Panasian Power PLC
A N N U A L R E P O R T 2 0 2 3 / 2 4
CONTENTS
OVERVIEW
- About Our Integrated report
- About Us
- Project Portfolio
- Our Journey
- Awards and accolades
- Performance Highlights
- Chairman's Statement
- Chief Executive Officer's Review
MANAGEMENT DISCUSSION AND ANALYSIS
24 Our Business Model
- Our Commitment to Sustainability
- Listening to our stakeholders
- Determining material matters
- Operating Environment
- Financial Capital
- Manufactured Capital
- Human Capital
- Social and Relationship Capital
- Intellectual Capital
- Natural Capital
STEWARDSHIP AND GOVERNANCE
68 Board of Directors
- Board of Directors of Subsidiaries
- Management Team
- Corporate Governance
104 Report of the Board Audit Committee Report
107 Report of the Board Remuneration Committee Report
109 Report of the Board Related Party Transactions Review Committee
111 Report of the Board Nominations and Governance Committee
113 Risk Management Report
FINANCIAL REPORTS
- Financial Calendar
- Annual Report of the Board Of Directors on the Affairs of the Company
- Directors' Statement on Internal Control
- Statement of Directors' Responsibility
- Responsibility Statement of Chairman, Chief Executive Officer and Finance Manager
- Independent Auditor's Report
131 Statement of Profit or Loss and Other Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity
- Statement of Cash Flows
- Notes to the Financial Statements
- Investor Information
- Ten Years Financials Summary
- Glossary of Financial Terms
- Notice of Annual General Meeting
- Form of Proxy
Inner Back Cover Corporate Information
At Panasian Power PLC we envision a world where energy is a catalyst of sustainable progress, where every unit of electricity generated sparks new possibilities and every electron transmitted carries the promise of a better tomorrow.
With unwavering dedication, we harness the forces of nature - wind, sun, water, and earth - to generate clean, renewable energy. Through state-of-the-art technologies and forward-thinking solutions, we strive to minimise our carbon footprint, safeguarding the environment for future generations.
We recognise the transformative power of energy to uplift communities and drive social change. In every endeavour, we remain guided by our unwavering belief in the power of hope. As we look towards the horizon, we see a future ablaze with possibility, where clean sustainable energy creates a platform for a greener future. In that future, we stand steadfast as a beacon of hope, illuminating the path forward with unwavering resolve.
Panasian Power PLC
Panasian Power PLC | Annual Report 2023/24 | 2 |
ABOUTOUR
INTEGRATED
REPORT
Renewable Energy Today's resource for a brighter tomorrow
We are pleased to present our fifth integrated annual report which encompasses the progress and achievements we have made during the financial year ending 31 March 2024. This report aims to provide a concise, holistic, and balanced review of Panasian Power PLC's (herein referred to as 'PAP' or 'the Company') financial, social, environmental and governance performance while providing a fair account of how we directed strategy in the context of our operating environment to create value for our stakeholders. In spite of the economic uncertainty prevalent in the country, PAP has continuously focused on accomplishing it's strategic objectives, while ensuring sound governance and transparent, reliable and timely reporting.
SCOPE AND BOUNDARY
This report covers the financial and non-financial performance of Panasian Power PLC and its subsidiaries, joint ventures located in Sri Lanka, collectively referred to as the Group. These entities are administratively arranged into 03 Sectors. Financial and non-financial reporting boundaries are aligned and extend to the operating environment and external stakeholders. The report sets out how we create, preserve, or erode value through our business activities.
Key changes to the group's organisational structure/supply chain in 2023/2024 were as follows;
- Establishment of PAP SPGM Solar (Pvt) Ltd, PAP MHPL (Pvt) Ltd, PAP EGSS Solar (Pvt) Ltd, PAP PTS Solar (Pvt) Ltd, R-E-D Capital Asia (Pvt) Ltd to undertake new ground mounted 5 Mws solar projects in 07 Locations.
- Signed Master Supplier Agreement with LONGi Solar Technology Co. Ltd in China
External stakeholders
and Operating Environment
01 Company in Overseas
21 Companies in Sri Lanka
Panasian
Power PLC
This integrated report concentrates on the International Integrated Reporting Council's (IIRC) Framework, which encompasses the six capitals:- Financial Capital
- Manufactured Capital
- Intellectual Capital
- Human Capital
- Natural Capital
- Social and Relationship Capital
While the overall scope and boundary remain consistent with the previous report for the FY 2022/23, this current report emphasizes the company's progress in non-financial aspects. All previous reports, including the recent FY 2022/23 report, are accessible for viewing and download on the corporate website (www.panasianpower. com, investors tab). No changes took place in the Company's size, shareholding, structure or supply chain during the year under review and there are no major restatements made to financial and non-financial information disclosed in the previous Annual Report.
