Our Value Creation Story

O U R VA L U E C R E AT I O N S T O R Y
HOLDING TRUE TO OUR PURPOSE

23
Our Vision
To be a global corporate role model in
community-friendly national development
Our Mission
Serve the rural community, our customers
and all other stakeholders, through our
core business – food with love – and other
related businesses, based on the three main
principles of:
– Reducing the cost of living
– Enhancing youth skills
– Bridging regional disparity
by enhancing local and global markets.

1
Cargills
The challenging operating environment of the past The Management is confident the Company (Ceylon)
PLC
year has reinforced our commitment to the Cargills will be able to navigate through this turbulent
Annual
philosophy of community development. By growing environment. The investments we have made in Report
2022/23
with our partners, we have been able to create the past, as well as the selective investments we
shared value, give back to our communities, and will continue to make, will position the Company to
support the national economic recovery efforts. grow and expand its reach within the Sri Lankan
We continued to invest in building markets across market and beyond.
the country, expanding production capacity,
strengthening distribution channels, and driving
digitalisation across our business units. Despite the Imtiaz Abdul Wahid
challenges which prevailed, including high market – Group Managing Director
interest rates and difficulty in importing capital
goods, the Group invested Rs. 10.8 Bn. during the
reporting period.
Louis Page
– Chairman
04 22 24 30
PREAMBLE CHAIRMAN’S MANAGING TAKING
MESSAGE DIRECTOR’S STOCK
MESSAGE
04 THE CARGILLS JOURNEY
2 13 OUR LEGACY
CREATING DRIVING A DISCUSSION
Cargills
(Ceylon) 16 HIGHLIGHTS
SHARED PRODUCTIVITY ON HOW WE ARE
PLC
Annual
16 Financial Highlights
VALUE, GIVING TO PROVIDE FARING IN LIVING
Report
2022/23
18
2022/23
Business Impact Highlights
BACK TO OUR AFFORDABLE OUR PURPOSE
2022/23
COMMUNITY, NUTRITION
30 A REVIEW OF OUR OPERATIONS
20 OUR BUSINESS AND
31 Operating Segments
SUPPORTING 54 Shared Services
THE NATIONAL 56 COMMUNITY FRIENDLY

ECONOMIC NATIONAL DEVELOPMENT
RECOVERY 57
59
Our Approach to Sustainability
Reducing the Cost of Living
68 Bridging Regional Disparity
98 Healthy, Safe and Affordable
Nutrition
116 Enhancing Youth Skills
126 Building Equality, Diversity
and Inclusivity
150 Playing our Part for the Planet
CONTENTS
162 199 255
STEWARDSHIP FINANCIAL ANNEXURES
STATEMENTS
162 BOARD OF DIRECTORS 200 INDEPENDENT AUDITOR’S REPORT 256 ABOUT THE REPORT
167 CORPORATE GOVERNANCE 203 STATEMENT OF PROFIT OR LOSS 257 Stakeholder Engagement 3
AND OTHER COMPREHENSIVE 259 Materiality
INCOME Cargills
187 ENTERPRISE RISK MANAGEMENT 259 GRI Content Index (Ceylon)
PLC
Annual
204 STATEMENT OF FINANCIAL
191 ANNUAL REPORT OF Report
THE DIRECTORS ON THE POSITION 260 FIVE YEAR FINANCIAL SUMMARY 2022/23
AFFAIRS OF THE COMPANY

205 STATEMENT OF CHANGES IN 261 INVESTOR RELATIONS
195 STATEMENT OF DIRECTORS’ EQUITY SUPPLEMENT
RESPONSIBILITY
207 STATEMENT OF CASH FLOWS 263 GROUP REAL ESTATE PORTFOLIO
196 INDEPENDENT ASSURANCE REPORT
208 NOTES TO THE FINANCIAL 264 NOTICE OF ANNUAL GENERAL
STATEMENTS MEETING
ENCLOSED - FORM OF PROXY
INNER BACK COVER –

CORPORATE INFORMATION
CONTENTS
Scan to
view the PDF
PREAMBLE
THE CARGILLS
4
Cargills
Our business model was built step by step,
JOURNEY
(Ceylon)
PLC transforming Cargills from a traditional retailer
Annual
Report to a food company serving the needs of all
2022/23
communities across the country. Prior to
1983, the business was limited to 4 upmarket
department stores in Colombo, Nuwara Eliya,
Kandy, and Bandarawela, catering to an urban
From a traditional retailer demographic. At its inception in 1844, Cargills

was a general warehouse, import, and wholesale
to a leading food company business.
serving the needs of the

community
5
Cargills
Today, Cargills is Sri Lanka’s largest food (Ceylon)
company, renowned for its role in building PLC
Annual
communities and creating sustainable markets Report
2022/23
for local producers. This change in the business
model started in 1983, when the first “Cargills
Food City” supermarket was opened at Staple
Street in Colombo. Though many in Sri Lanka
see Cargills as the pioneer of modern trade in
the country, in reality, there were a handful of
standalone supermarkets before us. However,
recognising the opportunity in the market,
Cargills entered the supermarket industry and
more importantly, took on the mantle of taking
supermarkets beyond Colombo, introducing the
concept to communities across the country.
The Cargills Journey

Cargills Fort building in Opening of the
Colombo (top) and the 1st supermarket at Staple
Cargills building in Kandy Street Colombo 02, on the
(bottom) 26th of October 1983
PREAMBLE
6
Cargills
(Ceylon)
This marked the Company’s first step into the We invested in supply chain logistics, improved
PLC food industry. During the years that followed, handling, and introduced refrigerated transport
Annual
Report we gradually expanded the supermarket and storage to maintain freshness. These
2022/23
business to different parts of the country. investments reduced post-harvest losses
However, the real turning point came in 1999. substantially. Taking a step further, we started our
During a chance encounter with farmers in rural farmer extension services, which to date provide
Hanguranketha, located in the central hills of technical inputs to farmers. Our innovative
Sri Lanka, we heard of the struggles faced by approach to building up the capacity and
the farming community. We understood the profitability of the farming community has been
farmers’ dependence on middlemen to access recognised locally and internationally. Our model
the market. They also lacked access to credit to was studied by the World Bank and the Gates
purchase inputs. The strong influence wielded Foundation, which found that the benefits arising
by middlemen meant that farmers lacked power from our supply chain included higher prices for
to negotiate and received a low price for their the farmer, lower prices for the consumer, and
produce. Weak logistics and handling practices reduced wastage.
also caused a significant amount of post-harvest
losses. In order to address these supply chain “We propose that a case study be developed
inefficiencies, we began to purchase directly about Cargills which highlights the information
from the farmers, giving them direct access supply and technical support networks which
have been developed to benefit smallholders,
to the market. By eliminating multiple layers
consumers and Cargills alike. Special attention
of middlemen from the supply chain, we were will be given to the multiplier impact that
able to provide a better price to the farmer. We Cargills has had on the broader agricultural
set up our first vegetable collection centre in Cargills collection centre sector in Sri Lanka. Lessons will be drawn
(top) and a farmer handing from this country-wide success story for the
Hanguranketha that same year. over the produce to a Cargills
agriculture extension officer
benefit of private and public sector initiatives
(bottom) in both South Asia and Sub-Saharan Africa.”
- WorldAginfo project report - Bill and
Melinda Gates Foundation, June 2007
PREAMBLE
7
Cargills
This journey that commenced in 1999 with base when competitors set up in close proximity (Ceylon)
a single truck transporting produce from to our stores. A venture which started due to PLC
Annual
Hanguranketha to Colombo has evolved to circumstance has now developed to become the Report
2022/23
become the largest agriculture related supply leading smallgoods processing business in the
chain in the country. Today, we are the single country serving supermarkets, institutions, and
largest collector of fruits and vegetables in the general trade, with a limited range of exports.
Sri Lanka.
“Another example of a leap-of-faith goal

comes from Cargills Ceylon PLC, the biggest
producer and retailer of food in Sri Lanka.
Cargills has embarked over the last decade
on an innovative approach to building up
the capacity and profitability of the farming
community in Sri Lanka.”
- Reinventing Management: Smarter
Choices for Getting Work Done, Julian
Birkinshaw, 2010, (Professor of Strategy and The Goldi
processing facility
Entrepreneurship, London Business School)
In 1993, we ventured into the smallgoods

processing industry, acquiring the ”Goldi”

brand and a processing facility to support our
Gates Foundation officials
during their field visit meeting retail operation. We had identified destination
farmers and visiting a
categories within our supermarkets. Fresh meat
collection center
and processed meats were such destination
categories, which had a loyal customer base.
The acquisition helped us retain this customer
PREAMBLE
8
Cargills
(Ceylon)
When we entered the Quick Service Restaurants When a multinational decided to move out
PLC (QSR) business in 1996 with the introduction of of Sri Lanka in 2002, we acquired their ice
Annual
Report the KFC franchise to Sri Lanka, we had a vision cream facility and converted it into a fresh
2022/23
to develop the poultry industry. Today, over milk-based ice cream operation by linking up
90% of raw materials used in our QSR business with smallholder dairy farmers. This marked
are sourced locally, building markets for local our entry into the dairy sector. We aspired to
poultry farmers and raw material suppliers. We replicate the successful dairy farming model
customised our menu to bring excitement to the of India which empowers smallholder famers.
local consumer, going beyond the traditional Two decades later, Cargills has become the
KFC offering and introducing new products such leading milk collector in Sri Lanka. The key to
as the KFC biryani and the KFC Kottu, which our success has been our innovation and focus
became local favourites. It was the first time a on value addition, which has expanded the
KFC franchisee had added biryani to the menu. market for dairy producers across the island.
Today, KFC is the market leader in Sri Lanka’s Not only did we make ice cream with fresh milk,
Dairy facility in
QSR industry. but we pioneered the introduction of fresh fruit Banduragoda
to ice cream with the launch of products such
as Fruit & Nut and Mango ice cream. Through
value addition, we were able to transform the
local ice cream industry from one which was
producing approximately 12 million liters in 2002
to a market of approximately 80 million liters per
annum, with our brands commanding over 40%
of the market share. Eight years later in 2010, we

acquired Kotmale, which was, at the time, a small
The first KFC outlet at the
value-added dairy company. Kotmale has since
Majestic City shopping complex evolved to become the largest value-added
dairy company in the country today.
PREAMBLE
9
Cargills
In 2002, we acquired the KIST business, which In 2005, we decided to document our journey (Ceylon)
was primarily involved in manufacturing jams, and share our learnings with the youth by PLC
Annual
cordials, and sauces. While we maintained setting up the Albert A. Page Institute (AAPI). Report
2022/23
and developed the existing product lines, the The Institute would go on to become the
turnaround of the KIST business came with the training academy for our team, professionalising
introduction of fruit nectars to the market, which and upskilling youth in the food retail industry.
we commenced shortly after our acquisition. We We introduced training programmes and
focused on developing fruit-based beverages accreditations from the US-based Independent
using fruits which are unique to Sri Lanka. Our Grocers Alliance (IGA) to expose our team to
innovative approach has established KIST as global training programmes and certifications.
the largest fruit-based beverage company in In 2008, we set up the Sarubima fund, a
the country today. Subsequently, we acquired a dedicated farmer welfare fund to support Scholarship distribution ceremony of
the Sarubima fund
water bottling plant and also introduced energy our agri and dairy farmer network. Over the
drinks and carbonated drinks to our portfolio, years, the Sarubima Fund has evolved into a
making KIST a complete beverage company. large entity through which Cargills empowers
farming communities by providing educational
scholarships for children, resources for up-
skilling and professional advancement, credit
insurance for farmers, and investment in local
infrastructure.

PREAMBLE
KIST processing
facility in Katana
10
Cargills
(Ceylon)
We became the first private enterprise to The Cargills Bank was first conceptualised
PLC venture into the Northern Province in 2004 with in 2011 and launched in 2014 with a vision to
Annual
Report opening of the Cargills Food City Express in be the most inclusive bank in the country by
2022/23
Vavuniya. Three years later in 2007, we opened leveraging the distribution and brand strength
our first outlet in Trincomalee, becoming the of Cargills. Lack of access to credit was one of
first private company to commence operations the cries of the farming community during our
in the Eastern Province. After the end of the 1999 encounter with farmers. With the opening
civil war, we accelerated our investments in the of the Bank, our intention was to support the
North and East, with the intention of supporting farmers and small and medium entrepreneurs
the peace which had been achieved by building who face significant challenges in accessing
sustainable livelihoods for the communities in credit. With access to the extensive Cargills
the region. We established retail outlets as well Food City network through an Agency Banking
as a processing facility in Kilinochchi, which arrangement, the Cargills Bank provides added
expanded the market for farmers and suppliers convenience and banking hours to customers.
in the region. We also set up vegetable and The bank benefits from the numerous partners
milk collection centres and made substantial and touchpoints across the Cargills Group
investments in logistics to link the agricultural including farmers, customers, distributors,
community of the North and East with markets general trade shops, service providers, suppliers,
across the country. In 2013, we established the and team members.
first shopping and entertainment complex in the
North with the Cargills Square mall in Jaffna.
Through this initiative, we were able to take an
international franchise to the North for the first

KIST Kilinochchi processing facility (top) and
time by setting up a KFC restaurant. Cargills Square mall Jaffna (bottom)
PREAMBLE
11
Cargills
In 2018, we established the Cargills Foundation When the pandemic struck in 2020, we were (Ceylon)
to identify and implement new initiatives in areas faced with a new set of challenges. While our PLC
Annual
beyond our core businesses. The Foundation’s first priority was to build the confidence of our Report
2022/23
first initiative, the Early Childhood Education team, we quickly re-engineered our business
(ECE) programme, commenced in 2019 as we to facilitate online orders and deliver essential
saw a need to support and advance preschool goods to our customers. This led to the launch
education in Sri Lanka. The ECE programme of our e-commerce business Cargills Online.
uses a blended learning approach to expose During this period, we also introduced the first
preschool-aged children to English as a second supermarket on wheels - a container filled
language, along with the basic concepts of with essential goods fitted to a truck - to take
STEAM (Science, Technology, Engineering, Arts groceries to the customer’s doorstep.
A customer making a banking transaction and Mathematics).
at a Cargills Retail outlet

Cargills Foundation’s Early Childhood Education Cargills Online e-commerce
programme for preschools delivery fleet
PREAMBLE
12
Cargills
(Ceylon)
Along this journey, we have grown our reach and Later this year, we will mark another milestone Our journey from an upmarket department
PLC scale across the country while remaining firmly in our journey as our supermarket business, the store to a leading food company has impacted
Annual
Report committed to environmental sustainability. As largest consumer retailer in Sri Lanka, celebrates communities across the country. While the
2022/23
a leading player in the FMCG sector, we have its 40th year. Earlier this year, we opened our journey ahead will undoubtedly have its own
pioneered plastic recycling initiatives, such as state-of-the-art distribution centre to support set of trials and tribulations, we will remain firmly
the “Paving with Plastics” programme where we the expansion plans of the company and to committed to our philosophy of building people
use Plastic Modified Asphalt Concrete (PMAC), streamline our logistics. The distribution centre and communities and taking hope where it is
made from non-recyclable waste plastic from will support several hundred suppliers, including needed the most.
our processing facilities, to pave car parks. We small and medium enterprises, access markets
are also the first in the dairy industry in Sri Lanka across Sri Lanka. “Today we are more than a retailer, more than
to undertake a voluntary assessment of our a manufacturer, we do more than buy, sell and
carbon footprint, reaffirming our position as a produce. We build people and communities
and take hope to where it is needed the
responsible manufacturer.
most. Today we are proud that CSR is our
BUSINESS”
- Ranjit Page - Deputy Chairman/CEO of
Cargills (Ceylon) PLC, at the World Bank,
Washington DC, “Building effective Public-
Private Partnerships” forum, 2007
The Cargills distribution centre

in Katana
First ever car park in Sri Lanka built with Plastic Modified
Asphalt Concrete (PMAC) in Walgama, Southern Sri Lanka
PREAMBLE
OUR
LEGACY 1996
Cargills secured the franchise
license of the vastly popular
international Quick Service 13
1844 Restaurant chain “KFC” and
opened it to the Sri Lankan
Cargills
(Ceylon)
Mr William Milne and Mr David Sime market PLC

Annual
Cargill started a warehouse, import Report
2022/23
and wholesale business in Colombo,
which later became known as the
“House of Cargills”
1993
Cargills invested in its
1946 first manufacturing facility
with the acquisition of the
The House of Cargills officially Goldi meat processing
became incorporated as a Public facility
Limited Liability Company
1981 1983
Cargills established its
Ceylon Theatres acquired a first supermarket at Staple
controlling interest in Cargills under Street in Colombo, under
the leadership of late the “Cargills Food City”
Mr Albert A Page brand
PREAMBLE
1999 2002 2008
14 Cargills entered the dairy industry with the acquisition of an
Established the first fruit Cargills Sarubima was
and vegetable collection ice cream facility in Banduragoda and launched the dairy modelled after the fairt trade
Cargills
(Ceylon) center in Hanguranketha, ice cream brand “Magic”. Cargills started the dairy farmer concept of investing back into
PLC
marking the beginning of the outgrower programme to support the collection of fresh the communities
Annual
Report direct sourcing model with milk. Cargills also diversified into agri-processing with the
2022/23
smallholder farmers. acquisition of the food brand “KIST” that same year.
2010 2013 2014

Cargills acquired the dairy Cargills secured the franchise license for TGI Fridays and Cargills Bank officially
brand “Kotmale” to further opened the first restaurant in Colombo. commenced operations,
expand the dairy business and The Company also launched the first Cargills Square mall in marking our entry into the
entered the confectionery Jaffna. financial services sector.
market with the acquisition of
Our Legacy
a biscuit facility
PREAMBLE
2022 2023
Launched the Cargills AAPI e-learning platform for training 15
Opened the state-of-art
and development of team members. distribution center in Katana Cargills
(Ceylon)
Opened the 500th Cargills Food City Outlet PLC
Annual
Report
2022/23
2017 2018 2019 2020

Expanded the Kotmale Dairy Cargills unveiled its The Cargills Foundation was Launched Cargills Online, the
plant, making it Sri Lanka’s first gourmet specialty established to oversee the Group’s e-commerce platform
first fully integrated dairy supermarket ‘Cargills Food social development initiatives
processing facility Hall’ at the Colombo City of the Group.
Centre Shopping Mall.
Expanded the Kotmale Cheese
Our Legacy
processing plant
PREAMBLE
FINANCIAL
16 Revenue – Profit before
Group taxation – Group
Cargills
HIGHLIGHTS
(Ceylon)
PLC 200 10,000
Annual
Report 160 8,000
2022/23
2 22/23
120 6,000
80 4,000
40 2,000
0 0
Rs. Mn.
Rs. Bn.
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
Profit after taxation – Total assets –
Group Group
6,000 125
4,800 100
3,600 75
2,400 50
1,200 25
0 0
Rs. Mn.
Rs. Bn.
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
PREAMBLE
-
Group Company
Revenue – Profit before 2023 2022 Change 2023 2022 Change
17
Rs. ’000 Rs. ’000
Company taxation – Company Rs. ’000 % Rs. ’000 %
Cargills
100 2,500 Operations (Ceylon)
PLC
Continuing operations
Annual
80 2,000 Revenue 195,617,899 136,691,993 43.11 36,062 31,013 16.28 Report
2022/23
Profit from operations 13,759,535 9,058,383 51.90 2,908,892 1,890,285 53.89
60 1,500
Profit before taxation 8,516,642 5,818,434 46.37 2,226,541 1,637,028 36.01
40 1,000 Profit after taxation 5,380,845 4,538,720 18.55 1,712,886 1,504,329 13.86
20 500
Financial position
0 0 71,265,687 16.01 20,158,404 0.04
Non-current assets 82,676,336 20,165,941
Rs. Mn.
Rs. Bn.
27,178,089 40.22 2,923,751 61.00

2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
Current assets 38,110,346 4,707,285
Current liabilities 59,656,935 41,001,806 45.50 8,028,976 4,199,696 91.18
Non-current liabilities 30,211,940 28,320,455 6.68 4,963,394 6,280,719 (20.97)
Capital and reserves, minority interest and

other equity 30,917,807 29,121,515 6.17 11,880,856 12,601,740 (5.72)
Profit after taxation - Total assets –
Company Company
Per share data (Rs.)
2,000 25 Basic earnings per share 20.82 17.63 18.12 6.65 5.84 13.87
Dividends per share 8.50 6.10 39.34 8.50 6.10 39.34

1,600 20
Net assets per share 105.08 98.94 6.20 46.11 48.91 (5.72)
1,200 15 Market value per share 233.00 182.50 27.67 233.00 182.50 27.67
Financial Highlights
800 10
Cash flow
400 5
Net cash generated from/(used in)
0 0 – Operating activities 7,580,046 14,166,421 (3,028,943) (846,072)
Rs. Mn.
Rs. Bn.
- Investing activities (9,469,239) (11,437,225) 3,137,753 (635,597)

2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
PREAMBLE
- Financing activities 2,378,614 (1,212,727) (238,431) 1,854,563
TRUSTED BRAND PEOPLE
LEGACY DEVELOPMENT
AAA Brand 11,033

Cargills Food City among the permanent employees
Top 10 brands in Sri Lanka with
a brand value of US$ 115 Mn.
BUSINESS 50:50 gender

and AAA Brand rating
18
Cargills
equality
Brand of the
IMPACT
(Ceylon)
PLC Achieved 50:50 gender
Annual
Report Year equality at Group level
2022/23 Voted Supermarket Brand
HIGHLIGHTS
of the Year by consumers at
SLIM-KANTAR People’s Awards
in March 2023
68.5%
2 22/23
employees outside
Western Province
Cargills Quality Dairies
received the
Silver Award 8%
at the Presidential employees with
Environment Awards 15+ years of service
2021-2022
Rs.
17,730,255/-
Revenue per employee
PREAMBLE
REDUCING THE ENHANCING BRIDGING REGIONAL HEALTHY, SAFE PLAYING OUR PART
COST OF LIVING YOUTH SKILLS DISPARITY AND AFFORDABLE FOR THE PLANET
NUTRITION
32 new Cargills Food City 10,000+ 283 MT

The Agriculture
Modernisation 4,425,160
outlets opened, bringing the students and 1,343 teachers Project engaged
of GAP-certified Good kWh
total to 512 outlets empowered through Early
Childhood Education (ECE) 620 new farmers Harvest produce, 110MT of
agrochemical free BeeSafe
renewable energy consumption
Programme with Rs. 241 Mn. investments in
produce, 39MT of Organic renewable energy 19
All 25 districts The Dairy Enterprise Rice and 36MT of Agriculture
Development Initiative, produce purchased
294 new preschools
Cargills
Only supermarket chain upskilled 1,330 dairy farmers (Ceylon)
present across all
25 districts in Sri Lanka
joined the Cargills ECE 101,719 m3 PLC
Annual
programme
Rs. 58 of water recycled or treated
Report
2022/23
Million Litres
24,530,000/-
Lowest price SLT-MOBITEL PEOTV and of fresh milk procured
for high quality produce and

Charana TV partner with
Cargills Foundation to develop
gifted to 774 students through
Sarubima scholarships
370 MT
essential consumer goods
among all local supermarket
English Language skills among
young learners
27 of waste plastic recycled
chains Rs. healthier value-added
Partnered with state 8,802,270/- food and beverage options

introduced to mass market
137 m3
100% universities to support R&D invested in community
development projects
waste oil collected for
conversion to bio diesel
locally sourced
agricultural produce
800+ SMEs 3,414
Opened a fully automated registered under the “Village trees planted under
distribution centre to Home” entrepreneurship “Breath of Life” initiative
development programme
Business Impact Highlights

Rs.
84,935,299/-
invested in dairy farmer welfare
activities
Rs. 11,796,657/-
PREAMBLE
invested in community meals
programmes
OUR
20
BUSINESS
Cargills
(Ceylon) RETAIL 74.3%
PLC
Annual
OPERATIONS
Report
2022/23
Direct store
deliveries
Local suppliers Physical visit

Bulk
and imported warehouse for
goods commodities
Online delivery
512 2
Retail stores Dark stores Customers
Central
distribution
centre
Collection Central
centers for processing
Farmer
fresh produce centre
network
for fresh
produce
Central
processing
Seafood
centre
collection
for fresh
PREAMBLE
seafood
FOOD AND BEVERAGE
MANUFACTURING AND 21.1%
DISTRIBUTION OPERATIONS
Export
markets
Suppliers HORECA and

Institutions General
trade shops
21
9
Processing Cargills
facilities Distributors (Ceylon)
PLC
Modern Annual
Report
trade 2022/23
Local
Farmers
Warehouse
RESTAURANT 4.6%
OPERATIONS
Takeaway
Central 62
Suppliers Dine in
commissary Restaurants
Our Business
Delivery
PREAMBLE
CHAIRMAN’S
MESSAGE
22
Cargills CREATING SHARED VALUE, GIVING
BACK TO OUR COMMUNITY, AND
(Ceylon)
PLC
Annual
Report
SUPPORTING THE NATIONAL

2022/23
ECONOMIC RECOVERY
Dear shareholder, as businesses, reducing disposable incomes, sustainable growth. Improved foreign exchange
lowering investment, and driving up the cost liquidity, declining price levels, a pickup in
I am pleased to share the Annual Report and
of doing business. The consumer was severely tourism and migrant remittances, an appreciation
Financial Statements of Cargills (Ceylon) PLC for
burdened by higher prices as inflation reached of the Sri Lankan Rupee, and a normalisation
the year ended 31 March 2023.
record highs of 70% during the reporting period. of local and global supply chains have created
However, a series of reforms that have been put renewed confidence in the Sri Lankan economy
Sri Lanka faced its worst economic crisis in the
in place by the Government and the Central in recent months. These factors along with the
post-independence era during the past year.
Bank of Sri Lanka (CBSL) have now stabilised recent announcement of the IMF Extended Fund
The year began with an economic crisis, which
the economy and restored a sense of normalcy. Facility programme could lead to a rebound in
spilled over to a social and political crisis. The
We welcome the Government’s commitment economic growth.
economic contraction and the subsequent
to reforms and encourage policies that will
tightening of monetary and fiscal policies have
set Sri Lanka on a path towards long-term
had a significant impact on individuals as well
Challenges have reinforced our our local sourcing capabilities and support Dividends
commitment to give back to the to local Micro, Small and Medium Enterprises The Group declared an interim dividend of
community (MSMEs) during the year. The Cargills Group is Rs. 3.50 per share for the reporting period,
The challenging operating environment of the one of the largest contributors to the economy which was paid on 08 December 2022. This is an
past year has reinforced our commitment to the and remains the single largest collector of fruits, increase from the interim dividend of Rs. 2.00 per
Cargills philosophy of community development. vegetables, and fresh milk in Sri Lanka. Our share for the previous financial year. Subsequent
By working closely with our partners, we purchases alone generated a direct income to the reporting period, on 16 May 2023, the
have been able to generate shared value, of Rs. 15.8 Bn. for the local farming community Board of Directors proposed a second interim
give back to our communities, and support during the year under review. While adding dividend of Rs. 8.50 per share for the reporting
value to local production, we also continued period. This is an increase from the final dividend
the national economic recovery efforts. We
to support capacity building initiatives of the of Rs. 5.00 per share for the previous financial
continued to invest in building markets across
year. 23
the country, expanding production capacity, farming community and reinvested back into
strengthening distribution channels, and driving the community through our very own Sarubima Cargills
digitalisation across our business units. Despite fund. The Group provided Rs. 25 Mn. worth Appreciation (Ceylon)
PLC
the challenges which prevailed, including high of scholarships to children of the farming I would like to express my heartfelt gratitude to Annual
Report
market interest rates and difficulty in importing community during the reporting period under our teams. Many of our colleagues braved long 2022/23
capital goods, the Group invested Rs. 11.1 Bn. the Sarubima Fund initiative. fuel queues to ensure continuous operations,
during the reporting period. which helped the Company serve the needs
of our customers seamlessly and enabled us
Financial Performance
to deliver a steady market to our suppliers and
While continuing to make selective investments The Group posted a revenue of Rs. 195.6 Bn. the farming communities throughout the year. I
to grow the business, we have remained (up 43% YoY), an EBITDA of Rs. 20.2 Bn. extend my appreciation to our shareholders for
focussed on consolidating our strengths, (up 41% YoY), an operating profit of Rs. 13.8 Bn. your faith in the Cargills philosophy and wish
rationalising expenditure, and improving (up 52% YoY) and a profit after tax of Rs. 5.4 Bn. to thank our valued customers and partners for
productivity across all business units and (up 19% YoY) for the year ended 31 March 2023. your continued trust in us. Finally, I express my
shared services. As a result of this focus, we Corporate income taxes were revised upwards sincere thanks to my colleagues on the Board
have managed to maintain market leadership during the reporting period to 30%. Net finance for their counsel and support in steering our
in our categories and sustain margins despite costs of the Group increased 76% due to higher Company to new heights. Through the pandemic
the impact of rising input costs and operating and the height of the economic crisis, Cargills has
market interest rates which prevailed during
expenses. continued to invest in the community, reaffirming
the year under review. The Group’s net debt
our confidence in Sri Lanka. We will continue to
position increased as the Management made
uphold this commitment and believe in the future
Rs. 15.8 Bn. generated for the farming a conscious decision to increase inventory
of our country.
community as direct income holdings, which were financed through short-
The Group continued to work closely with the term working capital facilities, in order to ensure
Yours Sincerely,
farming community, which is an integral part of sufficient stock of goods and raw materials for
our business model, to improve their capacity continuous operations. As supply chains have (Signed)
and reduce the cost of production. The farming now normalised, and current market interest Louis Page
CHAIRMAN’S MESSAGE
community had been severely impacted by rates are in decline, we anticipate a decrease in Chairman
the ban on chemical fertiliser, which was financial costs which should aid profitability in 5 July 2023
subsequently reversed. Moreover, we increased the coming year.
MANAGING
DIRECTOR’S
MESSAGE
24
Cargills
DRIVING PRODUCTIVITY
TO PROVIDE AFFORDABLE
(Ceylon)
PLC
Annual
Report
NUTRITION
2022/23
External Events
The Sri Lankan economy contracted 7.8% in economic activity to a grinding halt while
2022, the sharpest contraction seen in recent inflation rose sharply due to the impact of the
times. All key sectors, including agriculture, currency depreciation and import controls which
industries, and services, recorded a contraction. restricted supply. The Central Bank increased
A severe shortage of foreign exchange its policy rates by 700bps in April 2022 in a bid
caused disruptions to the supply of essential to stabilise the economy. A series of reforms,
commodities and electricity during the first including monetary and fiscal tightening which
half of the reporting period. This also led to a commenced thereafter, have since been able
reduction in the availability of raw materials for to restore some stability in the economy. The
the manufacturing industry, causing significant second half of the reporting period saw an
production-related disruptions. As a result of the improvement in the availability of goods, reduced
worsening external sector situation, Sri Lanka disruptions to the electricity supply, and an
declared a standstill on its foreign currency easing of inflation. Though there was a greater
obligations in April 2022 for the first time in its sense of stability during the second half of the
history. These disruptions caused significant reporting period, increases to personal income
hardships to consumers and businesses. taxes which came into effect from January 2023
Restricted mobility and power outages brought and high market interest rates further dampened
consumer spending.
Sustainability Technology People
As a leading player in the agriculture and food processing sectors, Though we took a cautious approach to our The economic crisis has caused a
we have undertaken pioneering initiatives to move towards investments during the reporting period due significant amount of skilled and
sustainable agriculture, cleaner energy consumption and eco- to high borrowing costs, the Group continued unskilled worker migration from
friendly packaging and waste management with the objective of its digitalisation initiatives across all business Sri Lanka. While some have already
reducing our carbon footprint and protecting our planet for future units, highlighting the importance placed migrated, many others continue to
generations. As a signatory to the UN Global Compact (UNGC), we by the Management on driving technology seek opportunities overseas. While
remain committed to upholding the principles of the UNGC. We adoption across the Company. The Sales Force recognising the stark reality faced
also align our operations and investments with the UN Sustainable Automation (SFA) system was upgraded during by all businesses, we have taken
Development Goals. the year to strengthen the distribution of our measures to actively promote the
branded products across the general trade, development of our colleagues
25
The new distribution centre, which was opened in February 2023, which account for over 60% of total business for and provided all necessary
is equipped with 1 megawatt of solar power and a rainwater the FMCG sector. Moreover, we have also made support to ensure their well-being Cargills
(Ceylon)
harvesting system, and the parking lot at this facility has been investments to digitalise the agriculture and during the economic crisis. The PLC
paved with Plastic Modified Asphalt Concrete (PMAC) using dairy supply chains of the Group, which play an Group continued to offer learning Annual
Report
4,550 kg of non-recyclable waste plastic. During the reporting integral part in our business. These investments and development opportunities 2022/23
period, our dairy facility in Banduragoda was awarded the Silver will lead to traceability of produce and milk to team members across the
Trophy at the Presidential Environmental Awards 2021/2022. We collected by the Company, reduced wastage Company through the Cargills AAPI
believe this is a testament to the holistic approach we have taken in the supply chains, and improved efficiencies e-learning platform. While some
to safeguarding our environment. which will drive cost savings and greater training takes place on the job, the
benefits for the consumers and producers. Our e-learning platform offers access
Corporate Governance data analytics team was expanded during the to vast amounts of job-related
reporting period as the Group continued to training programmes and courses
Transparency in governance has been a cornerstone of the
invest time and effort in harnessing the potential as well as material to improve soft
Cargills Group. We take our responsibility towards the customer
of the vast amounts of data collected through skills. Numerous team engagement
and our community seriously and the Group maintains stringent
our day-to-day operations. initiatives were recommenced
policies against bribery and corruption. We expect all team
during the year after a hiatus of two
members to share our commitment to integrity and adhere to our
years due to pandemic restrictions.
policies against corrupt conduct and unethical behaviour. At the
same time, as a leading provider of employment in the country,
Cargills is committed to providing equal opportunities for all
employees irrespective of gender, race, religious beliefs, physical
abilities and social backgrounds.
MANAGING DIRECTOR’S MESSAGE

Senior Management Appointments It has the capacity to distribute 50,000 cubic The sector recorded topline growth of 41.2%,
Our efforts to develop the next level of feet per day and will streamline the logistic during the review year driven by both transaction
leadership across the Company have operations of the Group, bringing improved and basket value growth. While baskets have
progressed considerably over the last two efficiencies to the supply chain. been inflated by higher prices, transactions have
years. Each of the core operating segments grown due to more conversion from general
are now headed by a Managing Director, who is The retail business experienced a significant trade and an increase in the frequency of
responsible for overall business operations as increase in operating costs during the reporting purchases as customers reduced the weight
well as business development. We are proud to period, due to higher cost of electricity, interest, of the basket due to the high cost of living.
note that most of the senior teams across the rates and fuel, as well as higher taxes. The Despite rising operating costs, the Retail sector
Group consist of colleagues who have been operating environment was extremely volatile recorded an improvement in operating margins,
developed from within the Company. during the first five months of the year, with on account of strong turnover growth and a
26 many challenges including curfews which led number of cost optimisation measures adopted
to outlet closures for four days, shortages of by the team. The increase in net finance costs
Cargills
(Ceylon)
Operational Review diesel for distribution of goods, power cuts, and was substantial due to high market interest rates.
PLC
Annual Retail product shortages. Steps were taken to increase It should also be noted however, that the net
Report
2022/23 As the largest consumer retailer in the country inventory and stock outlets with sufficient levels finance costs were impacted by a higher base
by both reach and turnover, Cargills Retail of essential products. This led to a significant from the previous reporting period due to a
continued to deliver on its promise of value increase in the working capital requirement, large exchange loss on trade payables.
and convenience to the consumer. During the which was financed at the prevailing high market
reporting period, 32 new outlets were added, interest rates. The next seven months saw a Food and Beverage Manufacturing
including the 500th outlet in October 2022. We more stable environment with greater availability and Distribution (FMCG)
leveraged on this vast store network to provide of products, improved availability of fuel, and
The FMCG sector of the Group consists of dairy,
ration packs and food vouchers to communities a reduction in the frequency and duration of
convenience food, beverages, culinary, and
in need by partnering with the UN World Food power cuts.
confectionery categories. The sector recorded
Programme (WFP), the Indian High Commission, a 48.1% growth in topline during the reporting
and other organisations. Temporary “pop-up” Prices of goods increased sharply from March
period as selective price increases were taken to
stores were also set up to distribute essential 2022 and peaked around September and
offset the sharp increase in input costs. Though
food to communities in underserved areas in reduced to some extent thereafter. High inflation
volumes were impacted from November 2022
order to meet the immediate food security coupled with the increase in personal income
onwards, all categories recorded volume growth
challenges faced by these communities due to taxes had a considerable impact on customer
during the first five months of the reporting
the economic crisis. demand. We also noticed some customers
period. Margins contracted as a result of higher
migrating to lower priced items. At the same
input costs, increased factory overheads, and
The opening of the new Distribution Centre time, there has been some customer conversion
higher distribution costs. Higher input costs
to modern trade, as supermarkets were relatively
(DC) in Katana was another key milestone of the were driven by rising global freight rates and
reporting year. The new DC was built with a better stocked than smaller general trade shops.
commodity prices, and the depreciation of
Rs. 4.4 Bn. investment and spans 325,000 As supply chains have now stabilised, we are
the Sri Lankan Rupee. Raw material availability
square feet making it the largest distribution taking steps to normalise inventory holdings.
was also a key concern for the manufacturing
centre operated by a food company in Sri Lanka. sector. Steps were taken to increase inventory
holdings and some key ingredients were directly
imported to improve raw material availability.
Sri Lanka’s sovereign rating downgrade caused Despite higher farmgate prices and supply chain Convenience Food
many challenges in obtaining Letters of Credit bottlenecks due to the lack of fuel availability, we The convenience food segment is our
(LCs) for imported goods. However, this situation continued the collection of milk by leveraging processed meats business. It also engages
improved with banks resuming LCs in recent the strength of our vast supply chain. At the in supplying fresh meat to the Cargills Retail
months due to improved foreign exchange end of the reporting period, we operated 36 channel while the processed meats are supplied
liquidity in the market. milk chilling centers across the country and over to the modern trade, general trade, and the
1,000 milk collection points, and over 13,800 HoReCa channels. We also export a limited
Some prices have been revised downwards in smallholder dairy farmers supplying to us on a range of products and have plans to further
recent months as input costs have started to daily basis. We continued to provide our farmer expand our export range during the coming year.
decline. Nevertheless, prices of most inputs base with a stable marketplace, in addition to During the period under review, we invested in
are still significantly higher on a year-over-year supporting them with access to animal feed, a breeding farm to cater to a growing export
basis. While declining input prices will support veterinary services, and other technical services opportunity and to further strengthen our supply
27
a pickup in gross margins in the near term, we to improve milk production. chain. The Management is pleased to note that Cargills
expect pressure from overheads and distribution the processed meats business has grown to
(Ceylon)
PLC
costs to remain elevated. The normalisation Price increases and the power cuts which become the market leader in the category. Annual
Report
of local and global supply chains in recent prevailed until February 2023 impacted the take- 2022/23
months has also supported a reduction in the home ice cream category. Impulse ice cream The category recorded a strong performance
working capital requirement, which should products fared better given that per unit prices during the first half of the year, as sharp
support profitability of the business. Numerous are lower, which makes them more affordable increases in prices of seafood and fresh meat
productivity enhancement measures have been and attractive in a rising inflation environment. drove consumers to sausages and meatballs,
undertaken across our processing facilities to We also witnessed higher demand for UHT milk which were viewed as a cheaper protein
curtail rising cost pressures. on account of changing consumer preferences alternative. However, from October 2022
and the milk powder shortage. We leveraged our onwards, with seafood and fresh meat prices
Dairy Sales Point Distribution (SPD) channel which stabilising, we saw an impact on demand. We
includes trishaws, vans, and parlor trucks, to have introduced new variants, such as smaller
The largest within our manufacturing business,
drive the out-of-home consumption. pack sizes of existing products to recover
the dairy sector saw an increase in the farmgate
prices of fresh milk due to intense competition volumes and make products more affordable
While there is a notable impact to consumer to the consumer. In recent months, we have
between collectors and rising cost of
spending since November 2022, we are pleased reduced the prices of key SKUs to improve
production. Higher cost of feed and fuel drove
to note that the strength of our brands – affordability to the consumer, which have
up the cost of production for farmers. Availability
Cargills Magic and Kotmale – coupled with our supported a recovery of volumes.
of feed was also a concern during the reporting
distribution network, supported sales growth
period, which impacted milk production.
and minimised the impact on volumes. Both
Competition among collectors intensified due
brands are now well-established national brands
to the shortage of imported milk powder in the

serving over 65,000 general trade shops in
market. Over the years, Sri Lanka’s milk supply
addition to the modern trade and the HoReCa
has not grown commensurately with the demand
channels.
for milk due to weaknesses in milk production,
which had added significant pressure on fresh
milk prices.
Beverages, Culinary, and Distribution internally generated cashflows. It is noteworthy
Confectionery As a trading Company dependent on imported that the restaurants segment surpassed Rs. 1
The KIST brand has a presence across products, Millers was restricted to a limited Bn Profit After Tax for the first time in its history,
beverages, culinary, and confectionery range of agency lines due to the ongoing during the reporting period. Outlets in the
categories. Though KIST was traditionally import restrictions. As a result, the business Colombo suburbs and outside of Colombo
renowned for cordials, jams and sauces, the was dependent on the sales from milk powder continued to show tremendous growth potential.
brand has been extended across multiple new (Bonlac and Milca brands) and the canned fish We added five new KFC outlets during the
product variants with tremendous success. categories. reporting period, extending our reach to 17
Within the beverage category, KIST is now the districts and all nine provinces of Sri Lanka. The
market leader in the fruit-based beverages TGI Fridays restaurant, which has been relocated
Restaurants
sub-category. Innovation and new product to the One Galle Face mall in Colombo 01, has
28 development has been a key driver of our
The restaurant business continued the growth seen a turnaround and is now profitable.
trend of last year despite the turbulent macro
Cargills success. Recent introductions such as the
(Ceylon) environment. There were many challenges
PLC KIST Ride energy drink have become an instant Real Estate
including import restrictions which affected the
Annual success in the market. Similarly, within the The Group owns several properties in strategic
Report availability of flour and cooking oil, prolonged
2022/23 confectionery range, we have focused on value- locations of the island and has continued
power cuts which increased operating costs,
added confectionery which fills a gap in Sri to look at ways to unlock the value of such
temporary road closures due to the social and
Lanka’s market by producing international quality properties by developing. In 2012, we introduced
political upheaval which impacted footfall, and
products at competitive prices. the Cargills Square Concept – mini malls
higher taxes. Availability of chicken was also
hosting Cargills Food City, KFC, and Ceylon
a concern as the rising cost of animal feed
To address challenges arising from imported Theatres as anchor tenants, with the objective
reduced the chicken supply in the market.
raw material availability, we have increased our of providing affordable entertainment and
Despite these challenges, the restaurants
local procurement by engaging closely with shopping experiences for customers in areas
segment which consists of 61 KFC outlets and
local producers. We have expanded our local outside the Colombo city limits, where there are
one TGI Fridays outlet recorded a 52.0% growth
sourcing of mango and tomato by increasing gaps for family-friendly leisure/entertainment.
in revenue compared to the previous year.
the number of farmers we work with while our The success of the original Cargills Square set
Transactions recorded a strong pickup as our
agriculture modernisation programme has up in Jaffna in 2012, prompted the opening
value for money offerings provided customers
supported the existing farmer base to improve of a second in Gampaha in 2017 and the third
with affordable dining options. Selective price
their productivity. We are confident of being Cargills Square in Dematagoda in 2020. The
revisions were undertaken; however, they were
able to secure the entire tomato requirement fourth Cargills Square was opened in Katubedda
not adequate to offset the increases in input
through local production in the near-term. In in May 2023 with an investment of Rs. 1.5 Bn.
costs as the Management focused on ensuring
order to minimise the impact of these set backs The malls in Dematagoda, Jaffna, and Gampaha
affordability and driving volumes. In order to
on the consumer and other stakeholders of recorded commendable occupancy levels
mitigate the impact of rising input costs, our
the company, steps have also been taken to during the reporting period. The Cargills Square
restaurant business also resorted to direct
consolidate our general trade sales force to mall in Bandarawela will be opened later in 2023.
importation of key ingredients. The Management
maximise productivity, improve the product mix,
is pleased to highlight that the expansion of the
and drive frequently selling SKUs in order to
restaurants segment is completely funded by
improve profitability. Furthermore, we will look
to improve utilisation of spare capacity at our
facilities.
Strategic Focus Outlook We believe the combination of these favourable
To curtail the impact of the high cost of living The Management is pleased to note that there conditions will lead to a better business
and to make our products more affordable is renewed optimism and confidence in the environment and a pickup in consumption
to the customer, the Management has taken Sri Lankan economy. The appreciation of the towards the latter part of 2023, though
numerous measures to improve productivity currency in recent times, a pickup in tourism consumer demand may remain subdued in
across all businesses and shared services. and remittances, declining inflation which is the near-term. The Management is confident
Our team continued to focus on driving their expected to move into single digit territory by the Company will be able to navigate through
strengths, reengineering processes, improving the end of 2023, and a reduction in market this turbulent environment. The investments
capacity utilisation, rationalising unproductive interest rates bode well for an economic we have made in the past, as well the selective
assets, streamlining logistics and distribution, rebound in the current year. Interest rates were investments we will continue to make, will
and digitalizing back-end operations. revised downwards by 250bps in June 2023 position the Company to grow and expand its
reach within the Sri Lankan market and beyond. 29
and expectations are for further reductions
In addition to productivity enhancing measures during the months ahead. The improved stability Cargills
(Ceylon)
within the Group, we have also invested in is likely to attract more tourism, which is a key Appreciation PLC
strengthening our partners, such as the dairy driver of foreign exchange for Sri Lanka. With I extend my sincere appreciation to our team, for Annual
Report
and agriculture farmers who engage with us on the government embarking on a series of their commitment to serve our customers and 2022/23
a daily basis. The farming community has faced state-owned enterprise reforms, there is also the wider community. I also wish to thank our
many recent setbacks which have affected increased interest among foreign investors. The partners and customers, for their continued trust
their productivity and incomes. The Company IMF programme which was secured in March in the Cargills brand and in our team.
is investing resources behind agriculture and 2023 is viewed as a strong vote of confidence in
dairy development, to increase food production the Sri Lankan economy and the Government’s Thank you,
and drive down prices. Through these efforts, debt sustainability plan.
the Management is confident of reducing the
cost to the consumer and improving profitability Improved availability of fertiliser has led to an
during the year ahead. increase in agriculture production in the market.
This is a positive sign for the rural economy, as
higher production levels will drive more income
back to the farming community. Better pass- Imtiaz Abdul Wahid
through of lower global commodity prices as Group Managing Director
well as improved local agriculture production, 5 July 2023
boosted by a strong Maha season harvest, have
brought down the prices of fresh produce in
the market in recent months. We also expect
a relaxation of the import controls placed by

the Government as foreign exchange liquidity
improves, which will further support price
stability.
TAKING STOCK
A REVIEW
30
Cargills
(Ceylon)
PLC
Annual
OF OUR
Report
2022/23
2021/22
OPERATIONS
OPERATING SHARED
SEGMENTS SERVICES
31 54
OPERATING
31
Cargills
SEGMENTS
(Ceylon)
PLC
Annual
Report
2022/23
Overview
Over the years, the Cargills Group has diversified its operations
to meet the varying needs of the consumer market. Today, the
business has developed into Sri Lanka’s premier source for
assorted agriculture, processed food, beverages, pharmaceuticals,
and other dry goods. Our investments in local agriculture,
processing, sourcing, and procuring have helped preserve the
country’s foreign exchange, while providing the population with
affordable nutrition that lives up to international standards. The
organisation has established a comprehensive network of retail
and dining establishments, bringing about efficiencies in other
areas such as replenishment, inventory management, delivery, and
end-to-end logistics.
TAKING STOCK
Navigating Through Challenges
Supply chains encountered major disruptions
during the year under review, as a consequence
of the fuel deficit, electricity cut-offs, and unrest
across the nation arising from the economic
crisis, which caused curfews and periodic
limitations to movement. Delivery of goods,
in particular fresh food transportation, was
impeded by the fuel shortage and resultant
challenges. To facilitate undisrupted supply
across the country and to meet consumer
32 demands sufficiently, the Company made
Cargills dedicated efforts to manage logistics by adding
(Ceylon)
PLC trucks supplementary to the routine transport
Annual fleet during this time. Steps were implemented to
Report
2022/23 equip outlets with ample amounts of necessary
produce, building consumer confidence and
trust as product availability became a major
consumer pain point during this period. The
negative impacts of the regular power outages
felt across all operations were managed to an
extent by switching to grid-independent power
generators, albeit the increase in operating costs
due to the escalating cost of fuel.
Members of the Cargills Team across the

island demonstrated remarkable resilience and
commitment in the face of challenges, ensuring
that the operations of the Company remained
consistent and seamless despite the many
obstacles. In the midst of limited availability
of fuel, the manufacturing plants within the
Group took measures to augment fuel storage
Operating segments
capacities, which facilitated uninterrupted

manufacturing and processing of products.
However, both primary distribution (from factory
to distributors) and secondary distribution (from
distributors to stores) were affected by the fuel
deficit, resulting in limited quantities of stock
TAKING STOCK
availability despite our best efforts.

Food Retailing
Cargills Retail is Sri Lanka’s most expansive modern retail presence, with 512 outlets spread far
and wide to cover all 25 districts of the island. Cargills Foods Company (Pvt) Ltd oversees the
management of this operation, which benefits from a decentralised set up consisting of 1 Central
Distribution Centre, 13 Collection Centres, 2 Central Processing Centres, and a 24-hour delivery
system inclusive of a cold-chain.
Retail Outlet Growth

Retail Description Opened During Total
FY 2022/23
17 290 33
Food City Modern retailing experience providing consumers access to high-
quality, affordable produce, products and over the counter medicine Cargills
(Ceylon)
Food Hall An extended supermarket with a café, bakery, salad and juice bars – 1
PLC
alongside live action stations for a unique gourmet food experience Annual
Report
Express Select Cargills outlets at strategic locations with 24*7 accessibility 15 221 2022/23
all year round for enhanced customer experience

Total 32 512
Produce Collection Centres Processing Centres
1. Nuwara Eliya Vegetable and Fruit Processing Unit (VPU)

2. Bandarawela Fish Processing Unit (FPU)
3. Boralanda
4. Thambuttegama
5. Thanamalwila
6. Ruwalwela
7. Tispane
8. Dambulla
9. Hanguranketha
10. Norochchole
11. Alaveddy
Operating segments
12. Nadunkerny
13. Kilinochchi
TAKING STOCK
34
Cargills
(Ceylon)
PLC
RETAIL 74.3%
Annual
OPERATIONS
Report
2022/23
Direct store
deliveries
Local suppliers Physical visit

Bulk
and imported warehouse for
goods commodities
Online delivery
512 2
Retail stores Dark stores Customers
Central
distribution
centre
Collection Central
centers for Processing
Farmer
Centre
Operating segments
network fresh produce

for fresh
produce
Central
Processing
Seafood
Centre
collection
for fresh
TAKING STOCK
seafood
REVOLUTIONISING
SUPPLY CHAIN
MANAGEMENT
35
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
As a major player in the Sri Lankan food This will not only coalesce all of Cargills’ addressing price inflations and maintaining
retail industry, Cargills is dedicated to food distribution activities across a supply chain efficiencies despite
continually enhancing supply chain supplier base of more than 900 vendors, unprecedented challenges.
logistics across Sri Lanka, focusing on but will also enhance efficiency within
building markets, empowering local the Group’s logistics operations, from Reaffirming our strong environmental
entrepreneurs, and driving economic demand planning to cost reductions, with commitment through best practices,
activity at the grassroots. In a bid to benefits directly passed on to consumers the car park of the facility was paved
further augment its operations during as well as suppliers. Powered by an with Plastic Modified Asphalt Concrete
the year under review, Cargills opened extensive distribution fleet covering 47 (PMAC), re-purposing 4,550kg of
a new distribution center (DC) in Katana rounds across Sri Lanka every day, this non-recyclable waste plastic from our
which is the largest of its kind operated centralised distribution centre is now manufacturing facilities. The facility is also
by a food retailer in Sri Lanka. The better equipped to provide our growing equipped with a 1MW solar power system
investment amounting to Rs. 4.4 Bn. SME vendor base with direct access to as well as a rainwater harvesting system.
yielded a 325,000 square-foot facility markets. The strategy also acted as a
across a 28-acre expanse, capable of proactive measure to counter the import The distribution centre has been designed
handling 20,000 palates, powered by constraints that came into effect during with the intention of expanding in the
Operating segments
cutting-edge technology and systems the economic crisis, with Cargills placing future to further benefit our base of
conforming to global standards. greater focus and effort into local approximately 20,000 farmers, creating
sourcing and promoting homegrown export opportunities for local food
products among consumers, thus producers by leveraging the enhanced
supply chain infrastructure.
TAKING STOCK
Cargills Online 2022/23
Cargills led the charge with creating quality fresh produce, and increasing the Highlights
supermarket convenience to customers during standards of packaging to encourage more
the pandemic era by making swift adoptions to people to the e-grocery market. To improve Cargills continued to expand its retail footprint across
create the e-commerce website and the Cargills the customer experience, we curate delivery the island, growing in line with a prudent expansion
strategy of brick-and-mortar presence supplemented
Online mobile application to provide undisrupted schedules around the most convenient times for
by Cargills Online, which also continued to service
supply to customers despite mobility restrictions. the customer and ensure a high quality after- an emerging market segment with fast-evolving
With some consumer patterns of the pandemic sales service. To continuously grow and meet purchasing habits.
era continuing to further develop and evolve, the needs of our customers, Cargills Online
the Cargills Online operation continued to be frequently conducts surveys and focus group
strengthened during the year under review to discussions which helps us understand the pulse
36
meet the evolving needs of the consumers. of the online consumer. Qualitative insights are
Cargills backed by quantitative findings by the data
(Ceylon)
PLC Cargills Online, the e-commerce arm of the analytics team, enabling us to make fast and
Annual
Report
Cargills Retail sector, continued to grow its proactive business decisions to suit the needs
2022/23 presence in the online market during the of the modern e-commerce consumer.
reporting period. The e-commerce business
operates through 2 dark stores which service We also leverage data analytics to understand
online orders within the Colombo District consumer preferences and customise
and adjacent cities. We have launched many communication of offers and promotions via
pioneering initiatives to grow the e-commerce different communication channels.
market, including daily free delivery campaigns,
promotions for fresh produce, providing high
Operating segments
TAKING STOCK
Food and Beverage
Manufacturing (FMCG)
The Food and Beverage Manufacturing Sector of
Cargills consists of dairy, beverages, condiments
and culinary, convenience food products, and
confectionery. Cargills food and beverage
brands are widely distributed across Sri Lanka,
reaching close to 67,000 general trade stores
in addition to the Cargills Retail network as
well as the HORECA (Hotels, Restaurants and
Catering) sectors, while also exporting limited
volumes to the US, EMEA, and Asia. In order to
37
ensure a seamless dairy product supply, Cargills Cargills
(Ceylon)
has integrated dairy farmers through more than PLC
1,000 collection points connected to 36 Cargills Annual
Report
Milk Chilling centres. As for the meat processing 2022/23
sector, the Company draws from multiple

medium and large-scale suppliers in the poultry
and livestock industry.
The Food and Beverage Manufacturing

business of Cargills operates via nine
key central production centers and locations
across the island.
Operating segments
TAKING STOCK
UHT Storage in
Banduragoda
Dairy Factory
38
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Dairy KIST Product Range Convenience Food

(Beverages, Confectionaries, (processed meats)
Condiments and Spices etc.)
3 manufacturing plants in 5 manufacturing plants in Ja Ela The food and beverage manufacturing
Banduragoda, Kelanimulla and Katana, Kilinochchi, Matale plants of Cargills form the nucleus
Bogahawatte (Confectionaries), Knuckles (Water) ,
Operating segments
of its production operation. The

Katana (Spices)
manufacturing units adhere to industry-
recognised quality assurance protocols.
TAKING STOCK
Cargills
Distribution
Centre
39
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
FOOD AND BEVERAGE

MANUFACTURING AND 21.1%
DISTRIBUTION OPERATIONS
Export
markets
Suppliers HORECA and

Institutions General
trade shops
Operating segments
Processing
facilities Distributors
Modern
trade
Local
Farmers
TAKING STOCK
Warehouse
Dairy Standards Brands Products
Cargills Quality Dairies (Private) Kotmale Dairy Products Magic, Kotmale, Dairy Ice Cream
Limited Banduragoda (Private) Limited Heavenly –
Fresh and
FSSC 22000 (Version ISO 22000:2018 – Food most widely Flavoured Milk
5.1) - Food Safety System Safety Management consumed dairy
brands with market- Yoghurt and
Certification System
leading positions in Yoghurt Drinks
ISO 22000:2018 - Food Safety ISO 9001:2015 – Quality the ice cream and
Curd
Management System Management System value-added dairy
markets Cheese
HACCP Halal Accreditation
Council Sri Lanka Butter
40 GMP
Certification
ISO 9001:2015 – Quality
Cargills Environment Protection
(Ceylon) Management System
PLC
License
Annual ISO 14001:2015 – Environment
Report
2022/23
Management System
Halal Accreditation Council Sri
Lanka Certification
Environment Protection
License
Operating segments
TAKING STOCK
Beverage and Standards Brands Products
Culinary Cargills Agrifoods Limited Halal certification for entire KIST – Jams
IS0 22000:2018 – Food product portfolio One of the most Sauces
Safety Environment Protection loved, trusted, and
Management System License long-established food Cordials
HACCP brands in the country
Fruit-based
GMP CPC Lanka Limited Nectars
ISO 9001:2015 – Quality ISO 22000:2018 – Food Fresh Juices
Management System Safety Management System
SLS certifications: Energy Drinks
HACCP
• SLS265 - Jams Mineral Water
GMP 41
• SLS214 - Fruit cordials
ISO 9001:2015 – Quality Condiments
• SLS221 - Artificial Cargills
Management System (Ceylon)
cordials and flavoured
PLC
drinks SLS894 - Certification for
Annual
• SLS730 - Squash bottled drinking water Report
2022/23
concentrates Environment Protection
• SLS260 - Tomato sauce License
and Tomato ketchup
• SLS835 - Chilli sauce
and Hot chilli sauce
• SLS729 - Ready to drink
fruit beverages
Operating segments
TAKING STOCK
Processed Meats Standards Brands Products
Cargills Quality Foods Goldi, Sam’s, Finest – Fresh and Processed

Limited Cargills Quality Foods is the Meats
ISO 9001:2015 - Quality largest processed meats Fresh and Processed
Management System company in Sri Lanka Seafood
ISO 22000:2018 - Food Ready to Eat
Safety Management Convenience Foods
System
ISO 14001:2015 -
Environment Management
42 System
Cargills Environment Protection
(Ceylon)
PLC
License
Annual
Report
2022/23
Operating segments
TAKING STOCK
Confectionery Standards Brands Products
Cargills Quality KIST, KIST Magic Biscuits and

