Lucky

Prospectus
Lucky Lanka
Milk Processing Co. Ltd
Initial Public Offering
38,000,000 Ordinary Voting Shares @ LKR 6 per share and
24,000,000 Ordinary Non-Voting Shares @ LKR 3 per share
To be listed on the Diri Savi Board of the Colombo Stock Exchange
Managers and Registrars to the Issue
Corporate Advisory & Capital Markets Division

Level 18, Bank of Ceylon Merchant Tower
No. 28, St. Michael's Road, Colombo 03
PROSPECTUS
This Prospectus is dated 20th June 2014
This Prospectus has been prepared by Merchant Bank of Sri Lanka PLC (MBSL) on behalf of
Lucky Lanka Milk Processing Company Limited (the Company) from the information supplied
by the Company, its Directors, its management and information publicly available. The
Company and its Directors having made all reasonable inquiries, confirm that to the best of
their knowledge and belief, the information contained herein is true and correct in all material
respects and that there are no other material facts, the omission of which would make any
statement herein misleading. While MBSL has taken reasonable care to ensure full and fair
disclosure, MBSL does not assume responsibility for any investment decision made by the
investors based on the information contained herein. In making an investment decision,
prospective investors must rely on their own examination and assessments of the Company,
including the risks involved.
No person is authorized to give any information or make any representation not contained in
this Prospectus and if given or made, any such information or representation must not be
relied upon as having been authorized by MBSL or the Company.
The delivery of this Prospectus shall not under any circumstance

constitute a representation or create any implication or suggestion that
there has been no material change in the affairs of the Company since
the date of this Prospectus
If you are in any doubt regarding the contents of this document or if you
require any advice in this regard, you should consult your Stock Broker,
Bank Manager, Lawyer or any other Professional Advisor.
The Colombo Stock Exchange (CSE) has taken reasonable care to

ensure full and fair disclosure of information in this Prospectus.
However, the CSE assumes no responsibility for the accuracy of the
statements made, opinions expressed or reports included in the
Prospectus. Moreover, the CSE does not regulate the pricing of the
shares, which is decided solely by the Company / Issuer.
Prospectus Lucky Lanka Milk Processing Co. Ltd. Initial Public Offering
REGISTRATION
A copy of this Prospectus has been delivered to the Registrar of Companies of Sri Lanka for
registration in accordance with the provisions contained in the Companies Act No. 07 of 2007.
The following documents were attached to the copy of the Prospectus delivered to the
Registrar of Companies:
The written consent of the Companys Lawyers, Bankers and the Bankers to the Issue
for inclusion of their names in the Prospectus.
The written consent of the Companys Auditors/Reporting Accountants for inclusion of
their name and their Reports / Financial Statements in the form and context in which it is
included in the Prospectus.
The written consent of the Managers and Registrars to the Issue for inclusion of their
name and their Report / Statement in the form and context in which it is included in the
Prospectus.
A declaration made by each of the Directors of the Company confirming that each of
them have read the provisions of the Companies Act relating to the issue of the
Prospectus and that those provisions have been complied with.
The Company's Lawyers, Principal Banker and the Bankers to the Issue have given and have
not before the delivery of a copy of the Prospectus for registration withdrawn their written
consent for inclusion of their names in the Prospectus.
The Company's Auditors/ Reporting Accountants have given and have not before the delivery
of a copy of the Prospectus for registration withdrawn their written consent for inclusion of
their name and for inclusion of their Reports/Financial Statements in the form and context in
which it is included in the Prospectus.
The Managers and Registrars to the Issue have given and have not before the delivery of a
copy of the Prospectus for registration withdrawn their written consent for inclusion of their
name and for inclusion of their Report/Statement in the form and context in which it is included
in the Prospectus.
This Prospectus has not been registered with any authority outside Sri Lanka.
This issue as contemplated in this Prospectus is made in Sri Lanka and is subject to the
exclusive jurisdiction of the Courts of Sri Lanka.
CONTENTS
Corporate Information ............................................................................... 01
The Issue at a Glance ................................................................................ 03
Definitions / Abbreviations and Interpretations ...................................... 07
1.0 INFORMATION CONCERNING THE ISSUE .................................... 09

1.1. Invitation to Subscribe ..................................................................... 09
1.2. Objectives of the Issue .................................................................... 10
1.3. Listing .............................................................................................. 11
1.4. Subscription List .............................................................................. 12
1.5. Basis of Allotment ............................................................................ 12
1.6. Cost of the Issue ............................................................................. 13
1.7. Underwriting ..................................................................................... 14
1.8. Inspection of Documents ................................................................. 14
1.9. Brokerage ........................................................................................ 14
2.0 PROCEDURE FOR APPLICATION .................................................. 15

2.1. Who May Apply ................................................................................ 15
2.2. How to Apply .................................................................................... 15
2.3. Mode of Payment ............................................................................ 18
2.4. Rejection of Applications .................................................................. 21
2.5. Refunds ........................................................................................... 22
2.6. CDS Lodgements and Trading of Shares ........................................ 23
3.0 THE COMPANY ................................................................................. 25

3.1. An Overview of the Company .......................................................... 25
3.2. Stated Capital .................................................................................. 37
3.3. Transferability of Shares ................................................................. 39
3.4. Takeover Offers ............................................................................... 40
3.5. Future Strategies ............................................................................. 40
3.6. Assumptions and Risks Associated with Future Strategies ............. 42
3.7. Litigation, Disputes and Contingent Liabilities ................................. 42
3.8. Details of Benefits Paid to Promoters .............................................. 42
3.9. Details of Commissions / Brokerage paid ....................................... 43
3.10. Dividend Policy ................................................................................ 43
3.11. Taxation ........................................................................................... 43
3.12. Particulars of Debt and Loan Capital ................................................ 43
3.13. Degree of Dependence on Key Customers and Suppliers .............. 44
3.14. Management Agreements ............................................................... 44
4.0 DIRECTORS ...................................................................................... 45
4.1. The Board of Directors of the Company as at date .......................... 45
4.2. Directors Shareholdings in the Company ......................................... 47
4.3. Directors' Remuneration ................................................................... 47
4.4. Directors' Involvement in Litigation and Offences ............................ 47
4.5 Directors' Interests ........................................................................... 48
5.0 HUMAN RESOURCE ........................................................................ 49

5.1. Employees ........................................................................................ 49
5.2. Chief Executive Officer ..................................................................... 49
5.3. Senior Management ......................................................................... 54
5.4. Remuneration of the Senior Management ....................................... 54
6.0 CORPORATE GOVERNANCE PRACTICES .................................... 55
7.0 THE DAIRY SECTOR ........................................................................ 57
8.0 DECLARATIONS ............................................................................... 61

8.1. Declaration by the Directors ............................................................. 61
8.2. Declaration by the Company ............................................................ 62
8.3. Declaration by the Managers to the Issue ....................................... 62
9.0 ANNEXURES
Annexure 1 - Accountant's Report and Five Year Summary ............................. 63
Annexure 2 - Audited Financial Statements for the Financial Year ended 31 March 2013 .. 73
Annexure 3 - Unaudited Financial Statements for the Financial Year ended 31 March 2014 .. 101
Annexure 4 - Collection Points ..................................................................... 111
Annexure 5 - Custodian Banks ....................................................................... 135
01
CORPORATE INFORMATION
The Company / Issuer Lucky Lanka Milk Processing Company Limited
Registered Address & Contacts Bibulawela, Karagoda Uyangoda

Tel: 0094 41 2292652, 0094 41 2293031-2
Hotline: 0094 41 2232323
Fax: 0094 41 2292831
E mail: [email protected]
web: www.luckylanka.com
Company Registration Number PB 3006
Date, Place and Authority of Incorporated as a Limited Company under the

Incorporation Companies Act No. 07 of 2007 on 15 June
2007 in Colombo.
Directors Mr. Lal Keerthi Amarasiri Gunawardhana

Mr. D. B. S. Chamara Bandara
Dr. L. J. P Anura Prasanna Jayasooriya
Ms. Namali Amarasiri Gunawardhana
Ms. Daisy Amarasiri Gunawardhana
Ms. Bhadra Amarasiri Gunawardhana
Company Secretary Managers & Secretaries (Pvt) Ltd

No. 08, Tickell Road
Colombo 08
Tel: 0094 11 5579900
Reporting Ernst & Young

Accountants/Auditors Chartered Accountants
No. 16/1, Alawella Road
Off Dharmapala Mawatha, Matara
Tel: 0094 41 2220934
02
Lawyers Gowers International Legal Consultants &
Corporate Lawyers
No. 07, Gower Street
Colombo 05
Tel: 0094 11 2594681
Bankers Commercial Bank of Ceylon PLC

Kamburupitiya Branch
No. 151, Matara Road
Kamburupitiya
Tel: 0094 41 2292994
DFCC Vardhana Bank PLC

Matara Branch
No. 05, Hakmana Road
Matara
Tel: 0094 41 2225500
Union Bank of Colombo PLC

No. 17, Station Road
Matara
Tel: 0094 41 2228441-4
03
THE ISSUE AT A GLANCE

THE COMPANY/ISSUER Lucky Lanka Milk Processing Company Limited
NUMBER AND TYPE OF 38,000,000 Ordinary Voting Shares
SECURITIES TO BE ISSUED 24,000,000 Ordinary Non-Voting Shares
ISSUE PRICE LKR 6 per Ordinary Voting Share and LKR 3 per
Ordinary Non-Voting Share
MINIMUM SUBSCRIPTION PER 1000 Ordinary Voting Shares (LKR 6,000) or
APPLICATION 1000 Ordinary Non-Voting Shares (LKR 3,000)
Applications in excess of the minimum subscription

shall be in multiples of 1000 shares of any class of
shares applied
Applicants have the option of applying for either

class of shares or in combination of both classes of
shares using separate Application forms
The minimum subscription of 1000 shares will be

allotted to all successful applicants of both classes
of Shares (Ordinary Voting shares and Ordinary
Non-Voting shares).
AMOUNT TO BE RAISED LKR 228,000,000 from the issue of Ordinary Voting

Shares and LKR 72,000,000 from the issue of
Ordinary Non-Voting Shares
DATE OF OPENING OF THE 07 July 2014
ISSUE
CLOSING DATE 24 July 2014 or such other earlier date in terms of

section 1.4 of this Prospectus
BASIS OF ALLOTMENT The basis of allotment is detailed in Section 1.5 of

this Prospectus
04
MANAGERS AND REGISTRARS Merchant Bank of Sri Lanka PLC
TO THE ISSUE Corporate Advisory & Capital Markets Division
No. 28, St. Michaels Road, Colombo 03
Tel: 0094 11 4711711 Fax: 0094 11 4711741
BANKERS TO THE ISSUE Bank of Ceylon

Corporate Branch
No. 04, Bank of Ceylon Mawatha
Colombo 01
Te: 0094 11 2203113
05
IMPORTANT
All Applicants should indicate in their Application for subscription of Shares, their NIC number or
the Company registration Number (as the case maybe). The Passport number may be indicated
only if the Applicant does not have a National Identity Card number.
As per the Directive of the Securities and Exchange Commission of Sri Lanka made under
Circular No. 08/2010 dated 22 November 2010 and Circular No.13/2010 dated 30 November
2010 issued by the Central Depository System (Private) Limited, all Shares shall be directly
uploaded to the CDS, and hence all Applicants should indicate their CDS Account number in
their Application Form for subscription of Shares.
Applicants who do not have a CDS Account are advised to open a CDS Account prior to making
the Application, in order to facilitate the uploading of allotted Shares to the CDS.
A CDS Account could be opened through any Member/ Trading Member of the CSE, set out in
Annexure 4 or through any Custodian Bank set out in Annexure 5 of this Prospectus.
PLEASE NOTE THAT UPON THE ALLOTMENT OF SHARES UNDER THIS ISSUE THE
ALLOTTED SHARES WOULD BE CREDITED TO THE APPLICANT'S CDS ACCOUNT
INDICATED IN THE APPLICATION FORM.
PLEASE NOTE THAT SHARE CERTIFICATES WILL NOT BE ISSUED.
APPLICATIONS WHICH DO NOT CARRY THE CDS ACCOUNT NUMBER, WHICH IS NOT
OPENED AT THE TIME OF THE CLOSURE OF THE SUBSCRIPTION LIST OR WHICH
INDICATE AN INCORRECT/ INACCURATE CDS ACCOUNT NUMBER WILL BE REJECTED,
AND NO ALLOTMENT WILL BE MADE.
Applicants have the option of having their shares locked * in the CDS as detailed below.
Shares that are locked* will not be available for trading purposes and will not be visible to the
participant. Such applicant will have to fill in the relevant section provided in the Application
Form for this purpose. If the applicant has not specified that his/her shares need to be deposited
to his/her locked* balance in the CSD Account, please note that the said shares would be
deposited to Applicants trading balance in the CDS Account.
Operation of a Locked Balance in the CDS
In order to preserve the confidentiality of shareholder information and to ensure that securities
are not made available for trading for those shareholders who do not want to trade the
securities, the CDS provides a mechanism where securities can be locked in the CDS
Account.
The CDS maintains two balances for each CDS account, namely a trading balance and a locked
balance. The trading balance would be visible to the CDS participant and all dealings and
trading would be permitted on the said trading balance, as done normally.
As opposed to the trading balance, the locked balance will not be visible to the CDS participant
and all dealings on such locked balance would be suspended thereby maintaining the
confidentiality of the information and also safeguarding the account holder from an
unauthorized sale by a broker.
At the option and request of an account holder, the CDS would transfer a named quantity of
shares from the locked balance to the trading balance of a CDS account and/or from the trading
balance to the locked balance.
07
DEFINITIONS / ABBREVIATIONS
AND INTERPRETATIONS
Application Form: The Application Forms (Form A and B) issued with this Prospectus and /
or photocopies of the Application Forms issued with this Prospectus for
subscription of the Shares of the Company.
?
Form A Application for Subscription of Ordinary Voting Shares
?
Form B Application for Subscription of Ordinary Non Voting Shares
Bn Billion
BOC Bank of Ceylon
Company/Issuer /LLMP Lucky Lanka Milk Processing Company Limited
CAGR Cumulative Annual Growth Rate
CBSL Central Bank of Sri Lanka
CDS Central Depository Systems (Pvt) Ltd
CSE Colombo Stock Exchange
GOSL Government of the Democratic Socialist Republic of

Sri Lanka
IPO Initial Public Offer
Issue The Issue of Ordinary Voting Shares and Ordinary Non-

Voting Shares of the Company to the Public as envisaged by
this Prospectus
LCB Licensed Commercial Bank
LKR Sri Lankan Rupees
LSB Licensed Specialised Bank
Market Day Any day on which the Colombo Stock Exchange is open
for trading
08
MBSL Merchant Bank of Sri Lanka PLC
Mn Million
NIC National Identity Card
Offer Invitation for the subscription of up to 38,000,000 Ordinary

Voting Shares and 24,000,000 Ordinary Non-Voting Shares
of the Company at LKR 6 per Ordinary Voting Share and
LKR 3 per Ordinary Non-Voting share as envisaged by this
Prospectus
POA Power of Attorney
Register The Register of the Shareholders to be kept by the Company
Registered Address The address provided by the Shareholders to the CDS
RTGS Real Time Gross Settlements
SEC Securities & Exchange Commission of Sri Lanka
SIA Securities Investment Account
SLIPS Sri Lanka Inter Bank Payment System
SME Small and Medium Enterprise
Unit holder An individual who has made an investment in units not

exceeding the value of LKR 10,000,000/- in a particular unit
trust fund that subscribes for Shares
[Ref: SEC/LEG/11/06/01]
Working Day Any day (other than a Saturday, Sunday or any statutory
holiday) on which the Banks are open for business in Sri
Lanka
Shares The Term Shares shall mean either class of Shares of the
Company (i.e Ordinary Voting Shares of the Company or
Ordinary Non Voting Shares of the Company), unless the
context otherwise requires
09
1.0 INFORMATION CONCERNING

THE ISSUE
1.1 Invitation to Subscribe
Pursuant to a Resolution passed on 25 March 2014 by the Board of Directors and the Special
Resolution passed on 25 March 2014 by the shareholders of Lucky Lanka Milk Processing
Company Limited (hereinafter sometimes referred to as the Company), the Company
invites applications from the public for the subscription of up to
?
Thirty Eight Million (38,000,000) Ordinary Voting Shares of the Company @
LKR 6 per share and
? Twenty four Million (24,000,000) Ordinary Non-Voting Shares of the Company @
LKR 3 per share
payable in full on application on the terms and conditions set out in this Prospectus.
The Company and the Directors are of the opinion that the issue price of LKR 6 per Ordinary
Voting Share and LKR 3 per Ordinary Non-Voting Share of the Company is fair and
reasonable to the Company and to all existing shareholders of the Company.
Applicants shall have the option of applying for either class of shares or for a combination of
both classes of shares using separate Application Forms. The minimum subscription shall be
1000 Ordinary Voting Shares at LKR 6 per share or 1000 Ordinary Non-Voting Shares at LKR
3 per share. Applications in excess of the minimum subscription shall be in multiples of 1000
shares of any class of shares applied.
The new Ordinary Voting Shares to be issued pursuant to this offer shall rank equal and pari-
passu in all respects with the existing issued Ordinary Voting Shares of the Company from the
date of issue of such new shares.
Each Ordinary Voting Share of the Company shall confer on the holder of such shares, the
right to one vote on a poll at a meeting of the Company on any resolution, the right to an equal
share in any dividends declared to Ordinary Voting Shareholders of the Company and in the
event of liquidation of the Company the right to an equal share in any surplus assets of the
Company available for distribution to ordinary shareholders after paying all the creditors of
the Company and all other claims and debts in accordance with the provisions contained in
10
the Companies Act No. 7 of 2007 and the Articles of Association of the Company.
The Ordinary Non-Voting Shares to be issued pursuant to this offer will not confer on the
holders of such shares any Voting rights at the meetings of the Company and the said
Ordinary Non-Voting Shares shall rank equal and pari-passu in all other respects with the
issued Ordinary Voting Shares of the Company, provided however that in the event of
declaration of any dividends the holders of the Ordinary Non-Voting Shares shall be entitled
to receive any dividend that may be declared by the Company in respect of the Ordinary Non-
Voting Shares and in the event of any rights issue or issue of shares by way of capitalization of
reserves, the holders of the Ordinary Non-Voting Shares would be entitled only to Ordinary
Non-Voting Shares
Whenever the Company declares a dividend in respect of Ordinary Voting Shares, the
Company will also at the same time declare a dividend in respect of Ordinary Non-Voting
Shares issued pursuant to this Prospectus. The applicable dividend rate (dividend per share)
would be the same in respect of both classes of shares.
1.2 Objectives of the Issue
To provide an opportunity to the public to participate in the equity of the Company

which in turn will broad base the ownership and allow the Company greater access to
the capital market of Sri Lanka
The funds raised from the IPO will be utilized in the following manner;
Fund
Amount
Utilization
Description (LKR
period in the
Million)
year 2014
Settlement of long term liabilities

200 July/August
(As per the details given below)
Improvement of the existing production plant

?
New cold room complex with an ammonia refrigeration
system LKR 35 Mn
? Extension to the existing UHT milk processing building - 75 August
LKR 30 Mn
? New machinery including conveyer systems & pigging
systems LKR 10 Mn
Implementation of the new projects - Gedarata Kiri , Milk

Bar Outlet and School Canteen July
25 to
(Details of the said projects are given in section 3.5 of this November
prospectus)
11
The Company intends to settle the following long term liabilities from the IPO funds due to
high finance cost.
Name of the Financial Amount outstanding as at

Type of the Loan
Institute 31-03-2014 (LKR)
Nation Trust Bank Finance Leases 5,662,805
Asia Assets Finance PLC Finance Leases 13,238,410
Mercantile Investment PLC Finance Leases 16,582,127
Union Bank PLC Term Loan 110,751,718
Commercial Bank PLC Term Loan 9,301,821
Mercantile Investment Term Loan 7,114,960
Asia Assets Finance PLC Term Loan 2,356,266
NDB Bank PLC Term Loan
35,173,553
Total 200,181,660
Further details of the abovementioned borrowings are given in Note No. 07 of the Unaudited
Financial Statements of the Company for the financial year ended 31 March 2014 (Annexure 3).
1.3 Listing
An application has been made to the CSE for approval and in-principal approval has been
obtained to deal in and for a listing of One Hundred and Seventy Six Million Twenty Eight
Thousand Four Hundred and Ten (176,028,410) Ordinary Voting Shares of the Company and
Twenty Four Million (24,000,000) Ordinary Non-Voting Shares of the Company, comprising,
a. The entire One Hundred and Thirty Eight Million Twenty Eight Thousand Four Hundred
and Ten (138,028,410) issued and fully paid Ordinary Voting Shares of the Company as at
date, and
b. TheThirty Eight Million (38,000,000) Ordinary Voting Shares and Twenty Four Million
(24,000,000) Ordinary Non-Voting Shares of the Company to be issued pursuant to this
Initial Public Offer.
Upon the successful completion of the issue of Ordinary Voting Shares and Ordinary Non-
Voting Shares of the Company, and upon fulfilling the applicable requirements set out in the
Listing Rules of the CSE and the relevant SEC Directives, the said shares will be listed on the
Diri Savi Board of the CSE.
The Company has fulfilled the listing requirements set out in Sections 2.1.3(a), 2.1.3 (b) and
2.1.3(d) of the Listing Rules. It is envisaged that the Company will fulfil the minimum listing
requirement set out in Section 2.1.3(c) of the Listing Rules immediately after this IPO. In the
event the issue is undersubscribed and/or the Company unable to fulfil the minimum listing
requirement set out in Section 2.1.3(c) of the Listing Rules in respect of Ordinary Voting
12
shares of the Company, the Company will immediately return all monies received by it from
the Applicants.
There is no restriction of Non Residents holding shares in the Company.
1.4 Subscription List
Subject to the provisions contained below, the subscription list will open at 9.00 am on 07 July
2014 and shall remain open for 14 market days until closure at 4.30 pm on 24 July 2014. In the
event of an over subscription of both Voting and Non-Voting shares, subscription list will close
at 4.30 pm on the same day on which the entire 38,000,000 Ordinary Voting Shares and the
24,000,000 Ordinary Non-Voting Shares is fully subscribed, with prior written notice to CSE.
The Board of Directors of the Company also reserve the discretion to close the subscription
list on any market day within the aforesaid fourteen (14) market days, irrespective of the issue
is oversubscribed or not, by providing one (01) market day prior notice to the CSE.
Applications may be made forthwith. Applications should be duly completed in the manner set
out under the Procedure for Application in Section 2 of this Prospectus.
1.5 Basis of Allotment
The Company intends to allot the said 38,000,000 Ordinary Voting Shares and 24,000,000
Ordinary Non-Voting Shares on the basis set out below;
Ordinary Voting Ordinary Non Voting %

