ONALLY HOLDINGS PLC

Vision
Building Growth

Mission
To build growth by being the most desired business venue in the city. To enhance shareholder value
by satisfying our customers with modern facilities and quality service by dedicated professionals.
TABLE OF CONTENTS
Page

Corporate Information 1

Notice of Annual General Meeting 2

Managing Directors Review 3

Board of Directors - Profile 4-5

Highlights 6

Annual Report of the Board of Directors on the affairs of the Company 7-11

Audit Committee Report 12

Remuneration Committee Report 13

Related Party Transactions Review Committee Report 14

Statement of the Directors Responsibility 15

Report of the Auditors 16

Statement of Comprehensive Income 17

Statement of Financial Position 18

Statement of Changes in Equity 19

Statement of Cash Flows 20

Notes to the Financial Statements 21-47

Six year Review 48

Information to Investors 49

Major Shareholders of the Company 50

Form of Proxy Enclosed

Instruction for Completion of Proxy Enclosed

 ONALLY HOLDINGS PLC
1 Annual Report 2015/2016

CORPORATE INFORMATION

Directors : Mr. B. V. Selvanayagam (Managing Director)

Mrs. Tharsini Sarveshwaran (Deputy Managing Director)
Dr. S. A. Gulamhusein
Mr. G. T. Fazleabas
Mr. M. I. R. Zahir
Mr. A.C. Yahiyakhan
Mr. A. M. Rakeeb (Resigned w.e.f 02.09.2016)
Mr. T. A. Akbarally
Mr. S. Selvanayagam(Alternate Director to Mr.B.V.Selvanayagam)
Mr. G. Ramanan (Alternate Director to Mr. M.I.R. Zahir)

Registered Office : Unit 603, 4th Floor,

Unity Plaza Building,
No.2, Galle Road,
Colombo-4
Tel: 011 2501622

Secretaries : P W Corporate Secretarial (Pvt) Ltd.,

3/17, Kynsey Road,
Colombo 8
Tel: 011 4640360-3

Auditors : Messrs PricewaterhouseCoopers,

Chartered Accountants,
100, Braybrooke Place,
Colombo 2.

Bankers : Bank of Ceylon PLC

Legal Advisors : D M Swaminathan Associates

 ONALLY HOLDINGS PLC
Annual Report 2015/2016 2

NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the Twenty Ninth (29th) Annual General Meeting of the Company will be held at
the Earls Court, Cinnamon Lakeside Colombo, 115, Sir C. A. Gardiner Mawatha, Colombo 2 on 30th September
2016 at 3.30 p.m. for the following purposes;

1 To receive and consider the Annual Report of the Board of Directors on the affairs of the Company and
the Statement of Accounts for the year ended 31st March 2016 with the Report of the Auditors thereon.
2 To re-elect Dr. Shabbir Abbas Gulamhusein who retires by rotation in terms of Article 88 of the Articles
of Association of the Company, as a Director.
3 To re-elect Mr. Tyeabally Abbasally Akbarally who retires in terms of Article 95 of the Articles of
Association of the Company, as a Director.
4 To re-appoint Messrs. PricewaterhouseCoopers, Chartered Accountants, as the Auditors of the
Company and to authorize the Directors to fix their remuneration.
5 To authorize the Directors to determine donations for the year ending 31st March 2017 and up to the
date of the next Annual General Meeting.

By order of the Board

ON'ALLY HOLDINGS PLC

P W CORPORATE SECRETARIAL (PVT) LTD

Secretaries

02 September 2016
Colombo

Notes

1. A Shareholder entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote
on behalf of him/her.
2. A proxy need not be a Shareholder of the Company.
3. The Form of Proxy is enclosed for this purpose.
4. The completed Form of Proxy must be deposited at the Registered Office of the Company, Unit 603, 4th
Floor, Unity Plaza Building, No. 2, Galle Road, Colombo 04 not later than forty seven (47) hours prior to the
time appointed for the Meeting.
 ONALLY HOLDINGS PLC
3 Annual Report 2015/2016
MANAGING DIRECTORS REVIEW
I take great pleasure in welcoming you to the 29th
Annual General Meeting of Onally Holdings PLC.
During the period under review the company was
able to increase its revenue by 5% and profit for the
year (exclusive of fair value gain) by 3% respective.
This was further boosted by the increase in land
prices which has resulted in the Company having
a fair value gain of Rs. 378.5 million being reflected
in the financial statement. Taking into account the
Financial performance of the Company, the Board
has declared a higher final dividend of Rs. 2/= per
share.
The Company completed the exterior painting of
the building and is now engaging with Jones Lang
LaSalle and Mihindu Keerthiratne Associates with
regard to the next phase of development which
includes the interior refurbishment. This is required
to ensure improved services to both our tenants who
occupy the building and customers who patronize
Unity Plaza.
Let me conclude by thanking the Board of Directors
including the former Chairman, Mr. Ranjit
Fernando, Mr. Nayana Mawilmada, Mr. A. M. Rakeeb
and Mr. Iqbal Cassim, of Onally Holdings PLC for
their guidance and support extended during the
financial year under review. Thank you to our valued
shareholders, Tenants, Bankers, Auditors, Company
Secretaries and each and every individual staff
member of Onally Holdings PLC for their dedication
to enable the Company achieve its current
performance.
Brian Selvanayagam
Managing Director
02 September 2016
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 4

BOARD OF DIRECTORS
Mr. Brian V Selvanayagam
Managing Director
Mr. Brian V Selvanayagam was appointed to the Board of Onally Holdings PLC on 1st November 2008.
He is an Associate Member of the Chartered Institute of Management Accountants (UK), Associate Member
of the Institute of Chartered Accountants of Sri Lanka, Chartered Marketers and Member of the Chartered
Institute of Marketing (UK), Fellow Member of the Certified Management Accountants of Sri Lanka and
Member of the Chartered Institute for Securities & Investment.
He is experienced in the fields of banking, finance, corporate finance and marketing and had served at Ernst
& Young, DFCC Bank PLC, Hongkong and Shanghai Banking Corporation, and Kshathriya Holdings PLC.
He is a member of the Audit & Risk Committee of the Chartered Institute of Marketing and is also the Vice
Chairman of the Chartered Institute of Marketing Sri Lanka Region.
He is also the Country Manager - Sri Lanka for the Chartered Institute for Securities & Investment.
Dr Shabbir A Gulamhusein
Director
Dr Shabbir A. Gulamhusein was appointed to the Board of Onally Holdings PLC in March 2003.
He is the Chairman of Ceylon and Foreign Trades PLC, Chairman of Business Chamber of Commerce and the
Chairman/Chief Executive of the family owned Adam Group of Companies.
Mrs. Tharsini Sarveshwaran
Deputy Managing Director
Mrs. T Sarveshwaran is a full member of the Association of Business Executives (UK) and she has obtained
an Executive Diploma in Accounting and Finance from the Institute of Chartered Accountants of Sri Lanka
Mrs. Sarveshwaran possesses 18 years experience in the fields of Accounting and Administration at Onally
Holdings PLC.
Mr. Imran Zahir
Director
Mr. Imran Zahir has over 16 years of experience in the Investment and Finance industry, regionally and
internationally and a Chartered Management Accountant. He presently functions in the Investment and
Finance industry in Sri Lanka and Europe. He is a Director of the Adam Investments Group and several
public companies in Sri Lanka, and a Director & Head of Investment of the Orchard Capital Group EU/UK.
Mr. Gulamhussein T Fazleabas
Director
Mr. Gulamhussein Fazleabas is a Chartered Engineer by profession and holds a BS in Civil Engineering from
the University of Louisiana in Lafayette (USA) and a MS also in Civil Engineering from the University of North
Carolina in Charlotte (USA).
He is a Member of the Institute of Engineers Sri Lanka and a licensed Professional Engineer in Louisiana and
North Carolina, USA.
He has 30 years private sector design engineering and project management experience in both Sri Lanka
and USA and is presently the Chairman/Managing Director of Perigon Lanka Private Limited, a company
carrying out Project Management, Structural Engineering and Cost Consultancy Services.
Mr. Tyeabally A Akbarally
Director
Mr. Tyeabally Akbarally is the Executive Director Akbar Brothers (Private) Limited, Quick Tea (Private)
Limited, Falcon Trading (Private) Limited, Land and Building Limited, Flexiprint (Private) Limited and
Akbar Pharmaceuticals (Private) Limited.
In addition to the above Mr. Akbarally is also Chairman - Amana Takaful Limited and Amana Takaful Maldives
Limited and Deputy Chairman of Amana Bank Limited. He also serves as a Member of the advisory panel on
Tea sector to the Minister of Plantation Industries.
He was Past Chairman of the Colombo Tea traders Association, Spices and Allied products Traders Association
and a former Director Sri Lanka Tea Board and former Committee member of the Ceylon Chamber of
Commerce.
 ONALLY HOLDINGS PLC
5 Annual Report 2015/2016

BOARD OF DIRECTORS (contd)

Mr. Aboobucker Mohamed Rakeeb
Director
Mr. Aboobucker Mohamed Rakeeb is a Law Graduate (LL.B) from University of Colombo and professionally
he is an Attorney-at-Law practicing actively in the field of Civil law, Administrative law and Banking law for
more than 17 years.
Mr Abdul Careem Yahiyakhan [Dip. Sys. Eng, Pg.Dip (India) BA (UK)]
Director
Mr. A C Yahiyakhan holds a Bachelor of Arts Degree from the United Kingdom, Post Graduate Diploma in
Personnel Management from India and a Diploma in Computer Software Engineering.
He is experienced in the fields of administration in computer center management, foreign employment
supplier services and was an Advisor to Hon. Mohamed Musthaffa, Deputy Minister of Higher Education in
Sri Lanka.
He has over 21 years experience in the private sector as a Director and Managing Director both in Sri
Lanka and Abroad and is presently the Chairman / Managing Director of M R S Group (Hazmea) providing
Computer Centres and Foreign employment Services.
Mr. Shehan Selvanayagam
(Alternate Director to Mr. B V Selvanayagam)
Mr. Shehan Selvanayagam is currently a Director of Loops Solutions (Pvt) Ltd which is a leading Digital
Agency in Sri Lanka working with over 45 leading brands in Sri Lanka as well as clients in the Middle East,
Europe and Australia
Shehan who hails from an e-commerce background was previously employed at Sri Lankan Airlines
handling the online marketing aspects of the Airline, where he was responsible for setting up and running
the E-Commerce operation of the airline, from there he joined Nations Trust Bank and was handling the
Alternate Channels of Banking within the Bank.
He has a Degree in Business Management from the University of Wales, a graduate from the Chartered
Institute of Marketing (UK) and holds a Masters in Information Technology from the University of Keele (UK).
He regularly conducts seminars on Digital Media for companies as well as functions as a Marketing
Consultant for several organizations in Sri Lanka.
Mr. Govindasamy Ramanan
(Alternate Director to Mr. M.I.R. Zahir)
Mr. Ramanan has over 19 years of experience in the investment banking space in Sri Lanka. He was widely
involved and continues to be active in business advisory, fund management, commercial banking and
investment banking. Mr. Ramanan was the Head of Investment Banking at Hatton National Bank and CEO of
HNB Securities, where he was directly involved in handling the full array of investment banking services and
executing several landmark transactions. After his successful career in finance Mr. Ramanan has focused on
Private Equity investment and deep value investment.
Currently he is Executive Director/CEO of Industrial Asphalts (Ceylon) PLC and an Independent Non
Executive Director of Adam Investments PLC.
Mr. Ramanan is a CFA Charter holder and a Management Accountant, and obtained his MBA from University
of Chicago Booth School of Business.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 6

HIGHLIGHTS
OPERATING RESULTS 2015/16 2014/15 Increased
(Rs.000) (Rs.000) (Decreased)
%

Turnover 122,784 116,957 4.98

Operating Profit 86,568 82,844 4.50

Interest income 15,451 15,015 2.90
Fair value gain on investment properties 378,523 3,640 10,298.98

Profit before tax 480,542 101,499 373.45

Tax (150,089) (11,794) 1,172.59

Profit after tax 330,453 89,705 268.38

Other comprehensive income - net of tax 1,946 345 464.06
Profit brought forward 1,120,741 1,077,296 4.03

Profit available for appropriation 1,453,140 1,167,346 24.48

Transfer from reserve 721 2,397 (69.92)
Dividends paid (51,627) (49,002) 5.36

Profit carried forward 1,402,234 1,120,741 25.12

KEY INDICATORS

KEY INDICATORS
Earnings per share (Rs) 18.88 5.13 268.03
Earnings per share(exclusive fair value gain) (Rs) 5.13 4.98 3.01
Dividend per share (Rs) 2.95 2.80 5.36
Net assets per share (Rs) 92.41 75.58 22.27
Market price per share as at 31 March (Rs) 50.20 64.00 (21.56)
330.45

360
Value (Rs Million)

340
320
265.83

300
280
260
240
220
200
145.38

180
122.78
116.96

160
105.39
98.36

140
89.71
88.71
82.48
84.37

120
65.03

100
49.00

51.63
42.88

45.50

80
34.30

36.40

60
40
20
0
2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
Year
Turnover Profit After Taxtation Dividends
 ONALLY HOLDINGS PLC
7 Annual Report 2015/2016

ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE AFFAIRS

OF THE COMPANY
The Directors of Onally Holdings PLC have pleasure are contained in the Managing Directors Review,
in presenting their Annual Report with the Audited which forms and integral part of this Report.
Financial Statements of the Company for the year
This Report and the Financial Statements reflect the
ended 31st March 2016.
state of affairs of the Company.
General
Financial Statements
Onally Holdings PLC is a public limited liability
The complete Financial Statements of the Company,
Company which was incorporated under the
duly signed by two Directors on behalf of the Board
Companies Ordinance No.51 of 1938 as a public
of Directors and the Auditors are given on pages 17
limited company on the 25th June 1982 which
to 47.
obtained the certificate to commence business
on 20th August 1982, listed on the Colombo Stock Accounting Policies
Exchange on 25th April 1991 and re-registered as per
The accounting policies adopted by the Company
the Companies Act, No 7 of 2007 on 13th December
in the preparation of the Financial Statements are
2007 under the new Number PQ 107.
given on pages 21 to 31 which are consistent with
Principal activities of the Company and review of those of the previous period.
performance during the year
Board of Directors and Relevant Interest in Shares
The Companys principal activities, which
The Board consists of eight Directors, comprising
remained unchanged during the year, are Property
of two Executive Directors and six Non Executive
Development / Real Estate.
Directors, five of whom are Independent.
A review of the business of the Company, its
performance during the year and its future prospects

The Names of the Directors and their relevant interests in shares are given below.