Confectionaries Confectionery
(Private) Limited
IS0 22000:2018 Food
Safety Management
System
HACCP
GMP
Halal certification for the 43
entire product portfolio
Cargills
Environment Protection (Ceylon)
PLC
License
Annual
Report
2022/23
Operating segments
TAKING STOCK
2022/23
Highlights
A number of infrastructure, machinery and KIST Beverages

system upgrades were carried out across the A flow meter has been installed to monitor the output of the KIST Nectar lines, and the Carbo-Cooler
Cargills manufacturing facilities during the year unit of the carbonated beverage production line was modified to improve carbonation efficiency.
under review. Product safety and quality was ensured by introducing a digital scanning system to enhance seaming
accuracy and for continuous monitoring of the canning line, to avoid fermentation and low fizziness of
Convenience Food sector the carbonated beverages.
During the year under review, the Company
44 acquired a breeding farm to support the supply KIST Confectionaries
chain of the processed meats business, with A new cooling unit was added to the production line, doubling the current output of the chocolate
Cargills
(Ceylon) a view to further expanding the exports of enrobing line and the number of products being enrobed.
PLC
processed meats.
Annual
Report Additionally, the plant introduced a plastic (PET/PVC) tray removal project to reduce the use of plastic
2022/23
Dairy Sector whilst maintaining the quality and appearance of the product, thereby also reducing the cost of
Cargills Quality Dairies improved their production packaging.
capacity by replacing the old ice-cream cone
filing machine with a high-capacity machine GHG Emissions
complete with robotic arms. The UHT mixing Facility Scope 1 GHG
emissions
Scope 2 GHG
emissions
Scope 3 GHG
emissions
storage capacity was also enhanced to achieve
a 50% increase in production capacity.
Cargills Quality Dairies 9,367.76 tCO2e 8,077 tCO2e 5,267 tCO2e
Cargills Agri Foods 1,769 tCO2e 1,110 tCO2e 983 tCO2e
To monitor the safe and fast delivery of raw
Cargills Quality Confectionaries 585.53 tCO2e 781.53 tCO2e
milk to the Kotmale Plants, milk bowsers
were equipped with GPS tracking systems. Cargills Quality Foods 2,188.07 tCO2e 1,845.64 tCO2e 694.55 tCO2e
Additionally, Kotmale introduced a new Multivac Cargills Foods Company 43,172 tCO2e 48,486 tCO2e
(retail chain)
Packaging system for its cheese varieties to
enhance food safety and final product quality
95% of all refrigerants consumed at Cargills Quality Dairies is with zero Ozone Depleting Potential
during the reporting period. A new Mozzarella
(OPD) owing to the use of ammonia gas, which has the highest refrigeration efficiency.
cheese production line was also installed at
Bogahawatte, while a further building was added
Cargills Quality Dairies made significant progress in managing Green House Gas emissions in its
to increase storing capacities of raw materials
Operating segments
operations during the year, with some strategic investments paving way for reduced impact in the
and packing materials. The year in review also
year under review. The old ice cream cone-filling machine was replaced with a high-capacity, energy
saw the expansion of our milk chilling and
efficient machine, and the UHT mix storage capacity was increased due to the installation of a new
storage capacities at the Kelanimulla Plant.
UHT mixing plant in January 2022. This led to a 50% increase in production capacity. In the previous
year, a bulk LP gas storage facility was also installed, which reduced the amount of previously
unusable and wasted LPG stored in cylinders.
TAKING STOCK
Kotmale
Dairy Factory
45
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Operating segments
TAKING STOCK
Trading and Distribution
Millers Limited, the Trading and Distribution arm
of the Cargills Group, provides logistics for the
importation, storage and transport of a range
of frozen and ambient temperature products
to over 30,000 retailers across the country.
In addition, the Company holds the rights to
distribute Kodak Digital Imaging products as well
as Noritsu Photographic Printing Equipment from
Japan. Through an automated distribution and
field sales network, Millers brings the goodness
46
of some of the leading international FMCG
Cargills brands such as Bonlac, Milca, Kraft, Cadbury,
(Ceylon)
PLC Oreo, Toblerone, Rauch, Lorenz to
Annual
Report
Sri Lankan consumers, through an efficient
2022/23 logistics process.
Operating segments
TAKING STOCK
2022/23
Highlights
In the year 2022, the Sri Lankan
economy was severely affected
by US Dollar deficiency and
the resultant implementation
of government restrictions on
a wide range of imports. As a
result, Miller’s trading business
was also significantly impacted
as imported products account
for the majority of the portfolio.
This caused Miller’s to focus its 47
business more on the limited range
of commodities that were not Cargills
(Ceylon)
impacted by the new regulations PLC
during the year under review. Annual
Among these commodities, the Report
2022/23
Company primarily concentrated
on Bonlac and Milca milk powder
and canned fish categories as
these were deemed essential
consumer products. Despite
dealing with a limited range of
goods, Millers was able to maintain
steady business growth and
expanded its assortment with the
addition of two new international
brands, namely Sanitol detergents
and San Delo range of pasta
through prudent optimisation of
available resources.
Operating segments
TAKING STOCK
Restaurant Operations
Cargills is the exclusive franchisee of KFC and
TGI Fridays in Sri Lanka. Since its introduction in
1996, KFC has developed into one of the most
well-known international eating establishments in
Sri Lanka, with 62 restaurants established across
the country as at the end of the reporting
period. Cargills’ creative fusion menu, featuring
local elements to better cater to the Sri Lankan
palate, has been fundamental to the success
of KFC, and many of these Sri Lankan-inspired
48
dishes have now been added to the franchise’s
Cargills regional product catalogue. In 2013, Cargills
(Ceylon)
PLC launched TGI Fridays in Sri Lanka, to help meet
Annual
Report
the growing demands of the country’s hospitality,
2022/23 entertainment and fast-food entities.
Operating segments
TAKING STOCK
2022/23
Highlights
KFC expanded its presence in the
island by adding 5 new outlets to
its widespread network, providing
employment to 900 Sri Lankan youth
by the end of the review year. TGIF
restaurant continued to consolidate its
presence in Sri Lanka, counting a team
of 15 staff members. In tandem with
the evolving consumer trends in the
post-pandemic era, the channel mix
of the Cargills restaurants continued 49
to be diversified, with delivery through
our own fleet and third-party vendor Cargills
(Ceylon)
partnerships providing greater PLC
contribution to overall business growth. Annual
Report
2022/23
With the opening of 5 new locations
during the reporting period, KFC now
has a presence in all 9 provinces of
Sri Lanka. Prior to this year, KFC did not
have a presence in the Uva and North
Central Provinces, which have now been
addressed. In terms of districts, KFC has
a presence in 17 of the 25 districts in
the country.
RESTAURANT 4.6%
OPERATIONS
Take away
Operating segments
Central 62
Suppliers Dine in
commissary Restaurants
Delivery
TAKING STOCK
Financial Services
Financial inclusion and access to economic
resources are paramount to the advancement
of Sri Lanka and are particularly important for
agrarian farming communities. Cargills Bank was
established in 2014, jointly owned by Cargills
(Ceylon) PLC and our holding company
C T Holdings PLC, with the aim of serving the
agricultural and micro, small, medium enterprise
communities whilst providing financial advice
and assistance to these segments which are
50
often overlooked by the traditional banking
Cargills system. Our extensive range of services provided
(Ceylon)
PLC through the Cargills Bank network includes
Annual
Report
savings accounts, investments planners, credit/
2022/23 debit cards, consumer loans, agriculture and
microfinance, SME and business banking loans,
and even trade facilities. Customers can also
avail of our digital banking services, providing
24/7 access and ultimate convenience.
Furthermore, Cargills Bank accounts can be
accessed through Cargills Food City outlets
across the nation for further ease of access.
Operating segments
TAKING STOCK
2022/23
Highlights
The Bank delivered commendable results in 2022 despite an unfavourable
economic climate. While results were eroded by increased provisions for
portfolio impairment, strong operational performance bolstered by an
increase in the deferred tax asset carried on its Balance Sheet due to
the corporate tax rate rising to 30%, resulted in the Bank recording a
post-tax profit of Rs. 488 Mn. for the year. Fitch Ratings’ credit rating for
the Bank was downgraded from A+ (lka)/RWN during the year reflecting
the deterioration of the operating conditions in the country, yet it still
remains at A (lka)/RWN, which is on par with, and in some cases better
than industry peers.
51
Acknowledging the economic impact of our decisions on customers,
we proactively implemented measures to manage our loan portfolio Cargills
(Ceylon)
responsibly. The Bank provided loan moratoriums and restructuring for PLC
customers to allow them to maintain their business operations and financial Annual
security. Additionally, we passed on the benefits of our lower-than-market Report
2022/23
interest rates on housing and personal loans to benefit fixed-income
earners and enable continuity of loan payments.
Throughout the reporting period, Cargills Bank has been actively involved
in the “Village to Home” initiative by Cargills Group to provide financial
assistance, guidance, and services to the Micro and SME communities in
the country, providing a platform to engage a wide network of customers.
The Bank further demonstrated its commitment to SME development in
challenging times by granting working capital loans, and moratoriums to
Small and Micro businesses throughout the year. Additionally, we have
been providing farmers in the agricultural and dairy industries with low-
interest loans to incentivise growth in these sectors. The Bank increased
its presence in local communities by launching eight Cargills Bank MINI
branches within local Cargills Food City outlets, while two bank branches
were opened in Negombo and Anuradhapura to further widen coverage
and elevate reach and service levels. A mobile banking branch was also
launched during the reporting period, supporting our farming network as
well as enterprising micro entrepreneurs in the communities in which we
operate.
Looking ahead, following the extended deadlines set by the Central Bank
of Sri Lanka, the Bank is actively engaged in discussions to meet regulatory
requirements for the listing on the Colombo Stock Exchange and capital
augmentation in the ensuing year.
Operating segments
TAKING STOCK
Real Estate and Property Management
For several years, Cargills has incorporated the Cargills has identified real estate development
development of properties for the placement as a strategic focus of growth with the
of retail locations and restaurants as an potential to achieve scale and attract additional
integral part of its business model. In 2012, we equity capital for future developments.
introduced the Cargills Square Concept – mini The Boards of Directors for Cargills and its
malls hosting Cargills Food City, KFC, and Ceylon controlling company, C T Holdings PLC (CTH),
Theatres as anchor tenants, with the objective approved the consolidation of all properties
of providing entertainment and shopping assigned for development under The Empire
experiences for customers in areas outside Investments Company (Private) Limited. This
the Colombo city limits, where there are gaps serves as the Group’s dedicated property
52
for family-friendly entertainment. The success development subsidiary. Empire Investments
Cargills of the original Cargills Square set up in Jaffna was acquired with a 53.43% stake by Cargills,
(Ceylon)
PLC in 2012, prompted the opening of a second in while CTH holds 46.57%. This includes CTH’s
Annual
Report
Gampaha in 2017 and the third Cargills Square two properties that would be used for large-
2022/23 in Dematagoda in 2020. These shopping and scale development projects, and the two
entertainment complexes are an investment for ongoing Cargills development properties. The
the youth of the country, to provide them with a Company’s restructuring efforts were geared
safe and exciting place to enjoy themselves with towards capitalising on existing properties while
family and friends. concurrently establishing mini-malls in suburban
locations, where the need for family-friendly
multifaceted development projects presents
lucrative investment opportunities.
Operating segments
TAKING STOCK
2022/23
Highlights
The development of the
Katubedda and Bandarawela
projects continued during the year
under review. The Cargills Square
mall in Katubedda was completed
and inaugurated in May 2023
(shortly after the end of the period
under review). Construction work
for Cargills Square in Bandarawela
is nearing completion and is
expected to be launched during 53
the first half of the 2023-24
financial year. Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Operating segments
TAKING STOCK
SHARED
54
Cargills
SERVICES
(Ceylon)
PLC
Annual
Report
2022/23
Human Resources Sales Cargills Online

The Group rolled out the first phase of a cloud Distributors across the Group’s manufacturing The product roadmap for the year saw
HRIS (Human Resources Information System) to sector are in the process of rolling out a improvements to the user interface of both
enhance the experience of all team members Distributor Management System (DMS), while the mobile app and website as well as the
and improve the productivity and efficiency of Area Sales Managers and Sales Representatives substantial functionality upgrades aligned to the
the HR function. of the Group are being onboarded onto a new with customer feedback.
Sales Force Automation. The combination of
Agri-Collection systems will enable the Sales Team to serve Cyber Security
existing customers better and efficiently
Cargills is in the process of digitizing the Throughout the year, a number of tests were
onboard new customers to grow market share.
entire procurement process of fresh fruits and conducted in collaboration with the Group’s
vegetables from its extensive farmer network cyber security partners to strengthen the
across collection centres located nationwide. Kfc.lk security perimeter of all IT infrastructure and
A new website was launched for KFC to serve data assets.
the chain’s fanbase with “Finger lickin’ good”
food with a better user experience to build on
the strong loyalty the brand has built over
TAKING STOCK
the years.
55
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Shared Services
TAKING STOCK
COMMUNITY
56
Cargills
(Ceylon)
PLC
Annual
FRIENDLY
Report
2022/23
NATIONAL
DEVELOPMENT
HEALTHY, BUILDING
OUR BRIDGING SAFE AND EQUALITY, PLAYING OUR
APPROACH TO REDUCING THE REGIONAL AFFORDABLE ENHANCING DIVERSITY AND PART FOR THE
SUSTAINABILITY COST OF LIVING DISPARITY NUTRITION YOUTH SKILLS INCLUSIVITY PLANET
TAKING STOCK
57 59 68 98 116 126 150

OUR
57
Cargills
APPROACH TO
(Ceylon)
PLC
Annual
Report
2022/23
SUSTAINABILITY
Cargills has long been a leader in sustainable and accountable corporate citizenship.
Guided by a vision to catalyse meaningful change in the wider communities we serve, we
have invested in six distinct fields to advance the well-being and prosperity of the nation:
Reducing Bridging Healthy, Safe Enhancing Building Equality, Playing our Part
the Cost Regional and Affordable Youth Diversity and for the Planet
of Living Disparity Nutrition Skills Inclusivity
TAKING STOCK
58 Our strategic sustainability agenda sets the course for the The UN Sustainable Development Goals (SDGs) provide further guidance and
Cargills
Company’s adherence to responsible business practices that are direction to the sustainability strategy of Cargills, giving us an ideal course to
(Ceylon) aligned with accountable environmental practices, meaningful contribute to the economic recovery and sustainable development of Sri Lanka.
PLC
Annual social impact, and ethical governance procedures. Cargills is a member of the United Nations Global Compact (UNGC); a global
Report
2022/23 movement of sustainable companies taking strategic action to advance societal
The sustainability agenda of Cargills is driven from the top goals and align operations with universal principles on human rights, labour,
where our leadership takes accountability not only for the environment, and anti-corruption. It is in line with such commitments that our Group-
financial profitability of the organisation but also for measurable wide strategies, governance structures, corporate policies, commitment statements,
performance standards against identified sustainability indicators. and codes of conduct are developed so that sustainability and corporate
Our strategic investments in sustainable projects have uplifted responsibility are imbued into our everyday operations.
communities and improved the lives and livelihoods of people
across Sri Lanka.
Our Approach to Sustainability
Contribution
TAKING STOCK
to SDGs
59
Cargills
(Ceylon)
REDUCING
PLC
Annual
Report
2022/23
THE COST OF
LIVING
Cargills has been responsive and proactive in addressing the long-term challenge
of rising living costs in Sri Lanka, particularly in underdeveloped communities. The
pandemic heightened and further exposed the already existing socioeconomic
gaps, which Cargills had already identified during the early years of rolling out
its retail operation across the country. Thus, Cargills strived to reduce costs and
increase efficiencies throughout its retail value chain, with the objective of making a
meal more affordable for the average Sri Lankan consumer.
TAKING STOCK
As the unprecedented economic crisis in Sri
Lanka continued to deepen throughout the
fiscal year of 2022/2023, the inflation rate in
Sri Lanka was significantly accelerated by the
lagged effects of expansive monetary policies
and revised domestic fuel and gas prices,
electricity tariffs, and global commodity prices.
The considerable depreciation of the rupee
greatly contributed to the heightened import
inflation. Furthermore, an increase in global
oil prices and the March 2022 fuel pricing
60 regulations, along with the 2021 ban on chemical
Cargills
fertilisers, contributed to the higher prices
(Ceylon) and production costs across multiple sectors.
PLC
Annual Inflation peaked during the month of September
Report
2022/23 with the Colombo Consumer Price Index (CCPI)
and the National Consumer Price Index (NCPI)
reaching 69.8% and 73.7%, respectively.
Inflation showed signs of reversing from October

2022 onwards, and consequently, headline
inflation measured by the CCPI and NCPI
dropped to 57.2% and 59.2% respectively year-
on-year in December 2022, compared to 12.1%
and 14.0% observed in the same period in 2021.
By March 2023, the inflation rate moderated to
50.3% year-on-year according to the CCPI, due
to tighter monetary and fiscal policies which
were adopted in 2022, strengthening of the
Sri Lankan rupee, improvement in agriculture
production, and better pass-through of declining
global commodity prices. Hyperinflation in Sri
Lanka in 2022-2023 drove up the cost of living,

placing a disproportionate burden on vulnerable
individuals and communities.
TAKING STOCK
The Cargills’ Commitment to
Food Security and Affordable Nutrition
Cargills entered the Sri Lankan food retail landscape in 1983 and swiftly
established its market dominance across the island by expanding beyond
the urban and suburban areas, focusing on untapped markets. To distinguish
itself, the company focused on providing affordable quality products, pricing
innovation, and nutrition-centric service. The business embedded itself in local
society by shaping supply chains, empowering farmers, and raising employment
and income levels. Cargills also launched a 365-day Lowest Price Challenge
in 2012 to curb the cost of living for local communities. This established the
company as a business built on trust which creates direct and indirect job
opportunities, and offers an enhanced retail experience.
61
Cargills
(Ceylon)
Number of New Cargills PLC
Outlets opened in 2022/23 1

Annual
Report
2022/23
Northern
Express Outlet 1 Province
Express Outlet 1 1
North
Express Outlet 2 Central
Province
2
Food City 2
2
North
Western
Food City 1 Province 1 Eastern
Province
Central
Food City 1 Province
20 1

Food City 12
1
Express Outlet 8 Uva
Western
Province Province
Sabaragamuwa
Express Outlet 1 Province
3
Food City 1
Sourthern
TAKING STOCK
Province
Express Outlet 2
Optimising 2022/23
our Supply Chain
Highlights
The year under review saw The Group was also able to
tumultuous conditions for the leverage its growing distribution
supply chains across the country. network island wide to ensure
The fertiliser ban, rising input costs, accessibility to essential food and
and increasing fuel prices impeded house supplies for its consumers.
production and transport alike. The Company further endeavoured
Moreover, declining agricultural to realise this impact in the lives of
and industrial production only those in vulnerable communities
worsened the diminished capacity by partnering with the World Food
and heightened demand due to Programme (WFP), the Indian
62 import restrictions. These issues High Commission, and multiple
were compounded by the conflict Non-Governmental Agencies
Cargills in Eastern Europe, a region
(Ceylon) (NGOs) as outlined on pages 63
PLC renowned as the “breadbasket of to 64. Cargills partnered - with
Annual the world”, increasing the prices of the WFP to source and distribute
Report imported agricultural commodities. emergency food to districts
2022/23
endangered by food insecurity and
In response, Cargills devised presented beneficiaries of WFP
several strategies to help minimise food vouchers with redeemable
the impacts on stakeholders offers at Cargills Retail stores.
across its entire supply chain and Furthermore, “pop-up” stores were
to work towards the Company’s created to further extend the food
vision to make food and nutrition distribution effort.
affordable to all. Cargills provided
a secure marketplace for local
farmers and producers to not only
sustain their product availability
but also to ensure a wider choice
for their customers.
The launch of the new Distribution

Centre (DC) in Katana is a
milestone achievement of the
Company during the year under
review. Thanks to the ambitious
expansion of the Cargills Retail
chain and the Group’s burgeoning
food manufacturing business, the
DC endows improved operations

with streamlined logistics.
Currently, the Katana DC is one
of the largest facilities of its kind
operated by any single food
company in Sri Lanka.
TAKING STOCK
Project Title Overview Targeted Groups Cargill’s Involvement Project Locations
Feed a Child In response to the ongoing Children in Sri Lanka who are As the retail partner, we are Nuwara Eliya and
Programme economic crisis and growing malnourished will be supported committed to delivering high- quality Anuradhapura
prevalence of household food during this six-month period. Height, nutrition packs at a consistently low Districts
insecurity, the Sri Lanka College of weight, and other relevant metrics price while supporting the delivery
Paediatricians initiated the “Feed of the beneficiaries will be tracked of these items to the targeted
a Child” nutrition programme in and registered in an online database areas. We also provide transparency
collaboration with the Family Health monitored by the Family Health and accountability for the project
Bureau and Red Cross Society Bureau. The assistance of a local financials alongside single-point
Sri Lanka. This programme was pediatrician will also be sought to communication, easy access, and
launched in the Nuwara Eliya District, ensure the healthy development of convenience for project coordinators
with one of the highest malnutrition the children is properly monitored. An to ensure smooth execution. To date,
rates in the country and has the independent audit firm will be involved Cargills has also contributed 28,000
63
potential to be extended to other to audit financial records associated Kotmale Milk 180ml packs free of Cargills
areas in the future. Healthy food with the project. charge to the programme. (Ceylon)
PLC
items were identified by experts, and
Annual
Cargills contributes to the project as Report
the retail partner facilitating the food 2022/23
packs. Under the programme each

beneficiary (child) receives
Rs. 3,500 worth of nutrition every
two weeks, for a period of six
months.
Nutrition Programme The project aims to aid 590,000 Financially disadvantaged households To ensure the success of the project Island-wide
by the World Food beneficiaries living in vulnerable and increase reach, we established
Programme (WFP) communities distributed across eight six temporary outlets and deployed
districts in Sri Lanka. two mobile supermarkets specifically
for WFP beneficiaries, in addition to
the Cargills' outlets in the vicinities

TAKING STOCK
Project Title Overview Targeted Groups Cargill’s Involvement Project Locations
Piyawara Nutrition The Hemas Outreach Foundation Selected pre-schoolers attending Nutrition packs were assembled and Eastern, Uva and
Programme and the Hoppers Foundation, the Piyawara Pre-Schools across distributed to the nearest Cargills Northern Provinces
London collaborated to provide Sri Lanka (Piywara pre-schools is outlets for handover. ‘Go Green’ bags
nutrition packs to pre-schools in a flagship project by the Hemas were provided free of charge as a
some of the most impoverished Outreach Foundation in partnership sustainable packaging solution for
districts in Sri Lanka. with the Ministry of Women and Child each pack of nutrition.
Affairs focusing on Early Childhood
Care and Development (ECCD) in Sri
Lanka).
Indian High The Indian High Commission Financially disadvantaged Nutrition packs were assembled and Island-wide
64 Commission Family deployed a Nutrition programme households/families distributed to the nearest Cargills
Nutrition Programme to support selected households in outlets for handover (the packs were
Cargills vulnerable communities in Sri Lanka provided at preferential, discounted
(Ceylon)
PLC
rates)
Annual
Report
2022/23 Diviyata Diriyak - The Chamber of Commerce in Sri Lower income families selected by the Dry ration packs were assembled and Western and
The Chamber of Lanka collaborated with Divisional Divisional Secretariat were the main distributed to the nearest Cargills Sabaragamuwa
Commerce Secretariats to deploy a project to focus outlet – ready for handover. Provinces
support identified families living in
vulnerable communities with family
nutrition packs
TAKING STOCK
Maximising our Efforts for New Agriculture Projects Launched in 2022/2023
Local Sourcing Cargills collaborated with strategic partners throughout the year to execute agricultural initiatives
The imposition of import limitations by the that guarantee sustainable, efficient farming and supply stability in the face of challenging operating
government led to a dearth of both primary conditions in the nation. A brief overview of these projects is provided in the sections below.
materials and finished products in the market. As
an adaptable measure, the Group launched an Project 1 Project 2
in-house procurement initiative during the year
in review, thereby engaging with suppliers and GAP Promotion Project in partnership with Nature Conservation Project titled ‘Managing
farm owners in all major commercial divisions to the Food and Agriculture Organization (FAO) Together’, in partnership with both the
source raw materials and other supplies required of the United Nations and the Department of International Union for Conservation of Nature
for the Company’s production processes. Agriculture (DOA). (IUCN), and the United Nations Development
Programme (UNDP).
65
Objectives:
Increasing Local Production Cargills
(Ceylon)
z Provide assistance to Sri Lankan farmers An integrated community-centred ecosystem- PLC
The dairy industry has seen a rise in production
grappling with the economic crisis based approach into forestry, agriculture, and Annual
costs due to increasing feed prices. To help Report
Promote the implementation of sound tourism sectors. 2022/23

mitigate the impacts of this on the economic z
returns of farmers, during the year under review, agricultural practices and modern
technologies via a comprehensive extension Implementer: IUCN together with the Ministry
Cargills adjusted its buying price in order to
programme of Environment
ensure farmers continue to enjoy fair prices for
their efforts and produce. Best practices are z Aid commercial vegetable growers in
Objectives:
continually shared amongst our farmers while modernising a ¼-acre land with state-of-
our network provides technical support to the-art technology
z Strengthening resilience to climate
upskill our farming communities for enhanced change and disasters through enhanced
performance and production output by Implementor: FAO through the DOA environmental management
facilitating customised training programmes that z Providing vulnerable and marginalised
address specific challenges and gaps identified. Funding organisation: Department of Foreign groups with resources to become resilient to
Affairs and Trade (DFAT), Australia climate change and natural disasters while
The Agri Modernisation Programme of Cargills benefiting from sustained natural resource
Locations:
is a major driving force in realising these management
objectives, as it enables our farmers to develop z Monaragala, Wellawaya, and Thanamalvila z Ensuring effective environmental
strategies for off-season production, which Divisional Secretariats
governance and Blue/Green infrastructure

allows them to avoid facing the negative z Mullaitivu, Mathai East and Thunukkai development
consequences of seasonal price fluctuations. Divisional Secretariats
This not only increases market stabilisation, but z Badulla, Walimada and Bandarawela Project Area: Malwathuoya, Kahatagasdigiliya,
also brings benefits to farmers and consumers Divisional Secretariats Madawachchiya.
throughout the year.
Proposed crops: Vegetables
TAKING STOCK
Extent: 570 farmers
Providing Affordable Choice Revolutionising Building Food Security
to Consumers through Price our Processes for and Resilience at Local,
Management Cost Optimisation Regional and National Level
Through our approach of directly buying from Several new measures were taken to improve The challenging effects of the fuel crisis and
the farming community, the Cargills Retail sector back-end efficiencies while some are in the other difficulties the nation faced in the last
was able to continue its promise of lowest prices pipeline. We encouraged customers to bring year led to marked limitations in the availability
to consumers as this approach eliminates the reusable bags to the Retail outlets in order to of essential nutrition needs such as milk across
middlemen traders who otherwise take out a reduce the use of polythene bags which are a the island. Despite the challenges, Cargills
significant share of the farmgate price which drain on the country (as most of it is imported). leveraged its wide coverage and distribution
the farmer would receive. Direct buying from the This initiative reduced the demand for polythene network across the country, to ensure that milk
farmers and investments in crates and the cold bags, and led to purposeful cost savings. distribution continued without disruption; thus,
66 chain to reduce post-harvest loss meant we enabling consumers undisrupted access to
Cargills were able to provide the consumer with a better During the peak of the fuel crisis, we reduced essential nutrition. Furthermore, the Company
(Ceylon)
PLC
price for produce by eliminating waste in the delivery frequencies from the warehouse to also ensured that milk procurement from farmers
Annual supply chain. These efforts continued during the outlets for dry/ambient products and maximised remained consistent, ensuring that their revenue
Report
2022/23 year under review. the utilisation of trucks. Further, initiatives remained unaffected in spite of the challenges.
were taken to reduce electricity consumption
The Group reviewed efficiency and productivity in retail stores while continuing to provide an Additionally, the logistics services within the
of collection centres and made decisions to optimal shopping experience for customers Cargills network were maintained with the
rationalise unproductive assets. The environment and ensuring the continuous functioning of utmost efficiency during the review year,
was not conducive to a “price challenge” such the cold chain. Factories were equipped with enabling the collection and distribution of
as the one in 2012 as prices were fluctuating larger storage capacity for fuel as teams had to resources even in trying times. To gauge the
frequently. The top of the mind concern for purchase additional fuel for backup generators. value of such measures implemented over
the customer was product availability and we These initiatives ensured factory operations time, please refer to the Impact Assessment
took all measures possible to ensure product continued without significant disruptions. of Cargills’ Commitment to Agriculture
availability and to minimise out of stock Modernisation on pages 78 and 79.
situations. Whenever key SKUs went out of stock Back end systems were automated wherever
and suppliers were unable to meet requirements, possible to reduce cost of stationery and reduce
we immediately shifted to new suppliers either transport while some automation initiatives are in
locally or globally. the pipeline. The Group is also investing further
in solar rooftops for stores and factories to
reduce the impact of higher electricity costs.
TAKING STOCK
67
Cargills
(Ceylon)
PLC
Annual
Report
2022/23

TAKING STOCK
BRIDGING
68
Cargills
(Ceylon)
REGIONAL
PLC
Annual
Report
2022/23
DISPARITY
Over the years, Sri Lanka has experienced persisting regional disparities in terms of
economic development. The western province, which has received disproportionate
investments and attention, accounts for over 40% of the country’s gross domestic
product (GDP; Central Bank of Sri Lanka, 2021). This has created an imbalance,
particularly between under developed and urban areas, in terms of income, educational
attainment, and access to public services, thus exacerbating the already existing
inequalities. The ongoing economic crisis too has had a massively depressive effect on
such vulnerable communities where the majority of the population of Sri Lanka resides
(80%), calling for urgent action to redress regional disparities.
Having identified this issue years ago, Cargills has implemented an integrated approach
to community development and social empowerment, concentrating on measures such
as material sufficiency, improved educational attainment, and increased focus on women
empowerment for the purpose of creating a lasting foundation for the betterment of
these communities.
The section herein provides more insight into the focused efforts and outcomes of
TAKING STOCK
programmes carried out by Cargills towards bridging regional disparities of Sri Lanka.
Value Delivered in
2022/23
Total value of Sarubima
scholarships:
Rs. 24,530,000
among 774 beneficiaries
Total investment in community

development initiatives
Rs. 8,802,270 69
Cargills
Total incentives to dairy farmers (Ceylon)
PLC
Rs. 84,935,299 Annual
Report
2022/23
Total invested in community meals

programmes
Rs. 11,796,657
Bridging Regional Disparity

Contribution
to SDGs
TAKING STOCK
70
Cargills RE-ENGINEERING
THE AGRICULTURE
(Ceylon)
PLC
Annual
Report
SUPPLY CHAIN
2022/23
Cargills takes pride in its farm-to-table type supply chain The Agriculture Officers also provide field supervision and
established over a period of more than two decades. In the technical support to farmers to ensure a seamless, time-bound
year 1999, Cargills made a strategic shift in its supply chain supply-chain operation; produce is harvested at the most optimal
management to purchase directly from farmers by establishing a stage and transported to Collecting Centres on the same day.
collection centre in Hanguranketha, giving them direct access to Quality parameters are evaluated, and washing of produce
the mass market, bypassing the middlemen. Over the years we is conducted at Collecting Centres if needed. Temperature-
have built a full-fledged total supply chain solution with credit for controlled trucks then transport the produce to a Central
inputs, stable and consistent produce handling, modern storage Processing Centre the same day, and crates are used to minimise
and transportation solutions, and guaranteed market access for any damage during transportation. Upon receipt, the Processing
producers that reduced post-harvest surplus waste and increased Centre distributes the produce to Cargills Retail Outlets, ensuring
producer income. customers receive fresh, unharmed produce.
The supply chain operation, which began with the transportation The impact of our business model has enabled to reduce the
of 500 kg of fresh produce from Hanguranketha, is today a dependency on the traditional system of middlemen resulting in
national-scale initiative with collection centres spread across a lower retail price for consumers, and a higher proportion of the
the island, handling over 100,000 kg of fresh produce and retail price being shared with the farmers.
approximately over 160,000 Litres of milk daily. Each collection
centre is managed by qualified Agriculture Officers and Graduates
who continue to disseminate new technologies and extension
TAKING STOCK
services, nurturing our long-standing relationships with the farming

communities.
2022/23
Highlights
With a presence of 512 Cargills Retail outlets
covering all 25 districts of Sri Lanka, including 98
Food City outlets and 110 Cargills Express outlets
located outside the Western Province, Cargills
ensured easy accessibility and reach to the rural
and semi-urban communities island-wide. Our
dedication to ensuring faster, more convenient
island-wide circulation of fresh produce and
food items was further strengthened by our
e-commerce channel that allowed customers
improved access and efficiency. Additionally, 71
21 KFC restaurants outside the Western Province
provided international fast food experiences to Cargills
(Ceylon)
people of all socio-economic backgrounds. PLC
Annual
Report
2022/23

TAKING STOCK
The island wide presence of the Cargills Summary of Cargills
Retail network builds markets for Outlets and Reach
producers as well as suppliers all across Island Wide
the country, in particular, small and
medium enterprises (SMEs) who supply
to the Group. Many small suppliers
across the country have grown in scale
over the years due their continuous 11 1 1 2 3
engagement with the Group. The Cargills

dairy unit managed 36 milk chilling
centres in 6 provinces to create market Northern
72 access and increased earning potential Province
Cargills
for nearby dairy farmers. We added 2
(Ceylon) new milk chilling centres during the year
PLC 10 1 - 9 1
Annual in the Polonnaruwa and Anuradhapura
Report
2022/23 districts. Furthermore, 13 vegetable
collection centres, all located outside
the Western Province, supplemented the North
Central
efficacy of the Cargills supply chain in Province
38 3 1 8 2
the year under review.
16 3 - 1 -
North
Western 37 5 2 15 4
Province Eastern
Province
Central
41 5 1 6
Province
306
13 1 - - 4
CFC Retail
Western 26 4 - - -
Province Uva
KFC and TGIF Province
Sabaragamuwa
FMCG Province
57 3 - - -
Milk chilling centers

Southern
Province
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Other
Cargills -WFP
Nutrition Programme
Outlets in Rural
Communities
In addition, during the review year, six temporary outlets were established as part
Kayts of the World Food Programme’s (WFP) nutrition project to deliver food packs to
vulnerable families in rural communities.
Puthukuduiyruppu
Mallavi
Oddusuddan 73
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Fresh Produce Milk
35,521,627 58,478,424
Volume (Kg) Volume (Litres)
7,135,609,775 8,827,415,172
Value (LKR) Value (LKR)
A total volume of 35.5 million kg of fresh produce to the value of Rs. 7.1 Bn. was
added to the Cargills supply chain during the year under review, with a total milk
collection of approximately 58.5 million. Litres to the value of Rs. 8.8 Bn., enriching
Kotmale
the supply chain while providing direct benefits and returns to our farming
communities. Cargills directly enabled the livelihoods of a growing network of
5,354 agri farmers and 13,884 dairy farmers through its collections and supply chain
operations during the year under review.

Welioya
TAKING STOCK
According to a report from the Department
of Census and Statistics (National Account
Estimates, 2022), Sri Lanka’s Agriculture
activities experienced a 4.6% decrease in 2022,
a significant contrast from the 0.9% growth
observed in 2021. This shift can be attributed
to the limited availability of agricultural inputs,
particularly fertiliser and agrochemicals, as well
as rising input and fuel costs resulting from
the country’s economic crisis that unravelled
in 2022. In order to address the impacts of
74 production cost increases and food security
Cargills
concerns, Cargills adjusted the buying price of
(Ceylon) dairy to mirror the increase in feed prices and
PLC
Annual other production costs during this time.
Report
2022/23
Cargills is deeply committed to the advancement
of communities in Sri Lanka. Our nine
manufacturing plants located in non-urban areas,
bring meaningful employment opportunities to
the youth. Moreover, the expansion of Cargills
Retail outlets in various remote areas of the
island ensures enhanced career prospects for
these youths. With youth shifting away from
traditional industries such as agriculture and
farming, Cargills introduced a new precision
agriculture model to entice this demographic
to engage in agricultural activities, ultimately
paving the way for a new generation of young
farmers by providing impactful benefits to those
involved. Additionally, the Dairy Development
programme and Sarubima programme provide
much-needed funds to help farmers better their

yields, thus allowing communities to flourish.
TAKING STOCK
The Agriculture
Modernisation Project
For two decades, we have laid the groundwork
to fortify our supply chain and thus enable more
farmers to participate in the growth prospects.
In 2019, Cargills Agro Development Co. (CADC)
launched the Agriculture Modernisation Project
to empower farmers and improve livelihoods
through sustainable, nutrition-sensitive
agricultural practices. Our initiative saw a select
group of farmers and Cargills Extension Officers 75
visit Indian high-tech farms and technical
Cargills
parks to gain valuable insights into Precision (Ceylon)
PLC
Agriculture techniques. On return to Sri Lanka, Annual
farmers applied the learnings, which enabled Report
2022/23
them to reduce water usage by 60% through
micro irrigation and conserve soil moisture with
polythene mulch. Agrochemical usage has also
reduced.

TAKING STOCK
Over 300 farmers including Government Agriculture Officers
participated in a field-day programme at Thanamalvila
2022/23
Highlights
The Agriculture Modernisation Project saw a Over 200 farmers including Government
monumental expansion during the year impacting an Agriculture Instructors from Manthei visited
additional 620 farmers in 4 locations throughout the farm in Thambuthegama for an awareness
Sri Lanka. The farmers continued to reap the benefits programme.
of reduced cost of production, increased yield, and
prudent resource management through the project.
The farming communities continued to be receptive
towards this initiative, with many citing the introduction
of the Agricultural Modernisation Project as a key
factor in motivating the younger generation to get
76 more involved in the agricultural sector.
Cargills
(Ceylon) Over 140 new farmers including Government
PLC Agriculture officials precepted in a field day
Annual programme in Boralanda
Report
2022/23
Peradeniya University’s academic staff, final

Value Delivered in 2022/23 year undergraduates, and local farmers were
given a unique opportunity to benefit from
a field demonstration and hands-on training
New farmers joined
620 programme on Precision Agriculture at Cargills
farm fields in Hanguranketha. This programme
was designed to help the community acquire
knowledge and understanding of Precision
Agriculture on-site.
During the past year, three newly included farmer
groups had the chance to experience the Cargills Agri
Modernisation projects first-hand, with the opportunity
to take part in learning and training activities. Several
knowledge sharing programmes and field visits As a part of our commitment to showcase
were also arranged for agriculture undergraduates, the impacts of the programme, high-level
academia, and officers of other development agencies representatives from the UN Food and
during the year in review. Agriculture Organisation (FAO) and the Australian
High Commission paid a visit to the Cargills
Agri Project sites, allowing them to witness the
tangible progress made by the farmers.
TAKING STOCK
Case Study:
CADC 77
Cargills
Cargills and Colombo (Ceylon)

PLC
Municipal Council Pioneer Annual

Report
2022/23
Urban Agriculture Project
Cargills and the Colombo Municipal Council (CMC)
unveiled a model urban agriculture project which was
launched on 29 July 2022 at the CMC Town Hall premises.
The project uses modern agricultural techniques to cultivate
different crop varieties, such as Beetroot, Kankun, Radish,
Capsicum, Chilli, Ginger, Spinach, and Tomato. The CMC
offers security to the site, access to land, water and electricity,
while Cargills contributes resources such as seed, fertiliser,
pesticides, weedicides, and harvesting labour. Harvested crops
are donated to communities within the Colombo Municipality,
promoting food security. The project demonstrated the
utilisation of a number of modern agriculture techniques
such as drip-irrigation with fertigation, polythene mulches,
and insect proof netting to the urban population visiting
the CMC premises, creating enthusiasm and interest among

a demographic that would otherwise not engage or explore
modern farming practices. The centrally located plot
serves as a model for urban farming and is expected to
encourage more people to use urban land spaces to cultivate
their own crops and contribute towards achieving food
security across Sri Lanka.
TAKING STOCK
Impact Assessment of Receiving
GAP Farmer
Cargills’ Commitment to Produce at
the Cargills
Agriculture Modernisation Collection
Centre
The success of the Agriculture Modernisation

Project was highlighted in a recent study
titled “Impact Assessment of Rehabilitation of
Degraded Agricultural Lands (RDAL) Project”
(December 2021) carried out by the Department
of Export Agriculture in the Faculty of Animal
78 Science and Export Agriculture in the Uva
Wellassa University of Sri Lanka. The RDAL
Cargills
(Ceylon)
project of the Food and Agriculture Organisation
PLC (FAO) of the United Nations strategically
Annual
Report partnered with Cargills to promote sustainable
2022/23
land management (SLM) and introduce modern
agricultural practices across identified RDAL
project areas.
As per the study, Cargills has been recognised

as an innovative financing partner referring
to some of the criteria such as the stability of
the Company to intervene in the long run, the
predictability of the Company for financing
resources over the time frame of the project
and beyond, the complementarity of the project
activities with the scope of the Company,
the amount of resources the Company could
bring down, the feasibility to set up the linkage
(easiness and speed), and low resource
mobilisation cost. The study also highlights
the capacity building of farmers carried out by
Cargills in collaboration with other implementing

partner organisations, where selected farmers
have benefitted greatly from interacting with
successful farmers across the Cargills farmer
network.
TAKING STOCK
Impact Assessment of Transferring Technology
the RDAL Project: and Technical Knowledge
1. Impact at Beneficiary Level 2. Impact at Partner Level (Cargills) to the Grassroots
z Empowered more than 80 farmers by z Enabled Cargills to improve the quality of the
Our continuous engagement with farming
providing the required technology and fruit and vegetable supply which is vital for
communities has helped us to identify and
training, with 26 farmers obtaining Good their business.
address supply chain inefficiencies; key among
Agriculture Practices (GAP) certification, Contributed to the Cargills Agribusiness
z
these was the lack of technical and agricultural
and other participants also in the process of Philosophy; Food safety through farm expertise that is necessary for farmers to
doing so. prosperity. make informed decisions on how to tackle
z All beneficiary farmers have been able to z Helped to motivate and attract young farmers larger, global trends such as changing crop
receive a stable and a higher price, as well as 79
back to agriculture. patterns, yields, fuel price increases, and climate
an assured market for their fresh produce. variations. Cargills
z Overcame capital investment challenges, with (Ceylon)
z All beneficiary farmers have been able to cut Cargills Sarubima and FAO funding 30% each PLC
down their cost of production to a significant of the total cost, and Cargills Bank providing In the past decade or so, Sri Lankan agriculture Annual
Report
level due to the reduction of chemical low interest loans to farmers to meet the has experienced significant disruption due to 2022/23
fertiliser use by about 80%, agrochemical balance 40% investment where necessary. volatile rain patterns, temperature changes, soil
use by about 40%, and the labour use by deterioration, and other environmental factors.
z Enhanced capacities of Cargills field officers
about 40%. On top of this, production costs, labour fees,
with trainings on GAP certification and
A 10 – 20% increase in yield. and other input costs are increasing, resulting
z
Precision Agriculture.
in profitability faltering and a decline in farming
z Possibility of off-season cultivation with drip Opportunity to replicate the concept.
z
families. Nonetheless, providing access to
irrigation system and mulching.
z Enabling project beneficiaries to improve their advanced technology and knowledge on
z Significant improvement of total land income levels, land productivity and overall techniques, production planning, and resource
productivity (economic and environmental). standards of living in a sustainable manner. management have the potential to revive the
z Produced tangible outputs/outcomes related sector. We at Cargills are proud to have played
to arresting land degradation and promoting a part in this endeavour, through collaborative
SLM practices sustainably well within the projects with research organisations, university
project implementing period. departments, overseas agricultural companies,
and Sri Lanka’s Department of Agriculture
By collaborating with the identified innovative via CADC.
financing partner Cargills, the RDAL project has

been able to make a significant impact on the
livelihood of a large number of agri farmers by
empowering them with the modern technology,
financing and market facilitation while improving
the land productivity issues and successfully
mitigating the land degradation and subsequent
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soil and water pollution issues.
2022/23
Highlights
In the year under review, Cargills
continued to work with the farming
communities to develop the sector
and enhance efficiency through
technological interventions. As part
of our efforts this year, Artificial
Insemination (AI) was introduced
to dairy farmers as an important
and efficient technique in dairy
farming. AI gives farmers greater
80 control over the genetics of their
herd, allowing them to select
Cargills characteristics such as increased
(Ceylon)
PLC milk yield, mothering ability, and
Annual disease resistance. Additionally,
Report procedures for selecting bulls are
2022/23
easier and improved accuracy
of insemination can lead to
higher pregnancies and better
reproductive management. AI also
helps to maintain a consistent
gene pool, reducing the chances
of inbreeding and allowing farmers
to access bulls from a wide variety
of genetics quickly and easily.
Ultimately, the use of AI offers dairy
farmers many advanta ges over
traditional breeding methods.
Jaffna Milk
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Chilling Centre
Crown Seeds
Crown Seeds was established as a CADC initiative to enhance
seed potato propagation methods and practices in Sri Lanka.
As a pioneer in the field, Crown Seeds extended its research
and production portfolio to other crops from 1999 following the
expansion of the Cargills farmer network, collaborating with the
Department of Agriculture to obtain quality certifications for the
seeds. Crown Seeds introduced high-yielding hybrid seeds
alongside its highly successful local seed range, importing and
distributing world-renowned seed brands such as Nunhems from
the Netherlands, and attracting more farmers through Cargills’
81
trademark forward contract system.
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
2022/23
Highlights
During the year under review, 63 new farmers joined local vegetable seed
production under the Crown Seeds initiative, some cultivating two or more
types of crops. Over the years the Organisation has distributed 34 types
of seeds for 19 different crops, thus enabling farmers across more than
250 farming communities to further enhance the quality and yield potential
of their vegetable crops in the review year. Continuous research and
collaboration resulted in one new variety of seed being approved by the
Department of Agriculture and the Company intends to commercialise this
in the ensuing year.
Further during the year under review, the out-grower farmer network was
re-organised with the addition of two new seed production locations as
well as new farmers as indicated in the table below:

New Areas Selected for Number of Crops Cultivated Land Extent
Seed Production Farmers (Acres)
Galenbindunuwewa 34 Long beans (four 21

varieties), Luffa, Brinjal
Moragahakanda 29 Bitter Gourd (two 10

varieties), Cucumber,
Marrow, Chili, Luffa,
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Snake Gourd, Tomato
Dairy Industry as an
Enabler for Food Security Cargills Dairy Enriching Livelihoods of
and Economic Growth Development Programme Local Dairy Farmers
Cargills is dedicated to the expansion of its Dairy Our dairy business arm, Cargills Quality Dairies
The dairy sector has been identified as the
business in response to consumer demand, (Pvt) Ltd and Kotmale Holdings PLC, continued
priority sector for development among other
through a sustainable dairy development to further its agenda to empower local dairy
livestock sub-sectors in Sri Lanka; while the
initiative encompassing the entire value chain. farmers and help them withstand the challenges
contribution of the agriculture sector to the
The purpose of this initiative is to enhance brought forth by changes in the operating milieu
GDP of the country was 6.9% in 2021, the
the livelihoods of small farmers and farming last year.
contribution of the livestock vertical – largely
communities by connecting them to the market
82 focused on producing milk, meat and eggs –
through local milk processing and to empower Cargills continued the on-going collaborative
was only 0.9%.
Cargills smallholder farmers to increase milk production, partnership with the Department of Animal
(Ceylon)
quality, and profitability. Production and Health (DAPH), to provide
PLC Cattle and buffaloes are the primary species
Annual technical guidance to the Livestock Industry
Report of livestock that make up the dairy industry.
2022/23 and its stakeholders in Sri Lanka. During the
Historically, these animals have been used
for multiple purposes, such as for milk for
household consumption, transportation, and
draft, and as a source of organic fertiliser and
fuel. Livestock has now become a major source
of employment for the poor, providing them with
a steady income.
An analysis of the Sri Lankan dairy industry

reveals that domestic production only meets
40% of current demand, thus requiring a heavy
reliance on imported milk and milk products.
It is clear that the dairy industry in Sri Lanka
has great potential for development and
can significantly contribute to the country’s
economic growth. Policy formation and
implementation of appropriate measures at the
field level could drive sector growth and enable

self-sufficiency in the national milk supply. This
will serve as a strategic approach for building
economic resilience through reducing milk
powder importation, and consequently reducing
foreign currency drain.
TAKING STOCK
2022/23
Highlights
year in review, Cargills conducted a Farm Assessment in partnership with DAPH While the country’s socio-economic challenges during
the year led to a reduction in milk production in the
and disseminated the findings to the industry to promote further growth through country, the beneficiaries of our Dairy Development
education and research. Additionally, the Company invested in farmer training, Programme were able to increase their overall milk
awareness programmes, and skills development projects to extend support for the production. This overall growth was attributable to
focused, strategic action taken by Cargills during the
development and enhancement of dairy farms. year, largely under the Dairy Enterprise Development
Initiative (DEDI).
Our milk procurement spans numerous areas across the island, particularly in the
Central, North Western, and North Central Provinces. This growth has contributed to
While the cost of production increased substantially 83
during the year due to rising input costs, so too did
the rise in yearly household income for farming communities in remote areas. operational expenses such as transport, and the Cargills
farmgate prices of milk also increased quite sharply (Ceylon)
PLC
during the year. Despite the increase in the price
Having diversified into the Dairy industry in 2001 with the acquisition of a closed- of milk, Cargills continued to secure milk from our
Annual
Report
down ice cream factory, today Cargills Quality Dairies has driven catalytic growth farmer network, providing them a steady income. The 2022/23
within the sector, contributing to incremental milk production volumes year on year. Company was able to leverage the strength of its
supply chain and access milk collection points despite
The table below bears witness to the success of our measured yet significant the challenges with fuel availability. In an environment
steps taken towards the development of this nationally significant sector, and where many processors and collectors reduced
summarises the details of our milk procurement volumes during the past five years milk purchases, Cargills was committed to its farmer
network and maintained milk purchases. During certain
from 2018 to 2022: months where competing collectors dropped out of
the market, Cargills was able to intervene and collect
excess milk.
Over the last year, the addition of two new milk chilling
Cargills Milk Procurement centres contributed to the annual milk collection
increasing by 981,097 litres. An estimated average milk
collection of over 160,000 litres per day was achieved
during the review year.
Chilling Annual Milk Annual Milk

Centres Collection (Litres) Payments (LKR)

2022/23 36 58,478,424 8,827,415,172
2021/22 35 57,497,327 6,183,011,014
TAKING STOCK
Fostering an Equitable
Future for Women
Entrepreneurs
The continuous growth in milk collection is a
priority for Cargills and the empowerment of
identified leader farmers to promote a culture
of entrepreneurship, especially amongst
women has been an innovative and significant
methodology adopted in this direction.
84
In furthering this objective, the Company has
Cargills identified 500 leader farmers, 328 of whom have
(Ceylon)
PLC their own fodder cultivation and produce more
Annual
Report
than 25 litres of milk daily. These farmers have
2022/23 been encouraged to take on one new female
affiliate farmer annually. They are provided with
appropriate guidance, technical support, and
collective repurchasing agreements to aid in
their affiliates’ development. It is expected that
during the first year, the affiliate farmer will
produce 20 litres of milk per day, which will be
increased by 15% each year.
TAKING STOCK
The Dairy Enterprise
Development Initiative: 2021 - 2026
In 2021, Cargills Quality Dairies launched the Dairy Enterprise Development Additional key measures undertaken by the DEDI programme to
Initiative (DEDI). This five-year programme, facilitated by Kotmale Dairy Products improve and enrich the sector include;
(Pvt) Ltd, has the goal of increasing milk production by 80 million litres annually by z Capacity building and skills development for dairy farmers
2026, thereby reducing foreign exchange outflow from dairy imports by reaching
z Genetic upgrading and productivity improvement of the dairy
our full processing capacity. The Company is currently linked with over 13,800
herds
farmers, who collectively produce an average of over 160,000 litres of milk per
day, which is significantly lower than the desired volume required to meet our z Establishment of a commercial-scale good quality fodder
optimum production capacity. This low milk collection rate is largely due to the low and silage production unit in Sri Lanka to provide high quality
feeding materials to our dairy farmers 85
productivity of animals, which has led to lower profitability, and dairy farmers shifting
away from the field due to its reduced earning potential. z Individual farm assessment and farm planning to ensure Cargills
(Ceylon)
optimum farm management practices PLC
To address these issues, the DEDI is promoting improved dairy technology and z Provision of financial assistance for dairy development and
Annual
Report
management practices, giving rise to long-term, sustainable results. Cargills joined farmer extension
2022/23
forces with DAPH, as well as a number of financial institutions to replicate model

dairy farming units based on the model dairy farm and training centre set up by Through individual farm visits, farmer interviews, and group
the Company in Kurunegala. This effort has accelerated the development of farmer discussions conducted over the review year, the dairy units in
capacity and the rate at which farming practices are changed and adopted by our the project area were continuously assessed to identify existing
farmers. gaps, evaluate available resources, and gauge future development
potential.
Technical
training session
conducted by
Cargills Quality
Dairies for
Dairy Extension
Officers

TAKING STOCK
2022/23
Highlights
Building Capacity and
Skills on Dairy Development
The objectives of our capacity-building programmes
are to improve overall farm productivity, enhance
the quality and safety of the milk produced, improve
the management of the animals, educate on the
importance of environmental sustainability, increase
dairy farm profitability, and develop industry-wide
understanding of more productive dairy business
models for the nation.
86
During the reporting period, 1,330 farmers were
Cargills
(Ceylon) provided with project awareness and technical training,
PLC bringing the total farmer thus trained under DEDI
Annual to 2,393. Furthermore, 52 Dairy staff also received
Report
2022/23
project awareness and technical training during the
review year. Our Dairy Extension Team then presented
customised development plans to establish Model
Dairy Farm Units for the 1,330 farmers to meet 10
agreed-upon Key Performance Indicators (KPIs) and
initiate best management practices.
Dairy Farmers and

Staff Training under DEDI
Project awareness and Technical Training Number of
Participants
Staff training on dairy management 94

and extension practices (total)
Awareness and technical training 2,393
on increased productivity and best
management practices (total)
Introduction of best management 1,330
practices according to the 10 KPIs
TAKING STOCK
Improved Planting Material and Fodder
Fodder/Silage Production cultivation by
a female dairy
In order to address the issues of inconsistency and farmer
unavailability of quality feeding materials faced by
dairy farmers in our project locations during the year
in review, Cargills provided microfinance assistance
for irrigation facilities for fodder cultivation as well as
over 200,000 improved planting materials (Puchong
cuttings).
In addition to offering farmers training in fodder

cultivation and preparation of total mixed rations
(TMR) for dairy cows, a chaff cutter was introduced
to facilitate this improved TMR feeding system, where
silage cut into smaller pieces was blended with 87
supplementary feeding materials such as cereals,
minerals, vitamins and feed additives, to maximise the Cargills
(Ceylon)
nutritional status of the feeds. PLC
Annual
Furthermore, Cargills assisted in initiating 3 silage Report
2022/23
entrepreneurs to ensure a continuous supply of silage
which is being currently distributed among farmers with
plans to expand further in the ensuing year.
Feeding cattle
using the Total
Mixed Ration
(TMR) system

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Genetic Upgrading and Herd
Improvement Programmes
An analysis of milk production helped us determine
that more than 80% of production is done by
smallholder dairy farmers with only 3-4 cows of low-
yielding capacity. This is due to a lack of breeding
farms available to access high-yielding breeds and
heifers, compounded by the unavailability of proper
breeding programmes for dairy farmers. To address
this, Cargills launched a programme to assess dairy
cattle breeds and production performance in order to
make informed recommendations on the importation
of high-yield heifers with the assistance of DAPH
and other dairy development projects. During the
88 reporting period, over 400 farmers were chosen to
participate in this pilot project, which will be scaled
Cargills up in the following financial year. Furthermore,
(Ceylon)
PLC awareness programmes on Artificial Insemination (AI)
Annual were implemented in conjunction with DAPH for Dairy
Report Extension Officers (DEOs), in order to ensure the
2022/23
successful implementation of the herd improvement
programme.
TAKING STOCK
Farmers having
utilised vouchers for
solar power units
Financial Assistance
for Dairy Development
Cargills assessed the 1,330 farmers who participated
in the DEDI project awareness and technical training
sessions, and prioritised approximately 500 of the
highest-performing farmers, extending financial
assistance to establish 500 Model Dairy Farm Units
under the DEDI programme. Apart from the earlier
mentioned financial incentives for irrigation systems,
improved feed systems, and financial assistance was
allocated for other identified key activities which
included:
z Purchasing of a milking machine to improve
productivity 89
z Improvement/new construction of cattle sheds, where
farmers were incentivised to provide drinking water Cargills
(Ceylon)
buckets with automated refilling mechanisms so that PLC
animals could access water whenever necessary. Annual
Report
z Installation of solar power units for dairy farms to 2022/23
reduce growing energy costs
During the year in review, the Company facilitated low-

interest loans worth Rs. 91.85 Mn. to 203 dairy farmers
through Cargills Bank, along with Rs. 24.83 Mn. worth of
vouchers to 256 farmers for the above identified key
activities.
Loan Scheme Number of Loans Loan Amount
SAPP 9 4,050,000.00
SAUBHGYA 104 45,841,760.00
DAP-PP 82 38,219,686.00
BANK FUNDED 8 3,740,000.00
Total 203 91,851,446.00

TAKING STOCK
Financial support
for milking machine
purchases
Community Development Sarubima Credit Relief Fund
Reinvesting in holistic community development The country’s economic crisis which followed the COVID-19 outbreak compounded the number
is essential for the growth and sustainability of of farmers defaulting their loan payments, and as a result being left with no access to credit from
the communities of Sri Lanka. Our extensive local banks, a persistent, long-term issue that has continued to greatly impact Sri Lanka’s agriculture
interactions with farmers from various regions economy. Complementing a number of government relief efforts was the Cargills Sarubima Credit
of the island have made us cognisant of the Relief Fund, established to provide much needed financial assistance to farmers by eliminating the risk
pressing need for an integrated approach to factor of high capital investments and loan interests. The Sarubima Credit Relief Fund helps farmers
promoting local economic progress, reducing repay the loans taken for capital expenditure in the event of a genuine crop failure beyond their
poverty and unemployment levels, and control. Rs. 10 Mn. has been reserved from the Sarubima Fund towards meeting the commitments
increasing the standards of living while ensuring under this scheme.
90 the well-being of all members belonging to
agricultural communities.
Cargills
(Ceylon)
PLC
Annual
Report
Sarubima Fund
2022/23
In 2008, Cargills saw a need to further invest in

uplifting the lives of the farming communities,
particularly in the next generation. Therefore,
the Sarubima fund was set up to contribute
50 cents for every kilogram of produce
collected, and per litre of milk sourced from
local farmers. Over the years, this fund has
acted as a platform to better the lives of our
farming communities by offering educational
scholarships, up-skilling tools, insurance
policies and investment in local infrastructure.
Around 60% of the capital is allocated towards
educational scholarships, which is instrumental
in bridging the educational disparities between
rural and urban areas. This endeavour has
remained of paramount importance for Cargills
and we furthered this initiative during the year in

review, in partnership with relevant stakeholders.
TAKING STOCK
2022/23
Highlights
During the year under review, Sarubima scholarships
surpassing Rs. 24 Mn. were extended to 774
beneficiaries.
Number of Funds
Beneficiaries Disbursed (Rs.)
Grade 5 scholarship
students 194 1,940,000
O/L students 375 9,375,000 91
University students 157 11,775,000
Cargills
(Ceylon)
Vocational training 48 1,440,000 PLC
Total 774 24,530,000 Annual
Report
2022/23
Furthermore, during the review year, close to
Rs. 25 Mn. was allocated for several community
development projects in more than 40 locations in
and around our vegetable, fruit and milk collection
centres. These projects range in scope and purpose
and are focused on addressing the urgent social and
development needs of our communities. Projects to
improve access to clean drinking water and sanitation,
construction of medical facilities, school development,
and other key infrastructure developments are among
the key budgeted programmes that were initiated
during this reporting period, and are expected to be
completed in the upcoming financial year.

TAKING STOCK
Cargills Village to Home
In September 2020, Cargills launched the
“Village to Home” initiative to support Sri Lanka’s
small and medium enterprises (SMEs) that were
impacted by the COVID-19 pandemic. Monthly
sales events are held at select Cargills Food City
car parks to provide business continuity amidst
the market’s increased uncertainties.
The events showcase a variety of Sri Lankan

92 traditional products, including healthy and
Cargills nutritious Ayurveda herbal products, food,
(Ceylon)
PLC
handloom and artisanal handicraft, and cane and
Annual reed craft products. Cargills provides technical
Report
2022/23 assistance and advice in packaging, marketing,
quality assurance and quality standards to
aid the SMEs in improving product quality
and increasing their market appeal to Cargills
customers. Furthermore, Cargills covers all
expenses for demarcated stalls, water, electricity,
and other facilities required to meet strict health
and safety guidelines.
TAKING STOCK
2022/23
Highlights
In the financial year under review, our initiative saw Village to Home Bays and Gondolas at
Cargills has achieved successful results
considerable growth, organising 32 Village to Home
sales events at Food City outlets, and registering over with Village to Home initiative, doubling its Cargills Retail Outlets
169 SMEs and entrepreneurs. We currently work with contribution to small and medium enterprises 1. Kiribathgoda 4
about 840 SMEs through the programme, introducing
(SMEs) with total revenue earned by the SMEs
approximately 2,000 products to the local market 2. Colombo City Centre
in the year under review. Additionally, the Gondola reaching Rs. 8.3 Mn. Furthermore, registered
programme was further developed, offering SMEs the SMEs benefit from the establishment of Cargills 3. Big City Katubadda
unique opportunity to display their goods at Cargills
Bank accounts with QR codes for payments, and 4. Rajagiriya 3
Food City outlets, for a relatively low cost.
technical support for labelling, quality assurance 5. Attidiya 2 93
and marketing communications. Four training
Cargills Village to Home 6. Gampaha 2
169
Cargills
registered SMEs programmes were conducted to educate and (Ceylon)
upskill the SMEs during the period under review. 7. Thanipolgaha PLC
Annual
Village to Home programme 8. Akuregoda Report
in Jaffna 35 Description 2022/23

Rs.
2021/22
Rs.
9. Badulla 2
2022/23
10. Torrington Square

Menikhinna Village
40 Total revenue
earned by the
Other than the above bays and gondolas,
SMEs 8,346,175 4,850,081
Sagarika Products products from 2 SMEs, namely GSK Products
10 Additionally, SMEs can showcase their products
and Radha Lanka (Case Studies: page 95
and 96) were listed at 303 Cargills Retail
inside select Food City outlets equipped with
Ehali SEDA (Village Society)
86 a Village to Home Bay or Gondola, providing
outlets and Cargills Online due to high demand
during the year under review. A total of 8 SMEs
them the additional layer of security of having
were selected to showcase 34 products on
Hela Diriliya (Apparel continuous market access for a low shelf cost,
Workers Society) 500 supporting sustainable business growth in the
Cargills Bays and Gondolas during the year with
continuous market access, generating sales over
long term.
Rs. 10 Mn., a promising year-on-year increase
Total SMEs engaged with
Cargills 840 from the previous financial year.
Description 2022/23 2021/22

Listed SMEs 8 5
Listed number of
products 34 27
Total revenue for
SMEs from Cargills
Village to Home
TAKING STOCK
Bays/Gondolas (Rs.) 10,105,334.65 8,856,491.97
Village to Home Success Stories
94 Training
programme
Cargills conducted for
(Ceylon) Menikhinna
PLC village
Annual residents
Report
2022/23
Menikhinna Hela Diriliya

Located in the Central Province, is a rural village whose residents An apparel workers’ society which was granted the opportunity
make their livings producing “Hana” (hemp fibre) products. Access of selling its products through the expansive network of Cargills
to the market posed a problem, necessitating Cargills Village to under its Village-to-Home initiative. The initiative boasts a
Home to bridge the gap. A training programme was implemented membership of 500 dedicated women in the apparel sector
to help them understand market demands in terms of products who are actively encouraged to embrace the entrepreneurial
as well as quality. The process is underway to list their products spirit, allowing them to generate additional income beyond their
in Cargills Village to Home Bays and Gondolas, which will facilitate employment.
consistent market access.
TAKING STOCK
Case Study:
95
Cargills
(Ceylon)
PLC
GSK
Annual
Report
2022/23
PRODUCTS
Mr Chandrasena Subasinghe is the driving By joining the Cargills Village to Home As a result of this success, GSK
force behind GSK products, a success story Programme in 2022, Mr Subasinghe products has created many employment
from the Cargills Village to Home initiative. was able to rapidly develop his business opportunities. Furthermore, the product
Mr Subasinghe is an external degree holder thanks to the support and guidance of line has diversified to include Yaki
from the University of Peradeniya and has the Cargills team in matters related to narang, Nil katarolu, Belimal powder,
followed several certificate courses and product quality, branding, labelling, and Curry leaves powder, and other healthy
diploma courses in food technology. He and marketing. Within a short time span of drinks.
two months, the small-scale operation

his wife are both teachers by profession
and they have two children. This dynamic that began with a single dryer had grown
entrepreneur chose to capitalise on the significantly. Today, GSK products are
resources of his home garden when he available in 210 Retail outlets, as well as in
lost his tuition income during the Covid-19 select pharmacies and ayurvedic shops
outbreak, and developed a healthy herbal in Hambantota, Matara and Ratnapura
drink from the Yaki Naran fruit. districts.
TAKING STOCK
Case Study:
96
RADHA
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
LANKA
Radha Lanka, owned by Mr Ajith Dasanayaka, With the guidance of Cargills, Radha opportunities, enabling Radha Lanka to
is a business that reached great heights Lanka has seen immense growth, be financial empowered and positioned
and greater success by joining the Cargills increasing its employee count from 2 to expand further in the future.
Village to Home programme. Established to 22, and establishing a network of
in 1998 as a small-scale business, Radha organic farmers to supply raw materials
Lanka is passionate about producing healthy for their now highly-demanded products.
food products. Their main product is MEDI Additionally, the product awareness
SEED, a milk powder substitute made from created by Cargills has seen their
local pulses and traditional rice, which is products reach 141 Cargills Retail outlets
enriched with a high amount of alkaline and is and the Cargills Online store, along with
recommended as dietary aid for gastritis and export orders from abroad.
pancreas patients. Further, Radha Lanka has
also introduced two types of string hopper Mr Dasanayaka’s business is now secured
rice flour made with traditional Sri Lankan commercially with loyal customers,
rice varieties - Kalu Heenati and Suwandel – suppliers, employees and market
a healthier food option.
TAKING STOCK
97
Cargills
(Ceylon)
PLC
Annual
Report
2022/23

TAKING STOCK
HEALTHY,
98
Cargills
SAFE AND
(Ceylon)
PLC
Annual
Report
2022/23
AFFORDABLE
NUTRITION
According to a recently published World Bank report, non-communicable diseases (NCD)
such as diabetes, cardiovascular diseases, strokes, and cancers, account for almost
90% of the disease burden in Sri Lanka. Poor dietary habits and nutrition are major
contributors to the rising prevalence of NCDs and the associated inequitably distributed
financial burden related to control and care, which affects the Sri Lankan healthcare
system, as well as both wealthy and impoverished households.
TAKING STOCK
The ongoing economic crisis has caused further Cargills has taken a leading role in aligning
deterioration in the quality of nourishment and the local agricultural sector with advances in Value Delivered in
food safety available to the citizens of Sri Lanka, nutritive science, helping consumers make 2022/23
specifically to children who have been the most educated, discerning food choices. Due to its
Purchasing value of Good Harvest
affected by rising food and commodity prices. three-pronged approach of ensuring access to
produce:
The number of children struggling with various nutritious produce, guaranteed food safety, and
forms of malnourishment has increased for the providing healthier food alternatives, Cargills Rs. 56,671,243
first time in at least six years, according to a has been able to make healthy, secure and
government report and data from the Health affordable nutrition accessible to all Sri Lankans. Purchasing value of BeeSafe
produce:
Ministry. A nutrition-focused food supply chain
is seen as a long-term solution in order to This section provides an understanding of how Rs. 27,319,077
bridge the gap between balanced dietary needs, Cargills has pioneered strategies to render 99
undernutrition, the affordability of healthy food, nutritious, safe, and affordable food more Purchasing value of organic rice
crops: Cargills
and the overall health of the population. accessible to all. (Ceylon)
Rs. 20,010,205 PLC

Annual
Report
2022/23
Number of new products introduced
to the market:
27
Healthy, Safe and Affordable Nutrition

Contribution
to SDGs
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GOOD
100
Cargills
(Ceylon)
HARVEST
PLC
Annual
Report
2022/23
– Sri Lanka’s first

GAP-certified Produce Good Agricultural Practices (GAP) are a set of principles, regulations,
and technical recommendations applicable to production, processing,
and food transport, ensuring the safety and quality of produce in the
supply chain. The GAP certification ensures that farm products meet
quality standards as well as being environmentally friendly, socially
acceptable, and economically profitable for the farmers.
Cargills spearheaded the introduction of socially responsible

farming methods, resulting in the establishment of the Sri Lanka GAP
(SL-GAP) certification in 2019. At Cargills, fruit and vegetable products

distributed and marketed under the “Good-Harvest” brand label come
with the assurance that fertilisers and pesticides are used in adherence
to regulatory standards with globally accepted safe levels of residue,
and that control mechanisms are in place to continuously monitor
participating farmers’ crop record books at ground level.
To further emphasize the quality of the produce, each package of
“Good-Harvest” branded fruits and vegetables contains traceability
information and a distinct QR code.
TAKING STOCK
2022/23
Highlights
In the year under review, Cargills continued its
commitment for Good Harvest produce by growing its
GAP-certified farming community with 36 new farmers
being added to the network. A total 143 farmers
cultivating in a land extent of 278.4 acres in key farming
communities around the island were recorded to be
producing GAP-certified goods for the Cargills Good
Harvest brand as at the review year.
A year-on-year comparison of purchasing volumes and

values however, indicated a decrease due to various 101
challenges in the external environment affecting the
overall demand and yields. Cargills
(Ceylon)
PLC
Annual
Report
2022/23
2022/23
Quantity Purchasing
Purchased (Kg) Value (Rs.)