MATERIALITY
Determination of what is material to us includes a systematic, company wide materiality assessment process. The assessment is based on the principle of double materiality which considers potential implications on the organisation as well as impacts on people and the environment. This report discloses our risks, opportunities, macrotrends and other considerations that impact materiality on our six capitals and our ability to create, preserve and minimise erosion of value for our stakeholders.
A comprehensive process has been
implemented to determine the material aspects, which is further elaborated on page 32 to 34 of this report. By focusing on materiality, the Company also aims to drive performance, enhance its sustainability framework, and integrate its corporate governance philosophy across all levels.
REPORTING FRAMEWORKS
The preparation of this integrated annual report is guided by the following statutory provisions, best practices, policies and guidelines by the relevant governing and regulatory bodies.
Panasian Power PLC | Annual Report 2023/24
3
FINANCIAL STATEMENTS | NARRATIVE REPORT | SUSTAINABILITY REPORTING | CORPORATE GOVERNANCE REPORT |
- Sri Lanka Financial Reporting Standards
- Companies Act No 7 of 2007
- Listing requirements of Colombo Stock Exchange
- Sri Lanka Accounting Standards
- Integrated Reporting Framework.
- Guideline for the presentation of Annual Reports issued by CA Sri Lanka.
- GRI standard (2021) of the Global Reporting System.
- Non- Financial Reporting Guidelines issued by CA Sri Lanka.
- Sustainable Development Goals. (SDG)
- Gender Parity Reporting Framework of Sri Lanka.
- Listing requirements of the Colombo Stock Exchange.
-
Code of Best Practice on Corporate Governance issued by CA Sri Lanka (2017).
CA Sri Lanka issued an update code of best practice on corporate Governance (2023) in December 2023.The updated code has been revealed and will be adapted to the extend of business exigency and as required by the Panasian Power PLC
REPORTING ENHANCEMENTS
- Improved our ESG reporting
- Improved connectivity throughout the report
- Continued efforts to make the report more concise
- Aligning the Corporate Governance Report to new listing rules
FORWARD LOOKING STATEMENT
This report includes forward looking statements based on external and internal information available at present to facilitate assessment of the Group's prospects. These statements are associated with a high level of uncertainty due to the high levels of uncertainty and volatility in the global and local economic outlook. The outcomes and impacts of some of these statements relate to future events which are beyond our control but can have a significant impact in the Group's ability
to create value. Readers are advised to make their own judgements using the latest information available at the time of assessment due to the elevated levels of
BOARD RESPONSIBILITY STATEMENT
uncertainty in forward looking statements. All forward looking statements are provided without recourse or any liability whatsoever to the Board or other preparers of the Annual Report due to the reasons enumerated above.
ASSURANCE
Assurance for the content embodied in this Integrated Report is reinforced by a carefully vetted combination of internal and external sources. The information included in this report has received approval from the leaders of respective business units, and has been scrutinized by the Corporate Management Team prior to submission to the Board of Directors for final approval. To ensure the accuracy and reliability of PAP's Financial Statements as of 31 March 2024, an independent review was conducted by the company's external auditors, M/S Earnst
- young. The findings of their review are provided in detail on pages 129,130 of this report. This external validation strengthens the credibility and transparency of the financial information presented in the report.
FEEDBACK
Capitals
Financial
Manufactured
Human
Intellectual
Social & Relationship
Natural
Strategic Pillars
Shared Prosperity through portfolio growth
Customer centricity
Inclusive business models
Inspired teams
Preserving and regenerating nature
Stakeholders
Shareholders
Employees
Customers
Suppliers
Business Partners
Communities
Government
The Board acknowledges its responsibility to ensure that the Integrated Annual Report provides a balanced view of its performance
PAP welcomes stakeholder feedback on this report and other matters at info@panasianpower.com as part of its ongoing commitment to enhancing reporting quality.
