2,164 2,486 1,394 950 504 1,918 1,521
Short term deposits LKR Mn. 2,569 2,136 1,780 1,269 2,210 2,041 2,922 6,792 1,048 1,140
Total assets LKR Mn. 79,941 81,847 56,060 50,078 48,062 44,439 36,046 30,343 22,328 20,204
Stated capital LKR Mn. 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
Retained earnings LKR Mn. 19,741 18,610 14,245 12,365 11,936 10,388 9,590 8,362 7,169 5,815
Equity attributable to equity holders LKR Mn. 29,557 28,187 23,825 21,834 21,195 19,793 18,840 17,462 16,269 14,916
Loans and borrowings LKR Mn. 16,239 23,047 8,963 10,967 8,735 9,086 5,737 5,846 350 65
Total non-current liabilities LKR Mn. 16,234 21,419 8,695 2,953 7,533 7,528 5,680 5,603 514 359
Statement of Cash Flow Highlights

Cash flows from operating activities LKR Mn. 13,645 (5,995) 8,529 (2,191) 1,876 630 1,994 3,168 3,218 1,608
Cash flows from investing activities LKR Mn. (9,173) (4,477) (5,808) (224) 302 (2,226) (2,226) (9,251) (2,337) (341)
Cash flows from/(used in) financing
activities LKR Mn. (7,614) 10,653 (2,473) 1,907 (851) 1,753 (87) 4,532 (737) (459)
Key Financial Ratios

EPS LKR 2.48 5.11 2.39 0.98 2.15 2.51 2.71 2.47 2.35 2.83
DPS LKR 0.75 0.75 0.50 0.50 0.50 1.20 1.50 0.75 1.00 0.50
Net assets per share LKR 29.56 28.19 23.83 21.83 21.19 19.79 18.84 17.46 16.27 14.92
Dividend payout % 30.22 14.68 21.00 51.00 23.00 47.86 55.39 30.36 43.00 18.00
ROE % 7.62 16.74 9.00 3.80 9.52 11.15 12.70 14.10 14.40 19.00
ROCE % 16.25 7.84 8.40 6.60 11.69 14.83 12.30 12.30 15.40 20.50
Gearing % 54.94 81.76 37.62 50.23 41.21 43.70 30.50 34.80 2.10 0.40
Current ratio Times 1.12 1.62 1.46 1.30 1.70 1.57 2.30 2.70 2.60 2.80
Quick ratio Times 0.62 1.13 1.04 1.00 1.30 1.16 1.70 2.30 2.10 2.30
Price per share LKR 14.20 15.00 22.10 13.20 13.00 20.50 23.80 20.80 19.20 22.50
Investor Highlights
Total number of shareholders No. 9,947 9,795 9,712 8,832 7,226 5,816 6,119 5,757 4,610 2,196
Percentage of public holding % 40.10 39.94 39.81 42.84 41.93 42.31 39.59 37.92 37.92 35.53
Value of shares traded LKR Mn. 1,932 9,588 10,789 6,757 1,637 2,729 3,625 4,570 14,900 2,148
Number of trades No. 35,852 75,415 86,541 71,138 24,276 10,750 25,709 36,018 49,154 10,229
DIRECTORS OF GROUP COMPANIES
Company Name Our response