283,161 56,671,243
2021/22
Quantity Purchasing
398,290 65,482,402
Growth
Volume Value
TAKING STOCK
(28.9)% (13.5)%
BEESAFE
102
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
– Agrochemical free farming
Cargills introduced its BeeSafe range of completely organic fresh produce,
bridging the gap in the market for toxin-free, organic, fresh produce at
affordable prices. This range of ecologically cultivated products offers
numerous benefits to consumers, such as being free of agrochemicals
and rich in nutrients. Furthermore, it also contributes to environmental
sustainability by eliminating the use of harmful chemicals.
BeeSafe farmers employ scientifically proven biological processes in

agriculture, introducing microorganisms, natural herbicides, and pesticides
as an integrated system to maximise yields while reducing farmers’ exposure
to - harmful chemicals. To ensure the safety and quality of the produce,
Cargills has been creating toxin-free ecological zones to guarantee that
any crop cultivated within them will be free of all hazardous chemicals.
This will be demonstrated by the presence of bees within the zones, as
bees are notoriously sensitive to any harmful toxins and cannot survive in
an environment laced with harmful chemicals. Since its launch in 2019, our
BeeSafe range of fresh produce has been gaining increasing demand for its
organic goodness and affordable prices.
TAKING STOCK
2022/23
Highlights
In the year under review, 16 farmers were BeeSafe
certified, adding a toxin-free land extent of 8.8 acres
for cultivation of organic produce. The Bee Safe farmer
base at the end of the reporting period counted 48
farmers, with a total land extent of 27.1 acres. A total of
37 crop varieties are now cultivated under the BeeSafe
brand, with 11 of these having been introduced in
the year under review. The crops introduced in the
financial year 2022/23 were Kankun (Water Morning
Glory), Mukunuwenna (Sessile Joyweed), Cucumber,
American Oyster Mushroom, Abalone Mushroom, 103
Young Corn, Dambala (Winged Beans), Long Beans,
Snake Gourd, Thalanabatu (Thai Eggplant) and Kekiri Cargills
(Ceylon)
(Cooking Melon). PLC
Annual
Overall purchase volumes and value of Beesafe Report
2022/23
produce in 2022/23 indicated a value decrease
year on year due to a marginal drop in the volume
generated/purchased.
2022/23
Quantity Purchasing

109,599 27,319,077
2021/22
Quantity Purchasing
167,980 38,870,473
Growth
Volume Value
TAKING STOCK
(34.76%) (29.71%)
CARGILLS
104
Cargills
(Ceylon)
PLC
RICE
Annual
Report
2022/23
– Traditional organic rice For centuries, rice has been a staple of traditional Sri Lankan cuisine. Once
renowned as the granary of the East, Sri Lanka provided more than 2,000
indigenous rice varieties to the world. Rice cultivation was once considered
sacred in Sri Lanka, due to the sustainable methods used for production.
Cargills collaborates with the Parabowa Farmer Association to produce a

range of traditional rice varieties, free of agrochemicals and toxins. These
healthier traditional rice varieties have been designed to meet the changing
consumer preferences and are produced under specialist conditions,
providing better nutrition for the Sri Lankan people. The Cargills Traditional
Rice varieties have been found to be superior to commonly available rice

varieties, due to their higher antioxidant, fibre, iron and protein levels, as well
as having a low glycaemic index. There are six different varieties, each with
its own unique health benefits, providing consumers with easy access to
healthy and affordable daily staples.
TAKING STOCK
2022/23
Highlights
During the year under review, Cargills continued
to extend its commitment to providing healthy rice
alternatives to the nation. A total of 136 farmers were
registered under the Cargills Rice initiative as at the
review year with 177.5 acres of farming land dedicated
to the cultivation of heirloom paddy varieties including,
Kuruluthuda, Ma vee, KaluHeenati, Pachchaperumal
and Suwandel. Purchasing volumes grew by 16.7%
YoY while the value of the purchases almost doubled
and grew by 98% YoY, further strengthening and
incentivising farmer communities towards organic 105
harvesting.
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Cargills Traditional Rice

2022/23
Quantity Purchasing

38,590 20,010,205
2021/22
Quantity Purchasing
33,000 10,110,115
Growth
Volume Value
TAKING STOCK
16.7% 98%
ENRICHED
106
Cargills
(Ceylon)
PLC
NUTRITION
Annual
Report
2022/23
Our Research and Development (R&D) team is dedicated to delivering

superior products that meet the nutritional expectations of our consumers
while addressing the health issues of our country. We strive to maintain the
unique taste of our manufactured product ranges represented by consumer
favourite labels such KIST, Sam’s and Kotmale, by testing and re-engineering
recipes to control sugar, salt, and fat levels. We source fresh milk as well as
natural fruits and vegetables, preserving their goodness in terms of high
vitamin, mineral, and fibre content in our products.
In addition, we collaborate with R&D departments across a number of

state universities as well as nutritional experts to further our research and
introduce healthier consumer options to an evolving Sri Lankan market.
Nutrition-based Interventions for the Vulnerable

In the face of Sri Lanka’s economic crisis, food insecurity reached
concerning levels where an estimated 32% of households became food-
insecure at the height of the crisis last year, according to the Household
Food Security Survey (February 2023) published by the UN World Food
Security Programme. Cargills initiated several community projects to address
the nutrition-based challenges that impacted those living in vulnerable
communities that were disproportionately affected by the economic
crisis. Two community meals programmes were initiated in strategically
TAKING STOCK
selected locations, and the details and outcomes of these programmes are
summarised below.
Case Study:
School Meals Programme in Weekly Meals

Partnership with Lasallian Programme
Community Education Services in Grandpass
School children were the most impacted by food insecurities during the reporting period We supported St. Joseph’s Church in
and this was cited as one of the main reasons for lower school attendance in low-income Grandpass to provide weekly dinner to
communities. Through our collaboration with Lasallian Community Education Services, we people living in vulnerable communities 107
provide 250 packs of nourishing meals to school children in identified communities within in and around the area. Approximately
Cargills
a number of Colombo suburbs from Monday to Friday of each week. The students, who 14,000 meals were distributed among (Ceylon)
PLC
would otherwise go without meals and miss school days, showed an overwhelmingly positive families in need through this initiative as
Annual
response to this initiative. Areas served by this initiative include Colombo 13, Colombo 14, at the end of the reporting period this Report
2022/23
Wanathamulla, Obesekerapura, and Palliyawatte, where a total of 31,350 meals were provided fiscal year.
through this initiative during the review year.

TAKING STOCK
The Cargills New Product Consumer Surveys 2. Supermarket Surveys
Development (NPD) Process We carry out 2 types of consumer surveys: We examine the purchasing behaviour and
New product development in the food industry is customer awareness of selected brands and
a complex process that is regulated and followed 1. New Product Testing offers by way of supermarket surveys.
when introducing a new or improved product to
Sensory tests for product research and
the market. It involves creating, processing, and Agriculture Supply Chain Survey
product improvement are conducted at Food
commercialising the new or improved product,
City Outlets, where customers are asked to With a view to increasing efficiency and
with timelines ranging from three months to
sample the product and provide feedback on streamlining the process, we conducted a
three years.
preferences. An analysis of consumer surveys survey of the Cargills Agri supply chain with
conducted prior to introducing new products in data collected from seven stakeholder groups:
At Cargills, the first step in the NPD process
108 the review year is summarised in the table below: Farmers, Agriculture Officers, Vegetable
is understanding the pulse of the market and
Collection Centre Officers, Drivers, Vegetable
Cargills consumer expectations, which helps us identify
(Ceylon)
Descriptions Conducted date Processing Unit Officers, Cargills Retail Outlet
PLC opportunities in nutrition and translate them into
Mixed fruit nectar product Managers, and Customers. Improvements were
Annual products that satisfy our customer. In order to taste testing 21.2.2023
Report made in line with the findings.
2022/23 initiate this process, Cargills conducts consumer
Mixed fruit nectar product
surveys to gauge customer preferences, and taste testing 12.1.2023
these insights guide our NPD process. Product Improvements
Mango nectar product taste testing 2.1.2023
Products were improved or developed based
Tomato sauce product taste testing 21.12.2022
on responses and suggestions received by
Mango nectar product taste testing 5.12.2022
customers. A key example is Cargills addressing
Fresh water fish products testing 4.11.2022
consumer concerns on flavour enhances by
ensuring that no MSG is added to a number of
Cargills manufactured food products.
TAKING STOCK
2022/23
Highlights
During the year under review, we introduced five new consumer products, and four new healthy dairy product variants to the market:
No. Name Date of Launch No. Name Date of Launch
New Consumer Products New Healthy Dairy Product Variants:

Cargills Quality Food (CQF)
4 Cargills Quality Dairy (CQD)/Cargills Magic
1. Sam's: Chicken Kochchi Bites 25 April 2022
1. Magic: Lite Ice Cream Vanilla (500ml) 19 August 2022 109
z No added MSG
z No artificial colours
z 30% reduced fat variant of the Magic ice cream
Cargills
z No artificial flavours
z No added sugar (Ceylon)
z High fibre PLC
Annual
2. Sam's: Mutton Chinese Roll 16 December 2022 z High calcium Report
2022/23
z No added MSG
2 Magic: Lite Ice Cream Chocolate (500ml) 19 August 2022
z 30% reduced fat variant of the Magic ice cream
z No added sugar
3. Goldi: Pork Lingus (500g) 19 October 2022 z High fibre
z No added MSG z High calcium
Kotmale
z No added preservatives (Nitrites) 3. Kotmale: Pasteurised Milk with Almond (500ml) 15 September 2022
Finest: Turkey Sausage (300g)
z First-of-its-kind product made with 100% pure fresh
4. 16 December 2022
z No added MSG cow’s milk and 100% natural roasted almond paste/
z No artificial colours mixture
z Nutritional goodness of milk together with the health
z First turkey sausage product introduced by Cargills benefits of almonds

4. Kotmale: Dairy Drink Orange (180ml) 17 November 2022
z Combination of nutritive whey liquid from our
Bogahawatta cheese factory with orange juice to create
a refreshing beverage with dairy and fruit nutrients
5. Magic: Ice Cream Kithul (1L) 30 March 2022

z Made from locally sourced milk and kithul treacle
TAKING STOCK
Prioritising Health and Safety in New
Product Development
z Product Conceptualisation: Product z Manufacturing and Production: We ensure advice when needed. Furthermore, annual
concept development is based on factors that raw materials, processed products, and training sessions are held to keep distributors
such as trends, consumer preferences, new final products meet specific requirements up-to-date and advise them on how to uphold
concepts, market requirements and potential. and regulations from initial receipt through quality standards in products.
When developing any product concept, delivery of finished products. To do so, we z Use and Services: All products manufactured by
threats to food safety must be identified and follow established protocols that satisfy Cargills are produced for public consumption.
potential health benefits and risks considered. necessary standards and Quality and Food
z Disposal, Reuse or Recycling: The Cargills
z Research and Development: Throughout Safety regulations. In addition to routine
supply chain has a stringent product lifecycle
a new product’s development stage and physical, chemical and microbiological
110 management process that addresses all lifecycle
commercial production, we must adhere to in-house analysis, samples of products are
stages, from collection to final disposal. Cargills
Cargills
the necessary health and safety standards randomly selected and sent to accredited
(Ceylon) Quality Confectionaries collects and distributes
PLC
to guarantee product quality and food third party laboratories for testing and
Annual used and damaged packing materials to
Report safety. This adherence not only meets verification
2022/23 registered buyers for recycling. Cargills Retail
ISO 9001:2015 and ISO 22000:2018 z Marketing and Promotion: All Cargills outlets ensure the disposal, reuse or recycling
certifications, but also conforms to local promotional material demonstrate our of all waste generated at their sources, and the
regulatory requirements, such as the Food commitment to high-quality management solid waste at outlets is handed over to external
Act and the SLSI. standards and food safety. Annual training (municipal/private) garbage collectors. The Fish
z Certification: All of Cargills Production programmes help ensure sales teams and Processing Centre directs liquid waste to an
Facilities are certified. The year in review distributors stay informed and up-to-date effluent treatment plant that is released after
saw all our facilities maintain and/or renew on these standards. If product details are the BOD/COD levels are met, and remaining
necessary certifications in the areas of food modified, the public is informed. fish off cuts near end of shelf life, scales and
manufacturing, safety, and quality standards z Storage, Distribution and Supply: At offal are sold as animal feed or for fertiliser. The
by conducting audits and testing processes. designated warehouses for manufactured Vegetable Processing Units return coconuts
The Company is currently working towards products, batch picking is used instead of to be sold for copra, and vegetable returns are
extending Halal Accreditation to other single-order picking, resulting in improved given to registered collectors as animal feed/
countries for export purposes. A notable efficiency, reduced time, physical effort, and fertilisers. Market returns to the warehouse are
initiative in this regard was carried out at CPC a reduced number of pickers. A QR code given to relevant suppliers, with those under a
Lanka Ltd, where the entire Spice Processing system is used to identify each product to ‘no return policy’ disposed of by crushing the
Unit was reconstructed in accordance with ensure the traceability of fresher products item under a heavy-duty roller, with observation
food safety and hygiene standards during to outlets. Strict temperature monitoring is by an authorised officer, and handed over to
the reporting period. Production at the new employed in warehouses storing dairy and the Municipality or to a service provider with
premises started in August 2022. other products, with 24 thermo loggers record. Kotmale product packages provide
installed to meet food safety requirements. instructions for usage, suggesting recycling and
During distribution, all vehicles are outfitted safe disposal. Waste is collected separately from
with GPS to track temperature and other production area at the collection point outside
parameters in real-time. QA teams visit and majority of it is recycled, with the remaining
TAKING STOCK
supermarkets/retail shops monthly to check amount being incinerated, removed every

storage conditions, expiry dates, and provide four hours.
Ceylon Since 1844: For Healthy Living
The year under review also witnessed the Cargills Ceylon Since
1844 product range taking off as a premium Sri Lankan brand and
penetrating its target tourist market.
Ceylon Since 1844 was created to showcase authentic, regal

Sri Lankan heritage and the Ceylonese lifestyle of the past. The
brand sources organic/ecological products that inspire quality,
tradition, and the excellence of Ceylon cuisine worldwide. A total
of 18 products were initially launched at the end of the previous
financial year, including coffee, tea, coconut-based products,
spices, kithul treacle, and Ceylon cinnamon leaf tea, all produced 111
with no additives, artificial colours, flavours, or preservatives. The
Cargills
products were made available at selected outlets in Colombo (Ceylon)
PLC
and tourist destinations – successfully contributing Rs. 14.8 Mn. Annual
in sales to the Cargills business as of March 2023. With all raw Report
2022/23
material sourced from smallholder farmers, customers also directly
support to uplift their livelihoods when purchasing Ceylon Since
1844 products, while generating foreign exchange for Sri Lanka as
the range aims to be recognised as a premium Sri Lankan brand
across international markets.
Ceylon Since 1844 offers a range of organic products with the

highest quality, embracing the culture of traditional Ceylon. Our
coffee range includes Medium and Dark Roasted Ground Coffee,
as well as Drip Bags, all sourced from Kandyan forest gardens and
hand-picked by artisanal women. Our 100% pure Ceylon tea range
is mid-grown single origin, and offers English Breakfast Tea, Green
Tea, Spiced Black Tea and Loose-Leaf Black Tea. There is also a
variety of coconut-based products, such as Virgin Coconut Oil

(single estate), Coconut Cream and Coconut Chips (in pineapple
and savoury). Our organic spice selection consists of Ceylon
Cinnamon Powder, Whole Black Pepper, Whole Clove and Whole
Cardamom. Kithul Treacle is a natural sweetener, low in glycemic
index, high in antioxidants, fat-free and gluten-free.
We also offer Ceylon Cinnamon Leaf Tea, a product patented in

Sri Lanka, made of Ceylon cinnamon leaf and bark extract, enriched
with anti-inflammatory properties. Every pack helps contribute 2%
TAKING STOCK
to the Research & Development fund of Sabaragamuwa University
of Sri Lanka. Cargills received recognition from the World Bank
Funded Accelerating Higher Education Expansion and Development
(AHEAD) initiative for commercialising this product.
Ceylon Since 1844 Product Range
Coffee range
Dark Roasted Medium Roasted Dark Roasted
Arabica Ground Arabica Ground Arabica Ground
Coffee (100g) Coffee (100g) Coffee-Drip Bag
(100g)
Herbal Tea
Ceylon
Cinnamon Leaf
112 Tea (30g)
Cargills Organic Tea Range

(Ceylon)
PLC Organic Green Organic Spiced Organic English Organic Loose
Annual Tea (50g) Black Tea (22.5g) Breakfast Tea Leaf Black Tea
Report
2022/23 (50g) (100g)
Organic Coconut Based Product Range

Organic Virgin Organic Virgin Organic Coconut
Coconut Oil Coconut Oil Cream (400ml)
(500ml) (325ml)
Organic Coconut Organic Coconut

Chips: Pineapple Chips: Savory
(50g) (50g)
Organic Spice Range
Organic Ceylon Organic Whole Organic Whole Organic Whole

Cinnamon Black Pepper Cloves (45g) Cardamom
Powder (50g) (50g) (35g)
Kithul Product
100% Natural
Kithul Treacle
(375ml)
TAKING STOCK
We also carried out a number of enhancements Cargills Healthy Consumer Product Choice
to our existing product range during the

reporting period; the Brix level of our nectar Kotmale
range (mango, mixed fruit and apple) was Low Fat Pasteurised Milk – 500ml & 1L
successfully reduced by 1%, which allowed for Low Fat UHT Milk – 180ml & 1L
a reduction in its sugar content. This was the Low Fat Cheese Wedges – 120g
result of extensive research and development Non-Fat UHT Milk – 1L
to achieve a reduction without compromising Low Fat Stirred Yogurt – 80g (Vanilla, Strawberry and Mixed Berry)
quality or customer acceptability. An example
Aloe Vera Drinking Yoghurt – 180ml
of this success is the 0.52g/100ml sugar
Milk with Oats
reduction in mixed fruit nectar, which equates
180ml & 1L – Original
to an annual sugar usage reduction of 15,894.24 1L – Chocolate 113
kg (based on last financial year’s average mixed Cargills
KIST
fruit production quantity). This has enhanced (Ceylon)
PLC
the health and well-being of consumers, while Aloe Vera Drink – 200ml & 500ml
Annual
reducing production costs for the Company. Absolute Juices (No Added Sugar) Report
2022/23
(1L - Orange, Apple, Grape, Mixed Fruit, Green Apple)
(200ml – Apple, Green Apple, Orange and Grape)
Year-over-year sales growth in our health and
nutrition-focused product ranges supports the CQF
evolving consumer trend of opting for healthier Goldi: Chicken Omega 3 Sausage
alternatives, validating our investments in *The Cheese and Aloe Vera products were released in January/February of the 21/22 financial
continuously improving our product ranges for year, which resulted in lower sales for the previous financial year hence a higher percentage
the nutritious, affordable fare. increase in the current year.
Consumer trends of the review year

Healthy products typically cost more than regular products, making them less
affordable given the current economic climate. Despite offering many health
benefits, a decrease in buying power and demand has been noticed in selected
product categories as highlighted on the table below:

Product Health Benefit
Lite Nectar – 200ml z Less sugar

z No added sweeteners
Lite drinking yogurt – 200ml z High Protein
z Only 1% of Fat
z Reduced sugars
z No added sweeteners
Kotmale Unsalted Butter – 200g z No added salt
Non-Fat Set Yoghurt – 450g z Non-fat
z Contains Probiotics
TAKING STOCK
FOSTERING
114
Cargills
(Ceylon)
A STRONG
PLC
Annual
Report
2022/23
REGULATORY
ENVIRONMENT
At Cargills, we strive to foster a strong regulatory environment to ensure our products are healthy, safe, and affordable. To this end, our product
development teams adhere to specific nutrient criteria along the Cargills food value chain. We are compliant with internal policies and regulations for food
safety, quality, and nutrition, and comply with local and global policies, regulatory frameworks, and reference standards. Our automated manufacturing
processes take place in sterile environments with anti-bacterial cold rooms, cold storage, and manufacturing facilities that are ISO certified (refer pages 40
to 43 under Food and Beverage Manufacturing).
TAKING STOCK
We use lower than allowed maximum levels of preservatives During the reporting period, Cargills also
2022/23
such as nitrates and nitrites. To educate consumers and enable extended its regulatory oversight to the
informative decision making, we have a Cargills nutritional Lak Bojun programme launched in May 2022 Highlights
information table on our product labels. We also ensure that our in collaboration with the Department of
For the 22/23 FY, all brands under
products, ingredients, labels, and claims are factually correct, Agriculture’s Women’s Agriculture Extension Cargills Ceylon have achieved a
endorsed by scientific evidence, and consistent with Sri Lanka Programme, “Hela Bojun”. The Cargills QA team 97% labelling requirement, which
Food Act standards. Our Quality Assurance department performs regular audits of all Lak Bojun units represents an improvement of
6% compared to the 21/22 FY,
benchmarks our practices to the World Health Organisation and to ensure that the quality, safety, and nutrition due to initiatives taken to ensure
Food and Agriculture Organisation Codex Alimentarius standards. factors meet all set regulations. responsible labelling.
Company/brand Instructions for Disposal logo Complete list of More details of the Lak Bojun Programme can
storage ingredients in
descending order be found under “Building Equality, Diversity, and 115
Yes (%) Yes (%) Yes (%)
Inclusion” on pages 138 to 143. Cargills
CQD 100 100 100 (Ceylon)
PLC
CQF 100 100 100 Annual
Report
KIST 92 54 100 2022/23
KIST Biscuits 100 97 100
Kotmale 100 100 100
My Choice 86 82 78
Total 96 89 96
Legal Compliance Status Year-on-Year

All legal requirements are met
%
100 95%
80
60

40
20
0
Aug Mar Jan Mar Oct Mar Mar Mar Mar
16 17 18 18 18 19 20 22 23
TAKING STOCK
116
Cargills
(Ceylon)
PLC ENHANCING
YOUTH SKILLS
Annual
Report
2022/23
Investment in the skillset of young people is indispensable for sustainable economic growth.
Such initiatives not only ensure the optimal utilisation of their potential but prepare them for the
ever-changing demands of the global and local job markets, particularly in countries like Sri Lanka
where the majority of the youth population is from areas with limited access to resources.
Cargills has been actively contributing to this cause by providing youth access to new skills and
knowledge, recognising the fact that they are presented with fewer opportunities to develop their
capabilities. We are dedicated to providing them with competitive advantages in the local and
international job markets, enhancing their employment prospects and increasing their earning power.
The section herein provides further details on our progress in this domain.
TAKING STOCK
Value Delivered in
2022/23
Total training hours: 64,510
a 105% increase YoY
Employee reach through Cargills

AAPI eLearning Platform: Over 60%
of all Cargills employees,
a 77% increase YoY

117
Total number of new students joining
the Early Childhood Education (ECE) Cargills
(Ceylon)
Programme: PLC
10,283 Annual
Report
2022/23
Total number of new pre-schools

introduced to the ECE Programme:
294
Total number of preschool teachers

undergoing capacity building
1,343
Contribution
Enhancing Youth Skills

to SDGs
TAKING STOCK
Albert A Page Institute
Established in 2006, the Albert A Page Institute (AAPI) serves to
empower youth by providing vocational training and professional
development. The AAPI offers certifications and diplomas
specifically tailored to the food and manufacturing sectors, as
well as soft skills courses for junior, middle, and senior managers.
An on-the-job training system was also implemented to teach
new skills and promote career advancement. Accreditation was
obtained through the US-based Independent Grocers Alliance
(IGA), offering a global view of agriculture and current industry
118 challenges. Additionally, AAPI’s Management Trainee Programme
recruits an average of over 60 local university graduates for
Cargills
(Ceylon) a year-long intensive programme across multiple sectors of
PLC the Group.
Annual
Report
2022/23
During the COVID-19 pandemic, the AAPI swiftly shifted to
livestream training programmes with a comprehensive plan
to cover specific teams, outlets, and target groups. Technical
challenges in mobilising the training programmes to teams across
the country led to the development of the Cargills AAPI eLearning
Platform in January 2022, offering anytime, anywhere access to
digitised course content with practical sessions conducted at
relevant retail outlets and manufacturing plants. English literacy
was addressed with a multi-level, multi-lingual approach, along
with an English language course to improve basic linguistic and
communication skills. A competitive ranking system was introduced
for individual employees and Retail outlets to encourage and
promote self-learning. Courses are updated biannually by a think-
tank of close to 50 expert resource persons from across the
Group, to ensure that we retain and transmit relevant
tacit knowledge.
TAKING STOCK
2022/23
Highlights
The AAPI continued to meet the evolving training needs of Cargills employees across the island in the review year. Focussed efforts to expand our reach
among employees through the AAPI Platform saw training engagement levels increasing to cover 60% of the staff population during the year under review
while doubling the number of training hours year-on-year.
2020/21 2021/22 2022/23
Total training hours 30,154 31,445 64,510
Total number of participants 11,303 6,111 10,554

Average training hours per participant 2.67 5.15 6.11 119
Cargills
(Ceylon)
AAPI 2022 – 2023 Number of trainees Training hours Male Female PLC
Annual
Executive Non-Executive Total trainees Executive % Executive Non-Executive Total hours Executive % Report
2022/23
AAPI Class Room - Retail 624 197 821 76 4,106.00 1,346.00 5,452.00 75 695 126
IGA Training Platform 29 248 277 10 13.80 71.90 85.7 16 110 167
AAPI e-Learning Platform 1,056 6,444 7,500 14 10,522.00 43,233.00 53,755.00 20 3,123 4,377
Cargills Quality Dairies 31 364 395 8 66.00 752.50 818.50 8 265 130
Limited (CQD)
Kotmale Kelanimulla 44 191 235 19 53.18 239.18 292.36 18 200 35
Kotmale Bogahawatta 17 286 303 6 37.50 562.90 600.40 6 180 123
Cargills Quality 9 25 34 26 31.00 69.00 100.00 31 33 1

Confectionaries Limited
(CQC)
Cargills Agrifoods Limited 64 152 216 30 115.65 302.90 418.55 28 165 51
(CAF)
Cargills Quality Foods 21 171 192 11 65.30 375.35 440.65 15 110 82
Limited (CQF)
KFC 57 524 581 10 296.00 2,251.00 2,547.00 12 424 157
Total 1,952 8,602 10,554 18 15,306.43 49,203.73 64,510.16 24 5,305 5,249

The total number of registrants for the IGA Programme conducted online in English for the period under review was 277, a steady growth that evidences the
success of the e-Learning Platform, as well as the growing confidence in team members as they advance their linguistic and knowledge capacities.
Cargills also continued to build professionals of global quality in its restaurant sector with 581 KFC team members undergoing 2,547 training hours in line
with global KFC standards during the reporting period.
A tailored training programme was conducted by the Human Resource Division during the reporting period to familiarise team members with the new HR
System as well as the evolving HR practices, procedures and policies. The programme reached over 1,000 team members covering all provinces.
TAKING STOCK
Partnering with State During the period under review, we collaborated with multiple state-funded universities on a variety of projects.
Universities University Collaborations for New Product Development Projects

Cargills is invested in collaborating with State university Research project Details Status
Sri Lanka’s state universities in order to stimulate
research and innovation through New Product Sabaragamuwa Cinnamon Leaf Tea Cinnamon tea has 100% times The Ceylon Cinnamon Leaf Tea was officially
Development (NPD) initiatives. Consequently, University higher health benefits compared unveiled on 11 March 2022. In line with
students are presented with the opportunity and to other cinnamon infusions the agreement between Sabaragamuwa
resources to translate their advanced research including aiding weight loss, University and Cargills Ceylon PLC, the latter
improving heart health, alleviating has contributed 2% of the proceeds from
ideas into healthier and more nutritious products
menstrual cramps, and reducing each sale towards the university’s Research
under the Cargills brand. Furthermore, the inflammation and blood sugar and Development Fund. Cargills has been
120 Cargills network of local and global organisations levels. recognised for commercialising this product by
as well as funding agencies supports extensive Accelerating Higher Education Expansion and
Cargills
(Ceylon) research and development projects. Development (AHEAD), a World Bank-funded
PLC Sri Lankan Government initiative that supports
Annual
Report
the higher education sector.
2022/23
University of Aloe Vera Stirred A yoghurt product rich in The final plant trial was completed during the
Peradeniya Yoghurt probiotics and made with the reporting period, and the product is ready to
goodness of 100% pure milk and be released to the public.
real aloe vera chunks.
Sabaragamuwa New product An agreement was inked during the year in
University development review between Cargills Agrifoods Limited and
Sabaragamuwa University for the development
of a new product.
Industrial Technology New product In progress
Institute development
University of Ruhuna New product In progress
development
TAKING STOCK
Formalisation of agreement
between Cargills and The
University of Peradeniya for
the Aloe Vera Stirred Yogurt
Project
121
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Formalisation of agreement
between Cargills and the
Sabaragamuwa University
for the development of a
new product

TAKING STOCK
The Cargills Foundation
In 2018, the Cargills Foundation was established
with the intention of enhancing economic and
social prosperity in the communities in which
the Company operates and to serve these
communities beyond our business obligations.
Education was identified as the primary focus
and to begin with, the Foundation sought to
foster growth by advancing preschool education
in Sri Lanka.
122
The Early Childhood
Cargills
(Ceylon) Education (ECE) Programme
PLC
Annual Launched in 2019 as the first focussed project
Report
2022/23 of the Cargills Foundation, the ECE Programme
aims to introduce English as a second language
to preschool-aged children, along with the
basic concepts of STEAM (Science, Technology,
Engineering, Arts and Mathematics). The
Programme, which uses blended learning, helps
develop the social, emotional, cognitive and
physical capabilities of pre-schoolers, with a
view to building a strong foundation for lifelong
learning and well-being. The curriculum has
been developed to align with local learning
guidelines. The pilot programme which
commenced in May 2019 reached 737 students
aged three to five across 48 preschools in
the Western Province, upon its successful
completion in December 2020. It has since been
endorsed by the National Institute of Education
as a supplementary programme to the local
preschool curriculum in Sri Lanka. Furthermore,

the Foundation also conducted capacity
building of preschool teachers, training and
mentoring them to implement the Programme
and to enhance their English literacy.
TAKING STOCK
The Early Childhood Education (ECE) Programme

2022/23
Highlights
Cargills continued to enhance the ECE Programme Cargills English as a SLT-MOBITEL PEOTV and Charana
in the review year, dedicating itself to the cause of
educating pre-schoolers in five additional provinces.
Second language (ESL) Storybooks TV Partner with Cargills Foundation
The Foundation formalised agreements to make the Printed editions of Cargills ESL storybooks are made to Develop English Language Skills
Programme available to preschools in the Uva, Central, available at all Cargills Retail outlets and are sold for Among Young Learners
North Central, Northern and Eastern Provinces, thereby Rs. 350/- per copy. This deployment of print copies
SLT-Mobitel, through its Internet Protocol Televisions
evidencing our commitment to providing better serves to raise funds for the classroom-based ECE
(IPTV) service, PEOTV and local variety channel
education for children outside the Western Province. Programme, provided to preschools free of cost by the
Charana TV, formalised a partnership with the
Cargills Foundation.
Cargills Foundation in the review year, to launch
During the review year, 294 new preschools onboarded an edutainment programme for children titled
the Programme bringing the total preschools on As of 31 March 2023, five titles were available on the 123
‘BADANAMU’. This is the first programme broadcast
the Programme to 336. 1,343 preschool teachers shelves and a steady traction towards sales has been
in English on Charana TV, aimed at helping young
participated in capacity building and training during the witnessed throughout the year. Cargills
learners become proficient in English as a Second (Ceylon)
year, with more than 108 hours of in-person and online Language (ESL) in a fun and emotionally engaging PLC
teacher-training sessions being invested in them. The manner, while being introduced to concepts in Science, Annual
total number of teachers having undergone capacity Technology, Engineering, Arts and Math (STEAM).
Report
2022/23
building from the commencement of the Programme
to the end of the review year is 1,431, with over 11,000 The programme is expected to fill a void in terms of
children learning on the Programme since inception. educational video content available to young learners
This demonstrates the Foundation’s dedication to in Sri Lanka, and Charana TV’s wide reach provides
bringing brighter prospects to pre-primary youngsters maximum coverage of this content to help bridge
of our nation. second language gaps in local communities.

TAKING STOCK
Creating a Vibrant and Engaging Work Culture ultimately allowing for a more fun and open workplace. The events
Cargills, a growing organisation with a workforce of more than 11,000 employees, held across our corporate units are summarised in the table below:
recognises the importance of fostering a vibrant and inclusive workplace culture
Sector Company Event
across all its business verticals and units. The Company believes that cultivating
such an environment of open communication and mutual respect is essential in
Retail Cargills Retail Support Services Cricket match and
order to remain a preferred employer and attract top talent.
(Warehouse and Processing get-together
Units)
To ensure a strong, favourable work culture, Cargills set out to create a wealth of Restaurants KFC Cricket match
opportunities for their employees to benefit from, equipping them with a sense of
Manufacturing Cargills Quality Dairies Cricket match and
dynamism and a supportive environment that congruently fosters personal growth. get-together
Striving to build effective relationships, a number of events were held during the
Kotmale Cricket match
124 year under review, including cricket matches and team get-togethers, instilling team
Cargills Quality Confectionaries Get-together
Cargills spirit and unity, and providing opportunities to interact and network with colleagues.
(Ceylon) Cargills Agri Foods Get-together
PLC
Annual Following the relaxation of the COVID restrictions in the year 2022/23, Cargills was Cargills Quality Food Get-together
Report
2022/23 eager to reignite the role of employee engagement and renew of employee bonds, Offices Head Office/Corporate and Cricket match
Millers Offices
TAKING STOCK
125
Cargills
(Ceylon)
PLC
Annual
Report
2022/23

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BUILDING
126
Cargills
EQUALITY,
(Ceylon)
PLC
Annual
Report
2022/23
DIVERSITY AND
INCLUSIVITY
At Cargills, we recognise the power that a strong corporate culture founded on equality, diversity,
and inclusivity can have in creating a sense of belonging and acceptance for all. We are committed
to embedding this ideology into our corporate ethos and strategic agenda through the development
of actionable programmes, policies, and initiatives that promote opportunities for all, regardless of
gender, race, sexual orientation, age, experience, or economic status. We believe that embracing
differences and celebrating diversity encourages true equality and leads to equitable opportunities
for all. By striving towards a culture of openness and understanding, we are setting a standard in the
workplace and wider community setting, in which everyone feels respected, valued, and appreciated.
TAKING STOCK
Given that females make up 52% of the entire
population in Sri Lanka, it is disheartening to note
that only 33.6% of the working population is yet
represented by females. As such, enabling female
participation in economic development is a focal
point in our national outreach programmes and
employee development and workplace culture-
related policies. We firmly believe that providing
safe, equitable, and dependable employment
and entrepreneurial opportunities for females
can help them in acquiring a more active role in
the labour market, thus leading to upliftment in 127
communities, households, and living standards. Cargills
(Ceylon)
PLC
In keeping with our commitment to advancing Annual
Report
equality, diversity and inclusivity, Cargills 2022/23
actively promotes disability inclusion and equal
employment opportunities to differently-abled
individuals. This allows us to provide equal access
to financial security, productive employment,
and life-long learning to all. We employ staff
with diverse abilities in both front-end (serving
customers) and back-end work. Our colleagues
are educated and equipped on supporting
their differently-abled co-workers and regular
communication is maintained with their families/
guardians to ensure that their needs are
sufficiently met. The United Nations Sustainable
Development Goals (UN SDGs) continue to be an
Building Equality, Diversity and Inclusivity

integral part of our efforts to create a physically
inclusive and equitable workplace.
Taking a closer look at our initiatives, one can

understand our commitment to creating more
equal, diverse, and inclusive environments for
our staff and neighbouring communities. Our
selection of programmes, policies, and initiatives
discussed herein lay out our mission to promote
fairness and inclusivity in the workplace and
TAKING STOCK
beyond.
Enabling Females
in Farming Communities
Female agriculture workers contribute immensely
to our farming projects and programmes,
which connect farms to homes in a meaningful
way. While actively revamping Sri Lanka’s
agricultural supply chains and adding layers
of productivity to help the growth of farming
communities during the past two decades, we
have also created opportunities for women in
farming communities to reap the advantages of
128 economic prospects and market participation.
Cargills Such advantages not only enhance household
(Ceylon)
PLC incomes and the standards of living in farming
Annual communities, but also contribute to better
Report
2022/23 education for children, and improved health and
nutrition for all. Special microfinancing activities
have also been adopted to advent more female
investors and workers in agriculture and dairy
production, as well as encourage women to take
ownership of farms.
TAKING STOCK
2022/23
Highlights
Agriculture
Modernisation Project
Total number Female
of farmers ownership
839 145 17%
129
Good
Cargills
Harvest (Ceylon)
PLC
Total number Female
Annual
13%
Report
2022/23
143 19
BeeSafe
Total number Female
17%
48 8

TAKING STOCK
ADVANCING FEMALE
130
Cargills
(Ceylon)
ENTREPRENEURSHIP
PLC
Annual
Report
2022/23
IN FARMING
COMMUNITIES
TAKING STOCK
Case Study:
131
Cargills
(Ceylon)
PLC
Dairy Development Programme

Annual
Report
2022/23
Madara Pumal
Mrs Madara Pumal is a shining example issues like inadequate feed and poor Through her success, Mrs Madara has
of the success that can be achieved planning, leading to an expansion of become an adept source of knowledge
through the adoption of innovative her farm by 1.5 acres, in addition to for neighboring dairy farmers, with
best management practices, knowledge the installation of an irrigation setup. her Dairy Development Plan and best
sharing, and sustainability in dairy farming. Additionally, she incorporated Total Mix management practices being widely
When Mrs Madara established her Ration (TMR) into the cows’ feed, along replicated. Mrs Madara now has her sights
smallholder farm, she was having difficulty with other nutrient-rich ingredients like set on doubling her milk productivity by
making ends meet, due to low milk gliricidia and azola. the end of 2023, serving as an inspiration
production. Following a training session to all small-scale dairy farmers with
hosted by Cargills, she was inspired to Mrs Madara’s hard work was met with dreams of similar accomplishments. As
take an entrepreneurial approach to dairy significant progress. Her daily milk yield a testament to the reward of innovation,

farming and build a Dairy Development skyrocketed from 35 litres to 52 litres, hard work, and entrepreneurship in the
Plan aimed at helping her boost her milk while the ingredients’ SNF content dairy industry, Mrs. Madara is also aiming
productivity. increased to 8.2% with fat content to exceed her current yields, targeting 100
increasing to 4.5%. Leveraging the liters of daily milk production, while aiming
To ensure the successful growth and technical and financial support of Cargills, for sustainability through Climate Smart
development of her herd, Mrs Madara Mrs Madara then upgraded her cattle Dairy Programme methods.
worked alongside a Cargills Dairy shed. She also started taking measures
Extension Officer to identify and address to improve calf management and sustain
feed availability throughout the year.
TAKING STOCK
Creating a Safe, Equitable and Enabling Workplace
As one of the largest business conglomerates in Sri Lanka, Cargills
has striven to advance diversity and inclusivity in its supply chain,
bridging divides and presenting better economic prospects to
under-represented and under-served communities across
the island.
In congruence with our theme of creating equal opportunities

for all, 68.5% of the entire staff strength of the Company hails
from outside the Western Province, while 49% are female. Cargills
remains well-diversified and is an equal opportunity employer,
132
that provides impartial recruitment, remuneration and promotion
Cargills opportunities.
(Ceylon)
PLC
Annual
Report
In anticipation of further progress, the Company set a four-
2022/23 year target to achieve gender parity across all levels of the Number of employees
11,033
organisation, including an aspiration to increase female
Male Female
representation in top management from 40% by the FY 2024/25.
Additionally, our Retail teams are 57% female, with 79 females 5,594 5,439
occupying managerial and supervisory positions at both front-and
back-end operations contributing to the growth of the sector.
Workforce
At Group level, Cargills has achieved an overall Non-Executive Management 71.83% 28.17%
by Grade
gender split is 50:50 while the male to female split of the Top and Gender 71 51 20
Management still remains at 72:28 (M:F).
Executive 60.09% 39.91%
Cargills remains committed to reach further progress in this area 1,626 977 649
and has been a member of the Target Gender Equality Programme
which is a UN Global Compact-sanctioned accelerator designed Supervisory 81.03% 18.97%
to help businesses set and reach aspirational targets for gender
311
equality. We are an equal opportunity employer at all stages

252 59
including the point of promotion.
Male Junior 47.80% 52.20%
Female 9,025 4,314 4,711
Workforce
by Grade
Supervisory Executive Management Junior
TAKING STOCK
0.64% 14.74% 2.82% 81.80%

Workforce by
Province and
Gender 317
Northern Province
54.57% 45.43%
173 144
380 Eastern Province

381
North Central Province
57.63% 42.37%
133
49.61% 50.39% 219 161
189 192 Cargills
(Ceylon)
PLC
833 1,915 Annual
North Western Province Central Province Report
2022/23
50.78% 49.22% 49.45% 50.55%

423 410 947 968
1,267
3,474 Uva Province
Western Province
51.70% 48.30%
54.55% 45.45%
655 612
1,895 1,579
998
Sabaragamuwa Province
47.29% 52.71%
1,468
Southern Province 472 526
42.30% 57.70%

621 847
Male
Female
Provincial
Distribution of
Workforce
Western Province Outside the Western Province
TAKING STOCK
31.49% 68.51%
Workforce Workforce
by Age by Years of
and Gender Service and
Gender
>=56 years 76.47% 23.53% 0-5 years 44.61% 55.39%

17 13 4 7,601 3,391 4,210
51-55 years 69.09% 30.91% 6-10 years 57.12% 42.88%

134
220 152 68 1,579 902 677
Cargills
(Ceylon)
PLC
41-50 years 63.96% 36.04% 11-15 years 67.46% 32.54%
Annual
Report
2022/23
1,196 765 431 968 653 315
31-40 years 58.77% 41.23%

…% 15-20 years 71.89% 28.11%
2,532 1,488 1,044 523 376 147
26-30 years 45.07% 54.93% 20-25 years 72.50% 27.50%

2,412 1,087 1,325 280 203 77
18-25 years 44.87% 55.13% 26-30 years 82.46% 17.54%

4,656 2,089 2,567 57 47 10
30+ 88% 12%

25 22 3
Age Service Male

Male
Analysis of Analysis of
Female Female
Workforce Workforce
18-25 26-30 31-40 41-50 51-55 >=56 00-5 Years 06-10 Years 11-15 Years 15-20 Years 20-25 Years 26-30 Years 30+
42.20% 21.86% 22.95% 10.84% 1.99% 0.15% 68.89% 14.31% 8.77% 4.74% 2.54% 0.52% 0.23%
TAKING STOCK
Encouraging Female Entrepreneurship at the
Community Level
The Cargills Foundation’s Early Childhood Education (ECE)
Programme (page 122) has created a well-regulated and broad
learning platform for preschoolers in Sri Lanka while allowing us to
identify a new path of empowerment for the predominantly female
educator-driven field of preschool education. The ECE Programme
helps the development of teachers’ skills and enhances their
digital and English literacy standards. The pioneering initiative
of the Cargills Foundation has provided women with the skills
and tools necessary to succeed in the ever-changing, hybrid
learning environment. The ECE Programme has revived long-
135
standing preschools with new teaching methods and intakes, Cargills
(Ceylon)
while also acting as an invaluable lifeline for female teachers and PLC
entrepreneurs during lockdowns, pandemic-related educational Annual
Report
disruptions, and other economic challenges that Sri Lanka has 2022/23
been battling with throughout the recent years.

TAKING STOCK
Capacity building of
preschool teachers
ECE PROGRAMME
TESTIMONIALS
Ms Ramya Kumarihami Ms R M S M Ranasinghe Ms Renuka

136 Dimuthu PS, Padaviya Chamara Janaka Memorial PS, Nissanka PS, Rieemaliyadda
North Central Province Hewaheta Uva Province
Cargills
(Ceylon)
Central Province
PLC
Annual
With her 26 years of experience in education, Three years ago, when the founder of the Ms Renuka stated that she was initially
Report Ms Ramya has seen firsthand the remarkable school retired, Ms Ranasinghe took the helm. intimidated by English prior to joining
2022/23
impact of the Cargills Programme on the Prior to that, she taught at another school in the Cargills Programme, however, she
learning environment of her community. It has the same area for six years. When she arrived, has managed to use it to enhance her
transformed into a more interactive space English had been limited to learning words knowledge and abilities. She invested extra
where parents, teachers and students all and singing a few songs; now, with Cargills’ time into learning and diligently followed the
contribute to the process of English language teaching method, the teachers are equipped Programme’s criteria while also maintaining
learning. To help her students master what to provide the kids a unique learning her school curriculum. The effectiveness of
they learn in school, Ms. Ramya provides experience. She managed to complete six the Cargills English Language Programme is
them with additional activities to complete at books, along with tablet activities, with the evident from the Grade One interviews this
home. Young mothers, educated in a modern recent batch of students. With the new year, wherein the kids possess the ability
environment and now having some level of students she has already taught two books to confidently describe colours in English.
English proficiency, greatly appreciate this and the parents and community are highly The Programme and its merits have spread
opportunity their children are afforded. It enthusiastic about the Programme. The across the region, leaving many parents,
is visible in the increased fluency of the teacher is grateful for the value the Cargills’ who lacked the opportunity to learn English
children, who can now express themselves in English Programme has brought to her school in their childhood, proud to witness their
English. With such positive signs, Ms Ramya and is excited to get the most out of this children learning English more effectively and
is confident that the Cargills Programme will wonderful opportunity. efficiently.
become increasingly popular in the years

to come. She elucidates the importance of
English from Grade One and encourages
parents to consider the Programme when
making decisions about educating their kids
to prevent enrolling them in costly English
tuition without simply registering them in
primary school.
TAKING STOCK
Case Study:
137
CARING FOR
Cargills
(Ceylon)
PLC
Annual
CHILDREN
Report
2022/23
AT THE EASE
FOUNDATION

Cargills undertook the responsibility to provide a daily
supply of milk and biscuits for 35 children who are part of
the EASE Foundation in Battaramulla. The beneficiaries are
differently-abled children, who through the Foundation,
receive quality education with the engagement of their
families. This ensures that the children are fully supported
to achieve stimulating and productive lives, despite their
differences.
TAKING STOCK
Cargills Lak Bojun – Empowering Female SME Owners
In May 2022, Cargills launched the Cargills Lak Bojun initiative
in collaboration with the Department of Agriculture, Women
Agriculture Extension Programme (“Hela Bojun”). This initiative
gave women-run SMEs who had undertaken Hela Bojun
training, the opportunity to sell their nutritious breakfast items
to customers at Cargills Retail outlets. The initiative’s goal was to
encourage customers to select healthier breakfast foods, aiding
the development of women-run SMEs and helping to boost their
income.
138 The selection process for SMEs involved the use of the
Cargills Cargills Village to Home database and the SME databases from
(Ceylon)
PLC Government-operated initiatives such as “Vidatha”. The Western
Annual Province Department of Agriculture provided selected SMEs with
Report
2022/23 training programmes and technical assistance, while the Cargills
Quality Assurance team monitored the food safety and excellence
regulations set by Hela Bojun, including the ban on wheat-flour-
based products.
Cargills Bank sponsored the first Cargills Lak Bojun cart, while
five additional carts were provided by the SUN Business Network
(SBN), an initiative administered by the World Food Programme
(WFP). Customers could find locally sourced and nutritious
breakfast items such as millet and sago porridge, and ready-to-
eat foods made from root crops and grains, all at an affordable
price. Additionally, sustainable packaging options, including paper
cups, banana leaves, kanda (macaranga peltata) leaves, and the
bio-compostable wrap/lunch sheets, were promoted to ensure the
initiative’s long-term sustainability.
At present, the Cargills Lak Bojun carts are operational in

eight locations, offering healthy lunch and dinner options too
– supporting the entrepreneurial efforts of even more women-
owned SMEs. This initiative has since seen an impressive income
total of over Rs. 7 Mn. as of 31 March 2023.
TAKING STOCK
As at date, eight carts are in operation, enabling 14 women-led businesses at selected strategic
Cargills locations.
Cart Number of SMEs Joined From Location

Benefited
1 1 The Hela Bojun Project Rajagiriya - 1

2 2 – Nugegoda - 2
3 3 The Small Enterprises Development Division (SED) Kollupitiya - 2
Vidatha Kollupitiya - 2
4 1 – Battaramulla
5 2 The Small Enterprises Development Division (SED) Cargills Head Office 139
6 1 Ministry of Women and Child Affairs Narahenpita
Cargills
7 2 Vidatha Millers Office (Ceylon)
PLC
8 2 The Small Enterprises Development Division (SED) Cargills Bank Annual
Report
Total Carts: 8 Total SMEs: 14 2022/23

Rajagiriya - 1 Nugegoda 2
TAKING STOCK
140
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Kollupitiya 2 Battaramulla Cargills Head Office

TAKING STOCK
Narahenpita Millers Office Cargills Bank

LAK BOJUN
SUCCESS STORIES
141
Cargills
(Ceylon)
PLC
Annual
Report
Eranga Niyomi
2022/23
Pieris
Eranga Niyomi Pieris has emerged as a shining example among female entrepreneurs actively involved in the
Cargills Lak Bojun initiative. Having joined on 9 August 2022, her cart can be found at the Food City outlet in
Kollupitiya and she now resides in Rathmalana with her husband and daughter. Previously, Eranga struggled
to keep her small-scale clothing business afloat amidst the economic fallout of the global COVID-19 crisis.
Nevertheless, through a fortuitous connection to Cargills and guidance via the “Vidatha” Programme, she
had the opportunity to pivot and start selling nutritious breakfast products. Throughout her venture, she has
received ongoing support and training from Cargills, and her products are regularly examined and assessed for
quality.

Now, as the primary breadwinner of her own family, Eranga has gone on to employ her niece, who is paid
Rs. 20,000 each month to prepare Helapa for sale at her Lak Bojun cart. Her brother also provides support,
and earns a salary each month. Additionally, she has her three-wheeler driver who is paid transport costs to
keep the venture running - he pays his leasing fees from the money he makes while working for Eranga.
Eranga has also been taking advantage of Cargills Bank to save a greater portion of her income for her own
personal use, helping her to secure her financial future.
TAKING STOCK
LAK BOJUN
142 SUCCESS STORIES
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
W Supuni Nirmani
Fonseka
W Supuni Nirmani Fonseka, a female entrepreneur, has achieved remarkable success thanks to the Cargills
Lak Bojun initiative. Residing in Kalubowila with her family – while her husband ran a small business and she
cared for her three children – financial difficulties were a common occurrence in Supuni’s life. On 22 August
2022, Cargills and the National Enterprise Development Authority provided her with an opportunity to break
these barriers, and Supuni stepped forward to embrace it. However, with her family responsibilities taking up
much of her time, she struggled to manage the food cart on her own. This is where Ishara – a school-leaver
from Homagama, living with her disabled brother, carpenter father, and mother – came in, providing her with
the assistance she needed. Not only did she help with Supuni’s food cart, but Ishara was also given a chance
to earn additional income through a training programme with Cargills Ceylon as a sales promoter. Thanks to
Cargills Lak Bojun, Supuni is now able to cover day-to-day expenses and save for the future.
TAKING STOCK
LAK BOJUN
SUCCESS STORIES
143
Cargills
(Ceylon)
PLC
Annual
Report
Indrani
2022/23
Indrani first began her career as a Cargills Lak Bojun entrepreneur on 17 November 2022, with her cart situated
at the Narahenpita Food City outlet. She resides in Borella and has a family of five, including her husband and
three children. Her husband was previously a mechanic, although he is currently unemployed.
Due to her husband’s unemployment and her own status as a housewife, Indrani had to suffer through severe
financial hardships. Fortunately, through the Women’s Bureau of Sri Lanka (Ministry of Women, Child Affairs,
and Social Empowerment), she was offered the opportunity to start her Lak Bojun cart with Cargills. The
Cargills Team provided her with important guidance and encouragement to pursue her business to its utmost
potential. They also conducted regular assessments to ensure she was performing well. Through her hard

work and dedication, she has managed to gain her own independence and has even earned the respect of
her family and community. Her success story is an inspiration for many women who endeavor to embolden
themselves in society.
TAKING STOCK
HR GOVERNANCE
144
Cargills
(Ceylon)
AND POLICIES
PLC
Annual
Report
2022/23
Having a strong Human Resource Governance Recruitment and Retention

Policy in place ensures that the Company Cargills’ Recruitment Policy is designed to ensure that the Company is staffed with the most qualified
can maintain a safe, equitable, and productive personnel while being able to meet the ever-evolving nature of the environment, business, and
workplace for all team members. Cargills has customer demands. The Company places priority on selecting suitable individuals for roles that require
built a strong Human Resource governance direct engagement with customers and those performing daily operations. Furthermore, all recruitment
framework comprising resilient policies for processes are conducted in an equitable manner, free from discrimination on the basis of age, gender,
recruitment, remuneration, development, ethnicity, religion, language, civil status, or sexual orientation.
retention, and succession planning. It is
continuously kept up to date to align with Recruitment efforts are extended to local communities, creating additional job opportunities in multiple
local and international human rights codes, areas. Multiple recruitment tools, such as skills assessments, are used to guarantee fairness throughout
employment standards of the Company, and the recruitment process. Induction and onboarding programmes, mentoring, and development initiatives
benchmarked occupational health and are also in place to familiarise new recruits with the Company’s processes and culture.
safety regulations.
During the year under review, Cargills created 6,611 new jobs within the economy.
TAKING STOCK
Recruitment by Age and Gender Eight Senior Management Personnel (full-time) were hired from
No. the local communities during the period under review.
3,250
Cargills has committed to increasing female representation in
Senior Management by 2025. Recruitment efforts over the review
2,600
period were directed towards achieving this goal, with an emphasis
on selecting female candidates for key positions. Accordingly,
1,950
new female recruitments into positions of supervisory and above,
increased by 40% in the year under review.
1,300
Disclosure 2-8: Workers who are not employees

650 145
Moreover, within the year under review, Cargills created additional Cargills
0 (Ceylon)
18-30 31-50 51 and
employment opportunities for 148 personnel through internships, PLC
above contract staffing, and volunteerism, which have contributed to the Annual
– Male Report
– Female Company’s growth and performance. 2022/23
The number of Sri Lankans leaving the country in pursuit of better

Total New Recruits by Category prospects has caused a dearth of experienced and qualified
No. workers in the retail sector, making it challenging for employers to
keep their staff, especially in the year under review. As Sri Lanka’s
7,000
largest retail chain, Cargills strived to control attrition rates that
were linked to economic and social trends.
5,600
4,200
2022/23
2,800
Highlights
Indirect employment created by Cargills PLC

1,400
Internships
0
88
Management Executive Supervisory Junior
Contract
Disclosure 202-2 Proportion of Senior Management hired from the local community (using data of 60
full-time employees)
TAKING STOCK
To tackle industry discrimination and Grievance Handling Sexual Harassment
stereotypes, Cargills has cultivated a culture of Cargills maintains an open-door policy for Cargills is committed to creating and sustaining
fairness and inclusion, ensuring employees are employees to bring their grievances to the a working environment wherein employees
aware of the opportunities available to them. Management, thus encouraging effective are treated fairly and respectfully, and are not
We continuously strive to improve employee communication across all layers of the subjected to any form of sexual harassment,
experience, bridging the gaps in career growth, administration. A helpdesk operation set up intimidation, or victimisation. Our Sexual
and helping employees with career progression. at the HR Department deals with employee Harassment Policy defines conduct that can be
In addition, family-friendly policies are in place grievances centrally and the contact number classified as sexual harassment if it is unwanted,
to maintain a healthy work-life balance and to the helpdesk is displayed at all offices inappropriate, or offensive, as well as an
keep our attrition rate lower than the industry and outlets of the Company. All grievances atmosphere where the recipient is made to feel
average. These include annual and casual leave including those reported via a 24-hour hotline humiliated, intimidated, or threatened. Bullying
146 entitlements, flexible working hours, parental are duly monitored and logged while they are in all forms, including cyberbullying, is also
Cargills
leave, and dedicated feeding hours for investigated and resolved within stipulated addressed in the Policy, encouraging employees
(Ceylon) new mothers. timelines. Moreover, the Company facilitates to report any such instances to their Line
PLC
Annual Employee Clinics at locations islandwide, with a Manager or Human Resources. Should workers
Report
2022/23 2021/22
2022/23 special focus on employee locations and outlets feel uncomfortable doing so, the Policy allows a
that report higher attrition rates. Exit interviews formal complaint to be filed in such instances. All
Total Number of employees
are also held to gain a better understanding of complaints lodged are thoroughly investigated
that took parental leave 228 258
how Cargills can improve its HR services and under the Company’s Disciplinary Policy and
Total Number of employees
standards towards employees to ensure a safer Procedure, after which necessary corrective
that returned to work 125 151
and happier workplace. action is taken.
Return to work rate 55% 59%
2022/23 2022/23
Highlights Highlights
All grievances received have been resolved during Four sexual harassment cases were reported in the
the year. review year, and all were resolved.
TAKING STOCK
Building Equality, Diversity and Inclusivity TAKING STOCK
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
147
Performance Management Remuneration and Benefits Occupational Health and Safety
Cargills measures the performance of its At Cargills, our Remuneration and Benefits Policy As we navigated the transition on having more
team members against established Key is designed to cultivate a culture of employee workers come back to office, following the
Performance Indicators (KPIs) which consider motivation and productivity. The Company pandemic, the health and safety of our team
work ethic, competencies, and required training provides wages that exceed industry standards, remained a top priority for the Company. With
credentials as well as day-to-day performance and salaries are paid promptly on the last measures taken to ensure the well-being of
and productivity requirements. Performance working day of each month, a practice that was our employees, the Company continued to
and past achievements are given priority sustained even in the face of unprecedented implement the COVID-19 vaccine drive and
when determining recognition and rewards, challenges of the review year. The Company continued to onboard employees based on their
disregarding all other intangibles. A more also awards bonuses and ex-gratia payments vaccination status.
structured performance management system is twice a year, offering an additional layer of
148 planned to be implemented with the envisioned financial security to its employees. To ensure Our manufacturing facilities are managed
Cargills launch of the new HR Information System (HRIS) their comfort and well-being, Cargills provides according to ISO requirements for health and
(Ceylon)
PLC in the ensuing financial year to streamline auxiliary benefits including medical insurance safety, and regular health and safety training
Annual the performance of the Company and align and claims, staff transport, duty meals, and and other forms of communications and training
Report
2022/23 employee productivity and performance to the a death benefit fund. All of these measures programmes are implemented on a continuous
strategic objectives of the Company. combined are intended to ensure staff basis to increase awareness as we strive for
satisfaction and engagement, enabling us to zero-incident rates in workplace accidents.
attract and retain the best talent in the market.
2022/23 2022/23
Highlights Highlights
Death claims
309 Major
4
Medical claims
5,587 Minor
62
Wedding allowances
75
Newborn baby vouchers
72
TAKING STOCK
Whistleblower Protection Policy Anti-corruption and Anti-bribery Policies
For a large organisation such as Cargills, a Cargills maintains an unequivocal commitment to We continue to strengthen our transparency and
whistleblower protection policy is invaluable ethical business practices, and exercises a zero- disclosures for anti-corruption and anti-bribery
in ensuring that employees feel safe to report tolerance policy towards corruption and bribery practices in corporate reporting, and held our
suspicious or unethical activities without fear in all its dealings and transactions, striving to position as one of the Top 25 public limited
of reprisal. nurture a culture of transparency, honesty and companies of Sri Lanka in the Transparency in
accountability. Cargills is a member of the United Corporate Reporting (TRAC) Assessment
It is our strong belief that such a policy would Nations Global Compact (UNGC) and has vowed for 2022.
encourage a culture of openness and disclosure to act in accordance with the Sustainability
of potential risks and issues in the workplace. Development Goals and Principles, including The anti-corruption and anti-bribery policy
Additionally, the Whistleblower Policy is also a Principle Ten on anti-corruption, declaring explicitly applies to all employees and Directors,
signal that as a responsible corporate citizen of commitment to work against corruption in all Should employees breach any of our anti-
149
the country, Cargills takes misconduct seriously. forms. corruption and anti-bribery principles, disciplinary Cargills
(Ceylon)
By providing clear expectations for workers action will be taken, from a fair warning, to PLC
and how any wrongdoing should be reported, Cargills is in compliance with all laws relating to dismissal, based on the degree of misconduct. Annual
Report
a whistleblower policy can help create a safe, anti-corruption. We diligently keep abreast with 2022/23
ethical environment that benefits everybody. current regulations and adhere to the Bribery Anti-corruption and anti-bribery programmes
(Amendment) Act No. 20 of 1994 in our dealings are reviewed regularly for its suitability, adequacy
with third parties. The Company’s position on and effectiveness.
2022/23 anti-corruption and anti-bribery has been amply
reflected in its audited financial reporting and
Highlights
corporate reporting practices.
Cargills rolled out its Whistleblower Protection Policy in
the review year. We have taken proactive measures to educate
all employees and Directors on ethical
The first phase of the Whistle Blowing Policy has
been implemented. Complaints received from the
practices. Our Group HR Policy stipulates a
whistle blower are critically scrutinised and two-way focused emphasis on preventing, reporting, and
communication is facilitated whenever there is a need managing cases of anti-corruption and bribery.
of additional information or clarification.
Acceptance of corporate gifts, hospitality and/or

entertainment is allowed in line with protocol and
to foster positive business ties, subject to advice
from immediate superiors and the Compliance
Officer. In addition, the Company Collections
Policy serves to regulate internal gifting and
collections between peers, and is permitted only
with Management authorisation.
TAKING STOCK
150
Cargills
(Ceylon)
PLC
PLAYING
Annual
Report
2022/23
OUR PART FOR

THE PLANET
The symbiotic relationship between communities and ecosystems
is fundamental in our operations, and we have recognised that
our financial performance and prosperity rely heavily on social
and ecological stability. Over the years, we have taken great
strides in optimising our natural resources by forming effective
guidelines to observe, regulate and substitute natural materials
throughout our businesses to inspire stakeholders and customers
to follow environmentally conscious steps to help reduce our
collective carbon imprint. We have instituted pioneering measures
across our operations, from recycling waste to replacing non-
renewable energy sources with eco-friendlier alternatives among
other initiatives, to instigate a positive shift and contribute to the
sustainability of the environment and the communities around us.
TAKING STOCK
Value Delivered in
2022/23
Total investments in renewable
energy
Rs. 241,384,265
Total quantity of waste oil collected
for conversion to biodiesel:
136,795 Litres
151
Total quantity of carbon emissions
saved from waste oil conversion to Cargills
biodiesel: (Ceylon)
PLC
398,969 kgs Annual

Report
2022/23
Total quantity of water recycled:
101,719,000 Litres
Total quantity of waste -plastic
recycled:
370,490 kgs
Total number of trees planted under
“Breath of Life” initiative:
3,414
Total renewable energy consumption
4,425,160 kWh
Playing Our Part for the Planet

