WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 1

2 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 3
Introduction Governance & compliance
About Us 4 Annual Report of the Board of Directors on the 116
Our Journey of Growth 10 Affairs of the Company
Our Social & Economic Impact 12 Report of The Remuneration Committee 121
Awards and Accolades 14 Nominations and Governance Committee 123
Report of The Audit Committee 124

Leadership & strategy Report of The Related Party Transactions Review

Committee
127

Financial Highlights 15 Statement of Directors’ Responsibility 129

Non-Financial Highlights 16 Directors’ and Financial Controller’s Responsibility 130
About the Report 17 Statement
Message from the Chairman 19 GRI Content Index 132
Message from the CEO 22 SASB Standard 146
Board of Directors 25
Corporate Management Team 30 Financial information
Corporate Governance 34
Financial Calendar 149
Independent Auditors Report 150
Performance review Consolidated Statement of Profit or Loss 155
Consolidated Statement of Other 156
The Strategic Report 58 Comprehensive Income
Stakeholders Engagement 60 Consolidated Statement of Financial Position 157
Determining Material Issues 62 Statement of Changes in Equity - Group 159
Determining Material Topics 63 Statement of Changes in Equity - Company 160
Sustainability Integrating 66 Consolidated Statement of Cash Flows 161
Risk Management 69 Notes to the Financial Statement 162
Operating Environment 77
Financial Capital 83
Social And Relationship Capital 86 Supplementary information
Human Capital 91
Manufactured Capital 97 Number Of Permanent Buildings Available as At 230
Intellectual Capital 100 31.03.2024
Natural Capital 103 Estate Hectarage Statement 231
Crop & Yields 232
Historical Financial Information 233
Investor Information 239
Glossary 242
Notice of Meeting 246
Form of Proxy 249
Corporate Information 251
4 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

About Us
A member of the Sunshine Group, Watawala Plantations PLC (WATA) is an agri-business company focused on palm oil and
dairy operations. Apart from palm oil and dairy, the company also has a diversified portfolio of field crops including tea,
rubber, coconut and cinnamon among others. The company is Sri Lanka’s largest and only RSPO (Roundtable on Sustainable
Palm Oil) certified palm oil producer.

Core Business Activities

GRI 2-6

Cultivation of oil palm and production and sale of palm oil

Cultivation Palm Oil Sale of

of Oil Palm Production Palm Oil

3 Estates with a total 120,000 MT Sale of crude palm oil,

extent of 3,393.27 Ha milling Capacity palm kernel oil and palm
kernel cake to bulk palm
oil buyers in Sri Lanka

RSPO Certified Process

Our presence along the palm oil value chain

Production of Fresh Milk

Dairy Milking Storing Sale

Farming Milk of Milk

1732 Herd Automated 23,000 liters of Sale of fresh milk

strength milking parlour milk chilling and to bulk buyers of
storing capacity milk

Our presence along the dairy value chain

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 5

Location Revenue Contribution FY 23/24

Dairy

Palm Oil
83%
Lonach Estate
Ginigathhena

Milk
Watawala Dairy Farm

17%
Udugama Region
Nakiyadeniya 1,371.84 Ha & palm oil mill
Homadola 668.85 Ha
Talangaha 1,352.56 Ha

Palm Oil
6 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Non-core Business Activities

Cinnamon Cultivation
Tea Cultivation
and Processing

The Group cultivates 136.46 Ha of high The group’s cinnamon cultivation extends
and low grown tea across three estates. across 119.97 Ha of its four estates. The
Company also operates a cinnamon
peeling and processing facility at
E state T ea Extent
Homadola Estate producing a variety of
Homadola Low Country 5 4.2 Ha cinnamon grades, cinnamon oil and
Talangaha Low Country 11.26 Ha cinnamon cut quills for bulk buyers across
Lonach U p Country 71 Ha Sri Lanka.

Coconut Cultivation Rubber Cultivation

Coconut is cultivated on 27.68 Ha in Rubber is cultivated on 139.8 Ha across

Homadola and Royston Estates and sold in two estates, Homadola and Nakiyadeniya.
bulk to buyers across Sri Lanka.

Bungalow Rental Maize Baling

WATA owns and operates two luxury The company operates a maize baling
estate bungalows which is rented out to center at Hulannuge. Maize silage is sold
foreign and local tourists. to Group Company Watawala Dairy for
Cattle feed.

Lonach Stokesland

Land Distribution by Crop

Tea 3%

Rubber 4% Oil Palm

89%
Cinnamon 3%
Coconut 1%
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 7

Our Commitment to Quality

Our commitment to ensuring excellence in all aspects of our operation is reflective from the wide range of product and
process certifications and accreditations we have obtained. This commitment to excellence is one of our key differentiators.
8 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 9

SBI Ven Holdings Pte. Ltd

10 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Our Journey
of Growth
WATA’s success is
characterized by its ability to
make bold strategic moves
and it’s unrelenting focus on
driving quality. Key milestones
from our journey thus far are
highlighted below;
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 11
12 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Our Social & Economic Impact

WATA contributes to the socio-economic development of Sri Lanka through its multi-faceted business operation as well as its
firm commitment to empowering rural communities across its value chains.

Direct Economic Impact

6 GRI 201-1

Statement of value added

As at 31 March (Rs.. Mn)

Group Company

2023/24 2022/23 2023/24 2022/23

Total revenue 8,321 8,768 6,867 7,574

Other Income 61 (35) (156) (489)

Finance income 184 139 220 126
Gain on changes in fair value of 40 (132) (15) 14
biological assets
Administration and establishment (4,002) (4,675) (2,600) (3,587)
expenses
Value Addition 4,604 4,065 4,316 3,638

Sustainable livelihoods
WATA generates both direct and indirect employment opportunities with employment to 1,709 individuals in the Company.
In addition to creating livelihoods the company continues to invest in the socio-economic development of its communities
through ongoing community investments.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 13

Distribution of Value Added

14 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Awards and Accolades

WATA has been the recipient of a multitude of awards and accolades over the years, a true testament to our steadfast
commitment to excellence in all aspects of its operation.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 15

Financial Highlights
Financial Performance FY 2024/23 FY 2022/23 %
Revenue Rs. Mn 8,321 8,768 -5%
Gross Profit Margin % 38% 40% -5%
Operating Profit Rs. Mn 2,661 2,931 -9%
Profit before Tax Rs. Mn 2,766 2,953 -6%
Net Profit Rs. Mn 2,345 2,332 1%
Basic Earnings per share Rs. 11.60 11.63 0%
Cash flow from Operations Rs. Mn 3,786 2,730 39%
Interest Cover Time 34 25 36%
Return on Equity (ROE) % 38% 36% 6%
Return on Capital Employed ( ROCE) % 32% 37% -14%

Financial Position
Total Assets Rs. Mn 9,431 8,834 7%
Total Debt Rs. Mn 533 277 92%
Total Shareholder Funds Rs. Mn 6,189 6,280 -1%
Net Assets Per Share Rs. 30.44 30.89 -1%
Debt/Equity Ratio % 9% 4% 125%
Debt/Total Assets % 6% 3% 100%
Current Ratio % 2.28 2.86 -20%
Quick Asset Ratio % 1.82 1.86 -2%

Market/ Shareholder Information

Market Price per share on 31st March Rs. 88.70 74.50 19%
Market Capitalization Rs. Mn 18,033 15,146 19%
Enterprise Value Rs. Mn 18,059 14,848 22%
Price Earnings Ratio Times 7.65 6.41 19%
Dividend Payout % 103% 120% -35%
Dividend Per Share Rs. 12.00 14.00 -14%
Dividend Yield % 14% 19% -26%

1% 7% 19%
Market
PAT Total Asset
Capitalization
Growth Growth
Growth
16 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Non-Financial Highlights
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 17

About the Report

Watawala Plantations PLC and its Report for the period ending 31st
Reporting subsidiaries (herein after referred to March 2023.

Frameworks as the “Group”) present herewith its

Restatement of Information
Adopted
9th Integrated Report, a balanced and
comprehensive review of the Group’s GRI 2-4
financial, social and environmental
There was no restatement of
Financial Reporting performance and impacts during the
information from the previous
year.
reporting period April 1st 2022 to 31st
• Sri Lanka Accounting
Standards (SLFRS/LKAS) Scope and Boundary March 2023.
issued by CA Sri Lanka GRI 2-2 External Assurance
• Companies Act No. 7 of GRI 2-5
The report covers the operations of
2007
Watawala Plantations PLC and its
External assurance on financial
• Listing Rules of the Colombo subsidiary Watawala Dairy Limited.
information contained in this report
Stock Exchange (CSE) Financial and sustainability data have
has been obtained by independent
• Securities and Exchange been collected from all operational
external auditor Messrs KPMG,
Commission of Sri Lanka locations including subsidiaries and
Chartered Accountants. The assurance
(SEC) Act No. 19 of 2021 presented in consolidated form. In
report is set out in page 150 of this
instances where consolidation is not
report.
possible it is clearly stated thus at
Sustainability Reporting
the point of disclosure. We apply the Forward- looking statements
• GRI Standards 2021- principle of materiality in determining This report contains forward-looking
Referencing Option content for our Integrated Report. statements, which are based on
This report therefore focuses on issues reasonable assumptions by the
• IIRC International Integrated
that have a material impact on our
Reporting Framework management. However, there can be
ability to deliver sustainable value to no assurance that forward-looking
shareholders and key stakeholders. statements will prove to be accurate
Corporate Governance The process for determining material and Watawala Plantations PLC
issues is detailed on page 62 of this undertakes no obligation to update
• Listing Requirements of the Report, along with the material topics or be accountable for forward-looking
Colombo Stock Exchange on page 62. statements in circumstances should
• Code of Best Practice on change.
Reporting Period and Frequency
Corporate Governance
issued by the CA Sri Lanka GRI 2-3
and SEC
This report covers the period from 1st
April 2023 to 31st March 2024 which is
the Group’s annual reporting cycle and
builds on the Group’s previous Annual
18 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Navigating our Report

Throughout the report we have sought to describe how we have created value for
our stakeholders by leveraging our capitals. The following icons have been used to
highlight the capital-linkages and to improve readability

Directors’ Responsibility
Feedback Watawala Plantations PLC’s Board of Directors acknowledges ultimate
responsibility for ensuring the integrity of this Report. We hereby
confirm that this Report addresses all relevant material matters and
We value your feedback as fairly represents the Group’s integrated performance. The Report is
it enables us to continuously
approved and authorized for publication.
improve our reporting and
encourage your comments to: Signed on behalf of the Board,

Mr. Dhammika Laksiri

Financial Controller
Watawala Plantations PLC Sunil G Wijesinha
Phone: +94 11 477 2505 Chairman
e-mail: dhammika.laksiri@
29th May 2024
sunshineholdings.lk
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 19

Chairman’s Message
FY 2023/24 was a challenging
year amidst a painful but essential
economic reform program
implemented by the Government
to stabilize a flailing economy.
Notwithstanding these challenging
conditions, your company performed
well, recording a PAT of Rs.. 2.3
Billion and declaring a total dividend
of Rs..15 per share for the financial
year ended 31 March 2024. The
resolute performance despite the
challenges is a testament to the
Group’s dynamic strategy and
operational prowess.

Operating Context
After six consecutive quarters of
negative growth, Sri Lanka’s economy
displayed tentative signs of recovery
in 2023, with the economic reform
programme implemented by the Sri
Lankan authorities yielding notable
results, particularly towards the
latter part of the year. GDP recorded
positive growth in the third and
fourth quarters of 2023, resulting in
supported the appreciation of the impacted disposable income levels,
the annual contraction being limited
Sri Lankan Rupee and stabilised the negatively impacting demand
to 2.3% compared to the significant
exchange rate following significant conditions in our key sectors. Sourcing
contraction of 7.3% observed in 2022.
volatility in 2022. Meanwhile, Interest critical inputs such as animal feed
Domestic inflation meanwhile declined
rates were adjusted downward by remained a challenge during the
significantly, reaching single digits in
the Central Bank of Sri Lanka (CBSL) early part of the year due to import
July 2023 after the historically high
in response to easing inflationary restrictions, although this settled with
levels that prevailed in 2022. Foreign
pressures. the easing of restrictions. The removal
exchange liquidity pressures eased
of these restrictions commencing
after the International Monetary Fund’s The progress achieved in stabilizing
June 2023 meanwhile contributed to
Extended Fund Facility (IMF-EFF) macroeconomic fundamentals is
a dampening of prices, particularly in
approval in March 2023, continuing commendable; however, as expected,
the palm oil sector. Upward revision
import restrictions and increased the reform programme has been
of energy prices also contributed
inflows from export proceeds, workers’ painful, with reverberating impacts on
to higher energy costs across our
remittances and tourist earnings. The the Group’s operating environment.
gradual easing of liquidity conditions Income tax and VAT rate adjustments
20 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

operations. operation to consolidate its market financial year and earned Rs.. 50
position further. Million by sale of RSPO credits in FY
Driving sustainable Growth 2023/24.
Having successfully overcome the ESG Focus
challenges of fertilizer and cattle feed As a responsible corporate entity, We reinforced our long-term
shortages in FY 2022/23, we shifted environmental, social and governance commitment to our communities,
our focus to increasing yields and considerations have always been a part including estate communities, during
quality in our core operations during of our business strategy. An articulated the year with a structured “CSR and
the year. As discussed further in the environmental sustainability policy and Village Integration Strategy” launched
CEO’s review, efforts to this end specific environmental management during the year. This multi-faceted
resulted in notable yield increases in targets that go well beyond strategy aims to create lasting bonds
oil palm and dairy segments during regulatory requirements ensure that with our communities through
the year. We have long understood the environmental best practices are impactful CSR and village integration
need to diversify our revenue bases to incorporated into all aspects of our initiatives in healthcare, sports and
build resilience against economic and operation. As an RSPO (Round Table fitness, education and community
regulatory uncertainties. Therefore, for Sustainable Palm Oil) certified engagement. During the financial year
efforts to develop a diversified pool operation, WATA is committed to 2023/24, such integration activities
of crops continued during the year, conserving, protecting, and enhancing benefited over 8,543 beneficiaries.
with resources being allocated to ecosystems within and surrounding
Governance Aspects
ancillary crops such as tea, rubber, its operations and ensuring oil
Strong governance is a hallmark of
coconut and cinnamon. We also palm’s responsible cultivation and
our operation and has been one
continued exploring opportunities processing. We do so by adopting
of the key reasons for us to remain
to move up the agri-business value sustainable agricultural practices and
resilient amidst volatility. During
chain by establishing a state-of-the- taking proactive action to preserve
the year, several changes to the
art Cinnamon Processing factory the biodiversity in our surrounding
Corporate Governance landscape
in Udugama, Galle. In addition to areas. Resource circularity is practised
were brought about by regulatory
strengthening our presence in the extensively, and we produced over
authorities, including changes to
lucrative Ceylon Cinnamon segment, 1,618 tonnes of compost for our
listing rules issued by the Securities
we expect this initiative to play an plantations at our compost production
and Exchange Commission, revisions
essential role in enhancing the quality facility at Nakiyadeniya from organic
to the Code of Best Practice on
of cinnamon exports from the country by-products from our dairy operation.
Corporate Governance by the Institute
by setting a benchmark for smaller We are exploring novel technology
of Chartered Accountants of Sri Lanka
producers. to improve our effluent management
and the issue of SLFRS Sustainability
system, thereby minimizing the
Strategic interventions to the Standards by the institute of Chartered
negative impact of Palm Oil Mill
management and operational accountants. The Board has carefully
Effluents (POME) on the environment.
structure of Watawala Dairy reviewed these changes and plans to
implemented during the previous We remain committed to moving
comply with them in full by the dates
two years have also started to bear towards greener energy sources and
specified therein.
fruit, with the company witnessing a continue to explore renewable energy
notable improvement in performance sources to meet our energy needs. We also continued to strengthen our
during the year. With the Government 96% of our energy requirement in governance and risk management
recognizing the dairy industry as a the palm oil milling operation is met
processes and practices. A critical
priority sector for development, we through biomass generated from fresh
development during the year was
see significant growth potential. We fruit bunch waste. WATA commenced
the appointment of an Internal Audit
will continue investing in our dairy the sale of RSPO credits during the
& Compliance Officer at Sunshine
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 21

Holdings with an overall mandate once again urge the authorities to which enabled the group to
to strengthen governance and consider science-based evidence successfully navigate a challenging
compliance. In-house and external and take definitive policy action year. To our employees, my heartfelt
training is also provided to employees accordingly. Other challenges prevail; appreciation for their inspiring
on various aspects of corporate the proposed plantation sector wage- dedication and drive. Last but not
governance and risk management. hike will likely impact profitability in least, I take this opportunity to thank
Meanwhile, several of our managers the upcoming year. Meanwhile, with all our valuable stakeholders, including
have participated in overseas training WATA’s current tax exemption on shareholders, customers, suppliers,
programmes in Malaysia as part of agriculture income which expired on and other partners, for continuing to
our on-going efforts to incorporate 31 March 2024, profitability will likely believe in us.
best practices into all aspects of our be pressured further.
operation.
Acknowledgements
Future Focus Finally, I sincerely appreciate my Sunil G Wijesinha
As the economy gradually moves colleagues on the board for their
Chairman
beyond its recovery phase, the palm unstinted guidance and support. On
29 May 2024
oil and dairy industries have the behalf of the board, I congratulate
potential to play a significant role the group’s leadership team and
in driving growth through import acknowledge their untiring efforts,
substitution, employment generation
and value chain development.
Therefore, we are excited about our
prospects and remain focused on
driving sustainable growth to create

“Strong governance
multi-stakeholder value. With ESG
considerations increasingly driving

is a hallmark of our
consumer sentiments, our long-term
focus on sustainable practices ideally

operation and has

places us to become the preferred
producer in the segments we operate
in.

A key constraint in been one of the

key reasons for us
our growth trajectory,
however, is the

to remain resilient
continuation of the ban
on oil palm cultivation.
While we face no immediate
threat due to the age of our
oil palm plantation, long-term amidst volatility”
prospects not only for WATA
but also for the plantation
industry as a whole are impacted
by policy inconsistency regarding
oil palm cultivation. We therefore,
22 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

CEO’s Message
Dear Shareholder,

As discussed in detail in our

Chairman’s review, the operating
environment remained challenging
during the year, exerting significant
pressure on the Group’s operations
and financial performance.
Notwithstanding these challenging
operating conditions, we remained
steadfast in our commitment towards
achieving operational excellence
and building long-term resilience.
Notable increases in both crop and
milk yields were achieved during the
year as a direct result of efforts to
enhance productivity and efficiency.
Our automation and our diversification
strategies will continue to reap
benefits in terms of higher revenue
and broader market presence in years
other hand increased by 22% to Rs.. 2022. Consequently, Group Operating
to come. Our sustainability ethos that
1,454 million in FY 2023/24 supported profits witnessed a 9% decline to
permeates through everything we
by an increase in both volume and Rs.. 2,661 Million during the year.
do meanwhile continued to enhance
price. Notwithstanding these challenges the
stakeholder value whilst setting the
Group recorded a PAT of Rs.. 2,345
stage for future growth opportunities. Gross profits at Group level amounted
Million for the FY 2023/24 as compared
to Rs.. 3,155 Million, a 11% decline
Financial performance compared to FY 2022/23. The decrease
to a PAT of Rs.. 2,332 Million in FY
2022/23.
Amidst the challenging operating was mainly due to lower margins in the
conditions that prevailed during the oil palm sector as a result of the sharp Strategic Focus in FY
year, Group revenue decreased by 5% decline in prices during the year. The 2023/24
to Rs.. 8,321 Million in FY 2023/24. The dairy sector meanwhile recorded a With declining prices and cost
dip in revenue was mainly on account notable improvement in margins due increases continuing to pressure
of a 9% decline in revenue in the to the increased availability of cattle margins in the palm oil segment, we
plantation sector. Despite a notable feed in the second half of the year and remained focused on maximizing
increase in yields per hectare and total the resultant reduction in cost and yields from our existing oil palm extent
crop during the year, revenue from the increase in milk yield. through efficiency and productivity
oil palm sector declined to Rs.. 6,867
gains. To this end we continued to
Million in FY 23/24 as compared to Operating margins continued to be
adopt agricultural best practices,
Rs.. 7,574 Million in FY 22/23 due to a impacted by the decline in selling
introducing several best practices
sharp drop in palm oil prices during price of palm oil and the inclusion of
such as palm sanitization program
the year. Dairy sector revenue on the the Social Security Contribution Levy
to enhance yields and quality of
which came into effect in October
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 23

our crops. As a result of these developed plantation sector specific to positively impact our financial
efforts WATA recorded its highest digital platform. The implementation performance in the forthcoming year.
ever oil palm yield of 16.8 MT per of the ERP platform will enable us to
Despite these positive developments,
hectare during the financial year FY further streamline our operation with
policy inconsistency, particularly in
2023/24. Several improvements to access to critical real-time information
relation to the cultivation of oil palm
mill infrastructure were also carried thereby resulting in significant cost
remains a key challenge, hampering
out to increase processing efficiency savings, greater transparency of
the significant growth potential of
and product quality. Meanwhile, we field operations, better planning of
the oil palm sector. We therefore
also continued with our efforts to operations and improved harvesting
urge the relevant authorities to take a
develop ancillary crops such as tea, cycles. The implementation of
holistic view of the industry, and take a
rubber coconut and cinnamon as “iharvest” meanwhile will connect
decisive step in the right direction.
part of our ongoing diversification us to a growing digitally enabled
drive. A key achievement during the plantation eco-system to collectively Going forward we remain focused
year was the opening of our state-of- address common issues facing on our multi-pronged strategy of
the-art cinnamon processing center the sector and drive the next- maximizing yields in core crops while
in Udugama, Galle. The cinnamon level transformation in Sri Lanka’s actively pursuing diversification
processing center which follows good agriculture sector. opportunities in growth industries such
manufacturing practices signifies as the dairy business and cinnamon
Increasing labour productivity and
our foray into the cinnamon value- value-added business. We will also
retaining skilled workers within
added segment and is expected to continue to hone our operation to put
the industry remains a key priority
bring about significant returns in the sustainability front and center of all we
amidst growing concerns of labour
upcoming years. do.
shortages. Accordingly, we focused on
In our dairy operation too we targeted skill development programs Acknowledgements
continued to focus on improving yields for employees at all levels in both
In closing I wish to take this
and quality by improving cattle health the plantation and dairy sectors.
opportunity to place on record my
and nutrition. During the year several Meanwhile, several team building
sincere appreciation to the Chairman
investments were made to improve exercises were carried out throughout
and Board of Directors for their
the conditions of cattle sheds to the year to further enhance our
consistent support and guidance. I
further improve the living conditions of employee value proposition.
also extend my heartfelt appreciation
cattle. Meanwhile, as part of our long-
term efforts to build a high-quality
Outlook to our management team and
employees for their untiring dedication
replacement herd we expanded our With the Sri Lankan economy
and commitment. Our performance as
heifer herd during the year. Efficient starting to show tangible signs of
a Group is a reflection of your efforts.
management of feed operations recovery towards the end of 2023,
Last but not least I wish to thank our
remained a key focus amidst rising we are confident of our prospects
business partners, shareholders and
feed prices and several improvements for FY 2024/25 and beyond. The
other stakeholders who continue to
were also carried out to increase stabilization of macro- economic
stand with us. Your confidence in us,
efficiency and better manage our feed fundamentals is expected to reduce
drives us to achieve greater heights.
operations. inflationary pressures and positively
impact demand conditions in both
We also progressed on our digitization the plantation and dairy sectors
drive during the year, with the in the short to medium term. The
V Govindasamy
implementation of SAP Business One downward trend in fertilizer prices
HANA Enterprise Resource Planning Director / Acting CEO
too is encouraging and is expected
(ERP) platform and iHarvest, a locally 29 May 2024
24 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 25

Board of Directors

Mr. Sunil G. Wijesinha Mr. V. Govindasamy Mr. M. S. Mawzoon

Chairman Director Director

Mr. S. G. Sathasivam Mr. H. D. Abeywickrama Mr. M. R. Rao

Director Director Director

Mr. A. R. Rasiah Mr. M. R. Mihular Mr. M.T. Siddique

Director Director Director

Mr. A. Herath
Director
26 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Board of Directors
Name Mr. Sunil G. Wijesinha Mr. V. Govindasamy Mr. M. S. Mawzoon

Position Chairman Director Director

Status Non-Executive/Independent Non Executive/ Non-Executive/

Non-Independent Non-Independent

Age 74 Years 60 Years 53 Years

Qualifications/ MBA from Postgraduate Holds a MBA from Thirty one years experience in
Business Institute of Management, University of Hartford, USA. various business industries.
University of Sri
Experience Jayawardenapura. Bachelor of Science in
Electrical Engineering,
Fellow Member of the University of Hartford,USA.
Chartered Institute of
Management Accountants Fellow Member of the Institute of
(UK). Certified Professional Managers of Sri
Lanka.
Fellow Member of the
Institute of Management
Services (UK).

