Annual Report 2023/24
In the dynamic landscape of the automotive industry, adaptability and innovation are paramount. United Motors, a pioneering force in this realm, exemplifies these principles through their steadfast commitment to rethink, refocus, and rebuild.
RETHINK: United Motors embraces the power of forward- thinking, consistently challenging conventional norms, exploring new avenues and technologies to stay ahead of the curve. We approach each endeavor with a fresh perspective, fostering creativity and ingenuity.
REFOCUS: In an industry marked by constant evolution, staying true to core values while adapting to shifting paradigms is essential. United Motors excels in refocusing its efforts, directing resources towards initiatives that align with its long-term objectives.
REBUILD: Adversity often presents opportunities for growth, and United Motors understands the importance of resilience.
In times of challenge or setback, we leverage our expertise and determination to rebuild stronger than before.
Furthermore, United Motors recently marked a significant milestone by acquiring full ownership of Dutch Lanka Trailers, a move that amplifies its global footprint and enhances its capabilities in the transportation sector. This strategic acquisition not only expands our portfolio but also reinforces our position as an industry leader, poised for continued innovation and growth.
United Motors' dedication to rethinking, refocusing, and rebuilding serves as a testament to its enduring legacy of excellence in the automotive industry.
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ABOUT THIS REPORT
Welcome to the Annual Report of United Motors Lanka PLC (referred to as UML). This report provides stakeholders with a balanced and concise account of how we created value during the year and our strategic direction going forward. This report will also share UML's financial and operational performance for the year ended 31 March 2024 and our collective strategies to overcome the year's challenges.
SCOPE AND BOUNDARIES
The report covers the operations of United Motors Lanka PLC (UML) and its subsidiaries: Unimo Enterprises Limited (UEL), U M L Heavy Equipment Limited (UMLH), U M L Property Developments Limited (UMPDL), Dutch Lanka Trailer Manufacturers Limited (DLT), and Dutch Lanka Engineering Private Limited (DLE), collectively referred to as the DLT Group. These subsidiaries, along with UML, will be referred to as the 'Group' in this report. The report covers the period from 1 April 2023 to 31 March 2024.
The Group adopts an annual reporting cycle for both its financial and other disclosures reporting, and this report builds on our previous Annual Report for the financial year ended 31 March 2023. Both the financial and non-financial disclosures pertain to the Group, unless specifically mentioned otherwise. The Group acquired Dutch Lanka Trailer Manufacturers Limited, and its' subsidiary company Dutch Lanka Engineering
Private Limited. During the year ended 31 March 2024, and there were no other material changes to the Group. There were also no material restatements
of information published in last year's report.
REPORTING FRAMEWORKS
We are committed to aligning our reporting with global best practices in corporate reporting and comply with a range of internationally accepted reporting frameworks as listed below:
- Companies Act No.7 of 2007
- Sri Lanka Financial Reporting Standards (SLFRS) /Sri Lanka Accounting Standards (LKAS)
- Listing requirements of the Colombo Stock Exchange
- Guidelines issued by the Securities and Exchange Commission of Sri Lanka
- Code of Best Practice on Corporate Governance issued by the Institute of Chartered Accountants of Sri Lanka
INDEPENDENT ASSUARANCE
Independent Assurance has been obtained from Group Auditors Messrs. Deloitte Partners on the Consolidated Financial Statements.
FEEDBACK
We are committed to consistently enhancing the quality and readability of our Annual Report and welcome your feedback, suggestions and other comments. Please direct your feedback to,
info@unitedmotors.lk
To view this report online, or for any other information please log on to
www.unitedmotors.lk
United Motors Lanka PLC
G O V E R N A N C E | / | F I N A N C I A L | R E P O R T S | / | M I S C E L L A N E O U S | 3 |
TABLE OF CONTENTS
OVERVIEW | |
About This Report | 2 |
Table of Contents | 3 |
About Us | 5 |
Group Structure | 6 |
Milestones | 8 |
Operational and Financial Highlights | 10 |
STEWARDSHIP | |
Chairman's Review | 13 |
Group CEO's Review of Operations | 17 |
Board of Directors | 22 |
Senior Management Team | 34 |
MANAGEMENT REVIEWS | |
Management Discussion and Analysis | 45 |
Review of Operations | 53 |