Investor category
Shares Shares
Unit Trusts* 3,800,000 2,400,000 10.00%
Retail Individual Investors** 17,100,000 10,800,000 45.00%
Non Retail Investors*** 17,100,000 10,800,000 45.00%
* A Unit Trust should be a growth or Balanced Unit Trust operated by Managing Companies
licensed by the SEC to operate such unit trusts, where such unit trust comprises of not less
than Five Hundred (500) unit holders resident in Sri Lanka who together hold at least 50% of
that fund. (Applications made under the Unit Trust Investor category should conform to the
criteria defined by the SEC directive dated 06 June 2011- SEC/LEG/11/06/01) and CSE
Listing Rule 3.1.5(b)(iii).
** Retail Individual Investor' shall mean an individual investor who subscribes for value of
not more than Rupees One hundred Thousand (LKR 100,000) in respect of Ordinary Voting
Shares or Ordinary Non Voting shares of the Company.
13
*** Investors who do not fall under the Retail Individual investor category stated above will be
deemed as Non Retail Investors for Share allotment purposes. (All corporate bodies
incorporated or established in Sri Lanka or outside Sri Lanka, global, regional or country
funds approved by the SEC and all Provident Funds, Trust Funds and Contributory Pension
Schemes registered/ incorporated/ established in Sri Lanka, shall fall under the Non-Retail
Investor category irrespective of the quantum of Shares applied for)
In the event of an under-subscription in the Unit Trust Investor Category, and the Retail
Individual Investor Category shall be given first priority in the allotment of the under-
subscribed shares.
In the event of an under-subscription in the Retail Individual Investor category, the Unit Trust
Investor Category shall be given first priority in the allotment of the under-subscribed shares.
In the event of an under-subscription in the Non Retail Investor category, the Retail Individual
Investor category shall be given first priority in the allotment of the under-subscribed shares.
In the event of an over subscription of the Retail Individual Investor category, the Individual
Investors who subscribed for a smaller number of Shares shall be given priority, when
deciding the basis of allotment.
In the event of an over subscription of the other categories mentioned above the basis of
allotment will be decided by the Board of Directors of the Company before the expiry of Seven
(07) market days from the date of closure of the subscription list and immediately notified to
the CSE.
In the event of an under subscription of the Ordinary Voting Shares, the number of Ordinary
Non-Voting Shares to be issued will be reduced to ensure that the Ordinary Non-Voting
Shares issued shall not exceed 15% of the Company's shareholders funds as required by the
listing rules of the CSE and that such Ordinary Non-Voting Shares will be allotted on a pro rata
basis to the applicants of the Ordinary Non-Voting Shares.
The successful applicants will be notified about their allotment of shares within Ten (10)
market days from the date of closure of the Issue.
1.6 Cost of the Issue
The Board Directors estimate that the total cost of the Issue including the Managers fees,
Registrars fees, Initial Listing fee, fees payable to the Bankers to the Issue, brokerage,
postage, printing and marketing costs, stamp duty payable on the issue of shares, etc. will be
approximately Rupees Ten Million (LKR 10 Mn). Such costs will be borne by the Company
from the internally generated funds.
14
1.7 Underwriting
The Initial Public Offering is not underwritten.
The offering is not conditional upon any minimum amount to be raised through this issue.
Even in the event of an under subscription, the Company shall seek a listing subject to
satisfying the public holding requirement as stipulated in Rule 2.1.3 (c) of the CSE Listing
Rules and any short fall of the funds will be raised through the long term borrowings via banks.
However in the event of an under subscription and if the Company is unable to fulfil the public
holding requirement as stipulated in Rule 2.1.3(c) of the CSE Listing Rules, the Company will
immediately return the funds collected from the Applicants and the Company will not be listed.
1.8 Inspection of Documents
The Articles of Association of the Company, the Audited Financial Statements of the
Company for the Financial Years ended on 31 March 2011, 2012 and 2013,Interim Financial
Statements for the period up to31December 2013, and all other documents pertaining to the
Company to which references are made in this Prospectus could be inspected by the public
during normal working hours at the Registered Office of the Company or at the Registered
Office of the Managers and Registrars to the Issue from the date hereof until the subscription
list closes or up to fourteen (14) Market Days from the date of opening of the Issue, whichever
is later.
This Prospectus, Application Forms for subscription of Ordinary Voting shares and Ordinary
Non-Voting shares and the Articles of Association of the Company will also be hosted in the
website of the CSE (www.cse.lk), the website of the Company (www.luckylanka.com) and the
website of MBSL (www.mbslbank.com) from seven (07) market days prior to the date of
opening of the share issue and for a period of not less than fourteen (14) Market Days from the
date of opening of the Issue.
1.9 Brokerage
Brokerage at the rate of Zero Point Five Percent (0.5%) of the Issue price of the Shares will be
paid in respect of the number of Ordinary Voting Shares and Ordinary Non-Voting Shares
allotted on Applications bearing the seal of any Licensed Commercial bank operating in Sri
Lanka or any branch of MBSL or any member/trading member of the CSE and or any
placement agent appointed by the Company for the marketing of the Issue.
15
2.0 PROCEDURE FOR APPLICATION

2.1 Who May Apply
Applications are invited for the subscription of the Shares from the following categories of
applicants:
?
Citizens of Sri Lanka who are resident in Sri Lanka and above 18 years of age.
?
Companies, Corporations and other Corporate Bodies registered/incorporated /
established in Sri Lanka.
?
Approved Provident Funds, Trust Funds and Contributory Pension Schemes
registered/ established in Sri Lanka. (In this case, the Application should be in the
name of the Trustee/ Board of Management).
?
Foreign Institutional Investors, Corporate Bodies incorporated outside Sri Lanka,
Foreign Citizens and Sri Lankans resident outside Sri Lanka and above 18 years of
age.
Applications will not be accepted from individuals under the age of 18 years or in the name of
sole proprietorships, partnerships, unincorporated trusts or non-corporate bodies.
2.2 How to Apply
01. Applicants shall have the option of applying for either class of shares or for a
combination of both classes of shares using separate Application Forms. The
minimum subscription shall be 1000 Ordinary Voting Shares at LKR 6 per share or
1000 Ordinary Non-Voting Shares at LKR 3 per share. Applications in excess of the
minimum subscription shall be in multiples of 1000 shares of any class of shares
applied.
16
02. Applications for subscription of Ordinary Voting Shares and Ordinary Non-Voting
Shares should be made separately on the respective Application Forms, which
accompany and constitute a part of this Prospectus.
Form A - Application Form for subscription of Ordinary Voting Shares of the

Company
Form B - Application Form for subscription of Ordinary Non-Voting Shares of
the Company
03. Applications are also permitted on photocopies of the relevant Application Forms
(Form A - Application Form for subscription of Ordinary Voting Shares of the Company,
Form B - Application Form for subscription of Ordinary Non-Voting Shares of the
Company). Applicants using photocopies are requested to inspect the Prospectus,
which is available for inspection and also issued free of charge at the Collection
Points listed in Annexure 4.
Care must be taken to follow the instructions on the reverse of the Application Forms.
Applications, which do not strictly conform to such instructions and/or the
terms and conditions, set out in this Prospectus or which are incomplete or
illegible may be rejected.
04. Joint Applicants should note that all parties in the Joint Application should either be
residents of Sri Lanka or non-residents. An Applicant of a Joint Application will not be
eligible to submit a separate Application either individually or jointly for the same class
of shares applied. Only one Application should be made by any person or entity with
regard to any class of shares. Multiple applications for the same class of shares
will be rejected.
05. Applications by Companies, Corporations and other Corporate Bodies, registered/

incorporated/established in Sri Lanka should be made under their common seal or in
any other manner as provided by their Articles of Association or such other
constitutional documents of such Applicants or as per the statutes governing them. In
the case of Approved Provident Funds, Trust Funds and Approved Contributory
Pension Schemes the Applications should be in the name of the Trustees/Board of
Management.
06. A Sri Lankan Citizen must state his/her National Identity Card (NIC) number in the
Application Form. In the case of companies, the Company Registration Number
should be stated in the space provided in the Application Form. A foreign citizen must
state his/her Passport number in the space provided. A Sri Lankan citizen can state
the Passport number only when the NIC is not available.
07. If the ownership of the Shares is desired in the name of one individual full details
should be given under the heading SOLE/ FIRST APPLICANT in the Application
Form. In the case of joint applicants, the particulars of all applicants should be given
under the relevant headings.
08. The Application Forms may be signed by someone on behalf of the Applicant(s)
provided that such person holds the Power of Attorney (POA) of the Applicant(s). A
copy of such POA certified by a Notary Public as True Copy should be attached with
the Application Form. Original of the POA should not be attached.
17
09. Applicants, who wish to apply through their Margin Trading Accounts, should submit
the Application signed by the Margin Provider, requesting a direct upload of the
Shares to the Applicants Margin Trading Account in the CDS. The Margin Provider
should indicate the relevant CDS Account number relating to the Margin Trading
Account in the space provided in the Application Form. A True copy of the Margin
Trading Agreement should be attached with the Application Form.
10. Margin Providers can apply under their own name and such Applications will not be
construed as multiple Applications.
11. As per the Directive of the Securities and Exchange Commission of Sri Lanka made
under Circular No. 08/2010 dated 22 November 2010 and Circular No. 13/2010 dated
30 November 2010 issued by the Central Depository System (Private) Limited, all
Shares shall be directly uploaded to the CDS Accounts of the Applicants and hence all
Applicants should indicate their CDS Account number in their Application Form for
subscription of Shares.
Applicants who do not have a CDS Account are advised to open a CDS account prior
to making the Application in order to facilitate the uploading of allotted Shares to the
CDS.
Please note that upon the allotment of Shares under this issue the allotted Shares
would be credited to the Applicant's CDS account so indicated. Please note that
Share Certificates shall not be issued.
Applications which do not carry the CDS account number, which is not opened at the
time of the closure of the subscription list or which indicate an incorrect/inaccurate
CDS account number shall be rejected, and no allotment will be made.
A CDS account could be opened through any Member/Trading Member of the CSE
set out in Annexure 4 or through any Custodian Bank set out in Annexure 5 of this
Prospectus.
It should be noted that in the event the Applicant's CDS Account number is correctly
stated in the Application Form all correspondence with such Applicant would be sent
to the address given to the CDS by such Applicant.
Further, in the event the name or the address of the Applicant mentioned in the
Application Form differ from the name or address given to the CDS by such Applicant
in respect of the CDS Account mentioned in the Application Form, the name and the
address given to the CDS by such Applicant in respect of the CDS account mentioned
in the Application Form will be considered as the name and Address of such Applicant.
Therefore the Applicants shall ensure that their name and address mentioned in the
Application Form tally with the name and address given to the CDS in respect of the
CDS Account mentioned in the Application Form.
12. Foreign Investors and Non-Resident Investors may be affected by the laws of the
Jurisdiction of their residence. It is the responsibility of such Investors to comply with
the laws relevant to their country of residence and the laws of Sri Lanka, when making
an Application for subscription of the Shares.
18
13. Applications submitted under the Unit Trust Investor Category should accompany a
written confirmation by the Trustee confirming that such unit trust is in conformity with
the criteria defined by the SEC Directive dated 06 June 2011 (Ref:
SEC/LEG/11/06/01) and CSE Listing Rule 3.1.5(b)(iii).
14. Application Forms properly filled in accordance with the instructions thereof, together
with the remittance (cheque, bank draft, bank guarantee or RTGS transfer
confirmation as the case may be) for the full amount payable on Application
should be enclosed in a sealed envelope marked Lucky Lanka Milk
Processing Company Ltd-IPO and addressed and dispatched by post or courier or
delivered by hand to the Managers and Registrars to the Issue at the following
address:-
Managers and Registrars to the Issue

Merchant Bank of Sri Lanka PLC
Corporate Advisory and Capital Markets Division
No. 28, St. Michaels Road
Colombo 03
Application forms could also be handed over to any of the Collection Points set out in
Annexure 4.
Applications sent by post or courier or delivered to any places mentioned in

Annexure 4 should reach the office of the Managers and Registrars to the Issue at
least by 4.30 p.m. on the second (02nd) working day immediately after the date of the
closure of the subscription list. Applications received after the said period will be
rejected even though they have been sent by courier or delivered to any of the
Collection Points prior to the Closing date or carry a postmark dated prior to the
Closing date.
2.3 Mode of Payment
2.3.1 Resident Sri Lankan Investors
01. Payment should be made only by way of cheque, bank draft, bank guarantee or
RTGS transfers, as the case may be. An Application Form should be accompanied by
a cheque, bank draft or bank guarantee, as the case may be, for the aggregate
amount payable. Applications with two or more cheques, bank drafts or bank
guarantees will be rejected in the event the Value of such Application is below Sri
Lankan Rupees One Hundred Million (100,000,000).
Application Forms accompanied by cash will not be accepted.
02. The amount payable should be calculated by multiplying the number of Shares
applied for by the issue price of a Share. If there is discrepancy in the amount payable
and the amount specified in the cheque/bank draft, bank guarantee or RTGS
Transfer, the Application will be rejected.
19
03. Payments for Applications for values above and inclusive of Sri Lankan Rupees One
Hundred Million (LKR 100,000,000/-) should be supported by either a;
a. Bank guarantee issued by a licensed commercial bank in Sri Lanka; or
b. Multiple bank drafts / cheques drawn upon any licensed commercial bank
operating in Sri Lanka, each of which should be for values on the date of
opening of the Issue.
c. RTGS transfer with value on the date of opening of the Issue.
04. Cheques and Bank Drafts should be drawn upon any licensed commercial bank in Sri
Lanka and crossed Account Payee Only and made payable to Lucky Lanka Milk
Processing Co. Ltd- IPO Account.
The Bank Guarantees should be in a form acceptable to the Company/Managers and

Registrars to the Issue and should be issued by a licensed commercial bank in Sri
Lanka and payable on demand unconditionally to Lucky Lanka Milk Processing
Co. Ltd-IPO Account.
The format/s of the Bank Guarantee could be obtained from the office of the
Managers & Registrars to the Issue.
05. In the event that cheques are not realized prior to the date of deciding the basis of
allotment and realized after such date, the monies will be refunded and no allotment
of Shares will be made. Cheques must be honoured on first presentation for the
application to be valid.
06. All cheques/bank drafts received in respect of the applications will be banked on the
next working day immediately after the date of closure of the subscription list.
07. In case of RTGS transfers (only for Applications having values above and inclusive of
Sri Lanka Rupees One Hundred Million (LKR 100,000,000/-), such transfers should
be made to the credit of Lucky Lanka Milk Processing Co. Ltd- IPO Account
bearing the account number 76079652 at Bank of Ceylon, Corporate Branch with
value on the date of opening of the issue (i.e. the funds should be made available to
the above account on the date of opening of the issue).
The Applicant should obtain a confirmation from the Applicants bank, to the effect
that arrangements have been made to transfer payment in full for the total value of
Shares applied for to the credit of Lucky Lanka Milk Processing Co. Ltd- IPO
Account bearing the account number 76079652 at Bank of Ceylon, Corporate
Branch with value on the date of opening of the Issue (i.e. the funds to be made
available to the above account on the date of opening of the issue) and such
confirmation should be attached with the Application Form.
For RTGS transfers above and inclusive of Sri Lanka Rupees One Hundred Million
(LKR 100,000,000/-), the Applicants are entitled to an interest at the rate of Five per
centum (5.00%) per annum from the date of such transfers (date of opening of the
issue) up to the date of Allotment. However, no interest will be paid if the RTGS
transfers are not realised before the end of the closing date of the Issue. Furthermore,
even if such RTGS transfers are effected prior to the date of opening of the issue, no
interest will be paid for the period prior to the date of opening of the issue.
20
2.3.2 Non Resident Sri Lankan Investors and Foreign Investors
This section is applicable to citizens of Sri Lanka above 18 years of age, who are resident
overseas, Foreign Institutional Investors and corporate bodies incorporated or established
outside Sri Lanka and foreign citizens above 18 years of age (irrespective of whether they are
resident in Sri Lanka or overseas), who wish to apply for the shares.
Applications in respect of such Applicants should be made in conformity with the requisite
declarations accompanied by the documentation stipulated by the Controller of Exchange of
Sri Lanka.
Payment for the subscription of the Shares by foreign investors and Non-Resident Sri Lankan
citizens should be made through a Securities Investment Account (SIA) maintained with any
Licensed Commercial Bank in Sri Lanka. Such payments could be made in one of the
following ways:-
01. A foreign investor may use the service of a Custodian Bank as an intermediary when
investing in the Sri Lankan securities market. The intermediary may open a SIA, on
the investor's behalf. In conjunction with the SIA, an account must be opened with the
Central Depository System (CDS). Payment for the Shares could be made through
Bank Drafts purchased out of the funds in the SIA and made payable to Lucky
Lanka Milk Processing Co. Ltd- IPO Account. An endorsement should be made
on the reverse of the Bank Draft by the Custodian Bank to the effect that such
payment has been made out of the funds available in the SIA.
02. Inward remittances of foreign currency may be held in a Foreign Currency Banking
Unit (FCBU) Account of the Applicant with any Licensed Commercial Bank in Sri
Lanka, in which case such Applicant could forward his/her Application supported by a
Bank Guarantee [if the value of such application is Sri Lankan Rupees One Hundred
Million (LKR 100,000,000) or above] drawn on the Applicant's FCBU account pending
allotment of the Shares. Upon allotment of the Shares, payment for the Shares
allotted would be called on the Bank Guarantee. Foreign currency to the extent of Sri
Lankan Rupee equivalent value of the Shares allotted should then be credited to the
SIA opened in favour of the Applicant via the aforementioned FCBU Account and
payment for such Shares should be made through the funds in the SIA. This
procedure would protect a prospective investor from any losses accruing due to
fluctuating exchange rates.
03. Bank Guarantees issued by a Licensed Commercial Bank in Sri Lanka against the
Applicant's SIA maintained with the said bank will also be accepted from foreign
investors and non resident Sri Lankan citizens.
Bank Guarantees should be in a form acceptable to the Company and the Managers
to the Issue and payable on demand unconditionally to Lucky Lanka Milk
Processing Co. Ltd- IPO Account.
The Format/s of the Bank Guarantees could be obtained from the office of the
Managers and Registrars to the Issue.
An endorsement should be made by the Licensed Commercial Bank on the face of

the Bank Guarantee to the effect that such Bank Guarantee has been drawn against
the Applicant's SIA maintained with the said bank.
21
2.3.3 Foreign Citizens Resident in Sri Lanka
Foreign citizens resident in Sri Lanka may make payments through Sri Lankan Rupee
Accounts only if they possess dual citizenship where one such citizenship is Sri Lankan.
Foreign citizens having Sri Lankan citizenship should attach a certified copy of the
citizenship certificate with the Application Form.
Foreign citizens residing in Sri Lanka having valid residency visa should note that they cannot
make remittances via cheque or bank drafts or bank guarantees or RTGS transfers drawn on
Sri Lankan Rupee accounts maintained with any LCBs in Sri Lanka but may do so via
SIA/FCBU/RGFCA/RGRCA accounts. Applications made by foreign citizens not in
accordance to the foregoing shall be rejected.
2.4 Rejection of Applications
01. Application Forms and the accompanying cheques/bank drafts/ bank guarantees or
RTGS transfer, which are illegible or incomplete in any way and/or are not in
accordance with the terms, conditions and instructions set out therein or in this
Prospectus will be rejected at the sole discretion of the Company.
02. Applications from individuals under the age of 18 years or in the names of sole
proprietorships, partnerships or unincorporated trusts will also be rejected.
03. An Applicant of a Joint Application will not be eligible to submit another Application
either individually or jointly for the same class of shares. Multiple Applications will be
rejected.
04. Applications which do not carry the CDS account number, which is not opened at the
time of the closure of the subscription list or which indicate an incorrect/inaccurate
CDS Account number shall be rejected, and no allotment will be made. Application
Forms stating third party CDS account numbers, instead of their own CDS account
numbers, except in the case of Margin Trading Accounts, will also be rejected.
05. Any Application Form that does not state the NIC, Passport or Company Registration
Number, as the case may be, will be rejected.
06. Applications having a value of less than Sri Lankan Rupees One Hundred Million
(LKR 100,000,000) with RTGS Transfers, two or more Cheques, Bank Drafts or Bank
Guarantees will be rejected. Application Forms accompanied by cash will not be
accepted.
07. In the event that Cheques are not realized prior to the date of deciding the basis of
allotment and realized after such date, the monies will be refunded and no allotment
of Shares will be made. Cheques must be honoured on first presentation for the
Application to be valid. In the event cheques are dishonoured/returned on first
presentation, the Application will be rejected.
08. Applications delivered by hand to the Managers and Registrars to the Issue, or to any
22
Collection Points listed in Annexure 4 after the subscription list is closed will be
rejected.
09. Applications sent by post or courier or delivered to any places mentioned Annexure 4
should also reach the office of the Managers & Registrars to the Issue at least by 4.30
p.m. on the second (02nd) working day immediately after the date of closure of the
Subscription List. Applications received after the said period will be rejected even
though they have been sent by courier or delivered to any of the Collection Points
prior to the closing date or carry a postmark dated prior to the closing date.
10. The Directors of the Company hereby also reserve the right to refuse any Application
or to accept any Application in part only, without assigning any reason therefore.
2.5 Refunds
01. Where an Application is not accepted, subsequent to the cheque being realized, the
Applicants money in full or where an Application is accepted only in part, the balance
of the Applicants money will be refunded.
02. If the Applicant has provided all details of the Applicants bank account in the
Application Form, the refund payment will be made to the bank account specified by
the Applicant through the Sri Lanka Inter Bank Payment System (SLIPS) and a
payment advice shall be issued to the Applicant. However, SLIPS transfers are
subject to a maximum limit of LKR 5 Million imposed by the CBSL. Therefore, even
though an Applicant has requested for SLIPS transfer for refund amounts and
submitted all details of the bank account in the Application Form, refund amounts
exceeding LKR 5 Million will be made by a crossed cheque drawn in favour of the
Applicant and sent by Registered Post to the registered address of the Applicant. In
the case of a joint Application, a crossed cheque will be drawn in favour of the
Applicant whose name appears first in the Application Form.
If the Applicant has not provided details of the bank account in the Application Form or
has provided incomplete details of the bank account, refund payment will be made by
a crossed cheque drawn in favour of the Applicant and sent by Registered Post to the
registered address of such Applicant. In the case of a joint Application, a crossed
cheque will be drawn in favour of the Applicant whose name appears first in the
Application Form.
Applicants can obtain details on bank and branch codes required for providing
instructions on SLIP transfers at the following website;
http://www.lankaclear.com/products_and_services/sl_interbank_payment_system
_guideline. php
03. Refund Cheques on Shares that have not been allotted, will be posted before the
expiry of Ten (10) market days from the date of closure of the issue (excluding the
date of close of the Issue). Applicants would be entitled to receive Interest at the last
23
quoted Average Weighted Prime Lending Rate (AWPLR) published by the Central
Bank of Sri Lanka plus Five Percent (5%) on any refunds not made within this period.
In the event refund payment is effected via SLIP based on the bank account details
provided by the Applicant in the Application Form, but is rejected by the Applicants
Bank due to inaccurate information such refund payments would be made via
crossed cheque drawn in favour of the Applicant and sent by Registered Post to the
registered address of such Applicant. Such payment would be made at the earliest
possible date and the Applicant should not hold the Company or the Managers &
Registrars to the Issue responsible for such delays.
2.6 CDS Lodgements and Trading of Shares
If the Applicants CDS Account number is correctly stated in the Application Form the Shares
allotted will be directly uploaded to the CDS account stated in the Application Form before the
expiry of Eighteen (18) Market days, from the date of closure of the Subscription List. A written
confirmation in this regard will be sent to the Applicant within Two (02) Market days of
crediting the CDS Account, by ordinary post to the Registered Address of such Applicant.
The Company shall submit to the CSE a Declaration as set out in the listing rules of the CSE
on the market day immediately following the day on which the investors CDS Accounts are
credited with the Shares and trading of the Shares will commence on or before the Third
(03rd) Market day upon receipt of the declaration by the CSE.
Both the Ordinary Voting Shares and Ordinary Non-Voting Shares of the Company will be
listed on the same day on the Colombo Stock Exchange.
25
3.0 THE COMPANY

