201 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 2.3.1.3.2 Financial assets at amortized cost Financial assets at amortized cost comprise investments in fixed deposits and capital savings accounts. These investments are initially recognized at transaction price and subsequently measured at amortized cost using the effective interest rate (EIR) method less impairment, if any. 2.4 Financial liabilities Financial liabilities are initially recognized at the transaction price (including transaction costs). 2.4.1 Trade payables Trade payables are obligations on the basis of normal credit terms and do not bear interest. 2.4.2 Interest bearing liabilities Interest bearing liabilities are subsequently measured at amortized cost using the effective interest method. 2.4.3 Retirement benefit obligation a) Defined contribution plans - EPF and ETF Employees are eligible for Employees’ Provident Fund contributions and Employees’ Trust Fund contributions in line with respective statutes and regulations. The Institute contributes 12% and 3% of gross emoluments of employees to the Employees’ Provident Fund and to the Employees’ Trust Fund respectively. b) Defined benefit plans – Gratuity Provision is made in the financial statements for retirement gratuity payable as per the Payment of Gratuity Act No. 12 of 1983. The liability is not externally funded nor is it actuarially valued. 2.4.4 Provisions Provisions are recognized when the Institute has a present obligation (legal and 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. STATEMENT OF COMPREHENSIVE INCOME 3.1 Revenue recognition Revenue is measured at the fair value of the consideration received or receivable, net of discounts, rebates, trade discounts and sales-related taxes collected on behalf of the Government of Sri Lanka. 3.2 Rendering services Revenue is recognized principally on an accrual basis and represents the values of services rendered to customers. 3.3 Interest and dividend income Interest income is recognized on an accrual basis. Dividend income is recognized at the time the right to receive payment is established. 3.4 Borrowing costs All borrowing costs are recognized in the statement of comprehensive income in the period in which they are incurred. Interest expense is recognized on the basis of the effective interest method and included in finance costs. 3.5 Income tax The provision for income tax is based on the elements of income and expenditure as reported in the financial statements and computed in accordance with the provision of the Inland Revenue Act No. 24 of 2017. 3.6Expenditure recognition a) Expenses are recognized in the statement of comprehensive income on the basis of a direct association between the cost incurred and the earning of specific items of income. All the 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 income in arriving at the excess of income over expenditure for the year. b) For the purpose of presenting the statement of comprehensive income, the Council members are of the opinion that the function of expenses method presents fairly the elements of the Institute’s performance and hence, this presentation method is adopted. 3.7 Off statement of financial position and statement of comprehensive income items 3.7.1 Events occurring after the reporting date All material events occurring after the reporting date have been considered and where necessary, adjustments or disclosures have been made, in the respective notes to the financial statements. 3.7.2 Contingencies and unrecognized contractual commitments Contingencies are possible assets or obligations that arise from a past event and would be confirmed only on the occurrence or non-occurrence of uncertain future events, which are beyond the Institute’s control.
202 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 4. REVENUE 2022/2023 Income Expenditure Excess/ (losses) Rs. Rs. Rs. Study courses FCHRM (Foundation course in HRM) 19,047,948 6,395,597 12,652,351 CCHRM/ACHRM (Certificate course/Advanced certificate in HRM) 126,022,660 29,931,479 96,091,181 PQHRM/CQHRM (Professional qualification/Chartered qualification in HRM) 308,228,193 79,393,842 228,834,351 DTHRD (Diploma in training and human resource development) 6,151,834 2,584,463 3,567,371 MSC (Master of Science - HRM and development) 12,150,667 6,659,544 5,491,123 BSc (Bachelor of Science - HR management) 603,750 397,987 205,763 DIREL (Diploma in industrial relations and employment law) 1,650,417 1,188,949 461,468 DOSH (Diploma in occupational safely and health) 5,291,083 1,978,111 3,312,972 ECHRA (Executive certificate in HR analytics) 4,940,200 2,022,662 2,917,538 ECEL (Executive certificate in employment law) 6,314,667 1,945,535 4,369,132 490,401,419 132,498,169 357,903,250 5. COMMITTEE’S EXPENDITURE OVER INCOME 2022/2023 Income Expenditure Excess/ (losses) Rs. Rs. Rs. National HR conference and events committee 50,000 115,691 (65,691) Standing committee on marketing - 24,285,931 (24,285,931) Standing committee on people management solutions 30,628,423 19,266,163 11,362,260 Annual HR quiz - 37,500 (37,500) Standing committee on CIPM applied reseach and knowledged center 1,550,708 2,095,052 (544,344) External Relations and national HR initiatives - 6,346,311 (6,346,311) Standing committee on editorial - 245,307 (245,307) Standing committee on finance and administration - 43,031 (43,031) Standing committee on digitalization, automation and IT projects - 20,463 (20,463) Standing committee on setting up people management standards/ certification/ accreditation - 1,224,641 (1,224,641) Standing committee on business school and student life 91,317 1,479,527 (1,388,210) Standing committee on membership development, member services and enagagement 187,730 4,761,671 (4,573,941) Standing committee on audit, legal and due diligence - 7,440 (7,440) Standing committee on professional and academic afairs 17,555,950 22,478,762 (4,922,812) Standing committee on strategic planning and implementation - 150,130 (150,130) College of past presidents - 62,269 (62,269) Standing committee on people development and remuneration - 205,971 (205,971) World HR congress - 1,330 (1,330) Standing committee on sustainability, diversity, inclusivity - 381,278 (381,278) CEOs forum - 2,113,705 (2,113,705) Government relations and national level initiatives - 416,188 (416,188) 50,064,128 85,738,361 (35,674,233) NOTES TO THE FINANCIAL STATEMENTS