Names of Directors Designation No. of No. of shares As

shares As at at 31.03.2015
31.03.2016

} }
Mr. B V Selvanayagam Executive 125 125
Director
Shares held jointly with 937,500 937,500
Mr. S G Selvanayagam & 1,131,181 1,131,181
Mrs.L Selvanayagam
Shares held by 193,556 193,556
Mrs. L Selvanayagam
Dr. Shabbir Abbas Non Executive
Gulamhusein Director
Shares held in the

} }
following manner
Dr. S A Gulamhusein 31,250 31,250
Waldock Mackenzie Ltd/Dr. 463,128 463,427
S A Gulamhusein
508,590 504,739
Assetline Leasing Company 1,000 -
Ltd./Dr.S.A. Gulamhusein
Sampath Bank PLC/ 1,160 -
Dr.S.H.A.Gulamhusein
Commercial Bank of Ceylon 12,052 10,062
PLC/Dr. S A Gulamhusein
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 8

ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE AFFAIRS

OF THE COMPANY
Names of Directors Designation No. of No. of shares As
shares As at at 31.03.2015
31.03.2016
Mrs. T Sarveshwaran Executive Director 57,316 57,316
Mr. G T Fazleabas Independent Non 374 374
Executive Director
Mr. M I R Zahir Independent Non Nil Nil
Executive Director
Mr. Aboobucker Mohamed Independent Non Nil Nil
Rakeeb (Resigned w.e.f Executive Director
02.09.2016)
Mr Abdul Careem Yahi- Independent Non Nil Nil
yakhan Executive Director
Mr. T A Akbarally Independent Nil Nil
Non Executive
Director
Mr. Shehan Selvanayagam Alternate Director Nil Nil
- (Alternate Director to Mr.B
V Selvanayagam )
Mr. G. Ramanan-(Alternate Alternate Director Nil Nil
Director to Mr.M.I.R.Zahir-
Appointed w.e.f.
23.03.2016)

The profiles of all the Directors detailing their areas
of expertise, are included on pages 4 to 5 of the
Annual Report.
Retirement of Directors
In terms of Article 88 of the Articles of Association of
the Company, Dr Shabbir Abbas Gulamhusein will
retire by rotation and being eligible is recommended
for re-election.
In terms of Article 95 of the Articles of Association of
the Company, Mr. Tyeabally Abbasally Akbarally who
was appointed as a Director since the last Annual
General Meeting will retire and being eligible is
recommended for re-election.
Mr. Iqbal Cassim, Alternate Director to Mr. M. I. R.
Zahir resigned from the Board of Directors on 10th
March 2016 and Mr. G. Ramanan was appointed as
Alternate Director to Mr. Zahir on 23rd March 2016
in terms of Article 121 of the Articles of Association
of the Company.
Independence of Directors
The Independence of the Non Executive Directors
was determined according to the Listing Rules of the
Colombo Stock Exchange and each of the Directors
has declared their independence and submitted
signed declarations to that effect.
Declaration of Interests of Directors

Changes in the Directorate The Company maintains an interest Register in

During the period under review and upto the date of
this Report the following resignations / cessation of
office of Directors were effected:
-Mr. N. N. Mawilmada resigned on 12th May 2016.
-Mr. R M S Fernando resigned on 24th August 2016.
-Mr. A. M. Rakeeb resigned on 02nd September 2016
terms of the Companies Act No. 7 of 2007 which is
deemed to form part of this Annual Report and is
available for inspection upon request.
All related party transactions which encompass
the transactions of Directors who were directly
 ONALLY HOLDINGS PLC
9 Annual Report 2015/2016
ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE AFFAIRS
OF THE COMPANY
or indirectly interested in a contract or a related
party transaction with the Company during the
accounting period is recorded in the Interest Register
in compliance with the applicable law.
The Directors have declared their interests in
contracts and their relevant interests in shares, at
meetings of the Directors.
Remuneration of Directors
The total remuneration paid to the Directors for the
financial year was Rs. 5,635,784/-
Corporate Governance
The Board of Directors is committed to the highest
standards of governance designed to protect the
interest of the shareholders while promoting
integrity, transparency and accountability. The
Board ensures that the Company is in compliance
with applicable legal and regulatory requirements
including meeting the requirements of the
Listing Rules of the Colombo Stock Exchange, The
Companies Act No. 7 of 2007 and all other applicable
laws and regulations.
Duties of the Board
The Board is responsible for the formulation and
implementation of the Companys short term,
medium term and long term strategies. The Board
also ensures that the Senior Management team
has the requisite skills, expertise and knowledge to
implement these strategies.
The Board ensures that all Company decisions are in
compliance with laws and regulations of the country
and that each decision meets the ethical standards.
The Board through the Audit Committee ensures
that the Company follows accounting standards
as set out by the Sri Lanka Financial Reporting
Standards (SLFRS) and all financial statements are
in compliance with financial regulations.
The Board, in addition to keeping all shareholder
interests a priority when considering corporate
decisions, also keeps the Colombo Stock Exchange
and the public informed of all significant decisions.
Delegation of Authority
The Board has delegated the authority of the day to
day management of the Company to the Managing
Director who is responsible for delivering services
according to the strategic plan, within the policies
and budgets approved by the Board.
Delegation to Board Members
The Board has delegated certain functions and
duties to sub committees that comprises of
Board members. The functions and duties of each
subcommittee namely, the Audit Committee,
Remuneration Committee and the Related Party
Transactions Review Committee are detailed in the
respective reports.
The Board is also encouraged to seek independent
professional advice when necessary, at the
Companys expense and also have access to the
Company Secretary to obtain advice and services as
necessary.
Remuneration Committee
The Remuneration Committee comprises of
three Non Executive Directors of whom two are
Independent;
Dr. S A Gulamhusein (Chairman)
Mr. A C Yahiyakhan
Mr. A M Rakeeb (Resigned w.e.f 02.09.2016)
The Remuneration Committee is responsible to
ensure that the Companys remuneration policies
are adequate to attract and retain top talent. The
aggregated remuneration of the Board of Directors
is disclosed in the notes to the financial statements
and in this Report on page 13.
Audit Committee
The Audit Committee comprises of four
Independent Non Executive Directors;
Mr. M I R Zahir (Chairman)
Mr. G T Fazleabas
Mr.A C Yahiyakhan
Mr. T A Akbarally

ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE AFFAIRS
OF THE COMPANY
The Report of the Audit Committee is given separately
in the Annual Report detailing the functions and
duties of the Committee and the specific objectives
met in the financial year under review.
Related Party Transactions Review Committee
The Related Party Transactions Review Committee
comprises of three Independent Non Executive
Directors and the Managing Director;
Mr. G T Fazleabas
Mr.A C Yahiyakhan
Mr. T A Akbarally
Mr. B V Selvanayagam
The Report of the Related Party Transactions Review
Committee is given separately in the Annual Report
detailing the functions and duties of the Committee.
Internal Controls
The Board through delegation to the Audit Committee
ensures that the Company maintains a sound system
of Internal Controls to safeguard investments and
Company assets. Therefore, the Audit Committee
conducts a review of the effectiveness of the
Companys system of internal controls.
Company Secretary
The Company Secretary ensures that Board
procedures are followed and that applicable
rules and regulations are complied with. The
Company Secretary also liaises with the CSE on all
of the Companys communications. The Company
Secretary is also responsible for informing of the
General Meetings to the Shareholders and for
accurate recording of proxy voting.
Major Transactions
The Board of Directors is required to act in
accordance with section 185 of the Companies Act in
regard to major transactions as per the said section
185. There were no major transactions entered into
by the Company, during the year.
Dividends
A final dividend of Rs. 2/- per share was approved by
the Directors for the year under review and the said
dividend would be paid on 19th September 2016.
ONALLY HOLDINGS PLC
Annual Report 2015/2016 10
An interim dividend of Rs 1.10 per share was paid on
28th December 2015.
Accordingly, the total dividend for the year under
review amounts to Rs.3.10 per share (Rs 2.95 per
share for the year ended 31st March 2015).
Auditors
Messrs PriceawaterhouseCoopers, Chartered
Accountants served as the Auditors during the year
under review and being eligible are recommended
for re-appointment as the Auditors of the Company,
at the Annual General Meeting. The Auditors do not
have any other relationship with the Company other
than as Auditors of the Company who have also
provided certain non audit services.
A total amount of Rs. 372,300/-is payable by the
Company to the auditors for the year under review,
comprising Rs 295,800 as audit fees and Rs 76,500
for non audit services. The details of the fee payable
to the Auditors have been set out under the Note 7 to
the financial statements.
Donations
During the year under review, the Company did not
make any donations.
Statutory Payments
The Directors confirm that, to the best of their
knowledge, all taxes, duties and levies payable by
the company, all contribution, levies and taxes
payable on behalf of and in respect of the employees
of the company and all other known statutory dues
as at the reporting period have been paid or, were
relevantly provided for.
Contingent Liabilities
There were no material contingent liabilities as at
the reporting period, except as disclosed in Note 27
to financial statements on page 45.
Events occurring after the reporting period
No event has occurred since the reporting date
up to the date of the Auditors Report which would
require adjustment to, or disclosure in the financial
statements, except as disclosed under Note 31 to the
financial statements on page 47.
 ONALLY HOLDINGS PLC
11 Annual Report 2015/2016

ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE AFFAIRS

OF THE COMPANY
Annual General Meeting

The Annual General Meeting of the Company will be

held on 30th September 2016 at 3.30 p.m. The notice
of the Annual General Meeting appears on page 2.

Mr. Brian Selvanayagam

Managing Director

Ms. T Sarveshwaran
Deputy Managing Director

P W Corporate Secretarial (Pvt) Ltd.

Secretaries

02 September 2016

AUDIT COMMITTEE REPORT
The composition of the Audit Committee during the
year and up to 12th May 2016 was as follows;
Mr. Imran Zahir -Chairman
-Independent Non Execuitve Director
Mr. Nayana Nadeesha Mawilmada (resigned w.e.f.
12th May 2016)
-Non Executive Director
Mr. Gulamhussein T. Fazleabas
-Independent Non Executive Director
The Audit Committee was reconstituted on 17th
May 2016 and the Committee now comprise of the
following:
Mr. Imran Zahir - Chairman
-Independent Non Executive Director
Mr. Gulamhussein T. Fazleabas
-Independent Non Executive Director
Mr. Abdul Careem Yahiyakhan
-Independent Non Executive Director
Mr. Tayebally Akbarally
-Independent Non Executive Director
Mr. Imran Zahir is a Member of the Chartered
Institute of Management Accountants, U.K
The Managing Director, Deputy Managing Director
together with the Accountant attend meetings of the
Committee by invitation. The External Auditors are
requested to be present when required.
Financial Reporting
The Committee oversees the Companys financial
reporting on behalf of the Board of Directors as part
of its responsibility and have reviewed the Annual
Financial Statements and recommended them to
the Board prior to their issuance. The management
ensures compliance with relevant accounting
standards when preparing the Financial Statements.
Compliance with Laws & Regulations
The Committee has reviewed the reports submitted
by the management on the state of Compliance
with applicable laws and regulations and statutory
payment made by the Company and ensured that all
requirements are adhered to.
ONALLY HOLDINGS PLC
Annual Report 2015/2016 12
External Auditors
The Committee held meetings with the External
Auditors to discuss the nature, scope and the
approach of the annual audit. The Committee also
held discussions on matters raised on management
letters issued by the Auditors. Necessary actions have
been taken by the Company in response to the issues
raised by the Auditors. The Committee has also
reviewed the other services provided by the Auditors
to ensure that the independence of the Auditors has
not been impaired.
Risk Management
The Committee has held discussions with the
Sectional Heads to discuss the policies and practices
related to risk management. The Committee has
also reviewed different types of risks attached to
the Companys business and its operations during
the year under consideration with a view to taking
appropriate corrective action.
Re-appointment of Auditors
The Committee has recommended to the Board of
Directors that Messrs PricewaterhouseCoopers be re-
appointed the Auditors for the year ending 31st March
2017 subject to the approval of the shareholders at
the Annual General Meeting. The Audit Committee
has also made its recommendations to the Board
of Directors on the fees payable to the Auditors for
approval by the Board.
Imran Zahir
Chairman - Audit Committee
02 September 2016
 ONALLY HOLDINGS PLC
13 Annual Report 2015/2016

REMUNERATION COMMITTEE REPORT

The Company's remuneration policy is an indiscriminative policy irrespective of race, religion or gender which
has been developed to attract, motivate and retain good qualitative staff to achieve the goals and objectives
of the Company.