Contribution
to SDGs
TAKING STOCK
Reducing Emissions at Farm Level Reducing Emissions at 2022/23
The prevalence and subsequent rise of Organisation Level
Highlights
Chronic Kidney Disease (CKD) in the dry zone Consistent with our intention to engage with
among farming communities is directly related the Science Based Targets initiative (SBTi) as Cargills is committed to upholding environmental
to misapplied and excessive agrochemicals a member of the UN Global Compact (UNGC), standards in its operations, which consist of
Scope 1, Scope 2 and Scope 3 greenhouse manufacturing facilities, retail outlets, and other
and fertilisers, causing high residue levels in
business units. This commitment is demonstrated
agricultural products and water sources. As a gas (GHG) emissions were monitored and through the Company’s adherence to environment
pre-emptive measure to combat the challenges measured during the fiscal period under review. licenses, compliance standards, and certifications for
By assessing our carbon footprint, we believe we emissions and pollution control.
of overuse of agrochemicals in production,
Cargills introduced a soil test-based fertiliser can better conform to climate regulation and the
application programme entitled ‘‘Save Our Soil” evolving demands of the business environment,
152 while also becoming more environmentally
in 2014.
Cargills sustainable and cost-efficient through more
(Ceylon)
PLC Contrary to the prevalent notion of utilising energy-efficient practices and investments that
Annual blanket doses of fertiliser for crops, the will reduce our total environmental impact.
Report
2022/23 programme provides guidance for thorough
examination of substantial discrepancies in soil Upon implementation, our upstream emission
conditions. Cargills conducts soil sample testing calculation extended to our processing plants,
in smaller blocks of land, and recommends and downstream emissions were included to the
fertiliser prescriptions tailored to individual point where products reached the consumer.
soil fertility, leading to improved soil health, The main sources of emissions identified were
decreased greenhouse gas emissions, and through energy consumed from the national
decreased occurrence of agricultural residue in grid and generators, water consumption and
produce as well as reduced water contamination. discharge, and refrigerants used in operations.
The initial carbon footprint verification audit was
Consequently, with the launch of “Good Harvest”, conducted in 2020 by the Sri Lanka Climate
Cargills’ GAP-certified produce range, and Fund. This set the course for all manufacturing
“BeeSafe”, which ensures agrochemical-free facilities and the retail chain to measure and
farming, our farmers also gained access to a monitor GHG emissions annually, with reporting
versatile customer segment with purchasing commencing from 2022/23 onwards.
trends more biased towards produce from
green and sustainable farmlands. Going one

step further, Cargills provided its farmers with
climate-smart precision agriculture (CSA) under
its Agriculture Modernisation Project, ensuring
high-grade produce is yielded with the least
environmental impact.
TAKING STOCK
PROCESSING
FACILITIES
153
Cargills
(Ceylon)
PLC
Annual
Report
Cargills Quality Dairies Kotmale Dairy Products Kotmale Dairy Products 2022/23
Banduragoda Bogahawatte Kelanimulla
Cargills Quality Foods Cargills Agri Foods Cargills Agri Foods (Spice Plant)
Ja Ela Katana Katana

TAKING STOCK
KIST Kilinochchi Knuckles Cargills Quality Confectionaries
plant water bottling facility Matale
Energy Management
Cargills has been actively monitoring and
managing energy consumption across the
Group. This is achieved by tracking, measuring,
consolidating, and reporting energy use for each
business unit through a combination of logs, utility
bills, and ledger entries. The main power source
remains the national grid, with Cargills retail chain
being the primary consumer of energy.
154 2022/2023
Cargills Energy Consumption
(Ceylon)
PLC
Annual Electricity from National Grid (kWh)
Report
2022/23
146,013,479
Diesel litres
3,247,917
Gas (kg)
675,822
Furnace oil litres
2,976,628
2022/23
Highlights
The energy consumption across the

business operation is measured in order
to better understand our consumption
patterns and take corrective action to
minimise the impact on the environment
and our operational costs. The
following diagrams indicate the energy
consumption patterns and key energy
TAKING STOCK
sources used during the year under

review.
At Cargills Quality Dairies, investment in clean energy resources, improving Renewable Energy
construction on a biomass demand-side management programmes to To meet our commitment to environmental sustainability, Cargills
boiler began during the increase energy efficiency, and supporting the continued to make prudent and conscious efforts to switch
reporting period with the deployment of advanced energy technologies. to more sustainable and renewable energy solutions. Solar
intent of contributing towards Thus, the MoU between Cargills and Chemonics installations which commenced in 2018 were furthered during the
our continued efforts to will enable CFC to make better progress year under review.
reduce steam wastage. The in managing energy consumption through
installation of the boiler is on coordinated efforts that are aligned with the Additionally, other Cargills sites with renewable energy systems
schedule to be completed above key strategies and measures for energy contributed electricity to the national grid, as summarised below:
for commissioning during the management.
Facility Renewable Energy
forthcoming financial year. Production During
With three boilers currently in At Cargills Agri Foods (CAF), the engineering the Year 155
use, the new biomass boiler team implemented various energy reduction Cargills
is set to enhance capacity by methods and practices in its Katana factory, in Cargills Quality Dairy 1,353,190 kWh (Ceylon)
PLC
ensuring two boilers can be a bid to achieve energy and cost efficiencies Cargills Agri Foods 377,656 kWh
Annual
Report
employed concurrently at all during the year in review. Cargills Quality Foods 585,605 kWh 2022/23
times. Cargills Retail Outlets 2,108,709 kWh
The team maximised energy savings by:
Cargills Foods Company z Turning off seven freezers - each with a
(CFC) is the highest energy- power of 18 kW (+4c to -18c) - for four hours
consuming business unit. each (out of a 12-hour day production),
And in a bid to enhance equalling to 15,120 kWh in energy savings per 2022/23
energy management and month. Highlights
efficiency, CFC entered
z Three air conditioning units (each with 4.8 kW)
into a Memorandum of The reporting period witnessed an extension of CFC’s solar installations,
at the facility were kept switched on, only for a
Understanding (MoU) with with 15 additional Cargills Food City outlets being equipped with rooftop
scheduled 350 minutes (5.83 hours) each day, solar systems, bringing the total number of Cargills Food City outlets
Chemonics International
equalling to 2,664.14 kWh in energy savings equipped with solar to 18. A large-scale solar system installation with a
Inc., the prime contractor for 1.15 MW of capacity was set up at the new Katana Distribution Facility, with
per month.
the USAID Sri Lanka Energy an overall investment of Rs. 241.4 Mn.
Programme. - The USAID
z A chiller - set at 12.5c with a current draw of
Sri Lanka Energy Programme 150A and average energy consumption of
aims to support establishing 85 kWh per hour, was only used when a

cost-reflectivity in the carbonate line was in operation.
country’s electricity tariffs
and works towards increasing
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Water Management Liquid Waste Management Waste Oil
Cargills predominantly sources water for their production and Wastewater Cargills continued its partnership with Novateq
operational processes from the National Water Supply and in order to responsibly collect and dispose of all
Cargills’ manufacturing sites have sustained
Drainage Board (NWSDB), while the balance requirement is fulfilled waste cooking oils from KFC outlets and Cargills
their Environmental Protection Licenses (EPLs)
by approved suppliers and groundwater sources. Our operation Quality Foods facilities. This is in compliance with
by stringently adhering to the established
strives to optimise the usage of water, and reporting is undertaken European Union Waste Oil Collection Standards,
regulations concerning waste disposal. Effluent
to help formulate strategies for better management of the process. which requires the oil undergo filtration and
water from manufacturing sites is recycled
treatment prior to being exported, to be
through a Reverse Osmosis (RO) plant as
subsequently converted into biodiesel.
cooling water. Efficient wastewater management
2022/23 has resulted in a reduction in the amount
156 Highlights of effluents released from some processing
facilities, with the quality remaining in line with 2022/23
Cargills
(Ceylon) The technology of the water treatment plant installed at Banduragoda was the standards set by the Central Environmental Highlights
PLC upgraded in March 2022 and was fully operational during the year under
Annual review. Effluent treatment plants in Bogahawatta and Kelanimulla dairy
Authority (CEA) for agricultural processes.
Report
facilities, as well as the Katana KIST beverage facility were enhanced to
127.22 MT
2022/23
function effectively in line with ISO 14000 requirements. Waste oil collected
The water consumption and recycling volumes for the year are as follows: 2022/23
Highlights CO2 saved
398.97 MT
Ground water
102,718,200 Cargills Quality Cargills Quality
Dairies Confectionaries To put this into perspective, this CO2 amount
corresponds to offsetting the average annual
Acquired from the NWSDB
638,027,947 The total volume of 163,000 8,500 emissions of 87 passenger cars or negating the carbon
footprint of 2,048 short-haul flights or the electricity
water treated through
RO per day (Litres) consumption of 797 households, which is equivalent
Acquired from a registered
supplier 249,156,780 YoY decrease in 3.1 42
to preserving around 13 hectares (32 acres) of mature
forest. These comparisons demonstrate the potential
effluent discharge (%) of mitigating climate change and reducing greenhouse
Total water purchases for gas emissions through proactive measures.
the year 989,902,927
Recycled water volume
101,719,000
TAKING STOCK
157
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
Solid Waste Management

The solid waste management process across our manufacturing
plants is guided by the Environmental Protection Laws (EPLs)
implemented by the CEA. These regulations ensure that all
generated solid waste is treated and disposed of according to
the specific requirements for each type of waste. Additionally, we
are continually improving the efficiency of the agricultural supply
chain to reduce post-harvest waste and for suitable remnants to
be sent back for composting and fertilisation. We also continued

to expand our plastic recycling efforts during the year at our retail
outlets to play our part to contribute to a cleaner, greener, and
environmentally safer Sri Lanka.
More information on the disposal, reuse or recycling processes

in place across the Cargills product development cycle and
extended supply chain can be found in the Prioritising Health and
TAKING STOCK
Safety in New Product Development section under Healthy, Safe
and Affordable Nutrition on page 110.
Plastic recycling campaign at the

Akuregoda outlet
2022/23
Highlights
Cargills Quality Dairies initiated a programme to collect
post-consumer plastic waste in collaboration with
the Kotmale Dairy Farmers’ Society. Furthermore, an
incinerator was installed at the KIST plant in Katana to
minimise solid waste pollution.
Cargills Retail launched a week-long

“#RecyclingHeroes” campaign to celebrate World
Recycling Day 2023, where customers were
encouraged to drop off any type of waste plastic
158 into the drop-off bins located at Retail outlets. Selfie
campaigns and educational partnerships with Unilever,
Cargills
(Ceylon)
Hemas, Nature’s Beauty Creations, KIST, and Kotmale
PLC were also implemented to create awareness and
Annual engagement around the importance of recycling.
Report Additionally, Cargills Retail in collaboration with Unilever
2022/23
conducted a plastic recycling awareness campaign at
the 500th outlet opening in Akuregoda.
Furthermore, the preschools participating in

the Cargills Foundation’s ECE Programme were
encouraged to teach the importance of recycling to
children on World Recycling Day. Cargills Food City
also contributed to promoting the use of reusable
bags on its social media platforms and through large
posters displayed at outlets thus discouraging the use
of single use plastic bags when shopping at Food City,
and organised a Children’s Day 2022 campaign
in collaboration with Unilever to educate children
on recycling.
TAKING STOCK
Recycling awareness for pre-schoolers

at Food City outlets
Paving with Plastic Plastic Collection Bins
In order to re-purpose certain non-recyclable plastic waste released from Cargills Cargills partnered with selected FMCG brands to provide plastic
manufacturing sites, we partnered with AGC Innovate (Pvt) Ltd. to pave our collection bins, thus encouraging customers to recycle post-
carparks with Plastic Modified Asphalt Concrete (PMAC), as a way of utilising this consumer plastic waste. The initiative grew in the year under
type of waste. PMAC is an industrial raw material that is added to conventional review, and by 31 March 2023, the network had a total of 115
asphalt, increasing its strength and durability at a polymer level. The plastic-coated Cargills Retail outlets and six KFC outlets with plastic drop-off bins
aggregate is then covered with a protective layer of bitumen to reduce its exposure sponsored by Unilever (72) and Coca-Cola (40). Four additional
to the environment. bins, sponsored by Coca-Cola, are expected to be installed in
the upcoming financial year, bringing the total to 44. Furthermore,
Our network of PMAC-paved car parks continued to grow in the year under review there are seven bins sponsored by Nature’s Beauty Creations, as
with two new additions at Green Path Food City and the new, fully-automated well as an additional two sponsored by other organisations. As at
the reporting date, there are 74 bins located within the Western
159
distribution centre at Katana. The total impact of the PMAC initiative is summarised
below. Province with another 47 located in other parts of the country. Cargills
(Ceylon)
PLC
Location Average Square Average Plastic Type of Plastic Total collection of post-consumer plastic waste amounted to Annual
Footage (sq. ft.) Quantities Used (kgs) BOPP (Kg)/LDPE (kgs) Report
approximately 10,500 kgs under this initiative. 2022/23
Walgama Food City 22,550 670 Polyethylene (PE)

Car Park Cargills Quality Dairies located in Banduragoda is Sri Lanka’s
Mathugama Food City Car 23,130 690 Polyethylene (PE) +

Park Polypropylene (PP)
mix (50:50)
Ratmalana Food City 4,955 185 BOPP
Car Park
Pilimathalawa Food BOPP
City Car Park 5,410 160
Green Path Food City Car BOPP + LDPE mix

Park 6,380 190 (50:50)
Cargills Distribution Center - 124,415 4,550 BOPP + LDPE mix

Miriswatta, Katana (3,200 kgs: 1,350 kgs)

TAKING STOCK
Case Study:
Banduragoda
Dairy Factory
160 largest integrated dairy processing facility and serves
Cargills
as a model for the Company’s transition into a net zero
(Ceylon) manufacturing facility. It has achieved the following feats:
PLC
Annual
Report
2022/23
Obtained voluntary carbon Maintains an ecosystem with Harvests more than 3,000 Introduced environmentally-
footprint verification conducted a population of 2,000+ trees, cubic metres of rainwater a year, friendly packaging for Cargills
by the Sri Lanka Climate Fund predominantly fruit trees. which is utilised for cooling. Magic Heavenly range of
under the purview of the ice creams, reducing plastic
Ministry of Environment, along consumption.
with its subsidiary Kotmale
Dairy Products. Uses ammonia gas as its Ensures all wastewater
refrigerant for maximum discharge is compliant with
refrigeration efficiency, while standards approved by the Accredited with ISO 9001:2015
also having zero Ozone Central Environmental Authority Quality Management System,
Installed a 1.4 MW solar Depletion Potential and Global (CEA). ISO 22000:2018 Food Safety
installation for clean energy Warming Potential. Management System and
generation, which offsets ISO 14001:2018 Environment
around 35,000 kgs of carbon Management System.

emissions annually.
Operates one of the largest
industrial Reverse Osmosis (RO)
plants in Sri Lanka, producing
over 163 cubic metres of
treated water daily.
TAKING STOCK
Bio Diversity Conservation
Cargills places significant importance in safeguarding biodiversity
and mitigating the ecological effects of operations. In this regard,
the Group actively encourages the promotion and conservation
of biodiversity through the entire supply chain. Ecosystems are
essential in moderating the climate, augmenting natural capital,
and ameliorating emissions. In line with this thinking Cargills
launched the “Breath of Life” initiative in 2021 with the goal of
planting 10,000 trees and saplings at Group facilities and other
locations throughout Sri Lanka.
161
2022/23 Cargills
Highlights (Ceylon)
PLC
Annual
Report
The “Breath of Life” initiative continued to take root in diverse Cargills 2022/23
Group locations island-wide, growing into a total tree population of 9,528
across 127 locations by the end of the reporting period.
No. of Plants Variety
Anoda (Soursop) 725
Avocado 100
Christina Tree 127
Cinnamon 500
Coffee 3,000
Durian 10
Foxtail Palm 24
Jackfruit 100
Karanda (Indian Beech) 73
Kumbuk (Arjun Tree) 20
Lime 300
Local mandarin 25
254

Mango
Mee (Indian Butter Tree) 716
Mudilla (Sea Poison Tree) 2
Naarang (Indian Wild Orange) 150
Nelli (Indian Gooseberry) 15
Peni Dodam (Sweet Orange) 250
Pineapple 3,000
Star Fruit 25
100
TAKING STOCK
Teak
Thimbiri (Gaub Tree) 12
STEWARDSHIP
BOARD OF
DIRECTORS
162
Louis Page
Cargills
(Ceylon)
PLC
Annual
Chairman, Louis R Page is a Fellow member of the Institute of Chartered Accountants of Sri Lanka and a Fellow
Report Non-Executive Director member of the Chartered Institute of Management Accountants (UK). He is the Chairman of the CT Holdings
2022/23
Group of Companies. He has also held a number of Board and Senior Management positions at the highest
level in overseas public companies and public institutions.
Ranjit Page
Deputy Chairman/ Ranjit Page was an instrumental part of the team that transformed Cargills from a company serving a few
Group CEO, Executive Director to a company serving the needs of communities across the country. Ranjit led the team in establishing the
Cargills business model, expanding into food retailing, food manufacturing, restaurants, and banking. Today,
he is the Deputy Chairman/Managing Director of CT Holdings PLC and Deputy Chairman/Chief Executive
Officer of Cargills (Ceylon) PLC.
Imtiaz Abdul Wahid
Group Managing Director/ M Imtiaz Abdul Wahid is an Associate member of the Institute of Chartered Accountants of Sri Lanka and
Deputy CEO, Executive Director a Fellow member of the Chartered Institute of Management Accountants (UK). He has been involved in
the operations of the Company in an executive capacity at different intervals at progressively higher levels
(appointed Director in 1997 and Deputy Managing Director in 2001) spanning a period of over 30 years,
leaving the services of the Company for employment abroad on two occasions during which he also gained
valuable exposure holding a number of senior management positions in overseas companies. He was
appointed Managing Director/Deputy CEO of Cargills (Ceylon) PLC in May 2010 and appointed a Director of
the holding company C T Holdings PLC in December 2016.
Priya Edirisinghe
Independent Non-Executive Director A T Priya Edirisinghe is a Fellow member of the Institute of Chartered Accountants of Sri Lanka, Fellow
member of the Chartered Institute of Management Accountants (UK), and holds a Diploma in Commercial
Arbitration. He was the Senior Partner of Bakertilly Edirisinghe & Co., Chartered Accountants and currently
serves as Consultant/Advisor. He is the Managing Director of PE Management Consultants (Pvt) Ltd.
He counts over 50 years’ experience in both public practice and in the private sector. He serves on the
Boards of a number of other listed and non-listed companies where in some companies he also serves as
Chairman/Member of the Audit Committee, Related Party Transactions Review Committee, and Member
of the Remuneration Committee. He was the Chairman of the Company’s Audit Committee, Related Party
Transactions Review Committee up to 31 December 2020. He continues as a member of the Company’s
Audit Committee, Related Party Transactions Review Committee and Remuneration Committee. 163
Cargills
(Ceylon)
PLC
Annual
Sanjeev Gardiner Report
2022/23
Independent Non-Executive Director Sanjeev Gardiner has been a Director of Cargills (Ceylon) PLC since 1994, and is the Chairman and Chief
Executive Officer of the Gardiner Group of Companies which includes the Galle Face Hotel Co. Limited,
Galle Face Hotel 1994 (Pvt) Ltd., Ceylon Hotels Holdings (Pvt) Ltd. (holding Co. of Ceylon Hotels Corporation
PLC), Kandy Hotels Company (1938) PLC (which owns the Queen’s and Suisse Hotels in Kandy) and, United
Hotels Co. (Pvt) Limited which owns The Surf (Bentota), The Safari (Tissa) and The Lake (Polonnaruwa). He
is also the Chairman of Ambeon Capital PLC, and Ambeon Holdings PLC and Millennium IT ESP (Pvt) Ltd.,
and sits on the Board of several Private Companies. He counts over 30 years of management experience in
a diverse array of businesses. He holds a Bachelor’s Degree in Business from the Royal Melbourne Institute
of Technology, Australia and a Bachelor’s Degree in Business (Banking and Finance) from Monash University,
Australia. He has been a Council member of HelpAge Sri Lanka for several years.
Yudy Kanagasabai
Independent Non-Executive Director Yudhishtran Kanagasabai was appointed a Director of the Company and a member of the Audit Committee
and Related Party Transactions Review Committee on 25 February 2019. He also serves on the Board of a
subsidiary, Cargills Foods Company (Private) Limited, and its Audit Committee and Corporate Governance
Board of Directors
& Nominations Committee (since July 2016). He remains a Non-Executive Director of Cargills Bank Limited
(since end October 2019), and continues to serve as a member of the Bank’s Board Human Resources
and Remuneration Committee and Strategic Planning Committee. He is also the Chairperson of the Board
Integrated Risk Management Committee of Cargills Bank Limited.
STEWARDSHIP
He is a Fellow of the Institute of Chartered Accountants of Sri Lanka and has served PricewaterhouseCoopers
since its inception in 1981. He held progressively more responsible positions before being appointed Senior
Partner/Chief Executive Officer in 2006, from which position he retired in 2017. Yudy elevated the profile
of both the Sri Lankan and the Maldives practices of the Firm to consistently provide quality solutions to
clients within the appropriate standards and applicable best practices. He has extensive knowledge of current
economic, social and regulatory issues.
Yudy is an Independent Non-Executive Director of Ceylon Tobacco Company PLC and Chairperson of the
Audit Committee and Related Party Transactions Committee, as well as a member of Remuneration and
Compensation Committee, Corporate Social Investment Committee, and Nominations Committee since
February 2018. He is also an Independent Non-Executive Director of Eswaran Brothers Exports (Private)
Limited and the Chairman of its Audit Committee. He serves as an Independent Non-Executive Director
164 and Chairperson of the Audit Committee of Ambeon Capital PLC and MainGate (Private) Limited. He is a
Cargills Non-Executive Director and Chairman of the Audit Committee of Millennium IT ESP (Private) Limited and
(Ceylon) Colombo City Holdings PLC. He is also the Chairperson of Dankotuwa Porcelain PLC and Taprobane Capital
PLC
Annual
Plus Limited.
Report
2022/23
He was a Non-Executive Independent Director and Chairperson of the Board Audit Committee of Union
Bank PLC (a subsidiary of Texas Pacific Group), a Non-Executive Independent Director and member of
the Board Audit Committee of Hunters & Company PLC and a Non-Executive Director of Lanka Canneries
Limited, Independent Non-Executive Director and has also served as a Commissioner of The Insurance
Regulatory Commission of Sri Lanka.
Joseph Page
Non-Executive Director Joseph C Page is the Deputy Chairman/Managing Director of C T Land Development PLC. He is also a
Director of C T Holdings PLC, Ceylon Theatres (Pvt) Ltd. and C T Properties Limited. Prior to joining
C T Land Development PLC, he was Executive Director of Millers Limited. He has over 35 years of
management experience in the private sector.
Errol Perera
Board of Directors
Independent Non-Executive Director Errol Perera has held Senior Management positions Overseas and in Sri Lanka. He was instrumental in
attracting direct foreign investment in several projects with Board of Investment approval including Venture
Capital and Unit Trust start-ups. He was the proud winner of the GTE (now Verizon USA) Presidents
International Trophy in 1990. In 1995 under his stewardship, the Directory Publishing Team won the first-ever
Sri Lanka National Quality Award. He is at present an Independent Director of several other companies in
STEWARDSHIP
Sri Lanka.
Asoka Pieris
Non-Executive Director H Asoka Pieris was appointed a Director of the Company on 25 February 2019.
He was also appointed to the Board of subsidiary company, Cargills Foods Company (Private) Limited as
Director Consultant Advisor on 1 March 2019 and appointed Managing Director on 1 February 2020.
He is an Associate member of the Institute of Chartered Accountants of Sri Lanka and a Fellow member of
the Chartered Institute of Management Accountants, UK and a Certified Global Management Accountant.
He has wide and varied experience in the fields of Marketing, Finance, and Manufacturing both in Sri Lanka
and overseas.
165
Cargills
He was the Group Chief Executive Officer of Singer Group in Sri Lanka, from July 2010 to October 2018. He (Ceylon)
PLC
also has overseas working experience in Hong Kong as the Vice President Finance of Singer Asia Limited for Annual
Report
two years and in Marketing in Singer Jamaica. He has been a Director of Public Quoted Companies in 2022/23
Sri Lanka, Bangladesh and Indonesia and a Director of Non Quoted Companies in India and Hong Kong.
Indira Malwatte
Independent Non-Executive Director Indira Malwatte was appointed a Director of the Company on 1 February 2020.
She holds a Combined Degree in Economics and Geography from the University of Peradeniya Sri Lanka
and was the first woman Chairperson of the EDB.
She has over 40 years of experience in serving the Government both internationally and locally as a Top
Export Promotion Professional. Her in-depth knowledge of various sectors ranging from Industrial,
Agricultural, Services, Supply Chain Management, and International Marketing has led to her serving as a
Director in several Companies and Government Institutes in a variety of industries. She was the focal point
on a number of World Bank, ITC, GIZ, CBI and JETRO export development projects.
In July 2016 Indira was internationally recognised for her long years of service in Business and Commerce
with The Wifts Foundation Lifetime Achievement Award 2016-Business in London, UK. She was the first
Board of Directors
Sri Lankan to be bestowed with this honor. She was also recognised by Zonta Sri Lanka with the “Woman of
Achievement” Award on Management in September 2017 and Women in Management Top 50 Professional
and Career Woman Gold 2018 State & Government Sector in 2018. She was featured on “The 2018 A – List
of Sri Lanka Business People” by the LMD Magazine.
STEWARDSHIP
She serves as an Independent Non-Executive Director of Samson International PLC and as an Independent
Non-Executive Director of Lanka Shipping & Logistics (Pvt) Ltd. She is also engaged in Consultancies on
International Trade and Developing the SME Sector and Women Entrepreneurship. She also serves as a Non-
Executive Independent Director of the Sri Lanka Export Development Board.
Asite Talwatte
Independent Non-Executive Director Asite Talwatte was appointed a Director of the Company on 28 August 2020, and was appointed the
Chairman of the Company’s Audit Committee, Related Party Transactions Review Committee, and
Remuneration Committee on 1 January 2021.
He is a Fellow member of the Institute of Chartered Accountants of Sri Lanka (ICASL) and the Chartered
Institute of Management Accountants of the UK. He also holds a Post-Graduate Diploma in Business and
Financial Administration awarded by the ICASL and the University of Wageningen, Holland and has an MBA
from the University of Sri Jayawardenapura, Sri Lanka. Mr Talwatte has also participated in a Kellogg Executive
Programme at the Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois.
166
Cargills He worked at Ernst & Young in Assurance, Business Risk and Advisory Services for 37 years, including
(Ceylon) 10 years as Country Managing Partner. He has worked with Ernst & Young in Cleveland, Ohio and also
PLC
Annual served on Ernst & Young’s Far-East Area Executive Committee, the Area Advisory Council and the ASEAN
Report
2022/23
Leadership Committee.
He was President of the CA Sri Lanka for a two-year period in 2002/2003 and the CIMA in 1995/96. He
also served as Chairman of the Statutory Accounting Standards Committee and the Auditing Standards
Committee, the Urgent Issues Task Force and the Examinations Committee of the ICASL.
He has been closely associated with the development of Corporate Governance in Sri Lanka being actively
involved with the Code of Audit Committees in 2002 and the Code of Corporate Governance in 2003. He
co-chaired the Committees to structure the revised Codes of Corporate Governance of 2008, 2012 and 2017
and the Listing Rules of 2008. He chaired the International Integrated Reporting Council of Sri Lanka (IIRSL)
on behalf of CA Sri Lanka for several years . He currently chairs the Corporate Governance Committee.
He serves as an Independent Non-Executive Director on Boards of several listed companies.
Dilantha Jayawardhana
Executive Director Dilantha Jayawardhana was appointed a Director of the Company on 1 July 2021.
Board of Directors
He holds a Master’s in Business Administration (University of Lincoln, UK) and is a Fellow member of the
Institute of Chartered Accountants of Sri Lanka. He is also an Associate member of the Institute of Certified
Management Accountants of Sri Lanka. He functioned as the Group Chief Financial Officer of Cargills
(Ceylon) PLC. In his current role, he continues to manage finance, human resource development, IT and
treasury functions for the Group.
STEWARDSHIP
He has 24 years of post-qualifying experience in accounting, finance, and management.

CORPORATE 1. Corporate Governance at Cargills
GOVERNANCE Corporate governance at Cargills encompasses a set of systems,
processes and practices in place to ensure the Company’s affairs
are being managed in a manner which ensures accountability,
transparency and, fairness in all transactions. We believe that
sound corporate governance practices are essential to create
sustainable value and to safeguard the interest of all stakeholders.
2. The Corporate
167
Governance Framework
Cargills
Our corporate governance (Ceylon)
framework is illustrated in the Stakeholder PLC
Engagement Annual
following diagram: Report
2022/23
Disclosure and Governance

Transparency Structure
Legal and
Regulatory Leadership
Compliance
Corporate
Governance
Controls, Business
Assurance and Practices and
Risk Management Ethics
Strategy and
Performance
Management
STEWARDSHIP
3. Internal Governance Structure 3.1 The Board of Directors
The Group has put in place an internal governance structure with defined roles and responsibilities 3.1.1 Board Composition
of every constituent of the system. The Board of Directors appointed by the shareholders is primarily
The Company currently has twelve Directors
responsible for good governance. The Board delegates some of its responsibilities to the Board
on the Board comprising nine Non-Executive
committees to discharge its responsibilities in an effective manner.
Directors (of whom six are independent) and
three Executive Directors.
The Board consists of a mix of Independent,

Executive, and Non-Executive Directors to
maintain Board independence.
168
Cargills Board 3.1.2 Board Independence and Conflicts of
(Ceylon) Interest
PLC
Annual Our Board is well represented by the
Report
2022/23 Independent Directors who support the
Executive Directors in governance and strategic
management. Independence of the Directors
Board Committees has been determined in accordance with the
criteria of the CSE Listing Rules. Accordingly,
the present composition of Independent
Non-Executive Directors is in line with the
requirements of the CSE Listing Rules. The
six Independent Non-Executive Directors
Nomination
Related Party have submitted signed confirmations of their
Audit Remuneration Transactions Executive
Committee Committee
Committee
Review Board
independence.
(CTH)
Committee
Where the personal or business relationships
or interests of Directors and Executive Officers
Group Management may conflict with the interests of Cargills, they
Committees are required to disclose in writing the nature
and extent of any interest they have in a material
contract or material transaction with the Group.
Corporate Governance
Risk
Core
Management Human IT and
Business Projects Sustainability
and Internal Resources Finance
Teams
Audit
STEWARDSHIP
3.1.3 Appointment of Directors 3.1.5 Other Board Memberships
The Nomination Committee of the parent company (C T Holdings The Group, in assessing the performance of the individual Director, considers
PLC) recommends suitable persons to be Directors either to whether sufficient time and attention has been given by the Director to the affairs of
fill casual vacancies or as additional Directors, subject to the the Group while holding Board membership in other companies. The Group expects
provisions in the Articles of Association of the Company. Any Directors to devote sufficient time for the affairs of the Company though it does not
Director so appointed shall hold office until the next Annual impose a limit on the number of Board representations which a Director may hold in
General Meeting and shall then be eligible for election, but shall other companies.
not be taken into account in determining the number of Directors
who are to retire by rotation at such Meeting. In considering Directors have demonstrated their commitment and effectiveness in discharging
candidates for directorship, the Nomination Committee takes into their duties and responsibilities and avoiding actual or potential conflicts of interest
account all factors it considers appropriate, including, among other caused by serving on other Boards.
things, breadth of experience in business and industry, financial 169
acumen, integrity, leadership as well as the diversity of the Board. 3.1.6 Directors’ Remuneration Policy Cargills
(Ceylon)
The Remuneration Committee studies and recommends the remuneration and PLC
Details of new Directors are disclosed to the shareholders at the Annual
perquisites applicable to the Executive Directors of the Company and makes Report
time of their appointment by public announcement as well as in 2022/23
appropriate recommendations to the Board of Directors of the Company for
the Annual Report (Please refer Board of Directors section of the
approval. Executive Directors’ Remuneration is reviewed periodically against market
Report).
comparators. Remuneration of Non-Executive Directors is determined in reference
to fees paid by comparable companies and is adjusted where necessary. The fees
3.1.4 Board Tenure, Retirement and Re-election of Directors received by Non-Executive Directors are determined by the Board and reviewed
The Executive Directors are appointed and recommended for annually.
re-election subject to their prescribed retirement age whilst
Non-Executive Directors are appointed and recommended for 3.2 Board Committees
re-election subject to the age limit as per statutory provisions at
The Group has the following Board committees;
the time of reappointment. At each Annual General Meeting (AGM)
one third of the Directors retire by rotation on the basis prescribed 1) Audit Committee
in the Articles of Association of the Company and are eligible for 2) Nomination Committee
re-election. The Directors who retire are those who have been 3) Remuneration Committee
longest in office since their appointment or reappointment. In
4) Related Party Transactions Review Committee (RPTRC)
addition, any new Director appointed to the Board during the year
is required to stand for election at the next AGM.
All committees have written charters detailing their responsibilities and the extent to
which they have been delegated powers of the Board of Directors.
3.2.1 Audit Committee Report
The Audit Committee is appointed by the Board of Directors of the Company and
reports directly to the Board. The Audit Committee functions within the overall
governance process established by the Board of Directors of the Company and
STEWARDSHIP
assists the Board in effectively discharging its responsibilities.
Policy Framework Meetings
The policy framework for the functioning of the Audit Committee of the Company The Audit Committee met seven times during the year, one of
and its subsidiaries are set out in the Group policies adopted across the Group. which were with the participation of the Company’s External
Auditors. Details of the participation of the members of the Audit
In addition to the Audit Committee of the holding company, one listed subsidiary Committee at such meetings are set out below:
within the Cargills Group has a separate Audit Committee, where the Chairman Name Meetings Meetings
(Mr A D B Talwatte) and one other member (Mr A T P Edirisinghe) of the Audit Held Attended
Committee of the parent company are Chairman and member respectively of

the other Audit Committee. The Audit Committee of the listed holding Company Mr A D B Talwatte (Chairman) 7 7
functions as the Audit Committee of the non-listed subsidiary companies within Mr A T P Edirisinghe 7 7
the Group. Mr E A D Perera 7 4
170 Mr Y Kanagasabai 7 7
Cargills Composition of the Audit Committee
(Ceylon)
PLC Scope
Annual
z Mr A D B Talwatte FCA, FCMA, MBA - Independent (Chairman)
Report The functions of the Audit Committee, as set out in the Group
2022/23 z Mr A T P Edirisinghe FCA, FCMA - Independent
policies, include the following:
z Mr E A D Perera - Independent
z Mr Y Kanagasabai - Independent
z Oversight of the preparation, presentation, and adequacy of
disclosures in the Financial Statements in accordance with
The Audit Committee comprises four members who are Non-Executive Directors SLFRS/LKAS
that are Independent or deemed Independent. The Chairman of the Audit z Oversight of the Company’s compliance with financial reporting
Committee is a Fellow member of the Institute of Chartered Accountants of requirements, information requirements of the Companies Act,
Sri Lanka and a Fellow member of the Chartered Institute of Management SEC, and other related regulatory bodies
Accountants, UK. The composition of the members of the Audit Committee satisfies
the criteria as specified in the standards on corporate governance for listed z Oversight of the processes to ensure that the Company’s
companies. The Company Secretary acts as the Secretary to the Committee. internal controls and risk management procedures are
adequate to ensure that the various risk exposures are
mitigated
Procedure
In terms of the Group policy, the Audit Committees should meet at least once every z Assessment of the performance and independence of the
quarter, two of which should be attended by the Company Auditors. The procedure External Auditors and making recommendations to the Board
in place is for the Group Managing Director/Deputy CEO, Executive Director, Group pertaining to appointment/reappointment and removal of
Chief Financial Officer, Group Chief Risk Officer, Heads of Finance of the business External Auditors and approval of remuneration and terms of
sectors and the Head of Internal Audit to attend all meetings when scheduled and engagement
for the Deputy Chairman/CEO to attend Audit Committee meetings as and when
z Reviewing and monitoring the External Auditors’ independence
requested to do so by the Audit Committee. Besides this, procedure is in place
and objectivity and the effectiveness of the audit process
to circulate the various documents and for clarification of matters raised by the
members of the Audit Committee. Where necessary, approvals may also be given by
circular resolutions.
STEWARDSHIP
z Develop and implement policy on the engagement of the Internal Audit, Controls, and Risk Management
External Auditors to supply non-audit services, taking into The Audit Committee reviewed the Internal Audit Reports containing details of
account relevant ethical guidance regarding the provision of the audit coverage, compliance to the laws, regulations, established policies and
non-audit services by the External Auditors procedures. The risk management report containing detailed risk assessments and
risk mitigation actions pertaining to different business units were reviewed by the
z Review the Company’s annual audited Financial Statements and
Audit Committee to give assurance that the risk management process is carried out
quarterly Financial Statements to ensure compliance with the
in an effective manner.
Sri Lanka Accounting Standards and other relevant laws and
regulations
Conclusion
z Advise the Board with respect to the Company’s policies and
Based on its work, the Audit Committee is of the opinion that the control
procedures regarding compliance with applicable laws and
procedures and environment within the Group provide reasonable assurance 171
regulations
regarding monitoring of the operations, accuracy of the Financial Statements, and
Cargills
z Report regularly to the Board with respect to the Committee’s safeguarding of assets of the Company. (Ceylon)
PLC
activities and make recommendations as appropriate
Annual
Audit and Auditors’ Independence Report
2022/23
Financial Reporting The Audit Committee assessed the independence and performance of the
The Audit Committee reviewed the quarterly and annual Financial Company’s External Auditors and made recommendations to the Board pertaining
Statements of the Group prior to publication to assure that the to appointment/reappointment. The Audit Committee also reviewed the audit fees
published Financial Statements fairly present the state of affairs and approved the remuneration and terms of engagement of the External Auditors
and made recommendations to the Board. When doing so, the Audit Committee
of the Group. The Audit Committee had discussions with the
reviewed the type and quantum of non-audit services (if any) provided by the
Management and the External Auditors on the annual Financial
External Auditors to the Company to ensure that their independence as Auditors
Statements. In all instances, the Audit Committee obtained a
has not been impaired.
declaration from the Group Chief Financial Officer (GCFO) stating
that the respective Financial Statements are in conformity with the The Audit Committee obtains an “Auditors’ Statement” from Messrs KPMG
applicable accounting standards, company law and other statutes confirming independence as required by Section 163 (3) of the Companies Act
including corporate governance rules and that the presentation No. 07 of 2007 on the audit of the Statement of Financial Position and the related
of such Financial Statements are consistent with those of the Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity,
previous quarter or year as the case may be, and further stating and Statement of Cash Flow of the Company and the Cargills Group.
any departures from financial reporting, statutory requirements and
Group policies (if any). The Audit Committee has recommended to the Board that Messrs KPMG, Chartered
Accountants, be continued as External Auditors of the Company for the financial
Quarterly Compliance Certificates were also obtained from the year ending 31 March 2024.
finance, legal, and secretarial divisions of the Company on a
standardised exception reporting format perfected by the Audit
Committee, stating any instances (where applicable) of, and
reasons for, non-compliance, along with a Risk Management and
Internal Audit Report submitted by the Group Chief Risk Officer
(GCRO). A D B Talwatte
STEWARDSHIP
Chairman - Audit Committee
5 July 2023
3.2.2 Nomination Committee Composition of the Remuneration Committee
The Nomination Committee of the parent company (CTH) acts as the Nomination z Mr A D B Talwatte – Non-Executive (Chairman)
Committee of Cargills (Ceylon) PLC.
z Mrs C I Malwatte – Non-Executive
z Mr A T P Edirisinghe – Non-Executive
Composition of the Nomination Committee
The Nomination Committee of the parent company consists of the following The Committee met once during the year under review.
members;
z Mr L R Page – Non-Executive/Non-Independent (Chairman)
z Mr A T P Edirisinghe – Independent
z Mr V R Page – Executive Director (Deputy Chairman/Group CEO)
172
A D B Talwatte
Cargills
(Ceylon)
Scope Chairman – Remuneration Committee
PLC
Scope of the Nomination Committee would be to review all appointments to the 5 July 2023
Annual
Report Board and recommend to the Board of Directors for appointment.
2022/23
3.2.4 Related Party Transactions Review Committee Report

Meetings The Related Party Transactions Review Committee (RPTRC) is
The Committee meets once each year or as required. appointed by the Board of Directors of the Company and reports
directly to the Board. The Committee functions within the overall
3.2.3 Remuneration Committee Report governance process established by the Board of Directors of
the Company and assists the Board in effectively discharging its
The Remuneration Committee of Cargills (Ceylon) PLC consists of three
responsibilities.
Non-Executive Directors – Messrs A D B Talwatte (Chairman), A T P Edirisinghe and
Mrs C I Malwatte.
Policy Framework
The Chairman, the Deputy Chairman/CEO, and the Group Managing Director may The policy framework for the functioning of the RPTRC of the
also be invited to join in the deliberations as required. The Committee studies and Company and its subsidiaries is set out in the Group policies
recommends the remuneration and perquisites applicable to the Executive Directors adopted across the Group. In addition to the RPTRC of the
of the Company and makes appropriate recommendations to the Board of Directors holding company, the Kotmale Holdings PLC, a listed subsidiary
of the Company for approval. The Committee also carries out periodic reviews to of the Cargills (Ceylon) PLC, has a separate RPTRC, where the
ensure that the remuneration is in line with market conditions. Chairman and one other member of the RPTRC of the parent
company are members. The RPTRC of the listed holding company
functions as the RPTRC of the non-listed subsidiary companies
within the Group.
Composition of the RPTRC

z Mr A D B Talwatte FCA, FCMA, MBA – Independent (Chairman)
z Mr A T P Edirisinghe FCA, FCMA – Independent
STEWARDSHIP
z Mr E A D Perera – Independent
z Mr Y Kanagasabai – Independent
The RPTRC comprises four members who are Non-Executive Procedures are also in place for the RPTRC to obtain, where not already obtained:
Directors that are independent or deemed independent. The
z Quarterly declarations of related party transactions from Directors and
Chairman of the RPTRC is a Fellow member of The Institute
Senior Management of all Group companies on recurrent and non-recurrent
of Chartered Accountants of Sri Lanka and a Fellow member
transactions undertaken by them or by their close family members.
of Chartered Institute of Management Accountants, UK. The
composition of the members of the RPTRC satisfies the criteria z Quarterly declarations of Directors and Senior Management of all Group
as specified in the standards on corporate governance for listed companies who have a significant shareholding/ownership in a company or
companies. The Company Secretary acts as the Secretary to the partnership or proprietorship which is outside the Group companies and/or of
Committee. the subsidiaries and associate companies of Group companies.
z Quarterly declarations of the Group Chief Financial Officer or equivalent position

Scope
in Group companies on recurrent and/or non-recurrent transactions within the 173
The RPTRC assists the Board in reviewing all related party Group companies.
transactions carried out by the Company. Cargills
(Ceylon)
PLC
Procedures are also in place for the assessment of the need to obtain shareholder
Annual
The functions of the RPTRC include the following: approval for specified transactions and to inform the SEC/CSE on the applicable Report
2022/23
z Developing a related party transactions policy consistent non-recurrent transactions.
with that proposed by the RPT Code of the Securities and
Exchange Commission of Sri Lanka (SEC) and recommending Related Party Transactions
for adoption by the Board of Directors of the Company and its Companies within the Group regularly engage in transactions with other companies
listed subsidiaries. within the Group. The Committee receives and reviews details of all related party
transactions from the Group Chief Financial Officer of the Company and disposes of
z Reviewing and recommending improvements to the control
the same in accordance with the mandate set out above.
procedures to ensure that all recurrent and non-recurrent
related party transactions are identified, adequately captured,
In respect of non-recurrent transactions, if any, the Committee is empowered to
and reported in a timely manner in accordance with the
seek independent expert advice on valuation or any other related matters that the
applicable rules.
Committee deems significant.
z Establishing procedures to ensure that related party
transactions that are captured within the system are reviewed Meetings
in a systematic manner and certified by Key Management
RPTRC met four times during the year. The meetings were also attended by
Personnel with appropriate level of authority.
the Group Managing Director of the Company, Executive Director, Group Chief
z Reviewing all related party transactions as reported by Financial Officer, Group Chief Risk Officer, as well as the Heads of Finance of the
Management for compliance with the RPT Code. business sectors.
z Ensuring that appropriate disclosures are made as applicable to

the Colombo Stock Exchange (CSE) where immediate market
disclosures are required, including in the Annual Report.
STEWARDSHIP
Details of the participation of RPTRC members at such meetings are set out below: Directors hereby confirm that the Company is in compliance with
Name Meetings Meetings
Section 9 of the Listing Rules of the CSE with respect to related
Held Attended party transactions carried out by the Company during the year.
Mr A D B Talwatte (Chairman) 4 4
Mr A T P Edirisinghe 4 4
Mr E A D Perera 4 2
Mr Y Kanagasabai 4 4
A D B Talwatte
The Committee adopted policies and procedures for (a) reviewing the related party Chairman – Related Party Transactions Review Committee
transactions at each quarterly meeting, (b) identifying and reporting on recurrent 5 July 2023
174 and non-recurrent transactions to be in line with the applicable CSE Rules.
Cargills 4. Leadership
(Ceylon) The Committee noted that there were no changes to practices followed over the
PLC
years and general terms and conditions applicable to all lease agreements entered 4.1 Board Leadership
Annual
Report
2022/23 into with related parties are similar to those entered into with non-related parties The Board has a clear governance framework with defined
taking into account, if any, due consideration of factors such as the long-term nature responsibilities and accountability.
of the leases and the extent of the area occupied, etc.
Our Board at present comprises Directors with diverse skills
Conclusion and vast experience in the field of business, capable of steering
the business towards achieving the Company goals and good
Based on its work, the RPTRC confirms that there were no non-recurrent
governance. While the Board plays an oversight role over the
transactions with related parties during the year that warranted prior shareholder
Group, the Group CEO and his Executive Management are
approval. It is also noted that in respect of recurrent transactions, the transactions
empowered to manage and lead the business on a day-to-day
were in the ordinary course of business, there were no changes to terms or
basis.
practices over the previous year, and general terms and conditions applicable to
such transactions with related parties are similar to those entered into with non-
related parties taking into account, if any, due consideration of factors such as 4.1.1 Role of Group Chairman and Group CEO
volume, cost and any other special benefits which form part and parcel of such Whilst the Group Chairman and the Group Chief Executive Officer
transactions. The observations of the Committee have been communicated to the are collectively responsible for the leadership of the Group, there
Board of Directors. is a clear and effective division of accountability and responsibility
between the Group Chairman and the Group Chief Executive
The details of the recurrent transactions entered into with related parties are Officer. Each plays a role that is distinctive but complements the
disclosed in Note 35 to the Financial Statements. other to ensure that there is a balance of power and authority and
no individual has unfettered powers of decision and control.

STEWARDSHIP
4.1.2 Board Responsibilities 4.1.3 Board Meetings
The Board oversees the affairs of the Company and provides leadership The Board met seven times in the year under review, and the following table
and guidance to the Senior Management Team. The key functions and shows the attendance record for the same.
responsibilities of the Board are:
Roles and Responsibilities
Attendance at Board Meetings
Name Position Meetings Meetings
Held Attended
Strategy z Providing direction, guidelines, and approval of the Group’s
strategic direction and business plans as developed by
Management Mr L R Page Chairman 7 7
z Directing, monitoring and assessing the Group’s performance Mr V R Page Deputy Chairman/CEO 7 7
against strategic and business plans 7 7
Mr M I Abdul Wahid Managing Director
z Approving and monitoring major capital expenditure,
Mr A T P Edirisinghe Non-Executive Director 7 7 175
acquisitions and divestments
Mr S E C Gardiner Non-Executive Director 7 7 Cargills
z Reviewing and approving the annual operating plans and (Ceylon)
financial budgets Mr Y Kanagasabai Non-Executive Director 7 7 PLC
Risk z Ensuring processes are in place to identify the principal risks Mrs C I Malwatte Non-Executive Director 7 6 Annual
Report
2022/23
Management of the Group’s business Mr J C Page Non-Executive Director 7 5
z Reviewing and ratifying the integrity of the Group’s systems of Mr E A D Perera Non-Executive Director 7 4
risk management, internal controls, and compliance
Mr H A Peiris Non-Executive Director 7 6
Management z Appointing and recommending terms of engagement of the
Mr A D B Talwatte Non-Executive Director 7 7
Senior Management staff ensuring that a process is in place
such that the remuneration and conditions of service of Mr D S Jayawardhana Executive Director 7 7
executives are appropriate
z Ensuring that a process is in place for an executive succession plan 5. Business Practices and Ethics
Performance z Evaluating the performance of the Board Committees and
The essence of corporate governance lies in promoting and maintaining
individual Directors
integrity, transparency, and accountability across the Organisation. Good
z Establishing and reviewing succession plans for Board
membership governance is embedded in the Group’s culture creating an enabling
z Reviewing the performance of the Senior Management and environment for growth in a structured, predictable and sustainable manner.
the compensation framework for Executive Directors and
Senior Management The Board continues to strive to ensure that ethics are the foundation of
z Monitoring corporate performance and evaluating results how the Company operates. Accordingly, the Directors recognise their
compared to the strategic and annual plans responsibility to set the tone from the top, by avoiding instances of conflict
Corporate z Establishing appropriate standards and encouraging ethical of interest and having the interests of the Company at the forefront of all
Governance behaviour and compliance with the Group’s policies decision-making.
z Monitoring the Company’s compliance with corporate
governance standards
The corporate governance system at Cargills demands that our employees
z Overseeing the process and framework for evaluating the enhance their competence and capability levels to meet the expectations
adequacy of internal controls, risk-management, financial
reporting, and compliance
in managing the enterprise and its resources effectively with the highest
standards of ethics.
Reporting and z Approving and monitoring financial and other reporting,
STEWARDSHIP
Disclosure including reporting to shareholders and other stakeholders
z Establishing procedures to ensure adherence to the
Company’s continuous reporting policy
The Group is committed to the interests of our employees, customers, suppliers and 7. Controls, Assurance, and Risk Management
the community whilst focusing on providing value to our shareholders. The Group’s The Group has adequate systems of internal controls in place to
Code of Conduct aims to promote and strengthen the reputation of Cargills by ensure the orderly and efficient conduct of its business.
establishing a standard of performance, behaviour and professionalism for its people
and stakeholders with respect to their professional and personal conduct. The Internal Auditors independently evaluate the adequacy of
internal controls and compliance and concurrently audit the
All employees at Cargills are committed to responsible behaviour refraining from majority of the transactions in value terms. The Group’s internal
any direct, solicited, monetary or non-monetary bribes, entertainment, unlawful gifts, audit and risk management functions report to the Board directly
making or receiving facilitation payments or political contributions while adhering to through the Audit Committee assuring the independence.
the related provisions of the Group HR Policy.
The Group engages the services of Independent External Auditors
176 All executives are bound by a signed Code of Conduct which prohibits them from to conduct an audit and obtain reasonable assurance on whether
Cargills
accepting or offering any form of gift or emolument that may be construed as a the Financial Statements and relevant disclosures are free from
(Ceylon) bribe. Executives are also issued official memorandums to remind them of this material misstatements. The Independent Auditors directly report
PLC
Annual obligation during festive seasons where the occurrence of such dealings are more their findings to the Audit Committee which has the oversight
Report
2022/23 probable. responsibility of the integrity of Financial Statements and the
reporting process.
Cargills (Ceylon) PLC is a signatory of the United Nations Global Compact (UNGC);
and has zero tolerance towards bribery and corruption. The Company actively The Group has an enterprise risk management framework through
monitors any changes to anti-corruption or other related laws and ensures its full which it manages the risks facing the Group. Risk Committees
compliance. This ethical and transparent corporate behaviour of Cargills extends to for all business sectors were established to manage the risks
all the stakeholders in the value chain. All partners and third parties are advised to stemming from the external environment, strategy and business
comply with the guidelines set out. operations. Risk management section and the notes to the
financial statements of the Annual Report carry a detailed
6. Strategic and Performance Management discussion of the Group’s Enterprise Risk Management Process.
The Group has a robust strategic management process which involves all key
internal stakeholders and is led by the Group CEO. The strategic planning process The Information Technology Policy of the Group establishes an
aims at optimal utilisation of resources of the Organisation and maximum welfare of overall framework for the governance and management of the
all relevant stakeholders. The developments in the external and internal environment processes and actions relating to Information Technology within
are continuously and extensively scrutinised in developing effective strategies. the Group. The framework is made up of processes designed to
Cargills focuses on deriving the maximum advantage for the Organisation through ensure effective and efficient use of Information Technology to
developments in the external environment through prudent as well as rapid enable the Company achieving its objectives.
responses.
8. Legal and Regulatory Compliance

Cargills operates with a comprehensive performance management system which The Group is fully compliant with all the mandatory provisions of
aims to uphold efficient and effective results as well as knowledge and skills of the Companies Act No. 07 of 2007, Listing Rules of the CSE and
employees. The budgeting exercise at Cargills is carried out at an integrated cross rules of the Securities and Exchange Commission of Sri Lanka
functional level and reviews are carried out on a frequent basis in order to take (SEC). The Group practices are in line with the Code of Best
STEWARDSHIP
corrective action as appropriate. Practice on Corporate Governance issued by the Institute of

Chartered Accountants of Sri Lanka (CA Sri Lanka).
The Company actively monitors the changes in the regulatory environment Company’s adherence to the Corporate Governance Rules as
and acknowledges its compliance with all other financial, legal and required by Section 7.10 of the Listing Rules of the CSE:
regulatory requirements. CSE Rule Status of
Compliance
Details/
Reference
9. Disclosure and Transparency 7.10.1 Non-Executive Directors (NED)

The Group has policies and procedures that govern the provision of timely, a./ At least two members or one-third of Compliant Nine out of twelve
accurate and complete information to stakeholders, in a manner which b./c. the Board, whichever is higher, should Directors are NEDs
gives all stakeholders equal access to information. The Board of Directors, be NEDs. Any change to this ratio
in conjunction with the Audit Committee where applicable, is responsible should be rectified within 90 days.
in ensuring the accuracy and timeliness of published information and in
presenting an honest and balanced assessment of results in the quarterly 7.10.2 Independent Directors
a. At least two or one-third of the Compliant Six out of nine
177
and annual Financial Statements.
NEDs, whichever is higher, shall be Non-Executive Cargills
(Ceylon)
independent. directors are
10. Stakeholder Engagement PLC
determined to be Annual
Report
The Board values the Company’s stakeholders and strives to take their independent 2022/23
concerns and interests into account when making business decisions. This
not only enables it to anticipate and manage risk effectively but also helps b. Each NED should annually submit Compliant All Independent
it identify new business opportunities and improve the Group’s relationship a signed and dated declaration NEDs have
with its stakeholders. of his/her independence or non- submitted their
independence. confirmations on
The shareholders are given the opportunity at the AGM to get updates independence as
from the Chairman and the Group CEO on the Group’s performance, to per the criteria laid
ask questions, and to express views and vote on the various matters of down in the Listing
Company business on the agenda. Shareholders may also ask questions Rules
from the Company’s External Auditors at the meeting. The Company
encourages its shareholders to attend its AGM and committed to dealing 7.10.3 Disclosures Relating to Directors
with shareholder queries in a respectful and timely manner whenever they a. The Board shall make a determination Compliant Board of Directors
are received by the Company. annually as to the independence on page 168 to
or non-independence of each 169 and Note 1
Non-Executive Director and list the on page 179
names of the NEDs determined to be
“Independent” in the Annual Report.
b. In the event a Director does Compliant
not qualify as “Independent”
and the Board is of the opinion
that the Director is nevertheless
“Independent”, the Board shall specify
STEWARDSHIP
the criteria not met and the basis for
its determination in the Annual Report.
CSE Rule Status of Details/ CSE Rule Status of Details/
Compliance Reference Compliance Reference
c. A brief résumé of each Director Compliant Board of C. Disclosure in the Annual Report
with information on his/her area of Directors c. The Annual Report should include Compliant Remuneration
expertise should be included in the on page 162 to the names of the Remuneration Committee
Annual Report. 166 and Note 1 Committee members, a statement Report on
on page 179 of the remuneration policy and page 172 The
d. Upon appointment to the Board, a Compliant
the aggregate remuneration paid aggregate
brief résumé of the new Director
to Executive and Non-Executive remuneration
should be provided to the exchange
Directors. paid to the
for dissemination to the public.
178 Directors is given
in Note 35.1 to
Cargills 7.10.5 Remuneration Committee
(Ceylon)
the Financial
PLC A. Composition Statements.
Annual
Report a.1 Remuneration Committee should Compliant Remuneration
2022/23 7.10.6 Audit Committee
comprise at least two independent Committee
NEDs or more than two NEDs, majority Report on A. Composition
of whom shall be independent. page 172. The a.1 Audit Committee should comprise at Compliant Audit Committee
aggregate least two independent NEDs or more Report on page
a.2 One NED shall be appointed as Compliant remuneration than two NEDs, majority of whom shall 169 to 171.
chairman of the Committee by the paid to the be independent.
Board of Directors. Directors is given
in Note 35.1 to a.2 One NED shall be appointed as Compliant
the Financial Chairman of the Committee by the
Statements. Board of Directors.
B. Functions
a.3 CFO shall attend the Audit Committee Compliant
b. Remuneration Committee shall Compliant meetings, and CEO when requested
recommend the remuneration of to attend.
the CEO and Executive Directors to
the Board. a.4 The Chairman of the Audit Committee Compliant
or one member should be a member
of a recognised professional
accounting body.
STEWARDSHIP
CSE Rule Status of Details/ Note 1:
Compliance Reference
Based on the declarations provided by the Non-Executive Directors, the
B. Functions of the Audit Committee Board has determined the following Directors as independent:
b.1 Overseeing the preparation, Compliant Audit Committee

Mr Y Kanagasabai, Mrs C I Malwatte, and
presentation of the Financial Report on page
Mr A T P Edirisinghe who have served on the Company’s Board for a period
Statements and adequacy of 169 to 171.
in excess of nine years and are also Directors of CT Holdings PLC which
disclosures from a compliance
has a significant shareholding in the Company, and
perspective in accordance with
Messrs S E C Gardiner and E A D Perera who have served on the
SLFRS/LKAS
Company’s Board for a period in excess of nine years, and
b.2 Overseeing compliance with Compliant Mr A D B Talwatte who is a Director on the Board of C T Holdings PLC
179
financial reporting requirements and which has a significant shareholding in the Company.
information requirements as per laws Cargills
(Ceylon)
and regulations. In spite of their service on the Company’s Board for over nine years and/ PLC
Annual
or being Directors in another company which has a significant shareholding Report
b.3 Overseeing the processes to ensure Compliant in the Company, the Board has nevertheless determined them to be 2022/23
internal controls and risk management independent considering their credentials and integrity.
functions are adequate to meet the
requirements of Sri Lanka Auditing
Code of Best Practice on Corporate Governance issued by the
Standards.
Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka)
Principle Status Details/
b.4 Assessing the independence and Compliant Reference
performance of the External Auditors.
A. Directors
b.5 Making recommendations to the Compliant A.1 The Board
Board pertaining to appointment A.1.1 The Board should meet regularly, at least In place Corporate
or reappointment or removal of once in every quarter and execute Board Governance
External Auditors and to approve their responsibilities while providing information Report – Section
to the Board on a structured and regular 4.1.3
remuneration and terms of engagement.
basis.
C. Disclosure in the Annual Report

C The Annual Report should include Compliant
the names of the Audit Committee
members, the basis for the
determination of the independence of
the External Auditors and a report of
the Audit Committee setting out the
manner of compliance with the above
requirements during the specified
STEWARDSHIP
period.
Principle Status Details/ Principle Status Details/
Reference Reference
A.1.2 The Board is to provide entrepreneurial In place Corporate A.1.4 All Directors should have access to the In place
leadership by undertaking responsibilities Governance advice and services of the Company
for Report – Section Secretary.
4.1.2
z Ensuring the formulation and
implementation of sound business A.1.5 All Directors should bring independent In place
strategy judgement to bear on issues of strategy,
performance, resources and business
z Ensuring skills and succession of conduct.
Key Management Personnel
Approving budgets and major capital A.1.6 Every Director should dedicate adequate In place
180 z
time and effort to matters of the Board and
expenditure
the Company.
Cargills
(Ceylon) z Ensuring an effective system to
PLC secure integrity of information, internal A.1.7 One third of Directors can call for a In place
Annual
Report
controls, business continuity and risk resolution to be presented to the Board
2022/23 management where they feel it is in the best interest of
the Company to do so.
z Ensuring compliance with laws,
regulations, and ethical standards
A.1.8 Every Director should receive appropriate In place
z Ensuring all stakeholder interests are training when first appointed to the Board
considered in corporate decision and subsequently as necessary. The Board
making should regularly review and agree on the
training and development needs of the
z Recognising sustainable business
Directors.
development and considering the need
of integrated reporting
A.2 Chairman and Chief Executive Officer
z Adopting appropriate accounting
A.2.1 Justification for combining the posts of N/A N/A
policies and compliance with financial
Chairman and CEO in one person to be
regulations
stated in the Annual Report.
z Establishing a process of monitoring
and evaluation of progress on strategy A.3 Chairman’s Role
implementation, budgets, plans and
related risks A.3.1 The Chairman should conduct Board In place
proceedings in a proper manner and
z Ensuring that a process is established ensure:
for corporate reporting on an annual
and quarterly basis or more as relevant

z The agenda for Board meetings is
to the Company developed in consultation with the CEO,
Directors and the Company Secretary
A.1.3 The Board collectively and the Directors In place taking into consideration matters
individually must act in accordance relating to strategy, performance,
with the laws of the country and obtain resource allocation, risk management
independent professional advice where and compliance
STEWARDSHIP
necessary.
Reference Reference
z Sufficiently detailed information of A.5.2 Where the constitution of the Board of N/A N/A
matters included in the agenda should Directors includes only three NEDs, all
be provided to Directors in a timely three such NEDs should be independent.
manner
A.5.3 Definition of Independent Directors In place Corporate
z All Directors are made aware of Governance
For a Director to be deemed “independent”
their duties and responsibilities and Report - Section
such a Director should be independent
committee structures through which 3.1.2
of management and free of any business
it will operate in discharging its
or other relationship that could materially
responsibilities
interfere. 181
z The effective participation and
A.5.4 Each NED should submit annually a In place Cargills
contribution of the Directors is secured (Ceylon)
signed and dated declaration of his/her PLC
independence or non-independence. Annual
z All Directors are encouraged to seek Report
information considered necessary 2022/23
A.5.5 The Board should determine the In place
to discuss matters on the agenda of
independence or otherwise of the NEDs
meetings and to request inclusion of
based on the guidelines provided.
matters of corporate concern on the
agenda
A.5.6 If an alternate Director is appointed by N/A N/A
an NED, such Director should not be an
z A balance of power between Executive
Executive of the Company. If an alternate
and Non-Executive Directors is
Director is appointed by an Independent
maintained
Director, such Director also should meet
the criteria of independence.
z The views of Directors on issues under
consideration are ascertained
A.5.7 In the event the Chairman and CEO are N/A N/A
the same person, the Board should
z The Board is in complete control of appoint one of the Independent NEDs to
the Company’s affairs and alerts to its be the “Senior Independent Director” (SID).
obligations to all stakeholders
A.5.8 The SID should make himself or herself N/A N/A
A.4 Financial Acumen
available for confidential discussions with
A.4 The Board should ensure the availability In place other Directors who may have concerns.
within it of those with sufficient financial
acumen and knowledge to offer guidance A.5.9 The Chairman should hold meetings only In place
on matters of finance. with NEDs as necessary and at least once
each year.
A.5 Board Balance
A.5.10 Where Directors have concerns about the In place
A.5.1 At least three members or one third of In place Corporate
matters of the Company which cannot be
the Board, whichever is higher, should be Governance
unanimously resolved, they should ensure
STEWARDSHIP
NEDs. Any change to this ratio should be Report -
their concerns are recorded in the Board
rectified within 90 days. Section 3.1.1
minutes.
Reference Reference
A.6 Supply of Information A.10 Disclosure of Information in respect of Directors

