ANNUAL REPORT
fifififffflffiflflffffi fifffifffflffifflfifffifl fifffffflfiffifl SLIIT ACADEMY ANNUAL REPORT
ABOUT US SLIIT Academy (Private) Limited previously known as SLIIT Computing was established as a subsidiary of, Sri Lanka Institute of Information Technology under the Companies Act No. 17 of 1982 in 2001 and was registered with the Registrar of Companies under the No. N (PVS) 29707 on 31st of December 2001. SLIIT Academy aims to provide education opportunities for wider range of students who want to progress into their higher education with an industrial oriented learning experience. A blend of theory and practice gives the edge for those who want to enter into the workforce with sound academic background and gives a competitive advantage among the others.
OUR VISION & MISSION OUR VISION & MISSION To transfer informa�on into knowledge and wisdom Vision Mission To be an Ins�tute of repute to perform professionals of dicta�ons to serve the society and lead the na�on.
2020 - 2021 NEW GRADUATES 2017-2018 208 NEW GRADUATES 2018-2019 232 NEW GRADUATES EQUAL OPPORTUNITY EMPLOYER 2019 -2020 315 NEW GRADUATES 2020 -2021 331 2,346 2,677 ……..We are helping our students to grow and develop…… …It is Important we recognize our achievers… ………… It is Important that we recognize and develop the team who helps us in achieving our goals…….. ……Aspiring young professionals …… 2019 -2020
LKR MN YEAR fiffffiffl/fflfiffffi fiffffiffl/fflfiffffi fiffffiffl/fflfiffffifl fiffffiflffl/fflfifffiff fifffiffffl/fflfifffiffi REVENUE PBT REVENUE & PROFIT BEFORE TAX (PBT) ff ffiffff ffiff fiffff fiff ffff ff ffff
fifffflffiflffffifflffflffiffifflffflfl ( ffifflffflffffflflffi ffflfl) 100% ffiflflfl ffflffifl flffiflfflffflffifflff 331 fifffflffiflfflffifflflflfflfl fl fl ffifl flfl flffflffiflflflffiff ffflffifl fifi 13 fi fi 100% fifffflffiflfflffifflflfflfflffl ffffiflffi(LKR) 32.5MN flffiffi(LKR) 47MN fifffflffiflfflffifflflfflflfflffffiflffi ffl fflff ffffl(LKR) 17,828 ffl(LKR) 35% fifffflffiflfflffifflfl ffiffffl fflff fifffflffifflfflflff fffl fiffl 9% 32% ffififfifflff ffffififfl fffl fflflfflfl fffl ffifififfiflffl 54% 38.5% ffififfiflffffl fl
666.2 Mn ffflff AT A GLANCE 210 Mn 503.7 Mn fflff 354 Mn ffifl fl
CONTENTS Chairman’s Review Managing Director’s Review Board of Directors Staff Events Directors Report Independent Auditor’s Report Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notice to the Financial Statements Notice of Meeting Form of Proxy 10 12 14 17 19 21 22 24 25 26 27 28 28 29
AnnualReport2020 ‘21 10 Professor Lakshman L. Ratnayake Chairman
CHAIRMAN’S REVIEW INTRODUCTION It is with great pleasure that I present the Annual Report of SLIIT Academy (Pvt.) Ltd., for the year ended 31st March 2021. The company, which is a subsidiary of the Sri Lanka Institute of Information Technology (Guarantee) Limited, was incorporated under the Companies Act No. 7 of 2007 dated 09th July 2008. OBJECTIVE The prime objective of SLIIT Academy (Pvt.) Ltd. is to provide Engineering, Information Technology and Business Management educational services to a wider range of students who wish to progress their higher education with an industrial oriented learning experience. OPERATIONAL HIGHLIGHTS DURING THE PERIOD APRIL 2020 TO MARCH 2021 Ongoing Programs Curtin University – SLIIT Academy Foundation program This program offers a unique pre-university pathway programme for students. Upon successful completion of this program, students are eligible for direct entry to Curtin University’s computing majors offered in Australia or Sri Lanka. In the year 2020/2021, the intake was 47 students compared to 83 students in the year 2019/2020. Reduction in new entrants was due to delay in release of Advanced Level results. However due to increase in cumulative base there is an increase of revenue amounting to 33 MLKR compared to previous year. Foundation Program Teaching services were provided for the Foundation Certificate in Information Technology Programme. In the year 2020/2021, the intake was 44 students compared to 80 students in 2019/2020. Degree Programs Degree Programs – SLIIT Teaching services were provided for the B.Sc. in Information Technology degree Programme. After completing a successful year with 123 graduates qualified in Bachelor of Science in Information Technology, the total number of graduates added to the IT professional workforce stands at 2,142. DEGREE PROGRAM - BENG (HONS) ELECTRONIC & ELECTRICAL ENGINEERING-LJMU In the year 2020 the intake was 30 students for the top up program (Compared to 18 students in 2019/2020). Part-time services had been obtained from the industry personnel as visiting lecturers. Prof. Indra Dayawansa functioned as the coordinator in conducting the engineering program. Degree Programs – University of Bedfordshire Teaching services were provided for the Top Up - degree programs in offered by University of Bedfordshire, UK. In the year 2020/2021, the intake was 221 compared to 196 in the year 2019/2020. Total number of graduates added to workforce stands at 468. Headway “Office Productivity Tools for Knowledge Workers” The programme on ‘Office Productivity Tools for Knowledge Workers’ was conducted at Headway School of Languages, Batticaloa, this year as well. Prof. Lalith Gamage functioned as the MD/CEO, Prof. Mahesha Kapurubandara functioned as the Director Academic Affairs of SLIIT Academy. Dr. Yasas Jayaweera functioned as the Head/Academic in overseeing functions of the Degree Programs. Ms. Chintha Ediriweera functioned as the Head / Administration in carrying out the functions of administration while Mr. Ravin Dharmaratne functioned as the Accountant in maintaining finances of the Company. The Chairman wishes to place on record the valuable contribution made by Directors, Secretary and the staff in running the company successfully during the year under review. Professor L. L. Ratnayake Chairman AnnualReport2020 ‘21 11
AnnualReport2020‘21 12 Professor Lalith Gamage Managing Director/ CEO
MANAGING DIRECTOR’S REVIEW The global pandemic severely impacted all aspects of our lives and was ‘unprecedented’ in every sense. As the disruption caused by the pandemic continued across the world, we continued to support and protect all our stakeholders despite the global pandemic. We continued to fulfill our mission by reinforcing our digital platform. During the year under review, SLIIT Academy conducted all scheduled exams on a regular basis in line with the academic calendar ensuring timely graduation. Moreover, we provided students with additional resources via digital platforms to improve their knowledge base and skills. We closed the year with the highest reported Profit After Tax (PAT) of Rs. 178 million. Our reported revenue grew 9% and Profit After Tax grew by 30% as a result of better operational performance and successful containment of costs. I am proud that the tireless efforts of our staff, greatest asset of SLIIT academy, evinced that the Institute is going from strength to strength. We were able to increase our student numbers together with our foreign partner universities in the fields of Computing, Engineering and Business Management. Academic Activities and Partnerships Foundation Certificate in Information Technology (FCIT) programme provides a unique pathway for students who have successfully completed G.C.E. Ordinary Level exams to gain entry to the franchised foreign partner university programmes conducted at SLIIT Academy. During the year, 91 students were admitted to the program. Reported revenue grew by 32% compared to previous year due to increase of cumulative student base pertaining to Curtin University -SLIIT Academy foundation program as a result of new partnership with Curtin University, Australia. After completing a successful year with 123 graduates qualifying in Bachelor of Science in Information Technology, the total number of graduates added to the IT professional workforce stands at 2,142. We conducted several degree programmes in partnership with University of Bedfordshire, UK. This partnership provides an opportunity for students who aspire to gain foreign qualifications from a reputable