3.1 An Overview of the Company
The business of milk processing was established in 1991 as a domestic business with the
excess milk of the household cow. The founder Mr. Lal Keerthi Gunawardhana, who is the
present Chairman of the Company started this business at his age of 20 with the support of his
four sisters. At the beginning, production process was done by manually with a production
capacity of 300 cups per day and the delivery was done by a bicycle.
Today, the small business, which started with the single cow, has developed to a national level
enterprise with the involvement of thousands of milk farmers, hundreds of employees and
many of the suppliers.Lucky Lanka Milk Processing Company Limited was incorporated on
15 June 2007 as a limited liability Company under the Companies Act No 07 of 2007. The
principal place of business of the Company is in Kamburupitiya. The Companys factory,
which has a production capacity of 20,000Lt per day is situated at Karagoda, Uyangoda in
Kamburupitiya on a land owned by the Company, which is presently mortgaged to the Union
Bank of Sri Lanka PLC and will be released upon settlement of the facility from the proceeds
of this IPO.
The Company is engaged in the process of collection of locally produced fresh milk from rural
village farmers and process yoghurt and other milk products and distribute island wide under
the brand name LUCKY. The product range comprises of Vanilla, Strawberry, Chocolate,
Treacle, Fruit Jelly and Fresh Fruit Yoghurts, Curd, Pasteurized Milk, Sterilized Milk, UHT
Milk, Flavoured Milk, Fruit Drink Bottles and Drinking Yoghurt. Lucky recently introduced
Lucky Milk Toffee also to the market.
Lucky Yoghurt is the one and only yoghurt manufacturer with SLS certification for the first time
in Sri Lanka. From the incoming raw material up to finished good delivery to the consumer
quality is assured through the best practices of the quality management system by a
competent Quality Assurance Team according to ISO 22000 & HACCP international
standards. Lucky yoghurt is the first to introduce 'Pro-Biotic' cultures in yoghurt as favourable
microorganisms in yoghurt. The company owns the Sri Lanka's strongest cold distribution
network with 120 delivery vehicles covering the entire Island.
The Company has provide 400 direct employment opportunities while indirect employments
by providing livelihood for milk farmers in exchange of their fresh milk for the best price in the
market amounted to more than 5000.Integration of different fields of knowledge is acquired
through employing graduates from varied specified areas of knowledge as employees and by
means of providing industrial training for university students. The company also engages in
different CSR programs such as conducting awareness programs for farmers to upgrade
their knowledge in cattle farming and training programs for retail dealers on how to improve
and manage their businesses in today's competitive business environment etc. One Rupee is
contribute from each and every Lucky yoghurt sold, to the CSR Programme called
DanasithSamajaya for the attitudinal development of the society including school student,
university students and other different segments of the society with positive thoughts.
Samma Ditti Magazine (VISION 2020) is another CSR project of the Company. Samma Ditti
Magazine focuses economic development of the country and improve positive thinking within
the Sri Lankans.
30
The Company is maintaining a model farm adjoining to the factory called Ruhunugama Eco
Farm use for R & D activates in agricultural and livestock field, which is helpful to train farmers
as well as students about best practices and new agricultural methods suitable for Sri Lanka
and the Company do not own any farms other than the Ruhunugama Eco Farm.
Lucky Lanka has started a project named GedarataKiri (Fresh milk to door step) to increase
the consumption of fresh milk of consumers in the year 2013 in Matara town. Lucky Lanka has
launched "Lucky Milk Bar (Retail Outlet)" outlet chain as a forward integration project in this
year.
The company always carries the social objectives, which beyond the commercial objectives
according to the company's vision.
Vision
2020 Global Lucky
Mission
We are stepping towards
the world of prosperity with Lucky
33
LUCKY PRODUCT PORTFOLIO
Vanilla Flavoured Yoghurt Family Pack - 1Kg

This family pack is popular among Sri Lankan family
as a value for money pack. One product that can
serve for entire family while saving money for the
customer.
Vanilla Flavoured Yoghurt Family Pack - 500g

This is a vanilla flavoured family pack targeted for
small families, who chose for value for money.
Vanilla Flavoured Yoghurt - 80g

The product, which has the biggest consumption in
the market for Lucky. The production is more than
100,000 cups per day.
Strawberry Flavoured Yoghurt - 80g

This product is targeted for children market and has
successfully accepted by the users.
Fresh Fruit Yoghurt - 160g

Yoghurt mixed with fresh fruit pieces brings the
additional tasty.
Fruit Jelly Yoghurt - 80g

Jelly layer with fruit pieces on top of the yoghurt make
attraction from the children.
34
"Chogurt" Chocolate Yoghurt - 80g

Though its quite difficult to produce yoghurt with a
chocolate layer, it is a popular product in the market.
Treacle Yoghurt - 80g

Considering Sri Lankan consumer behavior for curd
with treacle, this yoghurt cup does have a treacle.
Curd - 120g
This is one of the lucky new product designs based
on traditional product of curd with treacle. Due to the
present consumers life style its expected to have a
considerable demand.
Curd - 500g
This is one of the lucky new product designs based
on traditional product of curd. Due to the present
consumers life style, a high demand product for
Lucky.
"Keerasa" Drinking Yoghurt - 220ml

One of Luckys newest product introduced to the
market. There has a demand as a tasty product with
health concerns for daily digesting troubles.
UHT Milk Packets Chocolate / Vanilla - 170ml

UHT product is most recent product launched by
Lucky. Now Lucky has the capacity of producing
more than 10,000 packets per day.
35
Sterilized Milk Bottle - 500 ml

This fulfils the need of liquid milk demand of daily
users. It is truly fullcream milk you can consume
with immense trust.
RTS Drinking Milk Chocolate / Vanilla - 190ml

With Chocolate & Vanilla flavours that is focused
for walk-in in customers who seek for food and
drinks.
Kiri Kiri Yoghurt - 80g

KIRI KIRI was introduced as the second brand to
cater the consumers who are conscious of low price.
Curd Pot - 1L
Obviously we do not forget our tradition. Our curd pot
symbolizes the RUHUNU MEEKIRI we have been
bring forward from generation to generation.
Milk Toffee - 950g

Sweet & Tasty product for all type of customers.
36
FINANCIAL OVERVIEW
31-03-2014 31-03-2013 31-03-2012
Non-Current Assets 513,177,805 536,179,318 557,094,996

Current Assets 252,644,782 183,583,725 123,432,550
Total Equity 360,546,524 310,208,553 292,229,360
Non-Current Liabilities 123,298,902 194,624,073 166,153,271
Current Liabilities 281,977,161 214,930,417 222,144,915
Revenue 896,506,319 841,759,807 681,658,828

Gross Profit 369,446,959 335,951,949 275,783,086
Finance Cost 66,434,788 51,671,356 51,175,050
Net Profit 20,337,972 17,979,194 4,876,466
Net Assets per Share 2.61 206.81 194.82

Gross Profit Margin (%) 41.21 39.91 40.46
Net Profit Margin (%) 2.27 2.14 0.72
*31-03-2014 data based on the unaudited Financial Statements
AAGR - Annual Average Growth Rate
37
3.2 Stated Capital
The stated capital of the Company as at date is LKR 296,056,820 comprising 138,028,410
Ordinary Voting Shares of the Company.
Share Holding Structure
No. of No. of No. of No. of

Shares Shares Shares Shares
Name of The Share Holder held as at held as at held as at held as at %
31 March 31 March 31 March 31 March
2011 2012 2013 2013
Mr. Lal K.A. Guanwardena 1,050,001 1,050,001 1,050,001 93,119,850 67.5

Ms. B.A. Gunawardena 150,001 150,001 150,001 13,302,910 9.7
Ms. D.A.Gunawardena 150,000 150,000 150,000 13,302,825 9.6
Ms. N.A.Gunawardena 150,000 150,000 150,000 13,302,825 9.6

GOH Family Investment
- - - 5,000,000 3.6
Holdings Lanka (Pvt) Ltd
Total Number of Shares 1,500,002 1,500,002 1,500,002 138,028,410 100
Stated Capital (LKR) 15,000,020 15,000,020 15,000,020 296,056,820
The shareholding structure as at 31 March 2014 has remained unchanged up to the date of
this Prospectus.
The Company does not have any subsidiary or any associate Companies as at date.
Other Securities
The Company has not issued any convertible debt securities or any other class of shares
other than the shares stated above. Further there are no securities of the same or other class
subscribed or sold privately in conjunction with this offering.
Redemption and Repurchase of Shares
The Company has not within the two (02) preceding years redeemed or repurchased any
shares in terms of sections 63, 64, 66, 67, 68, 69, 93 and 100 of the Companies Act or reduced
the stated Capital in terms of section 59 of the Companies Act.
38
Details of allotments effected during the last 12 months:
(a) On 20 January 2014 the Company Issued 25,105,680 Shares at LKR 10

per share as given below by way of capitalization of Reserves
No. of Shares No. of Shares

No of Shares
Name of Shareholder held as at 31 held as at 31
Issued
Dec 2013 Jan 2014
Mr. Lal K.A. Guanwardena 1,050,001 17,573,969 18,623,970
Ms. B.A. Gunawardena 150,001 2,510,581 2,660,582
Ms. D.A.Gunawardena 150,000 2,510,565 2,660,565
Ms. N.A.Gunawardena 150,000 2,510,565 2,660,565
Total 1,500,002 25,105,680 26,605,682
(b) On 05 February 2014 the Company subdivided each Ordinary Voting share
into five Ordinary Voting shares and after the subdivision the shareholding
structure of the Company is as follows;
No of Shares held before No of Shares held after

Shareholder Name
Subdivision the Subdivision
Mr. Lal K.A. Guanwardena 18,623,970 93,119,850
Ms. B.A. Gunawardena 2,660,582 13,302,910
Ms. D.A.Gunawardena 2,660,565 13,302,825
Ms. N.A.Gunawardena 2,660,565 13,302,825
Total 26,605,682 133,028,410
(c) February 2014 the Company issued 5,000,000 Shares at LKR 6 per Share to Goh
Family Investment Holdings Lanka Ltd and the said Goh Family Investment
Holdings Lanka Ltd paid sum of LKR 30,000,000 to the Company as purchase
consideration for the said shares.
39
3.3 Transferability of Shares
The shares allotted pursuant to this Initial Public Offer shall not be transferable during the
period between the date of allotment/issue of shares and prior to the date of commencement
of trading on the CSE.
Upon the Ordinary Voting Shares and Ordinary Non-Voting Shares of the Company being
listed on the CSE, such shares shall be freely transferable and the registration of the transfer
of such listed shares shall not be subject to any restriction, save and except to the extent
required for compliance with statutory and regulatory requirements.
In compliance with the CSE Listing Rules, 2.1.1(d) the shares mentioned below will be locked
in and will not be available for trading as given below from the date of listing of the shares of
the Company.
The Time Period

After which the
Locked- Number of
Category of Shareholder Shares will be %
in Shares Shares
Available for
Trading
Non Public (Pre IPO Shares) Locked-in 12 months from the

125,528,400 71.31%
(Ordinary Voting Shares) Shares date of allotment or
06 months from the
date of listing
Public (Pre IPO Shares) Locked-in whichever is longer
5,000,000 2.84%
(Ordinary Voting Shares) Shares
Non Public (Pre IPO Shares) Locked-in 06 months from the

7,500,010 4.26%
(Ordinary Voting Shares) Shares date of listing
Public Not
Not applicable 38,000,000 21.59%
(Ordinary Voting Shares) Locked-in
Total 176,028,410 100%
The Time Period

After which the
Locked-in Number of
Category of Shareholder Shares will be
Shares Shares
Available for
Trading
Public
Not Locked-in Not applicable 24,000,000 100%
(Ordinary Non-Voting Shares)
40
The Company hereby confirms that the information furnished herewith shall remain
unchanged until the Date of Listing. No shares has been transferred during the one year
period prior to the date of listing application.
The terms Non Public Shareholder and Public Shareholder shall have the same meaning
as set out in the SEC directive dated 24 April 2014 bearing Ref : SEC/LEG/14/04/32.
3.4 Takeover Offers
There have been no takeover offers by third parties in respect of the Companys shares
during the past two years and no takeover offers have been made by the Company in respect
of shares of third parties during the past two years.
3.5 Future Strategies
With the view of increasing market share of LUCKY products, the Company is expecting to
increase its sales by
1) Expanding the Gedarata Kiri Project Island-wide
2) Boost Company market share by establishing 1000 Modern Retail outlets named
Lucky Milk Bar
3) Enhance brand image with introducing national policy of standardization of school

canteens
4) Penetrate different market/ new market segment by introducing dry channel with
innovative product, which is biscuit served with yoghurt
1) Gedarata Kiri Project
Company commenced the project from Matara District. Therefore the necessity of expanding
this project to national level has been identified by the management with the objective of
promoting the habit of drinking fresh milk by all Sri Lankans. Issues of powdered milk prices
rising and to save foreign currency from the powdered milk imports. Second stage of the
project has been identified to start from Colombo.
2) Lucky Milk Bar - Modern Retail
outlets
Lucky Milk bar (Modern Retail Outlets)

which will have all Lucky brand products
available for all customers, provide hot
milk to drink, fresh fruit juices mixed with
yoghurt and many more services, are
now open at both entrances of Southern
Highway.
In order to increase the market share

the Company is planning to establish
1000 outlets Island-wide under
Franchising Agreements. The
Company is in the process of identifying
potential franchisers to promote this
concept island wide.
3) Retail Three-wheeler network
Door-to-door selling is a very popular

for ice cream and bakery products
these days because the consumers
prefer to get the service at the doorstep
with their busy schedules. Therefore,
the Company decided to offer Lucky
products also to the consumer door
step using retail three-wheeler network
and this project is implemented through
franchising agreements with upcoming
entrepreneurs.
4) National policy of standardization

of school canteens
This project is focused on

standardization of school canteens to
introduce healthy and safe, nutritious
foods for every schoolchildren. By
focusing on school canteen
standardization, standard guidelines
could be introduced to carry out
effective and efficient process to
enhance the quality of school canteens.
The Company intends to increase the
availability of high nutrition milk based
products in school canteens that will
support to boost the sales in this market
segment.
42
5) Introducing dry distribution channel
Due to seasonal fluctuations of chill product range, the Company has identified the
requirement of introducing dry product range with separate distribution channel. This product
range include milk toffee, sterilized milk bottles and flavoured milk bottles. Extension of the
product range by introducing Lucky bottled water and Biscuit with yoghurt will add high
turnover on this channel. This distribution channel is planned to operate by 50 new vehicles.
3.6 Assumptions and Risks Associated with Future

Strategies
Company has formulated the future strategies based on assumption that the Governments
vision of making self-sufficient in dairy products by the year 2016 will not be changed.
Since the yoghurt industry is one of the cottage-based industries,the competition is very high.
Main weaknesses in the dairy industry is low yield compared to other countries due to lack of
technical knowledge in farmer level and very few professional dairy farmers. Collection of
good quality milk is one of the major challenge that the Company is facing and to overcome
this situation the Company is working with some farmer organizations very closely and
provide them necessary advice and guidance.
3.7 Litigation, Disputes and Contingent Liabilities
There were no material legal, arbitration or mediation proceedings pending against the
Company as at 31 March 2014, which may have or which had in the recent past any
significant effects on the financial position or future operations or profits of the Company.
.
There were no penalties imposed by any Regulatory or Statutory Authority against the
Company.
There are no contingent liabilities that would affect the current and future profits of the
Company other than the contingent liabilities disclosed in the Note No 04 of the Unaudited
Financial Statement of the Company as at 31-03-2014 (Annexure 03) and the Note No 21 of
the Audited Financial Statement of the Company as at 31-03-2013 (Annexure 02).
3.8 Details of Benefits Paid to Promoters
No benefits have been paid or given by the Company to any promoter within the two (02)
preceding years and there are no benefits intended to be paid or given by the Company to any
promoter within the next two (02) years.
43
3.9 Details of Commissions / Brokerage Paid
No amounts or benefit has been paid or given by the Company to any promoter within the two
(02) preceding years and there are no amount or benefits intended to be paid or given by the
Company to any promoter within the next two (02) years.
3.10 Dividend Policy
Subject to the provisions of the Companies Act No. 7 of 2007 and the Articles of Associations
of the Company, the Board of Directors may recommend and declare distributions to
shareholders by way of dividends from and out of the profits of the Company. The dividend
rate will be determined based on number of factors, including but not limited to the Company's
earnings, capital requirements and overall financial condition.
3.11 Taxation
The Company is not enjoying any tax concessions or tax exemptions as at 31 March 2014.
3.12 Particulars of Debt and Loan Capital
The details of the loans, liabilities, other borrowings and indebtedness of the Company
including leasing, lease purchase and hire purchase commitments, guarantees and other
material contingent liabilities of the Company as at 31 March 2014 is set out in Note No. 07 of
the Unaudited Financial Statements of the Company for the financial year ended 31 March
2014 (Annexure 03). Summary of all loans, liabilities, other borrowings and indebtedness of
the Company as at 31 March 2014 is given below;
Total Outstanding as at 31-03-2014 (LKR)

Finance Lease & Hire Purchases 50,013,274
Interest Bearing Loans 164,698,318
Advances from Third Parties 14,265,647
Bank Overdrafts 70,794,481
Other Liabilities 105,504,344
Total 405,276,064
There are no acceptance credit liabilities as at 31 March 2014.
44
Particulars of Mortgages and charges on the Assets of the Company as at 31-03-2014 is
given below;
Total
Type of Outstanding
Property Mortgaged Mortgagee as at 31
Facility
March 2014
Land at Karagoda, Uyangoda
Kamburupitiya Union Bank Term Loan 110,751,718
Land situated at Piniliyadda,

Pitakatuwana, Kamburupitiya
Land situated at Batakolayamulla,
Karagoda, Uyangoda, Kamburupitiya Commercial
Term Loan 9,301,821
Land situated at Batakolayamulla, Bank
Ruhunugama,Karagoda, Uyangoda,
Kamburupitiya
There are no guarantees or other material contingent liabilities of the Company as at 31

March 2014.
3.13 Degree of Dependence on Key Customers and

Suppliers
There is no material dependency on key customers and suppliers in terms of the overall
business operations of the Company.
3.14 Management Agreements
As at date the Company has not entered into any material contracts other than those
contracts entered into as part of the ordinary course of business carried on or intended to be
carried on by the Company.
45
4.0 DIRECTORS
4.1 The Board of Directors of the Company as
at date
Qualifications, Business Experience & Other

Name & Address
Directorships held
Mr. Lal Keerthi Amarasiri Refer Section 5.2
Gunawardana
Chairman/CEO
No. 76, Meera Road,

Issadeen Town, Matara.
Ms. Namali Amarasiri Gunawardana Ms. Namali possesses a Higher Diploma in

Business Administration from NIBM and reading for
Managing Director her MBA in Cardiff Metropolitan University, UK. She
has a thorough knowledge on manufacturing
practices of milk foods. She has under gone several
"Keerthi", Pitakatuwanna,
training programs about food safety and GMP. Also
Kamburupitiya. she possesses Diploma in Computer Science. Her
experience in this industry is more than 22 years.
Ms. Daisy Amarasiri Gunawardhana Ms. Daisy has more than 20 years' experience in
manufacturing milk food and has 30 years'
Non Executive Director experience in Business Administration.
No. 4/208, Praba, Lucky Mawatha,

Bibulewela, Karagoda, Uyangoda,
Kamburupitiya.
46
Qualifications, Business Experience & Other
Name & Address
Directorships held
Ms. Bhadra Amarasiri Ms. Bhadra possesses a Higher Diploma in

Gunawardhana Business Administration from NIBM. She has more
than 20 years' experience in the milk food
Non Executive Director processing industry.
No. 12/3, Sumanasara Mawatha,

Welegoda, Matara.
Dr. L. J. P Anura Prasanna Dr. Jayasooriya holds B. V. Sc (Hons) in Veterinary

Jayasooriya Science, University of Peradeniya and M. Agri in
Biochemistry & Nutrition (research), Miyazaki
Independent Non Executive University, Japan.
Director
Dr. Jayasoorya also holds Ph. D in Nutritional
No. 73A, Dharmapala Mawatha, Biochemistry & Physiology (research), Royal
Melbourne Institute of Technology, Melbourne and
Asgiriya, Howard Florey Institute of Experimental Physiology
Kandy. & Medicine, University of Melbourne, Australia.
Presently he serves as Senior Lecturer,
Department of Basic Veterinary Sciences, Faculty
of Veterinary Medicine, University of Peradeniya
and as Member of Teaching Panel, Veterinary Post
Graduate Unit, Faculty of Veterinary Science.
Mr. D.B.S Chamara Bandara Mr. Bandara is a fellow member and a prominent
personality of the Institute of Chartered
Independent Non Executive Accountants of Sri Lanka. He was the founder
Director president of the governing council of Young
Chartered Accountants' Forum of Sri Lanka and
currently servicing as a council member of AAT Sri
No. 372, 3rd Floor, Lanka.
Nawala Road,
Nawala.
Mr. Bandara holds an MBA from the University of
Southern Queensland, Australia and is currently
reading for his PhD in the world's fifth largest private
academia, Management and Science University,
Malaysia. He is also a fellow member of the Institute
of Certified Management Accountants' of Sri Lanka.
Mr. Bandara is also a Director of Management Aid

Ltd, UK.
47
4.2 Directors' Shareholdings in the Company
No. of Shares held
Name of the Shareholder as at 31 March %
2014
Mr. L. K. A. Guanwardena 93,119,850 67.5%
Ms. B. A. Gunawardena 13,302,910 9.7%
Ms. D. A. Gunawardena 13,302,825 9.6%
Ms. N. A. Gunawardena 13,302,825 9.6%
TOTAL 133,028,410 96.4%
None of the Directors transferred any shares during the one-year period prior to the issue
of the Prospectus.
4.3 Directors' Remuneration
The aggregate emoluments (including bonus and/ or profit sharing payments) paid by the
Company to the Directors for the financial year ended 31 March 2014 was LKR 15. 4Mn.
The aggregate emoluments (including bonus and/ or profit sharing payments) payable to the
Directors of the Company for the financial year ending on 31 March 2015 is estimated as LKR
17 Mn.
4.4 Directors' Involvement in Litigation and

Offences
None of the Directors of the Company is or was,
involved in any petition under any bankruptcy laws filed against such person or any
partnership in which he was a partner or any corporation of which he was an executive
officer;
convicted for fraud, misappropriation or breach of trust or any other similar offence
which the CSE considers as a disqualification.
48
4.5 Directors' Interests
The land on which the Companys factory is situated at Karagoda, Uyangoda in

Kamburupitiya was previously owned by Mr Lal Keerthi Amarasiri Guawardena, the
Chairman and CEO of the Company.
Apart from the above none of the Directors held or hold any interest in any assets acquired,
disposed or leased by the Company during the two (02) years preceding this issue and nor
they have thus proposed to have any interest in any assets proposed to be acquired,
disposed or leased by the Company during the two (02) years succeeding this issue.
The Directors' Interest in the contracts / transaction with the Company as at 31 March 2014
are disclosed under Note No. 06 of the Unaudited Financial Statements of the Company for
the financial year ended 31 March 2014 (Annexure 3).
The loan amount of LKR 21.763 Mn granted to the Directors, which has been mentioned in
the aforesaid Note No 06 has been fully settled on 26 May 2014.
49
5.0 HUMAN RESOURCE

5.1 Employees
As at 31 March2014, there are 400 employees in the Company, as categorized below.
Category No. of Staff
Executive Staff 40
Non-Executive Staff 360
As at date there are no labour unions in the Company and no significant agreements have
been entered into between any labour unions and the Company.
5.2 Chief Executive Officer
Mr. Lal Keerthi Amarasiri Gunawardhana the Chairman and Chief Executive Officer of the
Company, started his entrepreneurial career in 1991 starting from the single household cow
with the help of his four sisters as a domestic business and today the Lucky Lanka has
become a well-known Sri Lankan dairy company awarded as the One of the Top 10
companies in Sri Lanka in 2011 and the best Entrepreneur of the year 2011 Platinum Award
winner 2011.
Mr. Lal Keerthi Amarasiri Gunawardhana
the Chairman and CEO
Platinum Award Winner
Sri Lankan Entrepreneur of The
Year 2011
Achiever Top 10 Awards
Paris International
Star for Leadership in Quality
Award 2012
Mr. Gunawardhana completed his primary education at Narandeniya Central College

Kamburupitiya and completed Advanced Level in Bio Science Stream at Thelijjawila Central
College.
Mr. Gunawardhana obtained his bachelor's degree in Leadership & Management and
Master's Degree in Business Administration from Manipal University of India specialized in
Marketing and Human Resources Management streams and the dissertation on the 'Study
on positive attitudes of Sri Lankan Community'.
Currently Mr. Gunawardhana is reading for London LLB.