A.6.1 The Management should provide the In place A.10.1 The Annual Report should disclose details In place Board of Directors
Board with appropriate and timely of each Director such as qualifications, on pages 162 to
information. expertise, immediate family/material 166
business relationship with other Directors,
A.6.2 The agenda and papers required for In place status of independence, directorship in
a meeting should be provided to the other companies, membership in Board
Directors at least seven days before the Committees and details of attendance to
meeting. Board meetings and committee meetings
if relevant.
182
A.7 Appointments to the Board
Cargills A.11 Appraisal of Chief Executive Officer (CEO)
(Ceylon) A.7.1 A Nominations Committee should be In place Corporate
PLC established and its Chairman and members Governance A.11.1 At the commencement of every fiscal In place
Annual
should be disclosed in the Annual Report. Report - Section year, the Board in consultation with the
Report
2022/23 3.2.2 CEO should set financial and non-financial
targets for the year.
A.7.2 The Nominations Committee should In place
annually assess the combined knowledge A.11.2 The performance of the CEO in meeting In place
and experience of the Board. the set targets should be evaluated by the
Board at the end of each fiscal year.
A.7.3 Upon the appointment of a new Director, In place Corporate
a brief résumé, the nature of expertise, Governance B. Directors’ Remuneration
details of directorship in other companies, Report - Section B.1 Remuneration Procedure
Independence/Non-Independence in 3.1.3
the Board of the new Director should be B.1.1 The Board should set up a Remuneration In place Corporate
disclosed to shareholders. Committee. Governance
Report - Section
A.8 Re-election B.1.2 The Remuneration Committee should In place 3.2.3
consist exclusively of NEDs of whom the
A.8.1 NEDs should be appointed for specified In place Corporate majority should be independent. The
terms subject to re-election/removal Governance Chairman should be an Independent
and their re-appointment should not be Report - Section Non-Executive Director and should be
automatic. 3.1.4 appointed by the Board.
A.8.2 All Directors including the Chairman In place B.1.3 The Chairman and members of the In place
should be subject to election by Remuneration Committee should be listed

shareholders at the first opportunity after in the Annual Report.
their appointment, and to re-election
thereafter at intervals of no more than
B.1.4 The Board as a whole should determine In place
three years.
the remuneration of NEDs.
A.8.3 In the event of resignation of a Director In place

STEWARDSHIP
prior to completion of his/her appointed B.1.5 The Remuneration Committee should In place
term, the Director should provide a written consult the Chairman and/or CEO about
communication to be provided to the its proposals relating to the remuneration
Board of his/her reasons for resignation. of other EDs.
Reference Reference
B.2 The level and make up of Remuneration B.3 Disclosure of Remuneration

B.2.1 The Remuneration Committee should In place Corporate B.3.1 The Annual Report should include the In place Remuneration
provide the packages needed to attract, Governance names of the Remuneration Committee Committee Report
retain and motivate Executive Directors and Report - Section members, a statement of the remuneration on page 172.
should avoid paying more than necessary. 3.2.3 policy and the aggregate remuneration The aggregate
paid to Executive and Non-Executive remuneration
B.2.2 Executive Directors’ remuneration should In place Directors. paid to the
be designed to promote the long-term Directors is given
success of the Company. in the Note 35.1
to the Financial
B.2.3 The Remuneration Committee should In place Corporate Statements. 183
judge where to position levels of Governance Cargills
remuneration of the Company, relative to Report - Section C. Relations with Shareholders (Ceylon)
PLC
other companies. 3.2.3 C.1 Constructive use of Annual General Meeting (AGM) and Conduct of Annual
General Meetings Report
2022/23
B.2.4 The Remuneration Committee should be In place
sensitive to remuneration and employment C.1.1 The Notice for AGM and related papers In place
conditions elsewhere in the Company or should be sent to the shareholders before
Group of which it is a part, especially when the Meeting as per the relevant statute.
determining annual salary increases.
C.1.2 The Company should propose a In place
B.2.5 The performance-related elements of In place separate resolution at the AGM on each
remuneration of Executive Directors substantially separate issue.
should be designed and tailored to align
their interests with those of the Company C.1.3 The Company should count all proxy votes In place
and main stakeholders and to give these with respect to each resolution.
Directors appropriate incentives to perform
at the highest levels. C.1.4 Chairpersons of Board Committees In place
should be available at the AGM to answer
B.2.6 Executive share options should not be N/A N/A questions.
offered at a discount.
C.1.5 A summary of procedures governing voting In place
B.2.7 The Remuneration Committee should In place should be circulated with every Notice of
follow the given guidelines in designing General Meeting.
schemes of performance related
C.2 Communication with Shareholders
remuneration.
C.2.1 There should be a channel to reach all In place

B.2.8 The Remuneration Committee should In place
shareholders in order to disseminate timely
appropriately decide on compensation
information.
commitments of Directors in the event of
early termination.
STEWARDSHIP
B.2.10 The Remuneration of NEDs should reflect In place
the time commitment, responsibilities and
market practices.
Reference Reference
C.2.2/ The Company should disclose In place D.1.2 The Board should present interim, price- In place
C.2.3/ sensitive and other reports to regulators.
z Policy and methodology for
C.2.4
communication with shareholders
z How the above policy and methodology D.1.3 The Board should, before it approves the In place Corporate
will be implemented Company’s Financial Statements, obtain Governance
z The contact person for such from its CEO and CFO a declaration that, Report - Section
communication in their opinion, the financial records of the 3.2.1
entity have been properly maintained and
that the Financial Statements comply with
the appropriate accounting standards and
C.2.5 A process to make all Directors aware of In place
184 give a true and fair view of the financial
major issues and concerns of shareholders
position and performance.
Cargills
should be in place and disclosed.
(Ceylon)
PLC D.1.4 The Annual Report should contain a In place Annual Report of
C.2.6 The Company should decide the person to In place
Annual Report from Directors declaring: the Directors’ on
Report contact in relation to shareholders’ matters.
2022/23 the Affairs of the
z The Company has not engaged in any
Company on
C.2.7 The process for responding to shareholder In place unlawful activities
pages 191
matters should be formulated by the Board z All material interests of Directors in
and disclosed. contracts involving the Company
z The equitable treatment of
C.3 Major and Material Transactions shareholders
C.3.1 Directors should disclose to shareholders In place z The Directors have complied with best
all proposed material transactions including practices of corporate governance
related party transactions. z Property, plant and equipment are
reflected at fair value, and where it
C.3.2 Public listed companies should in addition In place is different from fair value, adequate
comply with the disclosure requirements disclosures are made
and shareholder approval by special z The review of internal controls and risk
resolution as required by the rules and
management
regulation of the SEC and by the CSE.
z The business is a going concern
D. Accountability and Audit
D.1.5 The Annual Report should contain a In place Statement
D.1 Financial and Business Reporting (the Annual Report) statement of Directors’ responsibility. of Directors’
D.1.1 The Board should present an annual report In place Responsibilities
including financial statements that is true on pages 195

and fair, balanced and understandable and
prepared in accordance with the relevant D.1.6 The Annual Report should contain a In place Operating
laws and regulations and any deviation “Management Discussion and Analysis”. Segments on
being clearly explained. pages 29 to 52
STEWARDSHIP
Reference Reference
D.1.7 In the event the net assets of the In place D.3 Audit Committee
Company fall below 50% of the value
D.3.1 The Audit Committee should comprise In place Corporate
of the Company’s shareholders’ funds,
exclusively of Non-Executive Directors Governance
the Directors shall forthwith summon an
with a minimum of three Non-Executive Report - Section
Extraordinary General Meeting to notify
Directors of whom at least two should 3.2.1
shareholders of the position and of
be independent. If there are more Non-
remedial action being taken.
Executive Directors, the majority should be
independent. The Committee should be
D.1.8 The Board should adequately and In place Note 35 to shared by an Independent Non-Executive
accurately disclose the related party the Financial Director.
transactions in the Annual Report. Statements 185
D.3.2 The Audit Committee should have a written In place
D.2 Risk Management and Internal Control Cargills
Term of Reference, dealing clearly with its (Ceylon)
D.2.1 The Board should, at least annually, In place Corporate authority and duties. PLC
Annual
conduct a review of the risks facing the Governance Report
2022/23
Company and the effectiveness of the Report - Section D.3.3 The Annual Report should include the In place Corporate
system of internal controls. 7 and Enterprise names of the Audit Committee members, Governance
Risk Management the basis for the determination of the Report - Section
Report on independence of the External Auditors and 3.2.1
pages 187 to 190 a report of the Audit Committee setting
out the manner of compliance with the
D.2.2 The Directors should confirm in the In place above requirements during the specified
Annual Report that they have carried out period.
a robust assessment of the principal risks
facing the Company, including those that D.4 Related Party Transactions Review Committee
would threaten its business model, future
D.4.1 A related party and related party In place
performance, solvency, or liquidity.
transaction will be as defined in LKAS 24.
D.2.3 Companies should have an internal audit In place Corporate

D.4.2 The Board should establish a Related In place Corporate
function. Governance
Party Transactions Review Committee Governance
Report - Section
(RPTRC) consisting exclusively of Non- Report - Section
7 and Enterprise
D.2.4 The Board should maintain a sound In place Executive Directors with a minimum three 3.2.4
Risk Management
system of internal controls and require Non-Executive Directors of whom the
Report on
Audit Committee to carry out reviews majority should be independent. The
pages 187 to 190
of the process and effectiveness of risk Chairman should be an Independent Non-
management and internal controls. Executive Director appointed by the Board.
D.4.3 RPTRC should have written Terms of In place

Reference dealing clearly with its authority
and duties which should be approved by
the Board of Directors.
STEWARDSHIP
Reference Reference
D.5 Code of Business Conduct and Ethics F. Other Investors

F.1 Investing/Divesting Decision
D.5.1 The Company should disclose whether the In place
Code of Business Conduct and Ethics for F.1 Individual shareholders, investing directly In place
Directors and Key Management Personnel in shares of companies should be
is in place and whether all Directors and encouraged to carry out adequate analysis
Key Management Personnel have declared or seek independent advice in investing or
their compliance with such codes. divesting decisions.
D.5.2 The Company should have a process in In place F.2 Shareholder Voting
place to ensure that material and price
186 F.2 Individual shareholders should be In place
sensitive information is promptly identified
encouraged to participate in General
Cargills and reported in accordance with the
Meetings of companies and exercise their
(Ceylon) relevant regulations.
PLC voting rights.
Annual
Report D.6 Corporate Governance Disclosures
2022/23
G. Internet of Things and Cybersecurity
D.6.1 The Directors should include in the In place
Company’s Annual Report a Corporate G.1 The Board should have a process In place
Governance Report setting out the manner to identify how in the Organisation’s
and extent to which the Company has business model, IT devices within and
complied with the principles and provisions outside the Organisation can connect to
of such code. the Organisation’s network to send and
receive information and the consequent
E. Institutional Investors cybersecurity risks that may affect the
business.
E.1 Shareholder Voting
E.1.1 A listed company should conduct a regular In place Corporate G.3 The Board should allocate regular and In place
and structured dialogue with shareholders Governance adequate time on the Board meeting
based on a mutual understanding of Report - Section agenda for discussions about cyber risk
objectives. Arising from such dialogue, 10 management.
the Chairman should ensure the views of
shareholders are communicated to the G.4 The Board should ensure the effectiveness In place
Board as a whole. of cybersecurity risk management
through independent periodic review and
E.2 Evaluation of Governance Disclosures assurance.
E.2.1 When evaluating the Company’s In place H. Environment, Society and Governance (ESG)
governance arrangements, particularly
those relating to Board structure and H.1 to Adherence to ESG principles is disclosed In place
composition, institutional investors should H.1.5 in the sustainability section of the Annual
be encouraged to give due weight to all Report.
relevant factors drawn to their attention.
STEWARDSHIP
ENTERPRISE Over the years, Cargills Group has been able to establish a comprehensive approach towards the management of strategic, operational,
and other external risks stemming from diverse business units. Group level as well as business level risks are identified through cross-
RISK functional involvement. Risk management efforts, spearheaded by the Board of Directors, the Audit Committee, and the Risk Committees
MANAGEMENT are in line with the goals and objectives of Cargills and aim to minimise the negative effect of risks in the process of creating value for
the stakeholders of Cargills. The well-structured risk management framework has been developed based on the ISO standards for risk
management and the guidelines provided by the Committee of Sponsoring Organisations of the Treadway Commission (COSO).
Risk Management
Framework
Audit Committee 187

Board Oversight
of Directors responsibility over Cargills
risk management Overall responsibility for (Ceylon)
function establishing an effective risk PLC
management system Annual
Report
2022/23
Group Risk Sector Risk Risk Management Internal

Committee Committees Department Audit
Oversee the risk Carry out risk assessment Review and update the risk Develop and implement
management process of the respective management framework effective systems of
of the Sector Risk businesses. periodically. internal controls.
Committees.
Formulate and implement Develop and update the Advice the Audit
Carry out risk assessment appropriate mitigation risk management policy Committee on the
of group level functions. actions for the risks and procedure. effectiveness of the risk
identified. management process
Provide adequate Support the Risk and internal control
resources and support Review and improve the Committees in the risk weaknesses.
for the Sector Risk effectiveness of the management process.
Committees. mitigation strategies on a
regular basis.
Risk
Risk Risk Risk Risk Monitoring
Management
Process Identification Analysis Evaluation Treatment and Review
Pillars
Vision, Governance Three Forces
of Risk Core Values
Management Mission Structure of Defence
STEWARDSHIP
Group and Sector Risk Committees
The Group Risk Committee comprise the Directors and Senior Managers and is chaired by the Group Managing Director. Sector Risk Committees comprise
Senior Managers and is chaired by the respective Sector Managing Director.
Overview of Key Risks Affecting the Business

Cargills is exposed to various risks due to its engagement in diverse business operations. Key risks affecting each business may vary depending on the
nature of the business. Risks are assessed at Group and Sector levels and mitigation actions are taken to minimise any impact.
The key risks identified through the risk management exercise are as follows:
Risk Potential Impact Risk Rating Mitigation Action

188
Cargills
Decline in Decline in consumer buying power will High z Vegetables and fruits are sourced directly from farmers and offered to consumers at
(Ceylon) consumer buying directly impact sales and profitability very competitive prices
PLC
power z Essentials and items consumed on a daily basis are marketed through our own brand
Annual
Report “My Choice” at very competitive prices
2022/23
z A vast range of products are offered at a discounted price under various promotions
z Smaller pack sizes are introduced by the manufacturing brands to enable better
affordability
z Bundle offers are given to consumers to provide value for money
z Attractive discounts are offered to loyalty card customers through Cargills rewards
programme
Reputation Failure to protect the reputation of the Medium z Measures are in place to maintain the quality of products, processes and people
Group and brands could lead to a loss z Cargills Values and Code of Conduct are embedded into our engagement processes
of trust and confidence which in turn with customers, suppliers, and other stakeholders
can erode the customer base
z Compliance to labour, regulatory and environmental regulations are closely monitored
z Systems are in place to capture feedback and address the concerns of all
stakeholders
Retention of Losing professional and highly Medium z Efforts are taken to retain and replace talent through suitable rewards schemes
professional and skilled employees may impact the z Career succession plans are in placed to fill the vacancies within
skilled workforce performance of the business negatively
z Training and development is being carried out continuously through Albert A Page
Enterprise Risk Management
Institute (AAPI)
Product quality Inferior quality products will impact Low z Stringent quality control processes are in place in line with quality certification and
and safety customer trust and confidence which in GMP guidelines
turn impact sales and reputation of the z Machineries and equipment are maintained at highest standards to ensure desired
Company quality output
z Staff are being trained continuously on quality aspects
z Regular quality audits are conducted by internal and external teams
STEWARDSHIP
Supply chain Interruption to international and local Medium z Products are sourced from multiple suppliers and locations to ensure continuous
interruption supply chain will have a serious impact supply of inputs and price stability.
and increase in on sales and profitability z Buffer stocks are increased selectively for products which are considered at higher
prices of raw and risk of going out of stock.
Increase in prices of raw and packing
packing material
material will impact margins negatively z Procurement function is centralised across the Group to drive efficiency and price
advantage.
z Alternatives for imported materials are developed/sourced locally to avoid
interruption to supply and price instability.
z Long-term partnerships are established with suppliers, farmers, and SMEs to maintain
prices and continuous supply of goods
189
Health and safety Unsafe working environment and poorly Low z Stringent health and safety measures are in place in all our business premises, which
Cargills
trained employees may cause injuries, are monitored and audited regularly. (Ceylon)
loss of lives and financial loss z Regular review is conducted to ensure compliance to health and safety regulations PLC
Annual
and internal control procedures. Report
2022/23
z Health and safety audits are conducted to ensure safety and a hazard-free
environment for the employees.
z Employees are trained continuously in operating machineries and health and safety
procedures
Cybersecurity Cyber attacks on application Medium z Investments are made continuously in procuring new tools and upgrading existing
systems, network and other IT technology to prevent cyber attacks
infrastructure can cause substantial z Periodic reviews of current information security controls are carried out by internal
impairment to the business by means and external teams
of economic cost, reputational damage
and legal consequences
Funding and Inability to source adequate funds for Low z Internally generated funds are utilised for capital investments as much as possible.
liquidity ongoing business operations, expansion z A combination of long-term and short-term borrowings are utilised for financing.
projects and for other investments
z The Group has established banking facilities with all major banks and financial
can negatively impact the business
institutions and able to secure funds when needed
operations
Credit risk The Group’s FMCG sector is exposed Low z Sales to our distributors are covered by bank guarantees
to credit risk by the nature of the

z Robust credit control process is in place to avoid bad debts
business. Delays in collecting dues form
customers and unrecoverable debts
adversely affect the liquidity position
and the interest cost
Regulatory Changes in fiscal, monetary Medium z Changes in the regulatory environment are continuously monitored and appropriate
environment environment and legal related policies strategies are taken at earliest to mitigate the negative impact
may adversely impact company z Compliance reviews carried out regularly to ensure all regulatory provisions are
STEWARDSHIP
performance complied with
Failure to comply with laws and
regulations could lead to reputational
damage
Interest rates Steep upward movement in the interest Medium z The Group operations are funded by long and short-term loans with a combination of
rate could have a severe impact on the fixed and floating interest rates
financial performance of the Group z Interest rate movements are monitored and appropriate steps are taken to mitigate
the financial impact due to the interest rate fluctuations
Foreign Fluctuation of foreign exchange rates Medium z Foreign exchange rates are monitored by our import division and necessary steps are
exchange rates have an impact on the prices of taken to minimise any adverse impacts
imported raw material, equipment and z Measures are taken to source/develop alternative materials locally to replace
consumer products sold through retail imported items
chain and Millers.
190 Hazards Hazards such as natural disasters, civil Medium z Contingency plans are in place to mitigate hazard risks and to ensure business
unrest, terrorist attacks could adversely continuity
Cargills affect business operations z Adequate insurance covers are obtained against all identified risks
(Ceylon)
PLC
Annual Sustainability Inability to address negative impacts Low z Continuous efforts are in place to minimise plastic usage, use of non-renewable
Report to the environment and society can energy, harmful waste disposal and excessive water consumption. We support our
2022/23
affect the long-term survival of the farming community with sustainable farming practices
Organisation
Misappropriations Fraudulent actions carried out by Low z Effective internal controls are in place across the Organisation
and frauds employees or non-adherence to the z The Internal Audit Department carries out regular review of internal controls and
set internal controls resulting in financial substantive audit verifications to prevent misappropriations and frauds
loss or reputational damage
Forex shortages Shortages of foreign exchange result Medium z Extended credit periods have been negotiated with the suppliers
and controls in delays in importing raw materials and z A better rapport has been established with the banks and government institutions to
finished goods which in turn affects manage the forex situation
sales. Government direction over
extended credit periods for foreign
suppliers may lead to increase in prices
Power cuts, Continuous power cuts and fuel Medium z All our locations have backup generators which are kept in good running condition
fuel shortage shortage may cause interruptions to z Storage facilities are arranged to keep additional fuel stock
and fuel price manufacturing, distribution and sales z Measures are taken to minimise transportation cost
increase operations and increase in spoilage,
damage and returns. High cost of fuel
may increase cost of doing business
Pandemic A pandemic can result in business Low Contingency plans are in place to mitigate pandemic risks and to ensure the business
interruptions, health and safety and continuity. Adequate measures are in place to ensure health and safety of customers
food security concerns. It may also and employees as well as food security
necessitate changes to business
models.
Climate change Prolonged drought, flooding, changes Medium z Fruits and vegetables are sourced from different regions in the country, minimising
STEWARDSHIP
in the monsoon patterns and extreme the dependency on one or a few areas
heat caused by climate change may z Climate smart agriculture practices are introduced to our farmers
result in food insecurity and food z Loans at concessionary interest rates are facilitated to farmers to invest in agriculture
inflation modernisation
ANNUAL The Directors are pleased to submit the Annual Report together
with the Audited Financial Statements of Cargills (Ceylon) PLC and
d) Operates the “Kentucky Fried Chicken” and
“TGIF” franchise restaurants in Sri Lanka
REPORT OF THE Consolidated Audited Financial Statements of the Group for the e) Operates a hotel in the hill-country
DIRECTORS ON year ended 31 March 2023 which were approved by the Board of
f) Produces, imports and distributes agricultural
THE AFFAIRS OF Directors on 5 July 2023.
seeds
THE COMPANY Review of the Year
g) Poultry breeder farming and dairy farming
h) Real estate and property development
The Chairman’s Statement describes in brief the Group’s affairs
and important events of the year. Financial Statements
Activities The Audited Financial Statements comprising
the Statement of Profit or Loss and Other 191
Manufacturing of and Trading in Food and Beverage and
Comprehensive Income, Statement of Financial
Distribution are the principal activities of the Group of companies. Cargills
Position, Statements of Changes in Equity, (Ceylon)
During the year, there were no significant changes in the principal PLC
Statements of Cash Flows and Notes to the Annual
activities of the Group. Report
Financial Statements of the Company and the 2022/23
The Group Group for the financial year ended 31 March

2023 given on pages 203 to 254 form an
a) Operates a chain of supermarkets and convenience stores integral part of the Annual Report of the Board.
b) Distributes world renowned FMCG brands
Auditor’s Report
c) Manufactures/produces/processes and markets processed
meat, dairy ice cream, yoghurt, cheese, milk, nectars and fruit The Independent Auditor’s Report is set out on
juices, jams, cordials, sauces, and biscuits pages 200 to 202.
Accounting Policies
The Accounting Policies adopted in the preparation of the Financial Statements are given on pages 208 to 254.
Results and Dividends

Group Company
For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Profit for the year after taxation amounted to 5,380,845 4,538,720 1,712,886 1,504,329
Add/(less): Amount attributable to non-controlling interest (14,839) 4,324 – –
The profit attributable to shareholders was 5,366,006 4,543,044 1,712,886 1,504,329
To which profit brought forward from previous year is added 11,552,781 9,000,732 5,261,395 5,087,199
Adjustments for surcharge tax (1,067,152) – – –
Adjusted profit brought forward from previous year is added 10,485,629 9,000,732 5,261,395 5,087,199
Other comprehensive income (21,726) 68,221 (10,632) 26,611
Loss on acquisition of C T Properties in relation to common
STEWARDSHIP
control transactions – (582,399) – –
Group Company
For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Changes in ownership interest that do not result in loss of control – (281) – –

Gain on disposal of investment in associate in relation to common control transactions – 4,717 – –
Transfer of value of expired employee share options 72,482 80,731 (117,940) 80,731
Write-back of unclaimed dividends 16,027 5,425 16,027 5,425
Transfer from revaluation reserve due to disposal of revalued asset – 4,785 – –
Classification of non-controlling interest (200,985) – – –
Disposal of subsidiary and associate in relation to common control transactions – – – 129,294
Leaving an amount available to the appropriation of 15,717,433 13,124,615 6,861,736 6,833,229
From which your directors have made appropriation as follows:
192 Dividend paid for the year ended 31 March 2022
Final Rs. 4.10 per share for financial year 2020/21 – 1,056,479 – 1,056,479
Cargills
(Ceylon)
Interim Rs. 2.00 per share for financial year 2021/22 – 515,355 – 515,355
PLC
Annual Dividend paid for the year ended 31 March 2023
Report
2022/23 Final Rs. 5.00 per share for financial year 2020/21 1,288,389 – 1,288,389 –
Interim Rs. 3.50 per share for financial year 2022/23 901,872 – 901,872 –
Leaving an unappropriated balance to be carried forward of 13,527,172 11,552,781 4,671,475 5,261,395
A final dividend of Rs. 5.00 per share (Rs. 1,288.389 Mn.) was paid on
Capital Expenditure
18 August 2022 for the year ended 31 March 2022. First interim dividend
of Rs. 3.50 per share (Rs. 901.872 Mn.) was paid on 8 December 2022 for The Group’s capital outlay on property, plant and equipment amounted
the year ended 31 March 2023. to Rs. 10,832 Mn (2022 - Rs. 7,594 Mn) while the capital outlay of the
Company on property, plant and equipment amounted to Rs. 76 Mn.
(2022 - Rs. 31 Mn.). Details are given in the Statement of Cash Flows on
Reserves
Annual Report of the Directors on the affairs of the Company
page 207.
After the above-mentioned appropriations, the total reserves of the
Group stand at Rs. 20,236 Mn. (2022 - Rs. 18,654 Mn.), while the total The movement of property, plant and equipment during the year is given in
reserves of the Company stand at Rs. 5,040 Mn. (2022 - Rs. 5,761 Mn.). Note 12 to the Financial Statements on pages 221 and 222.
Stated Capital Investment Property

Stated Capital of the Company as at 31 March 2023 was Rs. 6,841 Mn. The fair value of land and building classified as investment property
(2022 - Rs. 6,841 Mn.). The details of the stated capital are given in Note of the Group and the Company as at 31 March 2023 amounted to
23 to the Financial Statements on page 236. Rs. 7,343 Mn. and Rs. 3,294 Mn. respectively. Details of investment
property held by the Group and the Company are disclosed in Note 14 to
the Financial Statements on page 226.
STEWARDSHIP
Market Value of Properties Directors’ Interests Register and Directors’ Interest in
The land and buildings of the Group were revalued as at 31 March 2021. Contracts or Proposed Contracts
Details are given in Note 12 to the Financial Statements on pages 223 and The Company maintains a Directors’ Interests Register in terms of the
224. The Directors are of the opinion that the revalued amounts are not in Companies Act No. 07 of 2007. The Directors have made necessary
excess of the current market values of such properties. declarations of their interests in contracts and proposed contracts in terms
of Sections 192 (1) and 192 (2) of the Companies Act, as at date. These
The portfolio of the revalued land and buildings are given on page 263 in interests are entered in the Interests Register which is deemed to form part
the Financial Statements. of this Annual Report for inspection upon request.
Shareholdings The particulars of the Directors’ Interests in Contracts with the Company
are given in Related Party disclosures to the Financials Statements on
The Company is a subsidiary of C T Holdings PLC and there were 2,007
page 248 and form an integral part of this Annual Report.
193
registered shareholders as at 31 March 2023 (31 March 2022 – 2,117).
Cargills
(Ceylon)
An analysis of shareholdings according to the size of holding and the Statement of Compliance with Related Party PLC
names of the 20 largest shareholders is given on pages 261 and 262.

Transactions Rules Annual
Report
2022/23
Directors hereby confirm that the Company is in compliance with Section 9
of the Listing Rules of the Colombo Stock Exchange in respect of the
Directorate
related party transactions entered into by the Company during the year.
The Directors listed on the inner back cover have been Directors of the
Company throughout the year under review, other than the Directors
against whose names dates of cessation and appointment have been
Directors’ Shareholdings
indicated. The Directors’ shareholdings in the Company were as follows:
As at 31 March 2023 2022
Mr J C Page and Mr S Gardiner retire by rotation in terms of the Company’s
Articles of Association and, being eligible, offer themselves for re-election. Mr Louis Page 42,011 42,011

Mr Ranjit Page 19,228,346 19,168,346
Messrs L R Page, A T P Edirisinghe, and E A D Perera having surpassed Mr Imtiaz Abdul Wahid 222,937 222,937
seventy years of age are due to retire in terms of Section 210 (2) (b) of the –
Mr Priya Edirisinghe –
Companies Act No. 07 of 2007 at the conclusion of the annual general 22,857
Mr Sanjeev Gardiner 22,857
meeting and offer themselves for re-election in terms of Section 211 (1) and
Mr Joseph Page 520,000 520,000
(2) of the Companies Act No. 07 of 2007.
Mr Errol Perera 11,429 11,429
Mr Asoka Pieris – –
The re-election of the retiring Directors has the unanimous support of the
other Directors. Mr Yudhishtran Kanagasabai – –
Mrs Indira Malwatte – –
Mr Asite Talwatte – –
Directors’ Remuneration
Mr Dilantha Jayawardhana 16,810 16,810
The remuneration of the Directors is given in Note 35.1 on page 247 to the
Financial Statements.
STEWARDSHIP
Donations Environmental Protection
During the year, donations amounting to Rs. 110,000 were made by the After making adequate enquiries from the management, the Directors are
Company. In addition, the Group made investments amounting to Rs. 45.13 satisfied that the Company and its subsidiaries operate in a manner that
Mn. for various community projects during the financial year. minimises the detrimental effect on the environment and provide products
and services that have a beneficial effect on the customers and the
Employment communities within which the Group operates.
The number of persons employed by the Company and Group as at

31 March 2023 was 1,950 (2022 – 1,716) and 11,033 (2022 – 9,485), Going Concern
respectively. The Directors have adopted the Going Concern Basis in preparing these
Financial Statements. After making enquiries from the management, the
194 There have been no material issues pertaining to employees and industrial directors are satisfied that the Group has adequate resources to continue
relations of the Company and the Group. its operations in the foreseeable future.
Cargills
(Ceylon)
PLC
Annual Auditor For and on behalf of the Board,
Report
2022/23 Messrs KPMG are deemed re-appointed as Auditors at the Annual General
Meeting of the Company in terms of Section 158 of the Companies Act
No. 07 of 2007. The Directors have been authorised to determine the
remuneration of the Auditor and the fee paid to the Auditor are disclosed
in Note 8 to the Financial Statements on page 217. As far as the Directors Ranjit Page
are aware, the Auditors do not have any relationship (other than that of Deputy Chairman/Group CEO
an Auditor) with the Company or any of its subsidiaries other than those
disclosed in the above note.
Events after the Reporting Period

Events after the reporting period of the Group are given in Note 34 to the
Financial Statements on page 247.
Imtiaz Abdul Wahid
Group Managing Director/Deputy CEO
Statutory Payments
All statutory payments due to the Government of Sri Lanka and on behalf of
employees have been made or accrued for the reporting date.
Future Developments
H S Ellawala
The Chairman’s Message describes the future developments of the Group. Company Secretary
5 July 2023
STEWARDSHIP
STATEMENT OF The Companies Act No. 07 of 2007 places the responsibility on
the Directors to prepare and present financial statements for each
The Directors are required to provide the
Auditors with every opportunity to carry out any
DIRECTORS’ year comprising a Statement of Financial Position as at year end reviews and tests that they consider appropriate
RESPONSIBILITY date and Statements of Profit or Loss and Other Comprehensive and necessary to carry out their responsibilities.
income, Cash Flows Statement and Statement of Changes in The responsibility of the Independent Auditors in
Equity for the year together with the accounting policies and relation to the financial statements is set out in
explanatory notes. the Independent Auditors’ Report.
The responsibility of the Auditors with regard to these financial The Directors, to the best of their knowledge
statements, which differ from that of the Directors, is set out in the and belief, are satisfied that all statutory
Auditors’ Report on pages 200 to 202. payments have been made up to date or have
been provided for in these financial statements. 195
Considering the present financial position of the Company and of Cargills
the Group and the forecasts for the next year, the Directors have By order of the Board (Ceylon)
PLC
adopted the going concern basis for the preparation of these Annual
Report
financial statements. 2022/23
The Directors confirm that the financial statements have been

prepared and presented in accordance with the Sri Lanka
H S Ellawala
Accounting Standards (SLFRSs/LKASs) which have been
Company Secretary
supported by reasonable and prudent judgments and estimates.
5 July 2023
The Directors are responsible for ensuring that the Company and
the Group maintain adequate accounting records to be able to
disclose with reasonable accuracy the financial position of the
Company and the Group. They are also responsible for ensuring
that the financial statements are prepared and presented in
accordance with the Sri Lanka Accounting Standards and provide
the information required by the Companies Act and the Listing
Rules of the Colombo Stock Exchange.
The Directors are responsible for the proper management of the

resources of the Company and of the Group. The internal control
system has been designed and implemented to obtain reasonable
but not absolute assurance that the Company and the Group
are protected from undue risks, frauds and other irregularities.
The Directors are satisfied that the control procedures operated
effectively during the year.
STEWARDSHIP
INDEPENDENT
ASSURANCE
REPORT KPMG
(Chartered Accountants)
Tel
Fax
:
:
+94 - 11 542 6426
+94 - 11 244 5872
32A, Sir Mohamed Macan Markar Mawatha, : +94 - 11 244 6058
P. O. Box 186, Internet : www.kpmg.com/lk
Colombo 00300, Sri Lanka.
INDEPENDENT ASSURANCE REPORT TO Our Conclusions

CARGILLS (CEYLON) PLC Our conclusion has been formed on the basis of, and is subject to, the
We have been engaged by the Directors of Cargills (Ceylon) PLC (“the matters outlined in this report. We believe that the evidence we have
Company”) to provide reasonable assurance and limited assurance in obtained is sufficient and appropriate to provide a basis for our conclusions.
196 respect of the Sustainability Indicators as identified below for the year
Cargills
ended 31 March 2023. The Sustainability Indicators are included in the Reasonable Assurance Sustainability Indicators
(Ceylon) Cargills (Ceylon) PLC Integrated Annual Report for the year ended 31 March
PLC In our opinion, in all material respects, the Reasonable Assurance
2023 (the “Report”).
Annual Sustainability Indicators, as defined above, for the year ended 31 March
Report 2023, in all material respects, has been prepared and presented by the
2022/23 The Reasonable Assurance Sustainability Indicators covered by our
management of Cargills (Ceylon) PLC in accordance with the Consolidated
reasonable assurance engagement are:
Set of Global Reporting Initiative Sustainability Reporting Standards
Assured Sustainability Indicators Integrated Guidelines.
Annual Report page
Limited Assurance Sustainability Indicators

Financial highlights 16 and 17
Based on the evidence we obtained from the assurance procedures
The Limited Assurance Sustainability Indicators covered by our performed, as described below we are not aware of any material
limited assurance engagement are: misstatements that causes us to believe that the Limited Assurance
Sustainability Indicators, as defined above, for the year ended 31 March
Limited Assurance
Sustainability Indicators
Integrated 2023, have not in all material respects, been prepared and presented
Annual Report page
by the management of Cargills (Ceylon) PLC in accordance with the
Consolidated Set of Global Reporting Initiative Sustainability Reporting
Non-Financial Highlights 18 and 19 Standards Guidelines.
Information provided on following
Reducing the cost of living 59 to 67 Management’s Responsibility
Bridging regional disparity 68 to 97 Management is responsible for the preparation and presentation of the
Reasonable Assurance Sustainability Indicators and the Limited Assurance
Healthy safe and affordable nutrition 98 to 115 Sustainability Indicators in accordance with the Consolidated Set of Global
Enhancing youth skills 116 to 125 Reporting Initiative Sustainability Reporting Standards Guidelines.
Building equality, diversity and Inclusion 126 to 149
These responsibilities includes establishing such internal controls as
Playing our part for the planet 150 to 161 management determines are necessary to enable the preparation of the
Reasonable Assurance Sustainability Indicators and the Limited Assurance
Sustainability Indicators that are free from material misstatement whether
due to fraud or error.
C.P. Jayatilake FCA T.J.S. Rajakarier FCA W.W.J.C. Perera FCA

STEWARDSHIP
Ms. S. Joseph FCA Ms. S.M.B. Jayasekara FCA W.K.D.C. Abeyrathne FCA
S.T.D.L. Perera FCA G.A.U. Karunaratne FCA R.M.D.B. Rajapakse FCA
Ms. B.K.D.T.N. Rodrigo FCA R.H. Rajan FCA M.N.M. Shameel FCA
KPMG, a Sri Lankan partnership and a member firm of the KPMG Ms. C.T.K.N. Perera ACA A.M.R.P. Alahakoon ACA Ms. P.M.K. Sumanasekara FCA
global organization of independent member firms affiliated with Principals - S.R.I. Perera FCMA(UK), LLB, Attorney-at-Law, H.S. Goonewardene ACA,
KPMG International Limited, a private English company limited by Ms. F.R Ziyard FCMA (UK), FTII
guarantee. All rights reserved.
Management is responsible for preventing and detecting In making those risk assessments, we have considered z reading the Limited Assurance Sustainability Indicators
fraud and for identifying and ensuring that the Company internal controls relevant to the preparation and presentation presented in the Report to determine whether they are
complies with laws and regulations applicable to its activities. of the Reasonable Assurance Sustainability Indicators in in line with our overall knowledge of, and experience with,
order to design assurance procedures that are appropriate in the sustainability performance of the Company;
Management is also responsible for ensuring that staff the circumstances, but not for the purposes of expressing a z reading the remainder of the Report to determine whether
involved with the preparation and presentation of the conclusion as to the effectiveness of the Company’s internal there are any material misstatements of fact or material
description and Report are properly trained, information controls over the preparation and presentation of the Report. inconsistencies based on our understanding obtained as
systems are properly updated and that any changes in part of our assurance engagement.
reporting encompass all significant business units. Our engagement also included assessing the appropriateness
of the Reasonable Assurance Sustainability Indicators, the The procedures performed in a limited assurance
suitability of the criteria, being the Consolidated Set of engagement vary in nature and timing from, and are less in
Our Responsibility
Global Reporting Initiative Sustainability Reporting Standards extent than for, a reasonable assurance engagement, and
Our responsibility is to express a reasonable assurance Guidelines, used by the Company in preparing and presenting consequently the level of assurance obtained in a limited
conclusion on the Company’s preparation and presentation the Reasonable Assurance Sustainability Indicators within assurance engagement is substantially lower than the
of the Reasonable Assurance Sustainability Indicators the Report, obtaining an understanding of the compilation assurance that would have been obtained had a reasonable
197
and a limited assurance conclusion on the preparation of the financial and non-financial information to the sources assurance engagement been performed. Accordingly, we
and presentation of the Limited Assurance Sustainability from which it was obtained, evaluating the reasonableness Cargills
do not express a reasonable assurance conclusion on the (Ceylon)
Indicators included in the Report, as defined above. of estimates made by the Company, and re-computation of PLC
Limited Assurance Sustainability Indicators.
the calculations of the Reasonable Assurance Sustainability Annual
We conducted our assurance engagement in accordance Indicators. Report
2022/23
with Sri Lanka Standard on Assurance Engagements SLSAE Purpose of our Report
3000: Assurance Engagements other than Audits or Reviews In accordance with the terms of our engagement, this
of Historical Financial Information (SLSAE 3000) issued by Limited Assurance on the Assured Sustainability
assurance report has been prepared for the Company for the
the Institute of Chartered Accountants of Sri Lanka. Indicators
purpose of assisting the Directors in determining whether the
Our limited assurance engagement on the Limited Assurance Company’s Reasonable and Limited Assurance Sustainability
We have complied with the independence and other ethical Sustainability Indicators consisted of making enquiries, Indicators are prepared and presented in accordance
requirements of the Code of Ethics issued by the Institute of primarily of persons responsible for the preparation of the with the Consolidated Set of Global Reporting Initiative
Chartered Accountants of Sri Lanka. Limited Assurance Sustainability Indicators, and applying Sustainability Reporting Standards Guidelines and for no
analytical and other procedures, as appropriate. These other purpose or in any other context.
SLSAE 3000 requires that we plan and perform the procedures included:
engagement to obtain reasonable assurance about whether z interviews with senior management and relevant staff at
the Reasonable Assurance Sustainability Indicators are free Restriction of use of our report
corporate and selected site level concerning sustainability
from material misstatement and limited assurance about strategy and policies for material issues, and the This report has been prepared for the Directors of Cargills
whether the Limited Assurance Sustainability Indicators are implementation of these across the business; (Ceylon) PLC for the purpose of providing an assurance
free from material misstatement. conclusion on the Reasonable Assurance Sustainability
z enquiries of management to gain an understanding of the
Indicators and the Limited Assurance Sustainability Indicators
Company’s processes for determining material issues for
Our firm applies Sri Lanka Standard on Quality Management included in the Cargills (Ceylon) PLC Integrated Annual
the Company’s key stakeholder groups;
(SLSQM) 1, which requires the firm to design, implement and Report for the year ended 31st March 2023 and may not be
operate a system of quality management including policies or z enquiries of relevant staff at corporate and selected suitable for another purpose. We disclaim any assumption of
procedures regarding compliance with ethical requirements, site level responsible for the preparation of the Limited responsibility for any reliance on this report, to any person
Independent Assurance Report

professional standards and applicable legal and regulatory Assurance Sustainability Indicators; other than the Directors of Cargills (Ceylon) PLC, or for any
requirements. z enquiries about the design and implementation of the other purpose than that for which it was prepared.
systems and methods used to collect and report the
Reasonable Assurance over Reasonable Assurance Limited Assurance Sustainability Indicators, including the
Sustainability Indicators aggregation of the reported information;
The procedures selected in our reasonable assurance z comparing the Limited Assurance Sustainability Indicators
engagement depend on our judgment, including the to relevant underlying sources on a sample basis to
assessment of the risks of material misstatement of the determine whether all the relevant information has been
appropriately included in the Report; CHARTERED ACCOUNTANTS
STEWARDSHIP
Reasonable Assurance Sustainability Indicators whether due
to fraud or error. Colombo
5 July 2023
FINANCIAL
199
Cargills
(Ceylon)
STATEMENTS
PLC
Annual
Report
2022/23
STATEMENT OF PROFIT
INDEPENDENT OR LOSS AND OTHER STATEMENT OF STATEMENT OF
AUDITOR’S REPORT COMPREHENSIVE INCOME FINANCIAL POSITION CHANGES IN EQUITY
200 203 204 205
STATEMENT OF NOTES TO THE

CASH FLOWS FINANCIAL STATEMENTS
207 208
INDEPENDENT
AUDITOR’S
REPORT 19
8 7-
202 2 K P M G S
R IL
KPMG
(Chartered Accountants)
Tel
Fax
:
:
+94 - 11 542 6426
+94 - 11 244 5872
A
NK
32A, Sir Mohamed Macan Markar Mawatha, : +94 - 11 244 6058
A
A NNI VERS
P. O. Box 186, Internet : www.kpmg.com/lk
Colombo 00300, Sri Lanka.
AR
Y
200 TO THE SHAREHOLDERS OF CARGILLS Basis for Opinion
Cargills
(CEYLON) PLC We conducted our audit in accordance with Sri Lanka Auditing Standards
(Ceylon)
(SLAuSs). Our responsibilities under those standards are further described in the
PLC Report on the Audit of the Financial Statements Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Group in accordance with the Code of Ethics
Annual
Report Opinion
issued by CA Sri Lanka (Code of Ethics), and we have fulfilled our other ethical
2022/23
We have audited the financial statements of Cargills (Ceylon) PLC (“the responsibilities in accordance with the Code of Ethics. We believe that the audit
Company”) and the consolidated financial statements of the Company and its evidence we have obtained is sufficient and appropriate to provide a basis for
subsidiaries (“the Group”), which comprise the statement of financial position as our opinion.
at March 31, 2023, and the statement of profit or loss and other comprehensive
income, statement of changes in equity and statement of cash flows for the
year then ended, and notes to the financial statements, including a summary Key Audit Matters
of significant accounting policies and other explanatory information set out on Key audit matters are those matters that, in our professional judgment, were
pages 203 to 254 of the Annual Report. of most significance in our audit of the Company financial statements and the
consolidated financial statements of the current period. These matters were
In our opinion, the accompanying financial statements of the Company and the addressed in the context of our audit of the Company financial statements and
Group give a true and fair view of the financial position of the Company and the the consolidated financial statements as a whole, and in forming our opinion
Group as at March 31, 2023, and of their financial performance and cash flows thereon, and we do not provide a separate opinion on these matters.
for the year then ended in accordance with Sri Lanka Accounting Standards.
C.P. Jayatilake FCA T.J.S. Rajakarier FCA W.W.J.C. Perera FCA

Ms. S. Joseph FCA Ms. S.M.B. Jayasekara ACA W.K.D.C Abeyrathne FCA
FINANCIAL STATEMENTS
S.T.D.L. Perera FCA G.A.U. Karunaratne FCA R.M.D.B. Rajapakse FCA

Ms. B.K.D.T.N. Rodrigo FCA R.H. Rajan FCA M.N.M. Shameel FCA
Ms. C.T.K.N. Perera ACA A.M.R.P. Alahakoon ACA Ms. P.M.K. Sumanasekara FCA
KPMG, a Sri Lankan partnership and a member firm of the KPMG
global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by Principals - S.R.I. Perera FCMA(UK), LLB, Attorney-at-Law, H.S. Goonewardene ACA,
guarantee. All rights reserved. Ms. F.R. Ziyard FCMA (UK) FTII
Risk Description Our Response
Revenue Recognition – Group Our audit procedures included:

As described in Note 4 the Group has recognised revenue in the amount of Rs. 195,618 Mn. z Obtaining an understanding of and assessing the design, implementation and operating effectiveness
of management’s key internal controls in relation to revenue recognition from sales transactions.
As at the reporting date, 31 March 2023, revenue from the sale of goods from the Food Retailing and
z Testing the design, implementation, and operating effectiveness of relevant general IT controls,
Food and Beverage Manufacturing and Distribution segment continued to be the main revenue stream
automated controls including testing the completeness and accuracy of key reports used in the
for the Group amounting to Rs. 186,686 Mn which is 95% of Group revenue.
operation of a control that addresses process risk points related to accounts with a risk of material
Based on the Group’s business model, there are many different types of revenues, arising from misstatement.
different types of transactions and events with customers. z Comparing revenue transactions recorded during the current year for the manufacturing segment,
on a sample basis, with invoices, sales contracts, underlying goods delivery and acceptance notes,
We identified revenue recognition as a key audit matter because of its significance to the consolidated
where appropriate, to assess whether the related revenue was recognised in accordance with the
financial statements.
Group’s revenue recognition accounting policies.
z Performing a revenue mapping between the front-end system and general ledger for restaurants 201
and retail segments and mapping total inventories issued to corresponding invoices for the
manufacturing segment to assess whether the sales were completely and accurately accounted in Cargills
the general ledger. (Ceylon)
PLC
z Comparing, on a sample basis, specific revenue transactions recorded before and after the financial Annual
year end date with the underlying goods delivery notes and/or invoices to assess whether the Report
2022/23
related revenue had been recognised in the correct financial period.
Valuation of Investment Properties – Group Our audit procedures included:

As described in Note 14 to the financial statements, the Group’s Investment Properties are stated at z Assessing the objectivity, independence, competence and qualifications of the external valuer.
their fair value in the amount of Rs. 7,343 Mn as at the reporting date. z Assessing the key assumptions applied and conclusions made in deriving the fair value of the
Management’s assessment of fair value of investment properties is based on valuations performed by properties and comparing the fair value of properties with evidence of current market values. In
a qualified independent property valuer in accordance with recognised industry standards. addition, assessing the valuation methodologies with reference to recognised industry standards.
z Assessing the adequacy of disclosures made in the financial statements in relation to fair value of
Valuation of investment properties is considered a Key Audit Matter due to the subjective nature of freehold land and building and investment properties.
property valuations using level 3 assumptions which depend on the nature of property, its location
and expected future net rental values, market yields, value per square foot, market price per perch,
capitalisation rates and comparable market transactions. A change in the key assumptions will have a
significant impact to the valuation.
Carrying Value of Inventories – Group Our audit procedures included:
As described in Note 20 to the financial statements the Group has recognised Inventory in the amount z Obtaining an understanding of and assessing the design, implementation and operating
effectiveness of key internal controls relating to inventory counts across the Group’s sites and
Independent Auditor’s Report

of Rs. 22,873 Mn.
purchasing and issuing of inventories.
The Group holds a significant level of inventory across a broad and diversified product range, over z Comparing, on a sample basis, the purchase prices and quantities of inventories recorded by the
many locations. At 31 March 2023 19% of total assets of the Group consisted of inventory. Group with supplier invoices, goods delivery notes and goods receipt notes.
Due to the change in consumer demands judgment is exercised with regard to categorisation of stock z Evaluation of the inventory costing methodology and valuation policy established by management,
as obsolete and/or slow moving to be considered for provision/write offs; estimates are then involved including compliance with the applicable financial reporting standard.
in arriving at provisions against cost in respect of slow moving and obsolete inventories located in z Comparing, on a sample basis, the selling price of the finished goods subsequent to the reporting
many locations, of the subsidiaries and many outlets to arrive at valuation based on lower of cost and date to their carrying values of these inventories as at the financial year end.
net realisable value.
z Considering the principles of accounting for the inventory write offs and also carrying out a
Given the level of judgments, estimates, number of items and locations involved this is considered to comparison of inventory levels, to sales data to corroborate whether slow moving and obsolete
be a key audit matter. inventories had been appropriately identified.
z Attending stock counts as at the year end at sample locations of supermarkets, outlets and
warehouses. In addition, assessing the effectiveness of the physical count controls in operation
at each count location to identify damaged stocks, expired stocks and stock shortages that are
written off in a timely manner and evaluating the results of the other cycle counts performed by the
management and third parties throughout the period to assess the level of count variances that are
also adjusted periodically.
Other Information z Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
Management is responsible for the other information. The other information comprises the information estimates and related disclosures made by management.
included in the annual report, but does not include the financial statements and our auditor’s report z Conclude on the appropriateness of management’s use of the going concern basis of accounting
thereon. and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
Our opinion on the financial statements does not cover the other information and we do not express If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
any form of assurance conclusion thereon. report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
In connection with our audit of the financial statements, our responsibility is to read the other of our auditor’s report. However, future events or conditions may cause the Group to cease to
information and, in doing so, consider whether the other information is materially inconsistent with continue as a going concern.
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially z Evaluate the overall presentation, structure and content of the financial statements, including the
misstated. If, based on the work we have performed, we conclude that there is a material misstatement disclosures, and whether the financial statements represent the underlying transactions and events
of this other information, we are required to report that fact. We have nothing to report in this regard. in a manner that achieves fair presentation.
z Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
202 Responsibilities of Management and those charged with Governance for the business activities within the Group to express an opinion on the consolidated financial statements.
Financial Statements We are responsible for the direction, supervision and performance of the Group audit. We remain
Cargills
(Ceylon)
solely responsible for our audit opinion.
Management is responsible for the preparation of financial statements that give a true and fair view
PLC
in accordance with Sri Lanka Accounting Standards, and for such internal control as management
Annual We communicate with those charged with governance regarding, among other matters, the planned
Report determines is necessary to enable the preparation of financial statements that are free from material
scope and timing of the audit and significant audit findings, including any significant deficiencies in
2022/23 misstatement, whether due to fraud or error.
internal control that we identify during our audit.
In preparing the financial statements, management is responsible for assessing the Group’s ability to
We also provide those charged with governance with a statement that we have complied with ethical
continue as a going concern, disclosing, as applicable, matters related to going concern and using
requirements in accordance with the Code of Ethics regarding independence, and to communicate
the going concern basis of accounting unless management either intends to liquidate the Group or to
with them all relationships and other matters that may reasonably be thought to bear on our
cease operations, or has no realistic alternative but to do so.
independence, and where applicable, related safeguards.
Those charged with governance are responsible for overseeing the Company’s and the Group’s
From the matters communicated with those charged with governance, we determine those matters
financial reporting process.
that were of most significance in the audit of the financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
Auditor’s Responsibilities for the Audit of the Financial Statements regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
such communication.
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SLAuSs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the Report on other Legal and Regulatory Requirements
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
Independent Auditor’s Report
As required by section 163 (2) of the Companies Act No. 07 of 2007, we have obtained all the
the basis of these financial statements.
information and explanations that were required for the audit and, as far as appears from our
examination, proper accounting records have been kept by the Company.
As part of an audit in accordance with SLAuSs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
CA Sri Lanka membership number of the engagement partner responsible for signing this
z Identify and assess the risks of material misstatement of the financial statements, whether due to independent auditor’s report is 1798.
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
z Obtain an understanding of internal control relevant to the audit in order to design audit CHARTERED ACCOUNTANTS
procedures that are appropriate in the circumstances, but not for the purpose of expressing an Colombo, Sri Lanka
opinion on the effectiveness of the Company and the Group’s internal control. 5 July 2023
STATEMENT OF
GROUP COMPANY
For the year ended 31 March Note Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
PROFIT OR LOSS
Revenue 4 195,617,899 136,691,993 36,062 31,013
AND OTHER Cost of sales 5 (172,948,004) (121,119,386) (35,142) (30,502)
COMPREHENSIVE Gross profit 22,669,895 15,572,607 920 511
INCOME Other income

Distribution expenses
6 2,327,117
(5,893,807)
2,166,989
(4,154,263)
4,721,236
–
3,463,933
–
Administrative expenses (5,343,670) (4,526,950) (1,813,264) (1,574,159)
Results from operating activities 13,759,535 9,058,383 2,908,892 1,890,285
Finance income 841,299 243,658 821,138 116,805
Finance costs (6,578,663) (3,498,889) (1,609,070) (439,105)
Net finance cost 7 (5,737,364) (3,255,231) (787,932) (322,300) 203
Changes in fair value of investment property 14 300,779 129,463 105,581 69,043
Cargills
Share of profit/(loss) of equity accounted investees, net of tax 16.4 193,692 (114,181) – – (Ceylon)
PLC
Profit before tax 8 8,516,642 5,818,434 2,226,541 1,637,028
Annual
Income tax expense 9 (3,135,797) (1,279,714) (513,655) (132,699) Report
2022/23
Profit for the year 5,380,845 4,538,720 1,712,886 1,504,329
Other Comprehensive Income (OCI) Items that will not be Reclassified to

Profit or Loss
Actuarial gain/(loss) on employee benefit liability 28.3 21,303 158,313 (15,189) 35,014
Share of other comprehensive income/(expense) in equity accounted investee,
net of tax 16.4 (36,660) (52,542) – –
Net change in fair value of FVOCI financial assets 16.3.1 43,726 7,311 43,519 7,239
Tax on other comprehensive income (370,169) (37,495) (97,444) (8,403)
Other comprehensive income/(expense) for the year, net of tax (341,800) 75,587 (69,114) 33,850
Total comprehensive income for the year 5,039,045 4,614,307 1,643,772 1,538,179
Profit Attributable to:

Equity holders of the parent 5,366,006 4,543,044 1,712,886 1,504,329
Non-controlling interest 14,839 (4,324) – –
5,380,845 4,538,720 1,712,886 1,504,329
Total Comprehensive Income Attributable to:

Equity holders of the parent 5,024,323 4,618,576 1,643,772 1,538,179
Non-controlling interest 14,722 (4,269) – –
5,039,045 4,614,307 1,643,772 1,538,179
Earnings Per Share

Basic (Rs.) 10.1 20.82 17.63 6.65 5.84
Diluted (Rs.) 10.2 20.82 17.63 6.65 5.84
Figures in brackets indicate deductions
The Notes on pages 208 to 254 are an integral part of these Financial Statements.
STATEMENT
GROUP COMPANY
As at 31 March Note Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
OF FINANCIAL ASSETS
POSITION Non-current Assets
Property, plant and equipment 12 46,922,982 40,012,205 3,461,947 3,459,660
Right of use assets 13.1 20,641,258 16,825,758 1,016,611 1,089,171
Investment property 14 7,342,566 7,039,884 3,293,903 3,170,928
Intangible assets 15 1,582,713 1,439,415 145,907 62,171
Investments in subsidiaries 16.1 – – 5,960,269 6,132,690
Investment in equity accounted investees 16.2 4,364,261 4,207,228 4,717,843 4,717,843
Other financial assets 16.3 1,569,942 1,526,215 1,569,461 1,525,941
Prepayment on leasehold land and building 17 200,912 200,912 – –
Biological assets 18 – –
204 23,873 –
Deferred tax assets 19 27,829 14,070 – –
Cargills Figures in brackets indicate Total non-current assets 82,676,336 71,265,687 20,165,941 20,158,404
(Ceylon)
PLC deductions. Current Assets
Annual Inventories 20 22,872,826 14,802,284 7,646 13,162
Report The Notes from pages 208 to 254
2022/23 Biological assets 18 33,681 – – –
form an integral part of these
Financial Statements. Trade and other receivables 21 9,851,088 7,438,085 683,722 503,808
Amounts due from related companies 22 391,668 377,065 4,007,984 2,333,277
I certify that the Financial Statements Other financial assets 16.3 119,667 1,016,556 – –
have been prepared in accordance Cash and cash equivalents 25 4,841,416 3,544,099 7,933 73,504
with the requirements of the Total current assets 38,110,346 27,178,089 4,707,285 2,923,751
Companies Act No. 7 of 2007. Total assets 120,786,682 98,443,776 24,873,226 23,082,155
EQUITY
Stated capital 23 6,841,068 6,841,068 6,841,068 6,841,068
Reserves 24 6,708,955 7,101,394 368,313 499,277
Retained earnings 13,527,172 11,552,781 4,671,475 5,261,395
Dilantha Jayawardhana Total equity attributable to equity holders of the parent 27,077,195 25,495,243 11,880,856 12,601,740
Executive Director Non-controlling interest 3,840,612 3,626,272 – –
Total equity 30,917,807 29,121,515 11,880,856 12,601,740
The Board of Directors is responsible LIABILITIES
for the preparation and presentation
Non-current Liabilities
of these Financial Statements.
Interest bearing loans and borrowings 26 4,114,873 7,523,412 2,789,844 4,395,893

Signed for and on behalf of the Lease liability 13.2 22,921,256 18,502,079 962,697 1,002,703
Board. Deferred tax liabilities 19 1,337,651 729,805 484,151 287,150
Capital grants 27 4,493 15,975 – –
Employee benefit liability 28 1,833,667 1,549,184 726,702 594,973
Total non-current Liabilities 30,211,940 28,320,455 4,963,394 6,280,719
Current Liabilities
Ranjit Page Imtiaz Trade and other payables 29 27,936,283 23,109,018 564,587 603,905
Deputy Chairman/ Abdul Wahid Current tax liabilities 5,954,905 4,194,322 417,017 238,414
Group CEO Group Managing Amounts due to related companies 22 6,407 4,572 1,286 15,338
Director/ Dividend payable 30 78,673 72,295 78,673 72,295
Deputy CEO
Interest bearing loans and borrowings 26 24,342,847 12,482,221 6,932,669 3,246,919
Lease liability 13.2 1,337,820 1,139,378 34,744 22,825
5 July 2023
Colombo Total current liabilities 59,656,935 41,001,806 8,028,976 4,199,696
Total liabilities 89,868,875 69,322,261 12,992,370 10,480,415
Total equity and liabilities 120,786,682 98,443,776 24,873,226 23,082,155
STATEMENT OF Group Stated
Capital
Capital
Reserve
Revaluation
Reserve
FVOCI
Reserve
Employee
Share Option
Retained
Earnings
Non-
Controlling
Total
Equity
CHANGES IN
Reserve Interest
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
EQUITY Balance as at 1 April 2021 6,773,878 7,928 7,017,804 654 152,853 9,000,732 6,874 22,960,723
Profit for the period – – – – – 4,543,044 (4,324) 4,538,720
Other comprehensive income – – – 7,311 – 68,221 55 75,587
Total Comprehensive Income – – – 7,311 – 4,611,265 (4,269) 4,614,307
Transactions with Owners of the Company,
Recognised Directly in Equity
Exercise of share options (Note 24) 67,190 – – – – – – 67,190
Gain/(loss) on acquisition of CT Properties Limited in
relation to common control transactions (Note 16.1.2.2) – – – – – (582,399) 923,605 341,206 205
Change in ownership interest in relation to common
control transactions (Note 16.1.2.3) – – – – – (281) 2,700,062 2,699,781 Cargills
(Ceylon)
Gain/(loss) on disposal of investment in associate in PLC
relation to common control transactions (Note 16.1.2.1) – – – – – 4,717 – 4,717
Annual
Transfer of value of expired employee share options – – – – (80,371) 80,371 – – Report
2022/23
Transfer from revaluation reserve due to disposal of
revalued assets – – (4,785) – – 4,785 – –
Writeback of unclaimed dividends (Note 30) – – – – – 5,425 – 5,425
Dividends (Note 11) – – – – – (1,571,834) – (1,571,834)
Balance as at 31 March 2022 6,841,068 7,928 7,013,019 7,965 72,482 11,552,781 3,626,272 29,121,515
Balance as at 1 April 2022 6,841,068 7,928 7,013,019 7,965 72,482 11,552,781 3,626,272 29,121,515
Adjustments for surcharge tax – – – – – (1,067,152) (1,367) (1,068,519)
Adjusted balance as at 1 April 2022 6,841,068 7,928 7,013,019 7,965 72,482 10,485,629 3,624,905 28,052,996
Profit for the period – – – – – 5,366,006 14,839 5,380,845
Other comprehensive income – – (363,683) 43,726 – (21,726) (117) (341,800)
Total comprehensive income – – (363,683) 43,726 – 5,344,280 14,722 5,039,045
Classification of non-controlling interest – – – – – (200,985) 200,985 –
Transfer of value of expired employee share options – – – – (72,482) 72,482 – –
Write back of unclaimed dividends (Note 30) – – – – – 16,027 – 16,027
Dividends (Note 11) – – – – – (2,190,261) – (2,190,261)
Balance as at 31 March 2023 6,841,068 7,928 6,649,336 51,691 – 13,527,172 3,840,612 30,917,807
The figures in brackets indicate deductions.
The Notes from pages 208 to 254 form an integral part of these Financial Statements.
Company Stated Revaluation FVOCI Employee Retained Total
Capital Reserve Reserve Share Option Earnings Equity
Reserve
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Balance as at 1 April 2021 6,773,878 420,431 (875) 152,853 5,087,199 12,433,486

Profit for the period – – – 1,504,329 1,504,329
Other comprehensive income – – 7,239 – 26,611 33,850
Total comprehensive income – – 7,239 – 1,530,940 1,538,179

Exercise of share options (Note 24) 67,190 – – – – 67,190
Disposal of subsidiary and associate in relation to common control transactions
(Note 16.1.2.1 and 16.1.2.4) – – – – 129,294 129,294
206 Transfer of value of expired employee share options – – – (80,371) 80,371 –

Writeback of unclaimed dividends (Note 30) – – – – 5,425 5,425
Cargills Dividends (Note 11) – – – – (1,571,834) (1,571,834)
(Ceylon)
PLC Balance as at 31 March 2022 6,841,068 420,431 6,364 72,482 5,261,395 12,601,740
Annual Balance as at 1 April 2022 6,841,068 420,431 6,364 72,482 5,261,395 12,601,740
Report
2022/23 Profit for the period – – – – 1,712,886 1,712,886
Other comprehensive income – (102,001) 43,519 – (10,632) (69,114)
Total comprehensive income – (102,001) 43,519 – 1,702,254 1,643,772

Transfer of value of expired employee share options (Note 24) – – – (72,482) (117,940) (190,422)
Write back of unclaimed dividends (Note 30) – – – – 16,027 16,027
Dividends (Note 11) – – – – (2,190,261) (2,190,261)
Balance as at 31 March 2023 6,841,068 318,430 49,883 – 4,671,475 11,880,856
The figures in brackets indicate deductions.
The Notes from pages 208 to 254 form an integral part of these Financial Statements.
Statement of Changes in Equity
STATEMENT OF
GROUP COMPANY
For the year ended 31 March Note Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
CASH FLOWS Cash Flows from Operating Activities

