Annual Report 2009/2010

vision
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,1VW\OH%UDQGZLWKJOREDOUHDFK

mission
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2 IURPWKHERRWRIKHUFDr | 6 ILQDQFLDOKLJKOLJKWV| 8 FKDLUPDQ¶VUHYLHZ | 10 GLVWLQFWO\GLIIHUHQt&(2¶VOHWWHU_

12 ERDUGRIGLUHFWRUV | 15 a journey of a 128,000 sq. ft | 16 ÀQGXs | 18 nXPEHUVWKDWGHÀQe a 20-year journey |
20 an oasis for your senses | 22 tKHEUDQG2GHl | 24 aPDQVLRQRIVW\Oe | 34 DQGWKDWH[WUDWRXFK | 36 ZZZRGHOOk |
37 just a smile… | 38 ePSOR\HHV‡HQYLURQPHQW‡FRPPXQLW\DW2GHOZHFDUH.

43 ILQDQFLDOLQIRUPDWLRn | 44 DQQXDOUHSRUWRIWKHGLUHFWRUVRQWKHVWDWHRIDIIDLUVRIRGHOOLPLWHd | 47 LQGHSHQGHQWDXGLWRUV¶

report | 48 EDODQFHVKHHt | 49 LQFRPHVWDWHPHQt | 50 FDVKIORZVWDWHPHQW | 51 VWDWHPHQWRIFKDQJHVLQHTXLWy | 52 QRWHVWR
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 at Odel, we believe
that we’re one-of-a-kind
At Odel we take our uniqueness to
another level - by creating a space
for action where we conceptualise,
implement and succeed in our plans.
This also means that we love challenging
boundaries. It’s where we put our
imagination to the test.

We offer people an array of diverse

products and services that are INstyle,
distinctive and constantly evolving, for
the better. By incorporating the concept
of a balanced mind, body & soul we
create and give people a multi-sensorial
experience that is matchless in every way.

Yet, we also offer more than that. Our

distinctiveness lies in the ability to always
give all our stakeholders a space; to
aspire, live, make and create…a lifestyle.
And we do just that. Our future plans for
expansion are visionary and strategic,
while keeping in mind the power of a
business to do good.

This is why we believe that

we’re one-of-a-kind.
2 | Annual Report 2009/2010
1989. IURPWKHERRWRIKHUFDU
7KHÀUVWVWRUHRIVTIW
Quite unostentatious in comparison to
what it is today, but carpeted. And it had
wheels!
Long before the iconic 33,000 square
IHHWµPDQVLRQRIVW\OH¶RQ$OH[DQGUD
Place, Colombo, there was the boot of
a blue station-wagon. Brimming with a
VWRFNRISUrWDSRUWHU6WR;/VL]HGH[SRUW
surplus clothing, it was driven by a
¶VRPHWKLQJ¶\HDUROGPRGHOZKRMXVW
QHHGHGVRPHH[WUDFDVK
The clientele were friends and family of
WKHVROHSURSULHWRUăDNQRZQIDFHLQWKH
local fashion industry, and armed with a
degree in Biology from the USA. They
trusted her eye for style.
It was sometime in 1989.
The year in which the World Wide
Web was invented and Giorgio Armani
opened his very first Emporio Armani in
the US, on a sprawling 10,000 square
feet on Fifth Avenue, New York. A year,
where nothing momentous happened in
the fashion retail industry, in Sri Lanka.
But dreams were being dreamt. Of
DµUHDO¶VWRUH6RPHWKLQJZLWKVW\OLVK
distinctive clothing and maybe a little bit
more. Something iconic. There were also
the dreams of a father who registered a
business in the name of his only daughter
ăFRLQLQJWRJHWKHUWKHOHWWHUVRIKHU
name. The birth of Odel.
Yes. There were dreams. But it really did
start from the boot of a car.
Annual Report 2009/2010 | 3
aspire
WREHDVXQLTXH
DV\RXZDQWWREH


live
\RXUGUHDPVDVLI
LWZHUHUHDOLW\


make
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VHWV\RXDSDUW


create
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XQIRUJHWWDEOH

EHFDXVH\RX¶UHRQHRIDNLQG
6 | Annual Report 2009/2010

ILQDQFLDOKLJKOLJKWV
*5283

)RUWKH<HDU(QGHGVW0DUFK  

(DUQLQJKLJKOLJKWV
Group revenue Rs.Millions 1,950.71 2,416.78
Gross profit Rs.Millions 636.81 842.22
3URILWEHIRUHWD[ 5V0LOOLRQV   211.31
3URILWDIWHUWD[ 5V0LOOLRQV   140.69
Profit attributable to Equity Holders of Parent Rs.Millions 34.31 141.80
Total Dividends Rs.Millions 8.10 148.33