52
Professional Education Mr. Gunawardhana has completed as
mentioned below
?
Diploma in Corporate Management, AOTS, Japan
?
Practical training on International Dairy Technology, PUM, Netherlands
?
Certificate in Employee counselling, IHDT, Sri Lanka
?
Scientific Development of Entrepreneurship, BMB Lanka
?
Technology Transfer on Milk Products, IDB, Sri Lanka
?
Practical Training on Productivity through Positive Thinking, Wisdom Lanka
?
Training on '21st Century Marketing by Philip Kotler, Institute of Marketing, Malaysia
?
Trainer on 5S and Kaizen certified by JUSTECA Institute of Management
Entrepreneurial Experiences of Mr. Lal Keerthi Gunawardhana

20 years of entrepreneurial carrier as founder Managing Director of Lucky Lanka Milk
Processing Co. Ltd, which began as a household business, transformed to be a national level
enterprise today. His exposure extend from business management, financial management,
analyzing & controlling, marketing, supply chain management, operational management,
production management, milk procurement and dairy management including cattle
management ,automobile engineering, electrical and mechanical engineering, dairy
machinery up to many other areas relevant to the management of a business.
Training and development of the marketing team of the Company for 20 years, which was
started only with himself now has become a team of 120 young boys .All the marketing team
training is done by Mr. Gunawardhana. Field sales training, customer relationship
management, sales and marketing discipline, merchandising, product awareness,
refrigerator handling, how to achieve targets are the key areas of training.
?
10 years of experience of training and motivation of the company staff on self-
development and positive thinking. How to create life vision and objectives, how to
achieve the life vision, how to develop self-confidence, how to be an outstanding
person are the main areas of concern.
?
10 years of experience as a guest lecturer for universities, schools, different
government training schools, private sector organization.
Training Program Conducted

?
Training of retail dealer on how to develop and manage their businesses to challenge
today's competitive socio economic context.
?
Training of school children on how to create the future vision and the means of
achieving the vision.
?
Training of University students on how to develop self-confidence and development of
their carrier in productive manner.
?
Training of milk farmers on cattle management, cattle feeding, how to obtain good milk
yield, disease management.
?
Resource person for Be the Change TV programme telecasting on CSN (Carlton
Sports Network).
53
Professional Fellowships
?
Committee member of Matara District Chamber of Commerce
?
President of Matara District Small & Medium Entrepreneurs Association
?
Director of Ruhunu Business Incubator
?
District Coordinator of Lions Club Matara
?
Past President of Lions Club Kamburupitiya
?
Member of Lanka United Merchant's Association
?
President of Sri Lanka Yoghurt Manufacturer's Association
?
Board Member for NITA-National Industrial Training Authority
?
Member of Chamber of young Lankan Entrepreneurs
Awards & Honours

?
1997 - Entrepreneur of the year - Southern Silver Award
?
?
1999 - Entrepreneur of the year - National Bronzes Award
?
2000 -'Ruhunu Prathiba' Award
?
2002 - Entrepreneur of the year - Southern Gold Award
?
2002 - Entrepreneur of the year - National Gold Award
?
2003 - Entrepreneur of the year - Southern Bronze Award
?
?
2004 - Entrepreneur of the year - National Silver Award
?
2004 - SUNFO Human Potential Award
?
?
2005 - CIMA Pinnacle Business Leader of the year -National Gold Award
?
?
?
?
?
2007 - Entrepreneur of the year - National Gold Award
?
2007 - Young Entrepreneur of the Year JCI Awards
?
2010 - MACCO- Business Award-Social Entrepreneur
?
2010 - Entreprenure of the year-Southern Gold award
?
2011 - Entreprenureur of the year National platinum award
Social Activities
?
The Founder of "Atha Hitha Lanka Foundation". (This is a non-profit making organization
with a vision to eradicate poverty form Sri Lanka. The specialty of this organization is the
concept on which it is based on. The philosophy of that 'people are being in poverty
because most of them do not recognize their real potential and lack of their will power' is
the basic on which this movement is put up.
?
Conducting free training programs for retail shop owners of the country to develop their
entrepreneurship.
?
Conducting free training programs for school and university students to develop their
leadership skills and personality through changing their attitudes in positive way.
?
Sponsoring training programs for dairy farmers in enhancing their technical knowledge
injoin hand with University of Ruhuna.
54
The Chief Executive Officer of the Company is not and was not,
?
Involved in a petition under any bankruptcy laws filed against such person or any
partnership in which he was a partner or any corporation of which he was an
Executive Officer.
?
Convicted for fraud, misappropriation or breach of trust or any other similar offence,
which the CSE consider a disqualification.
5.3 Senior Managment
Name Qualifications & Experience
Mr. Achala Samarakoon Godawita He is a Chemical & Process Engineer from University
of Moratuwa. He holds a Masters degree in Business
Director Engineering Administration. He has pursued Masters degree in
Sustainable process development from University of
Moratuwa.He has more than 10 years' experience in
the milk food processing industry.
Ms. J. P .N.Wasana Kumari She is an honours degree holder in agriculture. She

holds a Masters degree in Business studies from the
Director Administration University of Colombo. She has more than 10 years'
experience in the milk food processing industry.
Mr. D. M. J. N. Danasekara He is an honours degree holder in agriculture & food

Science. He holds a Masters degree in Business
Director Operations Administration from the University of Sri
Jayawardhanapura. He has more than 10 years'
experience in the milk food processing industry.
Ms. Nali Sanjeewika She has more than 16 years' experience in the milk
food processing industry. She possesses Diploma
Director Production in Computer Science.
5.4 Remuneration of the Senior Management
The aggregate emoluments, including all bonus and/or profit sharing payments paid to the
Senior Management team during the financial year ended on 31 March 2014 was LKR 6.1 Mn
The aggregate emoluments, including any bonus and/or profit sharing payments payable for
the Senior Management team is estimated as LKR 7.5 Mn for the financial year ending on 31
March 2015.
55
6.0 CORPORATE GOVERNANCE

PRACTICES
The practices of good governance had been the hallmark of success of Lucky Yogurt in its
existence and it had been an integral part of its management and corporate culture. The
Company recognizes, in a rapidly changing business environment the need to be
professionally advised on how it should be directed and controlled and in total compliance
with statutory requirements especially with the regulatory standards laid down by the
Colombo Stock Exchange and the Securities and Exchange Commission of Sri Lanka.
The procedure and methodology adopted by the Company to ensure good governance,
involves all levels of management and they contribute through proper and extensive
examination and review of information, practices and ideas encompassing the entire gamut
of the business operations of the Company. The foregoing description in brief gives an
account of the most important best practices adopted by the company.
Board of Directors
The Board consists of well-experienced and most respected business personalities and
professionals from multi-faceted functional backgrounds. The Board is responsible for broad
policy formation and implementation and for the development of overall business strategy.
The Board is responsible for the review and approval of the corporate plans and annual
budgets prepared in line with the business strategy of the Company. The Board ensures
reliability and integrity of the information, internal control systems and compliance with laws,
regulations and ethical standards.
Remuneration Committee
The remuneration committee comprises two (02) members, namely Mr. D B S Chamara
Bandara and Mr. Anura Jayasooriya as at date. Mr. D B S Chamara Bandara is the Chairman
of the committee. This committee recommends the remuneration payable to Executive
Directors and sets guidelines for the remuneration of the Senior Management of the
Company. The Board makes the final determination having considered the recommendations
of this committee and the performance of the Senior Management.
56
The main objective of the remuneration policy of the Company is to retain attracted required
human resources in order to sustain its operations, and to reward their performance.
Audit Committee
The audit committee comprises two (02) members, namely Mr. D. B. S. Chamara Bandara
and Mr. Anura Jayasooriya as at date. Mr. D. B. S. Chamara Bandara is the Chairman of the
committee.
The audit committee assist the Board of Directors in the oversight of the integrity of the
financial statements of the Company and in evaluating and monitoring the Companys control
and risk management functions.
57
7.0 THE DAIRY SECTOR

A Brief of the Sector
Sri Lanka has a total land area of 65,610 sq. km. Out of this, around 2 million hectares or 30
percent is agricultural land. Almost 75% of the agricultural land is under smallholdings and the
balance under estates. The number of smallholdings is estimated at about 1.8 million and of
this, 90% are less than two ha in extent. About 70% smallholdings solely devoted to crop
production, the remaining has a mixture of crops and livestock and in few cases solely
livestock.
Based on the rainfall pattern and altitude, the country is divided into three main agro-
ecological zones namely, low country, mid country and the hill country, and the low and mid
country regions again being divided into a wet zone, an intermediate zone and a dry zone.
The agricultural sector contributes around 16.8 percent of National Gross Domestic
Production (GDP). The livestock sub sector contributes around 1.2% of national GDP.
Dairy Sector
Dairy sector is the most important of all livestock sub sectors. This is primarily because of the
influence it can make on the rural economy. Sri Lanka imports around 65,000 MT of dairy
commodities, mainly FCMP, and dairy development is seen as an instrument to replace this
large volume of imported commodities and to generate rural employment. Unlike with pigs
and poultry where certain religious and socio-cultural sentiments are seen in promoting the
development of such species, dairying is acceptable to all ethnic groups and religious
sectors.
58
Cow Milk Buffalo Milk
250,000,000
200,000,000
150,000,000
(Liters)
100,000,000
50,000,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1998
1999
2000
2001
Annual Milk Production
Source: Department of Census and Statistics
The domestic milk production only constitutes about 17 percent of the requirement and the
rest is imported. The import bill on dairy commodities is around 15 billion rupees or
approximately USD13Million. The government attention is most focused on the dairy sub
sector; to develop this sector into a 'local industry'. The government policy on dairy
development is aimed at producing 50% of country's requirement of milk by the year 2015.
Priority is therefore given for the dairy development in public sector investment programs and
several incentives offered to the private sector to engage in dairy sector.
Cow Milk Buffalo Milk

25,000,000
20,000,000
(Liters)
15,000,000
10,000,000
5,000,000
(Year)
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Average Monthly Milk Production

Source: Department of Census and Statistics
The dairy sector is predominantly based on small holders keeping 2-5 cows and their
followers in most of the agro-ecological regions except the dry zone. In the dry zone, the
herds tend to be large, though the animals are mostly of the indigenous types with poor milk
yields. The estimated annual milk production in the country is 350 million litres and is
produced in all the districts. The districts with a significant milk production are Kurunegala,
Badulla, Anuradhapura, NuwaraEliya.
59
Of the total milk that is available, the volume of milk entering the formal milk market annually is
around 100 million litres and the rest is channelled via informal routes and consumed
domestically. With the pressure on land for pasture production, the main milk production
areas have recently been shifted from the mid and upcountry to the North West and North
Central provinces. The highest recorded milk collection in 2006 was thus from the North
Western province with 18.9% of the volume of milk collected. The collection of milk from the
traditional milk sources, namely, upcountry and mid country areas in the same year have
been 7.1% and 15.7% respectively.
Average consumption of livestock products
Average monthly Average monthly

per person per household
Quantity Value Quantity Value
Food Item / Group Unit (Unit) (Rs.) (Unit) (Rs.)
Cow milk ml 110.33 7.34 427.25 28.41

Goat milk ml 7.67 1.16 29.71 4.51
Sterilized milk ml 5.7 0.6 22.09 2.33
Curd - 13.14 50.89
Yoghurt/ Moru - 24.77 95.91
Condensed milk grams 2.09 1.74 8.11 6.73
Milk powder grams 341.36 271.21 1321.95 1050.27
Infant milk powder grams 25.12 30.69 97.28 118.85
Butter grams 5.18 4.88 20.06 18.91
Margarine grams 10.46 6.37 40.52 24.67
Cheese grams 2.46 4.03 9.52 15.62
Milk packets (liquid) number 0.13 2.63 0.52 10.19
Other milk and milk products - 3.56 13.79
Source: Household Income and Expenditure Survey 2012/2013, Department of Census and Statistics
61
8.0 DECLARATIONS
8.1 Declaration by the Directors
18 June 2014
We, the undersigned being the Directors of Lucky Lanka Milk Processing Co. Ltd, hereby
declare and confirm that we have read the provisions of the Companies Act No.7 of 2007
relating to the issue of the Prospectus and that those provisions have been complied with.
This Prospectus has been seen and approved by us and we collectively and individually
accept full responsibility for the accuracy of the information given and confirm that the
provisions of the Listing Rules of the Colombo Stock Exchange and the Companies Act No. 7
of 2007 and any amendments made thereto from time to time, have been complied with and
after making all reasonable inquiries and to the best of our knowledge and belief, there are no
other facts the omission of which would make any statement herein misleading or inaccurate.
Where representations regarding the future performance of the Company have been given in
the Prospectus, such representations have been made after due and careful inquiry of the
information available to the Company and making assumptions that are considered to be
reasonable at the present point in time and according to our best judgments.
Name of the Director Designation Signature

Mr. Lal Keerthi Amarasiri Gunawardhana Chairman/CEO Sgd.
Ms. Bhadra Amarasiri Gunawardhana Non Executive Director Sgd.
Ms. Daisy Amarasiri Gunawardhana Non Executive Director Sgd.
Ms. Namali Amarasiri Gunawardhana Managing Director Sgd.
Dr. Lokubandara Jayasooriya Independent Non Sgd.
Patabandige Anura Prasanna Jayasooriya Executive Director
Mr. Dingiri Bandage Sunil Chamara Independent Non Sgd.
Bandara Executive Director
62
8.2 Declaration by the Company
We, Lucky Lanka Milk Processing Company Limited, having our Registered Office at
Bibulawela, Karagoda Uyangoda, Matara hereby declare that to the best of our knowledge
and belief this Prospectus constitutes full and fair disclosure of all material facts about the
Issue and the Company.
An application has been made to the Colombo Stock Exchange for permission to deal in and
for a listing for all of the Ordinary Voting Shares issued by the Company and those Ordinary
Voting Shares and Ordinary Non Voting Shares, which are the subject of this issue. Such
permission will be granted when the Ordinary Voting Shares and Ordinary Non Voting Shares
are listed on the Colombo Stock Exchange. The Colombo Stock Exchange assumes no
responsibility for the correctness of any of the statements made or opinions expressed or
reports included in this Prospectus. Listing on the Colombo Stock Exchange is not to be taken
as an indication of the merits of the Company or of the shares issued.
The Common Seal of Lucky Lanka Milk Processing Company Limited is affixed hereto at
Colombo on this 18th day of June 2014 in the presence of
Sgd. Sgd.
L. K. A. Gunawardhana N. A. Gunawardhana
Director Director
8.3 Declaration by the Managers to the Issue
We, Merchant Bank of Sri Lanka PLC of No 28, St. Michael's Road, Colombo 3 hereby
declare that to the best of our knowledge and belief this Prospectus constitutes full and fair
disclosure of all material facts about the Issue and the Company.
The Common seal of Merchant Bank of Sri Lanka PLC is affixed hereto at Colombo on this19th
day of June 2014 in the presence of,
Sgd. Sgd.
A. B. L. A. De Silva Karnika D. Jayatilake
Director (nee Bamunuarachchi)
Company Secretary
Annexure 01
Accountants Report and Five Year Summary
65
66
67
LUCKY LANKA MILK PROCESSING COMPANY LIMITED
Ratio Analysis
Year ended 31 March 2013
1 Profitability Ratio 2013 2012 2011 2010 2009
1 Gross Profit Margin Gross Profit/Turnover 39.91 40.46 43.85 45.59 43.69
2 Operating Profit Margin Operating Profit/Turnover 8.27 8.22 8.84 9.68 2.96
3 Net Profit Margin Net Profit/Turnover 0.02 0.01 0.01 0.04 0.01
2 Liquidity Ratio
1 Current Ratio Current Assets/Current Liabilities 0.85 0.56 0.66 0.69 0.52
2 Quick Ratio CA-Inventory/CL 0.64 0.38 0.44 0.58 0.46
3 Net Working Capital to sale CA-CL/Sales (3.72) (14.48) (8.49) (8.58) (15.18)
3 Activity Ratio
1 Inventory Turnover in times Cost of goods sold/Inventory 11.14 10.35 9.94 17.80 29.06
2 Inventory Turnover in days Inventory/Cost of goods sold*365 33 35 37 21 13
3 Accounts Receivable Turnover in times Sales on Credit/Trade Receivable 10.15 14.82 14.92 9.52 11.47
4 Accounts Receivable Turnover in days Trade Receivable/sales on Credit*365 36 25 24 38 32
5 Total assets Turnover in times Sales/Total Assets 1.17 1.00 1.34 1.36 2.27
6 Fixed Assets Turn over Sales/Fixed Assets 1.57 1.22 1.72 1.84 3.66
4 Financial Leverage Ratio
1 Total debt to assets ratio Total Debts/Total Assets 0.56 0.56 0.51 0.49 0.97
2 Long term Debt to Asset Ratio Long term debt/Total Assets 26.04 23.22 17.53 11.84 24.74
3 Debt to Equity Ratio Total Debt/Total Equity 1.30 1.30 1.08 1.00 36.29
4 Interest Cover Ratio EBIT/Interest 1.35 1.10 1.18 1.59 1.79
5 Shareholders Ratio
1 EPS PAT/No of Shares 11.99 3.25 4.82 12.28 287,024.18
2 Net Asset Per Share Net Asset/No of Shares 206.81 194.82 129.60 124.79 2,591,018.00
68
69
STATEMENT OF FINANCIAL POSITION
As at 31 March 2013
2013 2012 (Restated) 2011 2010 2009
ASSETS Rs. Rs. Rs. Rs. Rs.
Non-Current Assets
Property, Plant & Equipment 536,179,318 557,094,996 316,882,951 279,529,543 120,485,818
536,179,318 557,094,996 316,882,951 279,529,543 120,485,818
Current Assets
Inventories 45,424,261 39,207,585 30,868,354 15,718,072 8,537,993
Trade and Other Receivables 82,903,635 45,999,377 36,607,579 53,984,733 38,411,100
Directors' Current Account 21,451,433 24,401,186 17,881,922 15,699,850 15,699,850
Cash and Cash Equivalents 33,804,396 13,824,402 5,870,920 12,603,076 10,597,376
183,583,725 123,432,550 91,228,775 98,005,731 73,246,319
Total Assets 719,763,043 680,527,546 408,111,726 377,535,274 193,732,137
EQUITY AND LIABILITIES
Stated Capital 15,000,020 15,000,020 15,000,020 15,000,020 20

Reserves 251,056,802 251,056,802 157,556,154 148,575,095 -
Retained Earnings 44,151,731 26,172,536 21,850,049 23,604,081 5,182,016
Total Equity 310,208,553 292,229,360 194,406,223 187,179,196 5,182,036
Non-Current Liabilities
Interest Bearing Loans and Borrowings 187,453,318 158,052,162 71,552,116 44,713,069 47,922,506
Retirement Benefit Liability 7,170,755 8,101,109 4,569,747 3,538,375 513,175
194,624,073 166,153,271 76,121,863 48,251,444 48,435,681
Current Liabilities
Interest Bearing Loans and Borrowings 63,662,873 69,472,934 53,085,947 38,179,818 12,085,353
Trade and Other Payables 101,519,823 102,985,255 52,716,942 58,563,063 97,183,092
Cash and Cash Equivalents 49,747,721 49,686,725 31,780,751 45,361,753 30,845,975
214,930,417 222,144,915 137,583,640 142,104,634 140,114,420
Total Equity & Liabilities 719,763,043 680,527,546 408,111,726 377,535,274 193,732,137
These Financial Statements are in compliance with the requirements of the Companies Act No : 07 of 2007.
30 September 2013
70
STATEMENT OF CHANGES IN EQUITY
Five Years ended 31 March 2013
Stated Capital Retained Revaluation Other Total

Earnings Reserves Reserves
Rs. Rs. Rs. Rs. Rs.
Balance as at 01.04.2008 - - - - -
Share issued during the year 20 - - - 20
Net Profit / (Loss) for the year 5,182,016 5,182,016

-
Balance as at 31.03.2009 20 5,182,016 - - 5,182,036
Issued during the year 15,000,000 - - - 15,000,000

-
Revaluation Surplus/deficit during the year (8,981,059) - (8,981,059)
Reserve arising from new system implementation - - - 157,556,154 157,556,154

-
Net Profit / (Loss) for the year - 18,422,065 - 18,422,065
-
Balance as at 31.03.2010 15,000,020 23,604,081 (8,981,059) 157,556,154 187,179,196
-
Prior year adjustment (8,981,059) 8,981,059 - -
Balance as at 01.04.2010 15,000,020 14,623,022 - 157,556,154 187,179,196
Asset Revaluation - - 93,500,648 - 93,500,648
Net Profit / (Loss) for the year 7,227,026 - 7,227,026

Balance as at 31.03.2011 15,000,020 21,850,048 93,500,648 157,556,154 287,906,870
Prior year Adjustment - (553,978) - - (553,978)
Net Profit / (Loss) for the year - 4,876,466 - - 4,876,466
Balance as at 31.03.2012 15,000,020 26,172,536 93,500,648 157,556,154 292,229,358
Balance as at 31.03.2013 15,000,020 44,151,731 93,500,648 157,556,154 310,208,552
71
2013 2012 (Restated) 2011 2010 2009

Rs. Rs. Rs. Rs. Rs.
17,979,194 4,876,466 7,227,026 18,422,065 5,182,016
51,671,356 51,175,050 41,036,514 31,338,105 7,306,662

- (553,978) 90,831 - -
(760,378) 3,531,362 1,315,355 3,386,000 513,175
67,514,327 44,972,043 40,201,728 16,993,020 6,434,161
- (64,782) (84,667) - -
- 158,336 137,088 137,088 -
- 20,796 - 7,982,408 -
136,404,499 104,115,293 89,923,875 78,258,686 19,436,014
(6,216,676) (8,432,332) (15,150,282) (7,180,079) (8,537,993)

(36,904,258) (9,391,800) 17,377,154 (15,573,633) (38,411,100)
2,949,753 (6,519,264) (2,182,073) - -
(1,465,433) 50,247,065 (5,983,208) (38,620,029) 97,183,091
94,767,886 130,018,962 83,985,466 16,884,945 69,670,012
(51,671,356) (51,175,050) (21,930,683) (31,338,105) (7,306,662)

(169,976) - (283,983) (360,800) -
42,926,554 78,843,912 61,770,800 (14,813,960) 62,363,350
(27,512,728) (191,683,438) (7,696,903) (20,091,710) (124,676,842)

- - 934,667 - -
- - (63,670,386) (1,982,278) (2,243,137)
(27,512,728) (191,683,438) (70,432,622) (22,073,988) (126,919,979)
- - - - 20
(15,699,850)
77,107,780 137,538,475 108,161,086 68,764,884 64,978,213
(32,624,064) (2,859,984) (38,917,656) (27,414,277) (1,701,241)
(39,978,542) (31,791,458) (53,732,763) (16,972,737) (3,269,112)
4,505,174 102,887,033 15,510,667 24,377,870 44,308,030
19,918,999 (9,952,492) 6,848,846 (12,510,078) (20,248,599)

(35,862,323) (25,909,831) (32,758,677) (20,248,599) -
(15,943,324) (35,862,323) (25,909,831) (32,758,677) (20,248,599)
72
Annexure 02
Audited Financial Statements for the
Financial Year ended 31 March 2013
75
76
STATEMENT OF COMPREHENSIVE INCOME
Note 2013 2012 (Restated)

Rs. Rs.
Revenue 3 841,759,807 681,658,828
Cost of Sales 4 505,807,859 405,875,742
Gross Profit 335,951,949 275,783,086
Other Income and Gains 5 3,065,872 415,034
Administrative Expenses 6 (55,190,865) (38,064,966)
Selling and Distribution Cost 7 (214,176,405) (182,081,638)
Finance Cost 8 (51,671,356) (51,175,050)
Profit/ (Loss) Before Tax 17,979,194 4,876,466
Income Tax Expense - -
Profit / (Loss) for the year from continuing operations 17,979,194 4,876,466
Earnings Per Share 12 3
The accounting policies and notes on pages 6 through 25 form an integral part of the financial
statements.
77
As at 31 March 2013
ASSETS Rs. Rs.
Non-Current Assets
Property, Plant & Equipment 10 536,179,318 557,094,996
536,179,318 557,094,996
Current Assets
Inventories 11 45,424,261 39,207,585
Trade and Other Receivables 12 82,903,635 45,999,377
Directors' Current Account 13 21,451,433 24,401,186
Cash and Cash Equivalents 14 33,804,396 13,824,402
183,583,725 123,432,550
Total Assets 719,763,043 680,527,546
Stated Capital 15 15,000,020 15,000,020

