Thursday, September 1, 2011

ERI annual report shows phenomenal growth, affirmations of good governance

Releasing it annual report for the 2010/11 financial year Environment Resources Investment PLC (ERI) reported a profit after tax of Rs. 417.68 million, up 284 percent from the previous year’s net profit of Rs. 108.81 million. Revenue grew a phenomenal 845 percent to Rs. 2,208 million from Rs. 233.72 million a year earlier.

Total assets of the company grew 250 percent to Rs. 11,900 million from Rs. 3,404 million a year ago. Total debt increased 713 percent to Rs. 1,596 million from Rs. 196.3 million the previous year.

The report said that the company had taken steps to lessen regulatory risks and ensure it had a sound reputation with ethical businesses practices.

"Regulatory risk refers to the failure to comply with regulatory requirements. As a public quoted company, regulations implemented by the Companies Act, CSE, SEC etc., will have a direct impact," the company said in its annual report.

"The following procedures are put in place to ensure that all regulatory risks are complied with: The company and its employees at all levels are committed to comply with the regulatory requirements and to maintain compliance with the regulatory framework; Audit Committee reviews the quarterly financial and compliance reports in order to ensure the regulatory compliance and adherence to internal control procedures; The company has engaged the services of a separate legal officer, an Attorney-at-Law by profession, who is responsible for the company’s compliance with all laws and regulations; A dedicated full-time compliance officer with extensive knowledge and experience in corporate law is working with the compliance team to ensure all statutory reporting is done promptly; Experienced Human Resources Management personnel is handling all employee-related matters to avoid labour law related issues."

The company’s Chairman, Lalith Heengama, vowed the company had not violated the code of business conduct and ethics.

"As we pursue our business objectives in a relentless manner, we give credence to the values that we espouse as a leading corporate entity in Sri Lanka and ensure that good governance and sustainable development are key pillars of the way we work across all our business entities. our reputation for acting responsibly plays a critical role in our success as a business and our ability to generate shareholder value.

That reputation stems from our core values of Independence, Diversity, Integrity and transparency.

"As a leading corporate entity in Sri Lanka we encourage and demand transparency in all our actions and from all our employees as we believe that the collective actions of individuals will ultimately form the reputation of the company. I affirm that I am not aware of any violation of any of the provisions of the Code of Business Conduct and Ethics," Heengama said.

The Board of Directors of ERI comprise Lalith Heengama (Chairman), Heen Banda Dissanayake (Director- Independent/Non-Executive), Gamini Sarath Munasinghe (Director- Independent/Non-Executive), Gregory Scott Newsome (Director) and Dr. Kosala Heengama (Director).

source - www.island.lk

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