university. The programmes include BSc (Hons) in Computer Science and Software Engineering, Computer Networking and BA (Hons) in Business Administration. In the year 2020/2021, the intake was 221 compared to 196 in the year 2019/2020. Total number of graduates added to workforce stands at 468. BEng (Hons) Electronic and Electrical Engineering (Final Year) offered by John Moores University; UK, 30 students enrolled for the program compared to 18 students in the previous year. The program on ‘Office Productivity Tools for Knowledge Workers’ was conducted at Headway School of Languages, Batticaloa, this year as well. Financial Review During the year 2020/21, a significant growth of 9% was achieved in the total income compared to the preceding financial year, primarily owing to an increase in the academic income over the same period. The net profit before taxation (NPBT) increased from Rs. 159 million in 2019/20 to Rs.210 million in 2020/21 resulting in a growth of 33% in NPBT for the Financial Year 2020/21. Appreciations I take this opportunity to express my gratitude and appreciation for the guidance and support of the Chairman and the Board of Directors of SLIIT Academy. My heartfelt appreciation goes to each and every staff member of SLIIT Academy for their tireless effort and commitment towards achieving the set objectives for the year. I would also like to thank our former, current and prospective students and their parents, partner universities, industry partners and media partners for the trust and confidence placed in SLIIT Academy throughout the year and look forward to their continued support and engagement with us in the years ahead. Professor Lalith Gamage Managing Director / CEO AnnualReport2020 ‘21 13
BOARD OF DIRECTORS REVIEW AnnualReport2020 ‘21 14 Professor Lakshman Ratnayake Professor LALITH GAMAGE Professor Lalith Gamage was the chief architect in establishing the Sri Lanka Institute of Information Technology (SLIIT) in 1999 and is currently holding the position of its Vice Chancellor and CEO. In 2000 he won The Outstanding Young Person of the year (TOYP) award for Academic Leadership. Professor Gamage is an Affiliate Professor of the University of British Columbia, Canada. He contributed to promoting the IT industry and served the government of Sri Lanka as the Chairman of Lanka Software Foundation (LSF), Chairman of Arthur C. Clarke Institute for Modern Technologies (ACCIMT), Chairman of the ICT Cluster and the Executive Director of Trade Information Network of Sri Lanka Export Development Board. Prof. Gamage also took the lead in establishing Sri Lanka’s first technology incubator, Conceptnursery which has produced a large number of successful technology companies. Currently he is serving as the Chairman of Information and Communication Technology Agency of Sri Lanka (ICTA) and is also the Chairman of the Technical Committee for the Sri Lanka Unique Digital Identity project. Prof. Gamage is an Advisory Board Member of Sri Lanka Association of Software and Service Companies (SLASSCOM) and is the Founding President of Sri Lanka Association of Non-State Higher Education Institutes (SLANSHEI). Professor Gamage is an Electronic and Telecommunication Engineering graduate from the University of Moratuwa and holds a PhD from the University of British Columbia, Canada. His research areas include Computer Vision, Artificial Intelligence, Robotics and Evolutionary Computing. Professor Lakshman Ratnayake brings more than 40 years’ experience to the education industry and currently he is the Chairman of SLIIT Academy. He is an Emeritus Professor at University of Moratuwa. He was a Board member of the National Research Council and the IESL College of Engineering. Professor Ratnayake was an Adjunct Professor of Civil Engineering at University of Calgary, Canada and served as an Adjunct Associate Professor at the Utah State University, USA. He was the Vice Chairman of the UGC, the Dean of the Faculty of Engineering and the Head of the Department of Civil Engineering at the University of Moratuwa. He worked as the Project Director of the World Bank funded project on Higher Education for the Twenty- First Century (HETC) and the Project Director of the World Bank funded IRQUE Project. Professor Lakshman L. Ratnayake was also the President of the Institution of Engineers, Sri Lanka and Chartered Institute of Transport, Sri Lanka. He was a Member of the University of Colombo Council, Member Accreditation Board and Member Registration of Engineers, Institution of Engineers. In March 2016 he won the prestigious award from the Lions Club International for the outstanding contribution he has made for education.
AnnualReport2020 ‘21 15 Professor Mahesha Kapurubandara is the Director Academic Affairs at SLIIT Academy. She is responsible for providing strategy, leadership, administration and overseeing the Office of the Dean International, SLIIT. Prior to taking up the role of Dean at SLIIT, she has worked at Western Sydney University (WSU), Australia for 5 years and also served as a visiting professor at University of Uppsala, Sweden and University of Nanjing, China. She has extensive experience in lecturing in Australia. She is also an adjunct research fellow at WSU, Australia. Prof. Kapurubandara is acclaimed for several awards in the Information, Communication and Technology Field. She is the first woman in Sri Lanka to receive a Professorship for Information Communication Technologies (ICT), and was also recognized by Women in Management, Sri Lanka, with the award of their Silver Medal at the ‘6th Professional & Career Womens’ Awards, 2016. She also received the Female ICT Leader of the Year 2016 from the Computer Society of Sri Lanka. In December 2016 she was recognized as a finalist at the SEEARCC Awards held in Sydney, Australia in the category ICT Educator of the year. Prof. Kapurubandara has also been a member of many professional bodies, reviewed various journals, supervised PhD students. She received her PhD at the Western Sydney University (WSU), Australia in Information Technology Mr. SANJEEWA WICKRAMANAYAKE Professor MAHESHA KAPURUBANDARA Mr. Sanjeewa Wickramanayake, Chairman of the EWIS Group, has over 25 years of experience in the industry. One of his great successes is his buy-out of East West Information Systems, as the company was known. Through his visionary leadership, Mr. Wickramanayake has steered the organization towards achieving many significant milestones and successes in the IT Industry. His vision to take IT to the grass root level, led him to commence the first ever Computer Manufacturing Plant in Sri Lanka, taking the IT Industry in this country to the next level.
AnnualReport2020 ‘21 16 Mr. DUMINDRA RATNAYAKA Mr. Dumindra Ratnayake is presently the Chairman of the 1990 Suwaseriya Foundation, which provides a Emergency Pre Hospital Care Ambulance service across Sri Lanka. Prior to that he was Chairman of the Board of Investment of Sri Lanka. Prior to being appointed to the chair of the BOI, he served as a Board Director of the BOI as well as of the Information and Communication Technology Agency of Sri Lanka (ICTA). A respected mentor to young engineering graduates and an active angel investor, Dumindra has played a pivotal role in assisting several local entrepreneurs receive the backing needed to create successful companies. Dumindra was the Chief Executive Officer of Etisalat Lanka (Pvt) Limited, the pioneering mobile telecommunications network in Sri Lanka, where he served for over 25 years. He handled a variety of roles from planning, expansion, and customer service to CTO, culminating his career with the company in the capacity of CEO for 15 years. Etisalat Lanka achieved many successes under his leadership, including being the first telecommunications company in South Asia to launch the Dual Carrier (DC) HSPA+ broadband service. He also served as the Vice President of the American Chamber of Commerce during the years 2002 and 2003. He is a respected alumnus of Sri Lanka’s University of Moratuwa - Faculty of Engineering, where he graduated with a 1st Class degree in Electronics and Telecommunications.