Associate Member of the Institution of

Engineers, Sri Lanka.

Other Key Past President Past Chairman Managing Director

Positions National Chamber of Commerce of Sri Employers Federation of Ceylon Pyramid Wilmar (Pvt)Ltd.
Lanka The Ceylon Chamber of Commerce Pyramid Wilmar Oils & Fats (Pvt) Ltd.
Pyramid Lanka (Pvt) Ltd.
Past Chairman Deputy Chairman
Employers’ Federation of Ceylon Sunshine Holdings PLC Chairman / Director
Pyramid Wilmar Plantations (Pvt) Ltd.
Chairman Chairman / Director Wressle Holdings (Pvt) Ltd.
Watawala Dairy Ltd. Healthguard Pharmacy Limited Pyramid Holdings (Pvt) Ltd.
RIL Property PLC Sunshine Healthcare Lanka Limited Sunshine Wilmar (Pvt) Ltd.
SC Securities (Pvt) Ltd. Sunshine Consumer Lanka Limited Watawala Dairy Limited
Watawala Dairy Limited Joyspree Lanka Holdings (Pvt) Ltd.
Director
Sunshine Wilmar (Private) Limited Pyramid Gama (Pvt) Ltd.
BizEx Consulting (Pvt) Ltd.
Sunshine Foundation for Good Perennial Real Estate Lanka (Pvt) Ltd.
Sampath Centre Ltd.
Tata Communications Lanka Limited P R E H Properties (Pvt) Ltd.
TAL Lanka Hotels PLC Shangri-La Hotels Lanka (Pvt) Ltd.
Ceylon Property Development Limited Shangri-La Investments Lanka (Pvt)
Softlogic Life Insurance PLC Ltd.
1990 Suwaseriya Foundation One Galle Face Property
Sunshine Tea (Private) Limited Management (Pvt) Ltd.
Lanka Island Resorts Ltd. The Phone Company (Pvt) Ltd.
Pyramid Oils and Logistics (Pvt) Ltd.
Pyramid Oil Mills (Pvt) Ltd.
Pyramid Warehousing (Pvt) Ltd.
Forture Green (Pvt) Ltd.
Melsta Gama (Pvt) Ltd.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 27

Mr. S. G. Sathasivam Mr. H.D. Abeywickrama Mr. M.R. Rao

Director Director Director

Non-Executive/ Non-Executive/Independent Non-Executive/ Non- Independent

Non-Independent

46 Years 63 Years 72 Years

Holds a MBA from Kellogg School of Graduate of the Air Command Fellow member of the Institute of Chartered
Management, Northwestern University, USA & Staff College at Air University, Accountants of India.
Maxwell Air Force Base, Alabama,
Graduated from the London School of USA. Commerce graduate from Mumbai University.
Economics & Political Science, UK
Graduate of the Royal College of
Defense Studies, London UK.

Master of Arts degree in International

Studies from King’s College, the
University of London.

Master of Science degree in

Management from the Kotalawala
Defense University, Sri Lanka.

Former President Director Director

Sri Lanka Chamber of Pharmaceutical Industry Watawala Dairy Limited Shree Renuka Sugars Limited
(SLCPI) Brandix Lanka Limited Adani Wilmar Limited
Capitol Towers Limited Gokak Sugars Limited
Committee Member GMR Hyderabad International Airport Limited
Ceylon Chamber of Commerce (CCC) Sumeru Global Holdings and Services (Private) Limited
Sumeru Software Solutions (Private) Limited
Group CEO / Director Pyramid Lanka (Private) Limited
Sunshine Holdings PLC Pyramid Wilmar (Private) Limited
Pyramid Wilmar Oils & Fats (Private) Limited
Director
Wilmar Tea Lanka (Pvt) Ltd.
Healthguard Pharmacy Limited
Perennial Real Estate Lanka (Private) Limited
Sunshine Healthcare Lanka Limited
PREH Properties (Private) Limited
Lina Manufacturing (Private) Limited
Sunshine Wilmar (Private) Limited
Lina Spiro (Private) Limited
Orion Fund Pte. Ltd..
Norris Canal Properties (Private) Limited
Orion Fund II Pte. Ltd.
Sunshine Packaging Lanka Limited
Art of Living Foundation Ltd.., Australia
Sunshine Consumer Lanka Limited
Sunshine Wilmar (Private) Limited Commissioner
Lamurep Investments Limited PT Gold Energy Mines Ltd..
Lamurep Properties Limited
Trustee
Sunshine Tea (Private) Limited
The Art of Living, India
Century Properties Limited
28 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Name Mr. A. R. Rasiah Mr. M. R. Mihular Mr. M. T. Siddique

Position Director Director Director

(Appointed w.e.f. 12 Dec 2023)" (Appointed w.e.f. 12 Dec 2023)

Status Non-Executive/Independent Non-Executive/Independent Non-Executive /Independent

Age 78 Years 67 Years 34 Years

Qualifications/ Fellow Member of the Institute of Fellow Member of the Institute of Holds a Bachelor's (Honours) in Finance
Business Chartered Accountants of Sri Lanka Chartered Accountants of Sri Lanka and Accounting from the University of
Experience and is a Fellow Member of the Nottingham. Member of the Association
Finalist of the Institute of Chartered Chartered Institute of Management of Chartered Certified Accountants.
Management Accountants (UK) Accountants (CIMA) – UK. Associate Member at Sri Lanka Institute
Completed International Executive of Directors and Member at International
Forty year experience in Finance Education programs at INSEAD, Chamber of Commerce.
France, Harvard Business School
and the London Business School,
UK. Has over 45 years of industry
experience.

Other Key Chairman Chairman Director

Positions Hela Group of Companies Bairaha Farms PLC Pyramid Wilmar (Pvt) Ltd.
Fortune Green (Pvt) Ltd.
Director Director
Pyramid Holdings (Pvt) Ltd.
Sunshine Tea (Pvt) Ltd. Melstacorp PLC
Melsta Gama (Pvt) Ltd.
Gestetner of Ceylon PLC Sunshine Holdings PLC
Pyramid Gama (Pvt) Ltd.
Clindata Lanka (Pvt)Ltd. Sunshine Tea (Pvt ) Ltd.
Synteract Lanka (Pvt) Ltd. LTL Holdings Ltd. Alternate Director
Fintek Managed Solutions (Pvt) Ltd. DAMRO Holdings Ltd. Sunshine Wilmar (Private) Limited
E. B. Creasy & Co. PLC Nestle Lanka Limited Perennial Real Estate Lanka (Pvt) Ltd.
The Colombo Fort Land & Building Agility Innovation (Pvt) Ltd. P R E H Properties (Pvt) Ltd.
Company PLC
Past Positions Chief Operating Officer
Gordon Frazer Bosanquet and
Chairman-Middle East and South Pyramid Lanka (Pvt) Ltd.
Skrine Limited
Asia Regional Board at KPMG, Pyramid Wilmar Oils & Fats (Pvt) Ltd.
Century Properties Limited
Director at the International Pyramid Wilmar Plantations (Pvt) Ltd.
Accounting Standards Board,
Director at The International Ethics
Standards Board for Accountants,
President & Member at Chartered
Institute of Management
Accountants (Sri Lanka), Managing
Partner at KPMG Sri Lanka,
Managing Partner at KPMG
Maldives, and Member-Global
Council at KPMG International Ltd..
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 29

Mr. A. Herath Mr. N. B. Weerasekera Mr. L. C. Leong

"Director Director Director

(Appointed w.e.f. 12 Dec 2023)" (Resigned w.e.f. 18 Nov 2023) (Resigned w.e.f. 5 Dec 2023)

Non-Executive/Independent Non-Executive/Independent Non-Executive/Non-Independent

60 Years 64 Years 50 Years

Fellow member of the Institute of Chartered Thirty nine years in Business Management and Bachelor of Accountancy - Nanyang
Accountants of Sri Lanka, Chartered Global Finance Technological University
Management Accountant, Bachelor of Science
degree from the University of Colombo, Fellow Member of the Chartered Institute of Chartered Accountant - Institute of
MBA from the University of Strathclyde in Management Accountants, UK. Singapore Chartered Accountants
the United Kingdom and a Master of Arts in
Financial Economics from the University of MA in Economics from University of Colombo
Colombo. Has over 30 years of experience as
a Chartered Accountant. BSc (Hons) in Physics from the University of
Peradeniya

Former Ernst and Young (EY) Senior Partner

and Head of Consulting for Sri Lanka and
Maldives.

Director
Colombo Stock Exchange
Central Depository System (Pvt) Ltd.
SYNAPSYS Ltd.
Durdans Medical and Surgical Hospitals (Pvt)
Ltd.
Cargills Bank Limited
Senkadagala Finance PLC
30 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Corporate Management Team

Vish Govindasamy to plantations, manufacturing,
(Acting Chief Executive Officer) Information Technology and Assurance Thanushka Kaluwa Handi
& Advisory services for over 24 years.
Professional with a distinguished (Senior Manager – Mill Operations,
He is a Fellow CA member with B.
career spanning over several decades, Watawala Plantations)
Sc. (Accountancy) Sp. (Hons) from
holds an MBA and a Bachelor of Thanushka counts 18 years’ experience
University of Sri Jayewardenapura.
Science in Electrical Engineering from in the field of Process Engineering
the University of Hartford, USA. He is in manufacturing organizations. He
a Fellow Member of the Institute of Gayan Dehideniya holds a B.Sc. (Eng) from the University
Certified Professional Managers of Sri (Senior HR Business Partner of Moratuwa specialized in Chemical
Lanka, highlighting his commitment to – Watawala Plantations & & Process Engineering. He started
excellence in management. At 60 years Watawala Dairy) his career as a Management Trainee
old, he brings a wealth of experience Gayan is an HR generalist with over at Pelawatte Sugar Industries Ltd. In
and expertise to our organization. 11 years of experience in multiple 2005 and was appointed a Chemical
His previous roles include Chairman industries. He gained experience in Engineer.
of the Employers Federation of construction, apparel manufacturing He joined Watawala in 2007 as
Ceylon and the Ceylon Chamber and retail industries throughout his the Assistant Mill Engineer. He
of Commerce. Currently, he serves career. His Masters in Human Resource holds a Diploma in Manufacturing
as Deputy Chairman of Sunshine Management and Bachelors in Human Management from NIBM, and is
Holdings PLC and holds chairmanship Resource Development provides presently reading for an MBA from the
and directorship positions in him with a solid background for his University of Ruhuna.
numerous companies, including career in the HR field. Exposure in
Healthguard Pharmacy Limited, multiple industries has given him the
Sunshine Healthcare Lanka Limited, knowledge to understand and connect Dimantha Samarasinghe
and Watawala Plantations PLC, among with people at all levels. (Senior Manager – Homadola
others. His extensive leadership Estate, Watawala Plantations)
in various sectors underscores his Counts 28 years of experience related
capability to steer our company Prasanna Premachandra to plantation industry both as a
towards continued success. (Deputy General Manager –
planter and an industrialist. Started
Estate Operations, Watawala
the career as a Trainee Assistant
Plantations)
Fergus Stanley Prasanna has over 26 years
Manager and rose through the
(Business Consultant, Watawala ranks of Deputy Manager, Manager
of experience in Plantations and Senior Manager. He held the
Dairy)
Management. Exposure to Tea position of General Manager at
Born on a dairy farm in Ireland and growing and manufacturing in Assam – AEN Palmoil Processing (Pvt) Ltd
with hands-on experience in setting up India and Kenya. before re-joining the plantations .He
a Dairy Farm in Estonia, Fergus is an
He holds a diploma in Human has managed every value stage of
expert in Dairy Farming. He has over
Resources Management from London rubber and oil palm i.e from planting
30 years of experience in diary farms
Business School and qualified in ,harvesting ,manufacturing to selling
and business engagements.
‘Plantation Accountancy and Financial of end product. Holds a Diploma in
Management’ and ‘Language Personal Management and Industrial
Dhammika Laksiri Proficiency’ by National Institute Relations and reading for an Msc. in
(Financial Controller Watawala of Plantation Management. He is Management at Sir John Kotelawala
Plantations & Watawala Dairy) presently reading for Bsc. In Business Defense University. Joined Watawala
Dhammika is an experienced Management at Open University of Sri in 2021.
finance professional with exposure Lanka.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 31

Management. (GNC, SWISSE, Oceans from the University of Colombo, he

Nilantha Senevirathne Health, Swiss Energy). Joined Watawala possesses a strong foundation in his
(Manager – Nakiyadeniya Estate, in 2022 to Head Corporate Brand IT career. His extensive exposure in
Watawala Plantations) Management. diverse industries equips him with the
capability to comprehend and resolve
Comments the planting carrier as
management trainee with Watawala Asanke Ekanayake a wide range of issues effectively.

Plantation from 2002 August and (Manager - Talangaha Estate,

reached to position as manager Watawala Plantations) Maheel De Silva
in the year 2019 ,with having the Asanke counts 16 years’ experience in (Internal Auditor - Watawala
professional qualification NIPM the plantation sector. He started his Plantations & Watawala Dairy)
Diploma in Agriculture, Accounting career in 2008 as a Trainee Assistant. Maheel is an experienced audit
and Financial Management, Language Manager at the Houpe Estate,Kahawatte professional counting over 20 years
Proficiency with process with Advance managed by Kahawatte Plantations of experience in Audit and Finance.
National Diploma in Human Resources PLC. He served as a Senior Assistant He currently serves as the Internal
Management at NIBM. Manager at Agalawatte Plantations Auditor. Maheel has a strong
prior to joining Watawala Plantations background in aiding organizations
Kolitha De Mel in 2017 as an assistant manager at the with the identification, understanding,
(Mill Manager - Mill Operations) Nakiyadeniya Estate. He holds a general and assessment of risks, as well as
Kolitha has over 20 year experience MBA from the Vern University, Croatia. conducting internal audit functions.
in engineering & manufacturing He is a Passed Finalist of the Institute
management in food processing both
locally & overseas. He holds a B. Eng. Kevin Jansz of Chartered Accountants of Sri
Lanka and holds membership in the
in Electrical & Electronics from the (Business Analyst / Project
Association of Accounting Technicians
University of Pacific-Central America, Manager - Watawala Plantations
(AAT) of Sri Lanka.
and an MBA & Executive MSc. in & Watawala Dairy)
Project management from Asia e Kevin holds a B.Sc. in Business
University, Malaysia. He started his Administration (Business Economics) Lasantha Weerasinghe
career at Camso Loastar as a Trainee Sp. (First Class) from the University (Manager – Royston Estate,
Engineer in 2001 and joined Watawala of Sri Jayewardenepura, and an Watawala Plantations)
in 2023 as the Mill Manager. MBA in Finance from the University Holds all-round Management and
of Bedfordshire. He is also a CIMA Administrative experience as an
passed finalist. Estate Superintendent, Manager
Positha Lokugamage Operations, and Consultant in the
(Manager Corporate Affairs He started his career at Moody’s
Analytics Knowledge Services (now plantation industry for more than 30
- Watawala Plantations &
Acuity Knowledge Partners), and years covering tea, rubber, coconut
Watawala Dairy)
supported Buy-Side and Sell-Side Asset and horticultural crops including up
Holds a Bachelor of Business (BBUS) and low country, black and green
Managers in the US and UK. He joined
Double Major in Marketing & Business tea manufacturing. Holds an M.Sc. in
Watawala in 2021.
Management (Second Upper) from Plantation Crop Management from the
the Edith Cowan University, Perth, University of Peradeniya, a B.Sc. (Hons)
Australia. Supun Priyantha Jayasekara in Plantation Management from the
Joined Sunshine Holdings PLC as an (IT Business Partner - Watawala Wayamba University.
Assistant Manager of Digital Marketing Plantations & Watawala Dairy)
(to manage digital platforms in Supun is an experienced IT professional
Healthguard Retail Stores), and moved with over a decade of experience
up the ladder to Head Marketing with expertise across various sectors
for Healthguard with the overall including automobile, healthcare,
management of Brand marketing, and plantations. Holding a Bachelor’s
Digital & Exclusive Product Portfolio degree in Information Technology
32 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Corporate Management Team

Vish Govindasamy Fergus Stanley Dhammika Laksiri

Acting Chief Executive Officer Business consultant, Financial Controller - Watawala
Watawala Dairy Plantations & Watawala Dairy

Gayan Dehideniya Prasanna Premachandra Thanushka Kaluwa Handi

Senior HR Business Partnerig – Watawala Deputy General Manager - Senior Manager – Mill
Plantations & Watawala Dairy Estate Operations, Watawala Plantations Operations, Watawala Plantations

Dimantha Samarasinghe Nilantha Senevirathne Kolitha De Mel

Senior Manager – Homadola Estate, Manager – Mill Operations,
Watawala Plantations Manager – Nakiyadeniya Estate, Watawala Plantations
Watawala Plantations
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 33

Positha Lokugamage Asanke Ekanayake Kevin Jansz

(Manager Corporate Affairs - Manager - Talangaha Business Analyst / Project
Watawala Plantations Estate, Watawala Plantations Manager - Watawala Plantations
& Watawala Dairy) & Watawala Dairy

Supun Jayasekara Lasantha Weerasinghe Maheel De Silva

IT Business Partnering - Watawala Manager – Royston Estate, Internal Auditor, Watawala Plantations
Plantations & Watawala Dairy Watawala Plantations & Watawala Dairy
34 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Corporate Governance
The Board of Directors holds the
ultimate responsibility for overseeing Our Governance Changes impacting Corporate
the strategic direction, internal Structure Governance
controls, financial reporting, risk • Listing Rule #9 on Corporate Governance by
management, and operations of the the Colombo Stock Exchange with effective
Watawala Plantations PLC. Sound
dates for compliance set out for specific
corporate governance structures,
provisions from 1st October 2023 to 1st
policies, systems, and processes, along
October 2024.
with regular reporting, facilitate the
fulfillment of these duties by the Board • Issue of the revised Code of Best Practice on
while fostering a robust business
Corporate Governance 2023 by the Institute
model that consistently delivers
of Chartered Accountants of Sri Lanka
sustainable value to stakeholders.
These governance mechanisms are • Issue of SLFRS Sustainability Standards by
continuously refined to adapt to the institute of Chartered accountants which
external shifts in legal, regulatory, are effective for reporting periods beginning
and voluntary standards, as well
on or before January 2025
as internal needs, ensuring their
effectiveness in an ever-changing • The Board has reviewed the changes
operational environment. The Board required to governance structures and
is tasked with creating a governance processes and plan to comply by the dates
framework to drive sustainable growth.
specified herein.
It sets the overall strategy to increase
the company’s long-term value and
oversees its execution. By offering
Governance Framework
independent, informed, and effective
judgment and leadership in decision-
Voluntary Standards, Internal
making, the Board ensures that Regulatory
strategy, risk management, internal
Codes & Frameworks Documents
controls, performance, and sustainable • Sri Lanka Accounting • Code of Best • Articles of
development are seamlessly Standards (SLFRS/LKAS) Practice on Association
integrated and appropriately issued by CA Sri Lanka Corporate
balanced. • Board
Governance issued
• Companies Act No. 7 of Charter
by the Institute
2007
Code of Conduct and of Chartered • Code of
Ethics • Listing Rules of the Accountants 2017 Conduct
The Company’s Code of Conduct Colombo Stock Exchange
• Integrated • Policy
sets out the standard of conduct (CSE)
Reporting framework
expected of all employees. The
• Securities and Exchange Framework
Board is not aware of any material
Commission of Sri Lanka
violations of any of the provisions • Global Reporting
(SEC) Act No. 19 of 2021
of the Code of Conduct and Ethics/ Initiative Standards
Standard of Conduct by any Director
or employee of WATA.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 35

Key Governance Practices

• A balance of power established with a majority of non-executive directors of whom 5 are independent

• An Independent Non-Executive Director is the Chairman

• Annual rotation of a minimum of 1/3 of the Non-Executive Directors

• Shareholders have right to call for special meeting

Board Composition

Executive Directors 2
Non-Executive, Independent 5
Non-Executive, Non-independent 3
36 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Highlights 2023/24
Board Composition
The Board consists of 10 Directors, appointed by shareholders during the Annual General Meeting. Among them, there are
8 Non-Executive Directors, with 5 fulfilling the independence criteria outlined in Corporate Governance Listing Rule #9. This
composition of both executive and non-executive directors, along with a diverse range of skills and experiences, enables
impartial and well-informed discussions on matters brought before the Board.

No. of
Appointments
Name Shareholding Role AC RC RPTRC NGC
at Public Listed
entities
Mr. Sunil. G. Wijesinha 1 Chairman     1
Mr. V. Govindasamy
Nil Acting CEO 3

Executive,
Mr. S. G. Sathasivam Nil Non-Indepen-  1
dent Director

Non-Executive,
Mr. Sajaad Mawzoon
Nil Non-Indepen-  0
dent
Non-Executive,
Mr. Thanveer Siddique Nil Non-Indepen- 0
dent
Non-Executive,
Mr. M. Ramachandra Rao Nil Non-Indepen-  0
dent

Non-Executive,
Mr. Reyaz Mihular Nil 3
Independent

Non-Executive,
Mr. Albert Rasiah 10,000   3
Independent

Non-Executive,
Mr. Harsha Abeywickrama Nil Independent   0

Non-Executive,
Mr. Arjuna Herath Nil Independent    1

RPTRC – Related
AC – Audit Committee NGC - Nominations
Party Transaction
Chairman Member RC – Remuneration Com- and governance
Review Commit-
mittee Committee
tee

Appointments & Exits

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 37

Directors are appointed by the for independence become effective on General Meetings, Extraordinary
shareholders at the Annual General 1st October 2024 which will necessitate General Meetings, shareholder
Meeting (AGM), following a formal and changes in the classification of communications, and disclosures
transparent process. Appointments Independent Directors due to age to the Colombo Stock Exchange.
are made based on recommendations related provisions. The reclassification The appointment and dismissal of
made by the Board of Directors. will be carried out by the date Corporate Services (Private) Limited
specified in Rule #9. are decisions made collectively by the
The Nominations and Remuneration
entire Board.
Committee makes recommendations All Directors qualify against the criteria
to the Board in this regard having
Board Subcommittees
for independence as per Rule 7.10.4 of
considered the combined knowledge, the Listing Rules and the Board, based
experience and diversity of the on declarations submitted by the said
Board in relation to the Company’s Directors has determined that they are
strategic plans and any gaps thereof. Independent Directors.
In compliance with the Articles of
Association of the company, 1/3 Role of the Chairman and
of the Non-Executive Directors will CEO
retire from office on a rotational The separation of roles between the
basis at each AGM. The Nominations Chairman and CEO ensures a balanced
and Remuneration Committee distribution of power within the
recommends the Directors for re- Board. The Chairman’s responsibilities
election, and approval by the Board, encompass determining meeting
having assessed the Board’s skill frequency, setting agendas, chairing
and knowledge composition in meetings, ensuring Board members
meeting the strategic demands of are adequately informed for decision-
the company. A director appointed making, and fostering effective
by the Board to fill a casual vacancy participation among all members. On
arisen since the previous AGM, will the other hand, the Chief Executive
offer himself for re-election at the Officer is tasked with executing
next AGM. All appointments and strategies within the established
resignations are communicated to the policy framework and in adherence to
CSE. Appointment communications regulatory standards.
include a brief resume of the director.
Role of the Company
Determining Independence Secretary
of Non-Executive Directors Company secretarial services are
rendered by Corporate Services
For 2023/24, the Independence of the
(Private) Limited, who oversee the
Directors is determined by the Board
organization of meetings, distribution
based on the annual declarations
of Board documents, minute-taking,
submitted by the Non-Executive
and submission of required filings.
Directors in accordance with the
They also provide crucial guidance to
Listing Rule 7 of the Colombo Stock
directors concerning board protocols
Exchange. This is replaced by the
and legal obligations related to
Corporate Governance Rule #9 and
their roles. Furthermore, they are
provisions relating to the new criteria
entrusted with coordinating Annual
38 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Audit Committee (Refer page 124 for Audit Committee Report)

Mandate:
• Reviews the integrity of financial statements in accordance with Sri Lanka Financial Reporting Standards.
• Ensure compliance with legal and regulatory requirements of the Companies Act and other relevant financial
reporting related regulations and requirements.
• Assess the External Auditor’s independence and performance.
• Review adequacy and effectiveness of risk management

Composition: 3 Independent, non-Executive Directors, of whom two are Chartered Accountants.