The Remuneration Committee comprises of the following members:

Dr. Shabbir A Gulamhusein - Chairman Non Executive Director

Mr. Abdul Careem Yahiyakhan Independent Non Executive Director
Mr. Aboobucker Mohamed Rakeeb Independent Non Executive Director (Resigned w.e.f 02.09.2016)

During the year the committee carried out the following functions:

* Reviewing the remuneration of the Executive and Non-Executive Directors.

* Evaluating the performance of key positions of the senior management against set goals and determining
the basis for revising remuneration and other benefits.

* Recommending the policy governing annual increments to staff.

* Reviewing of salary structure and payment of bonus to the staff.

Dr. Shabbir A Gulamhusein

Chairman - Remuneration Committee
02 September 2016
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 14

RELATED PARTY TRANSACTIONS

REVIEW COMMITTEE REPORT
THE ROLE AND RESPONSIBILITIES
The Related Party Transactions Review Committee
(the Committee) is tasked with reviewing all
Related Party Transactions of the Company in
Compliance with section 9 of the Listing Rules of the
Colombo Stock Exchange.
Ensure that all transactions with related parties
are in the best interest of all shareholders and
adequate transparency is maintained.
Establish guidelines and policies for the
management and reporting of related party
transactions.

The Committee reviews and pre-approves all

proposed non-recurrent Related Party Transactions
of the Company. Further, the Committee reviews all
recurrent Related Party Transactions on a quarterly
basis to ensure compliance with the limits and
reporting guidelines specified by the Listing Rules. T. A . Akbarally
Chairman
RELATED PARTY TRANSACTIONS REVIEW Related Party Transactions Review Committee
COMMITTEE COMPOSITION

The Committee comprises of three (03) Independent

Non-Executive Directors and one(01) Executive 02 September 2016
Director. The members of the Related Party
Transactions Review Committee are

Mr. T A Akbarally - Chairman - Independent Non-

Executive Director
Mr. G T Fazleabas - Member- Independent Non-
Executive Director
Mr. A C Yahiyakhan - Member -Independent Non-
Executive Director
Mr. B V Selvanayagam- Member - Managing Director.

KEY ACTIVITIES OF THE RELATED PARTY

TRANSACTIONS REVIEW COMMITTEE:

Review and pre-approve all non-recurrent

related party transactions of the Company prior
to approval by the Board of Directors.

Review all related party transactions to ensure

that they are in the best interests of the Company.

Ensure that all reporting requirements of the

Listing Rules are met.

Update the Board of Directors on the Related

Party Transactions of the Company.
 ONALLY HOLDINGS PLC
15 Annual Report 2015/2016

STATEMENT OF DIRECTORS RESPONSIBILITY FOR PREPARATION

OF FINANCIAL STATEMENTS
The Directors are required by the Companies Act,
No.7 of 2007 to prepare financial statements for each
financial year, which give a true and fair view of the
state of affairs of the Company as at the end of the
financial year and the income and expenditure of
the Company for the financial year.
They are also responsible for taking measures to
safeguard the assets of the Company and in that
context to have proper regard to the establishment
of appropriate systems of internal control with a
view to prevention and detection of fraud and other
irregularities.

The Directors are also responsible to ensure that the The Board of Directors is of the opinion that it has
financial statements comply with the regulations discharged its responsibilities as set out above.
made under the Companies Act, which specifies the
form and content of financial statements and any The Directors are also confident that the Company
other requirements which apply to the Companys has adequate resources to continue in operation and
financial statements under any other law. have applied the going concern basis in preparing
the financial statements.
The Directors ensure that the financial statements
presented in this Annual Report have been prepared
using appropriate accounting policies, consistently
applied and supported by reasonable and prudent By Order of the Board
judgments and estimates and in compliance with the ONALLY HOLDINGS PLC
Sri Lanka Accounting Standards (SLFRS and LKAS)
issued by the Institute of Chartered Accountants of
Sri Lanka, Companies Act, No.7 of 2007 and the Sri
Lanka Accounting and Auditing Standards Act No.15
of 1995.
Brian Selvanayagam
The Directors are responsible for ensuring that the Managing Director
Company keeps sufficient accounting records, which
discloses the financial position of the Company with
reasonable accuracy, which will enable them to have 02 September 2016
the financial statements prepared and presented as Colombo
aforesaid.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 16

Independent Auditor's Report

To the Shareholders of On'ally Holdings PLC
Report on the financial statements
1 We have audited the accompanying financial statements of Onally Holdings PLC, which comprise the
statement of financial position as at 31 March 2016, and the statements of comprehensive income,
changes in equity and cash flows for the year then ended, and a summary of significant accounting
policies and other explanatory information as set out in pages 17 to 47.

Managements Responsibility for the Financial Statements

2 Management is responsible for the preparation of financial statements that give a true and fair view
in accordance with Sri Lanka Accounting Standards, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.

Auditors Responsibility

3 Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Sri Lanka Auditing Standards. Those Standards require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.

4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors judgment, including
the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers the internal control relevant
to the entitys preparation of financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.

5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.

Opinion

6 In our opinion the financial statements give a true and fair view of the financial position of Onally
Holdings PLC as at 31 March 2016, and its financial performance and cash flows for the year then ended
in accordance with Sri Lanka Accounting Standards.

Report on other Legal and Regulatory Requirements

7 These financial statements also comply with the requirements of Section 151 (2) of the Companies Act,
No. 07 of 2007.

02 September 2016
COLOMBO
 ONALLY HOLDINGS PLC
17 Annual Report 2015/2016

STATEMENT OF COMPREHENSIVE INCOME

(all amounts in Sri Lanka Rupees)

Note Year ended 31 March

2016 2015

Revenue 5 122,784,299 116,957,020

Other operating income 6 24,512,238 23,426,560
Operating expenses 7 (60,728,339) (57,539,821)
Operating profit 86,568,198 82,843,759
Finance income 9 15,451,181 15,014,931
Fair value gain on investment property 15 378,523,032 3,640,563
Profit before tax 480,542,411 101,499,253
Tax 10 (150,089,550) (11,793,721)
Profit for the year 330,452,861 89,705,532
Other Comprehensive Income
Items that will not be reclassified to profit or loss
Actuarial gain on remeasurements of
post employment benefit obligations 24 2,358,722 392,319
Gains on revaluation of building 22 16,553,685 1,783,660
Tax on other comprehensive income 10 (3,309,671) (261,117)
Total other comprehensive income for the year - net of tax 15,602,736 1,914,862
Total comprehensive income for the year
346,055,597 91,620,394
Earnings per share 11 18.88 5.13
Earnings per share - basic (exclusive of fair value gain) 11 5.13 4.98

The Notes on pages 21 to 47 form an integral part of these financial statements.

Independent Auditors report on page 16.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 18

STATEMENT OF FINANCIAL POSITION

(all amounts in Sri Lanka Rupees)

Note As at 31 March
2016 2015

ASSETS
Non-current assets
Property, plant and equipment 13 47,450,823 32,084,614
Intangible assets 14 328,927 -
Investment property 15 1,681,000,000 1,298,154,296
1,728,779,750 1,330,238,910
Current assets
Inventories 17 - 8,883
Trade and other receivables 18 15,256,871 9,749,534
Short term Investments 19 - 197,630,699
Cash and cash equivalents 20 264,974,225 27,173,151
280,231,096 234,562,267
Total assets 2,009,010,846 1,564,801,177

EQUITY AND LIABILITIES

Capital and reserves
Stated capital 21 175,007,700 175,007,700
Revaluation reserve 22 39,990,241 27,054,828
Retained earnings 1,402,234,497 1,120,741,585
1,617,232,438 1,322,804,113
Non-current liabilities
Trade and other payables 23 56,308,176 24,481,302
Retirement benefit obligations 24 5,460,526 7,096,129
Deferred income tax liability 25 300,696,433 158,367,606
362,465,135 189,945,037
Current liabilities
Trade and other payables 23 26,961,997 48,881,003
Income tax payables 26 2,351,276 3,171,024
29,313,273 52,052,027
Total liabilities 391,778,408 241,997,064
Total equity and liabilities 2,009,010,846 1,564,801,177

I certify that these financial statements have been prepared in compliance with the requirements of the Companies
Act, No. 07 of 2007.

Accountant
02 September 2016

The Board of Directors is responsible for the preparation and presentation of these financial statements. These
financial statements were authorised for issue by Board of Directors on 02 September 2016.

Managing Director Deputy Managing Director
02 September 2016 02 September 2016
The Notes on pages 21 to 47 form an integral part of these financial statements.
Independent Auditors report on page 16.
 ONALLY HOLDINGS PLC
19 Annual Report 2015/2016

STATEMENT OF CHANGES IN EQUITY

(all amounts in Sri Lanka Rupees)

Note Stated Revaluation Retained Total

capital reserve earnings

Balance at 1 April 2014 175,007,700 27,882,263 1,077,295,912 1,280,185,875

Profit for the year - - 89,705,532 89,705,532
Other comprehensive
income for the year - 1,569,621 345,241 1,914,862

Total comprehensive
income for the year - 1,569,621 90,050,773 91,620,394

Depreciation transfer 22 - (2,397,056) 2,397,056 -

Dividends paid
- 2014 12 - - (29,751,309) (29,751,309)
- 2015 12 - - (19,250,847) (19,250,847)

Total transactions with owners,

recognised directly in equity - (2,397,056) (46,605,100) (49,002,156)

Balance as at 31 March 2015 175,007,700 27,054,828 1,120,741,585 1,322,804,113

Balance at 1 April 2015 175,007,700 27,054,828 1,120,741,585 1,322,804,113

Profit for the year - - 330,452,861 330,452,861

Other comprehensive
income for the year - 13,656,790 1,945,946 15,602,736
Total comprehensive
income for the year - 13,656,790 332,398,807 346,055,597
Depreciation transfer 22 - (721,377) 721,377 -
Dividends paid
- 2015 12 - - (32,376,425) (32,376,425)
- 2016 12 - - (19,250,847) (19,250,847)
Total transactions with owners,
recognised directly in equity - (721,377) (50,905,895) (51,627,272)

Balance at 31 March 2016 175,007,700 39,990,241 1,402,234,497 1,617,232,438

The Notes on pages 21 to 47 form an integral part of these financial statements.

Independent Auditors report on page 16.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 20

STATEMENT OF CASH FLOWS

(all amounts in Sri Lanka Rupees)

31 March
Note 2016 2015

Cash flows from operating activities

Cash generated from operations 29 93,875,494 92,476,344
Interest received 15,266,727 17,557,295
Tax paid 26 (11,890,142) (8,298,071)
Retirement benefit obligations paid 24 (418,400) (67,500)
Net cash generated from operating activities 96,833,679 101,668,068

Cash flows from investing activities

Purchase of property, plant and equipment 13 (339,120) (109,728)
Purchase of intangible assets 14 (374,240) -
Upgrading expenses of investment property 15 (4,322,672) (107,290)
Net investments in fixed deposits 197,630,699 (33,739,481)
Net cash generated from investing activities 192,594,667 (33,956,499)

Cash flows from financing activities

Dividends paid 12 (51,627,272) (49,002,156)
Net cash used in financing activities (51,627,272) (49,002,156)

Increase in cash and cash equivalents 237,801,074 18,709,413

Movement in cash and cash equivalents

At beginning of the year 27,173,151 8,463,738
Increase 237,801,074 18,709,413
At end of the year 20 264,974,225 27,173,151

The Notes on pages 21 to 47 form an integral part of these financial statements.

Independent Auditors report on page 16.
 ONALLY HOLDINGS PLC
21 Annual Report 2015/2016
NOTES TO THE FINANCIAL STATEMENTS
(In the notes all amounts are shown in Sri Lanka Rupees unless otherwise stated)
1 General information
The Company is a public limited liability
Company which was incorporated under
the Companies Ordinance No.51 of 1938
as a public limited Company on the 25th
June 1982, which obtained the certificate
to commence business on 25 th August
1982. The Company listed on the Colombo
Stock Exchange on 25th April 1991 and re -
registered as per the Companies Act, No7 of
2007 on 13th December 2007 under the new
number PQ 107. The registered office of the
Company is situated at Unit 603, 4th Floor, No.
02, Galle Road, Colombo 4.
The principal activity of the Company is
property development / real estate.
2 Summary of significant accounting policies
The principal accounting policies applied in
the preparation of these financial statements
are set out below. These policies have been
consistently applied to all the years presented
unless otherwise stated.
2.1 Basis of preparation
The financial statements of the Company
have been prepared in accordance with
Sri Lanka Accounting Standards (SLFRS/
LKAS), which comprises Sri Lanka
Financial Reporting Standards (SLFRSs),
Sri Lanka Accounting Standards (LKASs),
relevant interpretations of the Standards
Interpretations Committee (SIC) and
International Financial Reporting
Interpretations which are collectively
referred to as SLFRSs. The Company has
consistently applied the accounting
policies throughout all periods presented,
as if these policies had always been in
effect.
These financial statements have been
prepared under the historical cost
convention, except for the measurement
of investment property and the building
under property, plant and equipment
at fair value and retirement benefit
obligation at the present value of the
obligation.
2.2 Changes in accounting policy and
disclosures
(a) New accounting standards,
amendments and interpretations
adopted in 2015
The following standards have been
adopted by the Company and the Group
for the first time with effect from financial
year beginning on 1 April 2015.
(i) Amendment to LKAS 1 - Financial
Statement Presentation, regarding other
comprehensive income. The main change
resulting from these amendments is a
requirement for entities to group items
presented in Other Comprehensive
Income (OCI) on the basis of whether
they are potentially reclassifiable to profit
or loss subsequently (reclassification
adjustments).
(ii) Amendment to SLFRS 13 - Fair value
measurement, confirms that short-term
receivables and payables can continue
to be measured at invoice amounts if
the impact of discounting is immaterial.
SLFRS 13 also clarifies that the portfolio
exception in the standard (measuring
the fair value of a group of financial
assets and financial liabilities on a net
basis) applies to all contracts within the
scope of LKAS 39 - Financial Instruments:
Recognition and Measurement.
(iii) Amendment to LKAS 24 - Related Party
Disclosures, where an entity receives
management personnel services from
a third party (a management entity),
the fees paid for those services must be
disclosed by the reporting entity, but the
compensation paid by the management
entity to its employees or directors.
(iv) Amendment to LKAS 19 - Employee
Benefits, clarifies the accounting for
defined benefit plans that require
employees or third parties to contribute
towards the cost of the benefits. The
amendment distinguishes between
contributions that are linked to service