Reserves 16 251,056,802 251,056,802
Retained Earnings 44,151,731 26,172,536
Total Equity 310,208,552 292,229,359
Interest Bearing Loans and Borrowings 17 187,453,318 158,052,162
Retirement Benefit Liability 18 7,170,755 8,101,109
194,624,073 166,153,271
Current Liabilities
Interest Bearing Loans and Borrowings 17 63,662,873 69,472,934
Trade and Other Payables 19 101,519,823 102,985,255
Cash and Cash Equivalents 14.2 49,747,721 49,686,725
214,930,417 222,144,915
Total Equity & Liabilities 719,763,043 680,527,546
These Financial Statements are in compliance with the

requirements of the Companies Act No : 07 of 2007.
78
STATEMENT OF CHANGES EQUITY
Stated Capital Retained Earnings Revaluation Other Total

Reserves Reserves
Rs. Rs. Rs. Rs.
Balance as at 01.04.2011 15,000,020 21,850,048 93,500,648 157,556,154 287,906,870
Prior year Adjustment - (553,978) - - (553,978)

Balance as at 31.03.2012 15,000,020 26,172,536 93,500,648 157,556,154 292,229,358
Balance as at 31.03.2013 15,000,020 44,151,731 93,500,648 157,556,154 310,208,552
The accounting policies and notes on pages 6 through 25 form an integral part of the financial statements.
79
CASH FLOW STATEMENT

Rs. Rs.
Cash Flow From / (Used in) Operating Activities
Net Profit / (Loss) Before Income Tax Expense 17,979,194 4,876,466
Adjustments for:
Finance Cost 8 (51,671,356) (51,175,050)
Prior year adjustments - (553,978)
Provision for Gratuity 18 (760,378) 3,531,362
Depreciation 67,514,327 44,972,043
Profit on sales of Property, Plant & Equipment - (64,782)
Provision for Audit Fee - 158,336
Inventory Written Off - 20,796
Operating Profit/(Loss) Before Working Capital Changes 33,061,787 1,765,194
(Increase) / Decrease in Inventory (6,216,676) (8,432,332)

(Increase) /Decrease in Trade & Other Receivables (36,904,258) (9,391,800)
(Increase) /Decrease in Directors' Current Account 2,949,753 (6,519,264)
Increase / (Decrease) in Trade & Other Payables (1,465,433) 50,247,065
Cash Generated from Operations (8,574,826) 27,668,863
Finance Costs Paid 8 51,671,356 51,175,050

Gratuity Paid 18 (169,976) -
Net Cash From /(Used in) Operating Activities 42,926,554 78,843,912
Cash Flow From / (Used in) Investing Activities
Acquisition of Property, Plant & Equipment 10 (27,512,728) (191,683,438)

Net Cash Flow From / (Used in) Investing Activities (27,512,728) (191,683,438)
Cash Flow From / (Used in) Financing Activities

Proceeds From Interest Bearing Loans & Borrowings 77,107,780 137,538,475
Repayment of Interest Bearing Loans & Borrowings (32,624,064) (2,859,984)
Principal Payment under Finance Lease Liabilities (39,978,542) (31,791,458)
Net Cash Flow From / (Used in) Financing Activities 4,505,174 102,887,033
Net Increase /(Decrease) in Cash and Cash Equivalents 19,918,999 (9,952,492)

Cash and Cash Equivalents at the Beginning of the Year (35,862,323) (25,909,831)
Cash and Cash Equivalents at the End of the Year (15,943,324) (35,862,323)
80
NOTES TO THE FINANCIAL STATEMENTS
1.0 Corporate Information
1.1. General Information
Lucky Lanka Milk Processing Company Limited is a limited company incorporated in

and domiciled in Sri Lanka. The registered office is located at Bibulewela, Karagoda,
Matara.
1.2. Principal Activities and Nature of Operations
During the year, the principal activity of the Company was manufacturing milk
oriented productions such as Yoghurt, Milk drinks and Ghee Oil.
1.3. Date of Authorization for Issue
The financial statements of Lucky Lanka Milk Processing Company Limited, for the
year ended 31 March 2013, covering the 01 April 2012 to 31 March 2013, were
authorized for issue in accordance with a resolution of the Board of Directors on 30
September 2013.
81
2.0 Basis of Preparation and Accounting Policies
These financial statements have been prepared in accordance with the Sri Lankan
Financial Reporting Standard for Small and Medium-sized Entities issued by the
Institute of Chartered Accountants of Sri Lanka.
The functional currency of the company is Sri Lankan Rupees. The financial
statements of the company are presented in Sri Lankan Rupees.
2.1 Investments in Associates
Investments in associates are accounted for at cost less any accumulated impairment
losses. Dividend income from investments in associates is recognized when the
Companys right to receive payment has been established. It is included in other
income.
2.2 Revenue Recognition
Revenue from sales of goods is recognized when the goods are delivered and title
has passed. Revenue is measured at the fair value of the consideration received or
receivable, net of discounts and sales-related taxes collected on behalf of the
government. The following specific recognition criteria must also be met before
revenue is recognized:
Sale of Goods - Revenue is recognized when the goods are delivered and the transfer
of risks and rewards has been completed.
Rendering of Services Revenue is recognized on a straight line basis over the

period the service is carried out.
Royalties Revenue from licensing patents is recognized on a straight line basis over
the licensed period.
Rental Income Income is recognized in the statement of comprehensive income on

a straight-line basis over the lease term and is included in other income.
Dividend Income - Dividend income, included under Other income in the income and
retained earnings, is recognized when the right to receive payment is established.
Interest Income - Interest income is recognized as interest accrues, taking into

account the effective yield of the asset.
82
2.3 Property, Plant and Equipment
Items of property, plant and equipment are measured at historical cost less
accumulated depreciation and any accumulated impairment losses.
Depreciation is charged so as to allocate the cost of assets less annual rates
are used for the depreciation of property, plant and equipment:
Plant & Machinery Over 10 Years (10%)
Furniture & Fittings Over 10 Years (10%)
Office Equipment Over 10 Years (10%)
Motor Vehicle Over 5 Years (20%)
Building on Freehold Land Over 20 Years (5%)
Factory Equipment Over 10 Years (10%)
IT Equipment/Computer Software Over 4 Years (25%)
Water Treatment Plant Over 20 Years (5%)
Refrigerator Over 10 Years (10%)
If there is an indication that there has been a significant change in depreciation rate,
useful life or residual value of an asset, the depreciation of that asset is revised
prospectively to reflect the new expectations.
An item of property, plant and equipment is derecognized upon disposal or when no

future economic benefits are expected from its use or disposal. Any gain or loss
arising from de recognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in profit or loss in
the year the asset is derecognized.
2.4 Intangible Assets
Intangible assets are custom made software that is stated at cost less accumulated
amortization and any accumulated impairment losses. It is amortized over its
estimated life of 5 years using the straight-line method. If there is an indication that
there has been a significant change in amortization rate, useful life or residual value
of an intangible asset, the amortization is revised prospectively to reflect the new
expectations.
2.5 Investment Property
The company owns freehold office building and land that is held to earn long term
rental income and for capital appreciation. The property is rental to an external party
and is not used by the company. The investment property is carried at fair value,
derived from the current market value for similar real estate determined annually by
an external valuer. The fair value was derived by adjusting the current market prices
to account for any differences in the nature, condition and location of the property. All
changes in fair value are recognized in profit or loss.
83
2.6 Impairment of Assets
At each reporting date, property, plant and equipment, intangible assets, inventory
and investments in associates are reviewed to determine whether there is any
indication that those assets have suffered an impairment loss. If there is an indication
of possible impairment, the recoverable amount of any affected asset (or group of
related assets) is estimated and compared with its carrying amount. If estimated
recoverable amount is lower, the carrying amount is reduced to its estimated
recoverable amount, and an impairment loss is recognized immediately in profit or
loss.
If an impairment loss subsequently reverses, the carrying amount of the asset (or
group of related assets) is increased to the revised estimate of its recoverable amount
(selling price less costs to complete and sell, in the case of inventories), but not in
excess of the amount that would have been determined had no impairment loss been
recognized for the asset (group of related assets) in prior years. A reversal of an
impairment loss is recognized immediately in profit or loss.
2.7 Leases
Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership of the leased asset to the
Company. All other leases are classified as operating leases.
Rights to assets held under finance leases are recognized as assets of the Company
at the fair value of the leased property (or, if lower, the present value of minimum lease
payments) at the inception of the lease. The corresponding liability to the lessor is
included in the statement of financial position as a finance lease obligation. Lease
payments are apportioned between finance charges and reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are deducted in measuring profit or loss. Assets held under
finance leases are included in property, plant and equipment, and depreciated and
assessed for impairment losses in the same way as owned assets.
Rentals payable under operating leases are charged to profit or loss on a straight-line
basis over the term of the relevant lease.
84
2.8 Inventories
Inventories are stated at the lower of cost and selling price less costs to complete and
sell. Cost is calculated using the first-in, first-out (FIFO) method. Cost includes direct
materials and labor and a portion of manufacturing overhead cost based on normal
operating capacity.
At each reporting date, inventories are assessed for impairment by comparing the
carrying amount of each item of inventory (or group of similar items) with its selling
price less costs to complete and sell. If an item of inventory (or group of similar items)
is impaired, its carrying amount is reduced to selling price less costs to complete and
sell and an impairment loss is recognized immediately in profit or loss.
2.9 Trade and other Receivables

The credit is extended beyond normal credit terms, receivables are measured at
amortized cost using the effective interest method. At the end of each reporting
period, the carrying amounts of trade and other receivables are reviewed to
determine whether there is any objective evidence that the amounts are not
recoverable. If so, an impairment loss is recognized immediately in profit or loss.
2.10 Trade Payables

Trade payables are obligations on the basis of normal credit terms and do not bear
interest. Trade payables denominated in a foreign currency are translated into Sri
Lankan rupees using the exchange rate at the reporting date. Foreign exchange
gains or losses are included in other income or other expenses.
2.11 Employee Benefits

The company has both defined benefit and defined contribution plans. A defined
contribution plan is a pension plan under which the company pays fixed contributions
to a separate entity. A defined benefit plans define an amount of pension benefit that
an employee will receive on retirement, based on the years of service and
compensation.
Defined contribution plans Employees' Provident Fund and Employees' Trust Fund
All employees are eligible for Employees' Provident Fund and Employees' Trust Fund
contributions in line with the prevalent statutes and regulations. The company
contributes 15% and 3% of gross employee emoluments to EPF and ETF
respectively.
Defined benefit plan - The Company has an unfunded, non-contributory defined

benefit plan covering all of its regular employees where the benefits are based on the
years of service and percentage of latest monthly salary. The simplifications on
estimated future salary increases, future service of current employees and in-service
mortality of current employees as per Section 28.19 have been used in calculating the
value of the liability. The gratuity liability is not funded nor actuarially valued.
85
2.12 Provision
Provisions for legal claims are recognized when; the company has a present legal or
constructive obligation as a result of past events, it is probable that a transfer of
economic benefit will be required to settle the obligation and the amount can be
estimated reliably.
The provisions are measured at the present value of the future amount required to
settle the obligation using a pre tax rate reflecting the current assessment of the time
value of money and specific risks relevant for the obligation. The increase in provision
due to time passage is recognized as an interest expense.
2.13 Taxation
a) Current Tax
Pursuant to agreement dated 22nd October 2007 entered into with Board of
Investment under section 17 of the Board of Investment Law the business of Milk
Processing Plant under the 300 (Three Hindered) enterprises program for a
period of 8 years from 22nd October 2007 this exemption expires on 21st
October 2015.
b) Deferred Tax
As the Inland Revenue Act does not apply, temporary differences do not exist
during the tax exemption period. Therefore deferred tax does not apply.
3.0 Transition to the SLFRS for SMEs
3.1 Basis of Transition
The financial statement s of of Lucky Lanka Milk Processing Company Limited, for the
year ended 31st March 2013 are the first annual financial statements prepared to
comply with SLFRS for SMEs.
The date of transition is the 1st of January 2012. The opening balances of the financial
statements are adjusted to comply with the new standards. In preparing these
financial statements the company has applied all mandatory exceptions.
86
3 REVENUE 2013 2012 (Restated)

Rs. Rs.
Sales of Yogurt & Other Products 586,429,137 612,715,125

Fresh Milk Sale 255,330,670 68,943,703
841,759,807 681,658,828
4 COST OF SALES 2013 2012 (Restated)

Rs. Rs.
Stock As At 01.04.2012 11,820,288 14,552,704

Add:
Cost of Production (Statement I) 510,338,750 403,143,325
522,159,038 417,696,029
Stock As At 31.03.2013 (16,351,179) (11,820,287)
Cost of Sales 505,807,859 405,875,742
5 OTHER INCOME 2013 2012 (Restated)

Rs. Rs.
Other Income and Gains (Note: 5.1) 3,065,872 415,034
3,065,872 415,034
OTHER INCOME AND GAIN
Sundry Income 668,366 97,875

Vehicle Rent Income 3,000 315,000
Savings Interest 1,715 2,159
Other Sales Income 865,624 -
Disposal Income 1,527,167 -
3,065,872 415,034
87
6 ADMINISTRATION EXPENSES 2013 2012 (Restated)

Rs. Rs.
Director Remuneration 15,497,006 6,476,335

Salaries & Wages 8,719,958 7,266,503
E.P.F 1,238,765 958,151
E.T.F 309,691 238,938
Gratuity (354,689) 623,852
Office Staff Allowances 4,534,924 3,933,098
Office Salary - Overtime 86,694 16,926
Staff Welfare 700,089 590,622
Printing and Stationery 303,202 225,534
Audit Fee 174,170 158,336
Telephone 447,923 469,810
Insurance 4,639 55,667
Depreciation 5,598,344 4,308,935
Vehicle Hiring Rent 250,610 32,000
Legal Expenses 399,369 554,279
Human Resources Development 541,332 1,148,769
Professional Charges 788,850 184,877
Websites and Internet 573,893 1,462,902
Postages 473,125 323,083
Extension of License - 440,000
Entertainment 1,578,688 610,194
Membership Fee 20,300 2,400
Computer & Software Maintenance 1,282,035 661,878
Office Rent - 345,000
Office Maintenance and Other 1,271,342 2,675,134
Value Creation expenses 3,500 20,796
Branch Visit Expenses 202,179 86,834
New Year Bonus 510,418 408,500
Storage Charges - 75,204
Cooperate Social Responsibilities 532,975 3,710,407
VAT Expenses 9,384,676 -
Ruhunugama Eco Farm Expenses 116,859 -
55,190,865 38,064,966
88
7 SELLING AND DISTRIBUTION COST 2013 2012 (Restated)

Rs. Rs.
Salary & Wages 9,403,005 6,625,697

E.P.F 2,576,883 2,251,285
E.T.F 644,221 562,821
Gratuity (236,053) 1,828,623
Commission and Discount (Note: 7.1) 54,980,010 38,338,670
Depreciation 35,487,911 32,033,239
Vehicle Hiring Rent for Distribution 5,528,289 3,613,907
Advertising 9,549,820 9,450,917
Vehicle Licenses and Insurance 2,500,297 3,553,351
Sales and Market Returns 4,179,212 759,854
Accommodation 118,750 275,267
Traveling and Transport 2,574,786 2,989,128
Allowances 12,363,414 5,206,087
Donation 186,010 88,970
Cool Room Rent 65,862 246,818
Hiring Charges 129,160 202,032
Fuel for Vehicle 15,395,082 7,311,580
Field Visiting Expense - 40,000
Vehicle Maintenance 7,877,856 5,100,400
Warehouse and Depot Expenses (Note: 7.2) 47,445,238 54,861,692
Bad Debts Written Off 156,951 427,276
Business and Sales Promotion 1,858,572 5,046,193
Marketing Staff Welfare 7,740 5,000
Vehicle Branding Expense 760,364 741,336
Kiri katha Outlets Expenses 623,026 521,495
214,176,405 182,081,638
89
7 SELLING AND DISTRIBUTION COST (Contd) 2013 2012 (Restated)

7.1 COMMISSION AND DISCOUNT Rs. Rs.
Sales Commission 18,163,036 11,789,443

Agency/Distributor Commission 5,352,560 2,920,462
Depot Discounts 22,962,351 17,087,809
Marketing Staff Commission - 3,064,387
Sales Discount 248,161 102,921
Super Market Discounts 8,253,902 3,373,649
54,980,010 38,338,670
7.2 WAREHOUSE AND DEPOT EXPENSES 2013 2012 (Restated)

Rs. Rs.
Warehouses' Ordinary Expense 186,125 454,895

Salary and Wages 16,514,973 22,528,510
Building and Premises Rent 4,121,943 4,545,767
Electricity 4,663,476 3,902,347
Water expense 114,344 104,617
Telephone Expense 222,916 402,016
Building and Premises Maintenance 119,978 688,994
Office Equipment Maintenance 59,430 325,456
Fuel for Vehicle 11,014,820 12,635,365
Other Sales Expenses 754,312 804,424
Sales Vehicle Rent 67,000 -
Traveling and Meals 258,799 88,819
Damaged Good 229,990 130,541
Vehicle Maintenance 8,862,599 7,628,278
Printing & Stationery 254,533 621,664
47,445,238 54,861,692
90
8 FINANCE COST 2013 2012 (Restated)

Rs. Rs.
OD Interest 4,846,867 3,875,007

Loan Interest 17,028,503 16,258,111
Stamp Duty 44,240 45,146
Debit Tax - 137,611
Bank Charges 728,695 1,288,991
Lease Interest & Charges 14,958,777 17,380,915
Leasing Charges 401,225 944,440
Other Financial Charges 350,568 44,552
Factoring Charges 2,146,317 3,801,115
Interest on Personal Loans 11,166,162 7,399,161
51,671,356 51,175,050
9 EARNINGS PER SHARE
Basic Earnings Per Share is calculated by dividing the net profit for the year attributable to ordinary shareholders
(after preference share dividends) by the weighted average number of ordinary shares outstanding during the year.
The weighted average number of ordinary shares outstanding during the year and the previous year are adjusted
for events that have changed the number of ordinary shares outstanding, without a corresponding change in the
resources such as a bonus issue.
The following reflects the income and share data used in the basic Earnings Per Share computations.
Amount Used as the Numerator 2013 2012 (Restated)

Rs. Rs.
Net Profit for the year 17,979,194 4,876,466

Net Profit Attributable for Basic Earnings Per Share 17,979,194 4,876,466
2013 2012 (Restated)

Number of Ordinary Shares Used as Denominator
Weighted Average number of Ordinary Shares in issue Applicable to Basic
Earnings Per Share Number Number
Balance at beginning of the year 1,500,002 1,500,002
Issue of shares - -
Balance at end of the year 1,500,002 1,500,002
Adjusted Weighted Average number of Ordinary Shares 1,500,002 1,500,002

applicable to Basic Earnings Per Share - -
1,500,002 1,500,002
Earnings Per Share 12 3
91
10 PROPERY, PLANT & EQUIPMENT Balance as at Additions during Disposals During Balance as at
10.1 At Cost or Valuation 01.04.2012 (Restated) the Year the Year 31.03.2013
Rs. Rs. Rs. Rs.
Freehold Land 63,866,406 979,094 64,845,500

Buildings on Freehold Land 84,129,071 8,092,903 92,221,974
Plant & Machinery 209,446,464 14,263,080 223,709,543
Furniture and Fittings 1,362,758 213,504 1,576,262
Office Equipment 10,475,487 1,608,450 12,083,937
IT Equipment 605,887 1,824,376 2,430,263
Refrigerators 1,130,536 53,071 1,183,607
Motor Vehicles 84,140,335 - 84,140,335
Motor Tricycle 23,406,683 478,250 23,884,933
Water Treatment Plant 3,888,889 - 3,888,889
482,452,514 27,512,728 - 509,965,243
Assets on Finance Leases
Motor Vehicles 60,861,553 3,370,000 - 64,231,553

Plant and Machinery 43,262,023 15,715,921 - 58,977,944
Refrigerators 15,490,946 - - 15,490,946
119,614,521 19,085,921 - 138,700,442
602,067,036 46,598,649 - 648,665,685
10.2 Depreciation Balance as at Charge for Disposals During Balance as at

01.04.2012 (Restated) the Year the Year 31.03.2013
Rs. Rs. Rs. Rs.
Buildings on Freehold Land 2,925,605 3,838,575 6,764,179

Plant & Machinery 4,303,663 21,726,331 26,029,993
Furniture and Fittings 92,132 155,529 247,662
Office Equipment 1,018,961 1,062,476 2,081,437
IT Equipment 77,793 347,320 425,113
Refrigerators 113,054 113,054 226,107
Motor Vehicles 14,762,268 16,828,067 31,590,335
Motor Tricycle 4,681,337 4,728,597 9,409,933
Water Treatment Plant 194,444 194,444 388,889
28,169,256 48,994,392 - 77,163,648
Motor Vehicles 12,172,311 12,209,242 24,381,553

Plant and Machinery 4,326,202 4,701,741 9,027,944
Refrigerators 304,271 1,608,952 1,913,223
16,802,784 18,519,935 - 35,322,719
44,972,040 67,514,327 - 112,486,367
92
10 PROPERTY, PLANT & EQUIPMENT (Contd.)