%DODQFHVKHHWKLJKOLJKWV
Total Assets Rs.Millions 1,508.96 2,348.56
Total Equity/Net Assets Rs.Millions 627.48 1,196.40
Total Liabilities Rs.Millions 881.48 1,152.16

)LQDQFLDO5DWLRV
Diluted earning per share Rs. 0.27 1.11
Average Return on equity (ROE) % 5.20 15.40
Gross margin % 32.6 34.85
Net Margin % 1.65 5.82
Interest Cover Number of times 1.70 3.90
Net Debt to Equity 75:100 45:100
Acid Test (Liquid Assets/ Current Liabilities) Number of times 0.20 0.10
Inventory days Number of Days 114 123

<R<*URZWK
Revenue % 23.9
Gross Profit % 32.3
3URILWEHIRUH,QWHUHVWDQG7D[    82.4
3URILWEHIRUHWD[    233.5
Net Profit % 337.1
Net Asset % 91.0
Total Assets % 56.0

Group revenue Gross profit Net assets

2009/10 2,416.78 mn 2009/10 842.22 mn -5.1% 31/03/2010 1,196.40 mn 3%

23.90% 32.3% 91%

2008/09 1,950.71 mn 2008/09 636.81 mn 31/03/2009 627.48 mn

Group revenue Revenue Growth Gross profit Gross Profit growth Total Equity/Net Assets Net Assets Growth
 Annual Report 2009/2010 | 7

2,416.78mn 7XUQRYHU

842.22mn*URVVSURILW

211.31mn
3URILWEHIRUHWD[

1,196.40mn
Profit before tax

2009/10 211.31 mn -53%

233.5%

2008/09 63.39 mn

Profit Before Tax Profit Before Tax Growth 1HWDVVHWV

8 | Annual Report 2009/2010

FKDLUPDQ’VUHYLHZ

ODEL kicked off its

2010 expansion
plan with an
LPSRVLQJQHZVWRUH
DW3DQDGXUD
 Annual Report 2009/2010 | 9

Dear Stakeholder, 6DQMD\.XODWXQJDDQG3DXO7RSSLQJWR

,WLVFRPPRQSODFHDQGH[SHFWHGWKDW the board of the company. I am confident
WKH&KDLUPDQ¶VUHYLHZUHIOHFWVDQG WKDWZLWKWKHLUYDULHGH[SHULHQFHWKH\ZLOO
comments on the macroeconomic, socio add significant value to the company.
politcal and specific financial factors
that impacted the company in the year I would also like to thank Otara and the
under review. I intend to deviate from management team for their significant
which was coined by my father using
this. Sri Lanka is on the cusp of a growth contribution during the last 20 years
2WDUD¶VQDPHV7RGD\\HDUVODWHU
momentum that has never been seen which has made Odel what it is today.
the company has grown beyond casual
before. And I believe so is Odel. Hence I would also like to wish Ruchi the very
family inputs to a professionally run
history is irrelevant. However, for the best as he takes over the mantle of
operation with the governance structures
sake of posterity I will briefly touch on the Chairman.
required to take the company public.
2GHOMRXUQH\IURPLWVLQFHSWLRQ
Otara remains the hard charging CEO
with the driving force and vision that has
Otara who had returned from the USA
made the Odel brand synonymous with
after a degree in Biology and a stint in
fashion and retailing in Sri Lanka.
WKHIDVKLRQLQGXVWU\LQWKHODWH¶V $MLW*XQHZDUGHQH
did not want to work in the formal private Chairman - Odel
$V2GHOPRYHVLQWRLWVQH[WSKDVH,DP
sector as has been the family tradition.
confident that it will continue to set the
Instead, in what was the emerging new
benchmark in retailing and continue its
economic landscape with the thrust on
momentum in the new emerging post war
H[SRUWVVKHXVHGKHUH\HIRUIDVKLRQ
Sri Lanka.
DQGERXJKWH[FHVVJDUPHQWVIURPWKH
factories to resell to the mushrooming
I will be stepping down as Chairman of
UHWDLOVWRUHVLQ&RORPER7KLV³ERRWRIWKH
the company mainly as a result of my
FDU´EXVLQHVVFRQWLQXHGIRUDFRXSOHRI
other official obligations. I am confident
years until she felt that Colombo needed
that Odel will grow from strength to
a better quality store which she was
strength and continue to pleasantly
confident she could offer. And that was
surprise and please all its stakeholders in
the beginning of Odel. Borrowing the
the future.
Dickmans Road premises from our father
as the location and tapping into virtually
I would like to take this opportunity
all the family members for various
to welcome the newly appointed
inputs from finance, interior design,
independent directors Eardley Perera,
operations etc., and in fact the name
10 | Annual Report 2009/2010