NOTES TO THE FINANCIAL STATEMENTS (contd.)
only in the period in which they arise
and those linked to service in more
than one period. The objective of the
amendment is to simplify the accounting
for contributions that are independent
of the number of years of employee
service. Entities with plans that require
contributions that vary with service will
be required to recognise the benefit of
those contributions over employees
working lives.
(v) Amendment to LKAS 16 - Property,
plant and Equipment and LKAS - 38 -
Intangible Assets, clarify how the gross
carrying amount and accumulated
depreciation are treated where an entity
measures its assets at revalued amounts.
(b) New accounting standards, amendments
and interpretations issued but not yet
adopted
(i) SLFRS 9 - Financial Instruments,
addresses the classification,
measurement and recognition of
financial assets and financial liabilities.
The complete version of SLFRS 9 was
issued in July 2014. It replaces the
guidance in LKAS 39 that relates to the
classification and measurement of
financial instruments. SLFRS 9 retains
but simplifies the mixed measurement
model and establishes three primary
measurement categories for financial
assets: amortized cost, fair value through
OCI and fair value through profit or loss.
The basis of classification depends on
the entitys business model and the
contractual cash flow characteristics of
the financial asset. Investments in equity
instruments are required to be measured
at fair value through profit or loss with
the irrevocable option at inception to
present changes in fair value in OCI not
recycling. There is now a new expected
credit losses model that replaces the
incurred loss impairment model used
in LKAS 39. For financial liabilities there
were no changes to classification and
measurement except for the recognition
of changes in own credit risk in other
comprehensive income, for liabilities
designated at fair value through profit
or loss. IFRS 9 relaxes the requirements
ONALLY HOLDINGS PLC
Annual Report 2015/2016 22
for hedge effectiveness by replacing the
bright line hedge effectiveness tests.
It requires an economic relationship
between the hedged item and hedging
instrument and for the hedged ratio to be
the same as the one management actually
use for risk management purposes.
Contemporaneous documentation is still
required but is different to that currently
prepared under LKAS 39. The standard
is effective for accounting periods
beginning on or after 1 April 2018. Early
adoption is permitted. The Company and
the Group is yet to assess the full impact
of SLFRS 9.
(ii) SLFRS 15 - Revenue from Contracts
with Customers, deals with revenue
recognition and establishes principles
for reporting useful information to
users of financial statements about the
nature, amount, timing and uncertainty
of revenue and cash flows arising from
an entitys contracts with customers.
Revenue is recognized when a customer
obtains control of a good or service and
thus has the ability to direct the use and
obtain the benefits from the good or
service. The standard replaces LKAS 18
and LKAS 11 and related interpretations.
This standard will be effective for annual
periods beginning on or after 1 April 2018
and earlier application is permitted.
(iii) Amendments to LKAS 16 - Property, Plant
and Equipment and LKAS 38, Intangible
Assets, clarify that a revenue-based
method of depreciation or amortisation
is generally not appropriate. The
amendments are effective for accounting
periods beginning on or after 1 January
2016.
(iv) Amendments to LKAS 19 - Employee
Benefits, clarify that when determining
the discount rate for post-employment
benefit obligations, it is the currency that
the liabilities are denominated in that
is important and not the country where
they arise. The amendments are effective
for accounting periods beginning on or
after 1 January 2016.
(v) Amendments to LKAS 1 - Presentation
of Financial Statements, amendments
 ONALLY HOLDINGS PLC
23 Annual Report 2015/2016
NOTES TO THE FINANCIAL STATEMENTS (contd.)
are made in the context of the IASBs
Disclosure Initiative, which explores
how financial statement disclosures
can be improved. The amendments
provide clarifications on a number
of issues, including: materiality,
disaggregation and subtotals, notes to
the financial statements and OCI arising
from investments accounted for under
the equity method. The amendments
are effective for accounting periods
beginning on or after 1 January 2016.
There are no other standards or IFRIC
interpretations that are not yet effective that
would be expected to have a material impact
to the Company.
2.3 Foreign currencies
(a) Functional and presentation currency
Items included in the financial statements of
the Company is measured using the currency
of the primary economic environment in
which the entity operates (the functional
currency). The financial statements are
presented in Sri Lankan Rupees, which is
the Companys functional and presentation
currency.
2.4 Property, plant and equipment
2.4.1 Recognition and measurement
Property, plant and equipment are recognised
if it is probable that future economic benefits
associated with the assets will flow to the
Company and the cost of the asset can be
measured reliably. All property, plant and
equipment are initially recorded at cost. The
cost includes expenditure that is directly
attributable to the acquisition of assets.
Buildings are subsequently shown at market
value, based on the valuation done by an
external independent valuer, less subsequent
depreciation for such property. Valuations are
performed with sufficient regularity to ensure
that the fair value of a revalued asset does not
differ materially from its carrying amount.
Any accumulated depreciation at the date of
revaluation is eliminated against the gross
carrying amount of the asset, and the net
amount is restated to the revalued amount
of the asset. The self-constructed assets
includes the cost of materials, direct labour
and any other costs directly attributable to
bringing the asset to a working condition for
its intended use, and the costs of dismantling
and removing the items and restoring the site
on which they are located.
Increases in the carrying amount arising
on revaluation of land and buildings are
credited to other comprehensive income and
shown as other reserves in shareholders
equity. Decreases that offset previous
increases of the same asset are charged in
other comprehensive income and debited
against other reserves directly in equity; all
other decreases are charged to the income
statement. Each year the difference between
depreciation based on the revalued carrying
amount of the asset charged to the income
statement, and depreciation based on the
assets original cost is transferred from other
reserves to retained earnings.
2.4.2 Subsequent costs
Subsequent costs are included in the assets
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated
with the item will flow to the Company
and the cost of the item can be measured
reliably. The carrying amount of the replaced
part is derecognised. All other repairs and
maintenance are charged to the income
statement during the financial period in
which they are incurred.
2.4.3 Derecognition
The carrying amount of an item of property,
plant and equipment is derecognised on
disposal or when no future economic benefits
are expected from its use or disposal. Gains
and losses on disposals are determined by
comparing proceeds with carrying amount
and are included in operating profit. When
revalued assets are sold, the amounts
included in other reserves are transferred to
retained earnings.
2.4.4 Depreciation
Depreciation is calculated on the straight-
line method to write off the cost of each asset
to their residual values over their estimated
useful lives.
Depreciation of an asset begins when it is
available for use and ceases at the earlier of the

NOTES TO THE FINANCIAL STATEMENTS (contd.)
date that the asset is classified as held for sale
and the date that the asset is discontinued.
Land is not depreciated. Depreciation on
other assets is calculated using the straight-
line method to allocate their cost or revalued
amounts to their residual values over their
estimated useful lives, as follows:
Buildings 8 - 25 years
Machinery 4 - 12 years
Office equipment and tools 4 years
Furniture and fittings 4 years
Motor vehicles 4 years
These assets residual values and useful lives
are reviewed and adjusted if appropriate.
Where the carrying amount of an asset
is greater than its estimated recoverable
amount, it is written down immediately to its
recoverable amount.
2.5 Investment property
Property that is held for long-term rental
yields or for capital appreciation or both,
and that is not occupied by the Company, is
classified as investment property.
Investment property is measured initially at
its cost, including related transaction costs.
After initial recognition, investment property
is carried at fair value, based on active
market prices, adjusted, if necessary, for any
difference in the nature, location or condition
of the specific asset, determined annually by
the Board of Directors with the assistance
of an independent qualified valuer. The fair
value of investment property reflects, among
other things, rental income from current
leases and assumptions about rental income
from future leases in the light of current
market conditions.
Subsequent expenditure is capitalised to
the assets carrying amount only when it
is probable that future economic benefits
associated with the expenditure will flow
to the Company and the cost of the item
can be measured reliably. All other repairs
and maintenance costs are expensed when
incurred. When part of an investment
property replaced, the carrying amount of the
replaced part is derecognised.
Changes in fair values are recognised in
the Statement of comprehensive income.
ONALLY HOLDINGS PLC
Annual Report 2015/2016 24
Investment properties are derecognised when
they have been disposed. Any gain or loss
arising from a change in fair value or from
the retirement or disposal of an investment
property is recognized in the Statement of
Comprehensive income. Rental income from
investment property is accounted for as
described in note 2.21 (a).
When an item of property, plant and
equipment is transferred to investment
property following a change in its use, any
differences between the carrying amount
and the fair value of the item arising at the
date of transfer is recognised directly in
equity if it is a gain. Upon disposal of the
item, the gain is transferred to retained
earnings. Any loss arising in this manner is
recognized immediately in the Statement of
comprehensive income.
If an investment property becomes owner-
occupied, it is reclassified as property, plant
and equipment and its fair value at the
date of reclassification becomes its cost for
subsequent accounting purposes. Investment
property that is being redeveloped for
continued future use as investment property
continues to be measured at fair value and
is not reclassified as property, plant and
equipment during the redevelopment.
2.6 Impairment of non-financial assets
Assets that have an indefinite useful life
or assets not ready to use are not subject
to amortization and are tested annually
for impairment. Assets that are subject to
amortization are reviewed for impairment
whenever events or changes in circumstances
indicate that the carrying amount may not be
recoverable. An impairment loss is recognised
for the amount by which the assets carrying
amount exceeds its recoverable amount. The
recoverable amount is the higher of an assets
fair value less cost to sell and value in use. For
the purposes of assessing impairment, assets
are grouped at the lowest levels for which
there are largely independent cash flows
(cash generating units).
2.7 Financial assets
2.7.1 Classification
The Company classifies its financial assets in
the following categories: at fair value through
 ONALLY HOLDINGS PLC
25 Annual Report 2015/2016
NOTES TO THE FINANCIAL STATEMENTS (contd.)
profit or loss, loans and receivables, available
for sale and held to maturity. The classification
depends on the purpose for which the
financial assets were acquired. Management
determines the classification of its financial
assets at initial recognition and re-evaluates
this designation at every reporting date. At
the reporting date there were no financial
assets at fair value through profit or loss and
available for sale investments.
(a) Loans and receivables
Loans and receivables are non-derivative
financial assets with fixed or determinable
payments that are not quoted in an active
market. The Companys financial assets
consist of loans and receivables. Financial
assets recognised in the statement of financial
position as trade and other receivables,
investments in fixed deposits with maturity of
more than three months and less than twelve
months are classified as loans and receivables.
They are recognised initially at fair value and
subsequently measured at amortised cost less
provision for impairment.
2.7.2 Recognition and measurement
Regular purchases and sales of financial
assets are recognised on the trade-date, i.e.
the date on which the Company commits
to purchase or sell the asset. Investments
are initially recognized at fair value plus
transaction costs. Financial assets are
derecognised when the rights to receive cash
flows from the investments have expired or
have been transferred and the Company has
transferred substantially all risks and rewards
of ownership. Loans and receivables are
subsequently carried at amortised cost using
the effective interest method.
2.8 Offsetting financial instruments
Financial assets and liabilities are offset and
the net amount reported in the statement
of financial position when there is a legally
enforceable right to offset the recognised
amounts and there is an intention to settle on
a net basis or realize the asset and settle the
liability simultaneously.
2.9 Impairment of financial assets
Assets carried at amortised cost
The Company assesses at the end of each
reporting period whether there is an objective
evidence that financial assets are impaired. A
financial asset is impaired and impairment
losses are incurred only if there is objective
evidence of impairment as a result of one or
more events that occurred after the initial
recognition of the asset (a loss event) and
that loss event (or events) has an impact
on the estimated future cash flows of the
financial asset that can be reliably estimated.
Evidence of impairment may include
indications that the debtors or group of
debtors are experiencing significant financial
difficulty, the probability that they will enter
bankruptcy or other financial reorganisation,
and where observable data indicate that there
is a measurable decrease in the estimated
future cash flows, such as changes in arrears
or economic conditions that correlate with
defaults.
For loans and receivables category, the amount
of the loss is measured as the difference
between the assets carrying amount and the
present value of estimated future cash flows
(excluding future credit losses that have not
been incurred) discounted at the financial
assets original effective interest rate. The
carrying amount of the asset is reduced and
the amount of the loss is recognised in the
income statement.
If, in a subsequent period, the amount of
the impairment loss decreases and the
decrease can be related objectively to an
event occurring after the impairment was
recognised, the reversal of the previously
recognised impairment loss is recognised in
the income statement.
2.10 Financial liabilities
The Companys financial liabilities consist of
trade and other payables. Trade payables are
obligations to pay for goods or services that
have been acquired in the ordinary course of
business from suppliers. Trade payables are
classified as current liabilities if payment is
due within one year or less (or in the normal
operating cycle of the business if longer).
If not, they are presented as non-current
liabilities.
All financial liabilities are recognised initially
at their fair values and subsequently measured
at amortised cost, using the effective interest
method, unless the effect of discounting
would be insignificant, in which case they are
stated at cost.