203 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 6. OTHER OPERATING INCOME 2022/2023 2021/2022 Rs. Rs. Interest income 51,274,845 12,499,810 Sundry income 1,055,267 184,160 Dividend income 4,604 4,297 Membership fees 4,224,100 4,092,165 Net sale of CIPM branded items 43,521 33,437 Profit on disposal of property, plant and equipment 103,543 9,083 Hall hire income 4,749,653 1,091,813 61,455,533 17,914,765 7. FINANCE EXPENSES 2022/2023 2021/2022 Rs. Rs. Interest on loans 201,278 885,114 Bank charges 351,896 190,507 Surcharge and penalties - 367,500 Bank charges on accepting credit card payments 4,400,541 4,451,862 Overdraft interest 13,427 - 4,967,142 5,894,983 8. INCOME TAX EXPENSE 2022/2023 2021/2022 Rs. Rs. Income tax provision for the year 20,829,955 16,897,013 Previous year under/(over) provision 891,580 (970,778) 21,721,535 15,926,235 8.1 Reconciliation between current tax expenses and the product of accounting excess of income over expenditure 2022/2023 2021/2022 Rs. Rs. Excess of income over expenditure before taxation 91,884,357 123,626,033 Excluded amounts Amounts considered as investment income (4,604) - 91,879,753 123,626,033 Aggregate disallowable items 510,056,606 43,088,731 Aggregate allowable items (507,257,678) (46,021,814) Assessable income from the business 94,678,681 120,692,950 Income from investment income 4,604 - Total taxable income 94,683,285 120,692,950 Liable tax on taxable income at 14% - first 6 months 6,628,152 16,897,013 Liable tax on taxable income at 30% - second 6 months 14,201,802 - Total tax 20,829,955 16,897,013
204 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 9. PROPERTY, PLANT AND EQUIPMENT COST/VALUATION DEPRECIATION W.D.V. Description of assets Balance as at 01.04.2022 Additions during the year Disposal during the year Balance as at 31.03.2023 Balance as at 01.04.2022 For the year On disposal Balance as at 31.03.2023 Balance as at 31.03.2023 Balance as at 31.03.2022 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Freehold assets Land 198,406,906 - - 198,406,906 - - - - 198,406,906 198,406,906 Building 282,527,501 4,355,109 - 286,882,610 88,768,344 7,068,641 - 95,836,985 191,045,625 193,759,157 Plant and machinery 30,781,161 - - 30,781,161 29,765,254 1,015,907 - 30,781,161 - 1,015,907 Furniture and fittings 65,738,776 747,962 333,026 66,153,712 25,096,553 5,840,078 299,188 30,637,443 35,516,269 40,642,223 Library books 4,732,256 - - 4,732,256 - - - - 4,732,256 4,732,256 Office equipment 101,101,735 17,287,350 - 118,389,085 77,787,909 8,692,587 - 86,480,496 31,908,589 23,313,826 Computer equipment 40,532,128 926,290 - 41,458,418 29,293,200 4,670,006 - 33,963,206 7,495,212 11,238,928 723,820,463 23,316,711 333,026 746,804,148 250,711,260 27,287,219 299,188 277,699,291 469,104,857 473,109,203 9.1 Leasehold Improvements COST/VALUATION AMORTIZATION W.D.V. Description of assets Balance as at 01.04.2022 Additions during the year Balance as at 31.03.2023 Balance as at 01.04.2022 For the year Balance as at 31.03.2023 Balance as at 31.03.2023 Balance as at 31.03.2022 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Leasehold improvements 40,493,627 3,791,501 44,285,128 22,675,720 18,018,550 40,694,270 3,590,858 17,817,907 40,493,627 3,791,501 44,285,128 22,675,720 18,018,550 40,694,270 3,590,858 17,817,907 10. INTANGIBLE ASSETS COST AMORTIZATION W.D.V. Description of assets Balance as at 01.04.2022 Additions during the year Balance as at 31.03.2023 Balance as at 01.04.2022 For the year Balance as at 31.03.2023 Balance as at 31.03.2023 Balance as at 31.03.2022 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. E-books for library 1,244,246 - 1,244,246 497,699 124,425 622,124 622,122 746,547 ERP and operating modules 6,095,767 321,998 6,417,765 506,208 529,363 1,035,571 5,382,194 5,589,559 7,340,013 321,998 7,662,011 1,003,907 653,788 1,657,695 6,004,316 6,336,106 NOTES TO THE FINANCIAL STATEMENTS
205 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 11. FINANCIAL ASSETS AT AMORTIZED COST As at 31.03.2023 As at 31.03.2022 Notes Rs. Rs. Investment in fixed deposits 11.1 272,674,612 257,525,321 Investment in capital savings accounts 11.2 27,278,570 35,258,758 Investments in treasury bills 11.3 40,332,600 - 340,285,782 292,784,079 11.1 Investment in fixed deposits As at 31.03.2023 As at 31.03.2022 Rs. Rs. 133,573,425 91,474,096 Sampath Bank PLC (Money market account) 115,880 114,113 Seylan Bank PLC 138,985,307 165,937,112 272,674,612 257,525,321 11.2 Investment in Capital savings accounts As at 31.03.2023 As at 31.03.2022 Rs. Rs. Hatton National Bank PLC - Capital savings account 27,278,570 35,258,758 27,278,570 35,258,758 11.3 Investment in treasury bills As at 31.03.2023 As at 31.03.2022 Rs. Rs. Investments in treasury bills 40,332,600 - 40,332,600 - 12. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT/LOSS 12.1 Investment in equity shares of listed entities Number of shares as at 31.03.2023 Fair value per share as at 31.03.2023 Fair value as at 31.03.2023 Fair value as at 31.03.2022 Name of the company Rs. Rs. Rs. Rs. Ceylon Investment Co. 6,138 33.50 205,623 230,725
206 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 13. TRADE AND OTHER RECEIVABLES/PREPAYMENTS As at 31.03.2023 As at 31.03.2022 Note Rs. Rs. Security deposits 1,205,934 2,085,934 Advance 100 9,000 Study courses and seminars fee receivable 13.1 227,303,934 290,959,901 Distress loans 6,807,647 2,676,320 Sponsorship and other receivable 946,507 831,945 Interest income receivable 41,864,203 6,492,764 Hall/stall booking - NHRC and exhibition - 839,003 Deferred expenditure - MSC - 10,683,818 Prepayments 20,466,513 14,526,450 Rent advance - Colombo 175,000 3,212,352 Refundable deposit - Kandy 900,000 900,000 Rent advance - Galle 1,200,000 1,200,000 Refundable deposit - Kurunegala 1,351,350 1,351,350 Refundable deposit - Gampaha 1,500,000 - Payments record from students received for course fees (18,964,616) (52,961,258) 284,756,572 282,807,579 13.1 Study courses and seminars fee receivable As at 31.03.2023 As at 31.03.2022 Rs. Rs. Gross receivable 253,655,261 297,365,349 Provision for impairment (26,351,327) (6,405,448) Net receivable 227,303,934 290,959,901 14. CASH AND CASH EQUIVALENTS As at 31.03.2023 As at 31.03.2022 Rs. Rs. Cash in hand 113,717 80,887 Savings accounts 1,188,806 1,871,308 1,302,523 1,952,195 15. ACCUMULATED RESERVES As at 31.03.2023 As at 31.03.2022 Rs. Rs. Balance at the beginning of the year 786,220,977 678,521,179 Excess of income over expenditure during the year 70,162,822 107,699,798 Balance at the end of the year 856,383,799 786,220,977 NOTES TO THE FINANCIAL STATEMENTS
207 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 16. OTHER FUNDS Balance as at 01.04.2022 Additions Balance as at 31.03.2023 Rs. Rs. Rs. Library fund 747,652 - 747,652 Covid -19 donation fund 9,950 - 9,950 Jayantha Jayarathna gold medal trust fund 5,590 - 5,590 Death relief donation fund (343) 6,113 5,770 762,849 6,113 768,962 17. RETIREMENT BENEFIT OBLIGATION As at 31.03.2023 As at 31.03.2022 Rs. Rs. Balance at the beginning of the year 20,559,184 16,932,429 Provision for the year 5,224,318 4,238,665 Payments during the year (1,098,790) (611,910) Balance at the end of the year 24,684,712 20,559,184 18. DEFERRED INCOME As at 31.03.2023 As at 31.03.2022 Rs. Rs. PQHRM/CQHRM (Professional qualification/Chartered qualification in HRM) 141,616,305 132,007,772 CCHRM/ACHRM (Certificate course/Advanced certificate in HRM) 14,007,831 15,223,000 MSC (Master of Science - HRM and development) 827,944 15,024,611 FCHRM (Foundation course in HRM) 2,009,502 1,852,500 DTHRD (Diploma in training and human resource development) 1,233,499 3,448,333 BSC (Bachelor of Science - HR management) 24,167 627,917 DIREL (Diploma in industrial relations and employment law) (47,917) 2,030,000 DOSH (Diploma in occupational safety and health) 1,249,667 1,823,750 CMI-Dip (Diploma in professional consulting) 115,000 3,181,250 Seminars/Workshops 1,881,000 - ECOSH (Executive certificate in occupational safety and health) 81,667 149,333 ECHRA (Executive certificate in HR analytics) 58,000 448,000 ECEL (Executive certificate in employment law) 193,333 384,000 163,249,998 176,200,466