OUR TEAM - ACADEMIC TEAM Ms. Siyumie Wijesinghe Lecturer Ms. Ovini Seneviratne Lecturer Ms. Keerthiga Rajenthiram Assistant Lecturer Ms. Sabishra Gogeshwaran Instructor Dr. Yasas Jayaweera Head Academic / Senior Lecturer - Higher Grade Mr. Jeewan Chinthaka Lecturer Ms. Ruchira Manikkarachchi Assistant Lecturer Mr. Roshan Jayawardena Assistant Lecturer Mr. Vibavi Arttigala Assistant Lecturer Ms. Dilushinie Fernando Assistant Lecturer Ms. Nideshika Ellepola Assistant Lecturer Senior Lecturer (Higher Grade) / Coordinator – Post Grad Programmes Professor Indra Dayawansa Dr. Gayana Fernando Senior Lecturer (Higher Grade) Dr. Nipunika Vithana Professor – EE AnnualReport2020 ‘21 AnnualReport2020 ‘21 0817 Lecturer Mr. Chandika Kiriella
Ms. Uyani Jayaratne Executive - Student affairs Mr. Sumudu Sadees Executive - Technical Mr. Geethma Samaraweera Executive – ITSD OUR TEAM - NON ACADEMIC TEAM Mr. Shanuka Kesara Executive - Marketing Ms. Chintha Ediriweera Head Administration Mr. Ravin Dharmaratne Accountant Mr. Amila Kularatne Manager-Marketing Ms. Nimalka Munasinghe Assistant Manager Student Affairs Mr. Sohan Perera Executive – Finance Mr. Mavintha Dissanayake Executive – Marketing Mr. Janith Madushan Executive - Administration and Procurement AnnualReport2020 ‘21 18
EVENTS Carnival Games 2019 Annual Research Symposium AnnualReport2020 ‘21 19 Welcome Session 2021 ( Inauguration) Curtin Virtual open Day 2021
Healthy Day AnnualReport2020 ‘21 20 Welcome Session – UOB top up degree programs 2021 Annual Research Symposium of SLIIT Academy
AnnualReport2020 ‘21 21 Nature of the business of the Company The Company is engaged in carrying on the business of conducting education programmes leading to Degrees, Diplomas and Certificates of SLIIT, SLIIT Academy and foreign universities. Performance of the Company The Company’s performance during the year and the financial results thereof are contained in the Financial Statements attached hereto and forms part of this Annual Report. Changes in the accounting policies The accounting policies adopted by the Company have been constantly applied without any change from previous years. Entries made in the Interests Register Entries made in the interests register are disclosed under the heading “Transactions with Related Parties” reflected in note 14 and 21 in the Financial Statements. Remuneration and other benefits of Directors The remuneration and other benefits were paid to the Directors during the financial year ended 31st March 2021 are given in note 7 in the Financial Statements. Donations There were no donations made by the Company during the financial year ended 31st March 2021. Directors of the Company The Directors of the Company during the financial year ended 31st March 2021 were. Prof. L. L. Ratnayake Prof. Lalith Gamage Prof. (Mrs.) Mahesha Kapurubandara Mr. S.A. Wickremanayake Mr. D. R. Ratnayaka Audit Fees The fee payable to the Auditors of the Company, M/s. Dayananda Samarawickrama & Company, Chartered Accountants of No. 20/26, Station Lane, Nugegoda is given in note 7 of the Financial Statements. Auditors Interest in the Company other than as Auditor The Auditors of the Company M/s. Dayananda Samarawickrama & Company, Chartered Accountants have no other relationship with or interest in the Company. DIRECTORS REPORT Colombo on this 30th day of August 2021
AnnualReport2020 ‘21 22 INDEPENDENT AUDITOR’S REPORT
AnnualReport2020 ‘21 23 INDEPENDENT AUDITOR’S REPORT Contd.,
STATEMENT OF COMPREHENSIVE INCOME Note 2020/2021 2019/2020 Rs. Cts Rs. Cts Revenue 04 353,953,400.95 324,460,611.17 Direct Cost 05 (39,589,509.07) (42,721,370.79) Gross Profit 314,363,891.88 281,739,240.38 Other Income 06 - 162,495.95 Administration & Other Operating Expenses 07 (131,415,830.39) (148,148,676.71) Earnings Before Interest & Tax 182,948,061.49 133,753,059.62 Net Financial Income 08 27,525,326.70 25,001,013.58 Net Profit Before Taxation 210,473,388.20 158,754,073.20 Income Tax Expenses 09 (32,191,281.66) (22,083,916.17) Net Profit for the Year 178,282,106.54 136,670,157.04 Other Comprehensive Income for the year Defined Benefit Plan Actuarial Gains/ (Losses) 17 (245,973.50) (1,775,808.74) Total Other Comprehensive Income for the year (245,973.50) (1,775,808.74) fi ff ffl ffifl ffi ffl ffi ffi fl ffi ffl ffi Total Comprehensive Income for the year 178,036,133.04 134,894,348.30 Earnings Per Share 10 17,828.21 13,667.02 The Significant Accounting Policies and Notes form an Integral part of these Financial Statements. Figures in brackets indicate deductions. AnnualReport2020 ‘21 24
AnnualReport2020 ‘21 25 STATEMENT OF FINANCIAL POSITION As at 31.03.2021 31.03.2020 ASSETS Note Rs. Cts Rs. Cts Non Current Assets Property, Plant & Equipment 11 6,849,520.35 8,388,904.99 Current Assets Trade & Other Receivables 12 6,192,716.97 7,518,611.37 Investments 13 356,175,148.06 257,146,520.10 Amount Due From Related Parties 14 11,979,109.67 51,856,304.93 Cash & Cash Equivalents 15 285,086,607.67 134,202,966.93 659,433,582.37 450,724,403.33 Total Assets 666,283,102.73 459,113,308.32 EQUITY & LIABILITIES Capital & Reserves Stated Capital 16 100,000.00 100,000.00 Retained Earnings 507,549,137.30 329,267,030.76 Other Reserves (3,895,799.93) (3,649,826.43) Total Equity 503,753,337.37 325,717,204.33 Non - Current Liabilities Employee Benefits 17 16,424,565.73 13,321,150.03 Differed Tax 18 (2,520,394.71) (2,137,787.00) 13,904,171.02 11,183,363.03 Current Liabilities Course Fees Received in Advance 76,582,480.00 68,385,012.75 Accrued Expenses & Other Payables 19 72,043,114.34 53,827,728.22 148,625,594.34 122,212,740.97 Total Equity & Liabilities 666,283,102.73 459,113,308.32 ……………………. Accountant …………………. …………………………. Chairman Managing Director Colombo 30th August 2021 The Board of Directors is responsible for the preparation and presentation of these Financial Statements. These Financial Statements are in Compliance with the requirements of the Companies Act No.07 of 2007. The Significant Accounting Policies and Notes form an Integral part of these Financial Statements. Figures in brackets indicate deductions.
AnnualReport2020 ‘21 26 STATEMENT OF CHANGES IN EQUITY fi ff ffl ffifl ffi ffl ffi ffi fl ffi ffl ffi Stated Retained Other Total Capital Earnings Reserves Equity Rs. Cts Rs. Cts Rs. Cts Rs. Cts Balance as at 1st April 2019 100,000.00 192,596,873.72 (1,874,017.69) 190,822,856.03 Net Profit for the year - 136,670,157.04 - 136,670,157.04 Other Comprehensive Income - - (1,775,808.74) (1,775,808.74) Balance as at 31st March 2020 100,000.00 329,267,030.76 (3,649,826.43) 325,717,204.33 Balance as at 1st April 2020 100,000.00 329,267,030.76 (3,649,826.43) 325,717,204.33 Net Profit for the year - 178,282,106.54 - 178,282,106.54 Other Comprehensive Income - - (245,973.50) (245,973.50) Balance as at 31st March 2021 100,000.00 507,549,137.30 (3,895,799.93) 503,753,337.37 The Significant Accounting Policies and Notes form an Integral part of these Financial Statements. Figures in brackets indicate deductions.