in 2023/2024 and is of the opinion that it addresses all material issues that it believes may have a bearing on the Company's capacity to create value over the short term. The Corporate Management team prepared and reviewed the Integrated Annual Report and submitted the same to the Board Audit Committee who recommended the reports to the Board for approval in accordance with the delegation of authority. The reports were unanimously approved by the Board on 03 June 2024
www.panasianpower.com
info@panasianpower.com
+94 11 4501 200
+94 11 4651 114
+94 11 4506 412
Level 4,BTL Shipping House, No. 45/2, Braybrooke Street, Colombo 02
www.panasianpower.com | ||||
Available Forms
Panasian Power PLC
Annual Report 2023/24
Online | |
Available on | Available |
request | as PDF |
Panasian Power PLC | Annual Report 2023/24
4
ABOUT
US
'A transition to clean energy is about making an investment in our future' - Gloria Reuben
Panasian Power PLC (PAP) acclaims the honour of being Sri Lanka's pioneering supplier of clean and renewable energy. The company commenced operations in 2002 under the guidance of Sri Lanka Board of Investment and has since then advanced its operations to become a leader in the renewable energy industry, demonstrating excellence in operating mini hydro, ground and rooftop solar plants.
PAP is dedicated to developing renewable energy solutions that reduce carbon emissions, enhance energy security, and promote economic prosperity, and has adopted an integrated business model through which it builds, owns and operates renewable energy projects as an independent power producer and project developer. With a diversified renewable energy portfolio comprising of over 22.4 MW of generation capacity, PAP remains at the forefront of driving the renewable energy revolution forward.
PAP also reserves the exclusive right as the authorised channel partner for SUNGROW inverters and master supplier agreement with LONGi solar panels in Sri Lanka, offering a wide range of inverters and solar panels to satisfy the growing energy demands.
Mini Hydropower Project
Rooftop Solar Project
Ground Solar Project
Green House Solar Project
Projects In Pipeline
RSD - Thirappane | Anuradhapura |
FGR - Thirappane |
FGR - Maradankadawala
RSD - Maradankadawala
Maho
Maho
SBSII(90) lMW Solar PV Power Plant
Kurunegala |
Melsiripura | Batticaloa |
Narammala | |
Palapathwala |
Pannala | Uhumeeya |
SBSII(90) lMW | |
Mawathagama | |
Solar PV Power | |
Plant |
Kohuwala | Padiyapellala II | Ampara | |
Boralesgamuwa | |||
Padiyapelella MHP | |||
Manelwala MHP | |||
Lower Kothmale | |||
Galle 1 | Rathganga MHP | ||
FGR Gonnoruwa | |||
FGR Ridiyagama | |||
Hambantota | FGR Mattala |
SBSII(90) IMW Solar
SBSII(90) IMW
OUR VISION
We only have one planet, and the widespread use of fossil fuels has caused irreparable damage to it. We want to protect the environment by becoming a leader in diversified sustainable renewable energy solutions in the Global South.
OUR MISSION
- PAP produces clean renewable energy from hydro, solar and other renewable sources in Asia and Africa.
- We own and manage projects that are best in class from a technology, design and efficiency point of view and provide market leading returns through innovative financing solutions, and are the preferred partner for customers, suppliers, employees and investors
- We value fair compensation, room to grow, training, a healthy, creative work environment, and respect for diversity. We care for our communities and environment actively. We are an innovative dynamic energy solutions provider.
OUR VALUES
ACCOUNTABILITY: | BIAS FOR ACTION: | INTEGRITY: Treat |