Remuneration Committee (Refer page 121 for Remuneration Committee Report)

Mandate: The Committee assists the Board in determining a suitable remuneration package.

Composition: 2 Independent, Non-Executive Directors, and 1 Non-Independent, Non-Executive Director

Related Party Transactions Review Committee (Refer page 127 for Related Party Transactions Review Committee Report)

Mandate: To ensure on behalf of the Board that all Related Party Transactions of the Group are consistent with the Code
of Best Practice on Related Party Transactions issued by the SEC.

Composition: 3 Independent, Non-Executive Directors

Nomination and Governance Committee (Refer page 123 for Related Party Transactions Review Committee Report)

Mandate: To overseeing matters related to the nomination of Key Management personal including Directors, governance,
and board composition, ensuring alignment with regulatory requirements and best practices.

Composition: 3 Independent, Non-Executive Directors, 1 Non-Independent, Non-Executive director, 1 Non-Independent,

Executive director

Group Management Committee

Composition: members of the Corporate Management whose designations are given on pages 30-31

Managing conflicts of interest

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 39

Directors are required to declare their Note 36 to the financial statements on agenda of the Board.
business interests on appointment and page 220.
Key Management Personnel (KMP)
update thereafter and the Company
Secretaries maintain a register of
Effective Meetings attend Board meetings on invitation
Board meetings are held quarterly in to make presentations and update the
Directors’ Interests. Directors are
accordance with an annual calendar Board on material issues that impact
disclosed on page 25 to 29. Directors
prepared by the Company Secretaries, the business. They are also available
do not participate in the meeting when
with provision for additional meetings for clarifications that may be required
related party matters are discussed,
as maybe required. The agenda for by Board members. Board minutes are
absenting themselves from the
the meeting is determined by the circulated to members within 2 weeks
Board room for the duration of the
Chairman and the Company Secretary and are formally notified.
discussion.
with inputs where needed from the
Related party transactions are CEO. Relevant Board papers are
reviewed quarterly by the Related circulated to the Directors seven days
Party Transactions Review Committee prior to the meeting allowing sufficient
who approve the transactions and time for review and clarification.
ensure appropriate disclosures in line Performance oversight, risk
with regulatory requirements. Related management and review of financial
party transactions are disclosed in statements are regular items on the
40 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Meeting Attendance
Attendance of Directors at meetings is given below,

Date Date
Name Status Eligibility Attended
appointed Resigned

Chairman
Mr. S. G. Wijesinha 5 5
Non-Executive/ Independent

Mr. V. Govindasamy Non-Executive/ Non-Independent 5 5

Mr. M. S. Mawzoon Non-Executive/Non-Independent 5 5

Mr. N. B. Weerasekera Non-Executive/ Independent 3 2 18 Nov 2023

Mr. H. D. Abeywickrama Non-Executive/ Independent 5 5

Mr. M.R Rao Non-Executive/ Non-Independent 5 4

Mr. A. R. Rasiah Non-Executive/ Independent 5 2

Mr. C. L. Loo Non-Executive/Non-Independent 3 3 5 Dec 2023

Mr. S.G. Sathasivam Non-Executive/ Non-Independent 5 4

Mr. A Herath Non-Executive/ Independent 2 2 12 Dec 2023

Mr. M. R. Mihular Non-Executive/ Independent 2 2 12 Dec 2023

Mr. M. T. Siddique Non-Executive/ Independent 2 1 12 Dec 2023

Induction & Training for undertake training and professional year-end appraisal by the Board
Directors development by attending seminars against predetermined goals and
On appointment, Directors are workshops/conferences, participating criteria which are agreed and set
provided with an orientation pack as speakers at events, using web- with the CEO at the beginning of
with all relevant external and internal based learning resources and reading the year. Remuneration is based on
regulation documents and a tour of regulatory updates etc performance.
the estate, palm oil factory premises
Board Evaluations
and dairy farm. The Board of Directors
Evaluations
recognize the need to keep abreast
The Chairman evaluates the Board
of current developments affecting Appraisal of CEO
Members, and their independence
the sector both globally and locally The performance of the Chief periodically.
with reference to regulatory changes Executive Officer is evaluated
and the country’s economy. They twice a year, via a mid-year and
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 41

Remuneration Policy whether the potential impairment of to participate at the AGM and
The Board is assisted by the independence and objectivity of the the Chairman, Board members
Remuneration Committee in External Auditor in carrying out his and Chairpersons of Board Sub-
determining remuneration of duties and responsibilities. committees are available for discussion
Directors. The level of remuneration at the AGM and respond to questions
Oversight of Subsidiaries
reflects the experience and level of directed to them by the Chairman.
Chairman and other directors sit Additionally, KMPs of the Group are
responsibilities undertaken by the
on the Boards of subsidiaries and
Director concerned. also present to assist the directors in
provides feedback to the main Board
this regard.
Accountability & Audit on matters of concern.
The Board approved the quarterly Notice of the AGM, the Annual
Finance and Human Resources
reports prior dissemination to Report and Accounts and any
functions have regular meetings with
the public through the CSE and other resolution together with the
heads of corresponding functions
the corporate website. The Audit corresponding information that may
in the subsidiaries to ensure
Committee reviews the financial be set before the shareholders at the
harmonization and sharing of best
statements and recommends the AGM, are circulated to shareholders
practice.
financial statements for approval by minimum 15 days prior to the AGM.
the Board. The following reports set Internal audit co-ordinates with Separate resolutions for each item
out further information required by the internal auditors of the respective of business, facilitating voting on
Code: subsidiaries to ensure that audits each of such issue, separately. Voting
are conducted in line with expected procedures at the AGM are circulated
The Directors’ Report on page 129
standards and in line with the agreed to the shareholders in advance. The
(including the declaration that the
audit plans. Company has an effective mechanism
company is a going concern)
to record and count all proxy votes
Relations with Shareholders
The Statement of Directors’ lodged for each resolution. In the
Responsibility on page 129 The Group engages with Shareholders
event there are a significant proportion
through multiple channels. These
of the votes cast against a resolution,
Report of the Auditors on page 150- include the Annual General Meeting
the Board will take steps to understand
154 (AGM), annual report, interim financial
the reasons behind the vote results
statements, the Company website and
External Auditor and determine if any actions are
via the CSE’s website. Shareholders
The External Auditor is appointed required.
also have the opportunity to ask
by the shareholders at the Annual
questions, comment or make Given below is the status of
General Meeting. The Audit
suggestions to the Board through compliance with the CSE Listing Rules
Committee monitors and reviews the
the Company Secretaries and at – section 7-10 and the Code of Best
External Auditor’s independence,
the Annual General Meeting. All Practice on Corporate Governance
objectivity and the effectiveness
significant issues and concerns of issued by the Institute of Chartered
of the audit process considering
Shareholders are referred to the Board Accountants of Sri Lanka in 2023.
relevant professional and regulatory
with the views of the Management.
requirements.

Assignment of non-audit services to

Constructive use of Annual
External Auditors is reviewed by the General Meeting (AGM)
Audit Committee who determine Shareholders are encouraged
42 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Reference to Corporate Governance How we Comply Compliance

ICASL Code & Principle Status
CSE Listing

Directors

A.1 The Board

Held every quarter and special meetings held as and

A. 1.1 Board Meetings þ
when necessary.

• Focus on developing strategies for business

development and to provide guidance to the
management

• Sets the budget for the financial year and reviews

A1.2 Role of the Board þ
progress at the monthly meetings.

• Approving capital expenditure

• Ensures that effective internal control and risk

management framework is in place

The Board seeks independent professional advice

when deemed necessary, particularly before making
Compliance with laws and
any decisions which could have a significant impact
access to independent
A. 1.3 on the Company. þ
professional advice
Further the Board is always mindful of the new laws/
regulations which are implemented and ensures
compliance with same.

Access to advice from the

Company Secretary
All directors have access to the advice of the
A 1.4 þ
Indemnifying the Board, Company Secretary.
Directors and key
management personnel

Board comprises mainly of independent professionals

Independent judgment of
A 1.5 who in turn exercise independent judgement in þ
the Directors
discharging their duties.

Regular Board meetings and sub-committee

Dedicating adequate time meetings are scheduled well in advance and Board
A 1.6 þ
and effort papers circulated 1 week prior to the meetings,
giving adequate time to prepare.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 43

Resolutions are passed for all Board approvals and

A.1.7 Calls for resolutions þ
minutes are kept.

At the time a Director is appointed a letter confirming

such appointment together with details on the duties
of a Director in terms of the Act and Listing Rules are

A 1.8 Training of Directors forwarded to them. þ

All Directors have considerable experience in

the industry. Relevant local and foreign training
opportunities are made available.

Segregation of Roles of
A. 2.0 Please refer Chairman and CEO on page 37. þ
Chairman & CEO

The Chairman ensures that meetings are conducted

in an orderly manner and that each Board Member
A. 3 Chairman’s Role þ
and Member of staff is given an opportunity to
present his views/ concerns on matters.

Members of the Board and Management have

A. 4 Financial Acumen sufficient financial knowledge and thus are able to þ
provide guidance on financial matters.

A.5 Board Balance

Presence of Non-
A.5.1/ Executive Directors
A5.2/A.5.3 &
A.5.5 Independence of Non- Please refer details in page 37. þ
Executive Directors

A.5.4 Annual Declaration of

Annual declarations citing their independence is
Independence by the þ
obtained by the secretary annually.
Non-Executive Directors

Alternate Director to a
A.5.6 No Alternate Directorships at 31 March 2024. þ
Non-Executive Director

Senior Independent
A.5.7/5.8 No Senior Independent Director. þ
Director
44 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Chairman meeting
When required the Executive Directors and Members
A.5.9 with the Non-Executive þ
of staff are excused from meetings
Directors

Concerns of Directors are recorded in minutes even

A.5.10 Recording concerns þ
in the case of disagreement.

A.6 Supply of Information

Obligation of the
Management to provide Board Papers and Committee papers are provided at
A.6.1 þ
appropriate and timely least one week before the meeting
information

Board papers to be
Board papers are provided one week prior to the
A.6.2 provided 7 days prior to þ
Board meeting.
Board Meeting

A.7 Appointments to the Board

All new appointments are informed to the CSE as per

Nomination and
existing regulations. Appointments are undertaken
Governance Committee
A.7.1 / A.7.2 by the Board of Directors. The Board’s skills and þ
and the assessment of
knowledge is assessed periodically and informed to
composition of the Board
the Directors.

Disclosure pertaining to any new appointments are

made to the CSE within two market days from the
A.7.3 Disclosure of
date of such appointment. The disclosure includes a
Appointment of a New þ
brief profile of the Director and whether the Director
Director
is an Independent/ Non-Executive / Executive
Director.

A.8 Re-election

1/3 of the Non-Executive Directors will retire

from office on a rotational basis at each AGM.
A.8.1 /A.8.2 Re-election The Nominations and Governance Committee þ
recommends the Directors for re-election, and
approval by the Board.

In the event of a resignation, a letter of resignation is

A.8.3 Resignation þ
provided by the Director.

A.9 Appraisal of Board Performance

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 45

A.9.1/A.9.2/ Appraisals of the Board The Board’s skills and knowledge is self-assessed and
þ
A.9.3/A.9.4 and the sub committees by Chairman.

A.10 Disclosure of Information in Respect of Directors

Profiles of the Board

The names of the Directors of the Board and their
A.10.1 of Directors and other þ
profiles are given on page 26-29
related information

A.11 Appraisal of Chief Executive Officer

Setting of the annual The performance of the CEO is reviewed twice a year
A.11.1/A.11.2 targets and the appraisal by the Board based on the strategic targets set for þ
of the CEO the year.

B. Directors’ Remuneration

B.1 Remuneration Procedure

Refer Directors’ Remuneration on page 185

B.1.1
Set up a Remuneration
Committee with agreed The Report of the Remuneration Committee on þ
terms of reference pages 121 - 122 gives the composition of the
Committee and a description of its activities during
the year.

B.1.2
Remuneration Committee
to consist of Non- Consists of 3 Non-Executive Directors
Executive Directors only

B.1.3
List names of
Remuneration Committee Please refer page 36 þ
in Annual Report

B.1.4 Determination of the Remuneration of the Non-Executive Directors is

remuneration of the Non- decided by the Board in consultation with the þ
Executive Directors Chairman.

B.2 The Level & Makeup of Remuneration

46 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

The level and makeup

of the remuneration of Remuneration levels have been designed to attract,
B.2.1/B.2.2/
Directors and comparison retain and motivate Directors while remaining within þ
B.2.3/B.2.4
of remuneration with the industry standards.
other companies

No performance-based remuneration since the

Performance based
B.2.5 Executive Directors do not get involved in day to day þ
remuneration
operations.

B.2.6 Executive share options No share options offered.

Designing schemes of
Refer the Report of the Remuneration Committee on
B.2.7 performance-based þ
page 121
remuneration

B.3 Disclosure of Remuneration

Report of the Remuneration Committee on page 121

B.3.1 Disclosure of
þ
Remuneration Notes 9 and 36.2 in the financial statements on page
121

C. Relations with Shareholders

C.1 Constructive use of AGM and Conduct of Meetings

Notice of Meeting, the Agenda for the Annual

Dispatch of Notice of
General Meeting and the Annual Report are
C.1.1 AGM and related papers þ
circulated to shareholders prior to 14 days as
to shareholders
required by the Articles of Association and the Code.

Separate resolution for

Separate resolutions are passed for each matter
C.1.2 substantially separate þ
taken up at the AGM
issues.

Accurate recording and

counting valid proxy Valid proxies are listed together with the number of
C.1.3 þ
appointments received for shares held by the shareholder appointing the proxy.
general meeting

Availability of Chairman of The Chairmen of the Board Committees are present

C.1.4 Board Committees at the to answer any queries of the shareholders directed to þ
Annual General Meeting them by the Chairman of the Company.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 47

Summary of Notice of
General Meetings and
A summary of the procedure on voting is given in the
C.1.5 procedures governing þ
Notice of Meeting.
voting at General
Meetings

C.2 Communications with shareholders

The AGM and EGM (if any) are used as the method
for communicating with the shareholders.

All quarterly and annual financial information and

other important matters as required for by the Act
and the Listing Rules are shared by way of disclosures
through the CSE.

Communications with The Company Secretaries/ Registrars are the main

C.2.1 to C.2.7 þ
Shareholders contact people for the shareholders.

All major concerns of the shareholders are brought

to the notice of the Board at the AGM and at Board/
Sub-committee meetings.

All queries of shareholders are answered at the AGM

and all shareholders are given the opportunity to
express their views/concerns.

C.3 Major & Material Transactions

There were no matters which were identified as Major

Transactions during the year as such no disclosure

Disclosure of Major has been made in this regard.

C.3.1 & C.3.2 þ
Transactions In the event there are Major Transactions, relevant
disclosures and relevant shareholder approvals are
obtained.

D. Accountability & Audit

D.1.1 Annual Report Refer Accountability & Audit on page 41 þ

48 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

In preparing annual and quarterly Financial

Statements, the Company complies with the
requirements of the;

Interim and price sensitive • Companies Act No. 07 of 2007,

D.1.2 reports to public and þ
• Sri Lanka Accounting Standards and
regulators • Listing Rules of the Colombo Stock Exchange.
The annual and interim Financial Statements were
published within the time periods prescribed by the
Listing Rules of the Colombo Stock Exchange.

Director/CEO/FC Directors’ and Financial Controller’s responsibility

D.1.3 þ
Declaration statement

Directors’ Report Refer Annual Report of the Board of Directors on

D.!.4 þ
declarations page 116.

Refer the following:

Statements on
responsibilities for • Statement of Board responsibility for preparation
D.1.5 preparation of financial of financial statements – page 129 þ
statements and internal
• Statement from Auditors on their reporting
control
responsibilities – page 153

Refer annual report pages from 19 to 23 which

Management discussion &
D.1.6 provides a comprehensive management discussion þ
analysis
and analysis of the Group’s operations

Shareholders will be informed of a serious loss of

D.1.7 Serious loss of capital þ
capital in the event it happens.

Refer the following disclosures on Related Party

Transactions:

• Relates Party Transactions Review Committee

D.1.8 Related Party transactions Report on page 127 þ

• Annual Report of the Board of Directors on page

116

• Note 36 to the financial statements

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 49

D.2 Risk Management & Internal Control

Monitor, review and

report on financial,
D.2.1 operational and þ
compliance risk and
internal control systems

Confirm assessment of
D.2.2 the principal risks of the The following reports provide details on compliance þ
company with these requirements:

D.2.3 Internal Audit • Risk Report on page 71-74 þ

• Risk & Internal Control on page 125

Require Audit Committee
to carry out reviews of & • Audit Committee Report on page 124
D.2.4 þ
Board responsibility for
disclosures

Compliance with
D.2.5 Directors’ responsibilities þ
as set out by the Code

D.3 Audit Committee

Establish an Audit
D.3.1 Committee comprising Audit Committee comprises 3 non-executive
wholly of Non-Executive directors of whom 3 are independent. Refer Audit þ
directors of which at least Committee on page 124.
2 must be independent

D.3.2 Written Terms of The Audit Committee has a written Terms of

Reference for Audit Reference summarized in the Audit Committee þ
Committee Report on page 124.

D.3.3 The Audit Committee Report with required

Disclosures þ
disclosures are given on page 124.

D.4 Related Party Transactions Review Committee

50 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

D.4.1/D.4.2/ Refer

D.4.3 • Related Party Transactions Review Committee on

Related Party Transactions
page 127 þ
Review Committee
• Report of the Related Party Transactions Review
9.3.2 Committee on page 127

D.5 Code of Business Conduct & Ethics

Board declaration for

D.5.1 compliance with Code Refer Code of Ethics on page 34.

Material and price sensitive information is promptly

D.5.2 Price sensitive information þ
disclosed to the CSE by the Company Secretaries.

Monitor Share purchase Refer the Related Party Transactions Committee

D.5.3 þ
by Directors/ KMPs Report on page 127.

Refer the Chairman’s Message on Corporate

D.5.4 Chairman’s statement Governance on page 20 and The Board of Directors’ þ
Statement on Internal Controls on pages 19 to 20.

The Corporate Governance Report on pages 39

Corporate Governance
D.6 to 41together with its Annexes comply with this þ
disclosures
requirement.

E. Institutional Investors

The proxies of the major institutional investors, such

E.1.1 Institutional investors þ
as the major shareholder are obtained.

Evaluation of Governance Information required for evaluation of governance

E.2 þ
Disclosures structures is provided in the Annual Report.

F. Other Investors

We seek to provide sufficient information to investors

Investing and divesting through the annual report, quarterly financial
F1 decision statements and announcements to the CSE to assist þ
investors with their investment and divestment
decision.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 51

Encouraging shareholder
F.2. Refer Shareholder Relations on page 41 þ
participation

G. Internet of things and cyber security

Identify connectivity and We proactively update firewalls and take precaution

G.1
related cyber risks against cyber security threats.

H. Environment, Society & Governance

Environment, society and

H Refer ESG Reporting from page 66 to page 68 þ
governance

Consider the impact

of sustainability risks
and opportunities in
the business model,
We consider the impact of sustainability related risks
H.1 operations and short, þ
and opportunities.
medium and long term
plans to build resilience
and report the same to
the Board.

Continuously engage
with and consider the
The Company continuously engages with its
views of its stakeholders
stakeholders to consider the views and manage
H.2 to better understand and þ
concerns to manage its reputation and to preserve its
manage the company’s
social license to operate.
sustainability/ ESG risk
and opportunities.

I. Special Considerations for Listed Companies

Listed entities shall

establish and maintain
policies relating to its
governance and disclose
the fact of existence of
I.1
such policies together
with the details relating Policies are being reviewed and revised prior to
to the implementation of publishing their details on the Company’s website.
such policies by the entity þ
We expect to have this completed by the effective
on its website. date specified by the CSE which is 1st October 2024.

Listed entities shall

establish and maintain a
I.2 formal policy governing
matters relating to the
board of directors.
52 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Section 9 – Corporate Governance

Rule Ref Disclosure Requirement Page Ref.

Statement confirming the extent of compliance with the 42-51

Corporate Governance Rules
9.1.3

9.2.2 Any waivers from compliance with the Internal Code of business Effective 1st October 2024
conduct and ethics or exemptions granted

9.2.3 (i) List of policies in place as per Rule 9.2.1, with reference to website Effective 1st October 2024

9.2.3 (ii) Any changes to policies adopted Effective 1st October 2024

The policy on effective communication and relations with shareholders

and investors

The contact person for such communication

9.4.2 41
The policy on relations with shareholders and investors on the
process to make all Directors aware of major issues and concerns of
shareholders

Confirmation on compliance with the requirements of the Policy on

matters relating to the Board of Directors. If non-complied reasons for 36
9.5.2
the same with proposed remedial action.

9.6.3 Report of SID demonstrating the effectiveness of duties Not applicable

9.6.4 Rationale for appointing SID Not applicable

Statement on Directors and CEO satisfying Fit and Proper Assessment

Criteria 123
9.7.5
Any non-compliance/s and remedial action taken

9.8.5 Names of Directors determined to be ‘independent’ 36

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 53

9.10.4 Directors details

– name, qualifications and brief profile

– nature of his/her expertise in relevant functional areas

– whether either the Director or Close Family Members has any

material business relationships with other Directors

– whether Executive, Non-Executive and/or independent Director

– total number and names of companies in Sri Lanka in which the

Director concerned serves as a Director and/or KMP stating 26-29
whether listed or unlisted, whether functions as executive or non-
executive (If the directorships are within the Group names need
not be disclosed)

– number of Board meetings attended

– names of Board Committees in which the Director serves as

Chairperson or a member

– Attendance of board committee meetings

– TOR and powers of SID

54 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

9.11.6 Nominations and Governance Committee Report Effective date 1st October
2024
– Signed by Chairperson

– Names of chairperson and members with nature of directorship

– Date of appointment to the committee

– Availability of documented policy and processes when nominating

Directors

– Requirement of re-election at regular intervals at least once in 3

years

– Board diversity

– Effective implementation of policies and processes relating to

appointment and reappointment of Directors

– Details of directors re-appointed

– Board Committees served Date of first appointment Date of last

re-appointment

– Directorships or Chairpersonships and other principal

commitments, present and held over the preceding three years

– Any relationships – close family member, more 10% shareholding

– Performance of periodic evaluation of board

– Process adopted to inform independent directors of major issues.

– Induction / orientation programs for new directors on corporate

governance, Listing Rules, securities market regulations or negative
statement

– Annual update for all directors on corporate governance, Listing

Rules, securities market regulations or negative statement

– Compliance with independence criteria

– Statement on compliance with corporate governance rules, if non-

compliant reasons and remedial actions

9.12.8 Remuneration Committee Report

– Names of chairperson and members with nature of directorship

– Remuneration policy
121-122
– The aggregate remuneration of the Executive and Non-Executive
Directors.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 55

9.13.5 Audit Committee Report

– Names of chairperson and members with nature of directorship

– Status of risk management and internal control – company and

group

– Statement on CEO and CFO assurance on operations and finances

– Opinion on compliance with financial reporting requirements,

information requirements Listing Rules, Companies Act, SEC Act 124-126
and any other requirements.