NOTES TO THE FINANCIAL STATEMENTS (contd.)
2.11 Inventories
Inventories are stated at the lower of cost or
net realisable value. Cost is determined by the
first-in, first- out (FIFO) method. Net realisable
value is the estimated selling price in the
ordinary course of business, less applicable
variable selling expenses.
2.12 Trade receivables
Trade receivables mainly consist of rental
amounts due from customers in the ordinary
course of business. If collection is expected in
one year or less (or in the normal operating
cycle of the business if longer), they are
classified as current assets. If not, they are
presented as non-current assets.
Trade receivables are recognised initially
at fair value and subsequently measured at
amortised cost using the effective interest
method, less provision for impairment.
2.13 Cash and cash equivalents
In the statement of cash flows, cash and cash
equivalents includes cash in hand, deposits
held with banks and other short-term highly
liquid investments with original maturities
of three months or less and bank overdrafts.
In the statement of financial position, bank
overdrafts are shown within borrowings in
current liabilities.
2.14 Share capital
Ordinary shares are classified as equity.
Dividend distributed to the Companys
shareholders is recognised as a liability in the
period in which the dividends are approved by
the Companys directors as empowered by the
Articles of Association of the Company.
2.15 Trade payables
Trade and other payables are recognised
initially at fair value and subsequently
measured at amortised cost using the effective
interest method.
Company obtains deposits from tenants as
a guarantee for returning the property at
the end of the lease term in a specified good
condition amounting to rental payments
for a period of 6 months. Such deposits are
treated as financial liabilities in accordance with
LKAS 39 - Financial instruments Recognition
ONALLY HOLDINGS PLC
Annual Report 2015/2016 26
and Measurement, and they are initially
recognised at fair value. The deposit is
subsequently measured at amortised cost.
2.16 Provisions
Provisions are recognised when the Company
has a present legal or constructive obligation
as a result of past events, it is probable
that an outflow of resources embodying
economic benefits will be required to settle
the obligation, and a reliable estimate of
the amount of the obligation can be made.
Provisions are not recognised for future
operating losses.
Where there are a number of similar
obligations, the likelihood that an outflow
will be required in settlement is determined
by considering the class of obligations as
a whole. A provision is recognised even if
the likelihood of an outflow with respect to
any one item included in the same class of
obligations may be small.
2.17 Current income tax
The tax expense for the period comprises
current and deferred tax. Tax is recognised in
the Statement of Income, except to the extent
that it relates to items recognised in other
comprehensive income or directly in equity.
In this case, the tax is also recognised in other
comprehensive income or directly in equity,
respectively.
The current income tax charge is calculated
on the basis of the tax laws enacted or
substantively enacted at the statement of
financial position date in the country where
the Company operates and generates taxable
income. Management periodically evaluates
positions taken in tax returns with respect to
situations in which applicable tax regulation
is subject to interpretation. It establishes
provisions here appropriate on the basis
of amounts expected to be paid to the tax
authorities.
2.18 Deferred income tax
Deferred income tax is recognised on
temporary differences arising between the
tax bases of assets and liabilities and their
carrying amounts in the financial statements.
However, deferred income tax is not accounted
 ONALLY HOLDINGS PLC
27 Annual Report 2015/2016
NOTES TO THE FINANCIAL STATEMENTS (contd.)
for if it arises from initial recognition of an
asset or liability in a transaction other than a
business combination that at the time of the
transaction affects neither accounting nor
taxable profit or loss. Deferred income tax is
determined using tax rates (and laws) that
have been enacted or substantially enacted by
the end of reporting period and are expected
to apply when the related deferred income tax
asset is realised or the deferred income tax
liability is settled.
Deferred income tax assets are recognised
only to the extent that it is probable that future
taxable profit will be available against which
the temporary differences can be utilised.
Deferred income tax assets and liabilities are
offset when there is a legally enforceable right
to offset current tax assets against current
tax liabilities and when the deferred income
taxes assets and liabilities relate to income
taxes levied by the same taxation authority
on either the same taxable entity or different
taxable entities where there is an intention to
settle the balances on a net basis.
2.19 Employee benefits
2.19.1 Defined contribution plans
Defined contribution plan is a post
employment plan under which an entity pays
fixed contribution into a separate entity and
will have no legal or constructive obligation
to pay a further amount. Obligations for
contributions to defined contribution plans
are recognised as an expense in the income
statement as and when they are due. Prepaid
contributions are recognised as an asset to
the extent that a cash refund or a reduction in
the future payments is available.
(i) Employees Provident Fund contributions
All employees of the Company are members
of the Employees Provident Fund to which
the Company contributes 15% of the salary of
each employee.
(ii) Employees Trust Fund contributions
The Company contributes 3% of the salary of
each employee to the Employees Trust Fund.
2.19.2 Defined benefit plan - Gratuity
Defined benefit plans define an amount of
benefit that an employee will receive on
retirement, usually dependent on one or
more factors such as age, years of service and
compensation.
The Company has adopted a defined benefit
plan as required under the Payment of
Gratuity Act No. 12 of 1983 for all eligible
employees.
The liability recognised in the statement
of financial position in respect of defined
benefit plans is the present value of the
defined benefit obligation as at the date
of the Statement of financial position. The
defined benefit obligation is calculated
annually by the Company using the projected
unit credit method prescribed in LKAS 19 -
Employee Benefits. The present value of the
defined benefit obligation is determined by
discounting the estimated future cash flows
using the interest rates of Government bonds
that are denominated in the currency in
which the benefits will be paid, and that have
terms to maturity approximating to the terms
of the related pension liability.
The current service cost of the defined benefit
plan, recognised in the Statement of income
in employee benefit expense, except where
included in the cost of an asset, reflects the
increase in the defined benefit resulting from
employee service in the current year, benefits
changes, curtailments and settlements.
Past service costs are recognised immediately
in the Statement of income.
The net interest cost is calculated by applying
the discount rate to the net balance of the
defined benefit obligations. This cost is
included in employee benefit expense in the
Statement of income.
Acturials gains and losses arising from
experience adjustments and changes in
actuarial assumptions are charged or credited
to other comprehensive income in the period
in which they arise.
Under the Payment of Gratuity Act No.12 of
1983, the liability to an employee arises only
on completion of 5 years of continued service.

NOTES TO THE FINANCIAL STATEMENTS (contd.)
2.20 Segment information
Management has determined renting of
investment property as one whole operating
segment, and accordingly these financial
statements do not provide information by
segment.
2.21 Revenue recognition
Revenue is measured at the fair value of the
consideration received or receivable, and
represents an amount receivable for goods
supplied, services performed and stated net
of discounts, taxes and levies. The Company
recognises revenue when the amount of
revenue can be reliably measured; when it is
probable that future economic benefits will
flow to the entity and when specific criteria
have been met for Companys activities as
described below:
(a) Rental income
Rental income earned from commercial units
rented to tenants are recognised on an accrual
basis.
(b) Other income
Other income is recognised on an accrual
basis.
2.22 Interest income
Interest income is recognised using the
effective interest method.
2.23 Dividend
Dividends are recognised when they become
legally payable. Dividend distribution to the
Companys shareholders is recognised as a
liability in the Companys financial statements
in the period in which the dividends are
approved by the Companys directors as
empowered by the Articles of Association of
the Company. If the dividends are declared
after the reporting period but before the
financial statements are authorised for issue,
the dividends are not recognised as a liability
at the end of the reporting period. The details
of dividends are detailed in Note 12.
ONALLY HOLDINGS PLC
Annual Report 2015/2016 28
2.24 Comparatives
Where necessary, comparative figures have
been adjusted to conform with change in
presentation in the current year.
3 Financial Risk Management
3.1 Financial risks factors
The Companys activities expose it to a variety
of financial risks: market risk (including
currency risk, fair value interest rate risk, cash
flow interest rate risk and price risk), credit
risk and liquidity risk. The risk management
function within the Company is carried out
in respect of financial risks. Financial risks
are risks arising from financial instruments
to which the Company is exposed during or
at the end of the reporting period. Financial
risk comprises market risk arising from
interest rate risk, credit risk and liquidity risk.
The primary objectives of the financial risk
management function are to establish risk
limits, and then ensure that exposure to risks
stays within these limits.
The Companys overall risk management
programme focuses on the unpredictability
of financial markets and seeks to minimise
potential adverse effects on the Companys
financial performance. The Board of Directors
involve in the risk management and provides
the principles for overall risk management
covering specific areas, such as interest rate
risk, credit risk and investing excess liquidity.
3.1.1 Market risks
Market risk is the risk that the fair value or
future cash flows of a financial instrument
will fluctuate because of changes in market
prices. The Companys market risks arise only
from the open positions in interest-bearing
assets, to the extent that these are exposed to
general and specific market movements.
Management sets limits on the exposure to
interest rate risk that may be accepted, which
are monitored on a monthly basis. However,
the use of this approach does not prevent
losses outside of these limits in the event of
more significant market movements.
 ONALLY HOLDINGS PLC
29 Annual Report 2015/2016

NOTES TO THE FINANCIAL STATEMENTS (contd.)

Sensitivities to interest risks included below
are based on a change in one factor while
holding all other factors constant. In practice,
this is unlikely to occur, and changes in some
of the factors may be correlated.
(i) Foreign exchange risk
The Company has no exposure to foreign
exchange risk as it does not hold any foreign
currency denominated assets or liabilities.
(ii) Price risk
The Company has no exposure to price risk
as it does not hold any equity securities or
commodities.
fixed deposits are agreed only with financial
institutions with a credit ratings of BB+ or
better. The credit quality is further analysed in
Note 16.
3.1.3 Liquidity risks
Prudent liquidity risk management implies
maintaining sufficient cash to meet the
financial commitments. The table below
analyses the companys financial liabilities
into relevant maturity groupings based on the
remaining period at the statement of financial
position date to the contractual maturity date.
The amounts disclosed in the table are the
contractual undiscounted cash flows.

(iii) Cash flow and fair value interest rate risk

As the Companys interest-bearing assets

generate significant amounts of interest,
changes in market interest rates have
significant direct effect on the Companys
income. The Companys interest rate risk
principally arises from the fixed interest
bearing investments in fixed deposits.

The Company does not have any interest

bearing borrowings.

3.1.2 Credit risk

Credit risk is the risk that one party to a

financial instrument will cause a financial
loss for the other party by failing to discharge
an obligation. The Company has significant
concentrations of credit risk in relation to the
receivables from tenants. Credit risk arises
from cash and cash equivalents and fixed
deposits held at banks and trade receivables,
including rental receivables. Credit risk
arising from the rent receivables is subject
to monthly review and also to minimise
the exposure to risk of default, a refundable
deposit is taken at the award of the contract.
The Company has policies in place to ensure
that rental contracts are entered into only
with tenants with an appropriate credit
history, and the Company monitors the credit
quality of receivables on an ongoing basis.
Cash balances are held and investments in
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 30

NOTES TO THE FINANCIAL STATEMENTS (contd.)

The maturity analysis of financial liabilities at 31 March 2016 and 2015 are as follows:

At 31 March 2016
From 1
Less than month to From 3 to 12
1 month 3 months months 1 to 2 years 2 to 5 years
Rental deposits - - 19,272,353 56,308,176 -
Trade and other
payables [excluding
statutory liabilities] 2,697,593 - 3,481,142 - -
2,697,593 - 22,753,495 56,308,176 -

At 31 March 2015
From 1
Less than month to From 3 to 12
1 month 3 months months 1 to 2 years 2 to 5 years
Rental deposits - - 42,069,721 24,481,302 -
Trade and other
payables [ excluding
statutory liabilities] 2,048,328 - 3,303,108 - -
2,048,328 - 45,372,829 24,481,302 -

3.1.4 Capital risk management

The Companys objectives when managing
capital are to safeguard the Companys ability
to continue as a going concern in order to
provide returns for shareholders and benefits
for other stakeholders and to maintain an
optimal capital structure to reduce the cost of
capital.
Consistent with others in the industry, the
company monitors capital on the basis of
the gearing ratio. This ratio is calculated as
net debt divided by total capital. Net debt is
calculated as total borrowings (including
current and non current borrowings as
shown in the statement of financial position)
less cash and cash equivalents. Total capital
is calculated as equity as shown in the
statement of financial position plus net debt.

The Company was operated as a non geared company in the financial year 2015 and 2016.