GLVWLQFWO\GLIIHUHQW

-XVWDVZH¶UHDERXWWR
say µGRQH¶WRDEULOOLDQW
idea,someone on the
team comes up with
VRPHWKLQJEHWWHU

&(2·V/HWWHU
Odel did happen quite by accident. But
what followed in the subsequent decades
was, however, far from accidental.
Yes, we made a determined effort
at unlocking ways to indulge each
customer. And yes, creativity across the
world provided a muse for our eclectic
brand.
But mostly it was our own imagination
that inspired us.
The imagination of a team, who like
me, wake up each morning challenging
WKHLUERXQGDULHV([FLWHGDV,DPWREH
a part of Odel. That, I believe, is what
makes us distinctly different from the
rest. And it is their incredible energy,
Annual Report 2009/2010 | 11
combined with our understanding of
what our customer wants, that will
help me drive Odel into the world of
possibilities.
,WKDVFHUWDLQO\EHHQDMRXUQH\RIPDQ\
challenges. A prolonged war and 2XURZQH[FLWLQJEUDQGVăµ2WRQH¶
restrictive import duties compelled us to µ(PEDUN¶DQGµ%DFNVWDJH¶KDYHVWLUUHG
adapt, and keep our internal structures up interest overseas and these are
and pricing strategies constantly under opportunities that we will keep an eye
the microscope. A determined focus on on.
ethics and good governance helped us
survive some tough times. $QGEH\RQGWKDW«ZHOO\RXQHYHU
know.
7KLVµRSHQWRDGDSW¶DWWLWXGHLVSUREDEO\
why, in the very midst of the recent I need to innovate, everyday. And
JOREDOUHFHVVLRQ2GHOH[SDQGHG so does my team. Dreams and ideas
aggressively. In fact, we witnessed some XQUDYHOVRIDVWDW2GHO7KDW¶VZKDW
of our best years yet. makes us tick.
,WLVVXFKDQH[KLODUDWLQJWLPHWREH
in business. The end of the war in Sri
Lanka has coincided with an era where
Asia is simply forging ahead in global
G\QDPLFV*LYHQWKLVFRQWH[WLIVRPHRQH
were to ask about my plans for Odel, I
ZRXOGKDYHWRVD\ăWRH[SDQGLWVUHDFK
across many more cities in Sri Lanka over
WKHQH[WIHZPRQWKVZKLOHVWD\LQJWUXHWR
the international aura of the brand. And
maybe a new format of stores.
12 | Annual Report 2009/2010

ERDUGRIGLUHFWRUV


0V2WDUD'HO*XQHZDUGHQH
Executive Director / CEO
Otara, a 1986 biology graduate of
the Bowling Green State University,
Ohio, is a natural entrepreneur. With an
appreciation for fashion and a desire to
make a marked difference in whatever
she set out to do, she wasted no time in
applying her knowledge and skills in the
business world. In time she created a
successful brand by simply doing what
she loved.
2WDUD¶VILUVWHQWUHSUHQHXULDODWWHPSWDW
a business venture was selling hair care
products. She then ventured into selling
apparel. A chance request by an apparel
manufacturer to help him dispose of an
DVVRUWPHQWRIH[SRUWVXUSOXVJDUPHQWV
led her to set up shop in the boot of her
car. Her friends were her first regular
clientele and she consolidated this
early success by selling to other stores
in Colombo as well. Realising the
enormous potential in this segment, she
set up her first retail store in 1990 on
'LFNPDQ¶V5RDG2'(/DFRPELQDWLRQ
of her first name, Otara, with her
PLGGOHQDPH'HO,QFLGHQWDOO\µ2WDUD¶
PHDQVµUHLQFDUQDWLRQ¶LQ6DQVNULW:LWK
her original, energetic and confident
approach to business, amidst the
challenges faced due to the war, Otara
would go on to make her brand ODEL
a celebrated name and a retail success
story for Sri Lanka.
04 05 03
02 01