Sathosa Motors PLC S J S Perera R S Dahanayake
J C Joshua M M N De Silva
D A R Fernando M Jayahsuriya
S D Munasinghe K A P Perera
W A C O Wijesinghe
Access Realties (Private) Limited S J S Perera S H S Mendis
J C Joshua S D Munasinghe
R J S Gomez * resigned w.e.f. 11 May 2023 S D Perera
D A R Fernando
Access Realties 2 (Private) Limited S J S Perera D A R Fernando
J C Joshua S H S Mendis
R J S Gomez * resigned w.e.f. 11 May 2023 S D Munasinghe
A R L Elevate(Private) Limited S J S Perera S H S Mendis
J C Joshua S D Munasinghe
D A R Fernando S D Perera
Access Projects (Private) Limited S J S Perera P M D T Kumara * appointed w.e.f. 1 April 2023
D A R Fernando K A C P Bandara * resigned w.e.f. 31 March 2023
I N Pushpa Kumar S Nishkala * resigned w.e.f. 31 March 2023
Harbour Village (Private) Limited S J S Perera Zeng Nanhai
J C Joshua Xiong Hongfeng - Alternate Director to Zeng Nanhai
D A R Fernando S D Munasinghe -Alternate Director to J C Joshua
Jiang Houliang R M R K Wickramasinghe
W U S Logistics (Private) Limited S J S Perera I S N Fernando
J C Joshua L N A Silva
D A R Fernando
Access Logistics (Private) Limited S J S Perera I S N Fernando
D A R Fernando
Lanka AAC (Private) Limited S J S Perera I M S Bandara
J C Joshua P N A Pathirana
D A R Fernando P B R Dissanayake
L P Gamalathge
ZPMC Lanka Company (Private) Limited C Qiang * appointed w.e.f. 30 June 2022 S D Munasinghe
L Qiang * appointed w.e.f. 30 June 2022 H Qingfeng * resigned w.e.f. 30 June 2022
Z Zhiyong * appointed w.e.f. 30 June 2022 C Jiaqing * resigned w.e.f. 30 June 2022
J C Joshua L Chenhao * resigned w.e.f. 30 June 2022
Blue Star Realties (Private) Limited A M Alamoti S J Fernando * appointed w.e.f. 22 February 2023
M Dehghan H L G Erandika * appointed w.e.f. 22 February 2023
A Shafiei D D S Ferdinando * resigned w.e.f. 22 February 2023
S J S Perera S H S Mendis * resigned w.e.f. 22 February 2023
Access Motors (Private) Limited S D Munasinghe T A A Fernando
S J S Perera M Jayahsuriya
S M P K Dissanayake K A P Perera
T T B C Fernando
Access Logistics Park Ekala (Private) Limited S J S Perera I S N Fernando
D A R Fernando
AEL East Africa Limited S J S Perera R M R K Wickramasinghe
J C Joshua M P D T Kumara
D A R Fernando T A L Niroshan
S H S Mendis S N Mbaa
NOTICE OF MEETING
NOTICE IS HEREBY GIVEN that the Twelfth Annual General Meeting of Access Engineering PLC will be held at The Ceylon Chamber of Commerce, No. 50,
Nawam Mawatha, Colombo 02 on 22nd September 2023 at 2.00 p.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 2023 and the Report of the Auditors thereon.
2. To re-elect as a Director Mr. Shamal Joseph Shavindra Perera who retires by rotation in terms of Article 88 (i) of the Articles of Association of the
Company.
3. To re-appoint Messrs KPMG, Chartered Accountants as Auditors of the Company and to authorize the Directors to determine their remuneration.
4. To authorize the Directors to determine donations for the year ending 31st March 2024 and up to the date of the next Annual General Meeting.
By Order of the Board

Sgd.
P W CORPORATE SECRETARIAL (PVT) LTD
Director/Secretaries
29 August 2023
Colombo
Notes
1. A member entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and vote instead of him/her.
2. A Proxy need not be a member of the Company.
3. A Form of Proxy is enclosed for this purpose.
4. The completed Form of Proxy should be deposited at the Registered Office of the Company, No. 278, Union Place, Colombo 2, not less than thirty-six
(36) hours before the time fixed for the commencement of the Meeting.
NOTES
FORM OF PROXY
I/We*..…………………………………………………………………………………………………………………………………………….…………
(NIC/Passport/Co. Reg. No. …….……………………..……………) of………………………………………………………………………… ….……
……………………………………………………………………………………………………………being a shareholder / shareholders of ACCESS
ENGINEERING PLC hereby appoint ……………………………………………………………………... (NIC/Passport No.……………………………...….)
of…………………………...………………………………………………………………………………………………… or failing him/her*,
Mr. Sumal Joseph Sanjiva Perera or failing him*