31 March
2016 2015

Total borrowings - -
Less - investments in fixed deposits [Note 19] - (197,630,699)
Less - cash and cash equivalents [Note 20] (264,974,225) (27,173,151)
Net debt - -
Total equity 1,617,232,438 1,322,804,113
Total capital 1,617,232,438 1,322,804,113
Gearing ratio - -
 ONALLY HOLDINGS PLC
31 Annual Report 2015/2016
NOTES TO THE FINANCIAL STATEMENTS (contd.)
3 Financial Risk Management (contd)
3.2 Fair value estimation
The table below analyses financial instru-
ments carried at fair value, by valuation method.
The different levels are defined as follows:
(a) Quoted prices (unadjusted) in active
markets for identical assets or liabilities
(Level 1).
(b) Inputs other than quoted prices
included within level 1 that
are observable for the asset
or liability, either directly (that is, as prices)
or indirectly (that is, derived from prices)
(Level 2).
(c) Inputs for the asset or liability that are not
based on observable market data (that is,
unobservable inputs) (Level 3).
4 Critical Accounting Estimates and judgments
The Company makes estimates and
assumptions concerning the future. The
resulting accounting estimates will, by
definition, seldom equal the related actual
results. The estimates and assumptions that
have a significant risk of causing a material
adjustment to the carrying amount of assets
and liabilities within the next financial year
are discussed below.
4.1 Investment property
The fair value of investment properties is
determined by using valuation techniques.
Further details of the judgements and
assumptions made are disclosed in Note 15.
4.2 Income taxes
The Company is subject to income taxes in
Sri Lanka. Significant judgment is required in
determining the provision for income taxes.
There are many transactions and calculations
for which the ultimate tax determination is
uncertain. Where the final tax outcome of
these matters is different from the amounts
that were initially recorded, such differences
will impact the current and deferred income
tax assets and liabilities in the period in which
such determination is made.
4.3 Defined benefit obligations
The present value of the pension obligations
depends on a number of factors that are
determined on the projected unit credit
method using a number of assumptions.
The assumption used in determining the
net cost (income) for pensions include the
discount rate. Any change in this assumption
will impact the carrying amount of pension
obligations.
The Company determines the appropriate
discount rate at the end of each year. This is the
interest rate that should be used to determine
the present value of estimated future cash
outflows expected to be required to settle
the pension obligations. In determining the
appropriate discount rate, the Company
considers the interest rates of high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms to maturity approximating
the terms of the related pension liability.
Other key assumptions for pension
obligations are based in part on current
market conditions. Additional information is
disclosed in Note 24.
4.4 Managements estimation of fair value
The valuation was determined principally
using discounted cash flow projections based
on estimates of future cash flows, supported
by the terms of any existing lease and other
contracts and by external evidence such as
current market rents for similar properties in
the same location and condition, and using
discount rates that reflect current market
assessments of the uncertainty in the amount
and timing of the cash flows. The future
rental rates were estimated depending on
the actual location, type and quality of the
properties, and taking into account market
data and projections at the valuation date.
Investment properties do not include the
investment properties under construction or
development and no such estimations were
made.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 32

NOTES TO THE FINANCIAL STATEMENTS (contd.)

5 Revenue
Revenue solely consists of rental income and is shown net of taxes.

6 Other operating income

Year ended 31 March
2016 2015
Rental on hoardings and sign boards 9,364,850 9,562,070
Hire of premises 2,084,200 2,092,875
Electricity fee 1,547,630 1,494,344
Other miscellaneous income 2,730,083 1,904,206
Maintenance services 385,000 360,000
Service charges 8,400,475 8,013,065
24,512,238 23,426,560

7 Operating expenses by nature

The following items have been charged in arriving at operating profit:
Year ended 31 March
2016 2015
Directors emoluments [Note 30 (iv)] 5,635,784 7,447,941
Depreciation on property, plant and equipment [Note 13] 1,526,596 2,410,195
Amortisation on intangible assets [Note 14] 45,313 -
Auditors remuneration
- Audit fee 295,800 270,000
- Certification fee 76,500 73,300
Electricity charges 7,795,138 8,302,601
Janitorial services 7,648,316 6,358,798
Management fees [Note 30 (ii)] 1,224,480 1,224,480
Repairs and maintenance expenditure
- Investment property 6,428,354 2,133,092
- Building and office equipment 164,095 740,021
Security services 5,260,070 5,701,760
Staff costs [Note 8] 15,548,360 15,625,835
Other expenses 9,079,533 7,251,798
Total 60,728,339 57,539,821

8 Employee salaries and benefit expenses

Year ended 31 March
2016 2015
Salaries and wages 9,921,566 9,981,500
Staff Bonus 2,866,549 2,960,960
Defined contribution plan 1,618,726 1,601,890
Defined benefit obligation [Note 24] 1,141,519 1,081,485
15,548,360 15,625,835

Average number of persons employed during the year:
- Permanent 23 25
 ONALLY HOLDINGS PLC
33 Annual Report 2015/2016

NOTES TO THE FINANCIAL STATEMENTS (contd.)

9 Finance income

Year ended 31 March

2016 2015
Interest income 15,451,181 15,014,931

Interest income consists of interest on investments made in short term fixed deposits made in the course
of the business of the Company out of:

(a) rent deposits held by the Company which are payable on the termination of tenancy; and

(b) balance profits after distribution of dividends invested for the future maintenance and development
of the assets of the Company.

10 Income tax expense

According to Section 59B (1), item 33 of the fifth schedule to the Inland Revenue (Amendment) Act No. 22
of 2011, the Company is liable to pay income tax at the rate of 12%, based on lower turnover threshold. The
charge for income tax recognised in Statement of income consists of:

Year ended 31 March
2016 2015
Current tax
Current tax on profits for the year 11,070,394 11,020,195
Deferred tax recognised in the statement of income [Note 25] 139,019,156 773,526
Taxes included in income for the year 150,089,550 11,793,721
Deferred tax recognised in other comprehensive income [Note 25] 3,309,671 261,117
Total tax charge 153,399,221 12,054,838

Tax is calculated using tax rates enacted for the year of assessment. The profits are taxed at a principle
rate of 12%.

Reconciliation between current tax expenses and the accounting profit:

Year ended 31 March

2016 2015
Profit before tax 480,542,411 101,499,253
Tax calculated
- on profit and income at a tax rate of 12% (2015 - 12%) 57,665,089 12,179,911
57,665,089 12,179,911
Income not subject to tax - (305,195)
Expenses not deductible for tax purposes (8,686) (80,995)
Impact due to the change in future tax rates from 12% to 17.5% 92,433,147 -
Deferred tax recognised in other comprehensive income [Note 25] 3,309,671 261,117
Total tax charge 153,399,221 12,054,838
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 34

NOTES TO THE FINANCIAL STATEMENTS (contd.)

11 Earnings per share

Basic earnings per share is calculated by dividing the net profit attributable to the shareholders of the
company by the weighted average number of shares in issue during the year.

Year ended 31 March

2016 2015
Net profit attributable to shareholders 330,452,861 89,705,532
Weighted average number of shares in issue 17,500,770 17,500,770
Earnings per share (Rs) 18.88 5.13
Earnings per share (Rs - exclusive of fair value gain) 5.13 4.98

12 Dividends

Calculation of dividend per share

Year ended 31 March

2016 2015
Interim dividend [Refer a below] 19,250,847 19,250,847
Final dividend [Refer b below] 32,376,425 29,751,309
51,627,272 49,002,156

Number of ordinary shares 17,500,770 17,500,770

Dividend per share 2.95 2.80

a) During the year the Directors paid a final dividend of Rs 1.85 per share amounting to Rs 32,376,425 in
respect of 2015 (the final dividend paid during the year ended 31 March 2015 amounting to
Rs. 29,751,309 at Rs. 1.70 per share was in respect of 2014).

b) The Directors paid an interim dividend of Rs 1.10 per share amounting to Rs 19,250,847 for the year
ended 31 March 2016 (interim dividend of Rs 1.10 per share amounting to Rs 19,250,847 was paid for
the year ended 31 March 2015 during that period).

c) The Directors have approved a final dividend of Rs 2.00 per share amounting to Rs. 35,001,540 for the
year ended 31 March 2016 on 25 August 2016.
13 Property, plant and equipment 35
Building Machinery Office Furniture and Motor Total
equipment fittings vehicles
and tools
At 31 March 2015
ONALLY HOLDINGS PLC

Opening net book amount 31,507,557 107,491 366,994 225,666 475,000 32,682,708
Annual Report 2015/2016

Revaluations 1,783,660 - - - - 1,783,660

Additions - 5,578 51,500 52,650 - 109,728
Cost of disposals - - (29,961) (347,836) (1,900,000) (2,277,797)
Prior year adjustment - - (6,215) (1) - (6,216)
Prior year adjustment - Accumulated Depreciation - - 4,651 1,565 - 6,216
Accumulated depreciation related to disposals - - 27,841 347,836 1,820,833 2,196,510
Depreciation charge [Note 9] (1,692,433) (81,382) (149,182) (91,365) (395,833) (2,410,195)
Closing net book amount 31,598,784 31,687 265,628 188,515 - 32,084,614
At 31 March 2015
Cost / valuation 31,598,784 418,269 1,382,545 2,171,960 - 35,571,558
Accumulated depreciation - (386,582) (1,116,917) (1,983,445) - (3,486,944)
Closing net book amount 31,598,784 31,687 265,628 188,515 - 32,084,614
At 31 March 2016
Opening net book amount 31,598,784 31,687 265,628 188,515 - 32,084,614
Revaluations 16,553,685 - - - - 16,553,685
Additions - - 307,200 31,920 - 339,120
Depreciation charge [Note 9] (1,263,951) (27,289) (144,328) (91,028) - (1,526,596)
Closing net book amount 46,888,518 4,398 428,500 129,407 - 47,450,823
NOTES TO THE FINANCIAL STATEMENTS (contd.)

At 31 March 2016
Cost / valuation 46,888,518 418,269 1,689,745 2,203,880 - 51,200,412
Accumulated depreciation - (413,871) (1,261,245) (2,074,473) - (3,749,589)
Closing net book amount 46,888,518 4,398 428,500 129,407 - 47,450,823

(a) Building consists of owner occupied part of investment properties. The value of land is included in investment properties.
(b) The cost of fully depreciated assets still in use, as at 31 March 2016 amounted to Rs 3,081,841 (2015 - Rs 2,678,184).
(c) During the year the Company had not disposed any assets. However in the financial year 2014/2015 the Company has disposed fully depreciated
assets, the cost of which was Rs 2,277,797.
(d) During the year investment property were revalued (Refer Note13). The revaluation gain applicable to owner occupied property was recognised as
revaluation surplus on the basis of area-occupied.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 36

NOTES TO THE FINANCIAL STATEMENTS (contd.)

13 Property, plant and equipment (contd)

(ii) If the building was stated on the historical cost basis, the amounts would be as follows:

As at 31 March
2016 2015
Cost 12,544,615 12,544,615
Accumulated depreciation (6,286,484) (5,785,945)
6,258,131 6,758,670

14 Intangible assets

Software Total
Licence
At 1 April 2015

Opening net book amount - -

Additions 374,240 374,240
Amortisation (45,313) (45,313)
Closing net book amount 328,927 328,927

At 31 March 2016
Cost 374,240 374,240
Accumulated amortisation (45,313) (45,313)
Closing net book amount 328,927 328,927

Intangible assets consists of software licences for accounting software, payroll processing software and
the office package.

15 Investment property

As at 31 March
2016 2015
At beginning of year 1,298,154,296 1,294,406,443
Upgrading expenses 4,322,672 107,290
Change in fair value during the year 378,523,032 3,640,563
At 31 March 1,681,000,000 1,298,154,296

The Companys investment property was valued by Mr C S G Atukorala an independent professionally quali-
fied valuer having recent experience in the location and category of the investment property being valued.
For the investment property, the current use equates to the highest and best use. As at 31 March 2016, the
investment property was revalued for Rs 1,681,000,000 (2015 - Rs 1,298,154,296) and the resulting gain was
recognised in the statement of income.

At each financial year end the finance department:

- verifies all major inputs to the independent valuation report;
- assesses property valuation movements when compared to the prior year valuation report;
- holds discussions with the independent valuer.
 ONALLY HOLDINGS PLC
37 Annual Report 2015/2016

NOTES TO THE FINANCIAL STATEMENTS (contd.)

15 Investment property (contd)

As per LKAS 40 - Investment Property, the Directors have adopted the fair value model for accounting for
investment property as at 1 April 2005.

Valuation methods underlying managements estimation of fair value

For the investment property in the location with a total carrying value of 1,681,000,000 (2015 - Rs
1,298,154,296), the valuation was determined using discounted cash flow (DCF) projections based on
significant unobservable inputs. These inputs include:

Future rental cash inflows

Based on the actual location, type and quality of the properties and supported by the terms of any existing
lease, other contracts or external evidence such as current market rents for similar properties;

Estimated vacancy rates

Based on current and expected future market conditions after expiry of any current lease;

Maintenance costs
Including necessary investments to maintain functionality of the property for its expected useful life;

Capitalisation rates
Based on actual location, size and quality of the properties and taking into account market data at the
valuation date;

The investment property of the Company is the Unity Plaza building situated at No. 02, Galle Road, Colombo
4.
The floor area of the Unity Plaza building (excluding Bank of Ceylon premises) is in the extent of 130,985
Sq.ft.
Land extent (excluding Bank of Ceylon premises) is 78.56 perches.

Income earned from investment property

Total rent income earned by the Company from the investment property during the year was Rs 122,784,299
(2015 - Rs 116,957,020).

Expenses incurred on investment property

Total repair and maintenance expenses incurred on the investment property was Rs 6,428,354 (2015 - Rs
2,133,092).

Information about fair value measurements using significant unobservable inputs (Level 3) for 2016 are as
follows:

Valuation Technique - Investment method

Capitalisation rate - 5.5 %
Maintenance cost - 40 %
Estimated vacancy rate -0%
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 38

15 Investment property (contd)

Sensitivity analysis

In order to illustrate the significance of the capitalisation rate assumed in this valuation as at 31 March
2016, a sensitivity analysis was carried out assuming the following capitalisation rates :

Present value of
Change in the investment property
assumption Increase in Decrease in
assumption assumption
Capitalisation rate 0.5% 158,292,928 (131,620,859)
Sales price 5% 49,707,651 (49,707,651)
Maintenance cost 10% 263,531,633 (263,531,633)
Estimated vacancy rate 5% - (55,197,761)

Assets and liabilities not carried at fair value but for which fair value is disclosed are as follows:
The following table analyses within the fair value hierarchy the Groups assets and liabilities (by class) not
measured at fair value at 31 March 2016 but for which fair value is disclosed.