– Availability of formal Audit Charter

– Internal audit assurance and summary of the work internal audit

– Details demonstrating effective discharge of functions and duties

– Statement on external auditors’ assurance on their independence

– Confirmation on determining auditor’s independence

9.14.8 (1) Related Party Disclosures

Non-recurrent RPT exceeding 10% of the Equity or 5% of the Total

Assets, whichever is lower (in the specified format)

– Name of the RP Relationship pg 220

– Value of RPT
– Value as % of equity and total assets
– Terms and Conditions
– Rationale

9.14.8 (2) Recurrent RPT exceeding 10% of the gross revenue/income (in the
specified format)

– Name of the RP Relationship

– Nature of RPT pg 220

– Value of aggregate RPT

– Value as % of gross income
– Terms and Conditions

9.14.8 (3) Related Party Transactions Review Committee Report

– Names of the Directors comprising the Committee

– Statement that committee has reviewed RPTs and communicated 127-128

comments/observations to the Board

– Policies and procedures adopted by the Committee
56 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

9.14.8 (4) Affirmative declaration by the Board of Directors on compliance

127
with RPT Rules or negative statement to that effect.

9.16 Additional disclosures by Board of Directors Declaration on following.

– All material interests in contracts and have refrained from voting on

matters in which they were materially interested

– Reviewed of the internal controls covering financial, operational

and compliance controls and risk management and obtained
reasonable assurance of their effectiveness and successful
adherence, and, if unable to make any of these declarations an
explanation on why it is unable to do so; 129
– Made themselves aware of applicable laws, rules and regulations
and are aware of changes particularly to Listing Rules and
applicable capital market provisions;

– disclosure of relevant areas of any material non-compliance with

law or regulation and any fines, which are material, imposed by any
government or regulatory authority in any jurisdiction where the
Entity has operations.
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 57
58 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

The Strategic Report

Our Business Model
The model below depicts how we deliver value to our multiple stakeholders by strategically leveraging our capital inputs.

Value Creation Process

Business Segments
(For more details refer Page34 - 56
Corporate Governance
Corporate Governance
(For more details refer Page 34 - 56)
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024
59
60 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Responding to Our Stakeholders

Ongoing stakeholder engagement enables us to remain attuned to evolving stakeholder expectations and respond
proactively to these expectations. In determining which stakeholders to engage with, we place priority on those who most
impact and are most impacted by our operations. A high-level overview of the Group’s stakeholder engagement activities
during the year is presented below:
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 61
62 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Determining Material Issues

Process to determine material topics
GRI 3-1

Material topics are those that impact our value creation process in the short, medium and long term. We have a systematic
approach to determining our material matters which involves assessing risks, opportunities and threats in terms of relative
importance to stakeholders and impact on our operations. The material issues thus identified and prioritized form the basis of
our strategy, risk management practices and reporting practices.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 63

Determining Material Topics

GRI 3-1 Process to determine material topics

Risk Management Processes GRI 3-2 List of material topics

• Selection of topics
The list of topics selected as material is
• Identifying key stakeholders
given below.
• Identifying impacts
• Prioritizing the topics Please note that our responses to
GRI 3-3 Management of Material
• Approval by senior management
Topics is disclosed under the specific
disclosures, for which the page
1. As the first step, we reviewed the
numbers are provided in the GRI Index
topics from the GRI Standards
on page 132 of this report.
2021 and selected topics deemed
material by the CEO and the
senior management team. This
selection was based on our
UNSDG policy commitments, our
sustainability/ethical accreditation
criteria, and our business
activities.

2. Secondly, we identified our key

Topic number Material topic
stakeholder groups and their
expectations.
GRI 201 Economic Performance 2016
3. Thirdly, potential and real, positive
GRI 301 Materials 2016
and negative impacts on human
rights and our stakeholders, the
GRI 302 Energy 2016
environment and the economy
were identified. This impact GRI 303 Water and effluents 2018
assessment was influenced mainly
by the views of our regulators, GRI 304 Biodiversity 2016
employees, communities and
buyers, as understood by the GRI 305 Emissions 2016
senior management.
GRI 306 Waste 2020
4. Thereafter the most impactful
topics for disclosure were GRI 401 Employment 2016
prioritized and selected.
GRI 403 Occupational Health & Safety 2018
5. Finally, the topics were approved
by the senior management team GRI 404 Training and Education 2016
including the CEO and Financial
Controller.
64 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Strategy
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 65
 66
11.5 Integrating Sustainability
Our sustainability ethos is integrated into our operation through policy commitments that are directly linked to the United Nations Sustainability Development
Goals ( UNSDGs). Our policy commitments are embedded into the organization through a streamlined process that is aimed at fostering an organizational
culture that prioritizes sustainability. Our Sustainability commitments together with the process for embedding policy commitments
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 67
68 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 69

Risk and Opportunities

Risk management is a critical function to the SUN Group Internal Audit & the attention of the Head Office Risk
for WATA as the variables are Compliance Officer who reports to the Committee. The Risk Committee
many and inherently volatile with a SUN Group Internal Audit Committee. meeting is held quarterly to identify
significant impact on the financial and update the committee on new
Risk Management Processes
and operational outcomes. WATA risks as well as removal of risks which
WATA Risk Committee has a risk
is supported by its parent company, are deemed obsolete and any changes
Terms of Reference (TOR) which was
Sunshine Holdings to institutionalise in risk profiles.
issued by the CEO on 28th December
risk management throughout the
2021. The TOR covers the purpose The risk matrix is updated by adding
WATA Group as set out graphically
and mandate, power, authority and new risks, removing risks which are
alongside, creating a culture of risk
responsibilities, membership and not a risk, updating the risk impact
awareness.
composition, content of discussion and likelihood. A qualitative risk
Risk Governance and conduct and code of values. assessment is followed rather than a
The Board bears responsibility for The risk structure follows a bottom-up quantitative risk assessment. Minutes
setting in place a risk management approach from each level of business of the risk committee meetings are
framework for the WATA Group and – Udugama estate, oil palm mill, shared after the risk meeting. The
the Audit Committee is charged with and farm. As shown alongside, there Company risk presentations with the
detailed oversight of this function. are two risk committees for WATA – risk matrix are presented to the SUN
Risk assessment is done centrally at Regional Risk Committee and Head Group Risk Committee quarterly.
the SUN Group level for all business Office Risk Committee. WDL has only
segments. Additionally, there is the Head Office Risk Committee.
an executive Risk Committee of The WPL Regional Risk Committee
WATA that also concurs with the is held quarterly at the estate level
executive risk committee of Sunshine and identified risks are brought to
Holdings that also looks at risk from
a Group perspective. A dedicated
Risk Manager supports the function,
providing the analysis and updates on 1 (Catastrophic/ 5 10 15 20 25
25
a regular basis. Extreme)
2 (Major/Very 4 8 12 16 20
A risk management system developed High Impact)
with the consultation of the Audit 3 (Moderate/ 3 6 9 12 15
Impact / Severity

Committee and Risk Review High Impact)

Committee is also implemented across 4 (Minor Impact) 2 4 6 8 10
the Group. Headline risks including
5 (Low/ 1 2 3 4 5
political/ regulatory risks, external Insignificant
risks, strategic risks and business Impact)
risks are all assessed and managed (Rare/ 2(Unlikely (Possible 4(Likely (Almost
Remote) to Occur) to Occur) to Occur) certain to
by this committee. Internal controls Occur Occur)
are formally established at both
1 2 3 4 5
WATA & WDL and internal audit is
outsourced to EY. WATA & WDL has a
dedicated internal auditor who reports Occurrence/Likelihood
70 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Improvements in 2023/24
With the issue of the IFRS Sustainability Standards in June 2023 followed by the issue of SLFRS S1 and S2 in January 2024, we
have commenced our journey to adopt the standards with a study and adapting our risk registers to capture the data. Our
intermediary solution is set out on page 71 and 74.
 Priority
Effectiveness
Impact/ Occurrence/ (as per
Related Risk Risk description Implication/consequences Risk Control Measure/Mitigation Action of the Score
Severity Likelihood risk
mitigation
grid)

• Buyers setting a lower oil price

Drop in local crude palm oil demand arbitrarily instead of basing it
Drop in on the previously followed price • Customer diversification
due to lower demand from end
domestic palm formula
customers resulting from economic • Obtaining market insights on demand for
oil demand slowdown. • Difficulty in sale of palm oil refined palm oil and customers’ demand for L 4 3 12 High
resulting in a
Buyers setting the price below the • Buyer demanding stringent better price negotiation
drop in palm quality standards
oil price global palm oil price-based formula • Increasing product quality
due to lower demand. • Stock build up
• Drop in revenue and profit
Watawala Plantations PLC
Our Principal Risks

• Mill development to achieve optimal

operations performance

Market Risks
• Evaluation of all investment proposals and

Market Risks
• Risk of losing crop due to mill getting advice from experts
Breakdown of mill operations. breakdowns • Adopting a stringent approval procedure for
Failure of investments/ inability • Risk of not maximizing return capital expenditure based on the investment
Investment risk to achieve investment objectives, M 3 2 6 Medium
on investment, making less than and expected pay back
reduction in future profitability and optimal decisions
sustainability of the Company. • Maintain cash flow and budgetary control
• Financial losses systems for effective monitoring
• Closely monitor project progress to ensure
deliverables are achieved within the given
budgets and timeliness

• Introduction of sound IT policy, IS policy and

close supervision thereon.
• Planned ERP project closure and subsequent
vendor agreements for support service and
• Delays in ERP project closure maintenance.
Errors in the new ERP system and its
• System errors resulting in • Development of reports to highlight outliers,
integrations.
Information inaccurate information duplicated / erroneous entries, integration
Erroneous entries from the newly checks prior to payments M 4 2 8 Medium
Systems risk • Risks associated with data
implemented SAP ERP system and
security • Frequent system testing and engagement
itechro system, and its integration. with users
• Software downtime
• Replaced devices at end user level.
• Shifted data to AZURE Cloud and
implemented AZURE AD and Defender for

IT Risks
data security.

Risk IT
Increase productivity by replacement • Risk of using outdated and
of obsolete technology with inefficient systems by not
new and efficient technology. keeping pace with the current • Continuous investments in new machinery
Technological Investment in new technological technological developments and trials on new harvesting methods
M 3 2 6 Medium
risk plants, machineries and advanced • Escalating price of spare parts, • Exploring mechanization of estate functions
information technology to ensure delays in delivery, difficulty in • Proactive requirement planning
a smooth flow of information for procuring exact requirement of
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

control purposes. older machinery & equipment

71
 72
Non-compliance to Company
policies by mill employees. • Inability for management to
• Engagement with mill employees
Mill labour Engage in discussions with the execute plans
• Conducting awareness of labour laws to mill • M 4 2 8 Medium
related disputes management for labour matters • Disruptions to smooth
workers
instead of resorting to trade union functioning of the mill
action.

Operational Risks
• Continuous monitoring of global CPO prices,
Volatility of Price volatility arising due to monitoring conditions which would affect the
fluctuations in demand and supply • Revenue shortfalls against the Government decisions to revise the import duty.
global palm oil • L 4 3 12 High
forces in the global crude palm budgets. • Larger contract volumes during higher prices to
prices oil market advantage from seasonal price changes.
• Improve productivity and quality.

• Engage with government agencies,

representations, lobbying via the Planters
Association
• Aging oil palm crop and delays
in replanting • Implementation of CEA report on oil palm by
Government Inability to replant oil palm due Plantation Ministry was challenged by way of writ
to Government ban on oil palm • Drop in yield due to difficulties application in Court of Appeal • L 5 2 10 High
ban on oil palm planting in harvesting older tall palms
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

• An FR petition was filed to challenge the CEA

report in Supreme Court
• Increase bought crop to increase palm oil
production

Strategic Risks
• Public awareness campaigns on the benefits
of oil palm cultivation and daily use of palm oil,
Social pressure Opposition by various groups village integration programs, engagement with
• Opportunity cost of maintaining pressure groups, RSPO certification, introducing
against oil palm cultivation and
against oil palm unproductive rubber and tea small holder cultivation of oil palm after removal • M 3 2 6 Medium
expansion that hinders the organic
fields of ban on oil palm cultivation.
expansion growth
• Pulse check of stakeholders in response to
campaigns conducted by the Company

Special

Commodity Price volatility due to a change in • Revenue & PAT shortfalls

• Entering into forward agreements with buyers • L 5 1 5 Medium
Levi (SCL) the import duty on crude palm oil. against budgets

changes
 Priority (as
Effectiveness of Impact/ Occurrence/
Related Risk Implication/consequences Risk Control Measure/Mitigation Action Score per risk
the mitigation Severity Likelihood
grid)

• Increase in cost of cattle feed and feed

cost fluctuations due to volatile exchange • Production of cattle concentrate at the farm to reduce cost of concentrate
rate and to maintain quality of concentrate
Inflation risk and • Proactive cost mitigation strategies and informed purchasing decisions
• Volatile price of fuel, energy, medicines M 3 2 6 Medium
foreign currency risk and other materials • Operations restructuring to increase efficiency
• Volatility in cost of all purchased business • VAT registration to claim input VAT w.e.f. 1st January 2024

Market Risks
materials
Watawala Dairy Limited

• Introduced sound IT policy, IS policy and close supervision.

• Hardware and software failure
• Vendor agreements for support service and maintenance.
Information Systems • Single point of failure of server at milking
• Vendor support for hardware troubleshooting. H 3 1 3
risk parlour
• Regular updating of virus scanners.

IT Risks
• Firewalls were implemented

• Feed stock losses due to animal attacks • Proper storage of feed to minimize damage from environmental elements
Risk of loss of feed
• Financial loss due to feed stock damages • Maintaining the farm fence to minimize risk of wild boar attacks H 3 2 6 Medium
inventory
• Supervision of feed storage areas and daily monitoring

Breakdown of the
• Loss of milk production and life threat to • Regular maintenance, service agreements, importing and maintaining a
milking parlour and the milking cows stock of milking parlour spares
H 5 1 5 Medium
other machinery

• Loss of productivity and efficiency

• Increase engagement, regular training sessions and optimization of cadre

Operational Risks
• Worker demands for higher pay due to planning.
Labour unrest and inflation
• Joint Consultative (JCC) meetings with employees. M 2 2 4 Medium
demands, attrition • Staff turnover disrupting routine
• Accommodating training students to backfill attrition.
operations
• Filling vacancies as required from the trained students’ pool.

• Limited liquidity pressurizing cash flows • Maintaining efficient treasury management

• High borrowing cost via bank overdraft • Active negotiation for credit facilities
Liquidity pressure and loans and consequent reduction • Reduction in feed inventory to reduce cash tied in working capital and in- M 3 4 12 High
in profit house production of concentrate with optimal purchase quantities.
• Need for more credit facilities • Pursue further cost savings

Liquidity Risks
• Interest rates are continuously monitored.
• High borrowing cost resulting in reduced
High interest rate • Maintaining efficient treasury management. L 2 2 4 Medium
profitability
• Optimizing feed inventory to reduce cash tied in working capital.
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024
73
 74
• Not meeting revenue targets
Reduction in milk price • Increase number of customers
• Drop in profitability due to price reduction
over reduction in milk • Maintain quality of milk to maintain milk price L 3 3 9 High
over the cost reduction
cost of production • Cordial relations and frequent communication with customers.
• Difficulties in managing cashflows

• Loss of milk production, and harm to • Determining the maize prices by evaluating the market at weekly
bovine health due to shortage of feed and feed meetings and exploring alternative feed items
Availability of sufficient
inconsistent feeding
cattle feed and ability • Tweaking the feed formulas, better negotiation of feed prices, and
• Higher cost for sudden feed purchases importing feed material
to purchase desired with limited bargaining power and
H 4 2 8 Medium
quantity and quality of disruption to planned cash flows • Closely monitoring seasonality of feed cultivation and shortages.
cattle feed Forecasting feed requirement and proactive stock build-up and use
• Sub optimal feed quality providing
insufficient nutrition • Continue purchase of maize silage
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Strategic Risks
• Drop in consumption of liquid fresh milk • Proactively obtain market insights from WDL’s customers to keep
Change in consumer and value-added dairy products abreast of change in end consumer behaviour L 3 2 6 Medium
behaviour
• AIDA lobby for imposition of VAT on dairy products

• Use of good quality feed ration, pursuing industry best practices,

• Lower milk price and revenue staff training.
Maintaining quality
• Risk of poor-quality milk compelling • In-house testing of milk quality and soliciting customer feedback. H 4 1 4 Medium
of milk
customer to stop purchase • Proposed set up of mini lab at farm to test feed and milk on a
weekly basis to monitor toxin material in raw materials.
 Sustaintability Related Risks & Opportunities

WATA Climate Related Risks Other Sustainability Related Risks

Generation of steam for production by use of

biomass, thereby reducing grid and fossil fuel- Global warming and prolonged drought Workforce Health & Safety
Reducing and reusing water for mill
Risk/Opportunity based energy consumption. (risk) (risk)
operations, and rainwater harvesting
Generating electricity via a steam powered turbine
to reduce grid electricity consumption.

Increase in global and local temperature

Generation of steam for production by use of reducing oil palm yield and increasing the
Managing workforce health and safety
biomass, thereby reducing grid and fossil fuel- need for water to be artificially supplied
Reducing and reusing water for mill to prevent injury and fatality, increase
Description based energy consumption. to palms.
operations, and rainwater harvesting productivity, and maintain sound
Generating electricity via a steam powered turbine Slowing down of the fruit ripening process
workforce relations.
to reduce grid electricity consumption. and loss of crop and oil yield due to
prolonged drought.

Physical/
Transition risk Physical risk Physical risk N/A
Transition Risk

Rs.. 18.0 Mn – saving Loss of production – cost, lack of

Total energy Cost also to include water for estate – cost.
Rs.. 13.8 Mn invested in personal
Impact in 2023/24 To be quantified in 2024/25
protective equipment
Take both – risk and opportunity – price it/ value Opportunity – sometimes no
for both. opportunity. Don’t look for it always.

Potential
Currently, evaluating a zero
adjustment Currently, evaluating opportunities to increase
liquid discharge (ZLD) effluent
to assets and generation of renewable energy to meet mill and None None
management system to treat palm oil
liabilities in effluent management.
mill effluent.
2024/25

• Processing and cleaning of

wastewater generated from mill
Maintain biomass boiler in optimal working
process for reuse in the production
condition to generate sufficient steam to meet Pursuing RSPO’s sustainable cultivation Pursuing RSPO’s sustainable cultivation
Strategies process.
the mill operations requirement and generate and estate management practices and estate management practices
• Rainwater is harvested to meet the
electricity via a turbine.
water requirements without tapping
into stream water.
Sustainability Related Risks & Opportunities

Mill energy consumption: Short term impact – no cost of

Short term impact – loss of productivity,
Biomass: 97% obtaining water for mill operations.
production delays, and higher costs
Grid: 2% Short term impact – delays in fruit ripening
Steam turbine: 1% Medium term impact – maintaining and crop loss due to a lower number of
Medium term impact – loss of
a sustainable source of water at no bunches and lower bunch weight
Short term impact – reducing electricity production, productivity and issues with
Short, Medium cost.
consumption and energy bill. industrial
and Long Term Medium term impact – drop in crop
Impact Long term impact – sustainable
Medium term impact – ability to meet energy Long term impact – lack of sound
requirement by self source of water for mill operations Long term impact – drop in crop and yield
workforce relations and attraction
Our risk management process has so far focused mainly on qualitative assessments with a few top risks qualified. We

when water has become a costly reduction

of workforce as a safe working
will be extending the quantifying of risks in 2024/25 to enable assessment of risks in accordance with SLFRS S1 and S2.

Long term impact – preserving and reducing resource.

environment.
fossil fuel use, and ensuring going concern in the
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

backdrop of rising cost of fossil fuel-based energy

75
 76
Sustaintability Related Risks & Opportunities

WDL Climate Related Risks Other Sustainability Related Risks

Ecological Impacts Water consumption management Food Safety Workforce Health & Safety
Risk/Opportunity
(opportunity) (opportunity) (Risk) (risk)

Managing workforce health and safety

Ecological impact due to generation of large and Reducing and reusing water for cleaning, Maintaining milk quality and free from to prevent injury and fatality, increase
Description
concentrated amounts of cattle waste. and rainwater harvesting pathogens, chemicals, and spoilage. productivity, and reduce worker
turnover.

Physical/Transition Risk Physical risk Physical risk Physical risk Physical risk

Rs.. 1.6 Mn
Impact in 2023/24 To be quantified in 2024/25 To be quantified in 2024/25 Rs.. 1.5 Mn
Rs.. 196.0 Mn
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Potential adjustment to
Currently, evaluating a system to reuse
assets and liabilities in Rs.. 2 Mn Rs.. 2 Mn None
water for cleaning the milking parlour.
2024/25

• Reuse of water used for cleaning the

• Ensuring daily dispatch of milk to customers
• Further investment in cattle effluent management and milking parlour. • Providing training and personal
chilled at 4°C.
conversion of effluent to a value-added product in the • Rainwater is harvested to meet the protective equipment for employees.
• Testing feed quality by use of an NIR machine
Strategies form of compost. water requirements. • Maintaining a pool of paid trainees to
prior to feeding.
• Further develop compost by adding other organic • Ensuring wastewater is properly fill future vacancies and provide on-the-
• Sound herd management and daily herd
matter and microbes to increase nutritional content. managed without entering natural job training as a social service.
monitoring by the in-house veterinary surgeon.
streams.

Short term impact – reduce cost. Short term impact – no loss of revenue due to
Short term impact – reduce cost of effluent
disposal of contaminated or spoilt milk, and
management and conversion of waste to a resource.
Medium term impact – reduce cost and ability to charge a premium price.
meet water requirement.
Medium term impact – generation of a revenue stream.
Short, Medium and Medium term impact – premium price and Short term impact – loss of productivity,
Long Term Impact Long term impact – reduce cost and customer satisfaction. production delays, and higher costsw
Long term impact – sound effluent management above
reduce impact of a drought by reducing
statutory requirements whilst increasing local production
water consumption footprint, and cost Long term impact – maintaining brand of
of high-value compost and creation of a new business
involved with improper wastewater product quality in the eyes of the customer and
venture.
management. business sustainability.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 77

Operating Environment
Plantation Sector
The plantation sector continued to
face considerable challenges during
the year due to adverse weather
conditions which impacted outputs of
tea, rubber and coconut. Rising cost
of production driven by inflationary
pressures meanwhile continued to
impact margins and profitability of
the sector while labour shortages are
a growing concern across plantation Source: CBSL ANNUAL ECONOMIC REVIEW 2023
companies.

Key Market Developments Impacting Plantation Sector Impact

Sluggish Economic Conditions Negative

The economy continued to witness a contraction during the first two quarters of 2023 before witnessing a
gradual recovery towards the last two quarters of 2023. As a result, economic conditions and by extension
disposable income levels remained sluggish during the year.

Removal of Import Restrictions Positive

The gradual removal of import restrictions during the year together with the appreciation of the Rupee
reduced the price and increased availability of chemical fertilizers.

Rupee Appreciation Positive

The Sri Lankan Rupee which depreciated by 44.8% against the US Dollar in 2022, appreciated by 12.1% in
2023 as the acute shortages in FOREX liquidity witnessed in 2022 eased.

Labour Shortages Negative

Labour shortages in the plantation sector is a persisting issue. This has been exacerbated by the migration
of skilled labour due to high levels of migration from the country.

Policy if the Ban on Palm Oil Cultivation Negative

The ban on oil palm cultivation effected in April 2021 remained in force during FY2023/24.