10.3 Net Book Values Rs. Rs.
At Cost or Valuation
Freehold Land 64,845,500 63,866,406
Buildings on Freehold Land 85,457,795 81,203,466
Plant & Machinery 197,679,550 205,142,801
Furniture and Fittings 1,328,600 1,270,625
Office Equipment 10,002,500 9,456,526
IT Equipment 2,005,150 528,094
Refrigerators 957,500 1,017,482
Motor Vehicles 52,550,000 69,378,067
Motor Tricycle 14,475,000 18,725,347
Water Treatment Plant 3,500,000 3,694,444
432,801,595 454,283,258
Motor Vehicles 39,850,000 31,089,712

Plant and Machinery 49,950,000 56,535,350
Refrigerators 13,577,723 15,186,675
103,377,723 102,811,737
Total Carrying Amount of Property, Plant & Equipment 536,179,318 557,094,996
10.4 The Fair value of property, plant & equipment was determined by means of a revaluation during the
financial year 2012/13 by Messrs. D. Prathapasinghe, Chartered Valuation Surveyor (AIV - Sri Lanka), an
independent valuer in reference to market based evidence. The Valuer has made reference to market
evidence of transacted prices for similar size and location. The results of such revaluation were
incorporated in these Financial statements from its effective date which is 31.03.2013. The Surplus arising
from the revaluation, amounting to Rs. 93,500.648/- was transferred to a Revaluation Reserve.
10.5 With effect from 1 April 2012, the Company reviewed the useful life of each component of property, plant &
equipment. in the review process, the Company has taken the experience of industry trends, supported by
advice of an independent valuer. Accordingly, depreciation was calculated for the year ended 31 March
2013 using a straight line method for each individual significant type of property, plant and equipment.
93
11 INVENTORIES 2013 2012 (Restated)

Rs. Rs.
Raw Materials ( Note: 11.1 ) 24,458,723 21,786,092

Work in Progress (Note: 11.2) 2,286,044 5,601,205
Finished Goods (Note: 11.3) 16,351,179 10,551,176
Consumables and Spares (Note: 11.4) 2,328,315 1,269,112
45,424,261 39,207,585
11.1 Raw Materials
Raw Material 3,264,177 6,097,539

Packing Material 19,221,660 14,042,857
Other Material 1,972,887 1,645,696
24,458,723 21,786,092
11.2 Work in Progress
Semi Finished Good 1,598,430 63,031
Pasteurized Milk 167,283 4,429,457
Work in Progress 159,568 1,108,717
Produced Goods 360,763 -
2,286,044 5,601,205
11.3 Finished Goods
Yoghurt 11,957,395 8,168,797
Drinks Packets 3,348,878 1,327,191
RTS and Milk Toffees 1,044,906 1,055,188
16,351,179 10,551,176
11.4 Consumables and Spares
Engineering Spare Parts 2,053,045 533,435
Stationery 236,989 72,810
RTS - 643,367
Computer Parts 38,281 19,500
2,328,315 1,269,112
12 TRADE AND OTHER RECEIVABLES 2013 2012 (Restated)

Rs. Rs.
Deposit and Prepayments (Note: 12.1) 14,228,003 12,341,343

Trade and Other Receivables (Note: 12.2) 68,675,631 33,658,035
82,903,635 45,999,377
12.1 Deposits and Prepayments

Insurance 1,212,501 829,828
Deposits 1,986,340 2,006,340
Building Rent 1,171,497 657,800
Receivable from Lucky Lanka Dairies (Pvt) Ltd 9,313,885 8,773,432
Salary Deduction -Rep deposit 543,780 73,943
14,228,003 12,341,343
94
12 TRADE AND OTHER RECEIVABLES (Contd) 2013 2012 (Restated)

12.2 Trade and Other Receivables Rs. Rs.
Trade & Other Debtors 32,488,494 7,797,216
Advance 6,920,802 423,737
Commercial Factoring 15,949,343 14,246,822
Other Deductions and Receivables 722,828 188,350
Staff Loans 6,346 7,996
Pending Control AC 840,578 142,500
ESC 5,978,981 5,507,598
Other Receivable 2,408,824 12,800
Ruhunugama Eco farm investment - 50,150
Other Asset Installation 439,453 200
Receivable Insurance Claim - (114,182)
Super Market bill on hand 2,919,983 5,394,848
68,675,631 33,658,035
13 DIRECTORS' CURRENT ACCOUNT 2013 2012 (Restated)

Rs. Rs.
As at 1 April 24,401,186 17,881,922

Loans Advanced During the Year 10,417,436 8,442,396
Loans Repayments Received (13,367,188) (1,923,132)
As At 31 March 21,451,433 24,401,186
14 CASH AND CASH EQUIVALENTS 2013 2012 (Restated)

Rs. Rs.
Components of Cash and Cash Equivalents Balances;
14.1 Favorable Cash and Cash Equivalents Balances
Cash In Hand 5,245,722 2,795,715

Cheques In Hand 5,922,292 6,030,573
Peoples' Bank 269,219 528,017
Union Bank 531,948 1,176,537
Seylan Bank 1,850,259 26,259
Commercial Bank 6,389,298 1,785,556
DFCC Bank 11,677,752 158,000
National Savings Bank - 135,362
Asia Asset Finance Ltd 105,000 100,000
HSBC Bank 193,032 193,532
Lanka Puthra Bank 50,000 50,000
Sampath Bank 829,656 836,396
HNB 2,874 8,454
NTB 22,350 -
Fixed deposit 49168050153) 686,000 -
Pan Asia Bank-S AC-724316100218 28,994 -
33,804,396 13,824,402
14.2 Unfavorable Cash and Cash Equivalent Balances
Peoples' Bank 498,996 3,098

DFCC Bank - 4,120,122
Union Bank 16,380,862 36,419,867
Sampath Bank 551,378 -
Commercial Bank 29,161,452 9,143,637
Seylan Bank 3,130,395 -
NSB bank 24,638 -
49,747,721 49,686,725
Total Cash and Cash Equivalents For the Purpose of Cash Flow Statement (15,943,325) (35,862,323)
Cash In Hand Consists of Main Cash, Petty Cash, All Depot Cash Balances and Rest Represents the Balances
of Fixed Deposits, Current Accounts and Savings accounts. Fixed Deposit has been pledged.
95
15 STATED CAPITAL
Number Rs. Number Rs.
Ordinary Shares (Note: 15.1) 1,500,002 15,000,020 1,500,002 15,000,020

1,500,002 15,000,020 1,500,002 15,000,020
15.1 Ordinary Shares 2013 2012 (Restated)

Number Rs. Number Rs.
Balance at beginning of the year 1,500,002 15,000,020 1,500,002 15,000,020

Issue of shares during the year - - - -
Balance at end of the year 1,500,002 15,000,020 1,500,002 15,000,020

16 RESERVES Rs. Rs.
Revaluation Reserve (Note: 16.1) 93,500,648 93,500,648

Other Reserves 157,556,154 157,556,154
251,056,802 251,056,802

16.1 Revaluation Reserve Rs. Rs.
On Property, Plant & Equipment

As at 1 April 93,500,648 93,500,648
Revaluation Surplus During the Year - -
Write-off Revaluation Deficit - -
As at 31 March 93,500,648 93,500,648
96
17 INTEREST BEARING LOANS & BORROWINGS 2013 2013 2013 2012 (Restated)
Amount Amount Total Total
repayable repayable Amount Amount
within 1 Year after 1 Year
Rs. Rs. Rs. Rs.
Finance Leases & Hire Purchases (Note: 17.1) 31,995,195 36,958,414 68,953,609 89,846,230
Interest Bearing Loans (Note: 17.2) 31,667,678 104,234,141 135,901,819 119,743,866
Advances from Third Parties - 46,260,764 46,260,763 17,935,000
63,662,873 187,453,318 251,116,191 227,525,096
17.1 Finance Leases & Hire Purchases

Lease Creditor Balance Addition Repayment Balance
as at During the During the as at
Name of the Financial Institute 01.04.2012 Year Year 31.03.2013
Rs. Rs. Rs. Rs.
People's Leasing Company PLC 6,613,395 1,668,864 (2,827,275) 5,454,984

Nation Trust Bank 6,334,767 - (2,031,646) 4,303,121
Lanka Orix Leasing Company PLC 22,634,053 - (9,305,181) 13,328,872
Central Finance Company PLC 426,796 - (426,796) -
Sampath Bank PLC 1,178,281 - (1,178,281) -
Union Bank Of Colombo Limited 1,341,506 - (1,341,506) -
Commercial Lease 1,461,932 - (1,461,932) -
Asia Assets Finance PLC 34,452,133 23,899,369 (27,692,073) 30,659,429
Mercantile Investment PLC 34,842,217 - (7,347,245) 27,494,972
Commercial Bank 5,853,876 - (1,325,385) 4,528,491
Gross Liability 115,138,956 25,568,233 (54,937,319) 85,769,869
Finance Charges Allocated for Future Periods Balance Addition Interest Charge Balance
as at During the for the as at
01.04.2012 Year Year 31.03.2013
Rs. Rs. Rs. Rs.
People's Leasing Company PLC 1,191,703 338,864 (710,524) 820,043

Nation Trust Bank 1,774,163 - (1,174,500) 599,663
Lanka Orix Leasing Company PLC 4,220,471 - (2,633,285) 1,587,186
Central Finance Company PLC 4,899 - (4,899) -
Sampath Bank PLC 298,553 - (298,553) -
Union Bank Of Colombo Limited 386,953 - (386,953) -
Commercial Lease 244,871 - (244,871) -
Asia Assets Finance PLC 5,128,830 6,143,448 (5,527,608) 5,744,670
Mercantile Investment PLC 10,786,898 - (3,524,307) 7,262,591
Commercial Bank 1,255,385 - (453,277) 802,108
Total Finance Charges allocated for future Periods 25,292,726 6,482,312 (14,958,777) 16,816,260
Net Lease liability 89,846,230 19,085,921 (39,978,542) 68,953,609
17.2 Interest Bearing Loans Balance Loan obtained Loan payment Balance
as at during the during the as at
01.04.2012 year year 31.03.2013
Rs. Rs. Rs. Rs.
Asia Assets Finance 3,803,850 - (3,803,850) -

Union Bank 113,023,516 30,000,000 (26,614,591) 116,408,925
Commercial Bank 2,916,500 3,286,767 (1,165,112) 5,038,155
Mercantile Investment - 11,715,250 (615,762) 11,099,488
Asia Assets Finance - 3,780,000 (424,750) 3,355,250
119,743,866 48,782,017 (32,624,064) 135,901,819
97
18 PROVISION FOR STAFF RETIREMENT BENEFIT 2013 2012 (Restated)

Rs. Rs.
Retirement Benefit Obligation - Gratuity

As at 1 April 8,101,109 4,569,747
Charge/(Reversal) for the Year (760,378) 3,531,362
Payments made during the year (169,976) -
As at 31 March 7,170,755 8,101,109
19 TRADE AND OTHER PAYABLES 2013 2012 (Restated)

Rs. Rs.
Trade Creditor 57,032,295 61,656,545

Other Creditor and Payable (Note: 19.1) 44,487,528 41,328,710
101,519,823 102,985,255
19.1 Other Creditor and Payables
Other Deposits 420,028 428,776

Agencies Deposits 3,439,233 15,524,703
Other Payable 24,055,449 14,681,806
Audit Fee 174,170 158,336
Salary 13,737,096 8,853,926
PAYE 168,420 163,217
Welfare 2,095,412 1,461,416
Bottle Deposit 67,720 4,538
ESC - 26,285
Prepayment Advance for Fixed Assets 330,000 25,707
44,487,528 41,328,710
98
21 COMMITMENTS AND CONTINGENCIES
The Company has finance leases and hire purchase contracts for various items of plant and machinery These leases have terms
of renewal but no purchase options and escalation clauses. Renewals are at the option of the specific entity that holds the lease.
Future minimum lease payments under finance leases and hire purchase contracts are follow.
Leasing Liability
Within one year 31,995,195

After one year 36,958,414
68,953,609
22 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
There have been no material event occurring after the balance sheet date that require adjustments to or disclosure in the
financial statements.
99
For the year ended 31 March 2013
23 DIRECTORS INTEREST IN CONTRACT AND RELATED PARTY DISCLOSURES
23.1 Key Management Personnel Compensation
The key management personnel of the Company are the members of its Board of Directors .
a) Key Management Personnel Compensation 2013 2012

Rs. Rs.
Short-term employee benefits 15,497,006 6,240,000
Post-employment benefits - 185,682
15,497,006 6,425,682
b) Other Transactions with Key Management Personnel
Loans to Key Management Personnel
As at 1 April 24,401,186 17,881,922

Loans advanced during the year 10,417,436 8,442,396
Loans repayments received (13,367,188) (1,923,132)
As at 31 March 21,451,433 24,401,186
100
Annexure 03
Unaudited Financial Statements for the
Financial Year ended 31 March 2014
103
INCOME STATEMENT
For the Year Ended 31st March 2014
Unaudited Audited
31.03.2014 31.03.2013
Rs. Rs.
Revenue 896,506,319 841,759,807
Cost of Sales (527,059,360) (505,807,859)
Gross Profit 369,446,959 335,951,948
Other Income and Gains 756,398 3,065,872
Administrative Expenses (75,356,608) (55,190,865)
Selling and Distribution Cost (208,073,989) (214,176,405)
Finance Cost (66,434,788) (51,671,356)
Profit/ (Loss) Before tax 20,337,972 17,979,194
Profit / (Loss) for the year from continuing operations 20,337,972 17,979,194
Basic Earning per Share (EPS) Rs. 0.15 0.14
Date: 29.04.2014
Figures in brackets indicate deductions.

STATEMENT OF COMPREHENSIVE INCOME
For theYear Ended 31st March 2014
Unaudited Year Audited Period

ended ended
31.03.2014 31.03.2013
Rs. Rs.
Profit /Loss for the period 20,337,972 17,979,194

Other Comprehensive Income - -
20,337,972 17,979,194
Surplus on Revaluation of PPE -
Net Change in fair value of available for sale financial assets - -
Total Comprehensive Income for the year 20,337,972 17,979,194
104
LUCKY LANKA MILK PROCESSING COMPANY
4 LIMITED
As at 31st March 2014 Unaudited Audited
31.03.2014 31.03.2013
ASSETS Rs. Rs.
Non-Current Assets
Property, Plant & Equipment 513,177,805 536,179,318
513,177,805 536,179,318
Current Assets
Inventories 55,310,466 45,424,261
Trade and Other Receivables 160,358,026 82,903,635
Directors' Current Account (Note 06) 21,763,455 21,451,433
Cash and Cash Equivalents 15,212,835 33,804,396
252,644,782 183,583,725
Total Assets 765,822,587 719,763,043
Stated Capital 296,056,820 15,000,020

Reserves 2 251,056,802
Retained Earnings 64,489,702 44,151,731
Total Equity 360,546,524 310,208,553
Interest Bearing Loans and Borrowings (Note 07) 116,333,032 187,453,318
Retirement Benefit Liability 6,965,870 7,170,755
123,298,902 194,624,073
Current Liabilities
Interest Bearing Loans and Borrowings (Note 07) 112,644,206 63,662,873
Trade and Other Payables 98,538,474 101,519,823
Cash and Cash Equivalents 70,794,481 49,747,721
281,977,161 214,930,417
Total Equity & Liabilities 765,822,587 719,763,043
No of Ordinary Voting Shares 138,028,410 1,500,002

Net Asset Value per share 2.61 206.81
The above figures are provisional and subject to audit.
Sgd.
Finance Officer
The board of directors is responsible for the preparation and presentation of these Financial Statements.
Signed for and on behalf of the board by:
Sgd. Sgd.
Director Director
Date: 29.04.2014
3
105
STATEMENT OF CHANGES EQUITY
For theYear Ended 31st March 2014
Attributable to Equity Holders of the Company
Stated Capital Retained Earnings Revaluation Other Total
Reserves Reserves
Rs. Rs. Rs. Rs. Rs.
Balance as at 01.04.2012 15,000,020 26,172,536 93,500,648 157,556,154 292,229,358

Balance as at 31.03.2013 15,000,020 44,151,730 93,500,648 157,556,154 310,208,552
Capitalisation of Reserves 251,056,800 (93,500,648) (157,556,152) -
Share Issued During the Year 30,000,000 30,000,000

-
Balance as at 31.03.2014 296,056,820 64,489,702 - 2 360,546,524
106
STATEMENT OF CASH FLOW
As at 31st March 2014
Unaudited Audited Period

Year ended ended
31.03.2014 31.03.2013
Cash Flow From / (Used in) Operating Activities
Net Profit / (Loss) Before Income Tax Expense 20,337,972 17,979,194
Adjustments for:
Finance Cost 66,434,788 51,671,356
Provision for Gratuity - (760,378)
Depreciation 36,685,117 67,514,327
Operating Profit/(Loss) Before Working Capital Changes 123,457,878 136,404,499
(Increase) / Decrease in Inventory (9,886,205) (6,216,676)

(Increase) /Decrease in Trade & Other Receivables (77,454,391) (36,904,258)
(Increase) /Decrease in Directors' Current Account (312,022) 2,949,753
Increase / (Decrease) in Trade & Other Payables (2,981,349) (1,465,433)
Cash Generated from Operations 32,823,911 94,767,886
Finance Costs Paid (66,434,788) (51,671,356)

Gratuity Paid (204,855) (169,976)
Net Cash From /(Used in) Operating Activities (33,815,732) 42,926,554
Cash Flow From / (Used in) Investing Activities

Proceeds From Issue of Shares 30,000,000 -
Acquisition of Property, Plant & Equipment (13,683,604) (27,512,728)
Net Cash Flow From / (Used in) Investing Activities 16,316,396 (27,512,728)
Cash Flow From / (Used in) Financing Activities

Net Proceeds From Interest Bearing Loans & Borrowings (22,138,953) 4,505,652
Net Cash Flow From / (Used in) Financing Activities (22,138,953) 4,505,174
Net Increase /(Decrease) in Cash and Cash Equivalents (39,638,290) 19,918,999

Cash and Cash Equivalents at the Beginning of the Year (15,943,324) (35,862,323)
Cash and Cash Equivalents at the End of the Year (55,581,614) (15,943,324)
107
01
02
03
04
05
6 DIRECTORS INTEREST IN CONTRACT AND RELATED PARTY DISCLOSURES Unaudited Audited

31.03.2014 31.03.2013
Rs. Rs.
6.1 Key Management Personnel Compensation
The key management personnel of the Company are the members of its Board of Directors .
a) Key Management Personnel Compensation
Short-term employee benefits 22,103,565 15,497,006

Post-employment benefits - -
22,103,565 15,497,006
b) Other Transactions with Key Management Personnel
Loans to Key Management Personnel
As at 1 April 21,451,433 24,401,186

Loans advanced during the year 2,008,573 10,417,436
Loans repayments received (1,696,551) (13,367,188)
As at 31 March 21,763,455 21,451,433
108
As at 31st March 2014
7 INTEREST BEARING LOANS & BORROWINGS 2014 2014 2014 2013

Amount Amount Total Total
repayable repayable Amount Amount
within 1 Year after 1 Year
Rs. Rs. Rs. Rs.
Finance Leases & Hire Purchases 21,294,414 28,718,860 50,013,274 68,953,609

Interest Bearing Loans 77,084,146 87,614,172 164,698,318 135,901,819
Advances from Third Parties 14,265,647 - 14,265,647 46,260,763
112,644,206 116,333,032 228,977,238 251,116,191
Finance Leases & Hire Purchases

Net Lease liability Balance Addition Repayment Balance
as at During the During the as at
Name of the Financial Institute 01.04.2013 Year Year 31.03.2014
Rs. Rs. Rs. Rs.
People's Leasing Company PLC 4,634,941 - 3,627,445 1,007,496

Nation Trust Bank 3,703,458 5,000,000 3,040,652 5,662,805
Lanka Orix Leasing Company PLC 11,741,686 - 7,423,502 4,318,184
Central Finance Company PLC - 5,262,361 583,384 4,678,977
Asia Assets Finance PLC 24,914,759 - 11,676,349 13,238,410
Mercantile Investment PLC 20,232,381 8,675,000 12,325,254 16,582,127
Commercial Bank 3,726,383 - 3,107,655 618,727
DFCC - 4,000,000 93,453 3,906,547
Gross Liability 68,953,609 22,937,361 41,877,696 50,013,274
Interest Bearing Loans Balance Loan obtained Loan payment Balance

as at during the during the as at
01.04.2013 year year 31.03.2014
Rs. Rs. Rs. Rs.
Union Bank 116,408,925 2,525,531 8,182,739 110,751,718

Commercial Bank 5,038,155 5,500,000 1,236,334 9,301,821
Mercantile Investment 11,099,488 - 3,984,528 7,114,960
Asia Assets Finance 3,355,250 - 998,984 2,356,266
NDB - 65,738,653 30,565,100 35,173,553
135,901,819 73,764,184 44,967,685 164,698,318
109
Corporate Information
Name of the Company Lucky Lanka Milk Processing Co. Limited

Registered Office Bibulawela, Karagoda, Uyangoda.
Telephone No. 94 412 292652 / 93031 /93032
Fax No. 94 412 292831
Email Address [email protected]
Web Address www.luckylanka.com
Date, Place of Incorporation PB 3006

15.06.2007
Companies Act No. 07 of 2007
Board of Directors Lal Keerthi Amarasiri Gunawardene

Namalie Amarasiri Gunawardene
Daisy Amarasiri Gunawardene
Badra Amarasiri Gunawardene
L J P Anura Prasanna Jayasooriya
D B Sunil Charmara Bandara
Secretaries to the Company Managers & Secretaries (Private) Limited

No.08, Tickell Road, Colombo 08.
Auditors Ernst & Young

Chartered Accountants
16/1 ,Alawella Road
Off Dharmapala Mawatha,Matara.
Lawyers Gowers International Legal Consultants & Corporate Lawyers,

No 07,Gower Street,
Colombo 05.
Bankers Commercial Bank Of Ceylon PLC

Union Bank PLC
NDB Bank PLC
NTB Bank PLC
DFCC Bank PLC
110
Annexure 04
Collection Points
113
Merchant Bank of Sri Lanka PLC
BRANCHES
Anuradhapura Branch Ambalantota Branch Avissawella Branch

No. 7 B, Maithreepala No. 133, Main Street No. 87, Rathnapura Road
Senanayaka Mawatha Amabalantota Avissawella
Anuradhapura Tel: 047 4933660-1 Tel: 036 4928208
Tel: 025 4580507 Fax: 047 2225610 036 4928209
025 2234485 [email protected] Fax: 036 2232030
Fax: 025 4580508 [email protected]
[email protected]
Batticaloa Branch Bandarawela Branch Chilaw Branch

No. 28, Bar Road No. 11, Thanthiriya Road No. 79/G, Kurunegala Road
Batticaloa Bandarawela Chilaw
Tel: 065 4926799 Tel: 057 4926910 Tel: 032 4928790-3
065 4926787 057 4926911 Fax: 032 2224033
Fax: 065 2228575 Fax: 057 2233807 [email protected]
[email protected] [email protected]
City Office Deniyaya Branch Galle Branch

No. 153, Union Place No. 1/153, Hospital Road No. 34, Wackwella Road
Colombo 02 Deniyaya Galle
Tel: 011 4361571-581 Tel: 041 4935173 Tel: 091 2234751
Fax: 011 2328688 041 4935174 091 4924912-3
[email protected] Fax: 041 2273731 Fax: 091 2234750
Hatton Branch Head Office Kandy

No. 263 Bank of Ceylon Merchant No. 132-1/1
Dimbula Road Tower D S Senanayake Veediya
Hatton No. 28, St Michaels Road Kandy
Tel: 051 4924641-2 Colombo 3 Tel: 081 2224818-20,
Fax: 051 2224375 Tel: 011 4711711 081 4481702,
011 2565636 081 2224819-20
Fax: 011 4711743-759 Fax: 081 4481701
Kurunegala Maharagama Monaragala

No. 40, Kandy Road No. 159, Avissawella Road No. 280,Wallawaya Road
Kurunegala Maharagama Monaragala
Tel: 037 4692006 Tel: 011 2745431 Tel: 055 4929361
037 4939836 011 4306096/7 055 4929362
Fax: 037 2223916 Fax: 011 2745451 Fax: 552276087
[email protected] [email protected] [email protected]
114
Negombo Nittambuwa Panadura
No. 616, Colombo Road No. 101, Kandy Road No. 2/159,Galle Road
Kurana, Negombo Nittambuwa Panadura
Tel: 031 4933922 Tel: 033 4937564 Tel: 038 4927941
031 4932230 033 4937565 038 4927942
Fax: 031 2228466 Fax: 033 2288842 Fax: 038 2236889
[email protected] [email protected] [email protected]
Rathnapura Trincomalee Vavuniya

No. 231, Main street No. 53, North Coast Road No. 99, Station Road
Rathnapura Trincomalee Vavuniya
Tel: 045 4928089 Tel: 026 4928888 Tel: 024 4925475
045 4928093 Fax: 026 2226784 024 4588685
Fax: 045 2232524 [email protected] Fax: 024 2226108
SERVICE CENTERS
Ampara Ambalangoda Embilipitiya

No. 64A, D.S Senanayake No. 100, Polwatte Road No. 4/19,Bimbaduyaye
Mawatha Poramba Embilipitiya
Ampara Ambalangoda Tel: 047 4931992
Tel: 063 4923540 Tel: 091 4943759 047 4931993
063 4923541 091 4943765 Fax: 047 2261735
Fax: 063 2224260 Fax: 091 2256675 [email protected]
Higurakgoda Kakirawa Kandana

No. 1, Damana Kumbura, No. 24,Yakkala Road, No. 310, Colombo Road
Air port Road Kakirawa Kandana
Higurakgoda Tel: 025 4928951 Tel: 011 4344072
Tel: 027 4924761 025 4928952 011 4344073
027 4924762 Fax: 025 2264799 Fax: 011 2949890
Fax: 027 2245483 [email protected] [email protected]
[email protected]
Mahaiyawa Mathugama Puttalam

No. 213, Katugasthota Road No. 4/92, No. 01,Stadium Complex
Kandy Agalawaththa Road Kurunegala Road
Tel: 081 4951786 Mathugama Puttalam
081 4951787 Tel: 011 4306096 Tel: 032 4928795
Fax: 081 2213880 011 4306097 032 4928796
[email protected] Fax: 011 2745451 Fax: 032 2267776
115
MEMBERS AND TRADING MEMBERS OF THE COLOMBO STOCK EXCHANGE
Acuity Stockbrokers (Pvt) Ltd Bartleet Religare Securities (Pvt)

Level 6, Acuity House Limited
No. 53, Dharmapala Mawatha, Colombo 3 Level "G", "Bartleet House"
Tel: +94 11 2 206 206 No. 65, Braybrooke Place, Colombo 2
Fax: +94 11 2 206 298 - 9 Tel:+94 11 5 220 200
E-mail: [email protected] Fax: +94 11 2 434 985
Website: www.acuity.lk E-mail: [email protected]
Website: www.bartleetstock.com
John Keells Stock Brokers (Pvt) Ltd Asha Phillip Securities Ltd
No. 130, Glennie Street Alfred House Gardens
Colombo 2 2nd Floor, Lakshman Building
Tel: +94 (0) 11 2 306 250, 2 342 066-7, No. 321, Galle Road, Colombo 03
2 338 066-7, 2 439 047-8, 4 710 721-4 Tel : +94 11 2 429 100
Fax: +94 (0) 11 2 342 068, 2 326 863 Fax : +94 11 2 429 199
E-mail: [email protected] E-mail: [email protected]
Website: www.jksb.keells.lk Website:www.ashaphillip.net
LOLC Securities Limited Assetline Securities (Pvt) Ltd