AnnualReport2020 ‘21 27 fi ff ffl ffifl ffi ffl ffi ffi fl ffi ffl ffi 2020/2021 2019/2020 Rs. Cts. Rs. Cts. Cash Flow from Operating Activities Net Profit Before Taxation 210,473,388.20 158,754,073.20 Adjustments for Interest Income (27,525,326.70) (25,001,013.58) Depreciation 3,253,769.80 4,907,768.20 Provision for Retiring Gratuity 3,513,442.20 2,856,651.88 Operating Profit Before Changes in Working Capital 189,715,273.49 141,517,479.70 (Increase) / Decrease in Trade Debtors & Other Receivables 42,475.45 436,071.14 (Increase) / Decrease in Amounts Due from Related Parties 39,877,195.26 (26,775,243.96) Increase / (Decrease) in Course Fees received in Advance 8,197,467.25 4,791,925.92 Increase / (Decrease) in Accrued Expenses & Other Payables 7,283,408.60 8,451,180.85 Cash Generated from Operations 245,115,820.05 128,421,413.65 Income Tax & WHT, ESC Paid (21,641,911.84) (15,230,853.00) Gratuity Paid (656,000.00) - Net Cash Flow from / (Used in) Operating Activities 222,817,908.21 113,190,560.65 Cash Flow from Investing Activities Interest Received 28,808,745.65 23,612,028.35 Acquisition of Property, Plant & Equipment (1,714,385.16) (8,117,159.71) Investment in Fixed Deposits (99,028,627.96) (61,373,920.61) Net Cash Flow / (Used in) Investing Activities (71,934,267.47) (45,879,051.97) Cash Flow from Financing Activities Dividend Paid - - Net Cash Flow / (Used in) Financing Activities - - Net Increase / (Decrease) in Cash & Cash Equivalents 150,883,640.74 67,311,508.68 Cash & Cash Equivalent at the beginning of the year 134,202,966.93 66,891,458.25 Cash & Cash Equivalent at the end of the year (Note A) 285,086,607.67 134,202,966.93 Note - A As at As at Analysis of Cash & Cash Equivalents 31.03.2021 31.03.2020 Rs. Cts. Rs. Cts. Sampath Bank-013410001688 25,000.00 25,000.00 Sampath Bank-013410001750 77,464,154.55 16,136,714.76 Sampath Bank -Hit Saver A/C -113414001132 50,000.00 50,000.00 Bank of Ceylon- 0001630619 84,449,617.64 29,594,099.73 Bank of Ceylon-Fund Management A/C 76765387 51,251,105.67 52,308,866.77 Nations Trust Bank C/AC 100380005430 19,294,013.50 2,072,315.00 Nations Trust Bank S/AC 200380067062 35,040,353.52 33,994,225.67 Hatton National Bank C/ AC 701010012815 17,462,362.79 - Petty Cash 50,000.00 21,745.00 285,086,607.67 134,202,966.93 - The Significant Accounting Policies and Notes form an Integral part of these Financial Statements. Figures in brackets indicate deductions. STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS 1. CORPORATE INFORMATION 1.1 Reporting Entity SLIIT Academy (Pvt) Ltd. is a Limited Liability company incorporated and domiciled in Sri Lanka. The registered office of the company is located at 16th Floor, BOC Merchant Tower, No. 28, St. Michael's Road, Colombo 03. 1.2 Principal Activities and Nature of Operations Provide educational services in information technology, business and engineering leading to degrees, diplomas and certificates and foundation programs to include a wider group of A/L and O/L completed students. At Present principal place of Business is located at 13th Floor, BOC Merchant Tower, No. 28, St. Michael's Road, Colombo 03. 1.3 Parent Entity In the opinion of Directors, the Company’s immediate and ultimate parent undertaking and controlling party is Sri Lanka Institute of Information Technology (Guarantee) Limited. 2. BASIS OF PREPARTION 2.1 Statement of Compliance The Financial Statements of the Company comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Statement of Cash Flows, together with the Notes to the Financial Statements. These Statements are prepared in accordance with the Sri Lanka Accounting Standards (LKASs / SLFRSs) promulgated by the Institute of Chartered Accountants of Sri Lanka (CASL) and with the requirement of Companies Act No. 7 of 2007. The Financial Statements were authorized for issue by the Board of Directors on 24th August 2021. 2.2. Basis of Measurement The Financial Statements have been prepared on the historical cost basis except, • Retirement benefits obligation recognized as per LKAS 19 /Employee benefits. 2.3 Going Concern The Board is satisfied that the Company has adequate resources to continue its operations in the foreseeable future. Therefore, continue to adopt the going-concern basis in preparing these Financial Statements. 2.4 Materiality and Aggregation Each material class of similar items is presented separately in the Financial Statements. Items of dissimilar nature or function are presented separately unless they are immaterial. 2.5 Functional and Presentation Currency The Financial Statements are presented in Sri Lankan Rupees, which is the Company’s functional currency. All financial information presented in Sri Lankan Rupees. 2.6 Comparative Information Where necessary, certain comparative amounts have been reclassified to conform to the current year’s presentation. 2.7 Events After the Reporting Period All material events after the reporting date have been considered and appropriate adjustments/ disclosures have been made in Note No. 24 to the Financial Statements, where necessary. 2.8 Use of Estimates & Judgments The preparation of Financial Statements in conformity with Sri Lanka Accounting Standards (SLFRSs/LKASs) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Judgments and estimates are based on historical experience and other factors including expectations that are believed to be reasonable under the circumstances. Hence actual experience and results may differ from these judgments and estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. AnnualReport2020 ‘21 28
NOTES TO THE FINANCIAL STATEMENTS Contd., Critical judgments in applying accounting policies that have the most significant effects on the amounts recognized in the Financial Statements and information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in future periods are included in the following notes. Note 17- Measurement of Defined Benefit Obligation. Note 18 - Deferred Taxation 3. SIGNIFICANT ACCOUNTING POLICIES 3.1 Principal Accounting Policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 3.2 Foreign Currency Conversion Foreign Currency Transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from settlement of such transactions and from the conversion of monitory assets and liabilities denominated in foreign currencies are recognized in the statement of comprehensive income. Such balances are converted at yearend exchange rates. 3.3 Assets and Basis of Valuation Assets classified as current assets in the Statement of Financial Position are cash, bank balances and those which are expected to be realized in cash during the normal operating cycle of the Company’s business, or within one year from the reporting date, whichever is shorter. Assets other than current assets are those which the Company intends to hold beyond a period of one year from the reporting date. 3.3.1 Property, Plant and Equipment A. Recognition and Measurement Property, Plant and Equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost for this purpose includes the cost of acquisition and any directly attributable expenditure incurred to bring the asset to its working condition or intended use. The cost of self-constructed assets includes the cost of materials, direct labour, and any other costs directly attributable to bringing the asset to the working condition or its intended use. This also includes cost of dismantling and removing the existing asset. Capital Work-in-progress is transferred to the respective asset accounts at the time of first utilization or at the time the asset is commissioned. However No Capital Work in Progress exists as at the reporting date. When property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined as different between the proceeds from disposal and the carrying amount of property, plant and equipment, and are recognized under other income in the statement of comprehensive income. B. Subsequent Expenditure Expenditure incurred on existing property, plant and equipment are capitalized when it is expected that such expenses would result in future economic benefits in excess of those originally assessed and its cost can be measured reliably. The carrying amount of the replaced asset is derecognized. The costs of the day to day servicing/ maintenance of property, plant and equipment are recognized in Comprehensive Income Statement as incurred. When a revalued asset is disposed, the amount included in the revaluation surplus reserve is transferred to retained earnings. C. De-recognition The carrying amount of an item of property, plant and equipment is de-recognized on disposal or when no future economic benefits are expected from its use or disposal. Gains or losses on de-recognition are recognized under other income in statement of comprehensive income. AnnualReport2020 ‘21 29