Oil Palm through coconut oil and imported Cinnamon

The palm oil industry in Sri Lanka cooking oils. Palm oil prices declined Sri Lanka is the world’s largest
currently meets around 10% of the sharply in 2023 due to lower global producer and exporter of pure
domestic edible oil demand. The prices and subdued domestic demand cinnamon, accounting for 90% of
remainder of the demand is met conditions. the global market. In 2022 the EU
78 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

granted Geographical Indication (GI) continues to be a key concern in the has identified the sector as a priority
certification to Ceylon Cinnamon. industry. sector and mooted a special program
The certification acts as a source to increase milk production by 53%, in
of competitive advantage, helping Dairy Industry 5 years, with the participation of the
increase market differentiation and Domestic milk production accounts private sector.
product turnover for the spice, while for approximately 30% of the
allowing for a premium price from the Nation’s total demand, with total milk Rubber
consumer. production (cow milk and buffalo milk) Weaker global and domestic demand
amounting to 504,153,360 liters in for raw rubber dampened rubber
Tea 2023 (Source: Department of Census prices in 2023, although a price uptick
Tea export prices remained buoyant and Statistics). The sector plays an was witnessed during the early part
throughout 2023 despite a decline important role not only in enhancing of 2024. Domestic rubber production
in export volumes. Tea production food security in the country but also by meanwhile continued to decline due
during the year meanwhile continued providing employment opportunities to the combined effect of adverse
to be impacted by adverse weather to around 300,000 small-scale farmers weather conditions, the spread
conditions as well as the lagged across the country. Considering of Pestalotiopsis disease and low
effect of the now revoked fertilizer the importance of the sector to the productivity levels.
ban. Increasing cost of production national economy the Government

Key Market Developments Impacting Dairy Sector Impact

Rising Energy Costs Negative

Electricity tariffs were revised three times in 2023, with two upward revisions in February (66%) and October
(18%) and a downward revision in July 2023. (14%). The increase in energy costs has had an impact on
production costs.

Easing of Shortages in Cattle Feed Positive

Severe shortages of cattle feed witnessed in 2022 eased during the year as availability of maize improved
due to better domestic harvests and the removal of import restrictions. Meanwhile, the appreciation of the
Rupee also supported some stabilization of sharply escalating input costs.

VAT Hike Negative

Fresh milk production and fresh milk-based products which were previously VAT exempt, are liable for
18% VAT, with effect from January 1st, 2024, negatively impacting sector profitability and exacerbating
vulnerabilities.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 79

Plantation sector

Overview Contribution to Group

Despite the sector recording its
highest ever oil palm crop production FY2023/24 As a % of Group Total
during the year, performance was
impacted by subdued domestic Revenue 6,867 82%
demand and a dip in palm oil
prices. Despite these challenging Profits 2,404 NA
conditions, the plantation sector
recorded a revenue and profit before Total Assets 8,925 74%
tax of Rs. 6,867 and Rs. 2,404 million
respectively. Employees 1,724 97%

Market Review
• According to import data, the volume of palm oil imports in 2022 and 2023
were significantly below the import volumes in prior years. However, import
volume in 2023 was 47% higher than in 2022. The decrease in the import
volume of palm oil is due to the overall drop in volume of edible oil imports
which is attributed to the drop in economic activity due to the economic
crisis and Covid pandemic.

Performance
• Palm oil price decreased by 19% due to lower domestic demand.

• Meanwhile, cost of production per Kg, decreased by 10% due to cost

Despite a notable
reduction and drop in fertilizer price.
increase in yields per
• Continued uncertainty surrounding policy on oil palm cultivation remains a hectare and total crop
key barrier to growth prospects during the year, revenue
from the plantation
% sector declined by 9%
2023/24 2022/23 Increase/
to Rs. 6,867 million in
Decrease
FY 2023/24 due to a
sharp drop in palm oil
Price 428 526 -19%
prices during the year.

Cost of Production (Rs.. Kg) Meanwhile, segmental

250 278 -10%
profits increased by Rs.
Crop produced (MT) 57,072 52,472 9% 68 million and recorded a
3% increase to Rs. 2,404
Yield per Hectare (MT/ million during the period
16.8 15.7 7%
hectare) under review.
80 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Strategic focus and key initiatives in FY 2023/24

• Driving process efficiencies through field mechanization and factory automation.

• Continued emphasis on improving crop yields through the adoption of good agronomy practices which
included a crop sanitation programme to improve bunch formation and reduce stresses on the palm.

• Improvements to mill infrastructure to increase processing efficiency and product quality. Key investments
during the year included the commencement of the project to increase the palm oil mill ramp crop storage
capacity, increasing the crop transport vehicle fleet and road maintenance of harvester paths.

• Several quality improvement initiatives were carried out at the mill including providing feedback to
harvesters on quality of crop received.

• Commenced evaluation of a new palm oil effluent management system.

• Rs.. 19 Mn invested in improving employee facilities including staff quarters and worker housing.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 81

Dairy
Overview Contribution to Group

As the second largest non-government

FY2023/24 As a % of Group Total
fresh milk producer, WDL contributes
to over 1.3% of domestic cow milk
Revenue 1,454 18%
production. The sector witnessed a
turnaround performance during the
Profits (139) N/A
year recording a 22% revenue growth
despite posting a net loss of Rs.. 139
Total Assets 3,177 26%
Mn

Employees 57 3%

Market Review
• Domestic milk production accounts for approximately 30% of the nation’s Performance
total demand
Dairy sector revenue
• Drop in disposable consumer income driven by the country’s economic increased 22% to Rs..1,454
condition and the imposition of higher taxes impacted consumer demand million in FY 2023/24
in the dairy industry supported by an increase
in both volume and price.
• Production costs meanwhile continued to soar with the high cost of The availability of cattle
electricity and appreciation of the Rupee leading to an increase in costs feed improved significantly
related to animal feed, vitamins and minerals. compared to the previous
year and the farm was able
• With rising production costs impacting the viability of small- scale farms, to procure better quality
over 14,000 small scale farms were estimated to have shut down during the feed at a lower cost in 2H
impacting supply conditions which resulted in cattle
• Cow milk production dipped 1.9% YoY whilst buffalo milk production feed costs decreasing
increased 6.6% YoY in 2023 resulting in a dip in total milk production of in 2H FY24. However,
the cost of cattle feed
0.5% in 2023
increased during the
year due to holding and
% Increase/ consumption of higher
2023/24 2022/23
Decrease cost feed in 1H which
was procured previously.
Total Milk Production (Litres) 5.7 Mn 5.3Mn 8% Consequently, GP margins
Milk Yield per cow (Litres/ improved during the
19.2 17.5 10% year. Consequently, WDL
Day) witnessed a commendable
Average number of milkers 945 990 -5% turnaround during the
year despite recording a
Days of silage stock 153 179 -15% net loss of Rs.. 139 Million
Feed cost per litre of milk compared to the loss
199 195 2% of Rs.. 334 Million in FY
sold 2022/23.
82 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Strategic focus and key initiatives in FY 2023/24

• Continued focus on increasing milk yields by improving cattle health and nutrition. During the year investments
were made to improve the conditions of cattle sheds to improve the living conditions of cattle

• Ongoing focus on improving the quality of milk

• Several heifers were purchased during the year as part of ongoing efforts to build a high-quality replacement herd

• Greater focus on controlling feed wastage to manage cost of feed. This included reorganizing the feed shed to
increase efficiency and better manage feed operations

• Strategic emphasis on building feed sustainability

OPPORTUNITIES

RISKS

WAYFORWARD
Current domestic Impact of VAT driven Whilst continuing to
milk supply meets price increase on focus on increasing
only 30% of the demand for milk amidst milk yields in the
nations demand lower disposable income short term, we
indicating significant levels remain focused on
growth potential building the herd
Availability and cost of
and improving herd
Shifting consumer key inputs such as feed,
genetics in the
preferences towards medicines and vaccines
medium to long
fresh milk over
Aging herd term. Achieving feed
imported powdered
sustainability whilst
milk Change in end consumer procuring higher
behaviour towards quality feed at a
consumption of dairy in lower cost will also be
the long term a key priority.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 83

Financial Capital

• Delivered healthy profits despite the downturn in the economy

• Revenue from oil palm contracted by 9% despite an increase in volume as the prices declined due to reduced
demand.

• Dairy sector reported a revenue growth of 22%

• Sale of RSPO credits amounting to Rs.. 50 Mn

(Rs..Mn) Oil Palm Dairy Group

23/24 22/23 % 23/24 22/23 % 23/24 22/23 %

Revenue 6,867 7,574 -9% 1,454 1,195 22% 8,321 8,768 -5%

Profit after tax 2,404 2,336 3% (139) (321) 57% 2,345 2,332 1%

Assets 8,925 8,602 4% 3,177 3,008 6% 9,431 8,834 7%

Liabilities 2,418 2,050 18% 1,109 799 39% 3,034 2,331 30%

ROA 27% 27% -5% -11% 26% 26%

ROE 37% 35% -7% -15% 38% 36%

Profitability
84 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Stability

Revenue from the increased availability of

cattle feed in the second half of the
The Group reported a 5% contraction
year, allowing the farm to procure
in revenue as price for palm oil
higher-quality feed at a lower cost.
recorded a decline of 22% due to
lower demand. Revenue from palm
Accordingly, the gross profit for
oil which contributed to 83% of the
the year recorded by the Group
Group’s top line declined by 9% to
contracted by 11% to reach
reach Rs. 6,867 Mn, despite a 9%
Rs.. 3,155 Mn.
increase in crop volume achieved by
an improved yield. Revenue from the
dairy sector amounted to Rs. 1,454 Mn, Other Income
recording a 22% growth supported by The Group reported other income of
an increase in both volume and price. Rs. 61 Mn driven mainly by the sales
Total revenue recorded for the year proceeds of Rs. 50 Mn received by the
by the Group amounted to Rs. 8,321 sale of RSPO credits.
Mn, against a revenue of Rs. 8,768 Mn
reported in the previous year. Operating costs and
operating profit
Gross Profit
The Group administrative expenses
The plantation sector reported a gross increased by 23% to reach Rs.. 444
profit of Rs.. 3,240 Mn, a 13% decline Mn, on the back of the necessary
compared to the previous year driven salary adjustments carried out during
mainly by the sharp decrease in the the year. The selling and distribution
price. costs increased by 91% to reach Rs..
151 Mn due to the inclusion of the
The dairy sector reported a 13%
Social Security Contribution Levy
improvement in gross loss, reducing it
which came into effect on 1st October
to Rs.. 147 million. This improvement
2022. Accordingly, the operating
was driven by better margins, resulting
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 85

profit margin of the Group weakened stood at 0.99 times at the close of the
marginally to 32% from the previous previous year declined marginally to
years’ 33%. The Group went on to 0.88 times on the back of the increased
report an operating profit of Rs.. assets and reduced revenue.
2,661 Mn compared to Rs.. 2,931 Mn
reported in the previous year.
Capital and Liabilities
Total equity which amounted to Rs.
Net Finance Expenses 6,503 Mn at the beginning of the year
Interest income for the year increased declined by 2% to reach Rs. 6,397 Mn
by 32% to reach Rs. 184 Mn on the on the back of the dividend payments
back of an increase in short-term made during the year. Total liabilities
investments. Meanwhile the interest increased by 30% to reach Rs.9,431 Mn
expenses came down 32% to Rs. 79 due to fresh borrowings of Rs. 155 Mn
Mn as the interest rates witnessed a obtained during the year, higher lease
significant decline during the year. liability arising from the increase in
Consequently, the Group reported right-of-use land assets and increase in
a net interest income of Rs. 105 Mn, tax liabilities. Accordingly, the gearing
an increase of more than 4 folds of the Group increased to 8% from
compared to the previous year. previous year’s 4%.

Pre and Post tax profits

The Group reported a pretax profit
Cash Flow
of Rs. 2,766 Mn, a contraction of 6%
due to the decline in the top line and The Group’s liquidity levels remained
the increased operational costs. The healthy with cash and cash equivalents
tax charged for the year declined by of Rs. 797 Mn by end-year. Net
32% to reach Rs. 421 Mn due to the cash inflow from operating activities
deferred tax provision created last increased by 39% to Rs.3,786 Mn on
year. Accordingly, the Group recorded the back of reduced inventory, trade
a net profit of Rs. 2,345 Mn, recording and other receivables. The Group
a marginal growth of 1% compared to recorded a net cash outflow of Rs.
the previous year. 1,491 Mn from investing activities
due to cash directed to short term
Asset Base investments. The Group reported a
The total assets of the Group net cash outflow of Rs. 2,375 Mn from
amounted to Rs.. 8,834 Mn at the end financing activities. Consequently, the
of the previous financial year increased Group recorded a net cash outflow of
by 7% to reach Rs.. 9,431 Mn as at 31st Rs. 81 Mn during the year compared to
March 2024. This increase was mainly the cash outflow of Rs. 629 Mn during
driven by a Rs.. 919 Mn increase in the the previous year.
short-term investments. Non-current
assets, which amounted to 71% of the
total asset base increased by 5% to
Rs.. 6,674 Mn. The asset turnover which
86 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Social and Relationship Capital

Our primary stakeholders, customers, suppliers, and the community, play a critical role in our value creation process.
As a result, we are committed to maintaining positive and mutually beneficial relationships by offering attractive value
propositions. Investing in these relationships not only enhances our brand value but also delivers tangible financial
benefits, including higher customer retention rates, reduced labour turnover, and increased operational efficiency within
our supply chain.

Value Additions in 2023/24

• 14,515 MT of crude oil • Rs. 2,268 Mn paid to local

• 1,276 MT of palm kernel oil suppliers
• 3,230 MT of kernel cake • Rs. 282 Mn paid to foreign
suppliers
• 5.7 Mn Litres of milk

• Rs. 46 Mn CSR spend

• Rs. 27 Mn community
• 20,832 lives benefited infrastructure investment
• 5,266 families benefited

Engaging with Our Customer Base

Our customer base comprises of B2B customers for both palm oil and dairy and direct customers for products such as
compost. Our relationships with customers are built on the solid foundations of reliability and quality. This approach has
allowed us to retain our customers and maintain consistently high levels of customer satisfaction. A key component of our
customer management strategy is ongoing engagement with the customer base.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 87

We prioritize the health and hygiene of our products and implement stringent quality controls throughout the manufacturing
process. Through rigorous assessments, we aim to ensure the safety and quality of our products, thereby fostering trust
and loyalty among our clientele. Further, maintaining trust among stakeholders is paramount for the Group. We uphold this
trust by adhering to the highest ethical standards in all our business dealings. Integrity, honesty, and transparency are core
elements of our operations, and we strictly comply with all applicable laws and group policies and terms of our contracts with
customers. We maintain a zero-tolerance approach towards corruption, including bribery, embezzlement, extortion, fraud, or
any other form of illegal or unethical conduct.

Our Customer Value Proposition

Suppliers
Our supplier network comprises of a diverse range of individuals and corporates, small and medium-sized enterprises (SMEs),
as well as local and international corporations. These suppliers provide essential inputs such as fresh fruit bunches, fertilizers,

Consistent Superior Quality Our palm oil products adhere to the high-quality standards set by Pyramid
Wilmar, and our dairy products also meet rigorous quality standards that is
expected by our customers.
Reliable and Uninterrupted Supply We have steadily increased our oil palm production by enhancing the yield
through various innovative yield techniques to guarantee continues supply to our
customers. Additionally, we maintain relations with third-party oil palm suppliers.
Engagement We maintain continuous engagement with our customers and value their input,
enabling us to foster long-standing relationships and consistently meet customer
expectations.
88 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

agro inputs, packaging materials, and other necessary supplies. Over the years, we have cultivated these relationships
meticulously to establish a robust and dependable supply chain, which in turn enables us to maintain seamless operations.

2023/24
No. of local suppliers 502

No. of foreign suppliers 16

Payments to local suppliers Rs.. 2,268 Mn

Payments to foreign suppliers Rs.. 282 Mn

We procure Fresh Fruit Bunches (FFB) from 3 Regional Plantation Companies and 2 small-scale plantations. Additionally, we
engage with 300 other suppliers who offer various materials and services necessary for our operations.

Our commitment to sustainability extends to our supplier network, and we maintain a close collaboration with them to
promote sustainable practices. We conduct thorough assessments of suppliers during the onboarding process to ensure
compliance with all regulatory requirements, and we continue to conduct periodic assessments thereafter. Moreover, we
actively participate in supplier development initiatives by sharing our expertise in agriculture and processing, thereby
enhancing the quality of the products we procure while also increasing their productivity.

Initiatives to strengthen supply chain

• Maintaining collaborative relationships

Sharing market insights, providing feedback on product quality and performance, and collaborating on process
improvements to drive efficiency and reduce costs.

• Support for supplier development

Offering assistance in technological developments and sustainable practices. Also include providing training, access
to resources, and sharing best practices.

• Recognition and incentives

Awards, bonuses, or preferential treatment for top-performing suppliers.

• Support in mitigating risks

Assistance in managing risks such as market fluctuations, natural disasters, or regulatory changes can help build
resilience in the supply chain. This could involve sharing risk mitigation strategies, providing insurance coverage, or
collaborating on contingency plans.

Industry Partnerships
We engage in active collaboration with the following professional bodies to nurture the growth and development of our
industry. Our involvement with these organizations enables us to contribute to industry progress while offering our employees
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 89

Supplier Selection opportunities to exchange knowledge into our overall corporate strategy.

Process and expertise with their counterparts.

Through our active participation in
Watawala Plantations has reinforced its
dedication to community development
Identify sourcing these forums, we underscore our by integrating through its “CSR and
requirements dedication to fostering innovation and Village Integration Strategy” outlined
excellence within our industry. through 2025.This initiative, launched
Determine criteria for supplier selection
such as quality, financial stability, during the year is aimed at enriching
• Spices & Allied Products Producers
environmental and ethics and and Traders Association the living conditions of the estate
regulatory requirements community while enhancing the
• Sri Lanka - Australia - New Zealand
Business Council Watawala brand image.
Evaluate and short list suppliers • Ceylon Chamber of Commerce
based on the set criteria We recognize the interdependent
• Colombo Rubber Traders’ relationship we share with the estate
Association
Negotiation and Contracting community and are dedicated to
• Colombo Tea Traders Association
enhancing their standard of living. We
• National Chamber of Commerce work with the estate communities to
Continuous engagement • Planters’ Association of Ceylon achieve social sustainability through
• All Island Dairy Association socio economic development and
• Large Dairy Farm Association empowerment. Listed below are such
• Sri Lanka Food Processors initiatives carried out during the year.
Association
• National Chamber of Exporters

Community Engagement
Our commitment to the welfare of our
estate worker community is integrated

Areas of focus Healthcare Sports & Fitness Education Engagement

No. of
2,120+ 1,210+ 1,403+ 3,000+
beneficiaries
• Health camps for • Renovating the Palm • Women’s day health • Regional : Children’s
regional estates in Grove Badminton and awareness session Day event 2,000+
collaboration with Court for Estate Staff participants
regional hospitals
• Donation of • Awurudu Uthsawaya
• Eye clinics for Estate schoolbooks for the for 1,000+ people
Projects Staff and community children of Estate Staff
carried out
• Dental clinic at the • Awarding of
Talangaha Estate scholarships to the
children of Associates
and Staff
90 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 91

Human Capital

The Group has a workforce comprising engagement includes empowering returns through enhanced productivity
1709 employees, the majority of them through skill development but also enrich our intellectual capital
whom are estate workers (88%), these initiatives and enhancing their social by enhancing our skills, expertise and
individuals hold a crucial role in our standing, thereby elevating the quality knowledge pool.
operations and value creation process. of life of all employees. Investments in
Our holistic approach to employee human capital not only yield financial

GOOD HEALTH DECENT WORK AND GENDER

NO POVERTY
POVETRY AND WELL-BEING ECONOMIC GROWTH EQUALITY

• Rs.5.5 Mn Training Investment • Rs.1,347 Mn payments to

employees
• 1323 of training hours provided to
58 executives

• 207 new recruits • Basic salary growth of 24%

• 12 promotions
92 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

HR Governance
All aspects of Human Resource HR Policies that are in place are,
management are guided by Group’s
• Compensation and Benefits policy
comprehensive HR policy framework
while the Employee Code of Conduct • Equal Employment Opportunity policy
sets out clear guideline on expected • Anti-Harassment and Anti-Discrimination Policy
professional and ethical conduct
• Training and Development Policy
of all employees. All policies and
procedures are developed to provide • Whistle blower Protection policy

structure, consistency, control, • Data Privacy and Confidentiality Policy

fairness and transparency in managing
human resources while ensuring
Team Profile
that we create a dynamic team that
Our team comprises of 1709 individuals representing diversity in age and
is aligned to our corporate values
capabilities. 94.5% of personnel are employed on a permanent basis while the
and philosophy. Further, we comply
remaining are hired on contract basis for non-critical functions. Profile of our team
with the overreaching policies of our
is given alongside.
parent, Sunshine Holdings PLC while
also implementing specific policies Male Female Total
tailored to our business needs. By Sector
Plantations 1,091 561 1,652
OneHR, the centralized HR Dairy 49 8 57
department, serves as the central
hub for all HR activities within the By Contact
Group. It provides strategic direction, Permanent 1,034 515 1,549
standardizes processes, and ensures Contract 56 47 103
consistency across business lines. Trainee 0 0 0
OneHR acts as a liaison between Intern 0 1 1
HR Business Partners (HRBPs) and
different departments, coordinating
efforts to meet organizational
objectives. The HRBPs’ are Integrated
into business units and serve as
strategic consultants to business
leaders through OneHR. They work in
close partnership with OneHR to align
HR initiatives with business objectives,
address the unique requirements of
their units, and ensure the effective
implementation of HR policies and
programs.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 93

Mobility During 2023/24

Industrial Relations Total staff cost for the year amounted to Rs. 1,347 Mn (2022/23 : Rs. 1,213 Mn).

6 trade unions are currently active,

Employee Group Benefits
representing approximately 92% of our
workforce. We uphold the employees’ Executives and staff – Head Office • Insurance
right to freedom of association and • Medical facility
endeavour to foster positive relations • Mobile allowance
through open communication and • Conveyance allowance
engagement. Collaborating closely Executives - Estates • Billet Allowance
with trade union representatives, we • Medical facility
address employee grievances and • Mobile Allowance
concerns in a timely and effective • Fuel/Traveling/Vehicle
manner. • Accommodation
• Utility Payments
Employees are given approximately 15
Staff - Estates • Medical facility
days of notice regarding any significant
• Tea Allowance
operational changes.
• Accommodation
Remuneration and other • Utility payments
Benefits Associates, Plantation workers • Housing

Typically, the Collective Agreement • Watter

between the estate unition and the • Tea allowance

management sets out the estate • Free medicinal drugs

worker’s wages and benefits. And • Medical facility

remuneration of other employees is • Free clinics

in keeping with industry rates and • Childcare facilities for children

governed by the Shop and Office below 5

Employees Act. All remuneration • Wheat flour

packages adhere to applicable labor • Death donation

laws and regulations, ensuring that Performance Management, Recognition and Career
the standard entry-level compensation Progression
offered aligns with the minimum
wage defined by labor laws. During All staff and management grades undergo annual evaluations based on Key
the year there were no incidents of Performance Indicators (KPIs), although this process excludes estate labor. Estate
noncompliance. staff are assessed manually, whereas executive staff are evaluated using the online
HR system. These evaluations incorporate both divisional and individual KPIs to
Beyond remuneration, as shown ensure alignment between the Company’s goals and those of our employees.
alongside we offer a variety of
additional benefits and rewards Employees who demonstrate strong performance are acknowledged and
comprising both fixed and variable rewarded through salary increments and promotions. A monthly cash incentive
components, all designed to retain program recognizes contributions to productivity, while innovation is honored
necessary talent and inspire and separately via an independently evaluated Employee Recognition Scheme (ERS).
uphold high morale. Exceptional contributions are further recognized through quarterly and annual
awards programs.
94 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

to align personal goals with our careers. During the year 12 employees
organizational goals. Outstanding were promoted.
The Group has a well-defined employees are recognized and given
succession plan in place to facilitate the opportunities to progress in their
career progression and strive

Training and Development

We offer ongoing training and development opportunities to equip our employees with essential skills and knowledge. These
training needs are determined during performance appraisals and are aligned with organizational goals and accreditation
standards. Additionally, employee requests for training made during performance evaluations are also considered when
formulating the training calendar.