Profit before taxation 8,516,642 5,818,434 2,226,541 1,637,028
Adjustments for:
Depreciation on property, plant and equipment 12 3,915,735 3,452,959 68,076 69,231
Employee benefit expense 28 376,815 243,197 137,994 85,131
Amortisation of intangible assets 15 125,562 104,518 19,050 893
Depreciation on right of use assets 13 1,900,153 1,731,551 72,560 83,691
Net adjustment of ROU asset and liability (23,863) – – –
Negative lease payments – (114,713) – –
Amortisation of deferred income 27 (11,482) (11,481) – –
Gain on disposal of property, plant and equipment 6 (1,497) (4,278) (590) –
Gain on disposal of ROU asset and liability – (3,394) – (3,394)
Change in fair value of investment property 14 (300,779) (129,463) (105,581) (69,043)
Impairment of/(reversal of impairment) for inventories 17,881 –
Impairment of/(reversal of impairment) for trade receivable and other receivables
39,959
(29,500) 34,890
–
(373) 113
207
Net finance costs 7 5,737,364 3,255,231 787,932 322,300
Cargills
Dividend income 6 (1,520) (438) (2,524,329) (1,666,082) (Ceylon)
Share of (profit)/loss on equity accounted investees, net of tax 16.4 (193,692) 114,181 – – PLC
Operating profit before working capital changes 20,049,897 14,509,075 681,280 459,868 Annual
Changes in Working Capital Report
2022/23
- (Increase)/decrease in inventories (8,110,501) (3,041,957) 5,516 (12,259)
- (Increase)/decrease in trade and other receivables (2,353,953) (1,415,286) (180,287) (75,371)
- (Increase)/decrease in amount due from related companies (14,603) 5,788 (1,674,707) (874,523)
- Increase/(decrease) in trade and other payables 4,882,575 6,505,085 (40,902) 83,205
- Increase/(decrease) in amount due to related companies 1,835 (3,668) (14,051) 3,519
Cash generated from operations 14,455,250 16,559,037 (1,223,151) (415,561)
Income taxes paid (2,219,937) (1,071,614) (227,756) (33,615)
Interest paid (4,584,238) (1,255,609) (1,556,582) (361,839)
Retiring gratuity paid 28 (71,029) (65,393) (21,454) (35,057)
Net cash generated (used in)/from operating activities 7,580,046 14,166,421 (3,028,943) (846,072)
Cash Flows from Investing Activities
Acquisition and construction of property, plant and equipment 12 (10,832,042) (7,593,769) (75,681) (31,035)
Acquisition and construction of investment property 14 (1,903) (1,100,632) (17,394) –
Acquisition of intangible assets 15 (268,860) (152,147) (102,786) (61,014)
Interest income received 7 785,684 243,658 821,138 73,470
Dividend received 6 1,520 438 2,524,329 1,666,082
Acquisition of subsidiaries and associates 16 – (1,284,018) (18,000) (2,815,364)
Proceeds from disposal of property, plant and equipment 6 7,027 11,005 6,147 12,368
Proceeds from disposal of investment property – – – 1,157,681
Purchase of biological assets 18 (57,554) – – –
Proceeds from disposal of subsidiaries and associates 16.1.2.1 and 16.1.2.4 – – – 862,215
(Addition)/disposal to other financial assets 896,889 (1,561,760) – (1,500,000)
Net cash generated (used in)/from investing activities (9,469,239) (11,437,225) 3,137,753 (635,597)
Cash Flows from Financing Activities
Proceeds from issue of shares 23 – 67,190 – 67,190
Share issued to non controlling interest 16.1.2.3 – 2,699,781 – –
Net proceeds from/(repayment of) short term borrowings 11,740,312 (7,529,714) 3,960,000 (2,198,220)
Net proceeds from/(repayment of) long term borrowings (4,096,121) 7,714,746 (1,950,000) 5,625,000
Lease payments, net of concessions 13 (3,097,721) (2,606,812) (80,575) (81,489)
Dividend paid to shareholders 30 (2,167,856) (1,557,918) (2,167,856) (1,557,918)
Dividend/paid to non-controlling interest – – – –
Figures in brackets indicate
Net cash generated (used in)/from financing activities 2,378,614 (1,212,727) (238,431) 1,854,563
deductions.
Net Increase/(decrease) in Cash and Cash equivalents 489,421 1,516,469 (129,621) 372,894
Cash and Cash equivalents
The Notes on pages 208 to 254 At the beginning of the year 1,842,049 325,580 (22,160) (395,054)
are an integral part of these
Movement during the year 489,421 1,516,469 (129,621) 372,894
At the end of the year 25 2,331,470 1,842,049 (151,781) (22,160)
NOTES TO THE 1. Corporate Information 2. Basis of Preparation
FINANCIAL 1.1 Reporting Entity 2.1 Statement of Compliance
Cargills (Ceylon) PLC (“the Company”) is a Quoted Public Limited Liability The Consolidated Financial Statements of the Group and Separate Financial
STATEMENTS Company domiciled in Sri Lanka and listed in the Colombo Stock Exchange. The Statements of the Company, as at 31 March 2023 and for the year then ended,
Company’s registered office is located at No. 40, York Street, Colombo 1. have been prepared and presented in accordance with Sri Lanka Accounting
Standards (SLFRS and LKAS), laid down by the Institute of Chartered Accountants
of Sri Lanka and in compliance with the requirements of the Companies Act No. 07
1.2 Consolidated Financial Statements of 2007, and the Listing Rules of the Colombo Stock Exchange.
The Consolidated Financial Statements of the Group for the year ended
31 March 2023 comprise Cargills Ceylon PLC (Parent Company), its subsidiaries These Financial Statements include the following components:
(together referred to as the “Group”) and the Group’s interest in its equity
z Statement of Profit or Loss and Other Comprehensive Income providing the
accounted investees.
information on the financial performance of the Group for the year under
review;
208 1.3 Parent Entity and Ultimate Parent Entity z Statement of Financial Position providing the information on the financial
The Company’s ultimate parent is C T Holdings PLC which is a Quoted Public position of the Group as at the year-end;
Cargills
(Ceylon) Limited Liability Company domiciled in Sri Lanka and listed in the Colombo z Statement of Changes in Equity depicting all changes in shareholder’s equity
PLC
Stock Exchange. of the Group during the year under review;
Annual
Report z Statement of Cash Flows providing the information to the users, on the ability
2022/23
1.4 Number of Employees of the Group to generate cash and cash equivalents during the year under
review; and
The staff strength of the Company as at 31 March 2023 is 1,950
(1,716 as at 31 March 2022). z Notes to the Financial Statements comprising Accounting Policies and other
The staff strength of the Group as at 31 March 2023 is 11,033 explanatory information.
(9,485 as at 31 March 2022).
These Financial Statements, except for information on cash flows have been
prepared following the accrual basis of accounting.
1.5 Principal Activities and Nature of Operations
The principal activities of the Group are: Further the tax liability arising from the Surcharge Tax Act No. 14 of 2022 has
been accounted as recommended by Statement of Alternative Treatment (SoAT)
1) operating a chain of retail outlets under the brand names of “Food City”,
issued by The Institute of Chartered Accountants of Sri Lanka as disclosed
Cargills Express, “Food Hall” and eCommerce platform “Cargills Online”
under Note 9 on Income Taxes.
2) manufacturing and distributing
(a) ice cream and other dairy products under the brand names of “Magic”,
“Heavenly” and “Kotmale”
2.2 Responsibility for Financial Statements
The Board of Directors is responsible for preparation and presentation of
(b) beverage and culinary products under “KIST” brand
Financial Statements of the Group as per the provision of the Companies Act
(c) processed and fresh meat products under the brand names of “Goldi”, No. 07 of 2007 and SLFRS and LKAS.
“Cargills Finest” and “Sams”
(d) biscuits and confectionary under the brand name of ‘KIST’ The Board of Directors acknowledges their responsibility for Financial Statements
as set out in the Annual Report of the Board of Director’s, Statement of Directors’
3) operating a chain of “KFC” and “TGIF” restaurants under franchise agreements
Responsibility, and the certification on the Statement of Financial Position in the
4) distribution of international brands such as “Kodak”, “Kraft”, “Cadbury”, Annual Report.
“Bonlac”, “Oreo”, “Loacker“, “Toblerone”, “Bega”, “Langnese”, “Indomie” etc.
5) production, importation and distribution of agricultural seeds
2.3 Approval of Consolidated Financial Statements
6) poultry breeder farming and dairy farming
by the Board of Directors
7) real estate and property development
The Financial Statements of the Group for the year ended 31 March 2023
(including comparatives) were approved and authorised by the Board of
There were no significant changes in the nature of the principal activities of the
Directors for issue on 5 July 2023.
Group during the financial year under review.
2.4 Basis of Measurement 2.10.1 Judgements
The Financial Statements of the Group have been prepared on the historical cost basis except for the Information about judgements made in applying accounting policies that have the most significant
following items in the Statement of Financial Position: effects on the amounts recognised in the Financial Statements is included in the following Notes:
z Note 4 - Revenue recognition: whether revenue from made-to-order products is recognised
Category Item Basis of measurement Note No. over time or at a point in time;
z Note 13 - Lease term: whether the Group is reasonably certain to exercise extension options;
Assets Land and building Cost/revaluation 12 z Note 16.2 - Equity-accounted investees: whether the Group has significant influence over an
Investment properties Fair value 14 investee; and
Equity investments at FVOCI Fair value 16.3.1
Debt investments at FVTPL Fair value 16.3.2 2.10.2 Assumption
Liabilities Employee benefit liability Present value of the defined benefit obligation 28 Information about assumptions and estimation uncertainties at 31 March 2023 that have a significant
Employee share option reserve Fair value 24.1 risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next
financial year is included in the following Notes:
209
2.5 Presentation of Financial Statements z Note 28 - Measurement of defined benefit obligations: key actuarial assumptions;
Note 12 and 14 - Determination of fair value of investment property and property plant and Cargills
The assets and liabilities of the Group in the Statement of Financial Position are grouped by nature. No z
(Ceylon)
adjustments have been made for inflationary factors affecting the Financial Statements. equipment: key valuation assumptions; PLC
z Note 15 - Impairment test of intangible assets and goodwill: key assumptions underlying Annual
Report
recoverable amounts; and
2.6 Offsetting 2022/23
z Note 33 - Recognition and measurement of provisions and contingencies: key assumptions

Financial assets and financial liabilities are offset, and the net amount reported in the Statement of
about the likelihood and magnitude of an outflow of resources
Financial Position only when there is a legally enforceable right to offset the recognised amounts
and there is an intention to settle on a net basis, or to realise the assets and settle the liability
simultaneously. Income and expenses are not offset in the Statement of Profit or Loss and Other 2.11 Going Concern
Comprehensive Income unless required or permitted by any accounting standard or interpretation, and
The Group’s management has made an assessment of its ability to continue as a Going Concern and is
as specifically disclosed in the Accounting Policies of the Group.
satisfied that it has the resources to continue in business for the foreseeable future. The management
has also assessed the prevailing macroeconomic conditions in the country and the appropriateness
2.7 Functional and Presentation Currency of the use of the going concern basis for the Group. Furthermore, management is not aware of any
material uncertainties that may cast significant doubt upon the Group’s ability to continue as a Going
The Financial Statements of the Group are presented in Sri Lankan Rupees (Rs.), which is the Group’s
Concern. Therefore, the Financial Statements continue to be prepared on the Going Concern basis.
functional and presentation currency.
All financial information has been rounded to the nearest thousands, unless otherwise indicated as 2.12 Changes in Significant Accounting Policies
permitted by the Sri Lanka Accounting Standard - LKAS 01 on “Presentation of Financial Statements”.
There were no changes in Accounting Policies for the year ended 31 March 2023.
Notes to the Financial Statements

2.8 Materiality and Aggregation Further, a number of new standards were effective from 1 April 2022, but they do not have a material
effect on the Group’s Financial Statements.
Each material class of similar items is presented as a group in the Financial Statements. Items of a
dissimilar nature or function are presented separately unless they are immaterial as permitted by the
The Group has consistently applied the Accounting Policies to all periods presented in these Financial
Sri Lanka Accounting Standard – LKAS 01 on “Presentation of Financial Statements”.
Statements.
2.9 Comparative Information

3. Significant Accounting Policies
Comparative information is reclassified wherever necessary to conform with the current year’s presentation.
3.1 Basis of Consolidation
2.10 Use of Judgements and Estimates The Financial Statements comprise of Financial Statements of the Company, its subsidiaries and its
In preparing these Financial Statements, management has made judgements and estimates that affect equity accounted investees for the year ended 31 March 2023. Financial Statements of the Company’s
the application of the Group’s Accounting Policies and the reported amounts of assets, liabilities, subsidiaries and associates are prepared for the same reporting year using consistent Accounting
income and expenses. Actual results may differ from these estimates. Policies.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are
recognised prospectively.
3.1.1 Business Combination and Goodwill 3.1.4 Loss of Control
The Group accounts for business combinations using the acquisition method when the acquired set When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the
of activities and assets meets the definition of a business and control is transferred to the Group. In subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is
determining whether a particular set of activities and assets is a business, the Group assesses whether recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value
the set of assets and activities acquired includes, at a minimum, an input and substantive process and when control is lost.
whether the acquired set has the ability to produce outputs.
The Group has an option to apply a “concentration test” that permits a simplified assessment of 3.1.5 Interest in Equity-accounted Investees
whether an acquired set of activities and assets is not a business. The optional concentration test The Group’s interest in equity-accounted investees comprise interests in associates. Associates are
is met if substantially all of the fair value of the gross assets acquired is concentrated in a single those entities in which the Group has significant influence, but not control or joint control, over the
identifiable asset or group of similar identifiable assets. financial and operating policies.
Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost Interest in associates are accounted for using the equity method in the Consolidated Financial
of the business combination over the Group’s interest in the net amount of the identifiable assets, Statements. They are initially recognised at cost, which includes transaction costs. Subsequent to
210 liabilities and contingent liabilities acquired. initial recognition, the Consolidated Financial Statements include the Group’s share of profit or loss
and OCI of equity accounted investees, until the date on which significant influence ceases. Interest in
Cargills Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. associates are stated at cost, less impairment in the Separate Financial Statements.
(Ceylon)
PLC Goodwill is reviewed for impairment annually, or more frequently, if events or changes in circumstances
Annual indicate that the carrying value may be impaired. For the purpose of impairment testing, goodwill 3.1.6 Transactions Eliminated on Consolidation
Report
2022/23 acquired in a business combination, from the acquisition date, is allocated to each of the Group’s Intra-group balances and transactions, and any unrealised income and expenses arising from intra-
Cash–Generating Units (CGUs) or group of CGUs, which are expected to benefit from the synergies group transactions, are eliminated. Unrealised gains arising from transactions with equity accounted
of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to investees are eliminated against the investment to the extent of the Group’s interest in the investee.
those units. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there
is no evidence of impairment.
Where goodwill forms part of a CGU (or group of CGUs) and part of the operation within that unit is
disposed of, the goodwill associated with the operation disposed of is included in the carrying amount
of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed 3.1.7 Common Control Transactions
of in this circumstance is measured based on the relative values of the operation disposed of and the All common control transactions are accounted using book value accounting in both Consolidated
portion of the CGU retained. and Separate Financial Statements. This is on the basis that the entities are part of a larger economic
group, and that the figures from that larger group are the relevant ones. Accordingly,
the net assets of the combining entities are consolidated using the existing book values.
3.1.2 Subsidiaries z
z no amount is recognised as goodwill which arises as a result of difference between the

Subsidiaries are entities controlled by the Group. The Group “controls” an entity when it is exposed to,
consideration and net assets acquired.
or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. The Financial Statements of subsidiaries are included in the z in applying book value accounting, no entries are recognised in profit or loss; instead, the result of
Consolidated Financial Statements from the date on which control commences until the date on which the transaction is recognised in equity as arising from a transaction with shareholders.
control ceases. Investment in subsidiaries are stated at cost, less impairment in the Separate Financial
Statements.
3.2 Foreign Currency Transactions and Balances
All foreign currency transactions are translated into the functional currency of the Group which is
3.1.3 Non-controlling Interests Sri Lankan Rupees (Rs.) at the spot exchange rates at the dates of the transactions.
For each business combination, the Group elects to measure any non-controlling interests in the
acquiree either: at fair value; or at proportionate share of the acquiree’s identifiable net assets, which Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated
are generally at fair value. to the functional currency at the spot exchange rate at the reporting date. The foreign currency gain
or loss on monetary items is the difference between amortised cost in the functional currency at the
Acquisition of non-controlling interests are accounted for as transactions with owners in their capacity beginning of the year adjusted for effective interest and payments during the year and the amortised
as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to cost in foreign currency translated at the spot exchange rate at the reporting date.
non-controlling interests are based on a proportionate amount of the net assets of the subsidiary.
Non-monetary assets and liabilities denominated in foreign currencies are translated into functional
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for currency at spot exchange rate at the reporting date. Non-monetary assets and liabilities that are
as equity transactions. measured at fair value in a foreign currency are translated into functional currency at the spot exchange
rate when the fair value was determined. Non-monetary items that are measured based on historical cost
in a foreign currency are translated at the spot exchange rate at the date of transaction. Foreign currency
differences are generally recognised in profit or loss and presented within net finance cost.
3.3 Financial Instruments Financial Assets - Business Model Assessment
The Group makes an assessment of the objective of the business model in which a financial asset is
3.3.1 Recognition and Initial Measurement
held at a portfolio level because this best reflects the way the business is managed, and information is
Trade receivables and debt securities issued are initially recognised when they are originated. All other provided to management. The information considered includes:
financial assets and financial liabilities are initially recognised when the Group becomes a party to the
z the stated policies and objectives for the portfolio and the operation of those policies in practice.
contractual provisions of the instrument.
These include whether management’s strategy focuses on earning contractual interest income,
maintaining a particular interest rate profile, matching the duration of the financial assets to the
Financial asset (unless it is a trade receivable without a significant financing component) or financial
duration of any related liabilities or expected cash outflows or realising cash flows through the sale
liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are
of the assets;
directly attributable to its acquisition or issue. A trade receivable without a significant financing
component is initially measured at the transaction price. z how the performance of the portfolio is evaluated and reported to the Group’s management;
z the risks that affect the performance of the business model (and the financial assets held within
that business model) and how those risks are managed;
3.3.2 Classification and Subsequent Measurement
z how managers of the business are compensated - e.g. whether compensation is based on the fair
Financial Assets
value of the assets managed or the contractual cash flows collected; and 211
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI - debt
z the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such
investment; FVOCI - equity investment; or FVTPL. Cargills
sales and expectation about future sales activity.
(Ceylon)
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes PLC
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not Annual
its business model for managing financial assets, in which case all affected financial assets are
considered sales for this purpose, consistent with the Group’s continuing recognition of the assets. Report
reclassified on the first day of the first reporting period following the change in the business model. 2022/23
Financial assets that are held for trading or are managed and whose performance is evaluated on
A financial asset is measured at amortised cost if it meets both of the following conditions, and is not
a fair value basis are measured at FVTPL.
designated at FVTPL:
z it is held within a business model whose objective is to hold assets to collect contractual cash
flows; and Financial Assets – Assessment whether Contractual Cash Flows are Solely Payments of
Principal and Interest
z its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. For the purpose of this assessment, “principal” is defined as the fair value of the financial asset on
initial recognition. “Interest” is defined as consideration for the time value of money and for the credit
The Group’s financial assets classified under amortised cost includes trade and other receivables, risk associated with the principal amount outstanding during a particular period of time and for other
amounts due from related companies and cash and cash equivalents. basic lending risks and costs. (e.g. liquidity risk and administrative costs), as well as a profit margin.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not In assessing whether the contractual cash flows are solely payments of principal and interest, the
designated at FVTPL: Group considers the contractual terms of the instrument. This includes assessing whether the financial
asset contains contractual cash flows such that it would not meet this condition. In marking this
z it is held within a business model whose objective is achieved by both collecting contractual cash assessment, the Group considers:
flows and selling financial assets; and

z contingent events that would change the amount or timing of cash flows;
z its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. z terms that may adjust the contractual coupon rate, including variable-rate features;
z prepayment and extension features; and
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably z terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).
elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an
investment-by-investment basis. A prepayment feature is consistent with the solely payments of principal and interest criterion if the
prepayment amount substantially represents unpaid amounts of principal and interest on the principal
All financial assets not classified as measured at amortised cost or FVOCI as described above are amount outstanding, which may include reasonable additional compensation for early termination of
measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may the contract. Additionally, for a financial asset acquired at a discount or premium to its contractual
irrevocably designate a financial asset that otherwise meets the requirements to be measured at par amount, a feature that permits or requires prepayment at an amount that substantially represents
amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting the contractual par amount plus accrued (but unpaid) contractual interest (which may also include
mismatch that would otherwise arise. reasonable additional compensation for early termination) is treated as consistent with this criterion if
the fair value of the prepayment feature is insignificant at initial recognition.
Financial Assets - Subsequent Measurement and Gains and Losses Financial Liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or
Financial assets at These assets are subsequently measured at fair value. Net gains and losses, cancelled or expire. The Group derecognises a financial liability when its terms are modified and the
FVTPL including any interest or dividend income, are recognised in profit or loss. cash flows of the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
Financial assets at These assets are subsequently measured at amortised cost using the effective
amortised cost interest method. The amortised cost is reduced by impairment losses. Interest On derecognition of a financial liability, the difference between the carrying amount extinguished and
income, foreign exchange gains and losses and impairment are recognised in the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised
profit or loss. Any gain or loss on derecognition is recognised in profit or loss. in profit or loss.
Debt investments These assets are subsequently measured at fair value. Interest income calculated
at FVOCI using the effective interest method, foreign exchange gains and losses and 3.3.4 Offsetting
impairment are recognised in profit or loss. Other net gains and losses are Financial assets and financial liabilities are offset, and the net amount presented in the Statement of
recognised in OCI. On derecognition, gains and losses accumulated in OCI are Financial Position when, and only when, the Group currently has a legally enforceable right to set off
reclassified to profit or loss. the amounts and it intends either to settle them on a net basis or to realise the asset and settle the
212 liability simultaneously.
Equity investments These assets are subsequently measured at fair value. Dividends are recognised
Cargills
(Ceylon)
at FVOCI as income in profit or loss unless the dividend clearly represents a recovery of
PLC part of the cost of the investment. Other net gains and losses are recognised in 3.3.5 Impairment of Financial Assets
Annual OCI and are never reclassified to profit or loss. The Group uses simplified approach to measuring expected credit losses which uses a lifetime
Report
2022/23 expected loss allowance for all trade and other receivables.
Financial Liabilities - Classification, Subsequent Measurement and Gains and Losses
When determining whether the credit risk of a financial asset has increased significantly since initial
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is recognition and when estimating ECLs, the Group considers reasonable and supportable information
classified at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such that is relevant and available without undue cost or effort. This includes both quantitative and
on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and qualitative information and analysis, based on the Group’s historical experience and informed credit
losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are assessment and including forward-looking information.
subsequently measured at amortised cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is
also recognised in profit or loss. Credit-impaired Financial Assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost and
Financial liabilities measured at amortised cost include interest bearing loans and borrowings, trade debt securities at FVOCI are credit-impaired. A financial asset is ‘credit impaired’ when one or more
and other payables and amounts due to related companies. events that have a detrimental impact on the estimated future cash flows of the financial asset have
occurred.
3.3.3 Derecognition Evidence that a financial asset is credit-impaired includes the following observable data:
Financial Asset z significant financial difficulty of the borrower or issuer;
The Group derecognises a financial asset when the contractual rights to the cash flows from the z a breach of contract such as a default or being more than 90 days past due;
financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards of ownership of the financial asset are transferred in z the restructuring of a loan or advance by the Group on terms that the Group would not consider
which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and otherwise; or
it does not retain control of the financial asset. z it is probable that the borrower will enter bankruptcy or any other financial reorganisation.

The Group enters into transactions whereby it transfers assets recognised in its Statement of Financial
Position but retains either all or substantially all of the risks and rewards of the transferred assets. In
these cases, the transferred assets are not derecognised.
3.4 Impairment of Non-financial Assets 3.6.3 Defined Benefit Plan
At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The
inventories and deferred tax assets) to determine whether there is any indication of impairment. If any liability recognised in the Statement of Financial Position in respect of the defined benefit plan is the
such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for present value of defined benefit obligation as at the reporting date. The defined benefit obligation
impairment. is calculated annually by independent actuaries using Projected Unit Credit Method (PUC) as
recommended by LKAS 19 - “Employees Benefits”.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less
costs to sell. Value in use is based on the estimated future cash flows, discounted to their present The assumptions based on which the results of the valuation were determined are included in Note 29
value using a pre-tax discount rate that reflects current market assessments of the time value of to the Financial Statements.
money and the risks specific to the asset or CGU. In determining fair value less costs to sell, an
appropriate valuation model is used. The liability is not externally funded.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable The Group recognises all actuarial gains and losses arising from defined benefit plan in Other
amount. Comprehensive Income and expenses related to defined benefit plan as administrative expenses in
profit or loss. 213
Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other Provision has been made for retirement gratuities from the first year of service for all employees in Cargills
assets in the CGU on a pro rata basis. conformity with LKAS 19. However, under the payment of Gratuity Act No. 12 of 1983, the liability to an (Ceylon)
employee arises only on completion of 5 years of continued service. PLC
Annual
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is Report
reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit 2022/23
that would have been determined, net of depreciation or amortisation, if no impairment loss had been that relates to past service or the gain or loss on curtailment is recognised immediately in profit or
recognised. loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the
settlement occurs.
3.5 Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, cash at bank and call deposits with maturities of
3.7 Dividends Payable
three months or less from the acquisition date that are subject to an insignificant risk of changes in Dividends on ordinary shares are recognised as a liability and deducted from equity when they are
their fair value. recommended by and declared by the Board of Directors and approved by the shareholders. Interim
dividends are deducted from equity when they are declared and no longer at the discretion of
Cash and cash equivalents are carried at amortised cost in the Statement of Financial Position. the Group.
3.6 Employee Benefits 3.8 Borrowings

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer
3.6.1 Defined Contribution Plans - Cargills Employees’ Provident Fund and settlement of the liability for at least 12 months after the reporting date.
Employees’ Trust Fund

Defined Contribution Plan is a post-employment benefit plan under which an entity pays fixed 3.9 Leases
contributions into a separate entity and will have no legal or constructive obligation to pay any further
The Group assesses at the inception of a contract, whether a contract is, or contains, a lease. A
amounts. Obligations for contributions to Cargills Employees’ Provident Fund and Employees’ Trust
contract is, or contains, a lease if the contract conveys the right to control the use of an identified
Fund covering all employees are recognised as an expense in Profit or Loss, as incurred.
asset for a period of time in exchange for consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Group uses the definition of a lease in SLFRS 16.
3.6.2 Share-based Payment Arrangements
The policy is applied to contracts entered on or after 1 April 2020.
The grant-date fair value of equity-settled share-based payment arrangements granted to employees
is generally recognised as an expense, with a corresponding increase in equity, over the vesting period
of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for
which the related service and non-market performance conditions are expected to be met, such that
the amount ultimately recognised is based on the number of awards that meet the related service and
non-market performance conditions at the vesting date. For share-based payment awards with non-
vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such
conditions and there is no true-up for differences between expected and actual outcomes.
3.9.1 As a Lessee Short-term Leases and Leases of Low-Value Assets
At commencement or on modification of a contract that contains a lease component, the Group The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value
allocates the consideration in the contract to each lease component on the basis of its relative stand- assets and short-term leases. The Group recognises the lease payments associated with these leases
alone prices. However, for the leases of property the Group has elected not to separate non-lease as an expense on a straight-line basis over the lease term.
components and account for the lease and non-lease components as a single lease component.
COVID-19-related Rent Concessions
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability The Group has applied COVID-19- Related Rent Concessions - Amendment to SLFRS 16. The Group
adjusted for any lease payments made at or before the commencement date, plus any initial direct applies the practical expedient allowing it not to assess whether eligible rent concessions that are
costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the a direct consequence of the COVID-19 pandemic are lease modifications. The Group applies the
underlying asset or the site on which it is located, less any lease incentives received. practical expedient consistently to contracts with similar characteristics and in similar circumstances.
For rent concessions in leases to which the Group chooses not to apply the practical expedient,
The right-of-use asset is subsequently depreciated using the straight-line method from the or that do not qualify for the practical expedient, the Group assesses whether there is a lease
commencement date to the end of the lease term, unless the lease transfers ownership of the modification.
214 underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset
reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be The Group negotiated rent concessions with its landlords for some of its leases as a result of
depreciated over the useful life of the underlying asset, which is determined on the same basis the severe impact of the COVID-19 pandemic during the year ended 31 March 2022. The Group
Cargills
(Ceylon) as those of property and equipment. In addition, the right-of-use asset is periodically reduced by applied the practical expedient for COVID-19-related rent concessions consistently to eligible rent
PLC impairment losses, if any, and adjusted for certain remeasurements of the lease liability. concessions relating to the relevant leases.
Annual
Report The amount recognised in profit or loss for the reporting period to reflect changes in lease payments
2022/23 The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the interest rate implicit in the lease or, if that rate arising from rent concessions to which the Group has applied the practical expedient for COVID-19-
cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its related rent concessions is Nil (2022 – Rs. 114.7 Mn.).
incremental borrowing rate as the discount rate.
3.9.2 As a Lessor
The Group determines its incremental borrowing rate by obtaining interest rates from various external
financing sources and makes certain adjustments to reflect the terms of the lease and type of the At inception or on modification of a contract that contains a lease component, the Group allocates
asset leased. the consideration in the contract to each lease component on the basis of their relative stand-alone
prices.
Lease payments included in the measurement of the lease liability comprise the following:
When the Group acts as a lessor, it determines at lease inception Whether each lease is a finance
z fixed payments, including in-substance fixed payments; lease or an operating lease.
z variable lease payments that depend on an index or a rate, initially measured using the index or
rate as at the commencement date; To classify each lease, the Group makes an overall assessment of whether the lease transfers
z amounts expected to be payable under a residual value guarantee; and substantially all of the risk and rewards incidental to ownership of the underlying asset. If this is the
case, then the lease is a finance lease; if not then it is an operating lease. As part of this assessment,
z the exercise price under a purchase option that the Group is reasonably certain to exercise, lease
the Group considers certain indicators such as whether the lease is for the major part of the
payments in an optional renewal period if the Group is reasonably certain to exercise an extension
economic useful life of the asset.
option, and penalties for early termination of a lease unless the Group is reasonably certain not to
terminate early.
When the Group is an intermediate lessor, it accounts for its interest in the head lease and the sub-
lease separately. It assesses the lease classification of sub-lease with reference to the right-of-use
The lease liability is measured at amortised cost using the effective interest method. It is remeasured
asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-
when there is a change in future lease payments arising from a change in an index or rate, if there
term lease to which the Group applies the exemption described above, then it classifies sub-lease as
is a change in the Group’s estimate of the amount expected to be payable under a residual value
an operating lease.
guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or
termination option or if there is a revised in-substance fixed lease payment.
The Group recognises lease payments received under operating leases as rental income on a straight-
line basis over the lease term as part of “other income“.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-
use asset has been reduced to zero.

3.10 Provisions 3.12.2 Deferred Tax
Provisions are recognised in the Statement of Financial Position when the Group has a present Deferred tax is recognised in respect of temporary differences between the carrying amounts of
obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
resources embodying economic benefits will be required to settle the obligation and a reliable Deferred tax is not recognised for temporary differences arising on initial recognition of goodwill, the
estimate can be made of the amount of the obligation in accordance with the Sri Lanka Accounting initial recognition of assets or liabilities in a transaction that is not a business combination and that
Standard - LKAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’. The amount recognised affects neither accounting nor taxable profit, and the differences relating to investments in subsidiaries
is the best estimate of the consideration required to settle the present obligation at the reporting date, and jointly controlled entities to the extent that they probably will not reverse in the foreseeable future.
taking into account the risks and uncertainties surrounding the obligation at that date.
Temporary differences in relation to a right-of-use asset and a lease liability for a specific lease are
regarded as a net package (the lease) for the purpose of recognising deferred tax.
3.11 Borrowing Costs
As per Sri Lanka Accounting Standard - LKAS 23 “Borrowing Costs”, the Group capitalises borrowing Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
costs that are directly attributable to the acquisition, construction or production of a qualifying asset when they reverse, based on the laws that have been enacted or substantively enacted by the
as part of the cost of the asset. A qualifying asset is an asset which takes a substantial period of time reporting date.
to get ready for its intended use or sale. Other borrowing costs are recognised in profit or loss in the 215
period in which they occur. A deferred tax asset is recognised for unused tax losses and deductible temporary differences, to the
extent that it is probable that future taxable profits will be available against which they can be utilised. Cargills
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no (Ceylon)
3.12 Income Tax Expense longer probable that the related tax benefit will be realised. PLC
Income tax expense comprises of current and deferred tax. The income tax expense is recognised in Annual
Report
the Statement of Profit or Loss except to the extent that it relates to the items recognised directly in Deferred tax assets and liabilities recognised by individual companies within the Group are disclosed 2022/23
the Statement of Other Comprehensive Income or Statement of Changes in Equity, in which case it is separately as assets and liabilities in the Group’s Statement of Financial Position and are not offset
recognised directly in the respective statements. against each other.
The Group has determined that interest and penalties related to income taxes, including uncertain tax Withholding tax on the Intra-group dividends are recognised as a tax expense in the Statement of
treatments, do not meet the definition of income taxes, and therefore accounted for them under Profit or Loss.
LKAS 37 “Provisions, Contingent Liabilities and Contingent Assets”.
3.13 Statement of Cash Flows

3.12.1 Current Tax The Statement of Cash Flows has been prepared by using the “Indirect Method” of preparing cash
Current tax is the expected tax payable on the taxable income or loss for the year, using tax rates flows in accordance with the Sri Lanka Accounting Standard - LKAS 7 “Statement of Cash Flows”,
enacted or substantively enacted on the reporting date, and any adjustment to tax payable in respect whereby operating activities, investing activities and financing activities are separately recognised.
of previous years.
Cash and Cash Equivalents comprise of short-term, highly liquid investments that are readily
The amount of current tax payable is the best estimate of the tax amount expected to be paid that convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Cash
reflects uncertainty related to income taxes, if any. and Cash Equivalents as referred to in the Statement of Cash Flows are comprised of those items as
explained in Note 25.

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 provisions of the Inland Revenue
Act No. 24 of 2017 and subsequent amendments thereto.
3.14 Standards Issued but not yet Effective
A number of new standards are effective for annual periods beginning after 1 April 2023 and earlier
application is permitted; however, the Group has not early adopted the new or amended standards in
preparing these Financial Statements.
The following amended standards are not expected to have a significant impact on the Group’s
z Classification of liabilities as current or non-current (Amendments to LKAS 1)
Definition of accounting estimates (Amendments to LKAS 8)
z
z Deferred tax related to assets and liabilities arising from a single transaction
(Amendments to LKAS 12)
z Disclosure of accounting policies (Amendments to LKAS 1)
4. Revenue 6. Other Income
Accounting Policy Accounting Policy
Revenue Recognition - Sale of goods Dividend is recognised when the Group’s right to receive the payment is established.
Revenue is recognised upon satisfaction of a performance obligation. Revenue from sale Gains or losses arising from the disposal of property, plant and equipment and other
of goods is recognised when the control of goods have been transferred to the buyers, non-current assets, including investments, are accounted for in profit or loss, after
usually on delivery of the goods. deducting the carrying amount of such assets from the net sales proceeds on disposal.
Income from scrap sales is recognised when the control of goods have been transferred to
the buyer, usually on delivery of the goods.
GROUP COMPANY Rental income is recognised on an accrual basis.
For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Income from service and merchandising income are recognised on completion of a
performance obligation at a point in time.
Gross revenue 212,199,314 143,048,152 41,051 33,494
216 Revenue related taxes (16,581,415) (6,356,159) (4,989) (2,481)
195,617,899 136,691,993 36,062 31,013 GROUP COMPANY
Cargills For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
(Ceylon)
PLC
The Group primarily has three business segments namely, Food Retailing, Food and Beverage
Manufacturing and Distribution, Restaurant and Real Estate. Segmental information are disclosed in
Annual Dividend income
Report Note 31.
2022/23 - Related companies
(Note 35.3) – – 2,522,809 1,665,644
Group Segment Net Revenue Company Net Revenue
- Other (Note 16.3.1) 1,520 438 1,520 438
Rs. Bn. Rs. Mn.
Rental income 268,852 215,324 313,962 289,771
150 40 Gain on disposal of property,
plant and equipment 1,497 4,278 590 –
Income from services 27,355 27,976 1,751,093 1,429,719
120 32
Merchandising income 1,758,272 1,678,761 – –
Amortisation of deferred
90 24 income - capital grant
(Note 27) 11,482 11,481 –
Sundry income 258,139 228,731 131,262 78,361
60 16 2,327,117 2,166,989 4,721,236 3,463,933
30 8 7. Net Finance cost

Accounting Policy
0 0
A B C A B C
2023
2022
Interest income is recognised in the statement of profit or loss and other comprehensive
2023 2022 income as it accrues and is calculated by using the effective interest rate. Interest expense
A – Retail is recognised when they accrue.
B – Food and beverage manufacturing and distribution Foreign currency gains and losses are reported on a net basis.
C – Restaurant The Group’s finance income and finance cost includes:
z interest income;
5. Cost of Sales z interest expense;
Cost of sales of the Company and the Group includes direct operating costs. z bank charges; and
z foreign exchange gain/(loss)
GROUP COMPANY GROUP COMPANY
For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
7.1 Finance Income 8.1 Staff Costs

Salaries, wages and other costs 9,165,352 8,002,185 620,213 611,668
Interest income 785,684 243,658 821,138 116,805
Employee benefits (Note 28.2) 376,815 243,197 137,994 85,131
Foreign exchange gain 55,615 – – –
841,299 243,658 821,138 116,805 Defined contribution plan cost-
PF and ETF 801,754 705,845 92,145 82,262
GROUP COMPANY 10,343,921 8,951,227 850,352 779,061
For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Number of employees as at 31 March 11,033 9,485 1,950 1,716
7.2 Finance Cost 9. Income Tax Expense

Interest on short-term loans 3,036,522 674,489 1,084,606 162,831 Accounting Policy
Interest on bank overdrafts 596,449 76,039 64,897 14,654
217
Interest on other loans and Current Tax
bank charges 945,291 555,292 407,079 205,159 Current tax assets and liabilities for the current and prior years are measured at the amount Cargills
Interest on staff security expected to be recovered from or paid to the taxation authorities. The tax rates and tax (Ceylon)
laws used to compute the amount are those that are enacted or substantively enacted by PLC
deposits 5,976 1,429 – –
the reporting date. Accordingly, provision for taxation is based on the profit for the year Annual
Interest on lease liabilities Report
adjusted for taxation purposes in accordance with the provisions of the Inland Revenue Act
(Note 13.2) 1,994,425 1,675,739 52,488 56,461 2022/23
No. 24 of 2017, and subsequent amendments thereto.
Foreign exchange loss – 515,901 – –
6,578,663 3,498,889 1,609,070 439,105 IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments
Net finance cost 5,737,364 3,255,231 787,932 322,300 IFRIC - 23 addresses the accounting for income taxes when tax treatments involve
uncertainty that affects the application of LKAS 12 Income Taxes. It clarifies that an entity
must consider the probability that the tax authorities will accept a treatment retained in its
8. Profit Before Taxation income tax filings, assuming that they have full knowledge of all relevant information when
making their examination.
Profit before taxation on continuing operations is stated after charging/(reversing) all expenses/
(income) including the following: The Group applies significant judgement in identifying uncertainties over income tax
treatments. The Group assessed whether the Interpretation had an impact on its Financial
GROUP COMPANY
Statements. The Group is of the view that it is probable that its tax treatments will be
For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 accepted by the taxation authorities. Hence the interpretation did not have an impact on
the Financial Statements of the Group. The Group reviewed its income tax treatments and
Staff costs (Note 8.1) 10,343,921 8,951,227 850,352 779,061 concluded that no additional provisions are required.
Auditors' Remuneration Deferred Tax
- Audit and audit related services 15,805 12,825 1,127 990 Deferred tax is provided on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
2,445 2,445

- Non-audit services 1,627 1,627
Deferred tax liabilities are recognised for all taxable temporary differences, except:
Depreciation on property, plant and
equipment (Note 12) 3,915,735 3,452,959 68,076 69,231 z Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
Amortisation of intangible assets
affects neither the accounting profit nor taxable profit or loss; and
(Note 15) 125,562 104,518 19,050 893
z In respect of taxable temporary differences associated with investments in subsidiaries,
Provision for/(reversal of) impairment
where the timing of the reversal of the temporary differences can be controlled and it is
of trade and other receivables (29,500) 34,890 (373) 113
probable that the temporary differences will not reverse in the foreseeable future
Foreign exchange gain/(loss) (Note 7) 55,615 (515,901) – –
Deferred tax assets are recognised for all deductible temporary differences, carry forward
Provision for/(reversal of) impairment of unused tax credits and unused tax losses, to the extent that it is probable that taxable
of inventories 39,959 17,881 – – profit will be available against which the deductible temporary differences, and the carry
Directors' emoluments (Note 35.1) 531,570 461,784 139 124 forward of unused tax credits and unused tax losses can be utilised except:
Depreciation of right-of-use assets z Where the deferred tax asset relating to the deductible temporary difference arises from the
(Note 13.1) 1,900,153 1,731,551 72,560 83,691 initial recognition of an asset or liability in a transaction that is not a business combination and,
at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
z In respect of deductible temporary differences associated with investments in subsidiaries,
deferred tax assets are recognised only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilised.
9.1 Reconciliation between Current Tax Expense and Profit Before Taxation is
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced given below:
to the extent that it is no longer probable that sufficient taxable profit will be available to
GROUP COMPANY
allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets
are reassessed at each reporting date and are recognised to the extent that it has become For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply Profit before taxation 8,516,642 5,818,434 2,226,541 1,637,028
in the year when the asset is realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the reporting date. Aggregate disallowed expenses 10,118,102 8,325,102 984,598 435,537
Current tax and deferred tax relating to items recognised directly in equity are also Aggregate allowable expenses (7,969,117) (6,292,007) (282,004) (231,390)
recognised in equity and not in the Statement of Profit or Loss. Aggregate other income (1,297,662) (398,199) (3,451,637) (1,851,931)
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists Exempt profit (41,932) (23,971) – –
to set off current tax assets against current tax liabilities and the deferred taxes relate to
Adjusted business profit 9,326,033 7,429,359 (522,502) (10,756)
the same taxable entity and the same taxation authority.
Tax losses incurred 47,999 69,995 – –
218 Taxable income from other sources 883,016 166,421 822,299 116,805
GROUP COMPANY Adjusted profit (a) 10,257,048 7,665,775 299,797 106,049
Cargills
(Ceylon) For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
PLC Tax losses brought forward 1,213,165 1,544,798 – –
Annual Tax losses incurred by continuing
Report Income Tax Expense operations 47,999 69,995 – –
2022/23
Current tax expense Tax losses utilised (b) (287,823) (159,402) – –
(Note 9.1) 2,562,433 1,553,764 83,614 25,476
Adjustment on finalisation of liability (13,615) (242,226) – –
Irrecoverable ESC/WHT 1,378 401 – –
Tax losses carried forward 959,726 1,213,165 – –
Withholding tax on related
company dividend 369,265 261,872 330,484 67,230 Taxable income (a+b) 9,969,225 7,506,373 299,797 106,049
Overprovision of current tax Income tax @ 30% 1,505,162 – 58,311 –
of previous years (21,197) (323,000) – –
Income tax @ 24% 663,631 810,378 25,303 25,452
Deferred tax expense
(Note 9.2) 223,918 (213,323) 99,557 39,993 Income tax @ 18% 393,640 743,362 – –
3,135,797 1,279,714 513,655 132,699 Income tax @ 14% – 24 – 24
Current tax expense 2,562,433 1,553,764 83,614 25,476
(a) Surcharge Tax Act No. 14 of 2022 was enacted on 8 April 2022 and is applicable to the Group as
the collective taxable income of companies belonging to the Group, calculated in accordance 9.2 Deferred Tax Expense
with the provisions of the Inland Revenue Act No. 24 of 2017, exceeds Rs. 2,000 Mn., for the year GROUP COMPANY
of assessment 2020/21. The liability is computed at the rate of 25% on the taxable income of the For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
individual group companies, net of dividends from Subsidiaries and deemed to be an expenditure
in the Financial Statements in the year of assessment which commenced on 1 April 2020. Deferred Tax Expense Charge/(Reversal) Arising
Total Surcharge Tax of Rs. 1,068 Mn. has been recognised for the Group as an opening adjustment from Temporary Difference on:
to the 1 April 2022 retained earnings in the Statement of Changes in Equity as per the Addendum - Property, plant and equipment 732,774 (92,160) 16,748 12,643
to the Statement of Alternative Treatment (SoAT) issued by The Institute of Chartered Accountants - Revaluation surplus of freehold
of Sri Lanka. building 63,575 14,180 76,223 15,585
- Revaluation surplus of freehold
(b) The tax liability of companies have been computed at 18% and 24% up to 30 September 2022 and land 75,815 18,337 77,047 (3,460)
30% for the following six months (2022 – 14%, 18%, 24%).
- Equity settled share based
payments (14,754) 74,797 (9,419) 39,556
- Provisions (28,776) (10,649) – –
- Employee benefit liability (192,228) (42,074) (70,660) (11,990)

- Capital grants 1,527 2,067 – –
- Tax losses carried forward (16,827) (13,302) – –
- ROU assets and lease liabilities (397,187) (164,519) 9,618 (12,341)
223,918 (213,323) 99,557 39,993
Deferred tax has been computed taking into consideration the tax rates effective from 1 October 2022 10. Earnings Per Share (EPS)
at 30%. The deferred tax effect on undistributed reserves of subsidiaries has not been recognised
since the parent can control the timing of the reversal of these temporary differences. Accounting Policy
9.2.1 Impact due to Tax Rate Change Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders
of the Group/Company by the weighted average number of ordinary shares outstanding
GROUP COMPANY during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
2023 2022 2023 2022 ordinary shareholders and the weighted average number of ordinary shares outstanding for
the effects of all dilutive potential ordinary shares.
Tax charge on rate change 355,307 – 179,196 –
Tax charge/(reversal) of
temporary differences (131,389) (213,323) (79,639) 39,993 10.1 Basic Earnings Per Share
Deferred tax charge/
GROUP COMPANY
(reversal during the year 223,918 (213,323) 99,557 39,993
2023 2022 2023 2022 219
9.3 Temporary differences associated with subsidiary companies, Cargills Food Services (Pvt) Limited,
Profit attributable to equity Cargills
Cargills Quality Confectioneries (Pvt) Limited, Cargills Distributors (Pvt) Limited, Kotmale Milk Products (Ceylon)
Limited, and Kotmale Milk Foods Limited, for which deferred tax assets have not been recognised, are shareholders of the parent (Rs. ’000) 5,366,006 4,543,044 1,712,886 1,504,329 PLC
as follows: Weighted average number of Annual
ordinary shares (Refer Note 10.1.1) 257,677,731 257,677,731 257,677,731 257,677,731 Report
2022/23
2023 2022 Basic earnings per share (Rs.) 20.82 17.63 6.65 5.84
As at 31 March Temporary Tax effect Temporary Tax effect
Difference on Temporary Difference on Temporary
Difference Difference 10.1.1 Weighted Average Number of Ordinary Shares
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
GROUP COMPANY
2023 2022 2023 2022
Deductible Temporary
Differences
Issued ordinary shares as at 1 April 257,677,731 257,677,731 257,677,731 257,677,731
Tax losses 885,109 265,533 1,149,726 191,703
Exercise of share options – – – –
885,109 265,533 1,149,726 191,703
Weighted average number of
A deferred tax has not been recognised in respect of tax losses of the above companies as it is not ordinary shares as at 31 March 257,677,731 257,677,731 257,677,731 257,677,731
probable that sufficient future taxable profits will be available against which the Group can use the
benefit there from. 10.2 Diluted Earnings Per Share
There was no dilution of ordinary shares outstanding at any time during the year. Therefore, diluted
earnings per share is the same as basic earnings per share as shown in Note 10.1.

11. Dividend Per Share
GROUP COMPANY
Rs. Rs. ’000 2023 Rs. Rs. ’000 2022 Rs. Rs. ’000 2023 Rs. Rs. ’000 2022
Dividends for the Year

Final dividend for prior year 5.00 1,288,389 4.10 1,056,479 5.00 1,288,389 4.10 1,056,479
First interim dividend 3.50 901,872 2.00 515,355 3.50 901,872 2.00 515,355
8.50 2,190,261 6.10 1,571,834 8.50 2,190,261 6.10 1,571,834
A final dividend of Rs. 5.00 per share (Rs. 1,288.39 Mn.) was paid on 18 August 2022 for the year ended 31 March 2022. First interim dividend of Rs. 3.50 per share (Rs. 901.87 Mn.) was paid on 8 December 2022
for the year ended 31 March 2023.
A second interim dividend of Rs. 8.50 has been declared and paid for the year ended 31 March 2023 and has not been recognised as at the reporting date in accordance with LKAS 10 - “Events after the
Reporting Period”.
12. Property Plant And Equipment
Accounting Policy
Basis of Recognition Capital Work-In-Progress

Property, plant and equipment is recognised if it is probable that future economic benefits These are expenses of a capital nature directly incurred in the construction of buildings,
associated with the asset will flow to the Group and cost of the asset can be measured major plant and machinery and system development, awaiting capitalisation. These are stated
reliably. in the Statement of Financial Position at cost. Capital assets which have been completed
during the year and put to use have been transferred to property, plant and equipment.
Basis of Measurement
An item of property, plant and equipment that qualifies for recognition as an asset is initially Derecognition
measured at its cost. Cost includes expenditure that is directly attributable to the acquisition Property, plant and equipment are derecognised on disposal or when no future economic
of the asset and cost incurred subsequently to add to or replace a part of it. The cost of self- benefits are expected from their use. Any gain or loss arising on derecognition of an asset
constructed assets include; (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is recognised in “Other income” in the Statement of Profit or Loss in the year the
220 z cost of material and direct labour
asset is derecognised.
z any other costs directly attributable to bringing the asset to a working condition for its
Cargills intended use Depreciation
(Ceylon)
PLC z cost of dismantling and removing the items and restoring at the site on which they are located, Depreciation is recognised in Statement of Profit or Loss on a straight–line basis over the
Annual and estimated useful lives of each component of an item of Property, plant and equipment
Report
z capitalised borrowing costs. since this method most closely reflects the expected pattern of consumption of the future
2022/23
economic benefits embodied in the asset. Land is not depreciated.
Purchased software that is integral to the functionality of the related equipment is capitalised
as a part of computer equipment. The estimated useful lives are as follows;
When major components of an item of property, plant and equipment have different useful Class of asset % per annum Period
lives, they are accounted for as separate items of property, plant and equipment.
Cost Model Buildings 2 50 years

Plant and equipment are stated at cost less accumulated depreciation and any accumulated Improvement of leasehold properties 10 – 25 4 - 10 years
impairment loss. Motor vehicles 25 4 years
Revaluation Model IT equipment and software 20 – 33.3 3 - 5 years
Land and buildings are measured at fair value less accumulated depreciation on buildings Office and other equipment 20 5 years
and impairment charged subsequent to the date of the revaluation. Where land and Air condition and refrigeration 10 – 20 5 - 10 years
buildings are subsequently revalued, any increase in the carrying amount is recognised in Plant and machinery 10 – 20 5 - 10 years
other comprehensive income and accumulated in equity in the asset revaluation reserve.
Decreases that offset previous increases of the same asset are charged against the Furniture and fittings 20 5 years
revaluation reserves in the Statement of Changes in Equity, any excess being charged to
the Statement of Profit or Loss. Revaluation of freehold land and buildings are carried out The above rates are consistently used by all the Group entities. The depreciation rates are
by professionally qualified independent valuers every three years. The Group revalued all its determined separately for each significant part of an item of property, plant and equipment
freehold land and buildings as at 31 March 2021. and is depreciated from the date on which it is available for use, i.e. when it is in the location
and condition necessary for it to be capable of operating in the manner intended by the
Subsequent Costs management. Depreciation of an asset ceases at the earlier of the date that the asset is
The cost of replacing a component of an item of property, plant and equipment is recognised classified as held for sale or the date that the asset is de-recognised. Depreciation methods,
in the carrying amount of the item if it is probable that the future economic benefits useful lives and residual values are reassessed at each reporting date and adjusted as
embodied within the component will flow to the Group and its cost can be measured reliably. appropriate.
The cost of day to day servicing of property, plant and equipment are charged to the profit
or loss as incurred. Impairment
The Management has assessed the potential impairment loss of property, plant and
Repairs and Maintenance equipment as at 31 March 2023. Based on the assessment, the Group does not foresee any
Repairs and maintenance are charged to the Statement of Profit or Loss during the financial indications of Impairment as at the reporting date.
period in which they are incurred. The cost of major renovations is included in the carrying
amount of the assets when it is probable that future economic benefits in excess of the most
recently assessed standard of performance of the existing assets will flow to the Company
and Group and the renovation replaces an identifiable part of the asset. Major renovations
are depreciated during the remaining useful life of the related asset.
Freehold Freehold Expenditure Plant, Motor Capital Total
Land Building Incurred on Machinery Vehicles WIP 2023
Leasehold and Others
Buildings
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Group
Cost/revaluation
As at 1 April 11,872,877 3,744,889 13,792,796 26,472,990 2,264,119 7,228,238 65,375,909
Additions 118,076 53,020 300,046 777,111 69,931 9,513,858 10,832,042
Transfers 3,629 3,538,736 1,975,618 3,887,527 415,552 (9,821,062) –
Disposals – – – (9,501) (10,769) – (20,270)
As at 31 March 2023 11,994,582 7,336,645 16,068,460 31,128,127 2,738,833 6,921,034 76,187,681
Accumulated Depreciation and Impairment 221

As at 1 April – 187,189 6,647,137 17,055,839 1,473,539 – 25,363,704
Cargills
Depreciation – 200,213 1,045,112 2,329,702 340,708 – 3,915,735 (Ceylon)
Disposals – – – (4,101) (10,639) – (14,740) PLC
Annual
As at 31 March 2023 – 387,402 7,692,249 19,381,440 1,803,608 – 29,264,699 Report
2022/23
Carrying value as at 31 March 2023 11,994,582 6,949,243 8,376,211 11,746,687 935,225 6,921,034 46,922,982
Freehold Freehold Expenditure Plant, Motor Capital Total

Land Building Incurred on Machinery Vehicles WIP 2022
Buildings
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Group
Cost/revaluation
As at 1 April 11,926,647 3,569,411 12,010,529 24,300,977 1,870,341 4,342,460 58,020,365
Additions 5,624 265,338 1,782,267 2,185,282 424,177 6,542,260 11,204,948
Due to acquisition of subsidiary – – – 2,014 2,143 – 4,157
Transfers – – – – – (3,656,482) (3,656,482)
Disposals (5,478) – – (15,283) (32,542) – (53,303)

Transfer to investment property (53,916) (89,860) – – – – (143,776)
As at 31 March 2022 11,872,877 3,744,889 13,792,796 26,472,990 2,264,119 7,228,238 65,375,909
Accumulated Depreciation and Impairment

As at 1 April – – 5,787,412 14,941,115 1,224,637 – 21,953,164
Depreciation – 187,189 859,725 2,126,809 279,236 – 3,452,959
Due to acquisition of subsidiary – – – 2,014 2,143 – 4,157
Disposals – – – (14,099) (32,477) – (46,576)
As at 31 March 2022 – 187,189 6,647,137 17,055,839 1,473,539 – 25,363,704
Carrying value as at 31 March 2022 11,872,877 3,557,700 7,145,659 9,417,151 790,580 7,228,238 40,012,205
Freehold Land Freehold Expenditure Plant, Motor Capital Total
Building Incurred on Machinery Vehicles WIP 2023
Buildings
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Company
Cost/revaluation
As at 1 April 2,655,939 440,282 230,564 430,315 138,194 33,887 3,929,181
Additions – – 13,395 58,499 – 3,787 75,681
Disposals – – – (6,146) – – (6,146)
As at 31 March 2023 2,655,939 440,282 243,959 482,668 138,194 37,674 3,998,716
222
Cargills As at 1 April – 10,365 23,013 297,949 138,194 – 469,521
(Ceylon)
PLC Depreciation – 10,367 16,072 41,637 – – 68,076
Annual Disposals – – – (828) – – (828)
Report
2022/23 As at 31 March 2023 – 20,732 39,085 338,758 138,194 – 536,769
Carrying value as at 31 March 2023 2,655,939 419,550 204,874 143,910 – 37,674 3,461,947
Freehold Land Freehold Expenditure Plant, Motor Capital Total

Building Incurred on Machinery Vehicles WIP 2022
Buildings
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Company
Cost/revaluation
As at 1 April 2,655,939 439,561 225,315 418,249 138,194 35,475 3,912,733
Additions – 721 5,249 26,654 – – 32,624
Transfers – – – – – (1,588) (1,588)
Disposals – – – (14,588) – – (14,588)
As at 31 March 2022 2,655,939 440,282 230,564 430,315 138,194 33,887 3,929,181

As at 1 April – – 5,876 258,439 138,194 – 402,509
Depreciation – 10,365 17,137 41,729 – – 69,231
Disposals – – – (2,219) – – (2,219)
As at 31 March 2022 – 10,365 23,013 297,949 138,194 – 469,521
Carrying value as at 31 March 2022 2,655,939 429,917 207,551 132,366 – 33,887 3,459,660
Group - PPE Company - PPE
Rs. Mn. Rs. Mn.
12,500 3,000
10,000 2,400
7,500 1,800
5,000 1,200
2,500 600 223

Cargills
0 0 (Ceylon)
A B C D E F A B C D E F A B C D E F A B C D E F PLC
2023 2022 2023 2022 Annual
Report
2022/23
A – Freehold land D – Plant, machinery and others A – Freehold land D – Plant, machinery and others
B – Freehold building E – Motor vehicle B – Freehold building E – Motor vehicle
C – Expenditure incurred on leasehold building F – Capital work-in-progress C – Expenditure incurred on leasehold building F – Capital work-in-progress
Expenditure incurred on leasehold buildings represent the cost incurred in setting up new outlets.
The details of assets mortgaged for banking facilities obtained, if any, have been given in Note 26.1 to the Financial Statements.
12.1 Revaluation of Freehold Land and Buildings

Fair value of Land and Building as at 31 March 2021 have been based on valuations carried out by Mr Tissa Weeratne (FIV), a member of the Institute of Valuers of Sri Lanka, with appropriate qualifications and
recent experience in the valuation of properties in the relevant locations. Mr Tissa Weeratne is not related to the Group.
In estimating the fair value of the properties, the highest and best use of the properties is their current use. The fair value measurement for all lands and buildings classified as property plant and equipment have
been categorised as level 3 fair value based on the inputs to the valuation techniques used. Details of the Group lands and buildings measured at fair value as at 31 March 2021 are as follows:

Location Type of Asset Method of Land Extent Building Number of Significant 2021 valuation
Valuation Area (sq.ft) Buildings Unobservable Inputs Rs. ’000
Colombo - 01 Land 140.75 Perches – – 2,655,939

Income approach Rental per square foot
Building – 124,215 1 439,561
Canal Row, Colombo - 01 Land 15.25 Perches – – 308,624
Building – 12,300 1 91,667
Staple Street - Colombo - 02 Land 81.5 Perches – – 867,975
Market approach Market value per perch
Building – 20,970 2 55,400
Dematagoda Land 84.32 Perches – – 124,654
Building – 71,956 1 244,165
Cargills Square - Jaffna Building Income approach – 99,164 1 Rental per square foot 413,356
Kandy Land 87.96 Perches – – 1,373,623
Building – 25,174 1 52,777
Maharagama Land 145.3 Perches – – 594,135
Building – 15,827 1 89,565
Location Type of Asset Method of Land Extent Building Number of Significant 2021 valuation
Valuation Area (sq.ft) Buildings Unobservable Inputs Rs. ’000
Nuwara Eliya Land 56.5 Perches – – 295,737

Building – 9,617 1 11,363
Mattakkuliya (111) Land 330 Perches – – 740,304
Building – 80,967 2 107,696
Kohuwala Land 28.65 Perches – – 158,987
Building – 6,225 1 14,013
Mattakkuliya (141) Land 287.96 Perches – – 514,895
Building – 44,469 4 74,905
Gampaha Land 82.6 Perches – – 158,916
Building – 39,565 1 264,860
224 Moratuwa Land
Income approach
78.6 Perches – –
Rental per square foot
319,028
Building – 7,475 1 66,737
Cargills Ingiriya (Lot A, C, D, B1) Land 26 Acres – – 248,338
(Ceylon) Market approach Market value per perch
PLC Building – 1,300 1 520
Annual Park Road Building Income approach – 4,610 1 Rental per square foot 64,800
Report
2022/23
Negombo - Kaluwarippuwa Land Market approach 28.8 Acres – – Market value per perch 760,750
Ja-Ela - Ma Eliya Land 4 Acres – – 164,000
Building – 7,600 1 5,700
Mattakuliya Land 1.3 Acres – – 427,740
Building – 17,881 1 46,338
Ja-Ela - Ganemulla Land 5.03 Acres – – 360,155
Building – 41,833 1 126,360
Katana Land 11.3 Acres – – 354,540
Building – 76,059 1 239,700
Kelaniya Land 1.5 Acres – – 243,750
Building – 55,770 2 251,250
Katoolaya Estate, Thawalatenne Land 4 Acres – – 15,800
Building – 19,961 1 51,200
Mirigama, Baduragoda Land Market approach 100.2 Perches – – Market value per perch 20,040
Mirigama, Baduragoda Land 38.51 Perches – – 8,672
Building – 1,476 1 4,428
Mulleriyawa Land 1.7 Acres – – 150,000

Building – 35,528 3 178,717
Bogahawatta Land 1 Acres – – 48,000
Building – 33,221 6 437,750
Hatton Land 17.5 Acres – – 62,950
Building – 14,569 4 41,472
Bandarawela Land 85.2 Perches – – 415,350
Building – 6,345 1 188,111
Katubedda Land 1.15 Acres – – 533,745
Building – 3,500 1 7,000
Total 15,496,058
Refer note 38.2.1 for details on valuation techniques used.

12.2 If land and buildings were measured using the cost model, the amounts would have been as Information about leases for which the Group is lessee is presented below:
follows:
13.1 Right-of-use Assets
Land Building
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 GROUP COMPANY
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Group
Balance as at 1 April 16,825,758 14,334,399 1,089,171 169,268
Cost 6,484,971 6,363,266 6,596,186 3,004,430
Additions 6,307,584 4,392,228 – 1,014,501
Accumulated depreciation – – (995,902) (795,689)
Net book value 6,484,971 6,363,266 5,600,284 2,208,741 Recognition of ROU asset on
modification of payment – 482 – –
Company Depreciation (1,900,153) (1,731,551) (72,560) (83,691)
Cost 1,813 1,813 117,855 117,855 Disposal of ROU assets – (169,800) – (10,907)
Accumulated depreciation – – (30,561) (20,194) Classification of SLFRS 16 (591,931) – – –
Net book value 1,813 1,813 87,294 97,661 Balance as at 31 March 20,641,258 16,825,758 1,016,611 1,089,171 225
12.3 Movement in Revaluation Reserve 13.2 Lease Liability Cargills

(Ceylon)
GROUP COMPANY PLC
GROUP COMPANY
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Annual
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Report
2022/23
Opening balance 7,013,019 7,017,804 420,431 420,431 Balance as at 1 April 19,641,457 16,493,154 1,025,528 50,356
Revaluation surplus – – – – Additions 6,307,584 4,366,801 – 1,014,501
Deferred tax impact on revaluation (363,683) – (102,001) – Recognition of lease liability
on modification of payment – 482 – –
Disposal of revalued asset – (4,785) – –
Closing balance 6,649,336 7,013,019 318,430 420,431 Interest expense 1,994,425 1,675,739 52,488 56,461
Disposal of lease liability – (173,194) – (14,301)
Depreciation amounting to Rs. 3,234.59 Mn. (2022 - Rs. 2,793.66 Mn.) and Rs. 681.13 Mn. (2022 -
Payments (3,097,721) (2,606,812) (80,575) (81,489)
Rs. 659.30 Mn.) has been charged respectively to the cost of sales and, administration and
distribution of the Group. The total depreciation amounting to Rs. 68.08 Mn. (2022 - Rs. 69.23 Mn.) Negative lease payments
is included in the administration expenses of the Company. due to rent concessions – (114,713) – –
Lease advance 29,126 – – –
Capital work-in-progress consists of expenditure incurred on projects which are yet to be
completed as at the reporting date. Classification of SLFRS 16 (615,795) – – –
Balance as at 31 March 24,259,076 19,641,457 997,441 1,025,528
Fully depreciated assets of the Group as at the year end is Rs. 9,812.71 Mn. (2022 - Rs. 7,384.19 Mn.)
and that of the Company is Rs. 376.35 Mn. (2022 - Rs. 331.17 M.n).