0U5XFKL*XQHZDUGHQH
Non-Executive Director
Mr. Gunewardene is the CEO of
67,1*&RQVXOWDQWV6UL/DQND¶VRQO\
fully integrated strategic marketing and
brand consulting firm. He counts over
WZRGHFDGHVRIPXOWLQDWLRQDOH[SHULHQFH
as the former Country Manager /
CEO of Coca-Cola Sri Lanka, Regional
0DUNHWLQJ0DQDJHUă6RXWK$VLDIRU
the Coca-Cola Company and Head of
&RQVXPHU0DUNHWLQJRI*OD[R6PLWK.OLQH
Sri Lanka. Prior to this, he was employed
by multinationals Reckitt Benckiser and
JWT in their Sri Lankan operations.
Mr. Gunewardene holds a Bachelor
of Science, Honors Degree in Applied
%LRORJ\IURPWKH8QLYHUVLW\RI%DWK8.

0U3DXO7RSSLQJ
Non-Executive Independent Director
Mr. Topping counts over two decades of
LQWHUQDWLRQDOH[SHULHQFHLQERWKIDVKLRQ
and travel retailing in the European,
American and Asian continents. Until
UHFHQWO\KHVHUYHGDV$OSKD¶V0DQDJLQJ
Director-Asia and President-Asia. Alpha
is a member of the Italian Autogrill
*URXSWKHZRUOG¶VOHDGLQJSURYLGHURI
food & beverage and retail services for
travellers. Prior to this, Mr.Topping held
the position of Group MD of the Retail
Division of Trusthouse Forte Airport
'LYLVLRQ8.+HZDVDOVRSUHYLRXVO\
HPSOR\HGDW8.FORWKLQJUHWDLOHUV%+6
and Hornes-Menswear for ten years.
Mr.Topping was voted Joint Travel
Retailer of 2005 and won the Cannes
Frontier award on two occasions.
Annual Report 2009/2010 | 13

0U6DQMD\.XODWXQJD
Non-Executive Independent Director
0U.XODWXQJDKROGV([HFXWLYH
Directorships within the Beira Group of
companies, a Group that is engaged
LQH[SRUWPDQXIDFWXULQJDQGLPSRUW
substitution. He is one of the co-
founders of Amba Research Lanka, an
internationally acclaimed and ranked
multinational knowledge process
outsourcing firm and serves as a Director
on its board since its incorporation.
Prior to his stints as an entrepreneur and
PDQDJHU0U.XODWXQJDIXQFWLRQHGDV
DQHTXLWLHVDQDO\VWIRU+RQJ.RQJEDVHG
Jardine Fleming Securities, starting in
Colombo and culminating as a Regional
5HDO(VWDWH$QDO\VWLQ+RQJ.RQJ+H
has a 1st Class Degree in Commerce
from the University of Poona, India and
an MBA from the University of Chicago,
%RRWK6FKRRORI%XVLQHVV0U.XODWXQJD
is also an associate member of the
Chartered Institute of Management
Accountants (ACMA) as well as a
Chartered Financial Analyst (CFA).

0U(DUGOH\3HUHUD
Non-Executive Independent Director
Mr. Perera is the Chairman of M&E
(Private) Limited, while also serving on
WKH'LUHFWRUDWHVRI.HHOOV)RRG3URGXFWV
PLC, Janashakthi Insurance PLC, STING
Consultants (Pvt) Ltd., and other private
companies. He also serves as a Member
on the Board of Study, Postgraduate
Institute of Management (PIM), University
of Sri Jayewardenepura. A Chartered
Marketer and senior member of The
Chartered Institute of Marketing, Mr.
3HUHUDKDVPDQ\\HDUVRIH[SHULHQFH
in general management and marketing
in trade and industry, and as a lecturer
on graduate and postgraduate level
programmes.
14 | Annual Report 2009/2010

journey (QJ

viaggio ,W

voyage )U
 Annual Report 2009/2010 | 15

DMRXUQH\RIDVTIW
2010 1999
ăDFFHVVRU\
shopping in a theatre-style dressing
-XVWWZR 7KH
URRPDPELDQFHăDQRWKHUQRYHOEUDQG
GHFDGHVDIWHURSHQLQJRXUYHU\ Millennium Dome opens to
launched by Odel.
ILUVWVWRUH SULYDWHYLHZLQJLQ/RQGRQăRQ
The 11th outlet in the Odel chain opens WKHHYHRIWKH0LOOHQQLXP
- a CR initiative to improve
in Panadura, followed by the 12th, at The flagship of Odel. Eclectic.
the well being of animals and create
Maharagama. Sophisticated. Recognised by shoppers
FRPPXQLWLHVIUHHRIµVWUHHW¶GRJVLV
across the globe. The lifestyle store of
launched. Embark branded merchandise
33,000 square feet opens its doors, at