208 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 19. OTHER PAYABLES AND ACCRUED EXPENSES As at 31.03.2023 As at 31.03.2022 Rs. Rs. Stamp duty 21,725 21,325 Audit fee 561,000 512,302 Advance received 521,416 521,416 Library refundable deposits 1,783,883 1,793,386 Accrued expenses 35,034,267 54,494,076 37,922,291 57,342,505 20. INTEREST BEARING BORROWINGS As at 31.03.2023 As at 31.03.2022 Rs. Rs. Balance at the beginning of the year 13,333,331 25,000,000 Repayments during the year (13,333,331) (11,666,669) Balance at the end of the year - 13,333,331 Payable within one year - 13,333,331 - 13,333,331 21. INCOME TAX PAYABLE As at 31.03.2023 As at 31.03.2022 Rs. Rs. Balance at the beginning of the year 11,531,163 8,816,285 Provision for the year 20,829,955 16,897,013 Previous year under/(over) provision 891,580 (970,778) 33,252,698 24,742,520 Less: Tax credits Income tax paid during the year (15,591,334) (13,211,357) Balance at the end of the year 17,661,364 11,531,163 22. RETENTION PAYABLE As at 31.03.2023 As at 31.03.2022 Rs. Rs. 10% retention payable 3,057,037 4,149,149 NOTES TO THE FINANCIAL STATEMENTS
209 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 23. BANK OVERDRAFTS As at 31.03.2023 As at 31.03.2022 Rs. Rs. Hatton National Bank PLC 4,682,508 8,121,120 4,682,508 8,121,120 The overdraft with HNB is secured by lien over fixed deposits amounting to Rs.21,804,931/51. 24. COMMITMENTS AND CONTINGENCIES Case No. DSP179/2021 in the District Court of Colombo This case was filed by the Plaintiff seeking an enjoining order and interim injunction preventing the Defendant from conducting its annual general meeting. The plaintiff has obtained the enjoining order and Notice of interim injunction ex parte. The institute has filed objections and an order was given in favour of the Defendant. This case was fixed for pretrial on 09th October 2023 in the District Court of Colombo . Case No. D C Colombo 263 / 2022 This case was filed by the Plaintiff seeking an enjoining order and notice of interim Injunction preventing the Defendant from conducting its annual general meeting and suspension of his membership. The Plaintiff has obtained the enjoining order and notice of injunction ex parte. The Institute has filed objections in the above case on 15th July 2022 and was fixed for order on 28th July 2022. Both parties have filed written submissions at the court registry on 22nd July 2022. This case was called on 28th July 2022 for order and order was given in favour of the Defendant. (the enjoining order was dissolved by the Court) This case was called on 28th September 2022 for answer and the Defendant has filed the answer. This case was fixed for pretrial on 12th January 2023. This case was called for pretrial on 12th January 2023 and Issues and Admissions were settled. This case will be called for trial on 10th October 2023. Case No. WP/HCCA/Col /234 / 2022 (LA) in District Court of Colombo This case was filed by the Plaintiff - Petitioner against the order dated 28th July 2022 in the District Court of Colombo. This case was supported on 29th May 2023. However, limited leave was granted by the Hon Judges of the Civil Appeal Court. Case No. WP/HCCA /Col / 03 / 2022 (LA) in the District Court of Colombo This case was filed by the Defendant - Petitioners against the order dated 04th January 2023 in the District Court case no DSP179 / 2021. The Institute filed a motion and the proposed amended answer to amend the original answer of District Court of Colombo case No 179 / 2021. The Hon District Court of Colombo Judge did not give permission to amend the original answer of DSP 179 / 2021.This case was supported on 07th February 2023 and the leave was granted by the Hon Judges of the Civil Appeal Court. This case was fixed for argument on 15th August 2023. Case No. DLM114/2021 in the District Court of Colombo A Stay order granted by the District Court of Colombo in the Case No. DLM/000114/2021 in response to a Petition filed by a CIPM member wherein he has challenged the ownership of two blocks of land belonging to CIPM. This matter was taken up in the District Court Colombo and court delivered an order, dissolving the enjoining order and further refused the interim injunction requested by the Plaintiff. This matter is currently before the District Court of Colombo and fixed for Trial on 20th September 2023. There were no contingent liabilities or capital expenditure commitments as at 31st March 2023 which require adjustment or disclosure in the financial statements.
210 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 25. EVENTS OCCURRING AFTER THE REPORTING PERIOD No circumstances have arisen, since the reporting date which would require adjustment or disclosures in the financial statements. 26. RELATED PARTY TRANSACTIONS Payments are made in the ordinary course of business to any member of the Institute for certain specified activities. During the reporting period the following members of the Council have been involved in such activities at the request of the Council on behalf of the Institute. Payments made to Council members during the reporting period (financial year) Name of the Council member Nature of the transaction 2022/2023 Rs. Air Cdre. Manoaj Keppetipola * Lecture and research supervision 862,150 Mr. Priyantha Ranasinghe * Lecture and corporate training 518,000 Ms. Rajee Ravichandran ** Lecture and corporate training 465,750 Col. Saman Jayawickrama (Retd.) * Invigilation 249,600 Mr. Ken Vijayakumar * Lecture 183,400 Mr. Jayantha Abeyratne * Corporate training and invigilation 127,200 Mr. Kasun Nahallage * Lecture 98,250 Mr. Priyankara Seneviratne * Membership discussions 60,000 Dr. Nilan Miranda * Research supervision and VIVA 37,000 * Transactions relating to these Council members were considered from 01st April 2022 to 31st March 2023 as they have been members of both Councils, 2021/2022 and 2022/2023. ** Transactions relating to this Council member was considered from 01st August 2022 to 31st March 2023 as she was appointed to the council on 01st August 2022. 27. COMPARATIVE INFORMATION Comparative information has been reclassified where necessary in line with the presentation requirements for the current financial year. 2023 2022 Note Rs. Rs. Revenue A 490,401,419 535,753,274 Direct expenses (132,498,169) (164,413,001) Gross surplus 357,903,250 371,340,273 Committee expenditure over income A.1 (35,674,233) (19,296,573) Other operating income B 61,455,533 17,914,765 383,684,550 369,958,465 Administration expenses C (284,139,668) (237,772,925) Promotional expenses D (2,693,383) (2,664,524) Finance expenses E (4,967,142) (5,894,983) (291,800,193) (246,332,432) Excess of income over expenditure before income tax 91,884,357 123,626,033 NOTES TO THE FINANCIAL STATEMENTS