Lease Liabilities included
in the Statement of
13. Leases Financial Position as at 31
March
The Group’s and Company’s leases consist of leasehold land and building. The leases are depreciated
over 2 years – 50 years. Current 1,337,820 1,139,378 34,744 22,825
Non-current 22,921,256 18,502,079 962,697 1,002,703
24,259,076 19,641,457 997,441 1,025,528
Maturity Analysis -
Contractual Undiscounted
Cash Flows
Less than one year 3,266,820 2,967,491 93,147 79,729
One to five years 12,466,745 11,428,431 506,558 384,757
More than five years 27,868,687 24,530,626 908,937 1,122,283
Total undiscounted
liabilities as at 31 March 43,602,252 38,926,548 1,508,642 1,586,769
13.3 Amounts Recognised in Profit or Loss
GROUP COMPANY Subsequent Transfers to/from Investment Property
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Transfers are made to investment property when, and only when, there is a change in use,
evidenced by the end of owner occupation, commencement of an operating lease to
another party or completion of construction or development.
Depreciation of right-of-use
Transfers are made from investment property when, and only when, there is a change
assets 1,900,153 1,731,551 72,560 83,691
in use, evidenced by commencement of owner occupation or commencement of
Interest expense on lease development with a view to sell.
liabilities 1,994,425 1,675,739 52,488 56,461
For a transfer from investment property to owner occupied property or inventories, the
Negative lease payments deemed cost of property for subsequent accounting is its fair value at the date of change
due to rent concessions – (114,713) – – in use. If the property occupied by the Company as an owner occupied property becomes
3,894,578 3,292,577 125,048 140,152 an investment property, the Company, accounts for such property in accordance with the
policy stated under property, plant and equipment up to the date of change in use.
13.4 Amounts Recognised in Statement of Cash Flows Any difference at the date of the change in use between the carrying amount of the
226 GROUP COMPANY
property and its fair value is recognised as a revaluation of property, plant and equipment
and is not transferred to profit or loss at the date of transfer and at subsequent disposal,
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Cargills any existing revaluation surplus that was recognised under revaluation model to the
(Ceylon) property will be transferred to retained earnings.
PLC
Total cash outflow for leases, When the Company completes the construction or development of a self-constructed
Annual net of concessions (81,489)
Report
(3,097,721) (2,606,812) (80,575) investment property, any difference between the fair value of the property at that date and
2022/23 (3,097,721) (2,606,812) (80,575) (81,489) its previous carrying amount is recognised in the profit or loss.
Determining Fair Value

Impairment External and independent valuers, having appropriate recognised professional qualifications
The Group does not foresee any indications of impairment of right of use assets due to the economic and recent experience in the location and category of property being valued, value the
uncertainties, since the Group is operating under the business continuity plan as per the Group risk investment property portfolio annually.
management strategy, to the extent possible, whilst strictly adhering to and supporting government
directives. The Group does not anticipate discontinuation of any right of use assets as at the year end. Investment Property Leased within the Group
Any property leased out to the parent or a subsidiary is considered as owner-occupied
from the perspective of the Group and adjustments are made for consolidation purposes.
14. Investment property
Accounting Policy
Investment property is a property held either to earn rental income, for capital appreciation GROUP COMPANY
or for both, but not for sale in the ordinary course of business, use in the production or
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
supply of goods or services or for administrative purposes.
Investment properties are initially recognised at cost. Subsequent to initial recognition
the investment properties are stated at fair values, which reflect market conditions at the As at 1 April 7,039,884 2,712,313 3,170,928 4,259,566
reporting date. Gains or losses arising from changes in fair value are included in Profit or Additions 1,903 1,100,632 17,394 454
Loss in the year in which they arise. Due to acquisition of
Where Group companies occupy a significant portion of the investment property of subsidiary – 2,953,700 – –
a subsidiary, such portion of investment properties are treated as property, plant and Reclassification from PPE – 143,776 – –
equipment at group level, and accounted for as per LKAS 16 - Property, Plant and
Equipment. Disposals – – – (1,158,800)
Changes in fair value during
Derecognition the year 300,779 129,463 105,581 69,043
Investment properties are derecognised when either they have been disposed of or when
7,342,566 7,039,884 3,293,903 3,170,263
the investment property is permanently withdrawn from use and no future economic
benefit is expected from its use. Any gains or losses on the retirement or disposal of an Capital work-in-progress
additions – 665
investment property are recognised in the profit or loss in the year of derecognition. – –
As at 31 March 7,342,566 7,039,884 3,293,903 3,170,928
In accordance with LKAS 40, fair value of the above Investment Properties were ascertained as at
31 March 2023 by Mr T Weeratne (FIV), a member of the Institute of Valuers of Sri Lanka, with
appropriate qualifications and recent experience in the valuation of properties in the relevant locations.
Mr Tissa Weeratne is not related to the Group.
Rental income earned from the investment properties by the Group and Company amounted to Rs. 57.75 Mn. (2022 - Rs. 42.23 Mn.) and Rs. 163.94 Mn. (2022 - Rs. 147.21 Mn.) respectively. Direct operating expenses
incurred on investment property by the Group and Company amounted to Rs. 31.42 Mn. (2022 - Rs. 18.77 Mn.) and Rs. 51.83 Mn. (2022 - Rs. 51.39 M.n). The fair value measurement for all the investment properties have
been categorised as level 3 fair value based on the inputs to the valuation techniques used. Details of the Group’s investment properties and information relating to their fair values as at 31 March 2023 are as follows:
GROUP COMPANY
Location Type Of Method Of Land Extent Building Area No. of Current/ 2023 fair value 2022 fair value 2023 fair value 2022 fair value
Asset Valuation (Sq.ft.) Buildings Proposed Use Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Canal Row - Colombo 01 Land 15.25 Perches – – 327,954 309,632

Income approach Rent – –
Building – 12,300 1 106,710 90,668
Braybrook Place Land 78.17 Perches – – 766,066 742,615 766,066 742,615
Market approach Undetermined use
Building – 5,146 1 1,600 1,615 1,600 1,615
Cargills Square - Jaffna Building Income approach Leasehold 99,164 1 Rent 637,271 639,554 1,056,835 1,060,620
Staple Street - Colombo 02 Land 81.5 Perches – – 961,700 896,500
Market approach Rent – – 227
Building – 20,970 2 60,600 57,400
Dematagoda Land 84.32 Perches – – 325,137 296,672 – Cargills
Income approach Rent – (Ceylon)
Building – 71,956 1 554,921 554,121 – PLC
Nittambuwa Land Market approach 112 Perches – – Undetermined use 166,750 151,750 – – Annual
Report
Boralesgamuwa Land 2.5 Acres – – 388,010 379,861 2022/23
Building – 23,168 4 73,945 67,139
Gampaha Land 82.6 Perches – – 71,244 62,112
Building – 43,115 1 131,846 110,372
Kandy Land 170 Perches – – 811,000 685,283 – –
Market approach To be developed
Building – 937 1 10 10 – –
Negombo Land 91 Perches – – 307,500 301,325 – –
Market approach To be developed
Building – 17,534 1 – 2,600 – –
Kandy Land Market approach 11.3 Perches – – To be developed 81,360 78,000 – –
Kotahena Land Market approach 199.8 Perches – – Development 1,568,430 1,528,500 – –
plans deferred
Boralesgamuwa Land 43 Acres – –
Market approach Undetermined use 1,200,000 1,200,000 – –
Building – 11,400 1
Piliyandala Land Market approach 114 Perches – – Undetermined use 112,100 102,600 – –

Commercial property - Piliyandala Land 154.9 Perches – – 109,003 97,063 – –
Income approach Rent
Building – 21,278 2 36,373 38,692 – –
7,342,566 7,039,884 3,281,465 3,159,050
Wellawatta (Preliminary expense) To be developed – – 12,438 11,878
7,342,566 7,039,884 3,293,903 3,170,928
Refer Note 38.2.1 for details on valuation techniques used.
15. Intangible Assets
Accounting Policy
Intangible Assets of consumption of future economic benefits embodied in the asset are accounted for by
The Group’s intangible assets include computer software, brand name, franchise fee and changing the amortisation period or method, as appropriate, and they are treated as changes
goodwill. in accounting estimates. The amortisation expense on intangible assets with finite lives is
recognised in profit or loss in the expense category consistent with the function of the
Basis of Recognition intangible asset.
An intangible asset is recognised only when its cost can be measured reliably and it is probable Amortisation is calculated using the straight–line method to write down the cost of intangible
that the expected future economic benefits that are attributable to it will flow to the Group in assets to their residual values over their estimated useful economic lives at the rates as
accordance with the Sri Lanka Accounting Standard - LKAS 38 ‘Intangible Assets’. specified below;
Intangible assets acquired separately are measured on initial recognition at cost. The cost Class of asset % per annum Period
of intangible assets acquired in a business combination is their fair value as at the date of
acquisition. Following initial recognition, intangible assets are stated in the Statement of
228 Financial Position at cost less accumulated amortisation and accumulated impairment losses, Computer software 25 4 years
if any. Franchise fee 10 10 years
Cargills
(Ceylon)
PLC
Subsequent Expenditure The unamortised balances of intangible assets with finite lives are reviewed for impairment
Subsequent expenditure on intangible assets is capitalised only when it increases the future annually and whenever there is an indication for impairment and recognised in profit or loss
Annual
Report economic benefits embodied in the specific asset to which it relates. All other expenditure is to the extent that they are no longer probable of being recovered from the expected future
2022/23 expensed as incurred. benefits.
Useful Economic Lives, Amortisation and Impairment Derecognition
The useful economic lives of intangible assets are assessed to be either finite or indefinite. Intangible assets are derecognised on disposal or when no future economic benefits are
Intangible assets with finite lives are amortised over the useful economic life. The amortisation expected from their use. Any gain or loss arising on derecognition of an asset (calculated as
period and the amortisation method for an intangible asset with a finite useful life are reviewed the difference between the net disposal proceeds and the carrying amount of the asset) is
at least at each reporting date. Changes in the expected useful life or the expected pattern recognised in profit or loss in the year the asset is derecognised.
Group Goodwill Franchisee Fee Software Brand Name Total

Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Cost
As at 1 April 529,767 529,767 302,732 297,227 791,692 643,466 661,865 661,865 2,286,056 2,132,325
Additions – – 161,991 5,505 106,869 146,642 – – 268,860 152,147

Due to acquisition of subsidiary – – – – – 1,584 – – – 1,584
As at 31 March 529,767 529,767 464,723 302,732 898,561 791,692 661,865 661,865 2,554,916 2,286,056
Amortisation/impairment
As at 1 April 138,978 138,978 213,865 190,723 493,798 410,838 – – 846,641 740,539
Amortisation – – 28,807 23,142 96,755 81,376 – – 125,562 104,518
Due to acquisition of subsidiary – – – – – 1,584 – – – 1,584
As at 31 March 138,978 138,978 242,672 213,865 590,553 493,798 – – 972,203 846,641
Carrying value as at 31 March 390,789 88,867 297,894 661,865 1,439,415

390,789 222,051 308,008 661,865 1,582,713

Company Software Total CGU’s below are disclosed for the material goodwill balances only.
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
CGU 1 - Cargills Quality Foods Limited

Cost
As at 1 April 214,931 153,917 214,931 153,917 The recoverable amount of this CGU was based on its value in use, determined by discounting the
Additions 102,786 61,014 102,786 61,014 future cash flows to be generated from the continuing use of the CGU.
As at 31 March 317,717 214,931 317,717 214,931 The key assumptions used in the estimation of value in use were as follows:
Amortisation/impairment 2023 2022
As at 1 April 152,760 151,867 152,760 151,867
Amortisation for the year 19,050 893 19,050 893 Description
As at 31 March 171,810 152,760 171,810 152,760 Discount rate 21.93% 17.52%
Terminal value growth rate 3% 3%
Carrying value as at 31 March 145,907 62,171 145,907 62,171
Budgeted EBITDA growth rate (average of next five years) 10% 10% 229
Group - Intangible assets Company - Intangible assets The discount rate was based on the weighted average cost of capital (WACC) for the companies, Cargills
determined by considering the cost of equity and cost of debt proportionately weighted. (Ceylon)
Rs. Mn. Rs. Mn. PLC
Annual
750 150 Five years of cash flows were included in the discounted cash flow model. A long-term nominal growth Report
rate into perpetuity has been determined as 3% based on management’s internal assessment. 2022/23
600 120 Budgeted EBITDA was based on expectations of future outcomes taking into account past experience,
adjusted for anticipated revenue growth. Revenue growth was projected taking into account the
average growth levels experienced over the past five years and the estimated sales volume and price
450 90 growth for the next five years.
A reasonably possible change in any of the key assumptions on which the management has based
300 60
its determination of the CGU’s recoverable amount would not cause the CGU’s carrying amount to
exceed its recoverable amount.
150 30
CGU 2 - Cargills Agro Development Company (Private) Limited
0 0 The recoverable amount of this CGU was based on its value in use, determined by discounting the
A B C D A B C D 2023 2022 future cash flows to be generated from the continuing use of the CGU.
2023 2022 Software

The key assumptions used in the estimation of value in use were as follows:
A – Goodwill C – Software
B – Franchisee fee D – Brand name 2023 2022
Impairment Testing for CGUs Containing Goodwill Description

For the purposes of impairment testing, goodwill has been allocated to the Group’s CGU (operating
Discount rate 13.59% 10.88%
divisions) as follows:
GROUP COMPANY Budgeted EBITDA growth rate (average of next five years) 8% 5%
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
The discount rate was based on the weighted average cost of capital (WACC) for the companies,
determined by considering the cost of equity and cost of debt proportionately weighted.
Cargills Quality Foods Limited 246,203 246,203 – –
Cargills Agro Development Five years of cash flows were included in the discounted cash flow model. A long-term nominal growth
Company (Private) Limited 133,196 133,196 – –
rate into perpetuity has been determined as 3% based on management’s internal assessment.
CPC Lanka Limited 8,839 8,839 – –
Cargills Food Processors Budgeted EBITDA was based on expectations of future outcomes taking into account past experience,
(Private) Limited 2,532 2,532 – – adjusted for anticipated revenue growth. Revenue growth was projected taking into account the
Cargills Distributors (Private) average growth levels experienced over the past five years and the estimated sales volume and price
Limited 19 19 – – growth for the next five years.
390,789 390,789 – –
A reasonably possible change in any of the key assumptions Revenue growth was projected taking into account the average growth levels experienced over the past five years and the estimated sales
on which the management has based its determination of volume and price growth for the next five years.
the CGU’s recoverable amount would not cause the CGU’s
carrying amount to exceed its recoverable amount. A reasonably possible change in any of the key assumptions on which the management has based its determination of the CGU’s recoverable
amount would not cause the CGU’s carrying amount to exceed its recoverable amount.
Goodwill as at the reporting date has been tested for
impairment and no impairment in carrying value has been Amortisation of intangible assets amounting to Rs. 70.67 Mn. (2022 - Rs. 57.44 Mn.) have been included in cost of sales and Rs. 54.9 Mn.
recognised during the year. (2022 - Rs. 47.08 Mn.) in administrative expenses of the Group. Amortisation of intangible assets amounting to Rs. 19.05 Mn. (2022 - Rs. 0.89 Mn.)
have been included in administrative expenses of the Company.
Brand Name
The Rs. 661.87 Mn. represents the brand value recognised
on the acquisition of Kotmale Holdings PLC. 16. Investments
16.1 Investments in Subsidiaries
Brand name has been tested for impairment and no
GROUP COMPANY
impairment has been recognised as at reporting date.
230 Management is of the view that the brand name has an
No of shares Holding % Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
indefinite useful life and accordingly no amortisation is

Cargills
(Ceylon)
charged . However, in accordance with LKAS 38 - “Intangible Cargills Foods Company (Private) Limited 48,255,426 100 – – 1,167,947 1,167,947
PLC Assets”, any intangible asset which has an indefinite useful Cargills Quality Foods Limited 4,860,293 100 – – 1,193,453 1,193,453
Annual life is subject to annual impairment test which is to be
Report
Dawson Office Complex (Private) Limited 1,000 100 – – 100 100
carried out in accordance with LKAS 36 - “Impairment of
2022/23
Assets” and the useful life of the intangible asset that is The Empire Investments Company (Private)
Limited (Note 16.1.2.3) 269,322,944 53.43 – – 2,980,813 2,980,813
not being amortised is reviewed each period to determine
whether events and circumstances continue to support an Cargills Food Processors (Private) Limited 5,700,002 100 – – 61,500 61,500
indefinite useful life assessment for this asset. Kotmale Holdings PLC 54,315 0.17 – – 3,437 3,437
Frederick North Hotel Company Limited
The recoverable amount of this CGU was based on its (Note 16.1.2.4) – – – – – –
value in use, determined by discounting the future cash
Cargills Quality Dairies (Private) Limited 7,500,000 100 – – 75,000 75,000
flows to be generated from the continuing use of the CGU.
Millers Limited 30,000,000 100 – – 300,000 300,000
The key assumptions used in the estimation of value in use Cargills Agro Development Company
were as follows: (Private) Limited 1,460,002 100 – – 178,019 160,019
Cargills Enterprise Solutions (Pvt) Limited
2023 2022
(Stated Capital Rs. 10) 1 100 – – – –
– – 5,960,269 5,942,269
Description
Employee share option investment (Note 16.1.1) – – – 190,421
Discount rate 31.55% 15.52% – – 5,960,269 6,132,690

Budgeted EBITDA growth rate 16.1.1 Employee Share Option Investment
(average of next five years) 10% 10% COMPANY
Rs. ’000 2023 Rs. ’000 2022
The discount rate was based on the weighted average
cost of capital (WACC) for the companies, determined
by considering the cost of equity and cost of debt Cargills Foods Company (Private) Limited – 136,214
proportionately weighted. Kotmale Dairy Products (Private) Limited – 3,262
Cargills Food Processors (Private) Limited – 5,547
Five years of cash flows were included in the discounted
cash flow model. A long-term nominal growth rate Cargills Food Services (Private) Limited – 1,208
into perpetuity has been determined as 3% based on Cargills Quality Confectioneries (Private) Limited – 284
management’s internal assessment. Cargills Quality Dairies (Private) Limited – 11,102
Cargills Quality Foods Limited – 7,428
Budgeted EBITDA was based on expectations of future
Cargills Distributors (Private) Limited – 365
outcomes taking into account past experience, adjusted
for anticipated revenue growth of the Kotmale Brands. Millers Limited – 19,650
Cargills Agrifoods Limited – 5,361
– 190,421
GROUP
SRUCTURE
100% 100% 100% 100% 100% 100% 100% 100% 53.43% 53.43% 100% 100% 100% 100% 100% 100% 100% 100%
231
Cargills Foods Cargills Quality Dawson Office Cargills Quality The Empire Cargills Food Millers Limited Cargills Agro Cargills
Company (Private) Foods Limited Complex (Private) Dairies (Pvt) Ltd. Investments Processors Development Enterprise Cargills
Limited Limited Company (Pvt) (Private) Limited Company (Pvt) Solutions (Ceylon)
PLC
Limited Limited (Pvt) Limited
Annual
Report
2022/23
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Cargills Distributors Cargills Cargills Quality Cargills Frozen Cargills Food

(Private) Limited Agrifoods Ltd Confectionaries Products (Private) Services (Private)
(Private) Limited Limited Limited
99.34%
100% 100%
100% 53.43% 100% 53.43%
CPC (Lanka) Ltd.
Frederick North C T Properties
Hotel Company Limited
Limited

0.17% 99.51%
Kotmale
Holding PLC
100% 99.51% 100% 99.51% 100% 53.43% 100% 53.43% 100% 53.43% 100% 53.43%
Kotmale Milk Foods Kotmale Products C T Property C T Properties C T Real Estate C T Properties G S
Holding % by the Immediate Parent
Limited Limited Management Lakeside (Private) (Private) Limited (Private) Limited
Company (Private) Limited
CCP’s Effective Holding % Limited
CQD’s Direct Holding of KHP

100% 99.51% 100% 99.51%
CCP’s Direct Holding of KHP Kotmale Dairy Kotmale Milk
Products (Private) Products Limited
Limited
16.1.2 Common Control Transactions 16.3.1 Equity Investments at FVOCI – “Non-current”
Cargills (Ceylon) PLC and subsidiaries presently have operations primarily in the following sectors: GROUP COMPANY
z Food retailing l Restaurants As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
z Food and beverage manufacturing, and distribution l Real estate
Quoted Equity
Significant growth and expansion in these sectors necessitated a reorganisation of the sectors and
Investments
their sub-sectors into separate growth driven units employing focused management and prudent
resource allocation. Accordingly the following common control transactions had taken place during the Lanka IOC PLC 6,160 3,800 6,160 3,800
year 31 March 2022 based on the Board approval dated 25 October 2021. Sierra Cables PLC 341 258 67 56
Aitken Spence PLC 19,715 14,846 19,715 14,846
16.1.2.1 Cargills (Ceylon) PLC purchased C T Land Development PLC’s investment in C T Properties 26,216 18,904 25,942 18,702
Limited for Rs. 75 Mn. and thereafter disposed its total investment in Associate (C T Properties
Increase in fair value of
Limited) to The Empire Investments Company (Private) Limited under a common control transaction investments 43,726 7,311 43,519 7,239
amounting to Rs. 434 Mn. (Group - Rs. 429 Mn.) resulting in a gain of Rs. 12 Mn. (Group Rs. 5 Mn.). 69,942 26,215 69,461 25,941
16.1.2.2 The Empire Investments Company (Private) Limited acquired CT Properties Limited’s shares
232 from Cargills Ceylon PLC and CT Holdings PLC. The Group designated the above as equity investments at FVOCI because the Group intends to hold
these investments for the long-term.
Cargills 16.1.2.3 The Empire Investments Company (Private) Limited issued new additional shares amounting to Rs. The market value of quoted equity investments of Group as at 31 March 2023, as quoted by the
(Ceylon)
PLC
4,905 Mn. which was invested by Cargills (Ceylon) PLC and C T Holdings PLC amounting to Colombo Stock Exchange amounted to Rs. 69.94 Mn. (2022 - Rs. 26.21 Mn.)
Annual
Rs. 2,205 Mn. and Rs. 2,700 Mn. resulting in Cargills (Ceylon) PLC’s shareholding in The Empire Investments
Report Company (Private) Limited falling to 53.43% from 100% which did not result in a loss of control. No disposals were made during the year.
2022/23
Dividend income recognised on quoted equity investments is as follows:
16.1.2.4 Cargills (Ceylon) PLC disposed its investment in subsidiary (Frederick North Hotel Company
Limited) to The Empire Investments Company (Private) Limited for Rs. 428 Mn. resulting in a gain of GROUP COMPANY
Rs. 117 Mn. Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
16.1.2.5 As a result of common control transactions, total investment in subsidiaries and associates Lanka IOC PLC 450 170 450 170
amounted to Rs. 2,815 Mn. at the Company level and Rs. 1,284 Mn. at the Group level.
Aitken Spence PLC 1,070 268 1,070 268
1,520 438 1,520 438
16.2 Investment in Equity Accounted Investees
GROUP COMPANY
Unquoted Equity Investments
16.3.2 Debt Investments Measured at Fair Value Through Profit or Loss
No of shares Holding % Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
(FVTPL) – “Non-current”
GROUP COMPANY
Cargills Bank
Limited 350,696,905 39.71 4,364,261 4,207,228 4,717,843 4,717,843 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
4,364,261 4,207,228 4,717,843 4,717,843
Debt investments measured
16.3 Other Financial Assets at Fair Value Through Profit

or Loss (FVTPL) 1,500,000 1,500,000 1,500,000 1,500,000
GROUP COMPANY
1,500,000 1,500,000 1,500,000 1,500,000
As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
The Company Invested in Fifteen Million (15,000,000) Basel III Additional Tier 1 Compliant Rated Unlisted
Unsecured Subordinated Perpetual Convertible Debentures issued by Cargills Bank Limited, with a
Non-Current
conversion at the option of the debenture holder and Non-Viability Conversion upon the occurrence
Equity investments at FVOCI of a trigger event at the par value of Sri Lankan Rupees One Hundred (LKR 100/-). The interest rate is
(Note 16.3.1) 69,942 26,215 69,461 25,941 based on the Weighted Average Twelve-Month Net Treasury Bill Rate + 2% p.a. The debenture holder has
Fair value through profit or loss the right to convert the debenture to ordinary shares of the Bank during the conversion period.
(Note 16.3.2 ) 1,500,000 1,500,000 1,500,000 1,500,000
1,569,942 1,526,215 1,569,461 1,525,941 The Interest is cumulative and will be paid only if the Bank has distributable profits. The Bank has
discretion at all times to cancel the interest payments. However the agreement does not stipulate
Current interest, on interest deferred/cancelled and therefore as the Investment does not meet the SPPI
Other non-equity investments criteria, it has been classified as FVTPL.
(Note 16.3.3) 119,667 1,016,556 – –
119,667 1,016,556 – –
16.3.3 Other Non-Equity Investments - Current 17. Prepayment on Leasehold Land and Building
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Call deposits/fixed deposit 119,667 1,016,556 – – Cost

119,667 1,016,556 – – As at 1 April 200,912 200,912 – –
Prepayments – – – –
16.4 Investment in Equity Accounted Investees As at 31 March 200,912 200,912 – –
GROUP Amortisation
Rs. ’000 2023 Rs. ’000 2022
As at 1 April – – – –
Amortisation – – – –
As at 1 April 4,207,228 4,727,183
As at 31 March – – – –
Acquisition (Note 16.1.2.1) – 75,530
Share of profit/(loss) 193,692 (114,181) Carrying value as at 31 March 200,912 200,912 – –
Share of other comprehensive income (36,660) (52,542) Non-current portion of the prepayment 200,912 200,912 – – 233
Disposal (Note 16.1.2.1) – (428,762)
Property Lease period Amount Cargills
As at 31 March 4,364,261 4,207,228 (Ceylon)
Rs. ’000
PLC
Annual
16.5 Summarised Financial Information of Associates Cargills Foods Company (Private) Limited Report
2022/23
GROUP Kolonnawa land 99 years 200,912
C T Properties Ltd Cargills Bank Limited
The prepayment relates to amounts paid in advance for lease contracts that are not finalised as of
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
31 March 2023.
Revenue/operating income – 4,776 2,817,202 1,773,997 18. Biological Assets

Operating expenses – (3,923) (2,369,427) (2,036,498) Accounting Policy
Finance expenses – (19,848) – –
Income tax expense – – 39,989 (14,626) Biological assets shall be qualified for recognition if the Group controls the assets as a
Profit/(loss) for the year – (18,995) 487,764 (277,127) result of past events and it is probable that future economic benefits associated with the
Other comprehensive assets will flow to the Group and fair value or cost of the asset can be measured reliably.
income/(expense) – – (92,320) (132,313) The Group measures Biological Assets at cost less any impairment losses.
Total comprehensive Consumable biological assets are those that are to be harvested as agricultural produce
income/(expense) – (18,995) 395,444 (409,440) or sold as biological assets. Livestock and day-old chicks have been identified as
Group’s share of profit/(loss) – (4,134) 193,692 (110,047) Consumable biological assets
Group's share of other Bearer biological assets are those other than Consumable biological assets. Bearer

comprehensive income – – (36,660) (52,542) biological assets are not agricultural produce but, rather, are self-regenerating. The Group
Group’s share of total has identified grandparent and parent birds as bearer biological assets.
comprehensive income/
(expense) – (4,134) 157,032 (162,589)
The Group determined that a fair value cannot be determined for the consumer biological assets as
GROUP quoted market prices were not available as at 31 March 2023 and other alternative measures of fair
C T Properties Limited Cargills Bank Limited value were deemed unreliable. No indicators for impairment were identified as at 31 March 2023.
GROUP COMPANY
Total assets – – 53,752,809 55,767,061
Total liabilities – – (44,032,504) (46,442,200)
Balance as at 1 April – – – –
Net assets – – 9,720,305 9,324,861
Additions during the year 64,168 – – –
Ownership interest – – 39.71% 39.71%
Sale of livestock during the year (6,614) – – –
Group's share of net assets – – 3,859,945 3,702,912
Balance as at 31 March 57,554 – – –
Goodwill – – 504,316 504,316
– – 4,364,261 4,207,228 Non-current 23,873 – – –
Current 33,681 – – –
57,554 – – –
The Group’s biological assets are exposed to the risk of damage from diseases, and other natural forces. The Group has extensive processes in place aimed at monitoring and mitigating those risks, including
regular health inspection, implementing disease control policies and procedures.
19. Deferred Tax Asset/liability

GROUP COMPANY
Assets Liabilities Assets Liabilities
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
As at 1 April 14,070 16,228 729,805 895,798 – – 287,150 238,754

Acquisition of subsidiary – – – 11,993 – – – –
Charge/(reversal) recognised in profit or loss 15,695 (2,261) 239,613 (215,584) – – 99,557 39,993
Charge/(reversal) recognised in OCI (1,936) 103 368,233 37,598 – – 97,444 8,403
As at 31 March 27,829 14,070 1,337,651 729,805 – – 484,151 287,150
234
Deferred tax asset/liability as at the year end is arising from
Cargills
temporary differences of:
(Ceylon)
PLC - Property, plant and equipment 12 2,106 1,970,019 1,227,828 – – 260,297 243,549
Annual
Report
- Revaluation surplus of freehold building – – 687,715 393,708 – – 232,287 132,036
2022/23 - Revaluation surplus of freehold land – – 502,472 263,460 – – 216,484 61,464
- Equity settled share based payment – – – 2,359 – – – 9,419
- Provisions 8,813 6,139 (91,341) (65,126) – – – –
- Employee benefit liability 1,304 740 (548,489) (363,214) – – (218,011) (142,794)
- Capital grants – – (1,348) (2,875) – – – –
- Carried forward tax losses 17,217 4,356 (22,266) (18,301) – – – –
- ROU assets and lease liabilities 483 729 (1,159,111) (708,034) – – (6,906) (16,524)
27,829 14,070 1,337,651 729,805 – – 484,151 287,150
20. Inventories
Accounting Policy
GROUP COMPANY
Inventories are valued at the lower of cost and net realisable value. Net realisable value As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
is the estimated selling price in the normal course of business less estimated cost of
realisation and/or cost of conversion from their existing state to saleable condition.
Raw and packing materials 4,141,347 2,482,262 – –
The cost of each category of inventory of the Group is determined on the following basis:
Work-in-progress 182,327 42,756 – –
Raw and packing materials - Actual cost on a First In First Out - (FIFO) basis
Finished goods 2,024,031 1,374,126 – –
Finished goods and work-in-progress - Directly attributable manufacturing cost
Merchandising stock-for-sale 15,272,507 10,212,031 7,646 13,162
Merchandising goods - Actual cost on a First In First Out - (FIFO) basis
Food and beverages -
Other inventories - Actual cost restaurant operations 381,641 126,125 – –
The Group makes provisions for inventory during its monthly and year end counts by Consumables 665,565 423,429 – –
identifying perishable, damaged and slow moving inventory with short shelf lives or
22,667,418 14,660,729 7,646 13,162
expiration dates or by identifying specific seasonal inventories that require provisions.
Provision for obsolete
inventories (171,086) (131,127) – –

22,496,332 14,529,602 7,646 13,162
Goods in transit 376,494 272,682 – –
22,872,826 14,802,284 7,646 13,162
Group Inventories Company Inventories 21.1 Loans and advances represents loans to employees and the movement during the year is as follows:
GROUP COMPANY
Rs. Bn. Rs. Mn.
17.50 15
As at 1 April 139,600 114,974 5,345 5,279

14.00 12 Loans granted 188,574 44,956 28,809 6,750
328,354 159,930 34,154 12,029
Repayments (39,852) (20,330) (21,610) (6,684)
10.50 9
As at 31 March 288,502 139,600 12,544 5,345
7.00 6
21.2 Tax Recoverable
This includes Social Security Contribution Levy, VAT recoverable, WHT recoverable and income tax
overpayments.
3.50 3 235
22. Amounts due from/to Related Companies
Cargills
0 0 GROUP COMPANY (Ceylon)
A B C D E F A B C D E F PLC
2023
2022
2023 2022 Annual
Report
2022/23
A – Raw and packing materials D – Merchandising stock-for-sale Amounts due from Subsidiaries
B – Work-in-progress E – Food and beverages – Cargills Foods Company (Private) Ltd. – – 28,673 –
C – Finished goods restaurant operations
Cargills Quality Foods Limited – – 4,229 2,159
F – Consumables
Cargills Food Processors (Private) Limited – – –
The details of inventories mortgaged for banking facilities obtained have been given in the Note 26.1 to Cargills Food Services (Private) Limited – – 287 75
the Financial Statements, if any. Cargills Agrifoods Limited – – 2,776 5,704
Cargills Quality Dairies (Private) Limited – – 3,685 2,668
21. Trade and Other Receivables CPC (Lanka) Limited – – 985 1,680
GROUP COMPANY Cargills Quality Confectioneries
As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 (Private) Limited – – 1,166 1,895
Kotmale Dairy Products (Private) Limited – – 1,244 4,779
Trade receivables 5,358,130 3,943,279 – – Kotmale Holdings PLC – – – –
Provision for impairment of Millers Limited – – – –
trade receivables (235,781) (265,281) – – Cargills Agro Development Company

5,122,349 3,677,998 – – (Private) Limited – – 2,510 359
Other prepayments and The Empire Investments Company

deposits 2,424,910 2,329,336 477,133 380,200 (Private) Limited – – 2,551,464 993,475
Frederick North Hotel Company Limited – – 224 6
Other receivables 1,227,083 843,832 136,677 61,010
Cargills Enterprise Solutions (Private) Ltd. – – 14,964 8,000
Loans and advances
(Note 21.1) 288,502 139,600 12,544 5,345 C T Properties Limited – – 1,068,920 982,539
Tax recoverable (Note 21.2) 788,244 447,319 57,368 57,253 – – 3,681,127 2,003,339
9,851,088 7,438,085 683,722 503,808 Amounts due from Holding Company
C T Holdings PLC 6,743 28,580 6,743 18,868
The details of trade receivable mortgaged for banking facilities obtained have been given in the 6,743 28,580 6,743 18,868
Note 26.1 to the Financial Statements, if any. Amounts due from Associate
Companies
Cargills Bank Limited 47,556 38,410 14,876 14,018
47,556 38,410 14,876 14,018
GROUP COMPANY Pursuant to the Employee Share Option Scheme of the Company approved by the Shareholders on
As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 29 June 2017, 456,688 options were exercised by employees during the period 1 April 2020 to
31 March 2021 and in respect of which 363,231 shares were issued during the period.
Amounts due from Other Related Companies
Ceylon Hotels Corporation PLC 347 379 – – The holders of ordinary shares are entitled to receive dividends as declared from time to time and
Ceylon Theatres (Private) Limited 95,230 74,551 68,304 63,700 are eligible for one vote per share at General Meetings of the Company.
C T Land Development PLC 140 231 – –
Consequent to this share issue the stated capital of the Company at the balance sheet date
Galle Face Hotel 1994 Ltd. 1,061 – –
amounted to Rs. 6,841 Mn. (2022 - Rs. 6,841 Mn.) comprising 257,677,731 ordinary (voting) shares
Galle Face Hotel Company Limited 563 494 – – (2022 - 257,677,731).
Kandy Hotels Company (1938) PLC 469 434 – –
The Cargo Boat Despatch Co. Ltd. 307 – – –
24. Reserves
United Hotels Company (Private) Ltd. 2,089 466 – –
Cargills Foundation 235,245 233,520 235,245 233,352
Accounting Policy
236 Albert A. Page Institute 1,689 – 1,689 –
Suisse Hotel Kandy (Pvt) Ltd. 229 – – – Equity Reserves
Cargills
(Ceylon)
337,369 310,075 305,238 297,052 The reserves recorded in equity on the Group’s Statement of Financial Position include;
PLC Total amount due from related companies 391,668 377,065 4,007,984 2,333,277 “Revaluation reserve” consists of net surplus resulting from the revaluation of property, plant
Annual and equipment.
Report Amounts due to Subsidiaries
2022/23 “FVOCI” reserve which comprises changes in fair value of equity investments at FVOCI.
Cargills Food Company (Private) Limited – – – 9,712
“Capital reserve” comprises share of capital reserve resulting from consolidation.
Cargills Food Processors (Private) Limited – – 1,211 2,084
“Employee share option reserve” consists of stock options granted to specified employees
Millers Limited – – 75 3,542
of Group and Company. ESOS offers the option holder the right to buy a certain amount of
C P C (Lanka) Limited – – – – Company shares at a predetermined price.
Kotmale Dairy Products (Private) Limited – – – –
Cargills Foods Services (Private) Limited – – – –
– – 1,286 15,338 GROUP COMPANY
Amounts due to Holding Company As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
C T Holdings PLC 6,150 1,738 – –
6,150 1,738 – – Capital Reserves
Amounts due to Other Related
Companies Revaluation reserve
(Note 12.3) 6,649,336 7,013,019 318,430 420,431
Unidil Packaging Limited – 2,834 – –
Capital reserve 7,928 7,928 – –
CT Land Development PLC – – – –
Employee share option
Ceylon Theatres (Private) Limited 257 – – – 72,482 72,482
reserve (Note 24.1) – –

257 2,834 – –
6,657,264 7,093,429 318,430 492,913
Total amount due to related companies 6,407 4,572 1,286 15,338
Revenue Reserve
23. Stated Capital FVOCI reserve 51,691 7,965 49,883 6,364
Accounting Policy 51,691 7,965 49,883 6,364
6,708,955 7,101,394 368,313 499,277
Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds.
24.1 Employee Share Option Reserve
24.1.1 Employee Share Option Scheme
An Employee Share Option Scheme (ESOS) proposed by the Directors of the Company for the
Number of shares Rs. ’000 2023 Number of shares Rs. ’000 2022 benefit of its employees and those of its subsidiaries (“Group’’) was approved by the shareholders
at an Extra Ordinary General Meeting held on 29 June 2017.
Balance as at 1 April 257,677,731 6,841,068 257,314,500 6,773,878
Exercise of share options – – 363,231 67,190
Balance as at 31 March 257,677,731 6,841,068 257,677,731 6,841,068
Under the terms of the ESOS, which are in compliance with the Listing Rules of the Colombo Stock Grant Date
Exchange, a maximum number of seven million six hundred seventy nine thousand nine hundred and As per “SLFRS 2 - Share-based Payments” the entity should recognise the value/cost of the share
ninety seven (7,679,997) ordinary voting shares could be issued which is equivalent to 3.0% of the options granted to employees through the ESOS scheme based on the Grant Date of the share
issued capital of the Company. The share options would be granted in three tranches which would options. The date of obtaining the shareholder approval for ESOS is recognised as the Grant date
constitute - for all 3 tranches of the ESOS scheme which is 29 June 2017.
(a) First tranche – 3,839,999 options constituting 1.50% of the issued shares of the Company at an
exercise price of Rs. 184.98;
24.1.2 Measurement of Fair Values
(b) Second tranche – 1,919,999 options constituting 0.75% of the issued shares of the Company at an
As required by SLFRS 2 on “Share–based payment”, the fair value of the ESOS was estimated at
exercise price of Rs. 172.33; and
the grant date using the Binomial Valuation Model taking into consideration various terms and
(c) Third tranche – 1,919,999 options constituting 0.75% of the issued shares of the Company at an conditions upon which the share options are granted.
exercise price of Rs. 211.40;
The inputs used in measurement of fair value at the grant date of ESOS were as follows:
Each of the aforesaid tranches would be subdivided in to sub tranches with different vesting periods
and exercise periods. Share options would be issued to employees who are eligible for the award of Tranches
the share options for a consideration that is equivalent to the volume weighted average price during Description of the Valuation Input Tranche 1 Tranche 2 Tranche 3 237
the period of thirty (30) market days immediately prior to the respective grant dates for each tranche.
Cargills
Expected dividend yield rate (%) 1.5 1.5 1.5 (Ceylon)
The key terms and conditions related to the grants under these tranches are as follows; all options are PLC
to be settled by the physical delivery of shares. Risk free rate (%) 10.73 10.73 10.73
Annual
Probability of share price increase (%) 80 80 80 Report
2022/23
Type of Number of Vesting Vesting Vesting Exercise Exercise Probability of share price decrease (%) 20 20 20
Tranche Options Condition Period Date Period Duration
Size of annual increase of share price (%) 18 18 18
Size of annual reduction in share price (%) 10 10 10
Tranche 1
Exercise price (Rs.) 184.98 172.33 211.4
Sub 3 months 30 1 October 2017 to 1 year and
Tranche 1 1,280,000 September 31 March 2019 6 months The probability of price movements of the Company share price has been arrived at by taking into
Remaining in 2017 consideration share price movements of the Company during the last five year period.
employment up
Sub 1,280,000 9 months 31 March 1 April 2018 to 2 years
until the vesting
Tranche 2 2018 31 March 2020
date. 24.1.3 Reconciliation of Outstanding Share Options
Sub 1,279,999 1 year and 31 March 1 April 2019 to 2 years
Tranche 3 9 months 2019 31 March 2021 The number and weighted-average exercise prices of share options under the ESOS scheme was
Tranche 2 as follows:
Sub 640,000 Remaining in 1 year and 31 July 2019 1 August 2019 to 8 months In thousands Number of *WAEP 2023 Number of *WAEP 2022
Tranche 1 employment up 4 months 31 March 2020 Options 2023 Rs. Options 2022 Rs.
Sub until the vesting 2 years 31 March 1 April 2020 to 1 year
640,000 date. And meeting

the performance Outstanding as at 1 April 640 211.40 1,920 198.38
Sub related conditions 3 years 31 March 1 April 2021 to 1 year
Tranche 3 639,999 2021 31 March 2022 Forfeited during the year (640) 211.40 (1,280) 191.87
relating to FY
2018/19. Outstanding as at 31 March – – 640 211.40
Tranche 3 Exercisable as at 31 March – – – –
Sub 640,000 Remaining in 1 year and 31 July 2020 1 August 2020 to 8 months
*WAEP - Weighted Average Exercise Price
Tranche 1 employment up 4 months 31 March 2021
Sub until the vesting 2 years 31 March 1 April 2021 to 1 year
640,000 date. And meeting Pursuant to the Employee Share Option Scheme of the Company approved by the Shareholders on
the performance 29 June 2017, 456,688 options were exercised by employees during the period 1 April 2020 to
Sub related conditions 3 years 31 March 1 April 2022 to 1 year 31 March 2021 and in respect of which 363,231 shares were issued during the period. All options have
Tranche 3 639,999 relating to FY 2022 31 March 2023 expired as at 31 March 2023.
2019/20.
Total share 7,679,997
options
The cost of Share Based Payments accounted in the Group’s Financial Statements for the year
amounted to Rs. Nil. (2022 - Nil)
25. Cash and Cash Equivalents 26 Interest Bearing Loans And Borrowings
As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Cash in hand and at bank 2,222,362 3,196,256 5,294 73,504 Current

Fixed deposits - Maturity period is Current portion of long-term loan 3,215,103 3,902,685 1,607,955 1,946,255
less than or equal to 3 months 2,619,054 347,843 2,639 – Short-term loans 18,617,798 6,877,486 5,165,000 1,205,000
Cash and cash equivalents in the Bank overdraft 2,509,946 1,702,050 159,714 95,664
Statement of Financial Position 4,841,416 3,544,099 7,933 73,504 24,342,847 12,482,221 6,932,669 3,246,919
Bank overdraft (2,509,946) (1,702,050) (159,714) (95,664)
Non-current
Cash and cash equivalents in the
Statement of Cash Flows 2,331,470 1,842,049 (151,781) (22,160) Long-term loans 4,114,873 7,523,412 2,789,844 4,395,893
4,114,873 7,523,412 2,789,844 4,395,893
238 Total borrowings 28,457,720 20,005,633 9,722,513 7,642,812
Cargills
Movement (excluding bank
(Ceylon) overdraft)
PLC At the beginning of the year 18,303,583 18,118,551 7,547,148 4,108,189
Annual
Report Loans obtained 62,688,000 77,244,000 23,638,000 24,210,000
2022/23
Accrued interest 656,592 566,204 402,578 202,144
Repayments (55,700,401) (77,625,172) (22,024,927) (20,973,185)
At the end of the year 25,947,774 18,303,583 9,562,799 7,547,148
26.1 Details of all loans outstanding together with the related securities offered as at the reporting date are set out below:
Institution and Facility Principal Amount Amount Outstanding Repayment Terms and Interest Rate Security Offered
Rs. ‘000 Rs. ‘000
Cargills (Ceylon) PLC

Bank Overdrafts
Commercial Bank of Ceylon PLC 200,000 16,645 On demand, based on monthly AWPLR+1.75% Clean basis
Deutsche Bank 45,000 43,784 On demand, based on the prevailing market rates Clean basis
Nations Trust Bank PLC 20,000 – On demand, based on weekly AWPLR+1.0% Clean basis
Sampath Bank PLC 100,000 99,285 On demand, based on monthly AWPLR+1.0% Clean basis
159,714
Short-term Loans
Bank of Ceylon 1,500,000 – 1-12 months, based on the prevailing market rates Clean basis
Commercial Bank of Ceylon PLC 500,000 – 1-12 months, based on the prevailing market rates Clean basis
Hatton National Bank PLC 700,000 685,000 1-4 months, based on Money Market Rates (AWPLR weekly review) Clean basis
Nations Trust Bank PLC 2,980,000 2,680,000 1-3 months, based on the prevailing market rates Clean basis
Sampath Bank PLC 1,800,000 1,800,000 1-6 months, based on the prevailing market rates Clean basis
5,165,000
Long-term Loans
Commercial Bank of Ceylon PLC 167,947 170,516 Interest to be serviced monthly and capital to be repaid in 3 bi-annual Clean basis
installments
Hatton National Bank PLC 4,200,000 4,227,283 Interest to be serviced monthly and capital to be repaid in 20 quarterly Clean basis
installments of 400.0 Mn. No grace period for Capital repayment
4,397,799
9,722,513
Rs. ‘000 Rs. ‘000
Cargills Foods Company (Private) Limited

Bank Overdrafts
Bank of Ceylon 115,000 115,117 On demand, based on monthly AWPLR+0.5% Clean basis
Cargills Bank Limited – 677,339 On demand, based on the prevailing market rates Fully secured against cash
1,412,956
Short-term Loans
Bank of Ceylon 500,000 – 1-12 months, based on the prevailing market rates Clean basis
Commercial Bank of Ceylon PLC 4,500,000 4,060,000 1-12 months, based on the prevailing market rates Clean basis 239
Deutsche Bank 1,000,000 1,000,000 1-3 months, based on the prevailing market rates Clean basis
Hatton National Bank PLC 2,550,000 2,525,000 1-4 months, based on Money Market Rates (AWPLR weekly review) Clean basis Cargills
(Ceylon)
Standard Chartered Bank 1,250,000 1,250,000 1-4 months, based on the prevailing market rates Clean basis PLC
Union Bank PLC 300,000 – 1-4 months, based on monthly AWPLR+1.00% Clean basis Annual
Report
8,835,000 2022/23
Long-term Loans
Commercial Bank of Ceylon PLC 990,000 1,000,275 Interest to be serviced monthly and capital to be repaid in 3 bi-annual Clean basis
installments
Hatton National Bank PLC 650,000 653,001 Interest to be serviced monthly and capital to be repaid in 20 quarterly Clean basis
Standard Chartered Bank 624,999 625,166 Interest to be serviced quarterly and capital to be repaid in 12 quarterly Clean basis
installments
2,278,442
12,526,398
Cargills Agrifoods Limited
Bank Overdraft

18,896
Short-term Loan
Commercial Bank of Ceylon PLC 850,000 810,000 1 month, based on the prevailing market rates Clean basis
810,000
828,896
Cargills Food Processors (Private) Limited
Bank Overdrafts
Hatton National Bank PLC – 1,561 On demand, based on the prevailing market rates Clean basis
149,577
Short-term Loan
Commercial Bank of Ceylon PLC 250,000 – 1-12 months, based on the prevailing market rates Clean basis
149,577
Rs. ‘000 Rs. ‘000
Cargills Food Services (Private) Limited

Bank Overdrafts
Commercial Bank of Ceylon PLC – 911 On demand, based on the prevailing market rates Clean basis
Deutsche Bank 5,000 – On demand, based on the prevailing market rates Clean basis
911
Cargills Quality Confectionaries
(Private) Limited
Bank Overdrafts
11,407
240
Short-term Loans
Cargills Hatton National Bank PLC 200,000 75,000 1-4 months, based on Money Market Rates (AWPLR weekly review) Corporate guarantee for Rs. 200 Mn. from
(Ceylon) Cargills (Ceylon) PLC
PLC
75,000
Annual
Report 86,407
2022/23
Cargills Quality Dairies (Private) Limited
Bank Overdrafts
102,536
Short-term Loans
Commercial Bank of Ceylon PLC 1,750,000 950,000 1-12 months, based on the prevailing market rates Clean basis
Hatton National Bank PLC 2,500,000 10,789 1-4 months, based on Money Market Rates (AWPLR weekly review) Clean basis
Standard Chartered Bank 1,150,000 880,000 1-12 months, based on the prevailing market rates Clean basis
1,840,789
Long-term Loan
Hatton National Bank PLC 650,000 653,734 Interest to be serviced monthly and capital to be repaid in 20 quarterly Clean basis
653,734
2,597,059
Cargills Quality Foods Limited
Bank Overdrafts
Commercial Bank of Ceylon PLC 300,000 – On demand, based on monthly AWPLR+1.75% Clean basis
342,989
Short-term Loans
Hatton National Bank PLC 1,000,000 585,000 1-4 months, based on Money Market Rates (weekly review) Clean basis
Standard Chartered Bank 750,000 520,000 1-12 months, based on the prevailing market rates Clean basis
1,105,000
1,447,989
Rs. ‘000 Rs. ‘000
Millers Limited
Bank Overdrafts
259,981
Short-term Loans
Hatton National Bank PLC 200,000 10,000 1-4 months, based on Money Market Rates (AWPLR weekly review) Corporate Guarantee for Rs. 335 Mn. from
10,000
269,981 241
Cargills Agro Development Company Cargills
(Private) Limited (Ceylon)
PLC
Bank Overdraft
Annual
Commercial Bank of Ceylon PLC – 1,726 On demand, based on the prevailing market rates Clean basis Report
2022/23
1,726
Short-term Loans
Commercial Bank of Ceylon PLC 250,000 227,000 1 month, based on the prevailing market rates Clean basis
227,000
228,726
The Empire Investment Company
(Private) Limited
Bank overdraft
47,656
Kotmale Dairy Products (Private) Limited

Bank Overdraft
Bank of Ceylon 10,000 – On demand, based on the prevailing market rates Corporate guarantee from Kotmale Holdings

PLC. Mortgage over stocks and book debtors
1,598
Import Loan Facility/Series of Loan on

Import
Bank of Ceylon 40,000 – Based on the prevailing market rates Corporate guarantee from Kotmale Holdings
PLC. Mortgage over stocks and book debtors
Short-term loans
Hatton National Bank PLC 1,000,000 290,009 1-4 months, based on Money Market Rates (AWPLR weekly review) Clean basis
Commercial Bank of Ceylon PLC 450,000 260,000 1-12 months, based on the prevailing market rates Letter of comfort obtained from Cargills
Quality Dairies (Private) Limited
550,009
551,607
Grand Total 28,457,720
27. Capital Grant 28.1 Movement in Present Value of Defined Benefit Obligations
Accounting Policy GROUP COMPANY
Government Grants As at 1 April 1,549,184 1,529,000 594,973 580,027

Government grants, including non-monetary grants at fair value, are recognised when there Due to acquisition of subsidiary – 693 – –
is reasonable assurance that the conditions attached to them will be complied by the
Group and the grants will be received. Grants related to assets, including non-monetary Transferred in/(out) to subsidiary/
grants at fair value, are presented in the Statement of Financial Position as deferred income equity accounted investees – – – (114)
and recognised in the profit or loss on a systematic and rational basis over the useful life of Interest cost 232,377 122,304 89,246 46,402
the asset. Grants related to income are presented as a credit in the profit or loss, under the Current service cost 144,438 127,973 48,748 41,999
heading ‘other income’ against the incurrence of related expenditure.
Past service cost – (7,080) – (3,270)
Actuarial (gain)/loss (21,303) (158,313) 15,189 (35,014)
242 GROUP Benefits paid (71,029) (65,393) (21,454) (35,057)

Rs. ’000 2023 Rs. ’000 2022 As at 31 March 1,833,667 1,549,184 726,702 594,973
Cargills
(Ceylon)
PLC As at 1 April 15,975 27,456 28.2 Amount Recognised in the Profit/loss
Annual
Report
Amortisation (11,482) (11,481) GROUP COMPANY
2022/23 As at 31 March 4,493 15,975 As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
The unamortised grant balance refers to grants received by Cargills Agrifoods Limited in respect of Continuing Operations
projects in Dehiattakandiya and Kilinochchi from USAID.
Current service cost 144,438 127,973 48,748 41,999
The grants received have been accounted as per LKAS 20 - “Accounting For Government Grants and Interest cost 232,377 122,304 89,246 46,402
Disclosure of Government Assistance”. Past service cost – (7,080) – (3,270)
376,815 243,197 137,994 85,131
28. Employee Benefit Liabilities During the year ended 31 March 2022, the pension arrangements were adjusted to reflect new
Accounting Policy legal requirements in that country regarding the retirement age. As a result of the plan amendment,
the Group and Company’s defined benefit obligation decreased by Rs. 7.08 Mn. and Rs. 3.27 Mn.
respectively. A corresponding past service credit was recognised in profit or loss during the year
Defined Benefit Plan - Gratuity ended 31 March 2022.
The Group measures the present value of the retirement benefits for gratuity, with the advice
of an independent professional actuary using the “Projected Unit Credit method” (PUC) as
28.3 Amount Recognised in Other Comprehensive Income
required by the Sri Lanka Accounting Standard - LKAS 19 on “Employee Benefits”.
GROUP COMPANY
The item is stated under employee benefits in the Statement of Financial Position.
The assumptions based on which the results of the actuarial valuation was determined, are
included in this Note to the Financial Statements.
Actuarial (Gain)/loss Arising from:
Recognition of Actuarial Gains And Losses - Demographic assumptions (15) (31,640) – (22,877)
The Group recognises the total actuarial gains and losses that arise in calculating the - Financial assumptions 21,545 (14,979) 7,735 (10,730)
Group’s obligation in Other Comprehensive Income during the period in which it occurs.
- Experience adjustment (42,833) (111,694) 7,454 (1,407)
Funding Arrangements (21,303) (158,313) 15,189 (35,014)
The gratuity liability is not externally funded.
28.4 Actuarial Assumptions 28.6 Maturity Profile of the Retirement Benefit Obligations
The principal assumptions, used in the actuarial valuation were as follows: GROUP COMPANY
% 2023 % 2022 As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Discount rate 18 15 Less than 1 year 547,318 465,243 325,739 272,304

Salary increment rate Between 1 - 5 years 748,714 627,377 231,147 177,436
- Executive 17 14 Between 6 - 10 years 389,104 329,849 128,941 111,539
- Staff 17 14 Over 10 years 148,531 126,715 40,875 33,694
Staff turnover rate 20 20 1,833,667 1,549,184 726,702 594,973
Retirement age 60 years 60 years As at 31 March 2023, the weighted average duration of the defined benefit obligation for the Company
was 3.20 years (2022: 3.21 years).
The defined benefit obligation liability of the Company is based on an actuarial valuation carried out
by Mr M Poopalanathan, AIA Messrs Actuarial and Management Consultants (Private) Limited, an
Independent Actuary. The actuarial valuation involves making assumptions about discount rates and 29. Trade and Other Payables 243
future salary increases. Due to the complexity of the valuation and the underlying assumptions and its
GROUP COMPANY Cargills
long-term nature, the defined benefit obligation is highly sensitive to changes in these assumptions.
As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 (Ceylon)
All assumptions are reviewed at each reporting date. The Company has considered the impact on PLC
the defined benefit obligations due to changes in economic factors as a result of the prevailing Annual
macroeconomic conditions, with support of the independent actuarial expert. As per the guidelines Trade payables 20,673,240 15,782,767 12,921 20,171 Report
2022/23
issued by the Institute of Chartered Accountants of Sri Lanka, the discount rates have been adjusted Other payables 4,870,834 4,984,195 493,507 519,070
to convert the coupon bearing yield to a zero coupon yield to match the characteristics of the gratuity
Accrued expenses 2,392,209 2,342,056 58,159 64,664
payment liability and the resulting yield to maturity for the purpose of valuing employee benefit
27,936,283 23,109,018 564,587 603,905
obligations as per LKAS 19. Further, the salary increment rate of 17% is considered appropriate to be
in line with the Group’s targeted future salary increments when taking into account the current market
conditions and inflation rate. Due to the discount rate and salary increment rate assumptions used, 30. Dividend Payable
nature of non-financial assumptions and experience of the assumptions of the Company, there is no GROUP COMPANY
significant impact to employment benefit liability as a result of prevailing macro-economic conditions. As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
In addition to the above, demographic assumptions such as mortality, withdrawal and disability, and
retirement age were considered for the actuarial valuation. “A 67/70 mortality table” issued by the At 1 April 72,295 63,804 72,295 63,804
institute of Actuaries, London was used to estimate the employee benefit liability of the Group. Dividends declared to
shareholders (Note 11) 2,190,261 1,571,834 2,190,261 1,571,834
Dividends paid to
28.5 Sensitivity Analysis shareholders (2,167,856) (1,557,918) (2,167,856) (1,557,918)
The following table demonstrates the sensitivity to a reasonably possible change in the key assumptions Write back of unclaimed

employed with all other variables held constant in the defined benefit obligation measurement. dividends (16,027) (5,425) (16,027) (5,425)
Reasonable possible change at the reporting date to one of the relevant actuarial assumptions, holding At 31 March 78,673 72,295 78,673 72,295
other assumptions constant would have affected the defined benefit obligation by the amount shown
below:
2023 2022
As at 31 March Increase Rs. ’000 Decrease Rs. ’000 Increase Rs. ’000 Decrease Rs. ’000
Group
Discount rate (1% movement) (58,974) 63,567 (51,207) 55,356
Salary increment rate
(1% movement) 70,468 (66,404) 61,276 (57,598)
Company
Discount rate (1% movement) (19,302) 20,671 (16,220) 17,429
Salary increment rate
(1% movement) 23,143 (21,953) 19,456 (18,403)
31. Segmental Information Profit Before Tax
Accounting Policy
Segment Reporting
The Group’s primary segments are food retailing, food and beverage manufacturing and
distribution, restaurant and real estate. There are no distinguishable components to be
identified as geographical segments for the Group. 2023 2022
A segment is a distinguishable component of the Group that is engaged in providing
products and services. (Business segment, which is subject to risks and rewards that are
different from those of other segments).
Segment results, assets and liabilities include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis.
The accounting policies adopted for segment reporting are those accounting policies
244 adopted for preparing the Financial Statements of the Group. 2023 2022
Retail 38% 18%

Cargills
(Ceylon) Food and beverage manufacturing and distribution 50% 69%
PLC The following summary describes the operations of each reportable segment: Restaurant 18% 15%
Annual
Report Reportable segment Operations Real estate 1% 0%
2022/23
Other -7% -3%
Food retailing Operating a chain of retail outlets under the brand names of “Food City”,
”Cargills Express”, “Food Hall” and eCommerce platform “Cargills Online”’
Food and beverage Manufacturing and distributing ice cream and other dairy products, fruit Segmental Assets
manufacturing and based products, processed and fresh meat products, biscuits, distribution
distribution of international FMCG products, production, importation and distribution
of agricultural seeds and poultry and breeder farming.
Restaurant Operating a chain of “KFC” and “TGIF” restaurants under franchise
agreements.
Real estate Owner/operator of the “Cargills Square” shopping and
entertainment malls.
2023 2022
Inter-segment pricing is determined at prices mutually agreed by the companies.
Revenue
2023 2022
Retail 55% 51%
Food and beverage manufacturing and distribution 19% 19%

2023 2022
Restaurant 4% 5%
Real estate 7% 8%
Other 15% 16%

2023 2022
Retail 74% 75%
Food and beverage manufacturing and distribution 21% 20%
Restaurant 5% 4%
Other 0% 0%
Food Retailing Food and Beverage Restaurant Real Estate Others Group
Manufacturing and
Distribution
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Revenue 145,586,716 103,061,948 57,749,543 37,760,972 8,931,458 5,875,972 – – 36,062 31,013 212,303,779 146,729,905
Intra-segment revenue – – (1,098,588) (297,445) – – – – – – (1,098,588) (297,445)
Inter-segment revenue (192,891) (121,473) (15,358,339) (9,587,981) – – – – (36,062) (31,013) (15,587,292) (9,740,467)
145,393,825 102,940,475 41,292,616 27,875,546 8,931,458 5,875,972 – – – – 195,617,899 136,691,993
Segment
operating profit 6,422,416 3,750,626 5,525,287 4,148,593 1,482,462 966,556 (19,112) (82,496) 348,482 275,104 13,759,535 9,058,383
Net finance cost (3,151,165) (2,684,097) (1,355,697) (120,848) 26,764 (87,690) 3,397 369 (1,260,663) (362,965) (5,737,364) (3,255,231)
Change in fair value of
investment property – – 15,000 7,950 – – 207,333 90,534 78,446 30,979 300,779 129,463 245
Share of equity
accounted Cargills
investees results – – – – – – – – 193,692 (114,181) 193,692 (114,181) (Ceylon)
PLC
Profit before taxation 3,271,251 1,066,529 4,184,590 4,035,695 1,509,226 878,866 191,618 8,407 (640,043) (171,063) 8,516,642 5,818,434
Annual
Income Tax Expense Report
2022/23
Current tax expense (986,729) (512,636) (1,046,486) (773,113) (421,609) (240,616) (599) (1,492) (87,313) (25,907) (2,542,736) (1,553,764)
Deferred tax expense 222,426 220,947 (215,595) 25,424 30,215 15,628 (187,200) (13,730) (73,642) (34,946) (223,797) 213,323
Other tax expense – – (38,781) 127,957 – – – – (330,484) (67,230) (369,265) 60,727
Profit for the year 2,506,948 774,840 2,883,728 3,415,963 1,117,832 653,878 3,819 (6,815) (1,131,482) (299,146) 5,380,845 4,538,720
Attributable to:
Equity shareholders
of the parent 2,506,948 774,840 2,880,888 3,414,581 1,117,832 653,878 (8,180) (1,109) (1.131,482) (299,146) 5,366,006 4,543,044
Non-controlling interest – – 2,840 1,382 – – 11,999 (5,706) – – 14,839 (4,324)
2,506,948 774,840 2,883,728 3,415,963 1,117,832 653,878 3,819 (6,815) (1,131,482) (299,146) 5,380,845 4,538,720
Segment Assets
Non-current Assets
Property plant and
equipment 25,295,250 21,104,711 10,196,328 8,928,211 1,627,554 1,410,292 2,133,750 2,132,148 7,670,100 6,436,843 46,922,982 40,012,205

Right-of-use assets 18,258,498 13,665,548 78,342 81,314 1,287,809 1,991,365 – – 1,016,609 1,087,531 20,641,258 16,825,758
Investment property – – 200,347 151,750 – – 5,721,646 5,504,350 1,420,573 1,383,784 7,342,566 7,039,884
Intangible assets 119,460 169,602 698,032 724,057 227,980 93,134 – – 537,241 452,622 1,582,713 1,439,415
Other financial assets – – 243 140 238 134 – – 1,569,461 1,525,941 1,569,942 1,526,215
Prepayments on
leasehold land and
buildings 200,912 200,912 – – – – – – – – 200,912 200,912
Investment in equity
accounted investees – – – – – – – – 4,364,261 4,207,228 4,364,261 4,207,228
Biological assets – – 23,873 – – – – – – – 23,873 –
Deferred tax assets – – 27,829 11,969 – 2,101 – – – – 27,829 14,070
43,874,120 35,140,773 11,224,994 9,897,441 3,143,581 3,497,026 7,855,396 7,636,498 16,578,245 15,093,949 82,676,336 71,265,687
Food Retailing Food and Beverage Restaurant Real Estate Others Group
Manufacturing and
Distribution
Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Current Assets
Inventories 15,625,261 10,329,414 6,857,229 4,329,647 382,690 130,061 – – 7,646 13,162 22,872,826 14,802,284
Biological assets – 33,681 – – – – – – – 33,681 –
Trade and other
receivables 4,519,772 3,134,168 3,761,138 3,202,038 262,137 177,267 624,114 420,805 683,927 503,807 9,851,088 7,438,085
Amount due from
related companies 38,878 40,987 7,787 4,578 – – 18,146 1,562 326,857 329,938 391,668 377,065
Other financial assets – 904,695 100,924 92,453 – – 18,743 19,408 – – 119,667 1,016,556
Cash and cash
246 equivalents 2,248,620 1,044,381 1,028,619 1,397,962 1,481,545 921,829 4,273 45,834 78,359 134,093 4,841,416 3,544,099
22,432,531 15,453,645 11,789,378 9,026,678 2,126,372 1,229,157 665,276 487,609 1,096,789 981,000 38,110,346 27,178,089
Cargills
(Ceylon)
Total Segmental
PLC Assets 66,306,651 50,594,418 23,014,372 18,924,119 5,269,953 4,726,183 8,520,672 8,124,107 17,675,034 16,074,949 120,786,682 98,443,776
Annual
Report Segment Liabilities
2022/23
Non-current
Liabilities
Interest-bearing loans
and borrowings 671,295 2,274,267 653,734 853,252 – – – – 2,789,844 4,395,893 4,114,873 7,523,412
Lease liability 20,412,604 15,382,893 54,380 48,283 1,491,575 2,070,085 – – 962,697 1,000,818 22,921,256 18,502,079
Deferred tax liability (268,236) (200,152) 821,297 461,270 (47,069) (14,665) 256,222 28,981 575,437 454,371 1,337,652 729,805
Capital grant – – 4,493 15,975 – – – – – – 4,493 15,975
Employee
benefit liability 959,200 828,149 147,336 125,433 – – 429 629 726,702 594,973 1,833,667 1,549,184
21,774,863 18,285,157 1,681,240 1,504,213 1,444,506 2,055,420 256,621 29,610 5,054,680 6,446,055 30,211,941 28,320,455
Current Liabilities
Trade and
other payables 21,024,679 17,466,943 4,666,571 3,937,862 1,636,859 1,088,762 43,465 11,483 564,709 603,968 27,936,283 23,109,018
Current tax liabilities 1,642,333 957,745 2,954,985 2,399,167 923,846 583,669 155 495 433,586 253,246 5,954,905 4,194,322
Amount due to
related companies – – 257 2,834 – – 6,150 1,738 – – 6,407 4,572
Dividends payable – – – – – – – – 78,673 72,295 78,673 72,295
Interest bearing loans
and borrowings 11,855,104 6,657,040 5,356,930 2,472,779 150,488 105,483 47,656 – 6,932,669 3,246,919 24,342,847 12,482,221
Lease liability 1,152,027 889,943 22,888 33,531 128,161 193,079 – – 34,744 22,825 1,337,820 1,139,378
35,674,143 25,971,671 13,001,631 8,846,173 2,839,354 1,970,993 97,426 13,716 8,044,381 4,199,253 59,656,935 41,001,806
Total Segmental
Liabilities 57,449,006 44,256,828 14,682,871 10,350,386 4,283,860 4,026,413 354,077 43,326 13,099,061 10,645,308 89,868,876 69,322,261
Other Information
Capital expenditure 6,501,082 5,244,146 2,542,935 1,440,536 656,336 619,173 1,218,918 1,450,371 183,534 92,322 11,102,805 8,846,548
Depreciation 2,275,101 1,953,551 1,268,749 1,150,751 279,223 259,467 4,754 8,510 87,908 80,680 3,915,735 3,452,959
The Group does not distinguish its turnover into significant geographic segments.
32. Commitments Bank Guarantee
GROUP COMPANY
The Company has provided Bank Guarantees to Sri Lanka Customs amounting to Rs. 2.5 Mn.
There are no other material contingent liabilities as at the reporting date.
Capital Commitment The Directors do not expect any claim on these guarantees. Accordingly, no provision has been made
Approved and contracted 749,269 3,047,782 – 9,000 in the Financial Statements.
Financial Commitments
(a) Future payments of 34. Events after the Reporting Date
operating lease rentals* 34.1 Proposed Dividend
- within 1 year – – – –
Subsequent to the reporting period, on 16 May 2023, the Board of Directors proposed a second
- between 1 -5 years – – – – interim dividend of Rs. 8.50 per share for the year ended 31 March 2023.
- more than 5 years – – – –
– – – – In accordance with LKAS 10 - “Events after the reporting period”, the dividend has not been 247
(b) Settlement of letter of recognised as a liability in the Financial Statements as at 31 March 2023.
Cargills
credits and import bills 41,679 495,341 – – (Ceylon)
No events other than the above, have occurred since the reporting date which would require any PLC
* Future payments of operating lease rentals are disclosed in Note 13.2 under Maturity analysis - Contractual
adjustment to, or disclosure in the Financial Statements. Annual
undiscounted cash flows: Report
2022/23
33. Contingent Liabilities 35. Transactions with Group Companies

Accounting Policy Accounting Policy
Related Party Transaction

Contingencies
Disclosure has been made in respect of the transactions in which one party has the
Contingent Liabilities are possible obligations whose existence will be confirmed only by
ability to control or exercise significant influence over the financial and operating policies/
uncertain future events or present obligations where the transfer of economic benefit
decisions of the other, irrespective of whether a price is being charged or not.
is not probable or cannot be readily measured as defined in the Sri Lanka Accounting
Standard - LKAS 37 “Provisions, Contingent Liabilities and Contingent Assets”. Contingent The relevant details are disclosed in the respective Notes to the Financial Statements.
liabilities are not recognised in the Statement of Financial Position but are disclosed unless The Company has provided corporate guarantees for the term loans and banking facilities
its occurrence is remote. obtained by its subsidiary companies, the details of which has been disclosed under Note 26.1
to the Financial Statements.
Companies within the Group engage in trading and business transactions under normal
commercial terms which give rise to related company balances. The balances have been
Income Tax disclosed under Note 22 to the Financial Statements.