D. Borrowing Cost Borrowing costs that are directly attributable to acquisition, construction or production of a qualifying asset, which takes a substantial period of time to get ready for its intended use or sale, are capitalized as a part of the asset. The amounts of the borrowing costs which are eligible for capitalization are determined in accordance with the in LKAS 23 - Borrowing Costs. Borrowing costs that are not capitalized are recognized as expenses in the period in which they are incurred and charged to the Statement of Comprehensive Income. E. Depreciation Depreciation is recognized in statement of comprehensive income on a straight line basis over the estimated useful life of each part of an item of property & plant & equipment. The principal annual rates used for this purpose, which are consistent with that of the preceding years, are Depreciation of an asset begins when it is available for use & ceases at the earlier of the date that the Asset is classifies as held for sale & the date that the asset is derecognized. Lease premises assets are depreciated over the assets estimated useful life & unexpired lease period, whichever is lesser. F. Impairment of Property, Plant & Equipment The carrying value of Property, Plant & Equipment is reviewed for impairment either annually or when events or changes in circumstances occur where the indicated carrying value may not be recoverable. If any such indication exists and where the carrying value exceeds the estimated recoverable amount, the assets are written down to their recoverable amount. Impairment losses are recognized in the statement of comprehensive income unless it reverses a previous revaluation surplus for the same assets. 3.3.2 Financial Instruments 3.3.2.1 Financial Assets 3.3.2.1.1 Initial Recognition and Measurement Financial assets within the scope of LKAS 39 are classified as financial assets at fair -value through profit or loss, loans and receivables, held-to-maturity investments or available-forsale financial assets, as appropriate. The Company determines the classification of its financial assets at initial recognition. All financial assets are recognized initially at fair value plus, in the case of assets not at fair value through profit or loss, directly attributable transaction costs. The Company’s financial assets include cash and short term deposits, trade and other receivables and loans and receivables. 3.3.2.1.2 Subsequent Measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets at fair value through profit or loss A financial asset at fair value through profit or loss includes financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets at fair value through profit and loss are carried in the Statement of Financial Position at fair value with changes in fair value recognized in finance income or finance costs in the Statement of Comprehensive Income. The Company did not hold any financial asset designated as financial asset at fair value through profit or loss during the year ended March 31, 2021. AnnualReport2020 ‘21 30 NOTES TO THE FINANCIAL STATEMENTS Contd., Computers Hardware& Software 25% Furniture & Fittings 20% Equipment 20% Books 33.33% Lease Premises Assets 33.33% Graduation Kits 20%
Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate method (EIR), less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the Statement of Comprehensive Income. The losses arising from impairment are recognized in the Statement of Comprehensive Income in finance costs. Loans and receivables held by the Company comprise of trade receivables, deposits, advances and other receivables and cash and cash equivalents. Held-to-Maturity Investments Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to-maturity when the Company has the positive intention and ability to hold them to maturity. After initial measurement, held-to maturity investments are measured at amortized cost using the effective interest method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the Statement of Comprehensive Income. The losses arising from impairment are recognized in the Statement of Comprehensive income in finance costs. Available-for-Sale Financial Investments Available-for-sale financial investments include equity and debt securities. Equity investments classified as available-for-sale are those, which are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those which are intended to be held for an indefinite period of time and which may be sold in response to needs for liquidity or in response to changes in the market conditions. After initial measurement, available-for-sale financial investments are subsequently measured at fair value with unrealized gains or losses recognized as other comprehensive income in the available-for-sale reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in other operating income, or determined to be impaired, at which time the cumulative loss is reclassified to the Statement of Comprehensive Income in finance costs and removed from the available-for-sale reserve. Interest income on available-for-sale debt securities is calculated using the effective interest method and is recognized in profit or loss. 3.3.2.1.3 De-Recognition A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is de-recognized when: • The rights to receive cash flows from the asset have expired • The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. 3.3.2.1.4 Impairment of FinancialAssets The Company assesses at each reporting date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. The Company did not recognize any impairment losses in respect of financial assets for the year ended March 31, 2020 and March 31, 2021 AnnualReport2020 ‘21 31 NOTES TO THE FINANCIAL STATEMENTS Contd.,
NOTES TO THE FINANCIAL STATEMENTS Contd., 3.3.2.2 Financial Liabilities 3.3.2.2.1 Initial Recognition and Measurement Financial liabilities within the scope of LKAS 39 are classified as financial liabilities at fair value through profit or loss or loans and borrowings, as appropriate. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value plus, in the case of loans and borrowings, transaction costs that are directly attributable to the acquisition or issue of such financial liability. The Company’s financial liabilities include trade and other payables, bank overdrafts, loans and borrowings Subsequent Measurement Financial liabilities at fair value through profit or loss financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. Gains or losses on liabilities held for trading are recognized in the Statement of Comprehensive Income. The Company has not designated any financial liabilities upon initial recognition as at fair value through profit or loss. Loans and borrowings after initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in the Statement of Comprehensive Income when the liabilities are derecognized as well as through the effective interest rate method (EIR) amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance costs in the Statement of Comprehensive Income. 3.3.2.2.2 De-recognition A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. 3.3.2.3 Offsetting of Financial Instruments Financial assets and financial liabilities are offset if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. 3.3.2.4 Financial Risk Management Credit Risk Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and related parties. The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments. Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Interest Rate Risk The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. 3.3.3 Trade & Other Receivables Company recognizes trade receivables as financial assets in its statement of financial position when, and only when, the Company has a contractual right to receive cash or another financial asset. Trade receivables are amounts due from customers for commodities sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. AnnualReport2020 ‘21 32
NOTES TO THE FINANCIAL STATEMENTS Contd., Trade receivables are recognized initially at fair value. After initial the Company measures trade receivables at amortized cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables. 3.3.4 Cash & Cash Equivalents Cash and Cash equivalents are defined as Cash in Hand, Demand Deposits and short term highly liquid investments, readily convertible to known amounts of cash and subject to insignificant risk of changes in value. For the purpose of statement of cash flows, Cash and Cash Equivalents consist of Cash in hand and Deposits in banks. 3.4 Liabilities and Provisions 3.4.1 Liabilities Liabilities classified as current liabilities on the statement of financial position are those which fall due for payment on demand or within one year from the reporting date. Noncurrent liabilities are those balances that fall due for payment later than one year from the reporting date. All known liabilities have been accounted for in preparing the financial statements. 3.4.2 Provisions Provisions are recognized when the company has a present obligation (Legal or Constructive) as a result of a past event, where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 3.5 Stated capital The stated capital includes the total of all amounts received by the Company or due and payable to the Company in respect of the issue of Shares and in respect of calls on Shares. 3.6 Retirement Benefit Obligations (a) Defined benefit plan - retiring gratuity Defined benefit plans define an amount of benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The Company has adopted the benefit plan as required under the Payment of Gratuity Act No. 12 of 1983 for all eligible employees. The benefit plan is partially funded. Provision for gratuity is made by the Company taking account of the recommendation of an Institute of Chartered Accountants of Sri Lanka. The liability recognized in the statement of financial position in respect of defined benefit plans is the present value of the defined benefit obligation at the reporting date together with adjustments for unrecognized past service cost. The defined benefit obligation is calculated annually by the Company using the projected unit credit method prescribed in Sri Lanka Accounting Standard 19; Employee Benefits. The present value of the defined benefit obligation is determined by discounting the estimated future cash flows using the interest rates of Government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to statement of comprehensive income in the period in which they arise. Past service costs are recognized immediately in statement of comprehensive income, unless the changes to the plan are conditional on the employees remaining in service for a specific period of time (the vesting period). In this case, the past service costs are amortized on a straight-line basis over the vesting period. Under the Payment of Gratuity Act No.12 of 1983, the liability to an employee arises only on completion of 5 years of continued service. AnnualReport2020 ‘21 33