211 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 A) REVENUE 2023 Income Expenditure Excess/ (Losses) Rs. Rs. Rs. Study Courses FCHRM (Foundation course in HRM) 19,047,948 6,395,597 12,652,351 CCHRM/ACHRM (Certificate course/Advanced certificate in HRM) 126,022,660 29,931,479 96,091,181 PQHRM/CQHRM (Professional qualification/ Chartered qualification in HRM) 308,228,193 79,393,842 228,834,351 DTHRD (Diploma in training and human resource development) 6,151,834 2,584,463 3,567,371 MSC (Master of Science - HRM and development) 12,150,667 6,659,544 5,491,123 BSc (Bachelor of Science - HR management) 603,750 397,987 205,763 DIREL (Diploma in industrial relations and employment law) 1,650,417 1,188,949 461,468 DOSH (Diploma in occupational safety and health) 5,291,083 1,978,111 3,312,972 ECHRA (Executive certificate in HR analytics) 4,940,200 2,022,662 2,917,538 ECEL (Executive certificate in employment law) 6,314,667 1,945,535 4,369,132 490,401,419 132,498,169 357,903,250 A.1) COMMITTEE EXPENDITURE OVER INCOME National HR conference and events committee 50,000 115,691 (65,691) Standing committee on marketing - 24,285,931 (24,285,931) Standing committee on people management solutions 30,628,423 19,266,163 11,362,260 Annual HR quiz - 37,500 (37,500) Standing committee on CIPM applied reseach and knowledged center 1,550,708 2,095,052 (544,344) External relations and national HR initiatives - 6,346,311 (6,346,311) Standing committee on editorial - 245,307 (245,307) Standing committee on finance and administration - 43,031 (43,031) Standing committee on digitalization, automation and IT projects - 20,463 (20,463) Standing committee on Setting Up People Management Standards/ Certification/Accreditation - 1,224,641 (1,224,641) Standing committee on business school and student life 91,317 1,479,527 (1,388,210) Standing committee on membership development, member services and enagagement 187,730 4,761,671 (4,573,941) Standing committee on audit, legal and due diligence - 7,440 (7,440) Standing committee on professional and academic afairs 17,555,950 22,478,762 (4,922,812) Standing committee on strategic planning and implementation - 150,130 (150,130) College of past presidents - 62,269 (62,269) Standing committee on people development and remuneration - 205,971 (205,971) world HR congress - 1,330 (1,330) Standing committee on sustainability, diversity, inclusivity - 381,278 (381,278) CEOs forum - 2,113,705 (2,113,705) Government relations and national level initiatives - 416,188 (416,188) 50,064,128 85,738,361 (35,674,233) ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
212 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 B) OTHER OPERATING INCOME 2023 2022 Rs. Rs. Interest income 51,274,845 12,499,810 Sundry income 1,055,267 184,160 Dividend income 4,604 4,297 Membership fees 4,224,100 4,092,165 Net sale of CIPM branded items 43,521 33,437 Profit on asset disposal 103,543 9,083 Hall hire income 4,749,653 1,091,813 61,455,533 17,914,765 C) ADMINISTRATION EXPENSES 2023 2022 FOR THE YEAR ENDED 31ST MARCH 2023 Rs. Rs. Professional charges 625,586 3,932,490 Legal charges 12,573,900 4,363,000 Medical expenses - outdoor 1,639,144 1,453,389 Printing and stationery 529,361 250,949 Advertising expenses 363,165 95,665 Postage charges 286,884 372,734 Water 774,095 538,225 Communication charges 1,633,219 1,388,931 Electricity 9,042,621 6,316,928 Salaries and wages 78,033,572 72,177,254 Allowances - Transport and mobile 21,337,273 12,463,870 Wages for contract employees 2,535,606 1,649,161 Overtime/out of pocket allowance 4,733,248 2,501,129 Special payments/allowances 15,000 170,600 E.P.F. 9,380,639 8,661,271 E.T.F. 2,345,160 2,165,318 Travelling expenses 1,070,530 569,831 Staff training and development 1,515,639 375,483 Office maintenance 3,083,227 2,437,257 Office equipment maintenance 11,019,201 11,736,174 Office equipment hiring 330,000 - Building maintenance 12,890,412 13,509,774 AGM expenses 2,001,715 1,939,064 Audit fee 558,752 512,302 Bonus payments 13,834,217 19,414,650 Janitorial expenses 4,426,900 3,346,245 Insurance - building/property 411,222 411,575 ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
213 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 2023 2022 FOR THE YEAR ENDED 31ST MARCH 2023 Rs. Rs. Insurance - medical 2,187,328 1,445,613 Depreciation and amortization 45,959,556 36,797,790 Gratuity provision 5,224,318 4,238,665 Staff welfare 2,986,982 3,306,702 Municipal rates 450,860 388,044 Library expenses 228,807 187,679 Stamp duty and other taxes 325,750 92,025 Institutional expenses 1,588,058 1,299,112 Fuel for generator 1,242,010 169,635 Subscription fees 616,014 791,557 Security charges 7,048,156 6,490,272 ISO/5S implementation expenses 578,332 738,830 Office rent 2,434,610 948,750 CIPM anniversary and religious expenses 964,675 784,595 ERP and license fee 8,487,344 1,094,340 Provision for doubtful debtors - 6,080,000 Fair value loss on equity securities 25,102 166,047 Social Security Contribution Levy (SSCL) 6,801,478 - 284,139,668 237,772,925 D) PROMOTIONAL EXPENSES 2023 2022 Rs. Rs. Programme calendar - 395,000 Advertisement expenses - 67,835 Web maintenance and development 661,782 393,300 Business development expenses 1,638,827 1,063,120 Referral payment for students 30,000 25,000 Brochures and promotional materials 70,000 577,830 Compliments and gifts/donations 292,774 142,439 2,693,383 2,664,524 E) FINANCE EXPENSES 2023 2022 Rs. Rs. Interest on loans 201,278 885,114 Bank charges 351,896 190,507 Surcharge and penalties - 367,500 Bank charges on accepting card/online payments 4,400,541 4,451,862 Overdraft Interest 13,427 - 4,967,142 5,894,983
214 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 Ten Year Summary.........................................................................................… Value Added Statement..................................................................................… Glossary of Financial Terms...........................................................................… Branch Network.............................................................................................… Corporate Sponsors.......................................................................................… Notice of Meeting ..........................................................................................… Inner Back Cover...........................................................................................… Corporate Information....................................................................................… ANNEXES
215 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 ANOTHER COMMON ANIMAL ADAPTATION IS A GIRAFFE’S LONG NECK. GIRAFFES HAVE ADAPTED IN MANY WAYS FOR LIFE IN THE GRASSLANDS OF EAST AFRICA. THEIR LONG NECKS ALLOW THEM TO REACH LEAVES FROM HIGH BRANCHES, AND THEIR SPOTS ARE AN EXAMPLE OF A BODY COVERING ADAPTATION THAT HELPS CAMOUFLAGE THEM FROM PREDATORS. SIMILAR TO CAMELS, GIRAFFES HAVE ALSO ADAPTED TO LIFE IN A REGION WHERE WATER MAY BE SCARCE. THESE HERBIVORES CAN GO WEEKS WITHOUT WATER IF NEEDED AND ALSO CONSUME MOST OF THEIR WATER FROM MORNING DEW AND THE PLANTS THEY EAT.