Mr. Joseph Christopher Joshua or failing him*
Mr. Dalpadoruge Anton Rohana Fernando or failing him*
Mr. Shevantha Harindra Sudhakara Mendis or failing him*
Mr. Saumaya Darshana Munasinghe or failing him*
Prof. Kulatilleke Arthanayake Malik Kumar Ranasinghe or failing him*
Mr. Niroshan Dakshina Gunaratne or failing him*
Mr. Suresh Dilhan Perera or failing him*
Mr. Dinesh Stephan Weerakkody or failing him*
Mr. Shamal Joseph Shavindra Perera
as my/our* proxy to represent and speak and vote as indicated hereunder for me/us* and on my/our* behalf at the Twelfth Annual General Meeting
of the Company to be held on 22nd September 2023 and at every poll which may be taken in consequence of the aforesaid Meeting and at any
adjournment thereof.
For Against
Resolution 1
To re-elect as a Director Mr. Shamal Joseph Shavindra Perera who retires by rotation in terms of Article 88 (i) of the
Articles of Association of the Company.
Resolution 2
To re-appoint Messrs KPMG, Chartered Accountants as Auditors of the Company and authorize the Directors to
determine their remuneration.
Resolution 3
To authorize the Directors to determine donations for the year ending 31st March 2024 and up to the date of the
next Annual General Meeting.
In witness my/our* hands this ....................................................................... day of ....................................................................... Two Thousand and Twenty-Three.
...........................................................................................................
Signature of Shareholder/s
* Please delete the inappropriate words.

Instructions as to completion appear on the reverse.
FORM OF PROXY
INSTRUCTIONS AS TO COMPLETION
1. This Form of Proxy must be deposited at the Registered Office of the Company, No. 278, Union Place, Colombo 2 not less than thirty six (36) hours
before the time fixed for the Meeting.
2. In perfecting the Form of Proxy please ensure that all details are legible.
3. If you wish to appoint a person other than a Director of the Company as your proxy, please insert the relevant details in the space provided.
4. Please indicate with an ‘X’ in the space provided, how your proxy is to vote on the resolution. If no indication is given, the proxy in his discretion will
vote as he thinks fit.
5. In the case of a Company/Corporation, the proxy must be under its Common Seal, which should be affixed and attested in the manner prescribed
by its Articles of Association.
6. In the case of a Proxy signed by an Attorney, the Power of Attorney must be deposited at The Secretaries’ Office (i.e. P W Corporate Secretarial (Pvt)
Ltd., 3/17, Kynsey Road, Colombo 8) for registration.
7. In the case of joint holders the Form of Proxy must be signed by the first holder.
CORPORATE GRI 2-1
INFORMATION
NAME OF COMPANY REMUNERATION COMMITTEE SECRETARIES
Access Engineering PLC D S Weerakkody – Chairman P W Corporate Secretarial (Pvt) Ltd.
Prof. K A M K Ranasinghe 3/17, Kynsey Road,
REGISTERED OFFICE N D Gunaratne Colombo 08,
Access Engineering PLC S D Perera Sri Lanka.
Access Towers, Tel: +94 11 4640360
278, Union Place, Colombo 02, RELATED PARTY TRANSACTIONS Fax: +94 11 4740588
Sri Lanka. REVIEW COMMITTEE
Tel: +94 11 7606606 N D Gunaratne – Chairman AUDITORS
Fax: +94 11 7606605 Prof. K A M K Ranasinghe Messrs KPMG,
Web : www.accessengsl.com D S Weerakkody Chartered Accountants,
E-mail : investor.relations@accessengsl.com D A R Fernando 32A, Sir Mohamed Macan Markar Mawatha,
Colombo 03,
LEGAL FORM SUBCOMMITTEE ON INVESTMENT Sri Lanka.
AND SUBSIDIARY PERFORMANCE Tel: +94 11 2426426
A public limited liability company
incorporated in Sri Lanka on 31 July 2001 MONITORING Fax: +94 11 2445872
under the Companies Act No. 17 of 1982 and Prof. K A M K Ranasinghe – Chairman
Re-registered under the Companies Act No. 07 J C Joshua
of 2007 on 06 February 2008. D A R Fernando
N D Gunaratne
Ordinary Voting Shares are listed on the Main
D S Weerakkody
Board of the Colombo Stock Exchange.
Shamal J S Perera
Rated Senior Unsecured Redeemable
Debentures are listed on the Colombo Stock STRATEGIC PLANNING COMMITTEE
Exchange. S J S Perera – Chairman
J C Joshua
COMPANY REGISTRATION NUMBER D A R Fernando
PB 200 PQ Prof. K A M K Ranasinghe
BOARD OF DIRECTORS BANKERS