NOTES TO THE FINANCIAL STATEMENTS Contd., (b) Defined Contribution Plans – EPF & ETF All employees are eligible for Employees’ Provident Fund Contribution and Employees’ Trust Fund Contribution in line with the respective statutes and regulations. The company contributes 12% and 3% of gross emoluments to Employees’ Provident Fund and Employees’ Trust Fund respectively. Obligations for contributions to provident & trust funds covering all employees are recognized as an expense in the statement of comprehensive income. 3.7 Trade Payables Company recognizes trade payables as financial liabilities in its statement of financial position when, and only when, the Company has a contractual obligation to deliver cash or another financial asset. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. 3.8 Statement of Comprehensive Income 3.8.1 Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable net of trade discounts and sales taxes. The following specific criterions are used for the purpose of recognition. (a) Rendering of Services Revenue from rendering of services is recognized in the accounting period in which theservices are rendered or performed. (b) Finance Income Finance income comprises interest income on funds invested and staff loans, and changes in the fair value of financial assets at fair value through profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest method. (c) Dividends Dividend income is recognized when the Shareholder’s right to receive the payment is established. (d) Gains or Losses on Disposal Gains and losses on disposal of an item of Property, Plant & Equipment are determined by comparing the net sales proceeds with the carrying amounts of Property, Plant & Equipment and are recognized within the ‘other income’ in the Statement of Comprehensive Income. (d) Others Other income is recognized on an accrual basis. 3.8.2 Expenditure Recognition Expenses are recognized in the statement of comprehensive income on the basis of direct association between the cost incurred and the earning of specific items of income. All expenditure incurred in the running of the business and in maintaining the property, plant and equipment in a state of efficiency has been charged to the revenue in arriving at the Profit for the year. Finance Expenses Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the fair value of financial assets at fair value through profit or loss, impairment losses recognized on financial assets, borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss using the effective interest method. For the purpose of presentation of statement of comprehensive income the directors are of the opinion that the function of expenses method, present fairly the elements of the enterprise performance, hence such presentation method is adopted. AnnualReport2020 ‘21 34
NOTES TO THE FINANCIAL STATEMENTS Contd., Tax Expense Income Tax expense comprises current and deferred tax. Income tax expense is recognized in Statement of Comprehensive Income except to the extent that it relates to items recognized directly in equity, when it is recognized in equity. A. Current Taxes Current tax expense for the current and comparative periods are measured at the amount paid or expected to be payable to the Commissioner General of Inland Revenue on taxable income for the respective year of assessment computed in accordance with the provisions of the Inland Revenue Act No 24 of 2017. B. Deferred Taxation Deferred taxation is recognized using the Balance Sheet liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will notreverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary ifferences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred tax assets and deferred tax liabilities are offset, if legally enforceable right exists to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same taxable entity and the same taxation authority. The relevant details are disclosed in the Notes 18 to the Financial Statements. 3.9 Statement of Cash Flows The statement of cash flows has been prepared using the “Indirect Method”. 3.10 Related Party Transactions Disclosure has been made in respect of the transactions in which one party has the ability to control or exercise significant influence over the financial and operating policies/decisions of the other, irrespective of whether a price is being charged or not. A detailed Related Party Transactions analysis is presented in Note 20 & 21. 3.11 Contingencies & Commitments Contingencies are assets or obligations that may arise from a past event & would be confirmed only on the occurrence or non occurrence of uncertain future events, which are beyond the company’s control. There were no contingencies or capital commitments as at 31st March 2021. 3.12 Earnings per Share The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares AnnualReport2020 ‘21 35
AnnualReport2020 ‘21 36 NOTE 04 - REVENUE 2020/2021 2019/2020 Rs. Cts Rs. Cts Academic Income from Study Courses 350,867,435.65 317,395,498.17 Academic Income from Foreign Universities - 3,689,506.00 Scholarship Income 1,000,000.00 1,470,000.00 Application Fees/ Convocation Fees/Library Fines 1,302,015.30 992,482.00 PDP Programme Income 783,950.00 913,125.00 353,953,400.95 324,460,611.17 NOTE 05 - DIRECT COST Rs. Cts Rs. Cts Visiting Lecturers Fees 6,016,515.75 4,926,872.50 Professional Fees / Coordination Fees 5,813,460.65 8,088,093.22 Salaries & Allowances - Academic Staff 22,969,317.66 22,878,143.67 EPF - Academic Staff 2,843,300.01 2,617,100.00 ETF - Academic Staff 710,825.00 654,275.00 Student Scholarship Expenses 1,000,000.00 1,470,000.00 Course Materials 236,090.00 2,014,142.40 Lab Consumables - 72,744.00 39,589,509.07 42,721,370.79 NOTE 06 - OTHER INCOME Rs. Cts Rs. Cts Exchange Gain - 162,495.95 - 162,495.95 NOTES TO THE FINANCIAL STATEMENTS Contd.,
AnnualReport2020 ‘21 37 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 07 - ADMINISTRATION & OTHER OPERATING EXPENSES 2020/2021 2019/2020 Rs. Cts Rs. Cts Directors' Emoluments 23,547,868.00 22,681,635.12 Salaries & Allowances 15,098,126.96 15,163,852.47 EPF 3,779,896.00 3,456,294.00 ETF 944,974.00 864,073.50 Nation Building Tax - 4,089,215.19 Gratuity Provision 3,513,442.20 2,856,651.88 Depreciation 3,253,769.80 4,907,768.20 Profit Based Incentives 23,885,850.00 18,410,207.00 Staff Welfare 180,338.60 1,201,223.52 Audit Fees 119,000.00 108,000.00 Secretarial Fees & Expenses 66,609.60 66,480.00 Subscriptions 653,657.24 490,480.04 Bank Charges 183,475.86 227,465.25 Lease Rent 36,368,567.33 39,091,699.24 Advertising & Publicity 10,291,610.18 17,120,900.73 Electricity 2,733,942.83 7,280,149.70 Building Maintenance 44,649.66 221,597.42 Travelling & Transport 91,362.00 128,783.00 Communication & Postage 1,861,961.13 2,008,037.64 Water 259,923.17 381,813.48 Legal Fees - 10,500.00 Refreshment for Events 23,620.00 118,627.00 Printing & Stationary 542,125.20 1,565,636.87 Public Liability Insurance 560,242.03 604,352.48 Office Requisites & Expenditure 290,741.00 67,388.00 Janitorial Services 317,073.60 1,196,030.00 Courier Charges - 119,850.84 Partnership Development - 172,556.00 Consultation Fees 720,000.00 1,080,000.00 Recruitment Advertisement 18,200.00 19,200.00 Student ID 52,600.00 82,030.00 Student Welfare - 232,199.00 Convocation Expenses 34,197.50 (45,423.53) Casual Wages & Labour Charges 300,750.00 545,875.00 Exchange Loss - 1,865.96 Office Equipment Maintenance 479,810.08 329,180.00 Staff Training 12,000.00 247,600.00 Professional Fees 237,845.45 195,510.71 Stamp Fees 50,925.00 763,997.00 Research & Development 81,148.89 85,374.00 IT Services Maintaining Cost 815,527.08 - 131,415,830.39 148,148,676.71
AnnualReport2020 ‘21 38 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 08 - NET FINANCIAL INCOME 2020/2021 2019/2020 Rs. Cts. Rs. Cts. Interest Income from Fixed Deposits 23,171,373.48 21,384,814.09 Interest on Fund Management A/C BOC 1,182,613.33 2,556,584.00 Staff Loan Interest 2,176.64 10,138.54 Interest Income from Savings Accounts 3,169,163.25 1,049,476.95 27,525,326.70 25,001,013.58 NOTE 09 - INCOME TAX EXPENSES 09.1 Current Taxes 2020/2021 2019/2020 Rs. Cts Rs. Cts Current Income Tax Expense ( Note 09.2 ) 32,573,889.37 22,874,247.17 Deferred Taxation ( Note 09.3 & 18.1 ) (382,607.71) (790,331.00) 32,191,281.66 22,083,916.17 09.2 Reconciliation between Accounting Profit to Income Tax 2020/2021 2019/2020 Rs. Cts Rs. Cts For the year ended 31st March Accounting Profit Before Taxation 210,473,388.20 158,754,073.20 Income from other sources & exempt Income (27,523,150.06) (24,990,875.04) 182,950,238.13 133,763,198.16 Aggregate Disallowable Items 6,818,137.00 8,528,417.08 Aggregate Allowable Items (4,280,279.75) (3,895,010.48) Adjusted Profit from the Business 185,488,095.38 138,396,604.76 Income from Other Sources - ( Interest Income ) 27,523,150.06 24,990,875.00 Assessable Income 213,011,245.44 163,387,479.76 Taxable Income 213,011,245.44 163,387,479.76 Tax on Ordinary Business 14% 25,968,333.35 22,874,247.17 Tax on Investment Income 24% 6,605,556.02 - Income Tax on Profits for the year 32,573,889.37 22,874,247.17 The Company in terms of the Inland Revenue Act No 24 of 2017 as amended by the subsequent Gazette Notifications, Profits & Income from which engage providing Educational Services is liable at 14% . Gains arising on Investment Income is liable at 24%.