216 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 STATEMENT OF COMPREHENSIVE INCOME 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Revenue 490,401,419 535,753,274 422,984,518 496,759,852 475,508,979 408,636,106 366,448,065 299,955,315 255,898,347 226,050,030 Direct cost (132,498,169) (164,413,001) (136,026,057) (198,611,809) (179,998,656) (138,454,733) (123,487,013) (113,456,205) (97,479,329) (87,713,248) Gross surplus 357,903,250 371,340,273 286,958,461 298,148,043 295,510,323 270,181,373 242,961,052 186,499,110 158,419,018 138,336,783 Committee’s expenditure over income (35,674,233) (19,296,573) (23,647,056) (40,670,460) (37,935,446) (26,588,348) (18,819,258) (15,140,118) (9,673,485) (9,304,234) Other operating income 61,455,533 17,914,765 14,372,281 18,831,700 23,243,284 15,659,630 9,867,430 7,138,888 8,155,567 6,090,282 383,684,550 369,958,465 277,683,686 276,309,283 280,818,161 259,252,655 234,009,224 178,497,881 156,901,101 135,122,830 Administration expenses (284,139,668) (237,772,925) (189,986,906) (189,180,253) (175,580,964) (152,065,214) (129,456,806) (123,293,278) (99,003,642) (82,028,088) Promotional expenses (2,693,383) (2,664,524) (2,160,462) (4,921,454) (5,229,511) (9,010,623) (16,003,336) (28,862,396) (16,509,000) (17,151,149) Finance expenses (4,967,142) (5,894,983) (3,157,634) (2,191,842) (1,647,880) (4,781,648) (9,903,599) (9,057,397) (986,080) (1,480,232) (291,800,193) (246,332,432) (195,305,002) (196,293,549) (182,458,355) (165,857,485) (155,363,741) (161,213,071) (116,498,722) (100,659,469) Excess of income over expenditure before income tax 91,884,357 123,626,033 82,378,684 80,015,734 98,359,806 93,395,170 78,645,483 17,284,809 40,402,379 34,463,361 Income tax expense (21,721,535) (15,926,235) (12,986,393) (11,617,113) (13,103,762) (2,977,259) (1,836,869) (483,283) (452,661) (163,083) Excess of income over expenditure after income tax 70,162,822 107,699,798 69,392,291 68,398,621 85,256,044 90,417,911 76,808,614 16,801,526 39,949,718 34,300,278
217 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Revenue 490,401,419 535,753,274 422,984,518 496,759,852 475,508,979 408,636,106 366,448,065 299,955,315 255,898,347 226,050,030 Direct cost (132,498,169) (164,413,001) (136,026,057) (198,611,809) (179,998,656) (138,454,733) (123,487,013) (113,456,205) (97,479,329) (87,713,248) Gross surplus 357,903,250 371,340,273 286,958,461 298,148,043 295,510,323 270,181,373 242,961,052 186,499,110 158,419,018 138,336,783 Committee’s expenditure over income (35,674,233) (19,296,573) (23,647,056) (40,670,460) (37,935,446) (26,588,348) (18,819,258) (15,140,118) (9,673,485) (9,304,234) Other operating income 61,455,533 17,914,765 14,372,281 18,831,700 23,243,284 15,659,630 9,867,430 7,138,888 8,155,567 6,090,282 383,684,550 369,958,465 277,683,686 276,309,283 280,818,161 259,252,655 234,009,224 178,497,881 156,901,101 135,122,830 Administration expenses (284,139,668) (237,772,925) (189,986,906) (189,180,253) (175,580,964) (152,065,214) (129,456,806) (123,293,278) (99,003,642) (82,028,088) Promotional expenses (2,693,383) (2,664,524) (2,160,462) (4,921,454) (5,229,511) (9,010,623) (16,003,336) (28,862,396) (16,509,000) (17,151,149) Finance expenses (4,967,142) (5,894,983) (3,157,634) (2,191,842) (1,647,880) (4,781,648) (9,903,599) (9,057,397) (986,080) (1,480,232) (291,800,193) (246,332,432) (195,305,002) (196,293,549) (182,458,355) (165,857,485) (155,363,741) (161,213,071) (116,498,722) (100,659,469) Excess of income over expenditure before income tax 91,884,357 123,626,033 82,378,684 80,015,734 98,359,806 93,395,170 78,645,483 17,284,809 40,402,379 34,463,361 Income tax expense (21,721,535) (15,926,235) (12,986,393) (11,617,113) (13,103,762) (2,977,259) (1,836,869) (483,283) (452,661) (163,083) Excess of income over expenditure after income tax 70,162,822 107,699,798 69,392,291 68,398,621 85,256,044 90,417,911 76,808,614 16,801,526 39,949,718 34,300,278
218 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 STATEMENT OF FINANCIAL POSITION 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 AS AT 31ST MARCH Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Assets Non-current assets Property, plant and equipment 469,104,857 473,109,203 437,276,565 403,873,497 394,639,735 394,384,233 391,989,608 385,191,827 371,828,679 253,106,174 Leasehold improvements 3,590,858 17,817,907 27,995,774 35,122,096 - Intangible asset 6,004,316 6,336,106 870,972 995,396 1,119,821 Financial assets at amortised cost 340,285,782 292,784,079 178,675,574 123,854,845 183,651,370 145,097,007 104,111,428 67,461,662 75,152,014 45,226,251 Total non-current assets 818,985,813 790,047,295 644,818,885 563,845,834 579,410,926 539,481,240 496,101,036 452,653,489 446,980,693 298,332,426 Current assets Inventories 3,160,140 3,182,950 2,610,170 2,974,196 1,788,439 5,598,041 3,129,020 2,933,019 2,465,823 2,496,119 Financial assets at FVTPL 205,623 230,725 396,772 177,626 222,797 Trade and other receivables and prepayments 284,756,572 282,807,579 308,100,221 221,145,384 182,356,325 147,057,681 91,022,389 53,288,249 28,795,614 29,332,772 Income tax receivable - - - - - 1,142,266 1,359,394 2,459,773 2,075,720 1,663,004 Cash and cash equivalents 1,302,523 1,952,195 1,497,412 1,758,615 1,015,282 1,150,216 55,482 34,894 60,114 58,164 Total current assets 289,424,858 288,173,449 312,604,575 226,055,821 185,382,843 154,948,204 95,566,285 58,715,935 33,397,271 33,550,059 Total assets 1,108,410,671 1,078,220,744 957,423,460 789,901,655 764,793,769 694,429,444 591,667,321 511,369,424 480,377,964 331,882,484 Equity and liabilities Capital and reserves Accumulated reserve 856,383,799 786,220,977 678,521,179 609,128,888 540,730,267 455,474,223 365,056,312 288,247,698 271,446,172 225,703,403 Other funds 768,962 762,849 1,322,527 1,473,204 1,605,632 1,537,675 877,173 787,236 824,973 6,459,522 Total capital and reserves 857,152,761 786,983,826 679,843,706 610,602,092 542,335,899 457,011,898 365,933,484 289,034,934 272,271,145 232,162,924 Non-current liabilities Interest bearing borrowings - - 13,333,331 - - 34,997,600 79,998,400 89,999,200 Retirement benefit obligations 24,684,712 20,559,184 16,932,429 13,132,079 11,504,556 11,373,750 8,411,833 6,825,250 5,344,665 3,637,588 Total non-current liabilities 24,684,712 20,559,184 30,265,760 13,132,079 11,504,556 11,373,750 43,409,433 86,823,650 95,343,865 3,637,588 Current liabilities Deferred income 163,249,998 176,200,466 173,329,574 106,486,766 130,009,411 123,271,987 101,871,409 78,165,620 63,417,805 61,401,049 Other payables and accrued expenses 37,922,291 57,342,505 43,494,801 45,834,642 67,064,804 56,599,197 44,590,398 33,348,947 28,173,963 20,815,458 Interest bearing borrowings - 13,333,331 11,666,669 - 10,000,800 10,000,800 10,000,800 - Income tax payable 17,661,364 11,531,163 8,816,285 3,925,757 8,910,543 Retention payable 3,057,037 4,149,149 2,791,179 2,591,868 954,777 687,364 925,962 716,184 272,554 235,239 Bank overdrafts 4,682,508 8,121,120 7,215,486 7,328,451 4,013,779 45,485,248 24,935,834 13,279,290 10,897,834 13,630,227 Total current liabilities 226,573,198 270,677,734 247,313,994 166,167,484 210,953,314 226,043,796 182,324,403 135,510,840 112,762,955 96,081,973 Total liabilities 251,257,910 291,236,918 277,579,754 179,299,563 222,457,870 237,417,546 225,733,836 222,334,490 208,106,820 99,719,560 Total equity and liabilities 1,108,410,671 1,078,220,744 957,423,460 789,901,655 764,793,769 694,429,444 591,667,321 511,369,424 480,377,964 331,882,484