S J S Perera Bank of Ceylon
J C Joshua Sampath Bank PLC
D A R Fernando Hatton National Bank PLC
S H S Mendis Nations Trust Bank PLC
S D Munasinghe Commercial Bank of Ceylon PLC
R J S Gomez (Resigned w. e. f. 11 May 2023) DFCC Bank PLC
S D Perera People’s Bank
Shamal J S Perera National Development Bank PLC
Prof. K A M K Ranasinghe Union Bank of Colombo PLC
N D Gunaratne Seylan Bank PLC
D S Weerakkody Cargills Bank Limited
CAC International Bank
AUDIT COMMITTEE International Commercial Bank
N D Gunaratne – Chairman
Prof. K A M K Ranasinghe
D S Weerakkody
S D Perera
Shamal J S Perera
ACCESS ENGINEERING PLC
Access Towers,
278, Union Place,
Colombo 2,
Sri Lanka
+94 11 760 6606

+94 11 760 6605
investor.relations@accessengsl.com
www.accessengsl.com

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The helix or spiral is a symbol of resilience, pliancy and endurance; the

ability to survive adversity—to thrive even in a difficult environment.

We swiftly embraced the volatilities to understand and adapt a multitude of

At Access Engineering, we construct resilience.

01 This is Access Engineering 02 Strategy

About Access Engineering 4 Operating Environment 22

Roads and Highways 50

Group Performance Review 70

Board of Directors 130

Chairman’s Strategic Planning Committee Report

03 Management Discussion & Analysis

GRI Content Index 123

16 Joint Statement from

05 Financial Reports 06 Annexes

Operating Structure 278

ABOUT ACCESS ENGINEERING GRI 2-6

Since our inception, Access

We have set ourselves apart

Project Portfolio “Access Engineering Promise”

Subsidiaries and Joint Ventures

Wholly owned subsidiaries: Joint ventures:

Other subsidiaries: Ì Harbour Village (Private) Limited (66.67% owned)

ABOUT THIS REPORT GRI 2-3,2-24

Access Engineering PLC (hereinafter referred

For the past nine years, AEL published

This report and all other previous integrated

There are no restatements pertaining to any

Scope and Boundary

Financial Governance, Compliance Sustainability

Assurance Forward-Looking Statements

The key milestones achieved during the reporting period

Ì Completion of design and

PB TRANSPARENCY INTERNATIONAL SRI LANKA TRANSPARENCY IN CORPORATE REPORTING 2022 1

GROUP STRUCTURE GRI 207-4

BUSINESS SEGMENT OPERATING ENTITIES

CONSTRUCTION AND Access Engineering PLC

Lanka AAC (Private) Limited

Access – CHEC JV (Private) Limited

Access Realties (Private) Limited

Harbour Village (Private) Limited

Blue Star Realties (Private) Limited

W U S Logistics (Private) Limited

Access Logistics Park Ekala (Private) Limited

Access Logistics (Private) Limited

Sathosa Motors PLC

Access Motors (Private) Limited

ZPMC Lanka Company (Private) Limited

EFFECTIVE OWNERSHIP PRINCIPLE ACTIVITY MARKETS SERVED COUNTRY OF INCORPORATION

Construction and supply of construction-related services

100% Construction Kenya Kenya

Construction and supply of construction-related services

50% Supply of construction-related materials Sri Lanka Sri Lanka

51% Construction Sri Lanka Sri Lanka

Residential and commercial property development

60% Residential property development Sri Lanka Sri Lanka

Commercial property development for lease and rental

Authorized distributor for Jaguar and Land Rover in

Commission, repair, and maintenance of container

2022/23 2021/22 Change %