As at 31 March 2016 Level 1 Level 2 Level 3 Total

Assets
Trade receivables - 15,256,871 - 15,256,871
Cash and cash equivalents 264,974,225 - - 264,974,225
Total 264,974,225 15,256,871 - 280,231,096

Liabilities
Trade and other payables - 83,270,173 - 83,270,173
Total - 83,270,173 - 83,270,173

As at 31 March 2015 Level 1 Level 2 Level 3 Total

Assets
Trade receivables - 9,749,534 - 9,749,534
Cash and cash equivalents 27,173,151 - - 27,173,151
Total 27,173,151 9,749,534 - 36,922,685

Liabilities
Trade and other payables - 73,362,305 - 73,362,305
Total - 73,362,305 - 73,362,305

The assets and liabilities included in the above table are carried at amortised cost; their carrying values are
a reasonable approximation of fair value.

Trade receivables include the contractual amounts for settlement of trades and other obligations due to the
Company. Trade and other payables and Borrowings represent contract amounts and obligations due by
the Company.
 ONALLY HOLDINGS PLC
39 Annual Report 2015/2016

NOTES TO THE FINANCIAL STATEMENTS (contd.)

16 Financial instruments by category

In accordance with the LKAS 39 - Financial Instruments Recognition and Measurement financial assets
have been classified as follows:

As at 31 March
2016 2015
Assets as per statement of financial position
Loans and receivables
Trade and other receivables 8,477,357 5,825,109
(excluding prepayments and deposits)
Investment in fixed deposits [Note 19] - 197,630,699
Cash and cash equivalents [Note 20] 264,974,225 27,173,151
Total loans and receivables 273,451,582 230,628,959
Total financial assets 273,451,582 230,628,959

16 Financial instruments by category (contd)

In accordance with the LKAS 39 on Financial Instruments Recognition and Measurement financial
liabilities have been classified as follows:
As at 31 March
2016 2015
Liabilities as per statement of financial position
Other financial liabilities at amortised cost
Trade and other payables
(excluding non financial liabilities) 81,759,264 71,902,459
Total other financial liabilities at amortised cost 81,759,264 71,902,459
Total financial liabilities 81,759,264 71,902,459

Credit quality of financial assets
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference
to external credit ratings (if available) or to historical information about counterparty default rates;

(i) Cash at bank

As at 31 March
Rating 2016 2015
Counterparties with external credit rating
(Fitch Ratings)
Cash at bank and short term bank deposits
(more than 3 months maturity)
Bank of Ceylon AA + - 197,630,699
Total - 197,630,699
Cash at bank and short term bank deposits
(less than 3 months maturity)
Bank of Ceylon AA + 18,974,225 15,148,152
Nations Trust Bank PLC A 181,500,000 -
Union Bank PLC BB+ 62,000,000 -
Risk free 2,500,000 12,024,999
Total 264,974,225 27,173,151
Total short term bank deposits and cash and cash equivalents 264,974,225 224,803,850
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 40

NOTES TO THE FINANCIAL STATEMENTS (contd.)

16 Financial instruments by category (contd)

(ii) Trade receivable
As at 31 March
2016 2015

New customers and related parties 365,403 -
Existing customers with no defaults in the past 2,091,854 517,041
2,457,257 517,041

17 Inventories
Inventories consist of consumables.

18 Trade and other receivables

As at 31 March
2015 2014

Trade receivables 2,457,257 517,041

Other receivables and deposits [Note (i) below] 8,238,868 8,034,190
Prepayments [Note (ii) below] 4,560,746 1,198,303
15,256,871 9,749,534

(i) Other receivables mainly consist of deposits for services of Rs 2,218,768 (2015 - Rs 1,649,268) and
interest receivable on fixed deposits of Rs 3,902,108 (2015 - Rs 828,210).

(ii) Pre - payments and accrued income mainly comprise insurance pre-paid expenses of Rs 62,193
(2015- Rs 929,182) and Advance to contractors of Rs 3,792,164 (2015 - Rs 321,450).

As of 31 March 2016, trade receivables of Rs 2,457,257 were past due but not impaired. These relate to
a number of independent customers for whom there is no recent history of default. The age analysis of
theses trade receivables is as follows;

As at 31 March
2016 2015

- Upto 30 days 2,206,006 517,041
- 30 to 90 days overdue 251,251 -
Total past due but not impaired 2,457,257 517,041

Above related to a number of independent customers for whom there is no recent history of credit default
and the total trade receivables were fully performing.
 ONALLY HOLDINGS PLC
41 Annual Report 2015/2016

NOTES TO THE FINANCIAL STATEMENTS (contd.)

19 Short term Investments

As at 31 March
2016 2015
Treasury bills - 162,130,699
Fixed deposit - 34,000,000
Repo - 1,500,000
- 197,630,699

20 Cash and cash equivalents

As at 31 March
2016 2015
Cash at bank and in hand 18,974,225 15,173,152
Short term investments 246,000,000 11,999,999
264,974,225 27,173,151

For the purposes of the cash flow statement, the year end cash and cash equivalents comprise only the
above.

The Company has converted all the short term investments (more than 3 months) amounting to Rs
197,630,699 in to 3 months or less than 3 months fixed deposits and repurchase agreements during the
year.

21 Stated capital
Number of Value
shares (Rs)
At 1 April 2015 17,500,770 175,007,700
At 31 March 2016 17,500,770 175,007,700

22 Revaluation reserve
As at 31 March
2016 2015
At beginning of year 27,054,828 27,882,263
Revaluation surplus 16,553,685 1,783,660
Deferred tax on revaluation (2,896,895) (214,039)
Depreciation transfer (721,377) (2,397,056)
At end of year 39,990,241 27,054,828
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 42

NOTES TO THE FINANCIAL STATEMENTS (contd.)

23 Trade and other payables

As at 31 March
2016 2015
Non-current
Rental deposits payable to outside parties [Note (i) below] 55,837,836 23,653,482
Rental deposit payable to related parties [Note 30 (iii)] 470,340 827,820
56,308,176 24,481,302
Current
Rental deposits payable to outside parties [Note (i) below] 18,236,633 41,599,381
Rental deposit payable to related party [Note 30 (iii)] 1,035,720 470,340
Accounts payable 2,262,911 1,885,351
Other payables [Note (ii) below] 3,685,926 3,085,781
Accruals and provisions [Note (iii) below] 1,740,807 1,820,150
26,961,997 48,861,003
83,270,173 73,362,305

(i) As per rent agreements, the Company obtains rental deposits of 6 months as security. Based on the
remaining agreement period as at the date of the statement of financial position, rental deposits are
classified as current liabilities if deposits are due within one year or less. If not they are presented as
non-current liabilities.

(ii) Other payables mainly consist of Value Added Tax (VAT) payable of Rs 1,251,653 (2015 - Rs 1,226,997)
and unclaimed dividend payable of Rs 1,637,135 ( 2015 - Rs 1,359,757).

(iii) Accruals and provisions mainly consist of professional fees payable of Rs 286,779 (2015 - Rs 268,026)
and miscellaneous accruals amounting to Rs 1,454,028 (2015 - Rs 1,552,124).

24 Retirement benefit obligations

The amounts recognised in the statement of financial position are determined as follows:
As at 31 March
2016 2015
Present value of unfunded obligation 5,460,526 7,096,129
Liability in the statement of financial position 5,460,526 7,096,129

At beginning of year 7,096,129 6,474,463

Current service cost 286,798 432,697
Interest cost 854,721 648,788
Actuarial gain (2,358,722) (392,319)
Benefits paid (418,400) (67,500)
At the end of the year 5,460,526 7,096,129
 ONALLY HOLDINGS PLC
43 Annual Report 2015/2016

NOTES TO THE FINANCIAL STATEMENTS (contd.)

24 Retirement benefit obligations (contd)

The amounts recognised in the statement of comprehensive income are determined as follows:

Year ended 31 March

2016 2015
Current service cost 286,798 432,697
Interest cost 854,721 648,788
Total included in the staff costs [Note 8 ] 1,141,519 1,081,485

Actuarial gain on post employment benefit obligation (2,358,722) (392,319)

Total recognised in the comprehensive income (1,217,203) 689,166

The following assumptions and data were used in valuing the defined benefit obligation by the actuarial
valuer:

Year ended 31 March

2016 2015

Discount rate 12.92% 10.14%
Future salary increases 8% 10%
Staff turn over rate 7% 5%
Retiring age 60 years 60 years

Sensitivity analysis

In order to illustrate the significance of the salary / wage escalation rate and the discount rate assumed in
this valuation as at 31 March 2016, a sensitivity analysis was carried out for all employees assuming the
following salary/wage escalation rate and discount rate.

Present value of defined

Change in the benefit obligation
assumption Increase in Decrease in
assumption assumption

Discount rate per annum 1% Decreased by Increased by

5.99% 6.49%
Annual Salary increment rate 1% Increased by Decreased by
6.74% 6.31%
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 44

NOTES TO THE FINANCIAL STATEMENTS (contd.)

25 Deferred income tax liability

Deferred income taxes are calculated on all temporary differences under the liability method using a
principal tax rate of 17.5% (2015 - 12%). The movement in deferred income tax account is as follows:
As at 31 March
2016 2015
At beginning of year 158,367,606 157,332,963
Recognised in the statement of income[Note 10] 139,019,156 773,526
Recognised in the statement of
other comprehensive income [Note 10] 3,309,671 261,117
At the end of the year 300,696,433 158,367,606

Deferred tax is calculated on temporary differences between carrying value of fixed assets and tax written
down value of such assets, as analysed by each taxable activity.
The reconciliation of tax effect arising from the timing differences related to carrying amounts of assets
and liabilities of the statement of financial position is as follows:

Deferred Deferred Net

tax tax deferred
asset liability tax
Property plant and equipment - (8,287,551) (8,287,551)
Investment property - (293,364,474) (293,364,474)
Defined benefit obligations 955,592 - 955,592
Asset / (liability) as at 31 March 2016 955,592 (301,652,025) (300,696,433)

Deferred Deferred Net

tax tax deferred
asset liability tax
Property plant and equipment - (3,770,413) (3,770,413)
Investment property - (155,448,728) (155,448,728)
Defined benefit obligations 851,535 - 851,535
Asset / (liability) as at 31 March 2015 851,535 (159,219,141) (158,367,606)

26 Current tax payable

As at 31 March
2016 2015
As at 01 April 3,171,024 448,900
Charge for the year [Note 10] 11,070,394 11,020,195
Tax paid during the year (11,890,142) (8,298,071)
As at 31 March 2,351,276 3,171,024
 ONALLY HOLDINGS PLC
45 Annual Report 2015/2016

NOTES TO THE FINANCIAL STATEMENTS (contd.)

27 Contingencies

The Company has contingencies in respect of the following:

a) A former employee of the Company has filed a complaint in the Department of Labour alleging, inter alia,
that the Company had failed to implement the Order of the Labour Tribunal case which was concluded in
2005. The Commissioner of Labour has referred this matter to an arbitrator to be resolved by arbitration.
The arbitration proceeding have not been concluded.

It is not anticipated that any material liability will arise from the above legal claim.

b) A tenant has filed a case against the termination notice issued by the Company for Vacating the premises
after the expiry of the lease. The case will be called on 10th October 2016 for answer of the Defendant.

It is not anticipated that any material liability will arise from the above legal claim.

c) Contingent liability amounting to Rs.13,183,556 on the outcome of the appeal against the assessment for
the year 2011/12, separately charging income tax at 28% on the interest income of the Company may arise
on respect of the subsequent years of assessments:

Financial year Amount

2011 / 2012 1,391,181
2012 / 2013 2,884,518
2013 / 2014 3,957,343
2014 / 2015 2,478,325
2015 / 2016 2,472,189
13,183,556

The Company has appealed against the assessment on the basis that it is chargeable on the aggregate
profits and income of its business undertaking at the rate at which it is chargeable under section 59B of
the Inland Revenue Act No.10 of 2006 and that there is no provision to apply different rates of tax on the its
profits and of its income.

28 Commitments

(a) Capital commitments

As per the service agreement entered into with Jones Lang Lasalle Property Consultants (India)
Private Limited for obtaining the services of Retail Advisory for Unity Plaza subsequent to the year
end, the commitment to pay professional fees of US Dollar 25,000 and out of pocket expenses with a
maximum limit which is US Dollar 5,500 through out the service period.

(b) Financial commitments

The Company pays management fees of Rs 1,224,480 annually for the services rendered by the Urban
Development Authority (UDA). UDA reserves the right to revise the management fees.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 46

NOTES TO THE FINANCIAL STATEMENTS (contd.)

29 Cash generated from operations

Reconciliation of profit before tax to cash generated from operations:
Year ended 31 March
2016 2015
Profit before tax 480,542,411 101,499,253
Adjustments for:
Depreciation [Note 13] 1,526,596 2,410,195
Amortisation [Note 14] 45,313 -
Interest income [Note 9] (15,451,181) (15,014,931)
Fair value gain [Note 15] (378,523,032) (3,640,563)
Loss on disposal of property, plant and equipment - 81,287
Movement in rental deposits - non current portion [Note 23] 31,826,874 (11,786,484)
Changes in working capital:
- inventory 8,883 657,789
- trade and other receivables (5,322,883) (433,038)
- trade and other payables (21,919,006) 17,621,351
Retirement benefit obligation [Note 24] 1,141,519 1,081,485
93,875,494 92,476,344

30 Related party transactions

Urban Development Authority and Ceylon and Foreign Trades PLC had shareholding of 48% and 24%
respectively of the Company, during the year and as at the date of the statement of financial position.

Mr Ranjit Michael Samuel Fernando was the Former Chairman (resigned on 24 August 2016),
Mr Nayana Nadeesha Mawilmada was the Former Director General (resigned on 12 May 2016) of the Urban
Development Authority as at the date of the Statement of Financial Position .