2023/24
Total investment in training – Rs. Million 5.5
Total No. of training hours 1,383
No. of employees received training 386
Average hours of training per employee 106

These training programs can be broadly categorized into:

• Sending employees to overseas training sessions
• Conducting internal and external training sessions
• Providing training on Standard Operating Procedures (SOPs)
• Offering new employee induction programs
• Facilitating access to LinkedIn Learning

Training programs carried out during the year are,

• Advanced Microsoft Excel
• Sustainability reporting
• Accounting standards related to consolidated financial statements
• Developing leaders in finance
• Microsoft Office training
• Diploma in Applied Taxation
• emPOC2023 Conference & Wilmar Plantation training
• Workshop on Commercial Forestry and Wood Management in Plantation Industry
• PIPOC Conference & Wilmar Plantation training
• SAP training
• Training on managing union demands and strikes
• Stores management
• Executive Development Programme
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 95

Employee Health and Safety

Health and safety standards and a safe work environment. All staff The sustainability team oversees the
guidelines are clearly defined in our members are entitled to medical responsibility of identifying potential
Health and Safety policy to ensure allowances and annual medical check- occupational health and safety hazards
a safe work environment for all ups as part of their compensation by investigating physical, ergonomic,
employees. We have implemented package. Further, our adherence to biological, chemical and psychological
and maintain rigorous health and the RSPO certification underscores conditions, and prepares and
safety controls and standards our commitment to maintaining high maintains the Hazard Identification
across all premises, aligning with safety standards Risk Assessment & Risk Control chart
international best practices and all (HIRARC) with inputs from the estate
relevant regulatory requirements We have established Safety and Health management and other staff. Apart
Additionally, the Collective Agreement Committees (SHCs) in our workplaces from the annual revision, if necessary,
with trade unions includes provisions to enhance employee involvement in the HIRARC also revised after an
for access to medical facilities and health and safety matters. incident occurs.

The Following health and safety services are offered by the Group,

A compulsory annual medical surveillance for all mill employees

Availability of a medical personnel for consultation if necessary

Medical insurance

Work Related Injuries No. Rate

Fatalities due to work-related injuries 0%
High - consequence work-related injuries 0%
Recordable work-related injuries 0.64%
Total recordable incident rate (TRIR) 0.64%
Fatality rate 0%
Near miss frequency rate (NMFR) Not measured

Training on occupational health and safety

• First aid training

• Personnel protective equipment training

• Fire training

• Occupational health and safety training

• Chemical and pesticides application/ handling training

• Material safety data sheet training

• Defensive drive training

• Fertilizer application training

96 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Employee Engagement
To motivate our team effectively,
we prioritize fostering a sense of
• Stationary giveaway reward structures, training, and
• Christmas Celebration career progression opportunities. As
teamwork and camaraderie. Our
• Thaipongal Day Celebration an equal opportunity employer, we
open-door policy is integral to this
• Independence Day Celebration are committed to ensuring that all
effort, promoting engagement and
• Blood Donation campaign individuals are treated fairly and without
encouraging collaboration. By valuing
• Women’s Day Celebration discrimination based on factors such as
the input of every employee, we aim to
gender, ethnicity, religion, or any other
create an inclusive environment where
characteristic protected by law. Our
everyone feels heard and appreciated. Diversity and Inclusion
policies such as Grievance Handling
We hold events throughout the year to
In line with our policy framework, policy and Whistle blower Policy ensure
provide employees with opportunities
culture, and values, fostering a that the Group maintains its zero-
to pursue interests outside of work
diverse and inclusive environment tolerance stance.
and participate in community service
remains a top priority at the Group.
activities.
We are committed to upholding At Watawala, regardless of gender, all
• New Year Festival Celebration a zero-tolerance stance against employees and workers are paid equally
• Business Review Meeting racism, ensuring that every employee based on their roles and experience.

• Udugama Perahera feels respected and valued. This

commitment is integral to our aim to
• Vesak Festival Celebration
create a workplace where diversity
• Annual Award Ceremony thrives, and inclusion is the norm.
• Bana/ Pirith in 3 Estates
The Group upholds the principles of
• Professional Day
equality and fairness in all aspects of
• Mid year performance appraisal
its operations, including recruitment,
• Worlds Children’s Day
Celebration

Workforce Representation

35% Male

65% Female
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 97

Manufactured Capital

The Group’s manufactured capital plays a pivotal role in achieving our strategic objectives, enabling efficiency, high product
quality, and robust processes that enhance decision-making. We have continued to invest in our Manufactured Capital,
emphasizing both physical and digital infrastructure, with a particular focus on factory development and automation.

DECENT WORK AND INDUSTRY INNOVATION

ECONOMIC GROWTH AND INFRASTRUCTURE

Value Additions in 2023/24

• Rs. 113 Mn investment in motor

vehicles • Continuous investment in digital
• Rs. 14 Mn investment in plant and infrastructure
machinery

• 24 new recruits • Commenced evaluation of a new

• 12 promotions palm oil effluent treatment system

at the palm oil mill
98 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Our consistent delivery of high-quality of total assets. The Group has expenditure amounted to Rs. 290 Mn
output is underpinned by the strength continued to invest in enhancing its primarily representing investments
of our manufactured capital. As of manufacturing capabilities, which in buildings and agriculture motor
the end of the year, The Group’s include factories, palm oil mill, vehicles.
manufactured capital stood at machinery, equipment, and digital
Rs. 2.6 billion, representing 27% infrastructure. During the year, capital

Segmental Analysis of Groups’ Manufactured Capital

Rs. Mn 2023/24 2022/23
Plantations 1,213 1,139
Dairy 1,343 1,344

Depreciation charge
Plantations 203 195
Dairy 73 76

Manufactured Capital by Type (Rs. Mn)

Plant & Machinery 468
Buildings 1,479
Motor Vehicles 125
Equipment 34
Furniture and Fittings 26
Other 423
Total 2,556

Enhancing manufactured Capital

The Group dedicates substantial and enhancement of our manufactured our products and the fulfilment of
financial resources to the maintenance capital, ensuring the high quality of customer expectations.

Segmental Analysis of Groups’ Capital Expenditure

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 99

Rs. Mn 2023/24 2022/23

Plantations 357 445
Dairy 185 165

During the year, we initiated a project to increase the capacity of the crop-holding area at the palm oil mill. We also invested
Rs. 96 million in agriculture motor vehicles for the estate and palm oil mill. Meanwhile, we commenced exploring a new
effluent management system for the oil palm mill.

Our Processing Facilities

Oil palm Mill

Our palm oil mill situated in the Nakiyadeniya Estate, Udugama,
is equipped with the latest palm oil milling technology and state-
of-the-art machinery to ensure the highest quality standards and
operational efficiency.

Processing Capacity 20 MT per hour of FFB

Certifications • ISO 45001:2018 - Occupational health and safety
• ISO 50001:2018 – Energy management systems
• ISO 14001:2015 – Environmental management systems
• Roundtable on Sustainable Palm Oil (RSPO) certification
Modifications/capacity expansions carried out during Commenced expansion of the crop holding ramp for the palm oil
2023/24 mill

Dairy Processing Plant

The dairy farm has a fully computerized, state-of-the-art milking
parlour system equipped to monitor each animal’s yield and quality
of the milk produced. The double raw rapid exit milking parlour which
can milk 40 cows at a time and is one of the most advanced milking
parlour’s in Sri Lanka at present.

Chilling and storage capacity 23,000 Litres/daily

100 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Intellectual Capital

Watawala Brand Name

System & Innovation

Process

Certification
Knowledge &
Expertise

Our intellectual capital is vital in driving us toward our strategic aspirations, especially amidst prevailing uncertainties and
challenges in the operating environment. Our brand, tacit knowledge and expertise, systems and processes, along with our
innovative capabilities, enable us to achieve our strategic goals while meeting the expectations of our stakeholders.

DECENT WORK AND INDUSTRY INNOVATION SUSTAINABLE CITIES RESPONSIBLE PARTNERSHIPS

QUALITY EDUCATION ECONOMIC GROWTH AND INFRASTRUCTURE AND COMMUNTIES CONSUMPTION FOR THE GOALS
AND PRODUCTION

Value Additions in 2023/24

• Upgrading of the ERP system with

strategic upgrades • Driving technological
advancements to achieve better
productivity and efficiency

• Enhancing the productivity and

efficiency of the oil palm mill by • Enhancing knowledge of estate
real-time analytics for timely and and mill workforce by providing
informed decision-making training in Malaysia productivity
and efficiency
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 101

Brand Visibility
Systems and Processes
We remain dedicated to streamlining we enhanced our technological and digitalization efforts, significantly
our processes, consistently upgrading framework by introducing strategic boosting efficiency and productivity
our systems to incorporate the latest upgrades and customizations to our across our operations.
technologies. Our focus remains on ERP and business applications. These
Listed below are some initiatives
enhancing productivity and efficiency improvements were meticulously
carried out to upgrade Groups’
across operations. During the year designed to expand our digitization
systems and processes

Area Task
Human Resource Management • Streamlining the digital muster and task management by minimizing manual inputs
and enhancing task allocation efficiency
• Intelligent attendance system to increase accuracy by use of “iHarvest”
• OneHR system for entire HR digital practices from performance management to
leave application, etc.
Palm Oil Mill Operations • Real-time analytics for timely and informed decision making
• Real-time visibility for incoming crop data and dispatches
Dairy Operations • Dairy Master: milking parlour production system
• SAP system: financial management
• NIR testing facility
• Weighbridge integration

Knowledge and Expertise

Our ability to attract and retain the value proposition. Additionally, the quality of our product deliverables.
essential skill sets needed to meet Group’s unwavering commitment to As a result, the knowledge and
and exceed customer expectations investing in training and development experience of our team members are
is driven by our efficient recruitment has enhanced our team members’ crucial to our value-creation process.
process and comprehensive employee skills, reflected in the exceptional

Innovation and Operational Excellence

Innovation in products and processes the quarterly Town Hall meetings
is crucial for retaining our customer where staff members have received
base and driving sustainable growth. certificates and cash rewards.
As a group, we strive to foster a
learning culture where innovation is
encouraged and rewarded at all levels
of the organization. These innovations
are recognized and appreciated at
102 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

The following initiatives were carried out during the year,

Palm Oil operations • Optimizing fertilizer cost by application of a mix of organic and inorganic fertilizer,
soil mapping and site-specific fertilizer application
• Use of a steam-powered turbine to reduce electricity consumption from the grid
• Implement yield-taking and yield-making activities to improve yield
• Improve crop quality and strengthening crop grading
• Fleet management system to track machinery productivity

Dairy operations • Reducing cattle mortality

• Reducing feed cost, sourcing higher quality feed, and in-house feed mixing
• Transport cost deducting on investing own fleet

Certifications
Given below is a list of certifications we complied with during the year covering areas related to product quality, health and
safety and sustainability. These certifications facilitate benchmarking with global industry best practices, ensuring that our
processes evolve continuously to the highest standards for the respective products or processes. These certificates support
our brands, enhancing customer confidence in our production processes.

Certification Watawala Plantations Watawala Dairy

RSPO þ
ISO 14001 Environmental manage- þ
ment system
ISO 45001:2018 þ
ISO 50001 Energy management þ
System
RSPO Kernel Crusher Plant Supply þ
chain
Environmental Protection License þ þ
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 103

Natural Capital
Our business activities not only rely on but also significantly impact natural resources such as land and water resources.
We therefore not only have a compelling economic rationale but also a moral obligation to protect and enrich our natural
resources. As an RSPO certified operation, we adhere to stringent RSPO conditions that ensure the highest standards in social
and environmental management.

Our Natural Capital FY 2023/24

Land Resources FY 22/23 FY 23/24

• Homadola Estate hectares 1,367.77 1,367.77

• Talangaha Estate hectares 1,725.34 1,725.34

• Nakiyadeniya Estate hectares 1,713.80 1,713.80

• Royston Estate hectares 17.43 17.43

Total Land Extent hectares 4,824.34 4,824.34

Energy Consumption ( GRI 302-4)

• Non-Renewable Sources GJ 4,874.28 11,301.97

• Renewable Sources GJ 126,421.40 200,224.44

Water Consumption (GRI 303-5) M3 32,453 53,788

Value Additions in 2023/24

• 23% of energy requirement met • Continuous effort for

through renewable sources biodiversity conservation

• 88.8% of organic waste reused in

production process • 5.55% reduction in emissions
104 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Environmental Governance
A robust environmental governance relevant stakeholders to coordinate
Environmental Policies in Place
system is in place to drive the management plans and initiatives
include;
Group’s environmental agenda. across our operations. Periodic audits
The Group’s sustainability are carried out to verify compliance • Environment policy
commitments are articulated through with EMS (Environmental Management • Zero burning policy
a comprehensive suite of policies, System) and to determine if the EMS
• Sustainable agricultural policy
SOP’s and management plans. Estate has been implemented properly.
Management Units (EMU’s) have been • Energy management policy
established in each of our estates and
are responsible for engaging with all

Environment Water Waste Soil GHG

Conserva�on Management Management Conserva�on Repor�ng
Plan Plan Plan Plan

Land Management • Adoption of integrated pest

As a RSPO certified operation, management approach that includes
WATA is committed to conserving, a combination of natural and
protecting, and enhancing ecosystems mechanical pest reduction tactics.
within and surrounding its operations Chemical control methods are used
by ensuring sustainable management minimally.
of natural resources. This includes
• Increasing the carbon content of soil
soil management, sustainable
with the use of organic fertilizer
management of forests, combating
desertification, halting and reversing • Use of cover crops, stone terraces,
land degradation and biodiversity loss. live terraces and draining system to
reduce soil erosion, control weed
Soil Management development and improve soil
We ensure sustainable agricultural quality.
practices are adopted across all our
estates to maintain soil quality. Soil
management practices adopted in our
estates include;

• Ensuring that only approved

fertilizers and agrochemicals that
meet international quality and
safety standards are used on our
plantations.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 105

Biodiversity Conservation
SOP’s relating to Biodiversity
(GRI 304-2)
Conservation
Our approach to biodiversity conservation which is based on globally accepted
• Management of riparian buffers HCV (High Conservation Value) management mechanisms, involves a three-step
and enforcement for road and approach as depicted below.
bridge design to minimize
fragmenting biological corridors
such as riparian buffers Identification Development Development
Of the Of an HCV Of an HCV
• Monitoring water quality, riparian management monitoring
HCV areas
buffers, and water body buffers plan plan
(including areas planted with oil
palm) and to monitor quality of
Clearly defined policies and SOP’s with regards to biodiversity conservation
in-coming water and outgoing
ensure that RSPO guidelines and national regulations are strictly adhered to and
supply.
that progress is tracked and monitored on an ongoing basis. Over the years we
• Management of steep areas have built significant institutional capacity within our organization to drive our
(including oil palm areas) to conservation efforts. Meanwhile, we continue to closely partner with government
prevent slope failure and and local communities to drive broader conservation initiatives.
unmitigated erosion.
• For land clearance and Total protected area under Watawala Plantations GRI
preparation of hilly areas 304-3
(contouring)
The Protected Areas (PA) around
• For road and drain design to The total extent of HCV
Watawala Plantations include the
minimise erosion management area is approximately
Biosphere Forest Reserve Kanneliya-
525.39 ha., representing 10.75% of
Dediyagala-Nakiyadeniya Complex
the total Watawala concession.
(KDN), the Pattaramoraketiya,
Nerugalkanda and Malambure Forest
There was no deterioration of
Reserves. Talangaha and Homadola
the protected areas under our
estates boundaries overlap with the
care during the year reflecting
KDN complex and the Nerugalkanda
the effectiveness of our habitat
Forest Reserve, both of which are
protection measures.
Protected Areas.
106 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Extent of
Description of HCV Management Areas (HCVMA) Combinations of HCV*
HCVMA

Mid - Succession MDF fragments that are isolated throughout HCV 1 and 3 109.55
Watawala Complex

Mid - Succession MDF fragments link to Protected Areas (KDN HCV 1, 2 and 3 1.87
Complex)

Riparian Reserves that are connected to fragments of mid succession HCV 1, 3 and 4 River Buffer (RB) 43.7
MDF

Mid - Succession MDF fragments with steep slopes (>25°) HCV 1, 3 and 4 Steep Slope (SS) 80.69

Mid - Succession MDF fragments on steep slopes (>25°) and are HCV 1, 3 and 4 Steep Slope (SS) and 33.76
connected to riparian reserves. River Buffer (RB)

Mid - Succession MDF fragments that are connected to National HCV 1, 2, 3 and 4 Steep Slope (SS) 38.71
Protected Areas with steep slopes (>25°)

Mid - Late Succession MDF fragments that are connected to HCV 1, 2, 3 and 4 Steep Slope (SS) and 153.59
Protected Areas (KDN Complex) with steep slopes (>25°) and River Buffer (RB)
riparian reserves.

Mid - Succession MDF fragment that is connected to National HCV 1, 2, 3 and 4 Steep Slope (SS) and 1.91
Protected Areas (the KDN Complex), is relatively steep with slopes Water Bodies (WB)
(>25°) and has a water body in the forest.

Water collected from river buffer that is used by local community in HCV 4 River Buffer (RB) and 5 1.19
their daily necessity

Areas with oil palm planted on steep slopes (>25°) HCV 4 Steep Slope (SS) 44.48

Areas with oil palm planted along river buffer HCV 4 River Buffer (RB) 14.17

Areas with oil palm planted in water bodies buffer HCV 4 Water Bodies (WB) 1.76

Points with water resources utilized by locals HCV 5

Areas with Bodhi Trees, Shrines and Temples HCV 6

525.39

*HCV 1: Concentrations of biological Intact Forest Landscapes (IFL) that HCV 3: Rare, threatened, or
diversity including endemic species, are significant at global, regional or endangered ecosystems, habitats or
and rare, threatened or endangered national levels, and that contain viable refugia.
(RTE) species that are significant at populations of the great majority
HCV 4: Basic ecosystem services in
global, regional or national levels. of the naturally occurring species in
critical situations, including protection
natural patterns of distribution and
HCV 2: Large landscape-level of water catchments and control of
abundance.
ecosystems, ecosystem mosaics and erosion of vulnerable soils and slopes.
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 107

HCV 5: Sites and resources cultural, archaeological or historical IUCN Red List species and
fundamental for satisfying the basic significance, and/or of critical cultural, national conservation list
necessities of local communities or ecological, economic or religious/ species with habitats in
Indigenous people (for livelihoods, sacred importance for the traditional Watawala Region GRI 304-
health, nutrition, water), identified cultures of local communities or 4
through engagement with these indigenous peoples, identified
The Watawala region is home to over
communities or Indigenous people. through engagement with these local
112 species of amphibians, reptiles
MEC|WATA: HCV Assessment Report, communities or indigenous people.
mammals and birds. The following
Udugama, Galle District, Sri Lanka
have been identified as protected
HCV 6: Sites, resources, habitats species.
and landscapes of global or national
Energy Management
Energy management is a critical across our operation. Meanwhile, a
No. of species element of our climate agenda and we clearly articulated energy policy for
have clear targets to increase energy Nakiyadeniya Palm Oil Mill (NPOM)
Critically 8
efficiency and reduce emissions ensures strict compliance with all
Endangered plants
across our operations. This includes regulatory requirements pertaining to
Endangered plants 11 targeted efforts to optimize energy energy and emission management.
Vulnerable plants 25 consumption, reduce energy waste
Endangered animal 2 and increase the use of renewable
species energy sources. We comply with
ISO 50001 enabling continual
Vulnerable animal 2
improvement in energy performance
species

Our Energy Policy aims to;

• Engineering know-how, ensuring energy conservation, efficiency and utilizing appropriate renewable energy
• Encourage employees to actively engage in energy conservation measures by providing awareness and
necessary resources to achieve objectives and targets
• Take energy efficiency evaluation dimensions into account in our new designs, investments, process changes,
facility upgrades and equipment purchases
• Ensure our operations comply with all applicable legal, regulatory and other requirements those relate to our
energy use
• Communicate our policy to appropriate stakeholders at all levels internally and externally to ensure its
contents are understood and all are committed and contributing for continual improvement in reviewing
energy targets, achievement and revising
• Promote renewable energy initiatives to conserve natural resources
108 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Energy reviews are carried out periodically to identify significant energy uses (SEUs) within the factory premises. The task
requires detailed quantitative and qualitative analysis of each energy source also enabling us to measure our energy footprint
on an ongoing basis. Meanwhile, energy performance is measured and monitored against 7 energy performance indicators.

Energy Consumption within the Organization (GRI 302-1)

Type of Fuel Operation/ Energy Type of

Non Renewable Section Share % energy used

- Diesel GJ 3,551.824 Boiler 35% Biomass

- Petrol GJ 435.842 Kernel Plant 18% Electricity

Renewable Press 14.3% Electricity

- Bio gas GJ - EFB Press 10.9% Electricity

- Solar GJ - Nut Plant 9.2% Electricity

- Biomass 200,224.44 Decanter 5.3% Electricity

Electricity (GRID) GJ 5,626.354 Biogas Plant 4.6% Biomass

Mill Turbine 1,687.95 Sterilizer 1.8% Biomass

Total Energy Consumption 211,526.41 Effluent Plant 0.9% Electricity

* Basis for measurement: fuel - measurement calculated

based on meter reading when issuing

fuel, energy - measurement calculated based on meter

readings and invoices.

Energy Intensity GRI 302-3

Homadola Nakiyadeniya Talangaha Palm Oil

Estate Estate Estate Mill
FFB (Kg) 10,544,550 22,491,930 24,035,640 NA

Total Energy Used (GJ) 1,170.94 1,167.65 1,222.73 8,041.65

Energy Intensity (Kg/GJ) 9,005.231 19,262.58 19,657.32 138.88

Petrol total Petrol mass Mass in NCV Energy/TJ GJ

L (M3 * 752.5) Giga gram

13,074.3 9,838.41075 0.009838411 44.3 0.435841596 435.842

Diesel Total Diesel mass (840) Mass in Gg NCV Energy/TJ GJ

98,334 82,600.56 0.08260056 43 3.55182408 3,551.824

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 109

Petrol Petrol mass Mass in NCV Energy/TJ GJ

(M3*752.5) Giga gram

HMD 3,484.3 2,621.93575 0.002621936 44.3 0.116151754 116.1518

NKD 4,396 3,307.99 0.00330799 44.3 0.146543957 146.544

TLG 5,194 3,908.485 0.003908485 44.3 0.173145886 173.1459

Mill 0 0 0 44.3 0 0

Petrol Petrol mass Mass in NCV Energy/TJ GJ

(M3*752.5) Giga gram

HMD 24,350 20,454 0.020454 43 0.879522 879.522

NKD 24,759 20,797.56 0.02079756 43 0.89429508 894.2951

TLG 24,026 20,181.84 0.02018184 43 0.86781912 867.8191

Mill 25,199 21,167.16 0.02116716 43 0.91018788 910.1879

Petrol Diesel Grid Biomass Total Energy FFB Intensity

HMD 24,350 20,454 0.020454 43 0.879522 879.522 9,005.231

NKD 24,759 20,797.56 0.02079756 43 0.89429508 894.2951 19,262.58

TLG 24,026 20,181.84 0.02018184 43 0.86781912 867.8191 19,657.32

Mill 25,199 21,167.16 0.02116716 43 0.91018788 910.1879

Total 435.8415962 3,551.82408 7,314.3036 200,224.44 11,602.96928

Water Management
GRI 303-1 and GRI 303-2
As a plantation company water is a critical input resource in our operation. The palm oil mill operation too requires a
considerable volume of water during the extraction process of crude palm oil from fresh fruit bunches. Palm oil mill effluent
(POME), the main organic waste from our operation meanwhile includes biochemical oxygen demand (BOD) and chemical
oxygen demand (COD) which can contaminate water bodies if not responsibly treated. Furthermore, the Watawala region
controls part of the catchment area for Gin Ganga which is the main raw water source for the Greater Galle Water Supply
Scheme. Preserving the supply and quality of our water resources is therefore of critical importance for the long-term viability
of our operation.
110 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Water conservation is practised across enhance water efficiency. Meanwhile, water and effluent quality parameters
our estates and milling operation. buffer zones play an important role set by regulatory standards are
Sustainable agricultural practices in filtering herbicides and suspended stringently maintained. 24 sampling
such as the use of cover crops and solids from contaminating water points are maintained across our
preservation of catchment areas have bodies. operation at strategic locations to test
been adopted in addition to practices water quality.
We also carry out water and effluent
such as rainwater harvesting and
tests on a regular basis to ensure that
water recycling to conserve water and

Water Conservation practices at WPL

• Mucana is used as a cover crop

• Buffer zones and Riparian zones are established as per the width of the rivers

• Native indigenous trees are planted along the streamlines to act a filter

• Application of weedicides and fertilizers are prohibited in the buffer and riparian zones

• Water catchment areas and HCV forest have been identified and they have been protected

• Man-made lake haves been constructed for the rainwater harvesting

• Rainwater harvesting and deep drainage are used to store the rainwater

• In waterlogged locations, Kumbuk and Nadun plants are planted

• A catchment area and chemical-free zone of 60 meters around the water body is preserved

• Land contour maps are reviewed

• Training and awareness to all employees and their families about the importance of conserving water and the
ways of doing it
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 111

Water Withdrawal by Source ( GRI 303-3) Water Discharge by Source ( GRI 303-4)
m3 m3
Surface Water 53,788.270 Surface Water 50,649.080
Ground Water 0 Ground Water 0
Seawater 0 Seawater 0
Produced water 0 Third Party Water 0
Third Party Water 0
Total Water Withdrawal 53,788.270 Total water discharge
Total water withdrawal from all areas with 0 Total water discharge to all areas with water 50,649.080
water stress stress
Total water withdrawal from 0 Total water Discharge to 0
I. Freshwater (≤1,000 mg/L Total Dissolved I. Freshwater (≤1,000 mg/L Total Dissolved
Solids) Solids)
II. Other water (>1,000 mg/L Total Dissolved 0 II. Other water (>1,000 mg/L Total Dissolved 0
Solids) Solids)

Total Water Consumption (Total water withdrawn – total water discharge) GRI 303-5
3,139.190 m3

Material Management Quantity/ % of recycled

Key raw materials used in our Kg Material used
operation include oil palm fresh
Non-Renewable Materials Used 4,124,276 12.20
fruit bunches, fertilizer, animal feed,
Chemical Fertilizer 4,124,276 12.20
and animal medicine. Material
management remains a key focus
amidst rising raw material prices. We Renewable Materials Used 29,688,115 87.80
therefore continue to explore material
Compost 4,017,955 11.88
circularity within our operation to
Palm kernel shell (mill boiler) 3,987,740 11.79
increase the proportion of recycled
material used in the operation. Decanter cake 4,986,810 14.75
An onsite composting facility has Palm fruit fiber 7,310,850 21.62
been established at Nakiyadeniya
EFB 7,896,570 23.35
to manufacture organic fertilizer
Cow dung 1,488,190 4.40
from waste generated through our
operations. Meanwhile, kernel shells,
fibre and empty fruit bunches are
used as biomass for the boiler at the
Nakiyadeniya palm oil mill.