2009
become an instant success at Odel.
$OH[DQGUD3ODFH&RORPER
3HDFH

2005
LQ6UL/DQNDDIWHU\HDUV
Embracing opportunities and entering
LQWRDQHZSKDVHRIH[SDQVLRQă2GHO
set up a Warehouse in Nugegoda. This
7KH
$LUEXV$PDNHVLWVPDLGHQ
1995 7KH86
space shuttle Atlantis, docks with
WHVWIOLJKW
was followed by a dramatic opening WKH5XVVLDQVSDFHVWDWLRQ0LU
2SHQ[WKHODVWFKDQFHIRU\RXU
event for its 6,000 sq. ft store in the IRUWKHILUVWWLPH
XOWLPDWHVKRSSLQJH[SHULHQFHLQ6UL
coastal suburb of Mount Lavinia and a The first branching-out of the Odel chain
/DQNDă2GHOPDNHVDQDSSHDUDQFH
3,000 sq. ft store in Moratuwa. RIVXSHUVWRUHVăWKHRXWOHWDW0DMHVWLF
at the departure/transit lounge of the
City opens.
Bandaranaike International Airport,
.DWXQD\DNH

ăDQ2GHO%UDQGSURYLGLQJ
personalised fitness training to the health
conscious is launched.
2004 7KH
1990 1HOVRQ
0DQGHODLVUHOHDVHGIURP
*RRJOH,32UDLVHV86%Q
SULVRQDIWHU\HDUV

2007
Odel Mind Body & Soul
6UL/DQND¶VPRVWLQQRYDWLYHIDVKLRQ
A new brand identity is unveiled.
7KH brand, Odel is born. And so is our very
, becomes the new logo and the first
HDUOLHVWVLJQVRIWKHLPSHQGLQJ first store at Dickmans Road.
VWHSLQWKHMRXUQH\RIPDNLQJ2GHODQ
JOREDOILQDQFLDOFULVLVEHJLQWR Now converted into a factory outlet,
international superstore.
VKRZLQWKH86KRXVLQJPDUNHW this 1,165 sq. ft. store gives you that
7KHILUVW\HDURIDJJUHVVLYHH[SDQVLRQ µPXVWKDYH¶LWHPZKLFK\RXWKRXJKWZDV
is marked by the 11,000 sq. ft. store out of stock but is still available, at an
RQ'XWXJHPXQX6WUHHW.RKXZHODDQGD unbelievably discounted prices.
4,000 sq. ft. store in Ja-ela.
16 | Annual Report 2009/2010

find us
walk into any one of
our 12 stores located
with your convenience
in mind, and
experience shopping
like you’ve never
imagined before.
 Annual Report 2009/2010 | 17

Flagship Store Crescat Panadura

$OH[DQGUD3ODFH L-19A, Crescat Boulevard 29A, Jayathilake Mawatha
Colombo 07 Colombo 03 Panadura
+94 112 682 712/3 +94 114 700 984 +94 384 285 008

Odel Factory Warehouse Warehouse Maharagama

Lester James Pieris Mawatha 286, Highlevel road 278, Highlevel Road
Colombo 05 Colombo 06 Maharagama
+94 112 590 435 +94 114 209 139 +94 114 641 180

Majestic City Mt. Lavinia Ja Ela

0DMHVWLF&LW\ 4, Hotel Road 165, Colombo Road
Galle Road Mount Lavinia Realty Plaza
Colombo 04 +94 114 640 490 Ja-Ela
+94 112 595 763 +94 114 619 102
Moratuwa
Kohuwela 89A, New Galle Road Bandaranaike International Airport
135, Dutugemunu Street Moratuwa Shop No 2-D Departure/Transit Lounge
.RKXZDOD +94 114 209 571 Bandaranaike International Airport
+94 114 542 756 .DWXQD\DNH
+94 114 830 634
18 | Annual Report 2009/2010