Level 18, West Tower No. 120A, Pannipitiya Road
World Trade Centre Battaramulla
Echelon Square Tel: +94 11 4 700 111, 2 307 366
Colombo 1 Fax: +94 11 4 700 112, 2 307 365
Tel: +94 11 7 880 880 E-mail:[email protected]
Fax: +94 11 2 434 771 Website:
http://www.assetline.lk/stock_brokering.html
Somerville Stockbrokers (Pvt) Ltd J B Securities (Pvt) Ltd

No. 137, Vauxhall Street No. 150, St. Joseph Street
Colombo 2 Colombo 14
Tel: +94 11 2 329 201-5, 2 332 827, Tel:+94 11 2 490 900, 077 2 490 900,
2 338 292-3 077 2 490 901
Fax: +94 11 2 338 291 Fax:+94 11 2 430 070, 2 446 085, 2 447 875
E-Mail: [email protected] E-mail: [email protected]
Website: www.jbs.lk
Lanka Securities (Pvt) Ltd Asia Securities (Pvt) Ltd

No. 228/2, Galle Road Level 21, West Tower, World Trade Centre
Colombo 04 Echelon Square, Colombo 1
Tel:+94 11 4 706 757, 2 554 942 Tel:+94 11 2 423 905, 5 320 000
Fax:+94 11 4 706 767 Fax:+94 11 2 336 018
E-mail: [email protected] E-mail: [email protected]
Website: www.lsl.lk Website: www.asiasecurities.net
116
Nation Lanka Equities (Pvt) Ltd Capital Trust Securities (Pvt) Ltd
No. 44, Guildford Crescent No. 42, Mohamed Macan Markar Mawatha
Colombo - 07 Colombo 3
Tel:+94 11 4 714 300, 4 714 388, 4 714 389, Tel:+94 11 2 174 174, +94 11 2 174 175
077 3 421 821 Fax:+94 11 2 174 173
Fax:+94 11 2 387 228 E-mail: [email protected]
E-mail: [email protected] Website: www.capitaltrust.lk
Website: www.nlequities.com
S C Securities (Pvt) Ltd CT Smith Stockbrokers (Pvt) Ltd

2nd Floor, No. 55 No. 4-14, Majestic City, 10, Station Road
D.R. Wijewardena Mawatha Colombo 4
Colombo 10 Tel. +94 11 2 552 290 - 4
Tel:+94 11 4 711 000 / +94 11 47 11 001 Fax: +94 11 2 552 289
E-mail:[email protected] Website: www.ctsmith.lk
Website: www.sampathsecurities.lk
First Capital Equities (PVT) Ltd NDB Stockbrokers (Pvt) Ltd

No. 01, Level 2 5th Floor, NDB Building, No. 40
Lake Cresecnt, Colombo 02 Navam Mawatha
Tel:+94 11 5 700 777 Colombo 2
Fax:+94 11 5 736 264 Tel:+94 11 2 314 170 to 2 314 178
E-mail: [email protected] Fax:+94 11 2 314 180
Website: www.dnhfinancial.com E-mail: [email protected]
Website: www.ndbs.lk
Capital Alliance Securities (Pvt) Ltd SMB Securities (Pvt) Ltd

Level 5, "Millennium House" No. 47, Dharmapala Mawatha
No. 46/58, Navam Mawatha Colombo 3
Colombo 2 Tel: +94 5 232 091
Tel:+94 11 2 317 777 Fax: +94 2 339 292
E-mail: [email protected] Website: www.smblk.com
Website: www.capitalalliance.lk
First Guardian Equities (Pvt) Ltd Taprobane Securities (Pvt) Ltd

32nd Floor, East Tower, World Trade Centre, 2nd Floor
Echelon Square No. 10, Gothami Road
Tel: +94 11 5 884 400 (Hunting) Tel: +94 11 5 328 200
Fax: +94 11 5 884 401 Fax: +94 11 5 328 277
E-mail: [email protected] E-mail: [email protected] , [email protected]
Website: www.firstguardianequities.com Website: www.taprobanestocks.com
117
Candor Equities Ltd SKM Lanka Holdings (Pvt) Ltd
Level 8, South Wing No. 35/1, Alwis Place
Millennium House Colombo - 03
No. 46/58 Nawam Mawatha Tele : +94 11 2 344 444
Colombo 02 Fax : +94 11 2 434 198
Tel: +94 11 2 359 100 E-mail: [email protected]
Fax: +94 11 2 305 522 Website: www.skmlankaholdings.com
E-mail:[email protected]
Website: www.heraymila.com
IIFL Securities Ceylon (Pvt) Ltd TKS Securities (Pvt) Ltd

27th Floor, East Tower No. 19-01, East Tower
World Trade Centre, Echelon Square World Trade Centre, Echelon Square
Colombo 1 Colombo 1
Tel: +94 11 2 333 000 Tel: +94 11 7 857 799
Fax: +94 11 2 333 383 Fax: +94 11 7 857 857
E-mail:[email protected] E-mail: [email protected]
Website: www.tks.lk
Richard Pieris Securities (Pvt) Ltd Claridge Stockbrokers (Pvt) Ltd

No. 55/20, Vauxhall Lane, Colombo 02 No.10 Gnanartha Pradeepa Mawatha
Tel: +94 11 5900800 Colombo 8
Fax: +94 11 2330711 Tel: +94 11 2 697 974
E-mail:[email protected] Fax: +94 11 2 689 250
E-mail: [email protected]
Navara Securities (Pvt) Ltd Softlogic Stockbrokers (Pvt) Ltd

2nd Floor, No. 45/2 No. 06, 37th Lane
Braybrooke Street Queen Road, Colombo 03
Colombo 2 Tel: +94 11 7 277 000 to 98
Tel: +94 11 2 358 700-20 Fax: +94 11 7 277 099
Fax: +94 11 2 358 701 Email: [email protected]
Email: [email protected] Website: www.softlogicequity.lk
Website: www.nws.lk
First Capital Markets Limited