Materials Used ( GRI 301-1, GRI 301-2)

112 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Waste Management
GRI 306-1 and 306-2
Waste management is a critical environmental concern in the oil palm industry due to the relatively high amount of Palm Oil
Mill Effluent (POME) generated from the milling process. Unless properly treated POME releases a large amount of GHG
gases while also negatively impacting surrounding land and water bodies. To ensure such negative impact from POME is
prevented, anaerobic and aerobic bacterial treatment systems integrated with modern separation processes followed by
industrial scale ponding systems and land application, have been adopted widely by WATA to treat POME before being
released to the environment. 88.8% of the organic waste generated in our estates meanwhile is also re-used as fuels for
the mill or as organic fertilizer for our crops. Meanwhile, responsible waste management practices are adopted across our
operations to identify, segregate, store and dispose of other waste in the least harmful way to the environment.

Waste Generated ( GRI 306-3)

Non Hazardous Waste Hazardous Waste
Type Amount Generated Type Amount Generated
Damaged or unripen/ 0 tons Cotton rags Not Measured
overripe FFB
EFB 7,896.570 MT Used oil/ lubri- 600 L
cants
Fruit fiber and shells Palm fruit fiber E-waste Not Measured
7310.850

Palm kernel
Shell (Mill boiler)
3,987.740 MT

Kernel cake 3,230 MT Empty 900 Kg Dispose for

weedicide/ incineration
chemical cans
Boiler ash Not Measured
Decanter cake 4,986.810
Leftover food Not Measured
Waste polythene & lunch Not Measured
sheet
Paper waste/ cardboard Not Measured

Glass waste Not Measured

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 113

Waste Management Practices at WATA

Over 700 employees participated

in programs on environmental
aspects including the importance of
responsible waste management.

Waste by Disposal method

Waste Diverted from Disposal ( GRI 306-4)

Re-used in operation Tons 29,688.115
Recycled Litres 600

Waste directed to disposal ( GRI 306-5)

Incineration Kgs 900
Landfill Kgs -

Emissions
GHG emissions from our estate and mill operation is a result of the combustion of fossil fuel used in transportation and
fertilizer application. To combat emissions arising from open burning, we have adopted a zero-burning policy for all oil palm
estates. Focused efforts to reduce our dependence on fossil fuels meanwhile has enabled us to take meaningful action
towards reducing GHG emissions.

Direct ( Scope 1) GHG Emissions* GRI 305-1

114 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Source tCo2e
PK Crusher 3,540.89
Fuel Mill 75.54
POME 3,115.01
Land Conversion 6,097.69
Fertilizer 956.73
N2O From Fertilizer 1,382.15
Fuel Estates 432.54
Total Direct (Scope 1) GHG Emissions 15,600.55

Indirect ( Scope 2) GHG Emissions* ( GRI 305-2)

Location tCo2e
Grid Electricity 666.06
Total Indirect (Scope 2) GHG Emissions

Other indirect (Scope 3) GHG emissions* GRI 305-3

tCo2e
Nil Nil
Total total Indirect (Scope 3) GHG Emissions
*We used the latest RSPO PalmGHG calculator and GHG Protocol accounting standard to map our GHG emissions.

GHG emissions intensity GRI 305-4

FY 2022/23 FY 2023/24
tCO2e/t FFB 0.18 0.17
tCO2e/ha 2.36 2.71
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 115
116 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Annual Report of the Board of Directors

on the Affairs of the Company
The Board of Directors of Watawala Watawala Plantations PLC is a public The Registered Office and Head
Plantations PLC takes pleasure in limited liability company incorporated Office of the Company is located
presenting its Annual Report to the in Sri Lanka in 1992 under the at No.60, Dharmapala Mawatha,
shareholders for the financial year Previous Companies Act No.17 of Colombo 03, Sri Lanka.
ended 31 March 2024, together with
1982 and re-registered as required
the audited financial statements of
under the provisions of the Companies The Financial Statements were
the Company, consolidated financial
Act No.07 of 2007. The re-registration reviewed and approved by the Board
statements of the Group for the said
number of the Company is PQ 65. of Directors on 29 May 2024.
year and the Auditor’s Report on those
financial statements, conforming to
the requirements of the Companies The issued shares of the Company Statutory Disclosures Section 168 of
Act No.07 of 2007 and Listing Rules were listed on the Main Board of the the Companies Act No.07 of 2007,
of the Colombo Stock Exchange Colombo Stock Exchange in Sri Lanka requires the following information to
(CSE). The Report is also guided by in 1997. be published in the Annual Report
their commended best practices on prepared for the year under review.
Corporate Governance.

Disclosure requirements Reference to the Disclosure reference for compliance Page

companies Act
No. 07 of 2007
The nature of the business of the Company Section168(1)(a)(i) About Us 4-6
and the Group

The classes of business in which the company Section168(1)(a)(ii) Note 19 to the Financial Statements– 204
has an interest, whether as a shareholder of Investments in subsidiaries
another company or otherwise

Financial statements for the accounting period Section168(1)(b) The Financial Statements of the Company 158
completed and signed in accordance with and the Group for the year ended 31
Section 151 & 152 March 2024 duly signed by the Financial
Controller and two Directors
Auditor’s report on the Financial Statements of Section168(1)(c) Independent Auditors’ Report 150-154
the Company and the Group
Any change in accounting policies made Section168(1)(d) Note 301 to the Financial Statements– 164
during the accounting period Changes in Accounting Policies
Particulars of entries in the interests register Section168(1)(e) Note 36 to the Financial Statements– 220
made during the accounting period Related Party Transactions
Remuneration and other benefits of Directors Section168(1)(f) Note 9 to the Financial Statements– 185
during the accounting period Expenses by Nature
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 117

Total amount of donations made by the Section168(1)(g) The Group did not make any donations 89, 93
Company or the Group during the accounting for the year under review
period
Names of the persons holding office as Section168(1)(h) Board Profiles 26 - 29
Directors of the Company as at the end of
the accounting period and the names of any
persons who ceased to hold office as Directors
of the Company during the accounting period
Amounts payable by the Company to the Section168(1)(i) Note 9 to the Financial Statements– 185
person or firm holding office as Auditor of Expenses by Nature
the Company as audit fees and as a separate
item, fees payable by the Company for other
services provided by that person or firm;
Particulars of any relationship (other than Section168(1)(j) The Company’s Auditors during the 150 - 154
that of auditor) which the auditor has with period under review were Messrs KPMG,
or any interests which the auditor has in, the Chartered Accountants The auditors do
Company or any of its subsidiaries not have any relationship or interest with
the Company or Group other than that of
an Auditor
Signed on behalf of the Board by two Section168(1)(k) 120
Directors and the Company Secretary
118 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

In addition to the above, the following information is disclosed. The details are
provided with in notes to the Annual Report, which form and integral part of
the Annual Report of the Board of Directors.

Disclosure Note reference Page

Principal activities and significant changes to About Us 4-6

the nature of business
Watawala Plantations PLC holds 89.9% directs take in
Watawala Dairy Ltd. The principal activities of the Group
during the period continued to be cultivation, manufacture
and sale of crude palm oil and Dairy farming.
Review of operations and future developments Chairman’s Message 19 - 21

Audited Financial Statements 155 - 229

Financial Statements The Financial Statements of the Company and the Group 155 - 229
have been prepared in accordance with Sri Lanka Accounting
Standards laid down by The Institute of Chartered
Accountants of Sri Lanka (CA Sri Lanka) and comply with the
requirements of Companies Act No.07 of 2007 and the Listing
Rules of the Colombo Stock Exchange
Directors’ Responsibility for Financial The Statement of Directors’ Responsibility for Financial 129
Reporting Reporting
Significant accounting policies Note 3 to the Financial Statements–Significant Accounting 164 - 180
Policies
Going concern Note 2.7 to the Financial Statements–Going concern 163
Income Note 3.11 to the Financial Statements–Segmental Analysis by 181 - 184
principal activities and other income
Financial results and appropriations Statement of Profit or loss 155

Statement of Comprehensive Income 156

Statement of Financial Position 157, 158

Statement of Changes in Equity 159, 160

Statement of Cash Flows 161

Stated capital and reserves Statement of Changes in Equity 159, 160

Dividend on ordinary shares Note 12 to the Financial Statements–Dividends per share 188
Taxation Note 10 to the Financial Statements–Income tax expense 186, 187

Note 30 to the Financial Statements–Deferred income tax 216 - 218

liability
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 119

Capital expenditure The total capital expenditure on purchase and construction 189 - 203
of property, plant and equipment and expenditure incurred
on immature plantations by the Group and the Company as
at 31 March 2024 amounted to Rs..326 Mn and Rs.. 253 Mn
respectively (2022/23 Group: Rs.. 418 Mn and Company: Rs..
380 Mn). Details are given in Notes 14, 15, 16 and 17 to the
Financial Statements
Property, plant and equipment Note 14 to the Financial Statements–Property, plant and 189 - 193
equipment
Statutory payments The Directors, to the best of their knowledge and belief, 185, 186
are satisfied that all statutory payments in relation to the
Government and the employees have been made up to date
Events after the reporting date Notes 37 to the Financial Statements–Events occurring after 221
the reporting date
Register of Directors and Secretaries As required under Section 223 (1) of the Companies Act No.07 220, 221
of 2007, the Company maintains a Register of Directors and
Secretaries which contains the name, surname, former name
(if any), residential address, business occupation, dates of
appointment and dates of resignation (if applicable) of each
Director and the Secretary. Particulars of entries in the interest
register are set out in Note 36 to the Financial Statements
Historical information Information relating to earnings, dividend, net assets and 239 - 241
market capitalization is given in the Historical Financial
Information, investor information
Shareholdings Investors Information 239 - 241
Equitable treatment to shareholders The Company has always ensured that all shareholders are 34 - 41
treated equitably
Environmental protection To the best of knowledge of the Board, the Group has 104 - 114
complied with the relevant environmental laws and
regulations. The Company has not engaged in any activity that
is harmful or hazardous to the environment.
Directors’ interests in transactions Notes 36 to the Financial Statements–Related Party 220 - 222
Transactions

The Related Party Transactions have been complied with Rule

9.3.2 of the Listing Rules and the code of Best practices on
Related Party Transactions under the Securities and Exchange
Commission Directive issued under Section13(c) of the
Securities and Exchange Commission of Sri Lanka Act No.36 of
1987.
Directors’ emoluments Note 9 to Financial Statement 185
Corporate governance Corporate Governance Report 34 - 56
Directors’ meetings Corporate Governance Report 34 - 56
120 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Risk management and internal control Risk management and internal control 69 - 76
Insurance and indemnity Ultimate parent, obtained an insurance policy to cover -
Directors’ and Officers’ liability

Notice of Annual General

Meeting
The Thirtieth (31st) Annual General
Meeting (AGM) of the Watawala
Plantations PLC (Company) will be
held online via a virtual platform on
Friday 28th June 2024 at 10.15 AM.

Acknowledgement of the
Contents of the Report
As required by Section 168(1)
(k) of the Companies Act No.07of
2007, the Board of Directors hereby
acknowledges the contents of this
Annual Report.

V Govindasamy
Director

Sunil G Wijesinha
Chairman

Corporate Services (Pvt) Ltd

Secretaries, Watawala Plantations PLC

29 May 2024
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 121

Report of The Remuneration Committee

Terms of Reference Composition Key Areas of Focus

The Remuneration Committee forms a The Committee is made up of three Remuneration policy for Key
key part of the governance framework Directors namely; Management Personnel - Review and
of the Group and carries the mandate approve the overall remuneration
to oversee the compensation and policy, and practices of Watawala
H.D. Abeywickrama–Chairman
benefits policies adopted by the Plantations PLC and Watawala
Group, and in doing so, review and (Non-Executive, Independent) Dairy Limited. Remuneration levels
recommend overall remuneration are reviewed annually by the
strategy, policies and performance- S. G. Wijesinha-(Non-Executive, Remuneration Committee through
based pay plans. Furthermore, it Independent) a process that considers individual,
reviews performance, compensation business unit and overall performance
and benefits of the Directors, CEO, of the Group and market practices.
M. R. Rao-(Non-Executive, Non-
COO, and key management who
Independent)
support and implement decisions at
Remuneration structure - Set and
an apex level.
review all components of the
Corporate Services (Pvt.) Limited acts
remuneration and other benefits of
as the Secretary to the Remuneration
The Group is able to attract, motivate, the Chief Executive Officer, Chief
Committee. The minutes of the
and retain key talent with the Group’s Operating Officer, Directors and
Remuneration Committee approved
compensation and benefits policy such other Senior Management
by the said Committee is circulated
which is compliant with applicable as the Board may determine
and affirmed by the Board of
laws and regulations. The evaluation of whilst ensuring the integrity of the
Directors.
performance of Directors, CEO, COO, Group’s compensation and benefits
and key management was considered Purpose/ Objectives Of programmed is maintained. The
in determining remuneration whilst
The Committee Committee continues to provide
also using market comparators for analysis and advice to ensure key
similar positions and in accordance The objective of the Remuneration management personnel remuneration
with the Company’s Compensation Committee (“the Committee”) is to is competitive in the marketplace. The
and Benefits policy. ensure that a consistent remuneration Committee has the authority to seek
framework is adopted and practiced external independent professional
for Directors and Senior Management advice on matters within its purview.
The Chairperson of the Committee
reports on the developments which in the Group.
have taken place since the last Board Performance evaluation - Review and
meeting, if any, and updates the The Committee ensures that the approve the performance appraisal
Board on various matters, as relevant Remuneration Policy of the Group is for the Chief Executive Officer, Chief
and requested. fair, transparent and competitive, and Operating Officer, Directors, and
linked to the Group’s short-term Senior Management. A significant
portion of executives’ total potential
and long-term business strategy to
remuneration is performance related
drive sustainable performance and
in order to drive the right behaviour to
entrepreneurship. The Committee
optimize Group performance.
appraises the performance of the
senior management against the
set goals and targets, to determine
increments, bonuses, and other
performance-based incentives.
122 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Non-Executive Directors’
Fees
Non-Executive Directors receive
fees for services on Board and Board
Committees. Non-Executive Directors
do not receive short-term incentives
and do not participate in any long-
term incentive schemes.

The fees for the Non-Executive

Directors are recommended by
the Remuneration Committee to
the Board for their approval, after
considering input from the Executive
Directors.

The Directors emoluments are

disclosed on Note 9 to the Financial
Statements.

On behalf of the Remuneration

Committee;

H.D. Abeywickrama
Chairman
Remuneration Committee

29 May 2024
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 123

Nominations and Governance Committee

Terms Of Reference Corporate Services (Pvt) Limited acts The Committee oversees the
The Charter determines the terms as the Secretary to the Nomination periodic evaluation of Board and
of reference for the Nominations and Governance Committee. The CEO performance, ensuring effective
and Governance Committee. The minutes of the Nomination and discharge of responsibilities. It also
Nominations and Governance Governance Committee approved by develops succession plans for Board
Committee (“the Committee”) is the said Committee are circulated and and Key Management Personnel.
established in accordance with affirmed by the Board of Directors. Recommend the overall corporate
Rule 9.11 of the CSE Listing Rules. governance framework, aligning with
The Committee is responsible for regulatory requirements and best
Scope and Authority
overseeing matters related to the practices. The Committee reviews
The Committee’s scope includes
nominations of Key Management and updates corporate governance
evaluating the appointment and
personnel including Directors, policies/framework in line with
recommending Directors to the
governance, and board composition, regulatory and legal developments.
Board and its Committees. It is
ensuring alignment with regulatory It receives reports from Management
responsible for recommending the re-
requirements and best practices. on corporate governance compliance,
appointment/re-election of Directors,
deviations/non-compliances, and
considering their contributions,
rationale.
Composition qualifications, and external
Recommend insurance cover to be
The Committee is made up of five commitments.
taken in respect of all directors and
Directors namely; The Committee shall establish
other key management personnel
transparent procedures for
indemnity and insurance cover.
the evaluation, selection, and
H.D. Abeywickrama–Chairman (Non-
appointment/re-appointment of
Executive, Independent)
Directors. It shall provide advice and
S.G.Wijesinha-(Non-Executive, recommendations to the board or the Meetings and Minutes
Independent) chairman (as the case may be) on any The Nominations and Governance
A. Herath-(Non-Executive, such appointments. It shall consider Committee met once during the year.
Independent).Appointed on 12 the selection and appointment of a
December 2023 Members and attendance at meetings
chairman in case a vacancy arises.
held during the year ended 31 March
M. S. Mawzoon - (Non-Executive, Non Review the Board and Committee 2024 are given below:
- Independent) structures, sizes, and compositions for
S. G. Sathasivam(Executive, Non - effective governance.
Independent)

H. D. Abeywickrama 1 of 1 meeting
S. G. Wijesinha 1 of 1 meeting
M. S. Mawzoon 1 of 1 meeting
S. G. Sathasivam 1 of 1 meeting
A. Herath 0 of 0 meeting

On behalf of the Nomination and Governance Committee;

H.D. Abeywickrama - Chairman – Nomination and Governance Committee

29 May 2024
124 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Report of The Audit Committee

Role of the Audit
Composition
Committee
The terms of reference “Charter” The Audit Committee comprises three N. B. Weerasekara (Independent,
provides a clear understanding of (3) members, including the Chairman, Non-Executive Director). Resigned
the Committee’s role, structure, are Independent Non-Executive with effect from 18 November 2023
processes, and membership Directors.
requirements. This conveys the
M. T. Siddique (Independent, Non-
framework for the Committee’s
A. R. Rasiah – Chairman (Independent, Executive Director). Ceased with effect
organization and responsibilities that
Non-Executive Director) from 5 December 2023
can be referred to by the Board,
committee members, Management,
and External and Internal Auditors. S.G. Wijesinha - (Independent, Non- Profiles of the members are given on
The Audit Committee reviews the Executive Director) pages 26 to 29. Corporate Services
Charter quarterly and updates it to (Pvt) Limited functions as the secretary
reflect the views that the members of to the Audit Committee.
A. Herath - (Independent, Non-
the Audit Committee express in the Executive Director). Appointed on 12
independent discharge of their duties. December 2023

Meetings and Minutes

The number of meetings the Committee holds is influenced by its objectives and scope of activities, and the size and nature
of the business.

The Audit Committee met five times during the year.

Members and attendance at meetings held during the year ended 31 March 2024 are given below:

A. R. Rasiah 4 of 5 meeting
S.G.Wijesinha 5 of 5 meeting
N. B. Weerasekera 4 of 4 meeting
M. T. Siddique 2 of 4 meeting
A. Herath 1 of 1 meeting

The Chief Executive Officer and Financial Controller shall normally attend meetings of the Audit Committee. On the
invitation of the Audit Committee, the Engagement Partner of the Company’s External Auditors, Messrs KPMG attended one
committee meetings.

The Audit Committee shall report to the Board.

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 125

Responsibilities In the review of the annual audited External Audit

Financial Statements, the Committee
The Audit Committee undertakes, discussed with the Chief Executive Reviewed with the External Auditors
on behalf of the Board, responsibility Officer, Financial Controller and their audit scope, audit strategy,
for ensuring the integrity of the External Auditor the significant and audit plan for the year and their
Company’s financial reports by accounting policies, estimates and proposed fees for the statutory audit.
having over sight of internal control, judgments applied in preparing these
the financial reporting process and reports, the accounting principles and
Reviewed the external audit reports
compliance with regulatory matters as reporting standards that were applied
and areas of concern highlighted in
given in the Audit Committee Charter. and the impact of the items to the
the Management Letter including
It sets out high standards of corporate Financial Statements.
Management’s responses to the
disclosure, corporate responsibility,
findings of the External Auditors.
integrity and accountability to the Internal Control and Risk
shareholders. Management and Internal
Audit Discussed with External Auditors the
Tasks of the Audit significant accounting and auditing
Committee The Committee reviewed the risk issues, impact of new or proposed
management process and discussed changes in accounting standards and
In fulfilling its responsibilities, the inherent risks faced by the regulatory requirements applicable to
following activities were carried out business as they affect financial the Group.
by the Audit Committee during the reporting. The principal risks and
financial year ended 31 March 2024. uncertainties are outlined in the
Assessed the independence and
relevant section on pages 71 and 74.
objectivity of the External Auditors
Financial Reporting during the year in carrying out
Reviewed the quarterly and year-to- The Committee has an ongoing statutory audit for the Group and prior
date financial results of the Group process for reviewing the effectiveness to the appointment of the External
and the relevant announcements of the system of internal controls and Auditors for provision of any non-
to Colombo Stock Exchange (CSE), of the internal audit function. During audit services. The Audit Committee
focusing particularly on significant the year, it reviewed and approved the also received report from the External
changes to accounting policies annual internal audit plan prepared Auditors confirming that there were
and practices and compliance with taking into consideration the required no circumstances and relationship that
financial reporting and accounting controls and risks attached to different create threats to their independence
standards prior to the consideration by areas of operation. It also reviewed and that the ethical requirements have
the Board. the reports from the internal audit been complied with.
team summarizing the audit findings
The Auditors have expressed their
and recommendations and describing
willingness to continue in office. The
Reviewed the annual report and the actions taken by Management to
Audit Committee at a meeting held
annual audited Financial Statements of address any shortfalls. It reviewed the
on 22 May 2024 recommended that
the Company and the Group prior to level and nature of outstanding audit
they be reappointed as Auditors. A
submission to the Board for approval. weaknesses and invited Management
resolution to reappoint the Auditors
The review was to ensure that the to the Committee to further
and to authorize the Directors to
financial reporting and disclosures understand progress where it felt it
determine their remuneration will
are in compliance with the Sri Lanka was necessary.
be proposed at the Annual General
Accounting Standards, the provisions
Meeting.
of Companies Act No.7 of 2007,
listing requirements of Colombo Stock
Exchange and any other relevant legal
and regulatory requirements.
126 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Regulatory Compliance

Reviewed the procedures established

by Management for compliance with
the requirements of regulatory bodies.
The Chief Executive Officer along with
the Financial Controller submitted to
the Audit Committee on a quarterly
basis, are portion the extent to which
the Group was in compliance with
mandatory statutory requirements.