QXPEHUVWKDWGHÀQH
D\HDUMRXUQH\

91%
1HW$VVHWV*URZWKUHFRUGHG
LQ

Rs. 1,196 mn 21%

1HW$VVHWVDVDW0DUFK &XPXODWLYH1HW$VVHWVJURZWK
SHUDQQXP

337%
1HW3URILW*URZWKLQ
11.5%
&XPXODWLYHJURZWKLQUHYHQXH
7KHKLJKHVWSURILWJURZWK SHUDQQXPRYHUWKHODVW
UHFRUGHGIRUWKHSDVWVL[\HDUV \HDUV

4 stores in 6 months 2009/10 marks a

by April 2010, marks an remarkable turnaround in
extremely successful urban volatile profits.
expansion.
 Annual Report 2009/2010 | 19

our supply-chain
includes over
10 countries
500+ suppliers &
200+ factories
in Sri Lanka and across
the globe.

1,165 to128,000
6TIWLQ\HDUV

Focused buying and

Rs. 842.22mn
*URVV3URILW
strategic pricing - the key to
Gross Profit growth.

Total staff strength of 2 More stores will be

has now grown to 650 plus added to the chain of
direct employees shops during the current
financial year
20 | Annual Report 2009/2010

an oasis
senses
 Annual Report 2009/2010 | 21

for your

2GHOWRGD\
22 | Annual Report 2009/2010

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SULFHTXDOLW\DQGJRRGVHUYLFH
 Annual Report 2009/2010 | 23

Mind
Body
& Soul.
24 | Annual Report 2009/2010

DPDQVLRQRIVW\OH
IRUDEVROXWHO\HYHU\RQHRUIRU
WKDWVRPHRQHVSHFLDO

Chic . Extravagant .

Accessories – Belts ‡ Evening Handbags ‡ Headwear ‡ Purses ‡ Scarves

‡ Sunglasses ‡ Backstage – An Odel Brand – a wide range of fashion
accessories in a theatre dressing-room ambience ‡ Beauty – Bodywash ‡
Cosmetics ‡ Deodorants ‡ Eyes ‡ Gift Packs ‡ Lips ‡ Moisturisers ‡ Oils ‡
Casual wear ‡ Evening wear
Only for Ladies It doesn’t matter if
you’re 9 or 95, Odel gives the ‘girl’ in
you a million excuses to shop
Foot wear – Bedroom slippers ‡Sandals ‡Thongs ‡Lingerie ‡Otara Collection
‡An exclusive collection of jewellery that reflects Otara’s magical style ‡Sari
Bar –Sri Lanka’s first haute couture sari bar featuring designer labels from
India ‡Select Ladies wear –An avant-garde collection of prêt-a-porter pieces,
handpicked from fashion houses around the world ‡Sports wear ‡Swim wear
& Beach Accessories ‡Winter wear
 Annual Report 2009/2010 | 25

Simple . Eclectic That is Odel, today.

Accessories –$UWLILFLDOIORZHUV‡&DQGOH+ROGHUV‡&DQGOHV‡&XVKLRQV
‡)UDPHV‡+DQJHUV‡2UQDPHQWV‡Bathroom – Bath linen Bathrobes
‡%DWKURRPVWRUDJH‡Bedroom
Home ware & Gifts Bath & bed linen,
gels & soaps, cushions, candle holders,
table runners, saucers & cups….…
.where on earth would I fit it all in?
Dining Room –%DUZDUH‡%RZOV‡&XSV 6DXFHUV‡'LVKHV‡0XJV‡7DEOH
/LQHQ‡Kitchen ‡ Lush –%DOOLVWLFV‡%XEEOH%DU‡*LIWV‡0DVVDJH%DU‡
0RLVWXULVHU‡6KRZHU*HO‡6RDSV‡Natural health & Beauty – Body Splash
‡%RG\:DVK‡2LOV‡$FFHVVRULHV‡%DJV‡%HOWV‡%UDFHOHWV‡&XIIOLQNV‡
5LQJV‡6DURQJV‡6XQJODVVHV‡7LHV‡8PEUHOODV‡:DOOHWV‡%R\V7R\V‡
*DGJHWV‡0XJV‡6WDWLRQHU\‡=LSSR‡&DVXDOZHDU‡)RRWZHDU‡0HQV‡
*URRPLQJ‡%DWK %RG\‡+DLUFDUH‡6KDYLQJ‡6NLQFDUH
26 | Annual Report 2009/2010