AnnualReport2020 ‘21 39 NOTES TO THE FINANCIAL STATEMENTS Contd., 09.3 Deferred Tax 2020/2021 2019/2020 Deferred Tax Expense / ( Income ) arises from Rs. Cts Rs. Cts Accelerated Depreciation for Tax Purpose 51,870.49 (141,786.11) Employee Benefit Liability (434,478.20) (648,544.49) (382,607.71) (790,330.60) NOTE 10 - EARNINGS PER SHARE 10.01 Basic Earnings per Share 2020/2021 2019/2020 Rs. Cts Rs. Cts Profit attributable to Ordinary Shareholders (Rs.Cts) 178,282,106.54 136,670,157.04 Weighted average number of ordinary shares 10,000.00 10,000.00 Earnings Per Shares (Rs. Cts.) 17,828.21 13,667.02 10.02 Diluted Earnings per Share Provision has been made for deferred taxation under the liability method in respect of temporary differences arising from carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purpose as described in Note 18. Difference arising from the deferred tax liability has been recognized in the Financial Statements during the year. The calculation of the earnings per share is based on Profit attributable to ordinary shareholders for the year divided by the weighted average number of ordinary shares outstanding during the year. There were no potential dilutive ordinary shares outstanding at any time during the year ended 31st March 2021. Therefore, Diluted Earnings per Share is same as Basic Earnings per Share reported above.
AnnualReport2020 ‘21 40 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 11 - PROPERTY, PLANT & EQUIPMENT Computer Software/ Furniture& Equipment Books Lease Premises Graduation Total Hardware & Software Quick Book Fittings Assets Kits Rs. Cts. Rs. Cts. Rs. Cts. Rs. Cts. Rs. Cts. Rs. Cts. Rs. Cts. Rs. Cts. 25% 25% 20% 20% 33.33% 33.33% 20% Cost Balance as at 01st April 2020 28,946,857.40 284,108.00 14,264,260.19 3,870,828.21 2,454,327.99 1,719,585.00 638,235.93 52,178,202.72 Additions during the year 1,232,323.36 - 174,261.80 240,600.00 - 67,200.00 1,714,385.16 Disposals - - - - - - - - Balance as at 31st March 2021 30,179,180.76 284,108.00 14,438,521.99 4,111,428.21 2,454,327.99 1,719,585.00 705,435.93 53,892,587.88 Accumulated Depreciation Balance as at 01st April 2020 24,757,671.46 284,107.00 12,886,977.75 1,480,336.35 2,302,425.44 1,719,584.00 358,195.73 43,789,297.73 Charge for the year 1,381,433.28 932,415.63 742,791.50 65,522.20 131,607.19 3,253,769.80 Disposals - - - - - - - - Balance as at 31st March 2021 26,139,104.74 284,107.00 13,819,393.38 2,223,127.85 2,367,947.64 1,719,584.00 489,802.92 47,043,067.53 Carrying Value As at 31st March 2020 4,189,185.94 1.00 1,377,282.44 2,390,491.86 151,902.55 1.00 280,040.20 8,388,904.99 As at 31st March 2021 4,040,076.02 1.00 619,128.61 1,888,300.36 86,380.35 1.00 215,633.01 6 8, 49,520.35
AnnualReport2020 ‘21 41 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 12 - TRADE & OTHER RECEIVABLES 31.03.2021 31.03.2020 Rs. Cts Rs. Cts Interest Receivable 5,882,723.23 7,166,142.18 Refundable Deposit - American Premium (Pvt) Ltd 40,000.00 40,000.00 Prepayments - Firewall Protection 153,835.70 116,114.00 Prepaid Medical Insurance 42,445.62 46,916.18 Staff Loans 73,712.42 149,439.01 6,192,716.97 7,518,611.37 NOTE 13 - INVESTMENTS Rs. Cts Rs. Cts Fixed Deposits - BOC 255,551,924.90 164,512,221.68 Fixed Deposits - Sampath Bank 100,623,223.16 92,634,298.42 Fixed Deposits -NTB - - 356,175,148.06 257,146,520.10 NOTE 14 - AMOUNT DUE FROM RELATED PARTIES Rs. Cts Rs. Cts Sri Lanka Institute of Information Technology (Gte) Ltd. 11,979,109.67 51,856,304.93 11,979,109.67 51,856,304.93 NOTE 15 - CASH & CASH EQUIVALENTS Rs. Cts Rs. Cts Sampath Bank-013410001688 25,000.00 25,000.00 Sampath Bank-013410001750 77,464,154.55 16,136,714.76 Sampath Bank -Hit Saver A/C -113414001132 50,000.00 50,000.00 Bank of Ceylon- 0001630619 84,449,617.64 29,594,099.73 Bank of Ceylon-Fund Management A/C 76765387 51,251,105.67 52,308,866.77 Nations Trust Bank C/AC 100380005430 19,294,013.50 2,072,315.00 Nations Trust Bank S/AC 200380067062 35,040,353.52 33,994,225.67 Hatton National Bank C/ AC 701010012815 17,462,362.79 - Petty Cash 50,000.00 21,745.00 285,086,607.67 134,202,966.93 NOTE 16 - STATED CAPITAL Rs. Cts Rs. Cts 10,000 Ordinary Shares of Rs. 10/- each 100,000.00 100,000.00 100,000.00 100,000.00
AnnualReport2020 ‘21 42 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 17- EMPLOYEE BENEFITS 31.03.2021 31.03.2020 Rs. Cts Rs. Cts The amounts recognized in the statement of financial position are determined as follows: Present value of obligation 16,424,565.73 13,321,150.03 Liability in the Statement of Financial Position 16,424,565.73 13,321,150.03 The movement in the defined benefit obligation over the year is as follows: Rs. Cts Rs. Cts Balance at the beginning of the year 13,321,150.03 8,688,689.41 Current service cost 2,250,895.14 2,029,216.84 Interest cost 1,262,547.06 827,435.04 Actuarial loss /(gain) 245,973.50 1,775,808.74 17,080,565.73 13,321,150.03 Payments made during the year (656,000.00) - Balance as at the end of the year 16,424,565.73 13,321,150.03 The amounts recognized in the statement of comprehensive income are as follows: Rs. Cts Rs. Cts Current service cost 2,250,895.14 2,029,216.84 Interest cost 1,262,547.06 827,435.04 Total included in the Staff Cost 3,513,442.20 2,856,651.88 Actuarial loss / (gain) 245,973.50 1,775,808.74 Total included in Statement of Comprehensive Income 3,759,415.70 4,632,460.62 The key assumptions used by the management are as follows. 2020/2021 2019/2020 Rate of interest ( net of tax) 10.00% 10.00% Expected salary increment 9.00% 9.26% Staff turnover factor 10.00% 10.00% Retirement age Academic 65 Years 65 Years Non Academic 60 Years 60 Years The Company will continue in business as a going concern.
AnnualReport2020 ‘21 43 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 18 - DEFERRED TAX LIABILITIES / (ASSETS) 31.03.2021 31.03.2020 Rs. Cts Rs. Cts Balance at the beginning of the year (2,137,787.00) (1,347,456.00) ( Reversal ) / Charged during the year (382,607.71) (790,331.00) Balance at the end of the year (2,520,394.71) (2,137,787.00) 18.1 Recognized Deferred Tax Assets & Liabilities Taxable/ (Deductible) Temporary Differences: Rs. Cts Rs. Cts Property, Plant & Equipment (1,578,253.61) (1,948,761.00) Retirement Benefit Obligation (16,424,565.73) (13,321,150.03) (18,002,819.34) (15,269,911.03) Applicable Tax Rate 14% 14% Net Deferred Tax Liabilities (2,520,394.71) (2,137,786.66) Future Applicable Tax Rate Deferred Tax assets and liabilities are attributable to the following originations of temporary differences, The company recognized Deferred Tax Assets of Rs. 2,299,439/= (Rs. 2,202,592/= - 2019/20 ) as at the reporting date, as the management is confident that the Deferred Tax assets would be realized in the future due to the availability of Taxable Profits in the future. Moreover, Deferred Tax Liabilities recognized as at reporting date is Rs.220,955 (Rs. 64,805/= - 2019/20 ). Accordingly Net Deferred Tax Assets as at March 31st, 2021 is Rs.2,520,395/= ( Rs.2,137,787/= - 31.03.2020 ). As per the tax consultants' opinion, Profit derived by the Company from its normal course of business would be liable for Income Tax at the rate of 14%.