(Trading Member - Debt)
No. 75, Arnold Ratnayake Mawatha
Colombo 10
Tel: +94 11 2 639 898, +94 11 2 681 888
Fax: +94 11 2 639 899, +94 11 2 681 460
E-Mail: [email protected]
Web site: www.firstcapital.lk
118
Bankers to the Issue
Bank of Ceylon
121
BOC Branch Address Contact no
Addalaichchenai Main street , Addalaichchenai 067 2279303
Agalawatta No.05, Kalutara Road, Agalawatta 034 2247480
Agarapathana No. 23, Main Street , Agarapathana 051 2230133
Ahangama No. 71/1, Galle Road, Ahangama 091 2283977
Ahungalla No. 60, Galle Road, Ahungalla 091 2264107
Akkaraipattu No. 288, Main Street, Akkaraipattu 067 2279242
Akurana No. 197, Kurundugahawela, Matale Rd, Akurana 081 2301477
Akuressa No. 64, Matara Road, Akuressa 041 2283280
Alawathugoda No. 1496, Matale Road, Alawathugoda 066 2242327
Alawwa No. 64, Giriulla Road, Alawwa 037 2278180
Aluthgama No. 267, Galle Road, Aluthgama 034 2271413
Ambalangoda No. 345, Galle Road, Ambalangoda 091 2256307
Ambalantota No. 11, Wanduruppa Road, Ambalantota 047 2223280
Ambanpola Jayani Building, Anuradhapura Road, Ambanpola 037 2254099
Ampara No. 115 A, D.S.Senanayayka Street, Ampara 063 2222981
Ampara Kachcheri Kachcheri Building, Ampara 063 2224150
Anamaduwa No. 27, 27/1, 31, Kurunegala Road, Anamaduwa 032 2263280
Anandakulam Anandakulam , Adampan 024 3248035
Anavilundawa No. 55+57,Puttalam Rd, Anavilundawa 032 2259050
Andiambalama No. 113, Minuwangoda Road, Andiambalama 011 2258184
Angunakolapellasa Hungama Road, Angunakolapellasa 047 2229120
Anuradhapura New Town, Anuradhapura 025 2223685
Anuradhapura General Hospital, Anuradhapura 025 2222261
Anuradhapura Kachcheri Building, Anuradhapura 052 2222142
Anuradhapura City Market Complex, Anuradhapura 025 2222160
Anuradhapura SGB Maithripala Senanayake Mawatha, Anuradhapura 025 2222393
Aralaganwila Aralaganwila 066 2279257
Aranayake No. 480, Dippitiya, Aranayake 035 2258016
Arayampathy Co-Operative Building, Kalmunai Road, Arayampathy 065 2247939
Atchuvely Central College View, Rosa Veethy, Atchuvely 021 2263402
Athurugiriya No. 70/20, Malabe Road, Athurugiriya. 011 2561378
Avissawella No. 47, Dharmapala Mawatha, Avissawella 036 2222099
Ayagama No. 38, Kalawana Road, Ayagama 045 2250080
Badalkumubura No. 202, Main street, Badalkumbura 055 2250279
122
Baddegama Abeywickrama Building, Baddegama 091 2292280
Badulla City No. 01, Bandarawela Road, Badulla 055 2229580
Badulla Kachcheri Kachcheri Building, Badulla 055 2225475
Badulla SGB Bank Road, Badulla SGB 055 2222980
Baduraliya No. 36/1 Agalawatta Road, Baduraliya 034 2244952
Bakamoona Lanka Banku Mawatha, Bakamoona 066 2256680
Balangoda No. 137, Main Street, Balangoda 045 2288390
Balleketuwa No. 36, Passara Road, Balleketuwa 055 2285160
Bambalapitiya SGB No. 20, Galle Road, Bambalapitiya 011 5368439
Bandaragama Janadhipathi Mawatha, Bandaragama 038 2290280
Bandarawela No. 198/B, Badulla Road, Bandarawela 057 2230014
Barawakumbuka New Road, Barawakumbuka 047 3621008
Batapola Aluthmawatha, Batapola 091 2260405
Battaramulla No. 75/A, Main Street, Battaramulla 011 2862575
Batticaloa Covington Road, Batticaloa 065 2227410
Batticaloa Kachcheri Building, Batticaloa 065 2228688
Batticaloa City No. 05, Station Road, Batticaloa 065 2227032
Beliatta No. 48, Tangalle Road, Beliatta 047 2243274
Bentota Tourist Village, Bentota 032 275283
Beruwala No. 165 A, Galle Road, Beruwala 034 2279899
Bibile No. 41, Mahiyangana Road, Bibile 055-2265480
Bingiriya No. 35 A, Chilaw Road, Bingiriya 032 2246107
Biyagama IPZ Administrative Complex, Biyagama 011 5558970
BMICH Premises BMICH Premises, Colombo: 07. 011 2696820
Board of Investment Sri Lanka Port Authority, Colombo: 01 011 2448875
Bodyline (Pvt) Ltd Rathnapura Road, Gurugoda, Horana. 011 2485500
Bogahakumbura Ambewela Road, Bogahakumbura. 057 2280088
Bogawantalawa No: 30, Bridwell Bazaar, Bogawantalawa. 052 2267599
Bokkawala No: 33/1B, Main Street, Bokkawala 081 2461056
Bombuwala Temple Road, Bombuwala. 034 2289824
Bopitiya No: 02 ,Bopitiya Junction, Pamunugama, Bopitiya. 011 2243172
Boralasgamuwa No 8 ,Colombo Road , Boraiesgamuwa. 011 2518478
Borella 2nd No: 845, Super Market Complex, Borella. 011 2685140
Borella SGB No: 71, Danister De Silva Mawatha, Borella. 011 4612617
123
Bulathkohupitiya No. 76, Kegalle Road, Bulathkohupitiya 036 2247356
Bulathsinhala No. 40, Horana Road, Bulathsinhala 034 2283116
Buttala No. 23, Moneragala Road, Buttala 055 2273980
Canal Yard SLPA Sri Lanka Port Authority, Colombo 01 011 2483526
Cargo Office IPZ Katunayake 011 2251943
Central Bus Stand Central Bus Stand, Colombo 011 5365118
Central Hospital No.114, 4th Floor, Norris Canal Road, Colombo 10 011 2690546
Central Super Market 2nd Floor , Central Super Market, Colombo 011 2446475
Ceylon Shipping Lines No. 450, D R Wijewardena Mawatha, Colombo 10 011 2445268
Chankanai Karainagar Road, Chankanai 021 2250015
Chavakachcheri VMK Building, Kandy Road, Chavakachcheri 021 2227396
Chenkaladi No. 06, Trincomalee Road, Chenkaladi 065 2240492
Chilaw Radaguru Edmund Peiris Mawatha, Chilaw 032 2223401
China Bay China Bay Road, China Bay 026 2242327
Chunnakam No. 146, KKS Road, Chunnakam 021 2214228
City Office, Colombo No. 41, Bristol Street, Colombo 011 2329413
Colombo 07 No. 30/ A, Independent Avenue, Independent Square 011 2678073
Corporate No.4 Bank of Ceylon Mawatha 011 2446817
Dambadeniya No. 70, Kurunegala Road Dambadeniya 037 2266144
Dambagalla Makulla Town, Dambagalla 055 2275082
Dambulla No. 438/B, Kandy Road, Dambulla 066 2285270
Dambulla Dedicated Economic Centre, Dambulla 066 2285217
Dankotuwa No. 46, 48, Kurunegala Road, Dankotuwa 031 2258180
Danture No. 572, 572/ A, Main Street, Danture 081 2575228
Daulagala No. 01/1, Imbuldeniya, Handessa, Daulagala 081 2315171
Dehiattahandiya New Town, Dehiattahandiya 027 2250287
Dehiowita No. 62, Main Street, Dehiowita 036 2222580
Dehiwala SGB No. 207, Galle Road, Dehiwala 011 2738335
Deiyandara Hakmana Road, Deiyandara 041 2268598
Delgoda No. 351/ H/5, New Kandy Road, Delgoda 011 2402970
Dematagoda No. 45, 37, Kolonnawa Road, Dematagoda, Colombo 9 011 5335594
Deniyaya No. 91/ A , Verahena Road, Deniyaya 041 2273870
Deraniyagala No. 37, Nuri Road, Deraniyagala 036 2249280
Devinuwara Tangalle Road, Devinuwara 041 2222247
124
Dharga Town No. 298, Main street, Matugama Road, Dharga Town 034 2275411
Dickwella No. 28 & 28/1, Beliatta Road, Dickwella 041 2255280
Digana No. 2, Rajawella, New Town, Digana 081 2376928
Divulupitiya No. 34, Negombo Road, Divulupitiya 031 2246280
Diyatalawa No. 28, Chandrasiri Building, Bandarawela Road, Diyatalawa 057 2229092
Dodangoda No. 14, Tudugala, Matugama Road, Dodangoda 034 2281628
Dummalsuriya No. 227, Kuliyapitiya - Madampe Road, Dummalsuriya 032 2240690
Eastern University Eastern University, Vantharumoolai, Batticaloa 065 2240490
Eheliyagoda No. 46, Main Street, Eheliyagoda 036 2259571
Ella Wellawaya Road, Ella 057 2228899
Elpitiya Janadhipathi Mawatha, Elpitiya 091 2291280
Embilipitiya No. 545, New Town, Embilipitiya 047 2230980
Endana New Town, Endana, Gabbela 060 2450661
Enderamulla No. 117, Gongithota Road, Enderamulla, Wattala 011 2937240
Eppawala Talawa Road, Eppawala 025 2249180
Eravur MPCS Building, Punnakudah Road, Eravur 065 2241012
Ethiliwewa Ethiliwewa Junction, Ethiliwewa 055 3594115
Ettampitiya No. 23, Nuwara Eliya Road, Ettampitiya 055 2294080
Fifth City, Colombo No. 85, York Street, Colombo 011 2449646
Gal Amuna Gal Amuna Pansalgodala, Gal Amuna 027 2226650
Galagedara No. 237, Rambukkana Road, Madige, Galagedara 081 2461214
Galaha No. 59/37, Deltota Road, Galaha 081 2467213
Galenbindunuwewa Denzil Kobbekaduwa Mawatha, Galenbindunuwewa 025 2258280
Galewala No. 168, Kurunegala - Dambulla Road, Galewala 066 2289262
Galgamuwa No. 67,69 , Anuradhapura Road, Galgamuwa 037 2253080
Galigamuwa Avissawella Road, Galigamuwa junction, Galigamuwa 035 2282050
Galkiriyagama New Town, Galkiriyagama 025 2265299
Galle SGB No. 02, Light House Street, Fort, Galle 091 2232269
Galnewa Thambuttegama Road, Galnewa 025 2269580
Gampaha SGB No. 16, Rest House Road, Gampaha 033 2234404
Gampola No. 44, Kadugannawa Road, Gampola 081 2350108
Ganemulla No. 378/C, Kadawatha Road, Ganemulla 033 2264888
Gelioya No. 430, Karamada 081 2310214
Ginigathhene No. 29/B, Colombo Road ,Ginigathhena 051 2242310
125
Girandurukotte New Town, Girandurukotte 027 2254380
Giriulla Market Complex, Giriulla 037 2288080
Godakawela No. 168, Main Street, Godakawela 045 2240080
Gonagaldeniya Basnagoda Road, Gonagaldeniya. 036 5677923
Gonagolla Kandy Road, Gonagolla 063 2224943
Gonapola No. 643, Colombo Road, Palannaruwa, Gonapola 034 2257550
Gothatuwa No. 33, Gothatuwa New Town 011 5344593
Grandpass No. 703, Sirimavo Bandaranaike Mawatha, Colombo 14 011 2448202
Habarana Trincomalee Road, Habarana 066 2270048
Hakmana Beliatta Road, Hakmana 041 2286280
Haldumulla Divisional Secretariat Complex, Haldumulla 057 2268271
Hali-Ela No. 47, Bandarawela Road, Hali-Ela 055 2295080
Hambantota No. 33, Tower Hill Road, Hambantota 047 2220180
Hanwella No. 133/8, Low Level Road, Hanwella 036 2253520
Haputale No. 20, Station Road, Haputale 057 2268080
Hasalaka New Town, Hasalaka 055 2257180
Hatharaliyadda No. 21/5, Kandy Road , Hatharaliyadde 081 2464187
Hatton No. 46, Circular Road 051 2222015
Hemmathagama No. 86, Mawanella Road, Hemmathagama 035 2257280
Hettipola No. 141, Kurunegala Road, Hettipola 037 2291080
Hikkaduwa No. 223, Galle Road, Hikkaduwa 091 2277813
Hingurakgoda Saint Michel Building, Main Street, Hingurakgoda 027 2247642
Hingurana Jeyalanka Building, Hingurana Junction, Hingurana 063 2240037
Hiripitiya No. 35/1,Kumbukgete Road, Hiripitiya 037 2264080
Homagama No. 93, High Level Road, Homagama 011 2855059
Horana SGB No. 87, Anguruwatota Road, Horana 034 2260428
Horawpothana Anuradhapura Road, Horawpothana 025 2278416
Hulftsdorp No. 30, St. Sebastian Hill, Hulftsdorp, Colombo 12 011 2422770
Hyde Park, Colombo No. 500, T B Jayah Mawatha, Colombo 10 011 2687483
Ibbagamuwa No. 110, Dambulla-Kurunegala Rd, Ibbagamuwa 037 2259970
Idangoda No. 07/ A, Idangoda 045 2265080
Imaduwa Ahangama Road, Imaduwa 091 2286030
Ingiriya No. 20, Panadura Road, Ingiriya 034 2269280
Ipalogama Kekirawa Road, Ipalogama 025 2264279
126
Isurupaya Administrative Complex, Ministry of Education, Isurupaya, Pelawatta 011 2785875
Ja Ela No. 19, Negombo Road, Ja Ela 011 5342311
Jaffna Main street St Martin Bishops House, Main street, Jaffna 021 2224564
Jaffna SGB No. 476, 476A, Hospital Road, Jaffna 021 2224018
Jawatta Inland Revenue Building, Jawatta 011 5657162
Jayanthipura 22nd Mile Post, Jayanthipura 027 2222266
Kadawatha No. 469, Ragama Road, Kadawatha 011 2920687
Kaduruwela No. 612,614, Batticaloa Road, Kaduruwela 027 22225025
Kaduwela Avissawella Road, Kaduwela 011 2537999
Kahatagasdigiliya Trincomalee Road, Kahatagasdigiliya 025 2247480
Kahawatta No. 746, Main Street, Kahawatta 045 2270180
Kaithady Kandy Rd, Jaffna. 021 3737100
Kalawana No. 53C, Rathnapura Road, Manana, Kalawana 045 2255280
Kallady No. 180/A , New Kalmunai Road, Kallady 065 2227962
Kallar Main street , Periyakallar, Kallar 067 2225421
Kalmunai No. 78, Kitddanki Road, Kalmunai 067 2229340
Kalpitiya No. 90, Main Street, Kalpitiya 032 2260702
Kalutara Kachcheri Kachcheri Building, Kalutara 034 2222286
Kalutara SGB No. 218, Galle Road , Kalutara South, Kalutara 034 2229804
Kaluwanchikudy Main Street, Kaluwanchikudy 065 2250012
Kamburupitiya School Lane, Kamburupitiya 041 2292213
Kandana No. 41/B-1/1, Negombo Road, Kandana 011 2232398
Kandapola No. 31, 33 , Main Street, Kandapola 052 2229636
Kandy No. 88, Dalada Veediya, Kandy 081 2223697
Kandy City Center Premises No. 19, Level. 01, Dalada Veediya, Kandy 081 2205110
Kankesanthurai No. 51, K.K.S Road, Jaffna 060 2212716
Kantale No. 91, Akrabodhi Mawatha, Kantale 026 2234361
Karadiyanaru No. 01, Badulla Road, Karadiyanaru 065 2241330
Karainagar Post Office View, Karainagar 021 2228278
Karaitivu No. 20, Main Street, Karaitivu 067 2225484
Karapitiya Galle No.161/A, Hirimbura Cross Road, Karapitiya, Galle 091 2227090
Karawanella No. 133/7, Avissawella Road, Karawanella 036 2268280
Karawita Palawela Road, Udakarawita 045 2279070
Katana No. 305/J/1 Mirigama Road, Mahahunupitiya 031 2228353
127
Kataragama No. 315, Tissamaharama Road, Kataragama 047 2235280
Kattankudy No. 40, Fauzi Mawatha, Kattankudy 065 2246613
Katubedda Campus Katubedda, Moratuwa 011 2650301
Katubedde No. 605, Galle Road, Katubedde 011 2625438
Katugastota No. 161/A, Madawala Road, Katugastota 081 2499398
Katukurunda No. 915 , Galle Road , Katukurunda, Kaluthara South 034 2221364
Katunayake Export Processing Road. Katunayake 011 2252523
Katunayake IPZ No. 436, Baseline Road, Averiwatta 011 2259583
Katupotha Rambawewa Road, Katupotha 037 2247471
Katuwana Urubokka Road, Katuwana 047 3621005
Kayts Velanai, Kayts 021 2225274
Kebithigollawa Padaviya Road, Kebithigollewa 025 2298680
Kegalle City No. 681/5, Main Street, Kegalle 035 2222550
Kegalle SGB No. 110, Colombo Road, Kegalle 035 2230600
Kekanadura Sarath Building, Kekanadura Junction, Kekanadura 041 2265061
Kekirawa No. 03, Habarana Road, Kekirawa 025 2264280
Keppetipola No. 18, Haputale Road, Keppetipola 057 2280043
Kesbewa No. 229 ,D ,Bandaragama Rd, Kesbewa 011 2602517
Keselwatte No. 29, Galle Road , Keselwatte, Panadura 038 2298303
Kilinochchi No. 23, Kandy Road, Kilinochchi 024 3248004
Kinniya No. 27, Lathef Vidhan Road, Kinniya 026 2236270
Kiribathgoda No. 201, Kandy Road, Kiribathgoda 011 2911304
Kirimetiyana No. 60, Negombo Road, Kirimatiyana, Lunuwila 031 2249960
Kirindiwela No. 21, Radawana Road, Kirindiwela 033 2267280
Kirulapone No. 88, High Level Road, Kirulapone 011 2513874
Kithulgala No. 81, Hatton Road , Kithulgala 036 2287747
Kobeigane Main Street, Kobeigane 037 2293101
Kochchikade No. 23, Chilaw Road , Kochchikade 031 2277353
Kodikamam Kandy Rd, Jaffna 021 3737070
Koggala Habaraduwa, Koggala 091 2283380
Kokkaddicholai Main Street, Ward No. 10, Kokkaddicholai 065 2227916
Kokuvil K.K.S Road , Kokuvil 021 3737765
Kollupitiya 2nd No. 409, Galle Road, Kollupitiya 011 2574581
Kollupitiya SGB No. 28, St. Michaels Road, Kollupitiya 011 4795036
128
Kolonna Hospital Junction, Kolonna 045 2260280
Kolonnawa No. 430/A, IDH Road, Kolonnawa 011 2572265
Kopay Manipay Road, Kopay 021 2230084
Koslanda No.15, Wellawaya Road, Koslanda 057 2257780
Kotagala No. 184 -186, Wooten Bazaar, Kotagala 051 2244107
Kotahena No. 182, George R De Silva Mawatha, Kotahena 011 2448632
Kotiyakumbura No. 110, Kegalle Road, Kotiyakumbura 035 2289240
Kottawa No. 103, High Level Road, Kottawa 011 2783313
Kudawella No. 116 /B, East Kudawella,Nakulugamuwa 041 2257514
Kuliyapitiya No. 70, Madampe Road, Kuliyapitiya 037 2281280
Kumbukgete Bhagya Traders Building, Kumbukgate 037 2264680
Kurunegala Commercial Complex, Kuliyapitiya 037 2233880
Kuruwita No. 60, Ratnapura Road, Kuruwita 045 2262581
Lake House D. R. Wijewardena Mawatha, Colombo 011 5363723
Lake View No. 142, Sir.James Peiris Mawatha, Colombo 011 5359693
Lunugala No. 149, Main Street, Lunugala 055 2263980
Lunugamvehera No. 07, New Town, Lunugamvehera 060 2621007
Lunuwatta Padmasiri Building, Udapussellawa Road, Lunuwatta 057 2232742
Madampe No. 10, Station Road, Madampe 032 2247680
Madatugama Kekirawa / Dambulla Road, Madatugama 025 2264283
Madawala No. 35/A2, Wattegama Road,Madawala 081 2476214
Madurankuliya No. 66, Colombo Road, Madurankuliya 032 2268003
Maha Edanda Sanasa Mandiriya, Maha Edanda, Karandeniya 060 2932627
Maharagama SGB No. 88, High Level Road, Maharagama 011 2746146
Mahiyangana No. 07, New Town, Badulla Road, Mahiyangana 055 2258195
Maho No. 145, Nikaweratiya Road, Maho 037 2275280
Main Street, Colombo No. 94, Main Street, Colombo 11 011 2447198
Makandura Samarasinghe Building, Makandura, Kamburupitiya 041 2268785
Makandura, Pannala Bandaranayake Mawatha, Makandura, Pannala 031 2298303
Makola No. 177/1, Makola South, Makola 011 2964401
Malabe No. 410/1, Athurugiriya Road, Malabe 011 2760753
Mallawi Main street ,Mallawi 024 3248038
Mamanagam No. 450, Bar Road, Batticaloa 065 2227973
Manipay No. 174, Jaffna Road, Manipay 021 2255188
129
Mankulam A-9 Road, Mankulam Junction, Mankulam 024 3248037
Mannar No. 52, Pallimunai Road, Grand Bazaar, Mannar 023 2232337
Mannar Kachcheri Kachcheri Building, Mannar, Wanni 023 2232234
Maradana No. 94, S Mahinda Himi Mawatha, Colombo 10 011 2689403
Marawila No. 27/1, Chilaw Road, Marawila 032 2252675
Maruthamunai Main Street, Periyanillawanai, Maruthamunai 067 2220503
Maskeliya No. 66, Upcot Road, Maskeliya. 052 2277280
Matale No. 5/2 , Trincomalee Street, Matale 066 2222262
Matara City No. 58, New Tangalle Road, Matara 041 2223920
Matara SGB No. 11, Kumaratunga Mawatha, Matara 041 2229280
Matugama No. 72, Agalawatta Road, Matugama 034 2243590
Mawanella No. 43, Main Street, Mawanella 035 2247915
Mawathagama No. 58/108, Kurunegala Rd, Mawathagama 037 2299259
Medagama Moneragala Road, Medagama 055 2265580
Medawachchiya No. 36 , Jaffna Road, Medawachchiya 025 2245683
Medirigiriya School Junction, Medirigiriya 027 2248337
Meegahakivula Ratnayake Complex, Meegahakivula 055 2245707
Meegallewa Meegallewa 060 2855054
Meegoda Economic Dev. Centre, No. 35 Padukka Rd. Meegoda 011 2831589
Meepilimana No. 67/ 68 / A, Meepilimana, Nuwara Eliya 052 2234410
Melsiripura No. 254, Dambulla Road, Melsiripura 037 2250165
Menikhinna No. 19, Teldeniya Road , Menikhinna 081 2376911
Metropolitan York Street, Colombo 01 011 2329419
Middeniya Panamure Road, Middeniya 047 2247280
Mihintale Trincomalee Road, Mihintale 025 2266503
Milagiriya SGB No. 248, Galle Road, Milagiriya 011 2504627
Minneriya Habarana Road, Minneriya 027 2245333
Minuwangoda No. 66, Divulapitiya Road, Minuwangoda. 011 2295214
Mirigama No. 12, Amaratunga Mawatha, Mirigama 033 2275975
Monaragala No. 401, Wellawaya Road, Monaragala 055 2276180
Monaragala Town No. 94/2, Kumaradola Road, Monaragala 055 2277270
Moratumulla No. 331, De Soyza Road, Moratumulla Moratuwa 011 2652178
Moratuwa No. 707, Galle Road, Moratuwa 011 2646165
Morawaka Nilwala Court, Pansala Godella Watta, Morawaka 041 2282700
130
Morawewa Pradeshiya Sabha Building, Morawewa 026 2225825
Mount Lavinia No. 286, Galle Road, Mount Lavinia 011 2721060
Mulaitivu Paranthan Road, Mulaitivu 021 2290002
Mulliyawali Ward No. 03, Mullativu-Mankulam Road, Mulliyawalai 024 3245730
Murunkan Chilawatura Road, Murunkan 023 2250935
Muttur No. 38, Batticaloa Road, Muttur 026 2238327
Nainativu Main Street, Nainativu 021 3202107
Naiwala Divulapitiya Road, Naiwala 033 2297720
Nanatan Uyilankulam Road, Moddakkadai, Nantan 023 3233515
Narahenpita No. 540, Thimbirigasyaya Road, Narahenpita 011 2368514
Narammala No. 139, Negombo Road, Narammala 037 2248771
Nattandiya Kuliyapitiya Road, Nattandiya 032 2254280
Naula No. 85, Matale Road, Naula 066 2246280
Nawalapitiya No. 06, Gampola Road, Nawalapitiya 054 2222233
Negombo City No. 111, Main Street, Negombo 031 2231297
Negombo SGB No. 118, Rajapakse Broadway, Negombo 031 2224711
Nelliady Thikkam Road, Karaveddy, Nelliady 021 2263260
Neluwa Kadihingala Road, Neluwa 091 3783014
Nikaweratiya Puttalam Road, Nikaweratiya 037 2260280
Nilaveli Ward No. 02, Main Street, Nilaveli 065 2232290
Nintavur No. 75, Main Street, Nintavur 067 2250039
Nittambuwa Market Complex, Nittambuwa 033 2287280
Nivitigala No. 72, Kalawana Road, Nivitigala 045 2279280
Nochchiyagama Main Street, Nochchiyagama 025 2257880
Norochcholei Kalpitiya Road, Norochcholei 032 2268555
Nugegoda SGB No. 174, High Level Road, Nugegoda 011 2821287
Nuwara Eliya No. 43, Lawson Street, Nuwara Eliya 052 2224047
Oddamavadi Main Street, Mawadichchenai, Oddamavadi 065 2258111
Okkampitiya Weeragashandiya, Okkampitiya 055 2273395
Padaviya Bandaranayake Mawatha, Padaviya 025 2253011
Padiyapelella No. 35, 35 1/1, Ragala Road, Padiyapelella 052 2287035
Padiyatalawa Main Street, Padiyatalawa 063 2246003
Padukka No. 45, Hanwella Road, Padukka 011 2859112
Palai A 9 Road, Pallai 021 3202125
131
Palapathwala No. 409, Palapathwala 066 2225505
Palaviya Deshani Motors Building, Colombo Road, Palaviya 032 2269210
Pallekele BOI Kandy Industrial Park, Pallekele 081 5672445
Pallepola No. 19, 19/1, Akuramboda Road, Pallepola 066 2247272
Pambahinna Sabaragamuwa University, Pambahinna 045 2280093
Panadura City No. 21, Jayatillake Mawatha, Panadura 038 2243324
Panadura SGB No. 21, Susantha Mawatha, Panadura 038 2243323
Pannala Public Ground Road, Pannala 037 2246080
Paragahadeniya Kandy Road, Paragahadeniya 037 2296085
Parliament Sri Lanka Parliament, Sri Jayawardanapura 011 2777309
Passara No. 382, Main Street, Passara 055 2288280
Pelawatta No. 18 / A, Parliament Road, Pelawatta 011 2785550
Peliyagoda SGB No. 42, Negombo Road, Peliyagoda 011 2945078
Pelmadulla No. 57, Main Street, Pelmadulla 045 2274380
Pemaduwa Mannar Road, Pemaduwa 025 2223307
Peradeniya No. 115/7, Sirimavo Bandaranaike Mw, Peradeniya 081 4475283
Permit Office Sri Lanka Port Authority 011 2483542
Pesali Church Road, Pesali 060 2233511
Pettah No. 212/63, Gas Works Street, Pettah 011 2393544
Pilimatalawa No. 26/2, Colombo Road, Pilimatalawa 081 5740197
Piliyandala No. 58, Moratuwa Road, Piliyandala 011 2614165
Pitabeddara Deniyaya Road, Pitabeddara 041 2281081
Pitakotte No. 130C , Pagoda Road, Pitakotte 011 2820311
Pitigala No. 39, North Pitigala Road, Pitigala 091 2291205
Point Pedro No. 155/10, Main Street, Point Pedro 021 2263570
Polgahawela No. 135, Dutugamunu Junction, Kegalle Rd, Polgahawela 037 2243280
Polonnaruwa No. 286, 286/1, New Town, Polonnaruwa 027 2223009
Polpitigama Madagalla Road, Polpithigama 037 2273103
Polwatta No. 10, Polwaga Janapadaya ,Polwatta 063 2242128
Poojapitiya No. 15. Madawala Road , Poojapitiya 081 2301718
Poovarasakulam Mannar Road ,Poovarasakulam, Vavuniya 024 3248002
Pothuhera No. 96, Colombo Road, Pothuhera 037 2273103
Pottuvil Main Street, Pottuvil 063 2248021
Pugoda No. 40/1, 43, Kospitiyana, Pugoda 011 2404821
132
Pulmudai Main Road, Ward No. 03, Pulmudai 026 2256200
Pundaluoya Ihala Dalada Veediya, Pundaluoya 051 2233205
Pussellawa No. 437/439, Nuwara Eliya Road, Pussellawa 081 2478664
Puthukulam Sasthri Kolankulam, Vavuniya 024 3248034
Puttalam No. 53, Kurunegala Road, Puttalam 032 2265209
Radolugama No. 275, Natiuonal Housing Scheme , Raddolugama 011 2289977
Ragala No. 1/19, Ragala, Halgranoya 052 2265660
Ragama No. 35/26, 36/26 , Kadawatha Road, Ragama 011 2960291
Rajagiriya SGB No. 608/1, Nawala Road, Rajagiriya 011 5368641
Rajanganaya 5th Mile Post, Rajanganaya 025 2276558
Rakwana No. 51, Main Street, Rakwana 045 2246280
Rambewa Jaffna Road, Rambewa 025 2066555
Rambukkana No. 8/A, Diyasunnatha Mawatha, Rambukkana 035 2265280
Ranna No. 165/1, Tissa Road, Ranna 047 2227280
Rathgama Mangala Food City Building , Galle Road, Rathgama 091 2267791
Ratmalana No. 452, Galle Road, Ratmalana 011 2719735
Ratnapura SGB No. 06, Dharmapala Mawatha, Ratnapura 045 2222100
Rattota Matale Road, Rattota 066 2255280
Ridigama Kurunegala Road, Ridigama 037 2252080
Rikillagaskada No. 3, Dimbulkumbura Road, Rikillagaskada 081 2365314
Ruhunu Campus Ruhunu Campus, Medawatta, Matara 041 2232880
Ruwanwella Public Trade Complex, Ruwanwella 036 2268005
Sainthamaruthu No. 183/1, Main street, Sainthamaruthu 09 067 2220478
Sammanthurai No. 49/1 C , Amparai Road, Sammanthurai 067 2260054
Seeduwa No. 429,429 1/1, Negombo Road, Seeduwa 011 2259590
Seethawakapura BOI Sri Lanka Office Complex, Avissawella 036 2232656
Serunuwara Agrarian service Building, Serunuwara 026 2251010
Sethsiripaya Setsiripaya Complex, Battaramulla 011 2863637
Sevanapitiya No. 63 , Sevanapitiya 060 2277263
Sewagama Nandana Building, Sewagama 027 2222585
Sigiriya No. 01, Air Port Road, Kimbissa, Sigiriya. 066 2286270
Siyambalanduwa Monaragala Road, Siyambalanduwa. 055 3555360
SME Centre Monaragala Motors Building,Pottuvil Road, Monaragala 055 2277352
Sooriyawewa No. 27/1, Main Street, Sooriyawewa 047 2288280
133
Talaimannar Pier Talaimannar Pier, Talaimannar 023 2281085
Talatuoya No. 02, Kandy Road, Talatuoya 081 2404334
Talawakelle No. 23,25,29, Hatton Road, Talawakelle 052 2258280
Tangalle No. 91/1, 91/2, Tissa Road, Tangalle 047 2240280
Taprobane No. 10, York Street 011 2422267
Tawalama No. 07, Egiliyagedera Watta, Tawalama 091 3783030
Teldeniya No. 17/2, Circle Rd, Karaliyadda, Teldeniya 081 2376820
Thalawa Anuradhapura Road, Talawa 025 2275090
Thalawathugoda No. 215/2 , Pannipitiya Rd , Thalawathugoda 011 2775027
Thalgaswala Elpitiya - Mapalagama Road, Thalgaswala 091 2296480
Thambiluvil Main Street , Thambiluvil 02 067 2265309
Thambuttegama Rajanganaya Road, Thambuttegama 025 2276280
Thanamalwila No. 06, Tissa Road, Thanamalwila 047 2234080
Thimbirigasyaya Sambuddha Jayanthi Mandiriya,Colombo 05 011 2590602
Thirunelveli No. 531, Palaly Road, Thirunelveli 021 2223948
Thoppur Main Road, Thoppur 026 2240989
Tirappane Colombo / Anuradhapura Road, Tirappane 025 2050115
Tissamaharama No. 70, Main Street, Tissamaharama 047 2237280
Toduwawa Church Rd. Thoduwawa 032 2256330
Trincomalee No. 24, Inner Harbour Road, Trincomalee 026 2223084
Udadumbara No. 44, 46, Mahiyangana Road, Udadumbara 081 2402317
Udappuwa No. 47, Main Street, Udappuwa 032 2258675
Udawalawa No. 24/4, Udawalawa Junction, Kolambageara 047 2232180
Udugama H. A. L. A. Building, Watte Kade, Udugama 091 2285015
Uhana Jayanthi Building, Kandy Road, Uhana 063 2223529
Union Place SGB No. 278, Access Tower, Union Place, Colombo 02 011 2314757
Uppuveli Agrarian Service Centre, Love Lane, Uppuveli 026 2226227
Urubokka Main Street, Urubokka 041 2272280
Uva Paranagama Lunuatugama,Walahamulla, Uva Paranagama 057 3577000
Vakarai Trincomalee Road, Kandalady, Vakarai 065 2258181
Valachchenai Main Street, Valachchenai 065 2257708
Valvettiturai No. D, Yale Road, Valvettiturai 021 2264883
Vavuniya No. 75, Station Road, Vavuniya 024 2222141
Vellavely No. 100/B, Main Street, Vellavely 065 2251113
134
Veyangoda No. 203/A, Negombo Road, Veyangoda 033 2287279
Vishaka No. 133 /C, Vajira Road, Colombo 04 011 2556226
Wadduwa No. 557 / A, Galle Road, Wadduwa 038 2232538
Waikkal Thopputhota, Waikkal 031 2277280
Walapana Ratnayake Building, Walapana 052 2279180
Walasmulla No. 70, Beliatta Road, Walasmulla 047 2245280
Warakapola No. 89/A, Main Street, Warakapola 035 2267258
Warapitiya Sithamagalla Road, Rammala, Warapitiya 047 3623303
Wariyapola No. 01, Chilaw Road, Wariyapola 037 2267348
Wattala No. 520 , Negombo Road, Wattala 011 5368394
Wattegama No. 110 , Kandy Road , Wattegama 081 2475838
Wayamba Wayamba University, Kuliyapitiya 037 2284480
Weeraketiya Beliatta Road, Weeraketiya 047 2246280
Weerapokuna Bowatta, Weerapokuna Road, Weerapokuna 032 3297720
Weli Oya Gunarathna Building, Weli Oya, Balangoda 060 2603304
Weligama No. 239, Main Street, Weligama 041 2250280
Weligepola No. 299/2, Weligepola 045 2227180
Welimada No. 12,12/A, Hemapala Munidasa Mawatha, Welimada 057 2245984
Welisara No. 540/2, Negombo Road, Welisara 011 2958485
Weliveriya No. 342 New Kandy Road , Weliveriya 033 2255444
Wellawa Sovis Building, Hiripitiya Road, Wellawa 037 2235499
Wellawaththa SGB No. 149 / 2, Galle Road, Wellawaththa 011 2588941
Wellawaya Tissamaharama Road, Wellawaya 055 2274880
Welpalla Agriculture Service Centre, Welpalla 031 5677766
Wennappuwa No. 197, Chilaw Road, Wennappuwa 031 2255280
Wijerama Junction No. 705 ,High Level Road , Gangodawila ,Nugegoda 011 2803553
Wilgamuwa No. 80/2./1, Hettipola New Town, Wilgamuwa 066 2250002
Yakkala No. 46, Kandy Rd, Yakkala 033 2233591
Yakkalamulla Yakkalamulla Junction, Yakkalamulla 091 2286080
Yatawatta Yelakkare Junction, Yatawatta 066 2221084
Yatiyantota No. 93, Ginigathhena Road, Yatiyantota 036 2271280
Annexure 05
Custodian Banks
137
Bank of Ceylon Banque Indosuez
Head Office C/O Hatton National Bank PLC
11th Floor Cinnamon Garden Branch
No. 04, Bank of Ceylon Mawatha No. 251, Dharmapala Mawatha
Tel: 011 2317777, 011 2448348, Tel: 011 2686537, 011 2689176
011 2338742-55
Citi Bank, N A Commercial Bank of Ceylon PLC

No. 65 C, Dharmapala Mawatha Commercial House
P.O. Box 888 No. 21, Bristol Street
Colombo 07 P.O. Box 853
Tel: 011 2447316-8, 011 2447318, Colombo 01
011 2449061, 011 2328526, 011 4794700 Tel: 011 2445010-15, 011 238193-5
Deutsche Bank AG Hatton National Bank PLC

P.O. Box 314 HNB Towers
No. 86, Galle Road No.479, T.B. Jayah Mawatha
Tel: 011 2447062, 011 2438057 Tel: 011 2664664
The Hong Kong and Shanghai Peoples Bank

Banking Corporation Limited Head Office, 5th Floor
No. 24, Sir Baron Jayathilake Mawatha Sir Chittampalam A Gardiner Mawatha
Tel: 011 2325435, 011 2446591, Tel: 011 2781481, 011 237841-9,
011 2446303, 011 2346422 011 2446316-15, 011 2430561
Standard Chartered Bank Sampath Bank PLC

No. 37, York Street No. 110, Sir James Peiris Mawatha
P. O. Box 112 Colombo 02
Colombo 01 Tel: 011 5331441
Tel: 011 4794400, 011 2480000
State Bank of India Seylan Bank PLC

No. 16, Sir Baron Jayathilake Mawatha Level 8, Ceylinco Seylan Towers
Colombo 01 No. 90, Galle Road
Tel: 011 2326133-5, 011 2439405-6, Colombo 03
011 2447166, 011 2472097 Tel: 011 2456789, 011 4701812,
011 4701819
Union Bank of Colombo PLC

No. 15A, Alfred Place
Colombo 03
Tel : 011 237 0870

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Prospectus

24,000,000 Ordinary Non-Voting Shares @ LKR 3 per share

To be listed on the Diri Savi Board of the Colombo Stock Exchange

Managers and Registrars to the Issue

Corporate Advisory & Capital Markets Division

The delivery of this Prospectus shall not under any circumstance

The Colombo Stock Exchange (CSE) has taken reasonable care to

1.0 INFORMATION CONCERNING THE ISSUE .................................... 09

2.0 PROCEDURE FOR APPLICATION .................................................. 15

3.0 THE COMPANY ................................................................................. 25

5.0 HUMAN RESOURCE ........................................................................ 49

6.0 CORPORATE GOVERNANCE PRACTICES .................................... 55

7.0 THE DAIRY SECTOR ........................................................................ 57

8.0 DECLARATIONS ............................................................................... 61

Registered Address & Contacts Bibulawela, Karagoda Uyangoda

Company Registration Number PB 3006

Date, Place and Authority of Incorporated as a Limited Company under the

Directors Mr. Lal Keerthi Amarasiri Gunawardhana

Company Secretary Managers & Secretaries (Pvt) Ltd

Reporting Ernst & Young

Bankers Commercial Bank of Ceylon PLC

DFCC Vardhana Bank PLC

Union Bank of Colombo PLC

THE ISSUE AT A GLANCE

Applications in excess of the minimum subscription

Applicants have the option of applying for either

The minimum subscription of 1000 shares will be

AMOUNT TO BE RAISED LKR 228,000,000 from the issue of Ordinary Voting

CLOSING DATE 24 July 2014 or such other earlier date in terms of

BASIS OF ALLOTMENT The basis of allotment is detailed in Section 1.5 of

Tel: 0094 11 4711711 Fax: 0094 11 4711741

BANKERS TO THE ISSUE Bank of Ceylon

BOC Bank of Ceylon

Company/Issuer /LLMP Lucky Lanka Milk Processing Company Limited

CAGR Cumulative Annual Growth Rate

CBSL Central Bank of Sri Lanka

CDS Central Depository Systems (Pvt) Ltd

CSE Colombo Stock Exchange

GOSL Government of the Democratic Socialist Republic of

Issue The Issue of Ordinary Voting Shares and Ordinary Non-

LCB Licensed Commercial Bank

LKR Sri Lankan Rupees

LSB Licensed Specialised Bank

NIC National Identity Card

Offer Invitation for the subscription of up to 38,000,000 Ordinary

POA Power of Attorney

Register The Register of the Shareholders to be kept by the Company

Registered Address The address provided by the Shareholders to the CDS

RTGS Real Time Gross Settlements

SEC Securities & Exchange Commission of Sri Lanka

SIA Securities Investment Account

SLIPS Sri Lanka Inter Bank Payment System

SME Small and Medium Enterprise

Unit holder An individual who has made an investment in units not

1.0 INFORMATION CONCERNING

1.2 Objectives of the Issue

To provide an opportunity to the public to participate in the equity of the Company

Settlement of long term liabilities

Improvement of the existing production plant