DPDQVLRQRIVW\OH
IRUDEVROXWHO\HYHU\RQHRUIRU
WKDWVRPHRQHVSHFLDO&RQWG

Accessories – Bags ‡ Belts ‡ Bracelets ‡ Cufflinks ‡ Rings ‡ Sarongs ‡

Sunglasses ‡ Ties ‡8PEUHOODV‡ Wallets ‡ Boys Toys – Gadgets ‡ Mugs
Stationery ‡=LSSR‡ Casual wear ‡ Foot wear ‡ Mens Grooming – Bath & Body
‡ Hair care ‡ Shaving ‡ Skincare
Just for guys Off-the-beaten-track
gift ideas. Or a discreet shopping
experience where he can ‘get lost in his
world’
Sports wear – Accessories ‡ Foot wear ‡ Head wear ‡ Shorts ‡ Tops ‡
8QGHUZHDU‡ Winter wear – Gloves ‡ Hats ‡ Tops ‡ Work wear & Accessories ‡
Cufflinks ‡ Shirts ‡ Ties
 Annual Report 2009/2010 | 27

Chocolates ‡ Tea – Fruit ‡ Gift Boxes ‡ Gourmet Selection ‡ Green Teas ‡

Herbal Infusions ‡ Premium Ceylon ‡ Single Estate ‡ Watte Single ‡ Nuts &
Nibbles
Gourmet Food Something new,
something fresh. Just delicious!
Everyday
Odel Treats – From fried onions to Kitul Jaggery ‡ bottled and ready to use
Organic – Odel Organic range of teas ‡ nuts ‡ cinnamon & spices ‡ Sweets
28 | Annual Report 2009/2010

DPDQVLRQRIVW\OH
IRUDEVROXWHO\HYHU\RQHRUIRU
WKDWVRPHRQHVSHFLDO&RQWG

Accessories – Clocks ‡8PEUHOODV‡ Desk Lamps ‡ Chairs ‡ Baby wear ‡ Books

‡ Boys clothing & Accessories
For the kids Their tiny world of
imagination comes alive. Some left
speechless – some, want it all!
Foot wear ‡Girls clothing & Accessories ‡Toys & Games – Activity ‡ Baby And
Pre-School ‡Board Games ‡Card Games ‡Dolls ‡Jigsaws ‡Outdoor ‡Soft
Toys
 Annual Report 2009/2010 | 29

Bags & Luggage ‡Books –Art Design ‡Biography ‡Fiction ‡Food and Drink
‡History ‡Magazines ‡Mind Body ‡Natural History ‡ New Books ‡Philosophy
‡Politics ‡Popular Culture ‡Reference ‡Specialist Sports ‡Travel ‡DVDs ‡
Embark –An Odel Brand ‡Caps ‡Mugs ‡T-shirts and a whole lot more of
embark branded merchandise help to fund the pet CR project of Odel
Greeting Cards ‡ Music
Souvenirs & Leisure Making leisure
chic. And oh those souvenirs ….. do I
keep them or gift them?
Otone – An Odel Brand ‡A personalised fitness training concept and centre
opened at the Odel Alexandra Place complex ‡Six Runs –An Odel Brand of
affordable clothing and fun accessories ‡Souvenirs ‡Sports –Accessories ‡
Cricket Equipment ‡Health ‡Racket Sports ‡Swimming Equipment ‡Stationery
‡T-Shirts
30 | Annual Report 2009/2010
Annual Report 2009/2010 | 31
32 | Annual Report 2009/2010
Annual Report 2009/2010 | 33
34 | Annual Report 2009/2010
DQGWKDWH[WUDWRXFK
Our services - mainly at our
flagship store at Ward Place,
DQGWKRVHµH[WUDV¶ăQRWXVXDOO\
found at other fashion retail
outlets, make shopping at
Odel that much more special.
7KDWOLWWOHELWRIDQH[WUDWRXFK
MXVWVHWVXVDSDUW
‡ Foot massage & Nail Spa
‡)UHHWi Fi service
‡Boulevard
 /RFDWHGDWRXUVWRUHDW$OH[DQGUD
Place. From hot dogs to doughnuts, it
also provides sandwiches, Italian food,
MXLFHDQGFRIIHH
Stand-alone food outlets are also
available at some stores.
‡A supervised kids play area
‡Perfumes
‡Concierge
Leave it all with our friendly concierge -
to help you shop without baggage
‡Drivers seating area
‡Wrist watches
‡Alteration of garments purchased from
us, while you wait
‡Wine Bar
‡Baby diaper changing facility
‡Mobile phone company outlets
‡Car Wash
‡Sari Draping
By our fully trained and friendly staff
members. Prior appointments could be
made.
‡Shop & ship service
You shop, we ship
‡Gift Wrapping
Our trained gift wrappers will delight
you with their interesting wrapping-
ideas
‡Stitching
Sari Jackets & Under Skirts
‡&XUUHQF\([FKDQJH
‡6HPLSUHFLRXV SUHFLRXVVWRQHMHZHOU\
‡Customer Shuttle Service
To make shopping at our store at
$OH[DQGUD3ODFHHYHQPRUHFRQYHQLHQW
during busy times.
‡Bridal Registry / Gift registry
Celebrate any occasion with our
popular Odel Gift Registry.
‡Gift Vouchers
 Annual Report 2009/2010 | 35