219 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 AS AT 31ST MARCH Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Assets Non-current assets Property, plant and equipment 469,104,857 473,109,203 437,276,565 403,873,497 394,639,735 394,384,233 391,989,608 385,191,827 371,828,679 253,106,174 Leasehold improvements 3,590,858 17,817,907 27,995,774 35,122,096 - Intangible asset 6,004,316 6,336,106 870,972 995,396 1,119,821 Financial assets at amortised cost 340,285,782 292,784,079 178,675,574 123,854,845 183,651,370 145,097,007 104,111,428 67,461,662 75,152,014 45,226,251 Total non-current assets 818,985,813 790,047,295 644,818,885 563,845,834 579,410,926 539,481,240 496,101,036 452,653,489 446,980,693 298,332,426 Current assets Inventories 3,160,140 3,182,950 2,610,170 2,974,196 1,788,439 5,598,041 3,129,020 2,933,019 2,465,823 2,496,119 Financial assets at FVTPL 205,623 230,725 396,772 177,626 222,797 Trade and other receivables and prepayments 284,756,572 282,807,579 308,100,221 221,145,384 182,356,325 147,057,681 91,022,389 53,288,249 28,795,614 29,332,772 Income tax receivable - - - - - 1,142,266 1,359,394 2,459,773 2,075,720 1,663,004 Cash and cash equivalents 1,302,523 1,952,195 1,497,412 1,758,615 1,015,282 1,150,216 55,482 34,894 60,114 58,164 Total current assets 289,424,858 288,173,449 312,604,575 226,055,821 185,382,843 154,948,204 95,566,285 58,715,935 33,397,271 33,550,059 Total assets 1,108,410,671 1,078,220,744 957,423,460 789,901,655 764,793,769 694,429,444 591,667,321 511,369,424 480,377,964 331,882,484 Equity and liabilities Capital and reserves Accumulated reserve 856,383,799 786,220,977 678,521,179 609,128,888 540,730,267 455,474,223 365,056,312 288,247,698 271,446,172 225,703,403 Other funds 768,962 762,849 1,322,527 1,473,204 1,605,632 1,537,675 877,173 787,236 824,973 6,459,522 Total capital and reserves 857,152,761 786,983,826 679,843,706 610,602,092 542,335,899 457,011,898 365,933,484 289,034,934 272,271,145 232,162,924 Non-current liabilities Interest bearing borrowings - - 13,333,331 - - 34,997,600 79,998,400 89,999,200 Retirement benefit obligations 24,684,712 20,559,184 16,932,429 13,132,079 11,504,556 11,373,750 8,411,833 6,825,250 5,344,665 3,637,588 Total non-current liabilities 24,684,712 20,559,184 30,265,760 13,132,079 11,504,556 11,373,750 43,409,433 86,823,650 95,343,865 3,637,588 Current liabilities Deferred income 163,249,998 176,200,466 173,329,574 106,486,766 130,009,411 123,271,987 101,871,409 78,165,620 63,417,805 61,401,049 Other payables and accrued expenses 37,922,291 57,342,505 43,494,801 45,834,642 67,064,804 56,599,197 44,590,398 33,348,947 28,173,963 20,815,458 Interest bearing borrowings - 13,333,331 11,666,669 - 10,000,800 10,000,800 10,000,800 - Income tax payable 17,661,364 11,531,163 8,816,285 3,925,757 8,910,543 Retention payable 3,057,037 4,149,149 2,791,179 2,591,868 954,777 687,364 925,962 716,184 272,554 235,239 Bank overdrafts 4,682,508 8,121,120 7,215,486 7,328,451 4,013,779 45,485,248 24,935,834 13,279,290 10,897,834 13,630,227 Total current liabilities 226,573,198 270,677,734 247,313,994 166,167,484 210,953,314 226,043,796 182,324,403 135,510,840 112,762,955 96,081,973 Total liabilities 251,257,910 291,236,918 277,579,754 179,299,563 222,457,870 237,417,546 225,733,836 222,334,490 208,106,820 99,719,560 Total equity and liabilities 1,108,410,671 1,078,220,744 957,423,460 789,901,655 764,793,769 694,429,444 591,667,321 511,369,424 480,377,964 331,882,484
220 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 TEN YEAR SUMMARY 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 AS AT 31ST MARCH Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Cash flows from operating activities Excess of income over expenditure before taxation 91,884,357 123,626,033 82,378,684 80,015,734 98,359,806 93,395,170 78,645,483 17,284,809 40,402,379 34,463,361 Adjustments for Depreciation on property, plant and equipment 27,287,219 25,989,290 27,506,174 26,674,695 21,630,882 19,558,351 16,286,144 15,847,709 13,748,563 11,641,405 Amortization on intangible assets 653,788 630,633 124,424 124,425 124,425 Amortization of leasehold improvements 18,018,550 10,177,867 10,150,557 2,347,296 - Provision for gratuity 5,224,318 4,238,665 3,800,350 1,627,523 2,823,056 2,961,917 1,724,082 1,672,426 1,707,077 1,440,519 (Profit)/loss on disposal of fixed assets (103,544) (9,083) (50,154) (228,230) - (28,188) Interest income (51,274,845) (12,499,810) (10,717,210) (12,692,879) (16,557,661) (10,633,068) (6,560,247) (4,027,357) (3,439,402) (1,754,433) Dividend income (4,604) (4,297) (1,562) - (3,052) (22,681) - (14,686) (29,466) (10,187) Fair value (gain)/loss on investments 25,102 166,047 (219,146) 45,171 39,675 (18,312) 311,595 234,074 (99,776) 33,259 Operating income before working capital changes 91,710,341 152,315,345 112,972,117 98,141,965 106,417,131 105,013,147 90,407,057 30,968,787 52,289,375 45,813,924 Changes in working capital Decrease/(increase) in inventories 22,810 (572,780) 364,026 (1,185,757) 3,809,602 (2,469,021) (196,001) (467,196) 30,296 (8,123) Decrease/(increase) in debtors and receivables (1,948,993) 25,292,642 (86,954,837) (38,789,059) (35,298,644) (56,035,292) (34,709,157) (24,492,635) 537,158 (9,788,742) (Decrease)/increase in other payables and accrued expenses (19,420,212) 13,847,704 (2,339,841) (21,230,162) 10,465,607 12,008,799 9,404,582 5,174,984 6,905,845 3,254,550 (Decrease)/increase in deferred income (12,950,468) 2,870,892 66,842,808 (23,522,645) 6,737,424 21,400,578 23,705,789 14,747,815 2,016,756 