Seylan Developments : Annual Report - 2021

SEYLAN DEVELOPMENTS PLC

STANDWITHCONFIDENCE

A N N U A L R E P O R T 2 0 2 1

Seylan Developments PLC fundamentally relies on its parent to generate its revenue. The rent income received from Seylan Bank is the main income source of the company, and it ensures the capital contributors are satisfied in terms of the return they are given. Together we stand means that this parent subsidiary relationship helps both businesses, especially Seylan Developments PLC to survive and stand in the market confidently

Content

LEADERSHIP AND ACHIEVEMENTS

1. FINANCIAL HIGHLIGHTS

1. CHAIRMAN'S REVIEW

1. GENERAL MANAGER'S REVIEW

1. DIRECTORS' PROFILE

PERFORMANCE AND VALUE CREATION

1. OUR VALUE CREATION MODEL
2. STAKEHOLDER ENGAGEMENT

20 MANAGEMENT DISCUSSION AND ANALYSIS

36 OUR COMMITMENT TO THE SUSTAINABILITY DEVELOPMENT GOALS

ENTERPRISE GOVERNANCE AND RISK MANAGEMENT

39 CORPORATE GOVERNANCE

1. DIRECTORS' STATEMENT OF INTERNAL CONTROL

1. REPORT OF THE BOARD AUDIT COMMITTEE

1. REPORT OF THE BOARD REMUNERATION COMMITTEE

70 REPORT OF THE BOARD RELATED PARTY TRANSACTIONS REVIEW COMMITTEE

1. REPORT OF THE BOARD NOMINATION COMMITTEE
2. ANNUAL REPORT OF THE BOARD ON THE STATE OF AFFAIRS OF THE COMPANY

81 STATEMENT OF DIRECTORS' RESPONSIBILITY

1. CHAIRMAN'S AND HEAD OF FINANCE'S RESPONSIBILITY STATEMENT
2. INTEGRATED RISK MANAGEMENT REPORT

FINANCIAL STATEMENTS

1. FINANCIAL CALENDAR
2. INDEPENDENT AUDITORS' REPORT

1. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
2. STATEMENT OF FINANCIAL POSITION
3. STATEMENT OF CHANGES IN EQUITY
4. CASH FLOW STATEMENT

102 NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

1. VALUE ADDED STATEMENT
2. SHAREHOLDERS' AND DIRECTORS' HOLDING INFORMATION

1. DECADE AT A GLANCE

1. NOTICE OF MEETING
2. FORM OF PROXY
   IBC CORPORATE INFORMATION

ANNUAL REPORT 2021

OUR VISION

"To be recognized as the premier property management Company in Sri Lanka which provides an excellent service to its tenants".

OUR MISSION

"We are dedicated to controlling

costs while maintaining the

highest levels of satisfaction and

comfort to our tenants

by responding to their unique

requirements and special requests. We listen to them, and then develop a plan and structure that fits their goals, budgets and needs.

We immaculately upkeep our		CREATION
standards by deploying our teamACHIEVEMENTS
properties to the highest quality		VALUE
AND	AND
of highly trained professionals".		PERFORMANCE
LEADERSHIP

ENTERPRISE GOVERNANCE AND RISK MANAGEMENT 1 FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION

LEADERSHIP AND ACHIEVEMENTS 2 PERFORMANCE AND VALUE CREATION ENTERPRISE GOVERNANCE AND RISK MANAGEMENT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION

SEYLAN DEVELOPMENTS PLC			ANNUAL REPORT 2021
FINANCIAL HIGHLIGHTS
		2021	2020	Variance
FINANCIAL CAPITAL
Financial Performance - Highlights and Ratios
Revenue	Rs' Mn	342.13	326.20	4.9%
Results from operating activities	Rs' Mn	293.51	304.21	-3.5%
Net change in fair value of investment properties	Rs' Mn	13.86	15.50	-10.6%
Net Finance Income	Rs' Mn	32.25	29.62	8.9%
Profit before tax	Rs' Mn	325.76	333.82	-2.4%
Profit after tax	Rs' Mn	350.82	260.21	34.8%
Dividends	Rs' Mn	207.15	177.56	16.7%
Earnings per share (basic)	Rs:	2.37	1.76	34.8%
Returns on Assets (ROA)	%	5.78%	4.40%	31.5%
Returns on Capital Employed (ROCE)	%	6.65%	5.10%	30.4%
Financial position - Highlights and Ratios
Total Assets	Rs' Mn	6,068.00	5,917.81	2.5%
Equity	Rs' Mn	5,273.63	5,101.92	3.4%
Stated Capital	Rs' Mn	1,644.39	1,644.39	0.0%
Net Assets per share	Rs:	35.64	34.48	3.4%
Current ratio	No. of times	2.31	1.69	36.7%
No of shares in issue	Number	147.96	147.96	0.0%
Debt / Equity ratio	%	15.1%	16.0%	-5.8%
Market/ Shareholder Information
Dividend per share (Proposed)	Rs:	1.40	1.20	16.7%
Market Capitalization	Rs' Bn	2.66	2.13	25.0%
Price Earning ratio	No. of times	7.59	8.18	-7.2%
Dividend yield ratio	%	7.8%	8.3%	-6.7%
Dividend payout ratio	%	59%	68%	-13.5%
Net Assets per share	Rs:	35.64	34.48	3.4%
Share Prices
Highest during the year	Rs:	19.50	14.70	32.7%
Lowest during the year	Rs:	15.90	11.40	39.5%
Last Traded price	Rs:	18.00	14.40	25.0%
Others
Economic Value Generated	Rs' Mn	463.41	371.52	24.7%
Economic Value Distributed
Government	Rs' Mn	72.39	73.62	-1.7%
Employees	Rs' Mn	39.11	36.60	6.9%
Borrowers	Rs' Mn	0.01	0.06	-75.8%
Expansion and growth	Rs' Mn	351.90	261.24	34.7%
Number of Employees	Number	19	20	-5.0%
Average revenue per employee	Rs' Mn	18.01	16.31	10.4%
MANUFACTURED CAPITAL
Investment property	Rs' Mn	5,550.66	5,488.88	1.1%
Property, plant and equipment	Rs' Mn	5.36	2.66	101.5%
Capital Expenditure	Rs' Mn	48.67	57.65	-15.6%

SEYLAN DEVELOPMENTS PLC

ANNUAL REPORT 2021

FINANCIAL CAPITAL

Rs. 342.13 Mn	Rs. 350.82 Mn	Rs. 2.37	Rs. 1.40	Rs. 35.64
Revenue	↗	PAT	↗	EPS	DPS	NAPS
↗ 5%	35%	35%	↗ 16.7%	↗ 2.5%

		Rent Income			Profitability			EPS & DPS		NAV & Last Traded Price
Rs' Mn						Rs' Mn					Rs'					Rs'
400						400					2.50					40
300						300					2.00					30
200						200					1.50					20
									1.00
100						100					0.50					10
-	2016	2017	2018	2019	2020	-	2018	2019	2020	2021	-	2018	2019	2020	2021	-	31 Dec	31 Dec	31 Dec	31 Dec
	2017	2017	31 Dec
																2017	2018	2019	2020	2021
						PBT Incl FV Gain	PBT excl FV Gain	PAT	EPS	DPS				NAV Per Share	Last Traded Price

MANUFACTURED CAPITAL

HUMAN CAPITAL

East Tower

Head of Office Building of Seylan Bank

West Tower

16 Apartments

Capital Expenditure

Rs' Mn
90
80
70
60
50
40
30
20
10
-	2020	2021
2019

Average Length of Service of an employee

19 Years

Over 15 years of service (Permanent Staff)

75%

Revenue per employee

Rs' Mn
20
15
10
5
0	2018	2019	2020	2021
2017

INTELLECTUAL CAPITAL			NATURAL CAPITAL
Seylan -	Energy Consumption
Group Linkage	2,870,426 kwh
Awards and Recognitions	Water Consumption
Silver Award - CA Sri Lanka, Annual
23,591 m3
Report Award, Land & Property Sector
SOCIAL & RELATIONSHIP CAPITAL
Occupancy at the year end
East Tower - 100%
Wesr Tower - 81.25%
Contribution to CSR

LEADERSHIP AND ACHIEVEMENTS PERFORMANCE AND VALUE CREATION ENTERPRISE GOVERNANCE AND RISK MANAGEMENT 3 FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION

Rs: 800,000/-