Responsibility to all | We are driven to get | others with respect |
our stakeholders | results, swiftly | and honesty and are |
true ourselves | ||
INNOVATIVE: | PASSION: Passion | QUALITY: What we |
Develop outside the | for renewable energy | do, we do well |
box solutions | solutions |
Manza Mini Hydro Power Project - Zambia
Global Projects
Panasian Power PLC | Annual Report 2023/24
5
GROUP STRUCTURE
PANASIAN POWER PLC
Hydro 3MW Ratnapura
100% | 83% | 100% | 99.75% | 93% |
100% | 100% | 100% | 100% | 100% | 100% |
Manelwala
Hydropower
(Pvt) Ltd
Hydro 2.4MW
Walapane
100%
Padiyapelella
Hydropower
Limited
Hydro 3.5MW Padiyapelella
100%
Lower | Kotmale | ||||
Panasian | |||||
Investments | Oya Power Two | ||||
(Pvt) Ltd | (Pvt) Ltd | ||||
EPC | Hydro 2MW | ||||
Company | Medakumbura | ||||
100% |
Panasian
Power
Zambia Ltd
Zambia Project
Company Hydro
8MW
Finergreen
Gonnoruwa
(Pvt) Ltd
Ground
Solar Project
at Gonnoruwa
10MW
Finergreen
Mattala
(Pvt) Ltd
Ground
Solar Project
at Mattala
10MW
Finergreen
Ridiyagama
(Pvt) Ltd
Ground
Solar Project
at Ridiyagama
10MW
Winsol
Renewables
(Pvt) Ltd
EPC
Company
R-E-D
Capital Asia
(Pvt) Ltd
Solar Investment
Company
Solar One
Asia (Pvt) Ltd
EPC
Company
Solar Power
Generation
Matara (Pvt) Ltd
Ground Solar 2MW at Matara
100%
PAP SPGM
Solar (Pvt) Ltd
5MW Ground Solar
at Matara
Eco Green
Solar Solutions
(Pvt) Ltd
Ground Solar
1MW at Beliatta
100%
PAP EGSS
Solar (Pvt) Ltd
15MW Ground
solar at
Anuradhapura &
Galle (Each 5MW)
PAP
MHPL Solar
(Pvt) Ltd
10 MW ground
solar at Kurunagala
& Ampara
(each 5MW)
50% | 100% | |||||
Powergen | PAP Solar One | |||||
One (Pvt) Ltd | (Pvt) Ltd | |||||
Roof Top Solar | Roof Top Solar3.9MWp | |||||
(PV) 0.4MWp | Kurunegala, Kohuwala, | |||||
Boralesgamuwa | Kolonna, Palapaththala | |||||
CREATING VALUE FOR ALL
STAKEHOLDERS
Our mission goes beyond just generating clean energy and we strive to empower communities, create jobs, and foster economic growth through our projects.
GROUP AT A GLANCE
Group | EBIT |
Revenue | |
Rs. 561 Mn | |
Rs.1.5 Bn |
100% | 100% | |||
Finergreen | Rajarata Sustainable | |||
Rajarata (Pvt) | Development (Pvt) | |||
Ltd | Ltd | |||
Roof Top & Green | Roof Top Solar & | |||
House 2MWp | Green House | |||
Anuradhapura | 2MWp | |||
Anuradhpura |
VALUE CREATION DURING 2023/2024
100%
Panthree
Solaro Energy
(Pvt) Ltd
Ground Solar
3x1MW Matara, Maho & Pannala
100%
PAP
PTS Solar (Pvt) Ltd
5MW Ground Solar
at Maho SPV
Profit | EPS | |
before Tax | ||
Rs.0.12 | ||
Rs. 225 Mn | ||
No of Employee | Funds for community | |
developments | ||
74 | Rs.6.6 Bn |
2024 | 2023 Variance |
Value Generated
Revenue | 1,490,346,698 | 1,104,079,462 | 47% |
Other Income | 8,132,933 | 10,713,266 | (24%) |
Finance Income | 23,826,667 | 6,920,888 | 244% |
Impairement Loss Reversal | 960,976 | - | 100% |
Revaluation Gain | 23,965,067 | - | 100% |
Share profit of equity accounted investees | 1,798,865 | - | 100% |
Total | 1,549,031,206 | 1,031,713,617 | 50% |
Value Distributed | |||
Operational Cost | 665,634,856 | 719,327,473 | -7% |
Salary and wages | 95,042,897 | 82,637,960 | 15% |
Payment Made to Fund Providers | 361,111,049 | 422,082,558 | -14% |
EPF & ETF | 8,172,719 | 7,413,040 | 10% |
Corporate Taxes | 119,447,463 | 49,207,036 | 143% |
Expenses on CSR | 6,593,860 | 2,824,178 | 133% |
Total | 1,256,002,844 | 1,283,492,245 | -2% |
Value Retained | |||
Depreciation and Amortization | 193,368,614 | 209,170,752 | -7% |
Profit after Tax | 99,659,748 | (460,798,622) | 122% |
Clean energy generated
56,944,421 kWh
Total Installed
Capacity 22.4 MW
Number of trees saved | 42,234 MT CO | ||
3,001,842 | avoided | 2 | |
STRATEGIC DIFFERENTIATORS
Purpose-led business