Financial Capital | 60 |
Manufactured Capital | 64 |
Social and Relationship Capital | 67 |
Human Capital | 73 |
Natural Capital | 79 |
Intellectual Capital | 81 |
GOVERNANCE | |
How We Govern | 85 |
Report of the Board Audit and | |
Risk Committee | 112 |
Report of the Remuneration Committee | 115 |
Report of the Nomination and | |
Governance Committee | 118 |
Report of the Related Party | |
Transactions Review Committee | 121 |
Report of the Strategy Review Committee 123 | |
Enterprise Risk Management | 124 |
Directors' Statement on | |
Risk Management and Internal Controls | 131 |
Annual Report of The Board of Directors | 133 |
FINANCIAL REPORTS | 13 | ||
Financial Calendar | 141 | ||
Statement of Directors' Responsibility | 142 | ||
Responsibility Statement of | |||
Chief Executive Officer and | CHAIRMAN'S | ||
Chief Financial Officer | 143 | ||
Independent Auditor's Report | 144 | REVIEW | |
Statement of Profit or Loss and | |||
other Comprehensive Income | 150 | 46 | |
Statement of Financial Position | 151 | ||
Statement of Changes In Equity | 152 | ||
Statement of Cash Flows | 154 | ||
Notes to the Financial Statements | 155 | OUR VALUE | |
MISCELLANEOUS | CREATION MODEL | ||
Share Information | 235 | ||
Ten Year Summary - Group | 239 | 85 | |
Investor Information | 240 | ||
Glossary of Financial Terms | 241 | ||
Notice of Meeting | 243 | ||
Form of Proxy | 247 | HOW WE | |
Corporate Information | Inside Back Cover | GOVERN | |
239 |
TEN YEAR SUMMARY -
GROUP
Annual Report 2023/24
OVERVIEW
G O V E R N A N C E | / | F I N A N C I A L | R E P O R T S | / | M I S C E L L A N E O U S | 5 |
ABOUT US
Established in 1945, United Motors Lanka PLC is one of Sri Lanka's oldest and most esteemed automobile companies. Over the decades, we have earned our place among the island's top-tier business entities, consistently recognised in the LMD 100 and Most Respected Entities by LMD. Our commitment to good governance practices is reflected in our annual reports, which have been consistently acknowledged as the Best in the Automotive Sector by the Institute of Chartered Accountants of Sri Lanka.
United Motors Lanka PLC is honored to represent a diversified portfolio of esteemed automotive brands from across the globe. Our offerings include Mitsubishi passenger and Fuso commercial vehicles from Japan, Perodua compact cars from Malaysia, JMC commercial vehicles from and DFSK SUVs from China. Additionally, we are proud to represent JCB heavy equipment and generators from India along with the full product range of LiuGong heavy equipment in the Maldives and their forklifts in Sri Lanka. Furthermore, we distribute premium products such as Yokohama tyres from Japan, Valvoline lubricants, Prestone and Simoniz car care products from the USA.
With a commitment to serving our customers across the island, United Motors maintains a comprehensive branch network in Orugodawatte, Ratmalana, Panchikawatta, Anuradhapura, Kandy, Kurunegala, Matara, Nugegoda, Ratnapura, and Jaffna. This network ensures seamless sales and after-sale services that are customer-centric and reliable. We boast a robust dealer network of over 2,500 outlets nationwide, covering both urban and rural areas for the distribution of tyres, genuine parts, and lubricants.
Additionally, United Motors Lanka PLC has expanded its operations into export activities with the recent acquisition of Dutch Lanka Trailers, marking a strategic move towards broader international market engagement. This development underscores our commitment to growth and diversification, enhancing our position as a leading player in Sri Lanka's automotive and industrial sectors.
We look forward to building on our legacy of excellence and innovation, continuing to exceed expectations and deliver value to our stakeholders in the years ahead.
Annual Report 2023/24
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GROUP STRUCTURE
Vehicle
- Sales
- After-saleservices
- Spare parts
Solar power
T | C | O | |||||
N | M | P | |||||
E | |||||||
A | |||||||
R | |||||||
N | |||||||
A | |||||||
P | |||||||
Y | |||||||
AUTOMOBILES | POWER & ENERGY |
LUBRICANTS | Reg. No. PQ 74 | MANUFACTURING |
& TECHNOLOGY | ||
(Incorporated - 09 May 1989) | ||
Lubricants and car care | 3D Printing equipment/material |
• Sales | |
• After-sales services | |
• Certification courses | |
• Hydrophobic surface | |
protection products | |
(Nano-coating products) |
DIRECTORS
Mr. Devaka Cooray | Mr. Chanaka Yatawara | Mr. Ananda Atukorala |
Chairman | Group Chief Executive Officer/ | |
Executive Director | ||
Mr. Ramesh Yaseen | Ms. Hiroshini Fernando | Prof. Malik Ranasinghe |
Executive Director-After-Sale Services | (Resigned w.e.f. 31 March 2024) | |