An assessment has been received from the Department of Inland Revenue on prices charged on
the related party transactions of Cargills Ceylon PLC. Contingent liabilities on potential income tax
payment is Rs. 70.20 Mn. Having sought professional advice, the Management is confident that no
liabilities would arise. Accordingly, no provision has been made in the Financial Statements. 35.1 Transactions with Key Management Personnel (KMP)
According to LKAS 24 - “Related Party Disclosures”, KMP are those having authority and responsibility
for planning, directing, controlling the activities of the entity. Accordingly, the directors of the Company
Letter of Guarantee to Commercial Banks and its subsidiaries (including executive and non - executive directors) have been classified as KMP of
The Company has given letters of guarantee to Commercial Banks on behalf of subsidiary companies the Group.
amounting to Rs. 535 Mn. Kotmale Holding PLC a subsidiary of the company has given letters of
guarantee to Commercial Banks on behalf of its subsidiary company; Kotmale Dairy Products (Pvt) Ltd. Key Management Personnel compensation comprise the following:
amounting to Rs. 50 Mn. The Directors do not expect any claim on these guarantees. Accordingly, no
GROUP COMPANY
provision has been made in the Financial Statements.
Year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2023
Salaries and other short-

term employee benefits 531,570 461,784 139 124
531,570 461,784 139 124
35.2 Amount Due from/due to Related Companies 35.4 Transactions, Arrangements and Agreements Involving Key Management
Amounts due from and due to related companies as at the year end have been disclosed under Personnel (KMP) and their Close Family Members (CFM)
Note 22 to these Financial Statements. CFM of a KMP are those family members who may be expected to influence, or be influenced by, that
individual in their dealings with the entity. They may include;
35.3 Transactions with Related Companies (a) the individual’s domestic partner and children;
GROUP COMPANY (b) children of the individual’s domestic partner; and
For the year ended 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 (c) dependence of the individual or the individual’s domestic partner
Transaction with Related Parties CFM are related parties to the entity. There were no transactions other than disclosed below with the
CFM during the year.
Subsidiaries
Sale/(purchase) – – 36,061 31,013
Other income/(expense) – – 2,522,809 1,792,627
Double Yummm (Private) Limited
248 Fund transfer/(settlement) – – (1,787,814) (995,366) Mrs R Page, wife of the Deputy Chairman is a Director of the above company with which Cargills Food
Company (Private) Limited had regular transactions in the ordinary course of business and the amount
Cargills Holding Company outstanding as at 31 March 2023 was Rs. 29.89 Mn. (2022 - Rs. 16.20 Mn.).
(Ceylon)
PLC Sale/(purchase) – – – –
Purchases for re-sale in the ordinary course of business amounted to Rs. 295.53 Mn. (2022 -
Annual Other income/(expense) 16,405 21,148 16,405 11,437 Rs. 158.42 Mn.).
Report
2022/23 Fund transfer/(settlement) (28,530) 393 (28,530) 395
Directors have no direct or indirect interest in any other contacts with the Company.
Associates
Sale/(purchase) 925 – – –
Other income/(expense) 70,836 79,621 22,062 41,577
36. Comparative Information
Comparative Information is re-classified wherever necessary to conform with the current year’s
Fund transfer/(settlement) 46,323 (94,348) (21,203) (21,079)
presentation in order to provide a better presentation.
Other Related Companies
Sale/(purchase) 26,827 (24,171) – – 37. Assessment of Going Concern
Other income/(expense) 93,700 49,512 17,709 15,718 The Financial Statements of Cargills Ceylon Plc for the year ended 31 March 2023, have been
Fund transfer/(settlement) (19,525) (12,696) (32,331) (5,217) prepared on the basis that the Company is a Going Concern.
The administration expense relating to Company includes employee benefit cost transfer to Based on the prevailing information, the management has considered the consequences of the
subsidiaries amounting to Rs. 68.39 Mn. (2022 - 49.23 Mn.) for the year ended 31 March 2023. uncertainties faced by the country and, whilst these challenges would have a bearing on the inflation,
consumer demand and supply chain, The Company has adapted strategies to mitigate its impact and
Rs. ’000 2023 Rs. ’000 2022 does not contemplate a significant doubt upon the entity’s ability to continue as a Going Concern.
Dividend received from subsidiary companies

Cargills Quality Foods Limited 511,692 1,210,455
Cargills Foods Company (Private) Limited 595,954 300,149
Cargills Foods Processors (Private) Limited 750,063 155,040
Cargills Quality Dairies (Private) Limited 665,100 –
2,522,809 1,665,644
38. Financial Instruments
38.1 Accounting Classification and Fair Values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities. It does not include fair value information for financial assets and financial liabilities not measured at fair
value if the carrying amount is a reasonable approximation of fair value.
Financial Assets by Categories (Group) Financial assets at amortised cost FVTOCI – equity instruments FVTPL - debt instruments
As at 31 March Note Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Financial Assets Measured at Fair Value

Other financial instruments – Equity 16.3.1 – – 69,942 26,215 – –
Other financial instruments – Debt 16.3.2 – – – – 1,500,000 1,500,000
Financial Assets not Measured at Fair value

Trade and other receivables, excluding prepayments, deposits and tax recoverable 21 6,637,934 4,661,430 – – – – 249
Amounts due from related companies 22 391,668 377,065 – – – –
Cargills
Other financial assets 16.3.3 119,667 1,016,556 – – – – (Ceylon)
Cash and cash equivalents 25 4,841,416 3,544,099 – – – – PLC
Total 11,990,685 9,599,150 69,942 26,215 1,500,000 1,500,000 Annual
Report
2022/23
Financial Liabilities by Categories (Group) Financial liabilities at amortised cost
As at 31 March Note Rs. ’000 2023 Rs. ’000 2022
Financial Liabilities not Measured at Fair Value

Interest bearing loans and borrowings 26 28,457,720 20,005,633
Lease liability 13 24,259,076 19,641,457
Trade and other payables, excluding accrued expenses 29 25,544,074 20,766,962
Amounts due to related companies 22 6,407 4,572
Total 78,267,277 60,418,624
Financial Assets by Categories (Company) Financial assets at amortised cost FVTOCI – equity instruments FVTPL - debt instruments
As at 31 March Note Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Financial Assets Measured at Fair Value

Other financial instruments – Equity 16.3.1 – – 69,461 25,941 – –
Other financial instruments – Debt 16.3.2 – – – – 1,500,000 1,500,000
Financial Assets not Measured at Fair Value

Trade and other receivables, excluding prepayments, deposits and tax recoverable 21 149,221 66,355 – – – –
Amounts due from related companies 22 4,007,984 2,333,277 – – – –
Cash and cash equivalents 25 7,933 73,504 – – – –
Total 4,165,138 2,473,136 69,461 25,941 1,500,000 1,500,000
Financial Liabilities by Categories (Company) Financial liabilities at amortised cost
As at 31 March Note Rs. ’000 2023 Rs. ’000 2022
Financial Liabilities not Measured at Fair Value

Interest bearing loans and borrowings 26 9,722,513 7,642,812
Lease liability 13 997,441 1,025,528
Trade and other payables, excluding accrued expenses 29 506,428 539,241
Amounts due to related companies 22 1,286 15,338
Total 11,227,668 9,222,919
38.1.1 The above table does not include fair value information for financial assets and liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
38.2 Fair Value Hierarchy
250 The table below analyses assets carried at fair value, by valuation method.
Cargills The different levels have been defined as follows:

(Ceylon)
PLC
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Annual Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Report
2022/23 Level 3: Inputs for the assets or liability that are not based on observable market data (unobservable inputs)
Level 1 Level 2 Level 3 Total

As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Group
Freehold land and buildings (Note 12) – – – – 18,943,825 15,430,577 18,943,825 15,430,577
Investment property (Note 14) – – – – 7,342,566 7,039,884 7,342,566 7,039,884
Equity investment at FVOCI (Note 16.3.1) 69,942 26,215 – – – – 69,942 26,215
Debt investment at FVTPL (Note 16.3.2) – – 1,500,000 1,500,000 – – 1,500,000 1,500,000
Level 1 Level 2 Level 3 Total

As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
Company
Freehold land and buildings (Note 12) – – – – 3,075,489 3,085,856 3,075,489 3,085,856
Investment property (Note 14) – – – – 3,293,903 3,170,928 3,293,903 3,170,928
Equity investment at FVOCI (Note 16.3.1) 69,461 25,941 – – – – 69,461 25,941
Debt investment at FVTPL (Note 16.3.2) – – 1,500,000 1,500,000 – – 1,500,000 1,500,000
38.2.1 Assets and Liabilities Measured at Fair Value - Recurring
The following table shows the valuation techniques used by Group in measuring level 3 fair values and the significant unobservable inputs used.
Assets and Liabilities Valuation Technique Significant Unobservable Inputs Sensitivity of the Input to the Fair Value
Property, plant and equipment Market approach – This method considers the selling price of Market value per perch of land/price per Estimated fair value will increase (decrease) if;
- Freehold land and building a similar property within a reasonably recent period of time in square foot market value per perch/price for sq.ft. increases
determining the fair value of property being revalued. This involves Rs. 800,000 – Rs. 18,000,000 per perch (decreases)
evaluation of recent active market prices of similar assets, making
appropriate adjustments for difference in size, nature and location of
the property.
Income approach – The net income generated by the property is Cash flows from property discounted at an Estimated fair value will increase (decrease) if;
used in conjunction with certain factors is used to calculate its fair appropriate rate market interest rate increases (decreases)
value. Contractual rental Rs. 50,000 - 9,000,000 Contractual rentals were higher/(lower)
per month. Capitalisation rate was (higher)/lower 251
Capitalisation rates 5% – 8% Repair and insurance was (higher)/lower
Cargills
Repairs and insurance 25% – 30% Market value per perch was higher/(lower) (Ceylon)
PLC
Annual
Investment property – Market approach – This method considers the selling price of Construction cost per square foot The estimated fair value would increase/(decrease) if Report
2022/23
Freehold land and building a similar property within a reasonably recent period of time in Rs. 400 – Rs. 10,000 Cost per square foot was higher/(lower)
determining the fair value of property being revalued. This involves Market price per perch. The valuer has used
evaluation of recent active market prices of similar assets, making Market value per perch was higher/(lower)
a range of prices for respective lands based
appropriate adjustments for difference in size, nature and location of on adjusted fair value taking into account
the property other valuation considerations-
Rs. 800,000 – Rs. 9,800,000 per perch
Income approach – The net income generated by the property is Capitalisation rates 5.5% – 6% The estimated fair value would increase/(decrease) if
used in conjunction with certain factors is used to calculate its fair Repairs and insurance 23% – 37.5% Contractual rentals were higher/(lower)
value.
Contractual rental Rs. 2,520,000 – Occupancy rates were higher/(lower)
8,670,102 per month. Capitalisation rate was (higher)/lower
Repair and insurance was (higher)/lower
Market value per perch was higher/(lower)

39. Financial Risk Management 39.1.1 Trade Receivables Net of Provision for Impairment
GROUP COMPANY
Overview As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
The Group has exposure to the following risks from its use of financial instruments:
– Credit risk Past due 1 – 30 days 3,301,647 2,628,689 – –
– Liquidity risk Past due 31 – 60 days 1,349,160 556,254 – –
– Market risk Past due 61 – 90 days 282,673 230,716 – –
> 91 days 188,869 262,339 – –
This Note presents information about the Group’s exposure to each of the above risks, the Group’s 5,122,349 3,677,998 – –
objectives, policies and processes for measuring and managing risk, and the Group’s management of
capital. Further quantitative disclosures are included throughout these Financial Statements. The provision for impairment of trade receivables are relevant to the trade receivables outstanding for
more than 90 days. The Group has obtained bank guarantees from major customers by reviewing their
past performance and creditworthiness.
252 Risk Management Framework
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
Cargills management framework.
39.1.2 Amount due from Related Companies
(Ceylon) The Group’s amounts due from related companies mainly consist of receivables from other related
PLC
The Group’s risk management processes are established to identify and analyse the risks faced by companies and Parent Company. The Company’s amount due from related companies consist of
Annual
Report the Group, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk receivables from affiliate companies.
2022/23 management systems are reviewed regularly to reflect changes in market conditions and the Group’s
activities.
39.1.3 Cash and Cash Equivalents
The Audit Committee oversees how management monitors compliance with the Group’s risk The Group and the Company held cash and cash equivalents of Rs. 4,841.42 Mn. and Rs. 7.93 Mn.
management processes/guidelines and procedures and reviews the adequacy of the risk management at 31 March 2023 (2022 - Rs. 3,544.01 Mn. and Rs. 73.50 Mn.), which represents its maximum credit
framework in relation to the risks. The Audit Committee is assisted in its oversight role by the Risk exposure on these assets. The cash and cash equivalents are held with banks, which are rated
Management team and Internal Audit, who undertake both regular and ad hoc reviews of risk AAA(lka) to BBB-(lka), based on Fitch Ratings.
management controls and procedures, the results of which are reported to the Audit Committee.
39.1.4 Guarantees
39.1 Credit Risk The Group’s policy is to provide financial guarantees only to wholly owned subsidiaries.
Credit risk is the risk of financial loss to the Group if a customer or counter party to a financial
instrument fails to meet its contractual obligation, and arise principally from the Group’s receivables
from customers.
39.2 Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated
Group implemented several initiatives such as periodic review of the creditworthiness of its with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s
counterparties, Financial Statements reviews, and industry information. 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
Carrying amount of financial assets represents the maximum credit exposure. unacceptable losses or risking damage to the Group’s reputation. The Group holds cash and undrawn
committed facilities to manage its liquidity risk.
The maximum exposure to credit risk at the reporting date was as follows:
The Group monitors its risk to shortage of funds by considering maturity of both the Group’s financial
GROUP COMPANY
investments and financial assets and other projected cash flow from operations.
As at 31 March Note Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022
The Group’s objective is to maintain balance between continuity of funding and flexibility through the
Trade and other receivables, use of multiple sources of funding including bank loans and overdrafts over a wider spread of maturity
excluding prepayments periods.
and tax recoverable 21 6,637,934 4,661,430 149,221 66,355
Amount due from In liquidity risk management, the Group uses a mixed approach where it combines elements of cash
related companies 22 391,668 377,065 4,007,984 2,333,277 flow matching approach and the liquid assets approach. The business units attempt to match cash
Cash and cash equivalents, outflows in each time bucket against a combination of contractual cash inflows that can be generated
excluding cash in hand 25 3,435,517 2,830,498 7,773 10,786 through the sale of assets, repurchase agreements or secured borrowings.
10,465,119 7,868,993 4,164,978 2,410,418
The following are the contractual maturities of financial liabilities of the Group as at 31 March 2023: The following are the contractual maturities of financial liabilities of the Company as at 31 March 2022:
Contractual Cash Flows Contractual Cash Flows
Group Carrying Total Within Between More than Company Carrying Total Within Between More than
Amount 1 year 1-5 years 5 years Amount 1 year 1-5 years 5 years
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Trade and other Trade and other

payables, excluding payables, excluding
accrued expenses 25,544,074 25,544,074 25,544,074 – – accrued expenses 539,241 539,241 539,241 – –
Amounts due to Amounts due to
related companies 6,407 6,407 6,407 – – related companies 15,338 15,338 15,338 – –
Short-term loan 18,617,798 18,617,798 18,617,798 – – Short-term loan 1,205,000 1,205,000 1,205,000 – –
Long-term loan 7,329,976 7,329,976 3,215,103 4,114,873 – Long-term loan 6,342,148 6,342,148 1,946,255 4,395,893 –
Bank overdraft 2,509,946 2,509,946 2,509,946 – – Bank overdraft 95,664 95,664 95,664 – – 253
Lease liabilities 24,259,076 43,602,252 3,266,820 12,466,745 27,868,687 Lease liabilities 1,025,528 1,586,769 79,729 384,757 1,122,283
Cargills
78,267,277 97,610,453 53,160,148 16,581,618 27,868,687 9,222,919 9,784,160 3,881,227 4,780,650 1,122,283
(Ceylon)
PLC
The following are the contractual maturities of financial liabilities of the Group as at 31 March 2022:
39.3 Market Risk Annual
Report
Contractual Cash Flows Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and 2022/23
Group Carrying Total Within Between More than equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
Amount 1 year 1-5 years 5 years objective of market risk management is to manage and control market risk exposures within acceptable
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 parameters, while optimising the return.
Trade and other

payables, excluding 39.3.1 Currency Risk
accrued expenses 20,766,962 20,766,962 20,766,962 – – The Group is exposed to currency risk on sales and purchases that are denominated in a currency
Amounts due to other than the Sri Lankan Rupee (LKR). The Group has limited exposure in respect of recognised
related companies 4,572 4,572 4,572 – – foreign currency assets and liabilities. The Group applied Rs. 327 per USD and Rs. 357 per EUR as
Short-term loan 6,877,486 6,877,486 6,877,486 – – at the reporting date in translating its assets and liabilities. The following table shows the estimated
impact on profitability by fluctuation of exchange rates assuming that all other variables remain
Long-term loan 11,426,097 11,426,097 3,902,685 7,523,412 –
constant;
Bank overdraft 1,702,050 1,702,050 1,702,050 – –
Lease liabilities 19,641,457 38,926,548 2,967,491 11,428,431 24,530,626 GROUP COMPANY
60,418,624 79,703,715 36,221,246 18,951,843 24,530,626 As at 31 March Rs. ’000 2023 Rs. ’000 2022 Rs. ’000 2023 Rs. ’000 2022

The following are the contractual maturities of financial liabilities of the Company as at 31 March 2023: 5% - Increase in exchange rate USD 8,354 152,568 – –
Contractual Cash Flows 5% - Decrease in exchange rate USD (8,354) (152,568) – –
Company Carrying Total Within Between More than
Amount 1 year 1-5 years 5 years 39.3.2 Interest Rate Risk
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
The Group is exposed to interest rate risk on borrowings and deposits. The Group’s interest rate policy
seeks to minimise the cost and volatility of the Group’s interest expense by maintaining a diversified
Trade and other portfolio of fixed rate, floating rate and inflation-linked liabilities.
payables, excluding
accrued expenses 506,428 506,428 506,428 – –
The Group adopts a policy of ensuring borrowings are maintained at a manageable level while
Amounts due to optimising returns. Interest rates are negotiated leveraging on the strength of the Group and thereby
related companies 1,286 1,286 1,286 – –
ensuring the availability of cost-effective funds at all times, while minimising the negative effect of
Short-term loan 5,165,000 5,165,000 5,165,000 – – market fluctuations. Further, the Group has considerable banking facilities with several reputed banks
Long-term loan 4,397,799 4,397,799 1,607,955 2,789,844 – which has enabled the Group to negotiate competitive rates.
Bank overdraft 159,714 159,714 159,714 – –
Lease liabilities 997,441 1,508,642 93,147 506,558 908,937
11,227,668 11,738,869 7,533,530 3,296,402 908,937
Sensitivity Analysis
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with
all other variables held constant, of the Group’s and Company’s profit before tax (through the impact
on floating rate borrowings).
GROUP COMPANY
+100 basis points (284,577) (144,061) (97,225) (70,277)

-100 basis points 284,577 144,061 97,225 70,277
39.3.3 Market Price Risk

Listed equity securities are susceptible to market price risk arising from uncertainties of future values
254 of the investment securities. The Group manages the equity price risk through diversification and
placing limits on individual and total equity portfolio investments. The Group’s equity risk management
Cargills policies are;
(Ceylon)
PLC z Equity investment decisions are based on fundamentals rather than on speculation; and
Annual z Decisions are based on in depth macroeconomic and industry analysis as well as research reports
Report
2022/23 on company performance. Market price risk is not material to the Group.
39.4 Capital Management

The Board’s policy is to maintain a strong capital base so as to maintain shareholder, creditor and
market confidence and to sustain future development of the business. The Board of Directors monitors
the return on capital and level of dividends to ordinary shareholders.
GROUP COMPANY
Total borrowings 28,457,720 20,005,633 9,722,513 7,642,812

Less: Cash and cash
equivalents 6,531,025 6,086,870 7,933 73,504
Net debt 21,926,695 13,918,763 9,714,580 7,569,308
Total equity 30,917,807 29,121,515 11,880,856 12,601,740
Net debt to equity ratio 0.71 0.48 0.82 0.60
There were no changes in the Group’s approach to capital management during the year.

ANNEXURES
255
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
ABOUT FIVE YEAR FINANCIAL INVESTOR RELATIONS

THE REPORT SUMMARY SUPPLEMENT
256 260 261
GROUP REAL ESTATE NOTICE OF ANNUAL

PORTFOLIO GENERAL MEETING
263 264
256
Cargills
(Ceylon)
PLC
ABOUT
THE REPORT
Annual
Report
2022/23
Cargills (Ceylon) PLC is proud to present our Integrated Annual Report for Company. This Report provides both quantitative and qualitative data, with a preference for offering
the financial year ended 31 March 2023. This report has been compiled in quantitative information where available to facilitate comparisons and further analysis.
accordance with the International Integrated Reporting Framework proposed
by the International Integrated Reporting Council (IIRC) and displays amplified
efforts to incorporate more insights and data that validate our commitment Scope, Boundaries, and Reporting Structure
towards sustainable and ethical business practices. Having set out on a The Annual Report remains consistent with the Company’s conventional annual reporting cycle and
journey to instill further transparency in our reporting process with our covers the operations of Cargills (Ceylon) PLC and its subsidiaries as listed out in the Corporate
inaugural Integrated Annual Report introduced in the previous fiscal year, this Information of the compilation (collectively addressed as the “Group”) for the 12-month period from 1
report is emblematic of the advancement made by Cargills towards a clearer April 2022 to 31 March 2023. All financial and non-financial analysis is conducted within the realm of
communication of its strategy, governance, performance, and potential for sectoral activities and their associated business units.
growth while taking into consideration its impact on the external environment
and the use of resources. It serves to evidence the value created by Cargills over The reporting system facilitates the review of all Group businesses in terms of operations, strategy, and
the short-term, medium-term, and long-term. performance while GRI reporting is systematically compiled at Group level through data collection and
review by operation and by sector. Therefore, the primary entity for which the social and environmental
data is presented in the narrative reports, unless specified otherwise, is the Group as a whole, and
How this Report is Organised material aspects and boundaries are based on internal assessments encompassing the Group’s
With the International Integrated Reporting <IR> Framework and the Global activities in Sri Lanka.
Reporting Initiative (GRI) Sustainability Reporting Standards as principal
references, the Management Discussion and Analysis (MDA) of this report has
been structured according to the value delivered and value created by Cargills, Financial Reporting
by living up to its mission statement. Similar to the previous report, this structure The financial information reported in this Integrated Annual Report has been prepared and presented
allows stakeholders and shareholders to observe how the Company is pursuing in accordance with the Sri Lanka Accounting Standards (SLFRS and LKAS) as laid down by the
its purpose, conducting business, and developing a strategy in accordance with Institute of the Chartered Accountants of Sri Lanka in compliance with the Companies Act No. 07 of
its mission and identity. A high level of compliance and transparency of business 2007 and the listing rules of the Colombo Stock Exchange, and have been audited by M/s KPMG.
conduct has continued to guide Cargills’ growth and progress; accordingly, Furthermore, the report is in adherence with the Code of Best Practice on Corporate Governance
transitioning to an integrated approach expands our reporting of responsible issued jointly by the Chartered Accountants of Sri Lanka and the Securities and Exchange Commission
business activities, which grants stakeholders the opportunity and the means to of Sri Lanka.
openly communicate with Cargills on material issues, and permits shareholders
ANNEXURES
to make well-informed decisions on aligning their investments and trust with the
Continuous engagement to 257
improve existing strategies
and identify new areas of Cargills
(Ceylon)
engagement PLC
Annual
Report
2022/23
Watch,
Non-Financial Reporting Listen
and Review
The Cargills Integrated Annual Report 2022/23 serves as a comprehensive
framework in disclosing the Group’s impact, progress and contribution made to the
UN Sustainable Development Goals (SDGs) and UNGC Principles. An Independent
Assurance Report by M/s KPMG provides reasonable assurance on the Financial Monitor Identify
Regular monitoring Identify new
Highlights (pages 16 and 17) and limited assurance on the Non-Financial Highlights and and
of progress against stakeholders and
(pages 18 and 19) and Performance Summary (pages 30 to 161). Control Document
identified KPIs develop a stakeholder
prioritisation plan
Feedback
All questions, suggestions, and feedback on the Annual Report 2022/2023 can
be sent to [email protected]
Stakeholder Engagement
Cargills maintains an open and ongoing two-way dialogue with internal and Plan Analyse
external stakeholders in order to ensure that our business is proactive in Approach
addressing the changing needs and expectations of our stakeholders, enhancing Implementing the High-level stakeholder
shareholder value, and promoting long-term sustainability across all business developed strategies assessment
verticals. with KPI-driven
Develop
accountable targets
Strategies
Our Engagement Process
At Cargills, we recognise the importance of effective stakeholder engagement
About the Report

in the process of translating stakeholders’ needs into our organisational goals
to form a successful strategy. To this end, we have implemented a structured Mapping priorities and aligning
method of engagement, which includes the identification and monitoring of and incorporating stakeholder
key performance indicators. This process of continual vigilance further enhances
concerns in the business
our understanding of the current developments and changes we face in
our operational environment, enabling us to respond effectively and in agenda
ANNEXURES
a timely manner.
Stakeholder Engagement Mechanism Key Concerns Raised in 2022/23 Measures taken by Cargills in Response
Farmers, SMEs and Traders z Ongoing Daily Engagement z Increasing inflation and input costs z Successful expansion of the Agriculture Modernisation Project and Dairy
Over 20,000 farmers and more than z Ongoing Monthly Meetings z Access to new markets Development Programme
600 suppliers are directly linked to z Ongoing Field Visits z Access to financial services z Expansion of retail chain to access new, untapped suburban markets
markets through the Cargills value chain z Monthly/Quarterly Partnership Meetings z Price regulations z Introducing Village to Home initiative for SMEs
z Monthly/Quarterly Farmer Group z Continuous dissemination of technical knowledge and training to farmers
Meetings z Strengthened financial assistance through subsidies and the Cargills
z Digital Engagement Platforms Sarubima Credit Relief Fund, with Rs. 10 Mn. reserved from the Sarubima
Fund for the purpose
Employees z Ongoing training and mentoring via an z Increasing living costs z Providing employment across townships and additional income streams
The Cargills team comprises 11,033 online portal z Access to training and capacity building z Expanding the online training portal with 16 new modules to provide
members spread across 25 districts z Ongoing orientation programmes with mapped career development anytime-anywhere accessibility to mandatory training courses requisite for
258 and over 400 locations z Daily briefings z Rewards and recognition promotions and career progression
z Open door policy z Grievance sharing z More transparency in achievement recognition through online portal
Cargills z Monthly/quarterly briefings by senior z Team building and interaction z Increased access and connectivity across the board through online
(Ceylon) management z Transparency of corporate decisions meetings and enhanced platforms
PLC z Periodic face-to-face and remote HR z Launch of highly effective and efficient integrated HR Portal
Annual
Report
engagements z Formal grievance handling process
2022/23 z Annual regional staff conventions z Continuous and open communication between leadership and employees
z Staff events and get-togethers z Resuming team building events and engagements
Customers z Ongoing daily customer interactions at z Addressing rising inflation and cost of z Increasing access to highest quality produce and consumer goods at the
We serve millions of customers through all sales points, Cargills Online and the living lowest market price by extending the Cargills retail network
our extensive, island-wide retail and Cargills app z Growing health-conscious market z Providing access to affordable nutrition through price regulations on
restaurant network and food value chain z Ongoing promotional messaging and segment essential items
print/electronic media publications z Growing socially-conscious market z Enhancing Cargills Online services and extending service areas
z Ongoing social media engagement segment z The increased agricultural output of healthy, socially responsible brands
z Customer service hotline z Multi-channel accessibility to products such as Good Harvest, BeeSafe, Cargills Rice, and 27 new healthier
z Ongoing consumer research and periodic and services product variants
customer satisfaction surveys z Food security z Increasing production volume and eliminating waste across the supply
z Trade fairs and events Chain
z Ensuring consistent availability of food items around the island through a
prudently managed distribution process
Shareholders z Ongoing information on CSE z Financial performance z Addressing immediate risks stemming from the ongoing national crisis
Cargills aims to annually deliver z Media reports z Risk management while continuing to build capabilities for the future
increased value to shareholders z Corporate website z Capacity expansion z Laying a strong foundation for benchmarked ESG disclosures by
who continue to support the Cargills z Open door policy for investor inquiries z ESG disclosures continuing to enhance existing reporting and compliance standards
business model built on long-term value z Quarterly reports z Ensuring transparency and timeliness in disclosing material matters
and sustainable growth z Monthly/quarterly investor calls and
meetings
z Monthly/quarterly Road Shows
z Annual General Meeting
About the Report
Local Community z Cargills Sarubima Activities z Growing Regional Disparities z Provision of 774 scholarships through the Sarubima Fund
Cargills continues to take a multi- z Cargills Foundation Activities z Access to equal opportunities in z Creating equal access to job opportunities for communities by extending
faceted approach in contributing to the education and employment Cargills retail network, with 68% of the team hailing from outside the
sustainable development of the local z Female and Youth Empowerment Western Province
communities in which we operate and z Partnering with State Universities for product development and
those from which we source commercialisation
ANNEXURES
z Investment of Rs. 24 Mn. in community development projects

z Expansion of the Early Childhood Education (ECE) Programme
z Maintaining a 50:50 gender parity across the Company
Stakeholder Engagement Mechanism Key Concerns Raised in 2022/23 Measures taken by Cargills in Response
Government and Regulatory z Ongoing regulatory reporting z Market and community impact z Creating promising job opportunities for youth with 7,068 of our
Authorities z Meetings and representation at various z Youth unemployment employees under the age of 30
Cargills drives policy change and Government Forums, Events and z Good governance and ethics z Contributing to Government policy and decision making by setting
implementation towards better health, Chambers z Use of resources and environmental benchmarks for the agriculture sector as well as consumer health and
nutrition and overall living standards impact nutrition
by engaging with local lawmakers and z Responsible waste management and commitment to sustainable
regulators environmental practices in production and operations
Materiality GRI Content Index

Cargills evaluates the potential impacts on our business and stakeholders concerning various The material issues identified by Cargills and their corresponding levels of materiality are detailed
topics in order to determine which are deemed material. Through our Enterprise Risk Management below:
(ERM) framework, we identify, analyse, evaluate, mitigate and monitor risks to inform our assessment. 259
The Global Reporting Index (GRI) standards are considered when mapping the risks incurred. Our No. Material Issue GRI Standard Materiality
materiality assessment helps inform our company’s reporting approach, allowing us to focus on To Group To Stakeholder Cargills
(Ceylon)
relevant, higher-priority topics for our stakeholders.
PLC
Annual
1. Corporate Governance Internal 102 High High Report
Materiality and Reporting 2. Reputation Internal 102 High High 2022/23
3. Risk Management Internal 102 High High

4. Economic Performance Internal 201 High High
5. Market Presence Internal 202 High High
6. Indirect Economic Impact External 203 High High
7. Anti-Corruption Internal 205 High High
8. Anti-Competitive Behaviour Internal 206 Low Low
9. Energy Consumption Internal 302 Moderate Moderate
Impact on Stakeholders
10. Water Management Internal 303 Moderate Moderate

11. Emissions Internal 305 Moderate Moderate
12. Waste Management Internal 306 High Moderate
13. Environmental Protection Internal 307 High Moderate
Labour Practices and
14. Grievances Internal 402 Moderate High
Occupational Health and
15. Safety Internal 403 High High
Employee Training and
16. Development Internal 404 High High
Diversity and Equal
17. Opportunity Internal 405 High High
About the Report

18. Community Development External 413 High High
Not Reported Briefly Reported Reported in Detail 19. Customer Health and Safety External 416 High High
Impact on Group 20. Product Labelling External 417 Moderate High
21. Product Responsibility Internal 417 High High
22. Regulatory Compliance Internal 417 Moderate Moderate
ANNEXURES
23. Customer Privacy External 418 High High
FIVE YEAR FINANCIAL
SUMMARY
Group Rs. ’000 2019 Rs. ’000 2020 Rs. ’000 2021 Rs. ’000 2022 Rs. ’000 2023 Group Rs. ’000 2019 Rs. ’000 2020 Rs. ’000 2021 Rs. ’000 2022 Rs. ’000 2023
Continuing Operations Key Indicators

Revenue 94,662,991 107,051,866 112,607,061 136,691,993 195,617,899 Growth in turnover (%) 3.69 13.09 5.19 21.39 43.11
Profit from operations 4,682,326 7,060,621 7,287,074 9,058,383 13,759,535 Growth in earnings (%) (38.94) 35.78 26.15 30.29 18.55
Profit before taxation 3,402,935 4,199,634 4,527,659 5,818,434 8,516,642 Operating profit to
Profit for the year 5,380,845 turnover (%) 4.95 6.60 6.47 6.63 7.03
260 2,033,813 2,761,419 3,483,639 4,538,720
Earnings to turnover (%) 2.15 2.58 3.09 3.32 2.75
Cargills Attributable to Return on total assets (%) 3.49 3.88 4.22 4.61 4.45
(Ceylon)
Owners of the Company 1,980,246 2,692,092 3,480,991 4,543,044 5,366,006 Growth in total assets (%) 10.11 22.18 15.99 19.19 22.70
PLC
Annual Non controlling interest 53,567 69,327 2,648 (4,324) 14,839 Growth in capital and
Report
2022/23 2,033,813 2,761,419 3,483,639 4,538,720 5,380,845 reserves (%) 6.67 2.35 25.03 26.83 6.17
Return on capital and
Financial Position reserves (%) 11.33 15.04 15.17 15.59 17.40
Stated capital 6,530,709 6,756,591 6,773,878 6,841,068 6,841,068 Return on investment (%) 11.70 15.21 16.86 17.43 17.92
Reserves 10,890,361 11,092,673 16,179,971 18,654,175 20,236,127 Earnings per share (Rs.) 7.68 10.45 13.51 17.63 20.82
Non controlling interest 521,831 515,554 6,874 3,626,272 3,840,612 Dividends per share (Rs.) 1.90 6.00 5.10 6.10 8.50
Capital and Reserves 17,942,901 18,364,818 22,960,723 29,121,515 30,917,807 Net assets per share (Rs.) 67.61 69.27 89.08 98.94 105.08
Current assets 21,632,870 21,832,167 23,123,652 27,178,089 38,110,346 Dividends paid per share (Rs.) 1.90 6.00 5.10 6.10 8.50
Current liabilities (34,365,900) (39,556,049) (38,945,230) (41,001,806) (59,656,935) Dividend payout (%) 24.56 57.33 37.75 34.60 40.40
Working capital (12,733,030) (17,723,882) (15,821,578) (13,823,717) (21,546,589) Dividends paid 486,400 1,543,326 1,311,996 1,571,834 2,190,261
Non current assets 36,642,556 49,375,858 59,468,926 71,265,687 82,676,336 Debt to equity ratio (times) 0.72 0.82 0.70 0.48 0.71
Non current liabilities (5,966,625) (13,287,158) (20,686,625) (28,320,455) (30,211,940) Interest cover (times) 3.29 2.69 2.90 3.33 2.09
Non controlling interest (521,831) (515,554) (6,874) (3,626,272) (3,840,612) Current ratio (times) 0.63 0.55 0.59 0.66 0.64
Net Assets Attributable Quick assets ratio (times) 0.34 0.29 0.29 0.30 0.26
to Equity Holders of the Capital additions 5,431,854 5,518,880 6,403,947 8,846,548 11,102,805
Parent 17,421,070 17,849,264 22,953,849 25,495,243 27,077,195
Market value per share as at
reporting date (Rs.) 200.00 170.00 235.00 182.50 233.00
Market capitalisation 51,200,000 43,727,577 60,468,908 47,026,186 60,038,911
a) Return on investment is computed by dividing the profit for the year by total average assets employed.
b) Debt to equity ratio is computed by dividing the total net borrowings by the shareholders’ funds.
c) Above per share details have been computed based on 257,677,731 shares in issue as at 31 March 2023.
ANNEXURES
INVESTOR 1. General
RELATIONS Stated capital Rs. 6,841,068,486
Issued shares 257,677,731
SUPPLEMENT Class of shares Ordinary shares
Voting rights One vote per ordinary share
2. Stock Exchange Listing

The issued ordinary shares of Cargills (Ceylon) PLC are listed in the Colombo Stock Exchange.
3. Distribution of Shareholders
Size of 31 March 2023 31 March 2022
261
Shareholders Holding Shareholders Holding
Number % Number % Number % Number % Cargills
(Ceylon)
PLC
1 – 1,000 1,305 65.02 191,184 0.07 1,377 65.04 213,131 0.08 Annual
Report
1,001 – 10,000 465 23.17 1,573,705 0.61 488 23.05 1,647,218 0.64 2022/23
10,001 – 100,000 179 8.92 5,308,041 2.06 192 9.07 5,741,415 2.23
100,001 – 1,000,000 44 2.19 13,711,385 5.32 49 2.31 14,288,033 5.54
1,000,001 and over 14 0.70 236,893,416 91.93 11 0.52 235,787,934 91.50
2,007 100.00 257,677,731 100.00 2,117 100.00 257,677,731 100.00
4. Analysis of Shareholders
Group of 31 March 2023 31 March 2022
Shareholders Holding Shareholders Holding
Number % Number % Number % Number %
Institutions 99 4.93 216,045,207 83.84 119 5.62 218,662,900 84.86

Individuals 1,908 95.07 41,632,524 16.16 1,998 94.38 39,014,831 15.14
Total 2,007 100.00 257,677,731 100.00 2,117 100.00 257,677,731 100.00
Residents 1,924 95.86 240,273,950 93.25 2,036 96.17 243,046,271 94.32

Non residents 83 4.14 17,403,781 6.75 81 3.83 14,631,460 5.68
Total 2,007 100.00 257,677,731 100.00 2,117 100.00 257,677,731 100.00
ANNEXURES
5. Share Valuation 7. Public Holding
The market price per share recorded during the year ended 31 March The percentage of shares held by the public and number of public shareholders as at 31 March 2023
Rs. 2023 Rs. 2022 is 18.60%. (2022 - 18.65%) and 1,990 (2022 - 2,070) respectively. The total number of shares in
issue is 257,677,731, of which Public Holding represents 48,018,144 shares. The float adjusted market
capitalisation amounts to Rs 11.17 Bn. Accordingly, the Company complies with the Minimum Public
Highest 247.00 260.00 Holding requirement of the Main Board as per Option 1 of Section 7.14.1 (a) of the CSE Listing Rules.
Lowest 150.00 175.00
Last traded price 233.00 182.50

6. Top 20 Shareholders
The holdings of the top 20 shareholders
31 March 2023 31 March 2022
262 Number of Number of
Shares % Shares %
Cargills
(Ceylon)
PLC
C T Holdings PLC 183,404,417 71.18 183,404,417 71.18
Annual
Report Mr V R Page 19,228,346 7.46 19,168,346 7.44
2022/23
Employees’ Provident Fund 8,407,333 3.26 8,407,333 3.26
Ms M M Page 6,322,224 2.45 5,892,552 2.29
Odeon Holdings (Ceylon) (Private) Limited 5,511,909 2.14 5,511,909 2.14
Mr A I Dominic 4,484,963 1.74 1,960,677 0.76
Seb Ab-Tundra Frontier Opportunities Fund 3,797,770 1.47 3,797,770 1.47
CITI Bank New York S/A Norges
A/C No. 2 3,595,773 1.40 3,595,773 1.40
Ceylon Guardian Investment Trust PLC -
A/C No. 2 1,807,002 0.70 1,807,002 0.70
GF Capital Global Limited 1,136,605 0.44 1,124,605 0.44
Dr A Aravinda Page 952,451 0.37 769,105 0.30
Serendip Investments Limited 910,788 0.35 760,788 0.30
Deutsche Bank AG as Trustee for
JB Vantage Value Equity Fund 682,675 0.26 770,675 0.30
Sir Chittampalam A Gardiner Trust 643,474 0.25 643,474 0.25
East India Holding (Pvt) Ltd. 564,103 0.22 – –
Mr T Nadesan 553,467 0.21 453,467 0.18
Mr P E Muttukumaru 527,000 0.20 527,000 0.20
Investor Relations Supplement
J B Cocoshell (Pvt) Ltd. 524,167 0.20 461,317 0.18

Mr J C Page 520,000 0.20 520,000 0.20
Hatton National Bank PLC -
Senfin Growth Fund 500,210 0.19 500,210 0.19
244,074,677 94.72 240,076,420 93.17
Others 13,603,054 5.28 17,601,311 6.83
Total 257,677,731 100.00 257,677,731 100.00
ANNEXURES
GROUP Location
Land
Extent
Building
Area (Sq.Ft.)
Valuation/cost
Rs. ’000
Year of
Valuation Location
Land
Extent
Building
Area (Sq.Ft.)
Valuation/cost
Rs. ’000
Year of
Valuation
REAL ESTATE
Cargills (Ceylon) PLC CPC Lanka Limited
PORTFOLIO Colombo 1 140.75 Perches 124,215 3,095,500 2021 Katoolaya estate,
Staple Street – Thawalantenne 4 Acres 19,961 67,000 2021
Colombo 2 81.5 Perches 20,970 1,022,300 2023
Cargills Quality Dairies (Private) Limited
Braybrooke Place 78.17 Perches 5,146 767,666 2023 Mirigama, Baduragoda 100.2 Perches – 20,040 2021
Canal Row - Colombo 1 15.25 Perches 12,300 419,696 2023 Mirigama, Baduragoda 38.51 Perches 1,476 13,100 2021
Cargills Square - Jaffna Leasehold 99,164 1,057,182 2023
Kotmale Dairy Products (Private) Limited
Cargills Foods Company (Private) Limited Mulleriyawa 1.7 Acres 35,528 328,717 2021
Kandy 87.96 Perches 25,174 1,426,400 2021 Bogahawatta 1 Acres 33,221 485,750 2021
Maharagama 145.3 Perches 15,827 683,700 2021 Hatton 17.5 Acres 14,569 104,422 2021
263
Nuwara Eliya 56.5 Perches 9,617 307,100 2021 Cargills
Frederick North Hotel Company Limited (Ceylon)
Mattakkuliya (111) 330 Perches 80,967 848,000 2021 Boralesgamuwa 2.5 Acres 23,168 461,956 2023 PLC
Park Road – 4,610 64,800 2021 Annual
The Empire Investments Company (Private) Limited Report
Kohuwala 28.65 Perches 6,225 173,000 2021 2022/23
Bandarawela 85.2 Perches 63,653 1,275,374 2023
Mattakkuliya (141) 287.96 Perches 44,469 589,800 2021
Katubedda 1.15 Acres 47,171 1,828,914 2023
Moratuwa 78.6 Perches 7,475 385,765 2021
Dematagoda 84.32 Perches 71,956 1,290,928 2023
Ingiriya (Lot A,C,D,B1) 26 Acres 1,300 248,858 2021
Gampaha 82.6 Perches 43,115 598,604 2023
Katana 28.8 Acres – 760,750 2021
Negombo 91 Perches 17,534 307,500 2023
Cargills Quality Foods Limited Kandy 170 Perches 937 811,010 2023
Ja-Ela - Ganemulla 5.03 Acres 41,833 486,515 2021 Bare land - Kandy 11.3 Perches – 81,360 2023
Ja-Ela - Ganemulla 257 Perches – 5,624 –
C T Real Estate (Private) Limited
Mattakkuliya 1.3 Acres 17,881 517,114 2023
Piliyandala (193) 114 Perches – 112,100 2023
Ja-Ela - Ma Eliya 4 Acres 18,643 236,455 2022
Commercial property -
Marawila 3.03 Acres 22,869 140,913 – Piliyandala 154.9 Perches 21,278 145,376 2023
Cargills Agrifoods Limited C T Properties Lakeside (Private) Limited

Katana 11.3 Acres 76,059 594,240 2021 Boralesgamuwa 43 Acres 11,400 1,200,000 2023
Millers Limited C T Properties G S (Private) Limited

Kelaniya 1.5 Acres 55,770 495,000 2021 Kotahena 199.8 Perches – 1,568,430 2023
Nittambuwa 112 Perches – 166,750 2023
ANNEXURES
NOTICE OF Notice is hereby given that the Seventy Seventh Annual General Meeting of
Cargills (Ceylon) PLC (the Company) will be held at the Institute of Chartered
The Annual Report and Financial Statements of Cargills (Ceylon) PLC for the
year ended 31 March 2023 are available on the:
ANNUAL Accountants of Sri Lanka, No. 30A Malalasekara Mawatha, Colombo 07 on Friday,
28 July 2023, at 9.00 a.m and the business to be brought before the meeting - Corporate website : https://www.cargillsceylon.com/investors/annual-reports/
GENERAL will be: Cargills_Ceylon_PLC_Annual_Report_2022_2023.pdf

- The Colombo Stock Exchange : https://www.cse.lk/home/company-info/
MEETING To read the Notice convening the Meeting, and CARG.N0000/financial
1. To receive and consider the Annual Report of the Directors and the
The said Annual Report and Financial Statements of Cargills (Ceylon) PLC for
Financial Statements for the year ended 31 March 2023, with the Report of
2022/23 can also be accessed by scanning the following QR code.
the Auditors thereon.
2. To re-elect Directors
(a) Mr J C Page and
(b) Mr S Gardiner who retire by rotation in terms of the Company’s Articles
of Association and, being eligible, offer themselves for re-election and
264
(c) Mr L R Page,
Cargills (d) Mr A T P Edirisinghe, and Taking into consideration the waiver of the CSE Listing Rule 7.5 (b)(i) in relation
(Ceylon) to providing hard copies of the Annual Report for the financial year ended
PLC (e) Mr E A D Perera who retire in terms of Section 210 (2) (b) of the 31 March 2023, the members are advised to refer to the two websites noted
Annual Companies Act No. 07 of 2007 having surpassed seventy years of age above, as a printed copy of the Annual Report will not be provided on request
Report
2022/23 and offer themselves for re-election in terms of Section 211 (1) and (2) due to the limited availability of paper in the market.
of the Companies Act No. 07 of 2007 with the unanimous support of
the other Directors. For any inquiries or clarifications, please contact Mr Mansoor on + 94 74 0635 624
Ordinary Resolution (i) during normal office hours (8.30 a.m. to 5.00 p.m.).
“Resolved that Mr L R Page, a retiring Director, who has attained the age
of seventy three years be and is hereby reappointed a Director of the By Order of the Board
Company and it is hereby declared that the age limit of seventy years Cargills (Ceylon) PLC
referred to in Section 210 of the Companies Act No. 07 of 2007 shall
not apply to the appointment of the said Director”,
Ordinary Resolution (ii)
“Resolved that Mr A T P Edirisinghe, a retiring Director, who has attained
the age of seventy seven years be and is hereby reappointed a Director
H S Ellawala
of the Company and it is hereby declared that the age limit of seventy
Company Secretary
years referred to in Section 210 of the Companies Act No. 07 of 2007
5 July 2023
shall not apply to the appointment of the said Director”, and
Ordinary Resolution (iii) Notes:
“Resolved that Mr E A D Perera, a retiring Director, who has attained the (i) A member is entitled to appoint a proxy to attend and vote at the meeting
age of seventy seven years be and is hereby reappointed a Director in his or her stead and the proxy need not be a member of the Company. A
of the Company and it is hereby declared that the age limit of seventy Form of Proxy is enclosed for this purpose.
years referred to in Section 210 of the Companies Act No. 07 of 2007 (ii) The duly completed instrument appointing the proxy should be deposited
shall not apply to the appointment of the said Director” at the Registered Office of the Company not less than 48 hours before the
3. To authorise the Directors to determine contributions to charities for the date of the meeting.
financial year 2023/24
4. To authorise the Directors to determine the remuneration of the Auditors,
Messrs. KPMG, who are deemed reappointed as Auditors at the Annual
General Meeting of the Company in terms of Section 158 of the Companies
Act No. 07 of 2007
ANNEXURES
NOTES
265
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
ANNEXURES
266
Cargills
(Ceylon)
PLC
Annual
Report
2022/23
ANNEXURES
FORM OF *I/We (name of the shareholder/s) ………………………………………………………………………………………………...............................................................................................................................................................……………………………………..............
PROXY Holder of NIC/Passport/Company Registration No./s ……………..............................................……………………........................................................................................................................… of (address of shareholder/s)
SEVENTY SEVENTH ......................................................……………………………………..................................................................................................................................................................................................................................................................................................................................
ANNUAL GENERAL
being a *shareholder/s of Cargills (Ceylon) PLC (the Company) hereby appoint:
MEETING
Please indicate your preference with a
(PQ 130) Name of the proxy holder: *Mr/Mrs/Miss ..............................................................................................................................................................................................................................................................................................
Holder of NIC/Passport/Company Registration No./s ..............................................................................................................................................................................................................................................................................................
of (address of shareholder/s) ..............................................................................................................................................................................................................................................................................................
Mobile number of proxy holder: ..............................................................................................................................................................................................................................................................................................

Cargills
OR failing him/her (Ceylon)
PLC
The Chairman of the Meeting as my/our Proxy to represent me/us and to vote for on my/our behalf at the seventy seventh Annual General Meeting of the Company Annual
Report
to be held on Friday, 28 July 2023 and at any adjournment thereof. 2022/23
Please mark your preference with “X”

No. Resolution For Against
1. To receive and consider the Annual Report of the Board of Directors and the Financial Statements
for the year ended 31 March 2023, with the report of the Auditors thereon.
2a. To re-elect Mr J C Page as a Director
2b. To re-elect Mr S Gardiner as a Director
2c. To re-elect Mr L R Page as a Director
2d. To re-elect Mr A T P Edirisinghe as a Director
2e. To re-elect Mr E A D Perera as a Director
3. To authorise the Directors to determine contributions to charities for the financial year 2023/24
4. To authorise the Directors to determine the remuneration of the Auditors, Messrs KPMG who are deemed re-appointed as
Auditors at the Annual General Meeting of the Company in terms of Section 158 of the Companies Act No. 07 of 2007.
Signed on this …………......................................................................................................................……. day of …...............................................................................................………………. 2023
Signature/s of shareholder/s …………………………………………………………………………………………………… NIC/PP/Co.Reg.No. of shareholder/s ………………………………………………………………………………………………………………
Witnesses: ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
ANNEXURES
NOTES:
(a) *Strike out whichever is not desired
(b) Instructions as to completion of the Form of Proxy are set out below
(c) A Proxy holder need not be a Member of the Company
(d) Please indicate with an “X” in the cage provided how your Proxy holder should vote. If no indication
is given, or if there is, in the view of the Proxy holder, any doubt (by reason of the manner in which
the instructions contained in the Proxy have been completed) as to the way in which the Proxy
holder should vote, the Proxy holder in his/her discretion may vote as he/she thinks fit
INSTRUCTIONS FOR COMPLETION OF THE PROXY FORM

1. To be valid, the completed Form of Proxy should be deposited at the Registered Office of
the Company at No. 40, York Street, Colombo 1, or an electronic document with e-signature or
scan of the signed document emailed to [email protected], with the subject title
“CCP-AGM 2023” not less than 48 hours before the time appointed for the holding of the Meeting.
2. In perfecting the form, please ensure that all details are legible. If you wish to appoint a person
Cargills other than the Chairman as your proxy, please fill in your full name and address, the name and
(Ceylon)
PLC address of the proxy holder and sign in the space provided and fill in the date of signature.
Annual 3. The instrument appointing a Proxy shall, in the case of an individual, be signed by the appointer or
Report
2022/23 by his Attorney and in the case of a Corporation must be executed under its Common Seal or in
such other manner prescribed by its Articles of Association or other constitutional documents.
4. If the Proxy Form is signed by an Attorney, the relevant Power of Attorney or a notarially certified
copy thereof, should also accompany the completed Form of Proxy, if it has not already been
registered with the Company.
5. In the case of joint holders, only one needs to sign. The votes of the senior holder who tenders a
vote will alone be counted.
6. In the case of non-resident Shareholders, the stamping will be attended to upon return of the
completed form of proxy to Sri Lanka.
Form of Proxy
ANNEXURES
CORPORATE
INFORMATION
Name of Company Related Party Transactions Subsidiary Companies*

Cargills (Ceylon) PLC Review Committee
Cargills Agrifoods Limited
Asite Talwatte (Chairman)
Company Registration No. Cargills Agro Development Company (Private) Limited
PQ 130 Priya Edirisinghe
Cargills Distributors (Private) Limited
Errol Perera
Cargills Enterprise Solutions (Private) Limited
Legal Form Yudhishtran Kanagasabai
Quoted public company with Cargills Food Processors (Private) Limited
limited liability, incorporated in Cargills Food Services (Private) Limited
Stock Exchange Listing
Sri Lanka on 1 March 1946. Cargills Foods Company (Private) Limited
Colombo Stock Exchange
Board of Directors Cargills Frozen Products (Private) Limited
Registered Office Cargills Quality Confectioneries (Private) Limited
Louis Page (Chairman) 40, York Street, Colombo 1,
Ranjit Page (Deputy Chairman/ Sri Lanka Cargills Quality Dairies (Private) Limited
Group CEO) Telephone : +94 (0) 11 242 7777 Cargills Quality Foods Limited
Imtiaz Abdul Wahid (Group Facsimile : +94 (0) 11 233 8704 C P C (Lanka) Limited
Managing Director/Deputy CEO) E-mail : [email protected]
C T Properties Limited
Priya Edirisinghe Postal Address C T Properties G S (Private) Limited
Sanjeev Gardiner P.O. Box 23, Colombo 1 C T Real Estate (Private) Limited
Joseph Page C T Property Management Company (Private) Limited
Auditors
Errol Perera KPMG C T Properties Lakeside (Private) Limited
Yudhishtran Kanagasabai Chartered Accountants Dawson Office Complex (Private) Limited
Asoka Pieris Frederick North Hotel Company Limited
Bankers
Indira Malwatte Kotmale Dairy Products (Private) Limited
Bank of Ceylon
Asite Talwatte Cargills Bank Kotmale Holdings PLC
Dilantha Jayawardhana Commercial Bank of Ceylon
Kotmale Milk Foods Limited
Deutsche Bank
DFCC Bank Kotmale Milk Products Limited
Company Secretary
Hemali Sagarika Ellawala Habib Bank Kotmale Products Limited
HNB Bank Millers Limited
Remuneration Committee HSBC Bank
MCB Bank The Empire Investments Company (Private) Limited
NDB Bank
Priya Edirisinghe Nations Trust Bank Associate Companies*
Pan Asia Bank Cargills Bank Limited
Indira Malwatte
People’s Bank
Audit Committee Sampath Bank
Seylan Bank
Standard Chartered Bank
Priya Edirisinghe Union Bank
Errol Perera
Yudhishtran Kanagasabai
* All Companies are incorporated and carrying out business operations in Sri Lanka.
Cargills (Ceylon) PLC No. 40, York Street, Colombo 01. Tel : +94 112427777, +94 11 2427500

Our Value Creation Story

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Our Value Creation Story

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O U R VA L U E C R E AT I O N S T O R Y

HOLDING TRUE TO OUR PURPOSE

by enhancing local and global markets.

THE NATIONAL 56 COMMUNITY FRIENDLY

AFFAIRS OF THE COMPANY

ENCLOSED - FORM OF PROXY

INNER BACK COVER –

From a traditional retailer demographic. At its inception in 1844, Cargills

to a leading food company business.

serving the needs of the

The Cargills Journey

“Another example of a leap-of-faith goal

In 1993, we ventured into the smallgoods

The Cargills Journey

of the market share. Eight years later in 2010, we

The Cargills Journey

international franchise to the North for the first

The Cargills Journey

The Cargills distribution centre

Mr William Milne and Mr David Sime market PLC

2010 2013 2014

2017 2018 2019 2020

27,178,089 40.22 2,923,751 61.00

Current assets 38,110,346 4,707,285

Current liabilities 59,656,935 41,001,806 45.50 8,028,976 4,199,696 91.18

Non-current liabilities 30,211,940 28,320,455 6.68 4,963,394 6,280,719 (20.97)

Capital and reserves, minority interest and

Dividends per share 8.50 6.10 39.34 8.50 6.10 39.34

- Investing activities (9,469,239) (11,437,225) 3,137,753 (635,597)

AAA Brand 11,033

BUSINESS 50:50 gender

32 new Cargills Food City 10,000+ 283 MT

for high quality produce and

chains Rs. healthier value-added

Partnered with state 8,802,270/- food and beverage options

Business Impact Highlights

Local suppliers Physical visit

Suppliers HORECA and

SUPPORTING THE NATIONAL

MANAGING DIRECTOR’S MESSAGE

MANAGING DIRECTOR’S MESSAGE

MANAGING DIRECTOR’S MESSAGE

Members of the Cargills Team across the

capacities, which facilitated uninterrupted

availability despite our best efforts.

Retail Outlet Growth

all year round for enhanced customer experience

Produce Collection Centres Processing Centres

1. Nuwara Eliya Vegetable and Fruit Processing Unit (VPU)

Local suppliers Physical visit

network fresh produce

sector, the Company draws from multiple

The Food and Beverage Manufacturing

Dairy KIST Product Range Convenience Food

of its production operation. The

FOOD AND BEVERAGE

Suppliers HORECA and

Cargills Quality Foods Goldi, Sam’s, Finest – Fresh and Processed

Cargills Quality KIST, KIST Magic Biscuits and