Dr S A Gulamhusein, Director and Shareholder of the Company is also the Chairman of Ceylon and Foreign
Trades PLC with whom no transactions had been entered into by the Company during the year.

The Company has a lease agreement with Network Communications (Private) Limited which occupies
premises rented by the Company. Dr. A A shabbir , son of Dr S A Gulamhusein is a Director of Network
Communications (Private) Limited.
 ONALLY HOLDINGS PLC
47 Annual Report 2015/2016

NOTES TO THE FINANCIAL STATEMENTS (contd.)

30 Related party transactions (contd)

The Company has carried out the following transactions during the year with related parties:
Year ended 31 March

a) Rendering of Services 2016 2015
(i) Rent income received from
Network Communications (Private) Limited 3,103,575 3,676,055

b) Purchase of Services
(ii) Management fees paid to
Urban Development Authority [Note 28 (b)] 1,224,480 1,224,480
Outstanding balances arising from above transactions;
Rental deposit payable to Network
Communications (Private) Limited [Note 23]
- Current 1,035,720 470,340
- Non-current 470,340 827,820
1,506,060 1,298,160

Transactions with related parties disclosed above were made on terms equivalent to those that prevail in
arms length transactions.

The Directors have disclosed the nature of their interests in contracts and proposed contracts with the
company at meetings of the Directors.

(iv) Key management compensation

Key management includes directors (executive and non executive). The compensation paid or
payable to key management for employee services is shown below:

Year ended 31 March

2016 2015
Salaries and other short-term employee benefits 5,635,784 7,447,941
5,635,784 7,447,941
31 Events after the reporting period
The following events have occurred after the reporting period;

(i) Changes in composition of the Board of Directors

Mr N.N.M Mawilmada was resigned on 12 May 2016.

Mr R.M.S Fernando was resigned on 24 August 2016.
Mr. A. M. Rakeeb was resigned on 02 September 2016

(ii) The Directors have approved a final dividend of Rs 2.00 per share amounting to Rs. 35,001,540 for the
year ended 31 March 2016 on 25 August 2016.

No other events have occurred except to the above since the date of the statement of financial
position, which require adjustment to, or disclosure in, the financial statements.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 48

SIX YEAR REVIEW

Year ended 31 March 2011 2012 2013 2014 2015 2016

Rs. Rs. Rs. Rs. Rs. Rs.
OPERATING RESULTS
Turnover 82,478,010 88,705,349 98,356,729 105,387,820 116,957,020 122,784,299

Operating profit 50,542,138 56,022,537 62,233,131 66,894,611 82,843,759 86,568,198

Interest income 6,639,742 7,047,351 15,995,112 21,970,169 15,014,931 15,451,181
Loss on disposal of fixed assets Nil Nil (6,554,000) Nil Nil Nil
Fair value gain on investment properties 47,211,507 100,558,461 Nil 235,489,597 3,640,563 378,523,032
Profit before Tax 104,393,387 163,628,349 71,674,243 324,354,377 101,499,253 480,542,411
Tax (20,022,636) (18,246,647) (6,647,736) (58,527,468) (11,793,721) (150,089,550)
Profit after tax 84,370,751 145,381,702 65,026,507 265,826,909 89,705,532 330,452,861
Other comprehensive income -net of tax Nil 107,637 450,292 (1,468,637) 345,241 1,945,946
Profit brought forward 784,344,408 758,103,146 833,846,923 857,981,597 1,077,295,912 1,120,741,585
Profit available for appropriation 868,715,159 903,592,485 899,323,722 1,122,339,869 1,167,346,685 1,453,140,392
Transfer (to)/from reserves (76,310,504) 3,147,794 1,534,761 458,045 2,397,056 721,377
Capitalization of Reserves and related direct cost Nil (36,491,754) Nil Nil Nil Nil
Dividends paid (34,301,509) (36,401,602) (42,876,886) (45,502,002) (49,002,156) (51,627,272)

Profit carried forward 758,103,146 833,846,923 857,981,597 1,077,295,912 1,120,741,585 1,402,234,497

ASSETS
Non-current assets
Property, plant & equipment 25,133,219 25,832,687 24,277,479 32,682,708 32,084,614 47,450,823
Intangible assets Nil Nil Nil Nil Nil 328,927
Investment properties 942,109,111 1,050,917,229 1,053,115,654 1,294,406,443 1,298,154,296 1,681,000,000
Current assets 105,644,320 121,653,220 147,492,948 184,880,488 234,562,267 280,231,096
Total assets 1,072,886,650 1,198,403,136 1,224,886,081 1,511,969,639 1,564,801,177 2,009,010,846

EQUITY AND LIABILITIES

Stated capital 140,006,160 175,007,700 175,007,700 175,007,700 175,007,700 175,007,700
Revaluation reserve 23,572,551 20,824,064 19,289,303 27,882,263 27,054,828 39,990,241
Retained earnings 758,103,146 833,846,923 857,981,597 1,077,295,912 1,120,741,585 1,402,234,497

Non - current liabilities 113,241,490 144,518,264 133,723,178 200,075,212 189,945,037 362,465,135

current liabilities 37,963,303 24,206,185 38,884,303 31,708,552 52,052,027 29,313,273

Total equity & liabilities 1,072,886,650 1,198,403,136 1,224,886,081 1,511,969,639 1,564,801,177 2,009,010,846

KEY INDICATORS
Earnings per share 6.03 8.31 3.72 15.19 5.13 18.88
Earnings per share(exclusive fair value gain) 2.65 2.56 3.72 4.58 4.98 5.13
Dividend per share 2.45 2.35 2.45 2.60 2.80 2.95
Net Assets per share 65.83 58.84 60.13 73.15 75.59 92.41
Market price per share 72.40 59.00 48.00 46.20 64.00 50.20

OTHERS
Number of shareholders 613 841 809 801 808 868
Dividend cover (Times) 2.46 3.53 1.52 5.84 1.83 6.40
Dividend cover((Times)exclusive of fair value gain) 1.08 1.09 1.52 1.76 1.78 1.74
Dividend pay out ratio 0.41 0.28 0.66 0.17 0.55 0.16
Dividend pay out ratio (exclusive of fair value gain) 0.92 0.92 0.66 0.57 0.56 0.58
 ONALLY HOLDINGS PLC
49 Annual Report 2015/2016

INFORMATION TO INVESTORS

DISTRIBUTION OF SHAREHOLDINGS AS AT 31ST MARCH 2016

From To No. of Holders No. of Shares %
1 - 1,000 712 105,200 0.60
1,001 - 10,000 121 340,012 1.94
10,001 - 100,000 28 780,082 4.46
100,001 - 1,000,000 3 1,594,184 9.11
Over 1,000,000 4 14,681,292 83.89
868 17,500,770 100.00

ANALYSIS OF SHAREHOLDERS AS AT 31ST MARCH 2016

Category No. of Shareholders No. of Shares %
Local Individuals 802 4,064,241 23.22
Local Institutions 59 13,386,663 76.49
Foreign Individuals 6 9,866 0.06
Foreign Institutions 1 40,000 0.23
868 17,500,770 100.00

31.03.2016 31.03.2015
Rs. Rs.
Market price per share
Highest during the period Rs.76.00 (12/06/2015) Rs.72.50 (02/10/2014)
Lowest during the period Rs.50.00 (15/03/2015) Rs.45.00 (17/04/2014)
As at end of the period 50.20 Rs.64.00

PUBLIC HOLDING

The percentage of shares held by the public as at 31st March 2016 is 18.63% comprising of 854 shareholders.

PER SHARE DATA AS AT 31 MARCH

2016 2015
Earnings per share (Rs) 18.88 5.13
Earnings per share(exclusive fair value gain) (Rs) 5.13 4.98
Dividend per share (Rs) 2.95* 2.80**
Net assets per share (Rs) 92.41 75.58
Market price per share as at 31 March (Rs) 50.20 64.00

* Final dividend of Rs 1.85 per share paid for the year ended 31/03/2015 and interim dividend of Rs 1.10 per
share paid for the year ended 31/03/2016.

** Final dividend of Rs 1.70 per share paid for the year ended 31/03/2014 and interim dividend of Rs 1.10 per
share paid for the year ended 31/03/2015.
 ONALLY HOLDINGS PLC
Annual Report 2015/2016 50

MAJOR SHAREHOLDERS OF THE COMPANY

Name As at 31/03/2016 As at 31/03/2015

No. of Shares (%) No. of Shares (%)

1 Urban Development Authority 8,333,332 47.617 8,333,332 47.617

2 Pan Asia Banking Corporation PLC/ 2,799,450 15.996 2,799,450 15.996
Ceylon Foreign Trades PLC
3 Mr. O Gulamhusein (Deceased) 2,143,035 12.245 2,143,035 12.245
4 Commercial Bank of Ceylon PLC/ 1,405,475 8.031 1,405,475 8.031
Ceylon and Foreign Trades PLC
5 Mr.B V Selvanayagam , Mr.S G Selvanayagam 937,500 5.357 937,500 5.357

}
& Mrs.L Selvanayagam
6 Waldock Mackenzie Ltd/ 463,427
Mr S A Gulamhusein
Commercial Bank of Ceylon PLC/ 12,052 508,590 2.906 504,739 2.884
Dr. S A Gulamhusein
Dr. S H A Gulamhusein 31,250
Assetline Leasing Company Ltd/ 1,000
Dr.S A Gulamhusein
Sampath Bank PLC/ 1,160
Dr. S A Gulamhusein
7 Mrs. L Selvanayagam 193,556 1.106 193,556 1.106
8 Majestic Investments (Pvt) Ltd 79,768 0.456 72,336 0.413
9 Nanayakkara Management Services (Private) Limited 69,371 0.396 65,247 0.373
10 Mr.W R H Perera 63,843 0.365 63,843 0.365
11 Mrs. T Sarveshwaran 57,316 0.328 57,316 0.328
12 Merrill J Fernando & Sons (Pvt) Limited 49,040 0.280 49,040 0.280
13 Mrs.K S Cooray 41,665 0.238 41,665 0.238
14 Tranz Dominion,L L C 40,000 0.229 40,000 0.229
15 Asha Financial Services Limited/ 38,871 0.222 35,841 0.205
Mr. C N Pakianathan
16 Dee Sanda Holdings Pvt Limited 35,840 0.205 51,476 0.294
17 Mr.K Gnanenthiran 31,250 0.179 31,250 0.179
18 Mr.A A Noordeen 27,375 0.156 27,375 0.156
19 Anwarnet (Private) Limited 23,783 0.136 22,053 0.126
20 Mr. K S A Ramchandani 21,750 0.124 21,750 0.124
16,900,810 96.572 16,896,279 96.546
599,960 3.428 604,491 3.454
17,500,770 100.000 17,500,770 100.000
NOTES
ONALLY HOLDINGS PLC

FORM OF PROXY

I/We..(NIC No. ) of .
.. being a Shareholder/Shareholders of ONALLY HOLDINGS PLC
hereby appoint .........
(NIC No..) of ...
(or failing him/her).

Dr. S A Gulamhusein or failing him*

Mr. B V Selvanayagam or failing him*
Mrs.T Sarveshwaran or failing her *
Mr. G T Fazleabas or failing him*
Mr. M I R Zahir or failing him*
Mr. A C Yahiyakhan or failing him*
Mr. T A Akbarally or failing him*

as my/our* proxy to represent and speak and vote for me/us* and on my/our* behalf at the Twenty Ninth
(29th) Annual General Meeting of the Company to be held on 30th September 2016 and at any adjournment
thereof and every poll which may be taken in consequence of the aforesaid meeting.

I/We,* the undersigned, hereby authorize my/our proxy to speak and vote for me/us* and on my /our* behalf
in accordance with the preference as indicated below;

For Against

1 To receive and consider the Annual Report of the Board of Directors

and the Statements of Accounts for the year ended 31st March
2016 with the Report of the Auditors thereon

2 To re-elect Dr. S A Gulamhusein, who retires by rotation in terms

of Article 88 of the Articles of Association of the Company, as a
Director

3 To re-elect Mr. T A Akbarally who retires in terms of Article 95 of the

Article of Association of the Company, as a Director

4 To re-appoint Messrs PricewaterhouseCoopers, Chartered

Accountants, as Auditors of the Company and to authorize the
Directors to fix their remuneration.

5 To authorize the Directors to determine donations for the year

ending 31st March 2017 and up to the date of the next Annual
General Meeting.
In witness my/our* hands this . day of . Two Thousand and Sixteen
*Please delete as appropriate

..
Signature of Shareholder/s

Notes: 1. A proxy need not be a Shareholder of the Company.

2. Instructions as to completion appear below.
FORM OF PROXY (contd.)

INSTRUCTIONS FOR COMPLETION

1. Kindly perfect the Form of Proxy by filling in legibly your full name
address and the National Identity Card number and signing in the
space provided and filling in the date of signature.

2. The completed Form of Proxy should be deposited at the Registered

Office of the Company, Unit 603, 4th Floor, Unity Plaza Building,
No. 2, Galle Road, Colombo 04 not later than forty seven (47) hours
prior to the time appointed for the Meeting.

3. If you wish to appoint a person other than the Chairman or a Director

of the Company as your Proxy, please insert the relevant details in
the space provided (above the names of the Board of Directors) on
the Proxy Form..

4. If the Form of Proxy is signed by an Attorney, the relative Power of

Attorney should accompany the Form of Proxy for registration if
such Power of Attorney has not already been registered with the
Company.

5. If the appointer is a Company / Incorporated body this Form must

be executed in accordance with the Articles of Association / Statute.