13,896,570 (Decrease)/increase in retention payable (1,092,112) 1,357,970 199,311 1,637,091 267,413 (238,598) 209,777 443,630 37,315 12,100 Cash generated from operations 56,321,366 195,111,773 91,083,584 15,051,433 92,398,533 79,679,613 88,822,047 26,375,385 61,816,745 53,180,279 Gratuity paid (1,098,790) (611,910) - - (2,692,250) - (137,500) (191,840) - - Tax paid (15,591,334) (13,211,357) (8,095,865) (15,818,413) (3,050,952) (2,760,132) (1,924,601) (867,336) (412,717) (605,083) Net cash generated from/(used in) operating activities 39,631,242 181,288,506 82,987,719 (766,980) 86,655,331 76,919,481 86,759,946 25,316,209 61,404,029 52,575,196 Cash flows from investing activities Acquisition of property, plant and equipment (23,316,711) (61,832,845) (60,915,068) (35,908,457) (21,886,384) (21,952,975) (23,083,925) (29,682,669) (132,471,068) (14,451,900) Additions to leasehold improvements (3,791,501) - (3,024,235) (37,469,392) - Disposal proceeds of fixed assets 137,380 20,000 55,980 228,230 - 500,000 Acquisition of intangible assets (321,998) (6,095,767) - - (1,244,246) Withdrawal of/(investment in) fixed/Other deposit (47,501,703) (114,108,505) (54,820,729) 59,796,525 (38,816,835) (40,967,267) (36,961,361) 7,456,278 (29,825,987) (34,192,089) Interest income 51,274,845 12,499,810 10,717,210 11,909,393 16,557,661 10,633,068 6,560,247 4,027,357 3,439,402 1,754,433 Dividend income 4,604 4,297 1,562 - 3,052 22,681 14,686 29,466 10,187 Net cash flow from/(used in) investing activities (23,515,084) (169,513,010) (107,985,280) (1,671,931) (45,386,752) (52,036,263) (53,485,039) (17,684,348) (158,828,187) (46,879,369) Cash flows from financing activities Funds received/(utilised) during the year 6,113 (559,678) (150,677) (132,428) 67,956 660,502 89,937 (37,737) 158,502 - Receipt/(settlement) of borrowings (13,333,331) (11,666,669) 25,000,000 (44,998,400) (45,000,800) (10,000,800) 100,000,000 (11,606,000) Net cash generated from/(used in) financing activities (13,327,218) (12,226,347) 24,849,323 (132,428) 67,956 (44,337,898) (44,910,863) (10,038,537) 100,158,502 (11,606,000) Net increase/(decrease) in cash and cash equivalents 2,788,940 (450,851) (148,238) (2,571,339) 41,336,535 (19,454,680) (11,635,956) (2,406,676) 2,734,343 (5,910,173) Cash and cash equivalents at the beginning of the year (6,168,925) (5,718,074) (5,569,836) (2,998,497) (44,335,032) (24,880,352) (13,244,396) (10,837,720) (13,572,063) (7,661,890) Cash and cash equivalents at the end of the year (3,379,985) (6,168,925) (5,718,074) (5,569,836) (2,998,497) (44,335,032) (24,880,352) (13,244,396) (10,837,719) (13,572,063) At the end of the year Cash in hand 113,717 80,887 124,665 101,972 52,052 28,155 55,482 34,894 60,114 58,164 Cash at bank 1,188,806 1,871,308 1,372,747 1,656,643 963,230 1,122,061 - Bank overdrafts (4,682,508) (8,121,120) (7,215,486) (7,328,451) (4,013,779) (45,485,248) (24,935,834) (13,279,290) (10,897,834) (13,630,227) (3,379,985) (6,168,925) (5,718,074) (5,569,836) (2,998,497) (44,335,032) (24,880,352) (13,244,396) (10,837,720) (13,572,063)
221 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 AS AT 31ST MARCH Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Cash flows from operating activities Excess of income over expenditure before taxation 91,884,357 123,626,033 82,378,684 80,015,734 98,359,806 93,395,170 78,645,483 17,284,809 40,402,379 34,463,361 Adjustments for Depreciation on property, plant and equipment 27,287,219 25,989,290 27,506,174 26,674,695 21,630,882 19,558,351 16,286,144 15,847,709 13,748,563 11,641,405 Amortization on intangible assets 653,788 630,633 124,424 124,425 124,425 Amortization of leasehold improvements 18,018,550 10,177,867 10,150,557 2,347,296 - Provision for gratuity 5,224,318 4,238,665 3,800,350 1,627,523 2,823,056 2,961,917 1,724,082 1,672,426 1,707,077 1,440,519 (Profit)/loss on disposal of fixed assets (103,544) (9,083) (50,154) (228,230) - (28,188) Interest income (51,274,845) (12,499,810) (10,717,210) (12,692,879) (16,557,661) (10,633,068) (6,560,247) (4,027,357) (3,439,402) (1,754,433) Dividend income (4,604) (4,297) (1,562) - (3,052) (22,681) - (14,686) (29,466) (10,187) Fair value (gain)/loss on investments 25,102 166,047 (219,146) 45,171 39,675 (18,312) 311,595 234,074 (99,776) 33,259 Operating income before working capital changes 91,710,341 152,315,345 112,972,117 98,141,965 106,417,131 105,013,147 90,407,057 30,968,787 52,289,375 45,813,924 Changes in working capital Decrease/(increase) in inventories 22,810 (572,780) 364,026 (1,185,757) 3,809,602 (2,469,021) (196,001) (467,196) 30,296 (8,123) Decrease/(increase) in debtors and receivables (1,948,993) 25,292,642 (86,954,837) (38,789,059) (35,298,644) (56,035,292) (34,709,157) (24,492,635) 537,158 (9,788,742) (Decrease)/increase in other payables and accrued expenses (19,420,212) 13,847,704 (2,339,841) (21,230,162) 10,465,607 12,008,799 9,404,582 5,174,984 6,905,845 3,254,550 (Decrease)/increase in deferred income (12,950,468) 2,870,892 66,842,808 (23,522,645) 6,737,424 21,400,578 23,705,789 14,747,815 2,016,756 13,896,570 (Decrease)/increase in retention payable (1,092,112) 1,357,970 199,311 1,637,091 267,413 (238,598) 209,777 443,630 37,315 12,100 Cash generated from operations 56,321,366 195,111,773 91,083,584 15,051,433 92,398,533 79,679,613 88,822,047 26,375,385 61,816,745 53,180,279 Gratuity paid (1,098,790) (611,910) - - (2,692,250) - (137,500) (191,840) - - Tax paid (15,591,334) (13,211,357) (8,095,865) (15,818,413) (3,050,952) (2,760,132) (1,924,601) (867,336) (412,717) (605,083) Net cash generated from/(used in) operating activities 39,631,242 181,288,506 82,987,719 (766,980) 86,655,331 76,919,481 86,759,946 25,316,209 61,404,029 52,575,196 Cash flows from investing activities Acquisition of property, plant and equipment (23,316,711) (61,832,845) (60,915,068) (35,908,457) (21,886,384) (21,952,975) (23,083,925) (29,682,669) (132,471,068) (14,451,900) Additions to leasehold improvements (3,791,501) - (3,024,235) (37,469,392) - Disposal proceeds of fixed assets 137,380 20,000 55,980 228,230 - 500,000 Acquisition of intangible assets (321,998) (6,095,767) - - (1,244,246) Withdrawal of/(investment in) fixed/Other deposit (47,501,703) (114,108,505) (54,820,729) 59,796,525 (38,816,835) (40,967,267) (36,961,361) 7,456,278 (29,825,987) (34,192,089) Interest income 51,274,845 12,499,810 10,717,210 11,909,393 16,557,661 10,633,068 6,560,247 4,027,357 3,439,402 1,754,433 Dividend income 4,604 4,297 1,562 - 3,052 22,681 14,686 29,466 10,187 Net