Mr. Stuart Chapman | Ms. Coralie Pietersz | Mr. Junya Takami |
Mr. Thushara Jayasekara | Mr. V. Govindasamy | Ms. Rinoza Hisham |
Executive Director-Finance | (Appointed w.e.f. 15 May 2024) | Company Secretary |
United Motors Lanka PLC
G O V E R N A N C E | / | F I N A N C I A L | R E P O R T S | / | M I S C E L L A N E O U S | 7 |
SUBSIDIARIES
UNIMO ENTERPRISES | U M L HEAVY EQUIPMENT | U M L PROPERTY | DUTCH LANKA TRAILER | ||||||||||||
LIMITED | LIMITED | DEVELOPMENTS LIMITED | MANUFACTURERS LIMITED | ||||||||||||
100% Subsidiary | 100% Subsidiary | 100% Subsidiary | 100% Subsidiary | ||||||||||||
Reg. No. PB 218 | Reg. No. PB 5403 | Reg. No. PB 253 | Reg. No. PB 175 | ||||||||||||
(Incorporated on 17 March 1994) | (Incorporated on 07 July 2017) | (Incorporated on 08 October 1993) | (Incorporated on 13 March 1992) | ||||||||||||
DUTCH | |||||||||||||||
LANKA | |||||||||||||||
ENGINEERING | |||||||||||||||
(PVT) LIMITED | |||||||||||||||
100% Subsidiary | |||||||||||||||
Reg No PB 7006 | |||||||||||||||
(Incorporated on | |||||||||||||||
16 May 1997) | |||||||||||||||
Automobile | Equipment | Tyres | Equipment, | Property | Port and road trailers | Road Trailers | ||||||||||
and | Generators and | |||||||||||||||
machinery | machinery | • Renting of | ||||||||||||||
• Assembly | • Sales | • Sales | • Sales | • Terminal Trailers | • Design & manufacture | |||||||||||
• Sales | • After-sales | warehouses | • Design and Manufacture | • Local Sale | ||||||||||||
• After-sales | services | • Export/ Local sales | • Heavy Steel Fabrication | |||||||||||||
services | • Fabrication | • Services | ||||||||||||||
• Spare part export sales | • Bodybuilding | |||||||||||||||
Applications | ||||||||||||||||
• Spare part sales | ||||||||||||||||
DIRECTORS
Mr. Devaka Cooray -
Chairman
Mr. Chanaka Yatawara -
Group Chief Executive Officer/
Executive Director
Mr. Ananda Atukorala
Mr. Ramesh Yaseen
Ms. Hiroshini Fernando
Mr. Thushara Jayasekara
Mr. Mahesh Gunathilake - Chief Executive Officer/ Executive Director (Resigned w.e.f. 20 May 2023)
Mr. Raveendra Siriwardene
(Resigned w.e.f. 06 July 2023)
Ms. Rinoza Hisham -
Company Secretary
DIRECTORS | DIRECTORS | DIRECTORS |
Mr. Devaka Cooray - | Mr. Devaka Cooray - | Mr. Devaka Cooray - |
Chairman | Chairman | Chairman |
Mr. Chanaka Yatawara - | Mr. Chanaka Yatawara - | Mr. Chanaka Yatawara - |
Group Chief Executive Officer/ | Group Chief Executive Officer/ | Group Chief Executive Officer/ |
Executive Director | Executive Director | Executive Director |
Ms. Hiroshini Fernando | Mr. Thushara Jayasekara | Mr. Prasanna Haturusinghe - |
Mr. Thushara Jayasekara | Ms. Rinoza Hisham - | Chief Executive Officer/ Executive |
Director | ||
Mr. Priyantha Ellepola | ||
Company Secretary | Corporate Services (Pvt) Ltd - | |
Mr. Gihan Pilapitiya | ||
Company Secretaries | ||
Mr. Buddhika Singhage | ||
Ms. Rinoza Hisham - | ||
Company Secretary |
Annual Report 2023/24
8 | O V E R V I E W | / | S T E W A R D S H I P | / | M A N A G E M E N T | R E V I E W S |
MILESTONES
Exclusive distributor | Expansion with the | ||
Commencement of | agreement with | incorporation of U M L | |
United Motors Limited, | Mitsubishi Motors | Property Developments | |
marking the beginning | Corporation for | Limited to construct | Re-registration as |
of its corporate journey | sales of the flagship | a warehouse complex | United Motors Lanka |
as a private limited | brand "Mitsubishi," | at Orugodawatta, | PLC, reflecting UML's |
liability company, | establishing UML as | demonstrating | continued growth and |
laying the foundation | a trusted partner of a | UML's commitment | transformation into a |
for decades of | renowned automotive | to infrastructure | leading automotive |
automotive excellence. | brand. | development. | entity. |
1945 1985 1993 2007
1972 1989 1994 2009
United Motors | Incorporation of United | Strengthening its | Opening of a local |
Limited vested with | Motors Lanka Limited as | stronghold with the | vehicle assembly |
the Government and | a public limited liability | incorporation of Unimo | facility within the |
commences operations | company with Stated | Enterprises Limited | Orugodawatte |
as a Government | Capital of | (UEL) to import and sell | workshop complex by |
Owned Business, | LKR 100,000,000 | vehicles, enhancing UML | UEL, showcasing UML |
solidifying its role as | Group's market presence | Group's commitment | |
a key player in the | and product offerings. | to local assembly and | |
automotive industry. | operational efficiency. |
United Motors Lanka PLC
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United Motors Lanka 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 03:30:02 UTC.