Extensive and solid partnerships
Diverse businesses and geographical presence
Employee value proposition Robust corporate governance Strong balance sheet
Panasian Power PLC | Annual Report 2023/24
6
PROJECT PORTFOLIO
MINI HYDRO POWER PROJECTS
RATHGANGA MINI HYDROPOWER PROJECT
Year of Commission | 2004 | |
Installed Capacity (MW) | 3 | |
Annual Expected Energy (GWH) | 11 | |
Operational Highlights | 2024 | 2023 |
Power Generation (kWh) | 14,133,148 | 12,505,807 |
Plant Factor (%) | 54 | 42.58 |
Reduction in CO2 (MT) | 10,487 | 9,259 |
Nos of Tree saving | 781,281 | 681,000 |
Equivalent hectares in rain forest | 521 | 454 |
MANELWALA MINI HYDROPOWER PROJECT
Year of Commission | 2008 | |
Installed Capacity (MW) | 2.4 | |
Annual Expected Energy (GWH) | 7.8 | |
Operational Highlights | 2024 | 2023 |
Power Generation (kWh) | 7,416,891 | 8,781,674 |
Plant Factor (%) | 35.28 | 41.76 |
Reduction in CO2 (MT) | 5,503 | 6,502 |
Nos of Tree saving | 409,974 | 478,470 |
Equivalent hectares in rain forest | 274 | 319 |
PADIYAPELELLA MINI HYDROPOWER PROJECT
Year of Commission | 2017 | ||||||||||||
Installed Capacity (MW) | 3.5 | ||||||||||||
Annual Expected Energy (GWH) | 11.9 | ||||||||||||
Operational Highlights | 2024 | 2023 | |||||||||||
Power Generation (kWh) | 14,723,433 | 17,348,802 | |||||||||||
Plant Factor (%) | 48.02 | 56.58 | |||||||||||
Reduction in CO2 (MT) | 10,925 | 12,845 | |||||||||||
Nos of Tree saving | 813,912 | 945,300 | |||||||||||
Equivalent hectares in rain forest | 543 | 630 | |||||||||||
Panasian Power PLC | Annual Report 2023/24
7
GROUND MOUNTED SOLAR POWER PROJECTS
PROJECT LOCATION | Beliatta | Matara 1 | Matara 2 | Matara 3 | Maho | Pannala |
Year of Commission | 2019 | 2021 | 2021 | 2021 | 2021 | 2022 |
Installed Capacity (MW) | 1MW | 1MW | 1MW | 1MW | 1MW | 1MW |
Annual Expected Energy (GWH) | 10.43 | |||||
Operational Highlights | 2024 | |||||
Power Generation (kWh) | 1,441,623 | 1,652,209 | 1,838,444 | 1,723,096 | 1,709,934 | 1,625,899 |
Plant Factor (%) | 16.46 | 18.86 | 20.99 | 19.67 | 21.69 | 20.62 |
Reduction in CO2 (MT) | 1,070 | 1,226 | 1,364 | 1,279 | 1,269 | 1,206 |
Nos of Tree saving | 58,833 | 67,427 | 75,027 | 70,320 | 69,782 | 66,353 |
Equivalent hectares in rain forest | 39 | 45 | 50 | 47 | 47 | 44 |
PANNALA 1MW | MATARA 3MW |
MAHO 1MW | BELIATTA 1MW |
Panasian Power PLC | Annual Report 2023/24
PROJECT PORTFOLIO
8
ROOF TOP SOLAR POWER PROJECTS
PROJECT LOCATION
Year of commission
Installed Capacity MW (AC)
Annual Expected Energy GWH
Operational Highlights
Power Generation (kWh)
Plant Factor ( %)
Reduction in CO2 (MT)
Nos of Trees saving
Equivalent Hectares in rain forest
Boralesgamuwa | Kolonna | Kohuwala | Palapathwala | Narammala | Uhumeeya | Melsiripura | Mawathagama ECO | Mawathagama Foundation |
2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2019 | 2019 |
300KW | 250KW | 350KW | 600KW | 233KW | 550KW | 300KW | 583KW | 400KW |
3.97 | ||||||||
2024 | ||||||||
348,857 | 265,148 | 416,091 | 721,438 | 238,363 | 548,211 | 411,647 | 761,270 | 511,361 |
13.27 | 12.11 | 15.83 | 13.73 | 11.68 | 13.91 | 15.66 | 14.91 | 14.59 |
258 | 196 | 308 | 534 | 176 | 406 | 305 | 563 | 379 |
19,238 | 14,622 | 22,945 | 39,784 | 13,145 | 30,231 | 22,700 | 41,980 | 28,199 |
13 | 10 | 15 | 27 | 9 | 20 | 15 | 28 | 19 |
BORALESGAMUWA 300KW | KOLONNA 250KW | MAWATHAGAMA ECO 583KW |
NARAMMALA 233KW | PALAPATHWALA 600KW | UHUMEEYA 550KW |
KOHUWALA 350KW | MAWATHAGAMA FOUNDATION | MELSIRIPURA 300KW |
400KW | ||
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Panasian Power plc published this content on 05 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 June 2024 03:14:03 UTC.