cash flow from/(used in) investing activities (23,515,084) (169,513,010) (107,985,280) (1,671,931) (45,386,752) (52,036,263) (53,485,039) (17,684,348) (158,828,187) (46,879,369) Cash flows from financing activities Funds received/(utilised) during the year 6,113 (559,678) (150,677) (132,428) 67,956 660,502 89,937 (37,737) 158,502 - Receipt/(settlement) of borrowings (13,333,331) (11,666,669) 25,000,000 (44,998,400) (45,000,800) (10,000,800) 100,000,000 (11,606,000) Net cash generated from/(used in) financing activities (13,327,218) (12,226,347) 24,849,323 (132,428) 67,956 (44,337,898) (44,910,863) (10,038,537) 100,158,502 (11,606,000) Net increase/(decrease) in cash and cash equivalents 2,788,940 (450,851) (148,238) (2,571,339) 41,336,535 (19,454,680) (11,635,956) (2,406,676) 2,734,343 (5,910,173) Cash and cash equivalents at the beginning of the year (6,168,925) (5,718,074) (5,569,836) (2,998,497) (44,335,032) (24,880,352) (13,244,396) (10,837,720) (13,572,063) (7,661,890) Cash and cash equivalents at the end of the year (3,379,985) (6,168,925) (5,718,074) (5,569,836) (2,998,497) (44,335,032) (24,880,352) (13,244,396) (10,837,719) (13,572,063) At the end of the year Cash in hand 113,717 80,887 124,665 101,972 52,052 28,155 55,482 34,894 60,114 58,164 Cash at bank 1,188,806 1,871,308 1,372,747 1,656,643 963,230 1,122,061 - Bank overdrafts (4,682,508) (8,121,120) (7,215,486) (7,328,451) (4,013,779) (45,485,248) (24,935,834) (13,279,290) (10,897,834) (13,630,227) (3,379,985) (6,168,925) (5,718,074) (5,569,836) (2,998,497) (44,335,032) (24,880,352) (13,244,396) (10,837,720) (13,572,063)
222 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 VALUE ADDED STATEMENT VALUE ADDITION 2022/23 2021/22 Revenue 490,401,419 535,753,274 Other Income 61,455,533 17,914,765 Total 551,856,952 553,668,039 Less - Operating Expenses 275,108,375 268,913,165 Value Added 276,748,577 284,754,874 DISTRIBUTION OF VALUE ADDITION 2022/23 2021/22 To Employees as salaries & Other benefits 138,904,664 124,331,051 To Government as Income Tax 21,721,535 15,926,235 Depreciation & Amortization 45,959,556 36,797,790 Reserves 70,162,822 107,699,798 To Expansion & Growth 116,122,378 144,497,588 Value Distributed 276,748,577 284,754,874 To Employees 50% 44% To Government 8% 6% To Expansion & Growth 42% 51% To Employees To Government To Expansion & Growth 42% 50% 8% 2022/23 To Employees To Government To Expansion & Growth 51% 44% 6% 2021/22
223 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 BRANCH NETWORK CIPM KANDY No. 155 A, William Gopallawa Mawatha, Kandy. Tel : 0812 238 030 | 0812 238 031 | 0701 788 065 E-mail : [email protected] CIPM GALLE No. 114, Wakwella Road, Galle. Tel : 0912 231 106 | 0912 231 116 | 0701 788 075 E-mail : [email protected] CIPM KURUNEGALA No. 46, Mihindu Mawatha, Kurunegala. Tel : 0372 231 992 | 0372 231 990 | 0701 788 073 E-mail : [email protected] CIPM GAMPAHA No. 143, Ja –Ela Road, Gampaha. Tel : 0332060629 | 0332060529 E-mail : [email protected] AFFILIATED STUDY CENTRES CIPM NEGOMBO Benedict XVI Catholic Institute (BCI), 495, Minuwangoda Road, Bolawalana, Negombo. Tel : 0312 224 422 | 0312 224 333 | 0766 989 797 E-mail : [email protected] CIPM RATHNAPURA Sabaragamuwa Chamber of Commerce and Industry (SCCI), No. 1/8, Bandaranayaka Mawatha, Ratnapura. Tel : 0718 674 822 | 0452 223 283 E-mail : [email protected] CIPM VAVUNIYA LH1, Faculty of Business Studies, Vavuniya Campus, Mannar Road, Pampaimadu, Vavuniya. Tel : 0766360097 | 0242228231 | 0242228232 E-mail : [email protected]
224 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 CORPORATE SPONSORS
DRAFT 02 26.07.2023 ANNUAL GENERAL MEETING 2022 – NOTICE 1 ADVANCE NOTICE Date: 14th June 2023 Dear Corporate Member, NOTICE CONVENING THE ANNUAL GENERAL MEETING OF THE INSTITUTE – 29TH JULY 2023 (SATURDAY) It is hereby notified to all Members of the institute that the Annual General Meeting of the Institute will be held on 29th July 2023 at 16:00hrs. The Venue will be Waters Edge, 316, Ethul Kotte Road, Battaramulla. The Agenda for the Annual General Meeting is indicated below: 1. Call meeting to order by the President, CIPM – Mr. Ken Vijayakumar – Chartered FCIPM (SL) 2. Observe two minutes’ silence as a mark of respect to commemorate members who have passed away. 3. Read the notice convening the Annual General Meeting by Hony. Secretary, Mr. Priyankara Seneviratne (Chartered FCIPM) 4. Apologies. 5. Roll Call announced by Hony. Secretary Mr. Priyankara Seneviratne (Chartered FCIPM) 6. Consideration and adoption of Minutes of the Annual General Meeting held on 13th August 2022 7. Consideration and adoption of the Annual Report of the Institute covering the period August 2022 and up to July 2023 8. Consideration and adoption of the Audited Statement of Annual Accounts of the Institute for the year ended 31st March 2023 9. Consider any other resolution/s that was/were submitted conforming to the specific period given and recommended by the Council. 10. President’s Address. 11. Installation of the new President in office. 12. Address by the new President 13. Election of an Auditor 14. Election of Office Bearers. 15. Any other Business as the Council shall think deem necessary and appropriate. 16. Vote of thanks by Hony. Secretary – CIPM As per the Section No. 47 a, of the By-Laws, an independent Election Committee will be appointed by the President to conduct the election of Office Bearers and Council Members to the Council, for the Council year 2023/2024. You are kindly invited to be present. By order of the Governing Council Chartered Institute of Personnel Management, Sri Lanka (Inc.) Priyankara Seneviratne Hony. Secretary (Chartered FCIPM)
226 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 26.07.2023 NAME OF THE INSTITUTE Chartered Institute of Personnel Management Sri Lanka (Inc.) LEGAL FORM Founded in 1959 Incorporated by Act of Parliament No. 24 of 1976 Change of name by (Amendment) Act No. 31 of 2018 REGISTRATION NUMBER OF THE INSTITUTE P01/0362 REGISTERED ADDRESS “HR House”, # 43, Vijaya Kumaranatunga Mawatha, Narahenpita, Colombo – 05 CONTACT DETAILS Tel : +94 11 2199988, +94 11 2768278, +94 11 2809902 Fax: +94 11 2819988, +94 11 2199975 Email: [email protected] Web : www.cipmlk.org AUDITORS BDO Partners Chartered Accountants “Charter House” 65/2, Sir Chittampalam A Gardiner Mawatha, Colombo - 02, Sri Lanka. BANKERS Hatton National Bank PLC, Head Office Branch, HNB Towers, # 479, T.B. Jayah Mawatha, Colombo - 10 CORPORATE INFORMATION Designed & Produced by