AnnualReport2020 ‘21 44 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 19 - ACCRUED EXPENSES & OTHER PAYABLES 31.03.2021 31.03.2020 Rs. Cts Rs. Cts Income Tax 21,358,268.31 10,426,290.78 Audit Fees 119,000.00 108,000.00 Stamp Fees 37,025.00 37,425.00 PAYE Tax 415,153.60 2,775,827.60 EPF 962,396.36 1,674,239.68 ETF 144,359.51 251,136.01 NBT (1.00) (1.00) Engenuity (Pvt) Ltd 61,713.36 - Management Systems (Pvt) Ltd 26,752.95 - Other Payables 935,780.80 5,653,694.97 Overtime 38,241.81 33,039.41 Telephone & Internet 184,098.25 152,518.84 LJMU- Engineering & PM 5,080,790.43 3,880,738.56 University of Bedfordshire UK 42,252,787.75 28,005,130.46 Janitorial Services 25,704.60 49,788.60 Refundable Library Deposits 151,500.00 172,500.00 Secretarial Fees Payable 60,000.00 60,000.00 Rent & Utilities Payable (BOC PDML) 189,542.61 547,399.31 72,043,114.34 53,827,728.22 NOTE 20 - DIRECTORS INTEREST IN CONTRACTS WITH THE COMPANY Prof. B.G.L.D. Kumara , Prof. L.L Rathnayake are Directors of the Company who are also Directors of Sri Lanka Institute of Information Technology (Guarantee) Ltd, with which the company has entered into business transactions in the normal course of business. Transactions with the above company are disclosed in Note 21.1
AnnualReport2020 ‘21 45 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 21 - RELATED PARTY DISCLOSURES fi ff fflffifl ffl fl fl ffl ffifl ffl fl ffi fl ffi ffifl ffl ffl ffi NOTE 21.1 - Transactions with Related Parties Name of the Company Relationship Nature of the Amount Transaction Received / ( Paid ) Rs. Cts Parent Company Payment of 25% Royalty contribution of BSc - IT 03rd Year Progarmme 9,150,596.00 NOTE 21.2 - Amount receivable from Related Parties NOTE 21.3- Key Management Compensations (i) Loans to the Directors (ii) Compensation paid to Key Management Personnel 2020/2021 2019/2020 Rs. Cts Rs. Cts Salaries and other Short Term Employee Benefits 23,547,868.00 22,681,635.12 (iii) Other Transactions with Key Management Personnel The amount receivable from above related party company as at 31st March 2021 is disclosed in Note 14. According to Sri Lanka Accounting Standards LKAS 24 - Related Party Disclosures, Key Management personnel, are those having authority and responsibility for planning directing and controlling the activities of the entity. Accordingly, Key management includes only the Board of Directors. No loans have been granted to the Directors of the Company. There were no other transactions with key Managerial Personnel other than those disclosed in Note 21.3 to these Financial Statements. Sri Lanka Institute of Information Technology (Gte) Ltd. (SLIIT)
AnnualReport2020 ‘21 46 NOTES TO THE FINANCIAL STATEMENTS Contd., NOTE 22- CONTINGENT LIABILITIES There were no Contingent Liabilities as at 31st March 2021. NOTE 23 - CAPITAL COMMITMENTS There were no Capital Commitments as at 31st March 2021. NOTE 24 - EVENTS AFTER THE REPORTING PERIOD NOTE 25 - FINANCIAL RISK MANAGEMENT Overview * Credit risk * Liquidity risk Risk Management Framework Credit Risk 31.03.2021 31.03.2020 Rs. Cts. Rs. Cts. Loans and Receivables Trade and Other Receivables 6,192,716.97 7,518,611.37 Investments 356,175,148.06 257,146,520.10 Amount Due From Related Parties 11,979,109.67 51,856,304.93 Cash and Cash Equivalents 285,086,607.67 134,202,966.93 659,433,582.37 450,724,403.33 Liquidity Risk 31.03.2021 31.03.2020 Rs. Cts. Rs. Cts. Non-Derivative Financial Liabilities Course Fees Received in Advance 76,582,480.00 68,385,012.75 Accrued Expenses & Other Payables 72,043,114.34 53,827,728.22 148,625,594.34 122,212,740.97 Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing this risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal or stressed conditions, without incurring unacceptable Losses or damage to the Company’s reputation. To measure and mitigate liquidity risk, the Company closely monitored its net operating cash flow, maintained a level of Cash and Cash equivalents and secured committed funding facilities from financial institutions. This note presents qualitative and quantitative information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and procedures for measuring and managing risk. There were no Material Events occurred after the Reporting Period that require adjustments to or disclose in the Financial Statements. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risk faced by the Company, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. Credit risk is the risk of financial Loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligation, and arises principally from the Company’s receivables from customers and investment securities. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was as follows, The Company has exposure to the following risks from its use of financial instruments:
AnnualReport2020 ‘21 47 NOTICE OF MEETING NOTICE IS HEREBY GIVEN that the Annual General Meeting of the SLIIT Academy (Pvt) Ltd will be held on Tuesday, 21 st September 2021 at 10.30 a.m. via Zoom conferencing. BY ORDER OF THE BOARD OF DIRECTORS Hasitha Kangara Secretary SLIIT ACADEMY (PVT) LTD Colombo on this 30 th day of August 2021. Note:- Any member entitled to attend and vote is entitled to appoint a proxy or proxies in his/her stead. A form of proxy accompanies this notice. A proxy need not be a member. Instruments appointing proxies must be lodged with the company not less than 48 hours before the meeting. Receive and consider the Annual Report of the Company for the financial year ended 31 st March 2021, together with the Financial Statements and the Report of the Auditors thereon. Re-appoint Messrs. Dayananda Samarawickrama & Company Chartered Accountants, as the Auditors of the Company, to hold office from the conclusion of this meeting until the conclusion of the next Annual General Meeting, and to audit the Financial Statements of the Company for the accounting period next after the balance sheet date for which Financial Statements were audited and, to authorise the Directors to fix their remuneration “IT IS HEREBY RESOLVED that the age limit referred to in section 210 of the Companies Act No.07 of 2007 shall not apply to Prof. L.L. Ratnayake who has reached the age of 72 years prior to this Annual General Meeting and that he be reappointed as a director of the Company”. Propose the following resolution as an ordinary resolution for the reappointment of Prof. L.L. Ratnayake who has reached the age of 72 years. (a) 2. 1. 3. (b) (c) AGENDA
AnnualReport2020 ‘21 48 FROM OF PROXY I/We ………………………………… of …………………………. being a shareholder/s of SLIIT Academy (Pvt) Ltd hereby appoint…………………………………. as my/our proxy to speak/vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be held on the 21 st of September 2021 at 10.30 a.m., and at any adjournment thereof and at every poll which may be taken in consequence thereof. As witness I/We set my/our hand this ........... day of ........….. 2021. Signature: Note:- Delete what is inapplicable. INSTRUCTIONS AS TO COMPLETION The Instrument appointing a proxy may be by writing under the hand of the Appointor or of its Attorney duly authorised in writing or if such Appointor is a corporation under its common seal or the hand of its Attorney or duly authorised person. 1. The Instrument appointing a proxy and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy of that power of attorney or other authority will have to be deposited at the registered office of the Company not less than 48 hours before the time appointed for the holding of the meeting. 2.