Audit Committee
Effectiveness
The Committee prepares and reviews
with the Board an annual performance
evaluation of the Committee. The
findings of the review ensure that the
Board is satisfied that the Committee
is operating effectively, and meeting
all applicable legal and regulatory
requirements.

Conclusion
The Committee is of the view that
adequate controls and procedures
are in place to provide reasonable
assurance that the Group’s assets are
safeguarded and the financial position
of the Group is well monitored.
The Audit Committee concurs that
the adoption of the going concern
premise in the preparation of the
Financial Statement is appropriate.

The Audit Committee recommends

to the Board of Directors that the
Financial Statements as submitted be
approved.

On behalf of the Audit Committee;

A. R. Rasiah
Chairman–Audit Committee
29 May 2024
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 127

Report of The Related Party Transactions Review Committee

Composition of the 1. Recurrent, routine transactions It was also ensured that Committee
which are of trading or revenue members did not have any conflict of
Committee nature interest with regard to the proposed
The Related Party Transactions 2. Payment of dividend, issue of related party transactions.
Review Committee was established securities
in accordance with the Code of 3. Grant of options and the issue of
Best Practice on Related Party securities pursuant to the exercise
Transactions, issued by the Securities of options under an employee
and Exchange Commission of Sri share option scheme
Lanka and Section 9 of the Listing
4. A transaction in marketable
Rules of the Colombo Stock Exchange.
securities carried out in the open
The Committee comprises three [3]
market where the counterparty’s
members, including the chairman, are
identity is unknown to the
Independent Non-Executive
company at the time of the
Directors. transaction
5. Directors fees and remuneration,
A. R. Rasiah – Chairman (Independent, and employment remuneration
Non-Executive Director)

The Committee established guidelines

S.G.Wijesinha - (Independent, Non- for the Senior Management to follow,
Executive Director) for recurrent related party transactions,
in its ongoing dealings with the
A. Herath - (Independent, Non- related parties. At the year end, the
Executive Director), Appointed on 12 Committee carried out a review and
December 2023 assessed ongoing relationships with
the related parties to determine
whether they are in compliance with
N. B. Weerasekara (Independent, the Committee’s guidelines and that
Non-Executive Director). Resigned the related party transactions remain
with effect from 18 November 2023 appropriate.

M. T. Siddique (Independent, Non- The Committee also determined

Executive Director). Ceased with effect whether to obtain the approval of the
from 5 December 2023 Board of Directors for a related party
transaction considering the factors
Policies and procedures adopted for such as the impact of the proposed
reviewing related party transactions: transaction on the independence of
the Directors, and whether the related
party transaction requires immediate
The Committee reviewed all related market disclosure.
party transactions except for the
following transactions:
128 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Meetings

The Committee met four times during

the year (once a calendar quarter).
Attendance of the Committee
members at each of these meetings
is as follows:

A. R. Rasiah 3 of 4 meeting
S.G.Wijesinha 4 of 4 meeting
N. B. Weerasekera 3 of 3 meeting
M. T. Siddique 2 of 3 meeting
A. Herath 1 of 1 meeting

Meeting and Minutes

Corporate Services (Pvt) Limited act

as the Secretary to the Related Party
Transaction Review Committee. The
minutes of the Committee approved
by the said Committee, are circulated
and agreed by the Board of Directors.

Statement of Compliance

The Committee has reviewed the

related party transactions during the
financial year and communicated the
comments/observations to the Board
of Directors. Information complied as
required under Section 9 of the Listing
Rules are presented under Note 36 to
the Financial Statements

On behalf of the Related Party

Transactions Review Committee,

A. R. Rasiah
Chairman–Related Party
Transactions Review Committee
29 May 2024
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 129

Statement of Directors’ Responsibility

The following statement, which Company and which will enable them
should be read in conjunction with to ensure that Financial Statements
the Auditors’ Statement of their comply with the Companies Act No.07
responsibilities set out in their report, of 2007.
is made with a view to distinguish
the respective responsibilities of
The Directors are generally
the Directors and of the Auditors, in
responsible for taking such steps that
relation to the Financial Statements.
are reasonably for them to safeguard
the assets of the Company and to
The Directors are required by the prevent and detect fraud and other
Companies Act No.07 of 2007, to irregularities.
prepare Financial Statements for each
financial year, which give a true and
The Directors are confident that
fair view of the state of affairs of the
they discharged their responsibility
Company as at the end of the financial
asset out in this statement. They
year and of the profit and loss for
also confirm that to the best of their
the financial year. The Directors are
knowledge all statutory payments
required to prepare these Financial
payable by the Company as at the
Statements on going concern basis,
statement of financial position date,
unless it is not appropriate.
are paid or where relevant, provided
for.
Since the Directors are satisfied
that the Company has resources
By Order of the Board.
to continue in business for the
foreseeable future, the Financial
Statements continue to be prepared
on the said basis. V. Govindasamy
Director
The Directors consider that in
preparing the Financial Statements on
pages 155 to 229 the Company
Sunil G. Wijesinha
Used appropriate accounting policies,
Chairman
consistently applied and supported
by reasonable and prudent judgments
and estimated that all accounting 29 May 2024
standards, which they consider to be
applicable, are followed.

The Directors are responsible for

ensuring that the Company keeps
accounting records, which will disclose
with reasonable accuracy the financial
position, and profit and loss of the
130 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Directors’ and Financial Controller’s Responsibility

Statement
The Financial Statements of Watawala assets and for preventing and
Plantations PLC are prepared in detecting fraud as well as other
compliance with the Sri Lanka irregularities, which is reviewed,
Accounting Standards issued by The evaluated, and updated on an V. Govindasamy
Institute of Chartered Accountants ongoing basis. Our Internal Auditors
Director
of Sri Lanka, Companies Act No.07 have conducted periodic
of 2007, Sri Lanka Accounting and
Auditing Standards Act No.15 of 1995,
Audits to provide reasonable
and the Listing Rules of the Colombo
assurance that the established policies
Stock Exchange. The accounting
and procedures of the Company were
policies used in the preparation of the
consistently followed. However, there
Financial Statements are appropriate
are inherent limitations that should be Dhammika Laksiri
and are consistently applied by the
recognized in weighing the assurance
Company. There are no departures Financial Controller
provided by any system of internal
from the prescribed Accounting
controls and accounting.
Standards in their adoption.
29 May 2024
Comparative information is reclassified
wherever necessary to comply with the The Financial Statements of the
current presentation. Company were audited by Messrs
KPMG, Chartered Accountants and
their report is given on pages 150 to
The significant accounting policies and
estimates that involve a high degree 154 of this Annual Report.
of judgment and complexity were
discussed with our External Auditors The Audit Committee of the Company
and the Audit Committee. meets periodically with the Internal
Audit Team and the External Auditors
The Board of Directors and Financial to review their audit plans, assess the
Controller of the Company accept manner in which these Auditors are
responsibility for the integrity performing their responsibilities and
and objectivity of these financial to discuss their reports on, internal
statements. The estimates and controls and financial reporting issues.
judgments relating to the Financial To ensure complete independence,
Statements were made on a prudent the External Auditors and the Internal
and reasonable basis, in order that Auditors have full and free access to
the Financial Statements give a true the members of the Audit Committee
and fair view of the state of affairs, the to discuss any matters of substance.
forms and substance of transactions
and that the Company’s state of We confirm that the Company has
affairs is reasonably presented. To complied with all applicable laws,
ensure this, the Company has taken regulations, guidelines and that there
proper and sufficient care in installing are no material litigations that are
a system of internal controls and pending against the Company.
accounting records, for safeguarding
WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 131
132 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

GRI Content Index

Statement of use Watawala Plantations PLC has reported in accordance with the GRI Standards
for the period 1st April 2023 to 31st March 2024
GRI 1 used GRI 1: Foundation 2021
Applicable GRI Sector Standard(s) Agriculture, Aquaculture and Fishing Sectors 2022

GRI Omission GRI

standard/ sector
Disclosure Location standard
other Requirement(s) Reason Explanation
source omitted ref No.
General disclosures

2-1 Organizational details

2-2 Entities included in the

organization’s sustainability
reporting A gray cell indicates that reasons for omission are not
permitted for the disclosure or that a GRI Sector Standard
2-3 Reporting period, frequency
reference number is not available.
and contact point
2-4 Restatements of information

2-5 External assurance

2-6 Activities, value chain and

other business relationships
2-7 Employees

2-8 Workers who are not

employees
2-9 Governance structure and
composition
2-10 Nomination and selection of
the highest governance body
2-11 Chair of the highest
governance body
2-12 Role of the highest
governance body in overseeing
the management of impacts
2-13 Delegation of responsibility
for managing impacts
2-14 Role of the highest
governance body in sustainability
reporting
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 133

2-15 Conflicts of interest

2-16 Communication of critical

concerns
2-17 Collective knowledge of the
highest governance body
2-18 Evaluation of the
performance of the highest
governance body
2-19 Remuneration policies

2-20 Process to determine

remuneration
2-21 Annual total compensation
ratio
2-22 Statement on sustainable
development strategy
2-23 Policy commitments

2-24 Embedding policy

commitments
2-25 Processes to remediate
negative impacts
2-26 Mechanisms for seeking
advice and raising concerns
2-27 Compliance with laws and
regulations
2-28 Membership associations

2-29 Approach to stakeholder

engagement
2-30 Collective bargaining
agreements
Material topics

GRI 3: 3-1 Process to determine

Material material topics
Topics 2021
3-2 List of material topics

Economic Performance

GRI 3: 3-3 Management of material 13.2.1

Material topics
Topics 2021
134 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

201-1 Direct economic value 13.22.2

generated and distributed
201-2 Financial implications and 13.2.2
GRI 201: other risks and opportunities due
Economic to climate change
Performance 201-3 Defined benefit plan
2016 obligations and other retirement
plans
201-4 Financial assistance
received from government
Market Presence

GRI 3: 3-3 Management of material

Material topics
Topics 2021
GRI 202: 202-1 Ratios of standard entry 13.22.3
Market level wage by gender compared
Presence to local minimum wage
2016 202-2 Proportion of senior 13.22.4
management hired from the local
community
Indirect economic impacts

GRI 3: 3-3 Management of material

Material topics
Topics 2021
GRI 203: 203-1 Infrastructure investments 13.22.3
Indirect and services supported
Economic 203-2 Significant indirect 13.22.4
Impacts economic impacts
2016

Procurement practices

GRI 3: 3-3 Management of material

Material topics
Topics 2021
GRI 204: 204-1 Proportion of spending on
Procurement local suppliers
Practices
2016
Anti-corruption

GRI 3: 13.26.1
3-3 Management of material
Material
topics
Topics 2021
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 135

GRI 3: 13.26.1
3-3 Management of material
Material
topics
Topics 2021
205-1 Operations assessed for 13.26.2
risks related to corruption
GRI 205:
205-2 Communication and 13.26.3
Anti-
training about anti-corruption
corruption
policies and procedures
2016
205-3 Confirmed incidents of 13.26.4
corruption and actions taken
Anti-competitive behaviour

GRI 3: 3-3 Management of material 13.25.1

Material topics
Topics 2021
GRI 206: 206-1 Legal actions for anti- 13.25.2
Anti- competitive behaviour, anti-trust,
competitive and monopoly practices
Behaviour
2016
Tax

GRI 3: 3-3 Management of material

Material topics
Topics 2021
207-1 Approach to tax

207-2 Tax governance, control,

and risk management
GRI 207: Tax 207-3 Stakeholder engagement
2019 and management of concerns
related to tax
207-4 Country-by-country
reporting
Materials

GRI 3:
3-3 Management of material
Material
topics
Topics 2021
301-1 Materials used by weight
or volume
GRI 301:
301-2 Recycled input materials
Materials
used
2016
301-3 Reclaimed products and
their packaging materials
136 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

Energy

GRI 3: 3-3 Management of material 13.25.1

Material topics
Topics 2021
GRI 206: 206-1 Legal actions for anti- 13.25.2
Anti- competitive behaviour, anti-trust,
competitive and monopoly practices
Behaviour
2016
Tax

GRI 3: 3-3 Management of material

Material topics
Topics 2021
302-1 Energy consumption within
the organization
302-2 Energy consumption
GRI 302: outside of the organization
Energy 2016
302-3 Energy intensity

302-4 Reduction of energy

consumption
302-5 Reductions in energy
requirements of products and
services
Water and effluents

GRI 3: 13.7.1
3-3 Management of material
Material
topics
Topics 2021
303-1 Interactions with water as a 13.7.2
shared resource
GRI 303:
303-2 Management of water 13.7.3
Water and
discharge-related impacts
Effluents
2018 303-3 Water withdrawal 13.7.4

303-4 Water discharge 13.7.5

303-5 Water consumption 13.7.6

 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 137

Biodiversity

GRI 3: Material 3-3 Management of material 13.3.1

Topics 2021 topics
304-1 Operational sites 13.3.2
owned, leased, managed in,
or adjacent to, protected areas
and areas of high biodiversity
value outside protected areas
304-2 Significant impacts of 13.3.3
GRI 304:EO
activities, products and services
Biodiversity
on biodiversity
2016
304-3 Habitats protected or 13.3.4
restored
304-4 IUCN Red List species 13.3.5
and national conservation list
species with habitats in areas
affected by operations
Emissions

GRI 3: Material 3-3 Management of material 13.1.1

Topics 2021 topics
305-1 Direct (Scope 1) GHG 13.1.2
emissions
305-2 Energy indirect (Scope 2) 13.1.3
GRI 305: GHG emissions
Emissions 2016
305-3 Other indirect (Scope 3) 13.1.4
GHG emissions
305-4 GHG emissions intensity 13.1.4

305-5 Reduction of GHG 13.1.6

emissions
305-6 Emissions of ozone- 13.1.7
depleting substances (ODS)
305-7 Nitrogen oxides (NOx), 13.1.8
sulphur oxides (SOx), and other
significant air emissions

Waste

GRI 3: Material 3-3 Management of material 13.8.1

Topics 2021 topics
138 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

306-1 Waste generation and 13.8.2

significant waste-related impacts
306-2 Management of significant 13.8.3
waste-related impacts
GRI 306:
306-3 Waste generated 13.8.4
Waste 2020
306-4 Waste diverted from 13.8.5
disposal
306-5 Waste directed to disposal 13.8.6

Supplier environmental assessment

3-3 Management of material

topics
308-1 New suppliers that were
GRI 308:
screened using environmental
Supplier
criteria
Environmental
308-2 Negative environmental
Assessment
impacts in the supply chain and
2016
actions taken

Employment

GRI 3: Material 3-3 Management of material

Topics 2021 topics
401-1 New employee hires and
employee turnover

GRI 401: 401-2 Benefits provided to

Employment full-time employees that are not
2016 provided to temporary or part-
time employees
401-3 Parental leave

Labour/management relations

GRI 3: Material 3-3 Management of material

Topics 2021 topics
GRI 402: Labour/
402-1 Minimum notice periods
Management
regarding operational changes
Relations 2016

Occupational health and safety

GRI 3: Material 3-3 Management of material 13.19.1

Topics 2021 topics
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 139

403-1 Occupational health and 13.19.2

safety management system
403-2 Hazard identification, 13.19.3
risk assessment, and incident
GRI 305: investigation
Emissions 403-3 Occupational health 13.19.4
2016 services
403-4 Worker participation, 13.19.5
consultation, and
communication on occupational
health and safety
403-5 Worker training on 13.19.6
occupational health and safety
403-6 Promotion of worker 13.19.7
health
403-7 Prevention and mitigation 13.19.8
of occupational health and
safety impacts directly linked by
business relationships
403-8 Workers covered by an 13.19.9
occupational health and safety
management system
403-9 Work-related injuries 13.19.10

403-10 Work-related ill health 13.19.11

Training and education

GRI 3: Material 3-3 Management of material

Topics 2021 topics
404-1 Average hours of training
per year per employee
GRI 404: 404-2 Programs for upgrading
Training and employee skills and transition
Education assistance programs
2016 404-3 Percentage of employees
receiving regular performance
and career development reviews
Diversity and equal opportunity

GRI 3: Material 3-3 Management of material 13.15.1

Topics 2021 topics
140 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

GRI 405: 405-1 Diversity of governance 13.15.2

Diversity bodies and employees
and Equal 405-2 Ratio of basic salary and 13.15.3
Opportunity remuneration of women to men
2016
Non-discrimination

GRI 3: 3-3 Management of material

Material topics
Topics 2021
GRI 406: Non- 406-1 Incidents of discrimination 13.15.4
discrimination and corrective actions taken
2016
Freedom of association and collective bargaining

GRI 3: 3-3 Management of material 13.18.1

Material topics
Topics 2021
GRI 407: 407-1 Operations and suppliers 13.18.2
Freedom of in which the right to freedom
Association of association and collective
and Collective bargaining may be at risk
Bargaining
2016
Child labour

GRI 3: 3-3 Management of material 13.17.1

Material topics
Topics 2021
408-1 Operations and suppliers 13.17.2
GRI 408: Child
at significant risk for incidents of
Labour 2016
child labour
Forced or compulsory labour

GRI 3: 3-3 Management of material 13.16.1

Material topics
Topics 2021

GRI 409: 409-1 Operations and suppliers 13.16.2

Forced or at significant risk for incidents of
Compulsory forced or compulsory labour
Labour 2016
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 141

Security practices

GRI 3: 3-3 Management of material

Material topics
Topics 2021
GRI 410: 410-1 Security personnel trained
Security in human rights policies or
Practices procedures
2016
Rights of indigenous peoples

GRI 3: 3-3 Management of material 13.14.1

Material topics
Topics 2021
GRI 411: 411-1 Incidents of violations 13.14.2
Rights of involving rights of indigenous
Indigenous peoples
Peoples 2016
Local communities

GRI 3: 3-3 Management of material 13.12.1

Material topics
Topics 2021
413-1 Operations with local 13.12.2
community engagement, impact
GRI 413: Local assessments, and development
Communities programs
2016 413-2 Operations with significant 13.12.3
actual and potential negative
impacts on local communities
Supplier social assessment

GRI 3: 3-3 Management of material

Material topics
Topics 2021
414-1 New suppliers that were
GRI 3: screened using social criteria
Material 414-2 Negative social impacts
Topics 2021 in the supply chain and actions
taken
Supplier social assessment

GRI 3: 3-3 Management of material

Material topics
Topics 2021
142 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024

GRI 414: 414-1 New suppliers that were

Supplier screened using social criteria
Social 414-2 Negative social impacts
Assessment in the supply chain and actions
2016 taken
Public policy

GRI 3: 3-3 Management of material 13.24.1

Material topics
Topics 2021
GRI 415: 415-1 Political contributions 13.24.2
Public Policy
2016
Customer health and safety

GRI 3: 3-3 Management of material 13.10.1

Material topics
Topics 2021
416-1 Assessment of the health 13.10.2
and safety impacts of product
GRI 416:
and service categories
Customer
416-2 Incidents of non- 13.10.5
Health and
compliance concerning the
Safety 2016
health and safety impacts of
products and services
Marketing and labelling

GRI 3: 3-3 Management of material

Material topics
Topics 2021
417-1 Requirements for product
and service information and
labelling
GRI 417:
417-2 Incidents of non-
Marketing
compliance concerning product
and
and service information and
Labelling
labelling
2016
417-3 Incidents of non-
compliance concerning
marketing communications
 WATAWALA PLANTATIONS PLC • ANNUAL REPORT 2023 | 2024 143

Marketing and labelling

GRI 3: 3-3 Management of material

Material topics
Topics 2021
418-1 Substantiated complaints
GRI 418:
concerning breaches of customer
Customer
privacy and losses of customer
Privacy 2016
data

Additional sector disclosures

Sector standard ref # Disclosure Location

Natural Ecosystem Conversion

13.4.1 3-3 Management of material topics

13.4.2 percentage of production volume from land owned, leased or managed

by the organization determined to be deforestation- or conversion-free, by
product, and describe the assessment methods used.
13.4.3 For products sourced by the organization, report the following by product:
the percentage of sourced volume determined to be deforestation- or
conversion-free, and describe the assessment methods used; - the
percentage of sourced volume for which origins are not known to the point
where it can be determined whether it is deforestation- or conversion-free,
and describe actions taken to improve traceability.
13.4.4 Report the size in hectares, the location, and the type of natural ecosystems
converted since the cutoff date on land owned, leased, or managed by the
organization.
13.4.5 Report the size in hectares, the location, and the type of natural ecosystems
converted since the cut-off date by suppliers or in sourcing locations.

Soil Health

13.5.1 3-3 Management of material topics

Pesticides use

13.6.1 3-3 Management of material topics

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13.6.2 Report the volume and intensity of pesticides used by the following toxicity
hazard levels:
- Extremely hazardous;
- Highly hazardous;
- Moderately hazardous;
- Slightly hazardous;
- Unlikely to present an acute hazard.

Food Security
13.9.1 3-3 Management of material topics

13.9.2 Report the total weight of food loss in metric tons and the food loss
percentage, by the organization’s main products or product category, and
describe the methodology used for this calculation.

Food Security
13.10.4 Report the percentage of production volume from sites certified to
internationally recognized food safety standards, and list these standards

13.10.5 Report the number of recalls issued for food safety reasons and the total
volume of products recalled.

Land and Resource Rights

13.10.4 Report the percentage of production volume from sites certified to
internationally recognized food safety standards, and list these standards
13.12.2 List the locations of operations, where land and natural resource rights
(including customary, collective, and informal tenure rights) may be affected
by the organization’s operations
13.13.3 Report the number, size in hectares, and location of operations where
violations of land and natural resource rights (including customary,
collective, and informal tenure rights) occurred and the groups of rights
holders affected.
Rights of indigenous peoples

13.14.3 List the locations of operations where indigenous peoples are present or
affected by activities of the organization.
13.14.4 Report if the organization has been involved in a process of seeking free,
prior, and informed consent (FPIC) from indigenous peoples for any of the
organization’s activities, including, in each case:
Non-discrimination and equal opportunity

13.15.5 Describe any differences in employment terms and approach to

compensation based on workers’ nationality or migrant status, by location of
operations.
Living Income and Living Wage
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13.21.1 3-3 Management of material topics

13.21.2 Report the percentage of employees and workers who are not employees
and whose work is controlled covered by collective bargaining agreements
that have terms related to wage levels and frequency of wage payments at
significant locations of operation
13.21.3 Report the percentage of employees and workers who are not employees
and whose work is controlled paid above living wage, with a breakdown by
gender
Supply chain traceability

13.23.1 3-3 Management of material topics

13.23.2 Describe the level of traceability in place for each product sourced, for
example, whether the product can be traced to the national, regional, or
local level, or a specific point of origin (e.g., farms, hatcheries, and feed mill
levels)
13.23.3 Report the percentage of sourced volume certified to internationally
recognized standards that trace the path of products through the supply
chain, by product and list these standards
13.23.4 Describe improvement projects to get suppliers certified to internationally
recognized standards that trace the path of products through the supply
chain to ensure that all sourced volume is certified.

Topics in the applicable GRI Sector Standards determined

as not material
Topic Explanation

Agriculture, Aquaculture and Fishing Sectors 2022

Animal Health and Welfare

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SASB Standard - Meat, Poultry & Dairy

Sustainability Disclosure Topics & Metrics
Table 1. Sustainability Disclosure Topics & Metrics

Table 2. Activity Metrics

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SASB Standard - Meat, Poultry & Dairy

Sustainability Disclosure Topics & Metrics
Table 1. Sustainability Disclosure Topics & Metrics
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Financial Calender
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s
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Crop & Yields

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Historical Financial Information

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Investor Information
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11.60%

103%
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Glossary
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Notes
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Notice of Meeting
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Form of Proxy
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Corporate Information