‡%R[RIILFH
For sponsors and event organisers, a
counter to sell tickets for any event,
DWRXUVWRUHVLQ$OH[DQGUD3ODFHDQG
Mount Lavinia

‡Bank & ATM in-store

‡.HHSLQ7RXFK
We will communicate with you with
ZKDW¶VQHZLQVWRUH6LPSO\MRLQRXU
customer database online or fill a form
at the store.

‡Lost Property
Report any lost or found items to our Alexandra Place
special customer services desks.

Moratuwa Maharagama Mt. Lavinia

36 | Annual Report 2009/2010
ZZZRGHOON
One word. Convenience
Whether you’re homebound…or its
one-of-those-days where you need
everything to be just a click away,
our virtual store opens up the world
of Odel to you. It’s really just too
convenient for words.
‡¶9LUWXDO2GHO·
Offers almost the entire range of
merchandise, in cyberspace – almost as if
you were inside our stores.
‡/LYHIHHGVIURPRXU&(2WRFHOHEUDWH
special events.
‡%HWKHÀUVWWRNQRZZKHQ
ZHRSHQDQHZVWRUHRU
ODXQFKDQHZEUDQG²ZLWK
RXUHQHZVOHWWHU
‡*LIW5HJLVWU\
View the gift registries of your friends and
family and buy what they really want. Or
you can even create your own gift registry,
online.
New Home
Bridal
Birthday
Baby shower
Other
‡*LIW)LQGHU *LIWZUDSSHU
Help us suggest the perfect gift to give
to friends, family, for a new home, for
teenagers or to take on vacation. You
choose and we will wrap and deliver
‡*LIW(*LIW9RXFKHUV
,QGHQRPLQDWLRQVRI86RU5V
Purchase an ‘online’ voucher – to be
delivered and redeemed online, or an ‘in-
store’ voucher which we will deliver to the
recipient’s address and can be redeemed
at our stores.
‡([FKDQJH 5HWXUQ3ROLF\
‡VHFXUHRQOLQHSD\PHQW
‡3D\YLDDVHFXUHSD\PHQW
JDWHZD\RQOLQHRUWKURXJK
EDQNWUDQVDFWLRQVLI\RXGR
QRWZLVKWRGLVFORVH\RXULQ
IRUPDWLRQRQOLQH
%HVW:HE$ZDUGV
‡ :LQQHURIWKH%HVWHFRPPHUFH:HEVLWH
LQ6UL/DQNDIURPRYHU
Companies.
‡ :LQQHURIWKH%HVW:HEVLWH'HVLJQDQG
Content.
‡ 9RWHGWKH0RVWSRSXODU6UL/DQNDQ
Website.
:LWKRYHUKLWVSHUGD\WKHYLUWXDO
shop is really our international store, if
you like. Its our platform to share what’s
new, a medium to promote our very own
Odel-brands, showcase the hottest trends
this season and make you a part of what’s
important to us, at Odel.
The spin-off effect of being connected to
social networking sites like Facebook and
Twitter, gives us a head-on in marketing
our brand overseas. It’s a cutting-edge
medium to create ‘top-of-mind recall’ for
Odel, wherever in the world you may be.
And if you’re a fan of Odel, its just one
of the many ways that you could interact
with your favourite lifestyle store. Or even
if you’re not, Odel online gives us another
chance to take your complaints and
suggestions on board. Another chance
to go that extra mile to indulge you. And
make you a fan.

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ZLOOFRQWLQXHWRUDLVHWKHEDULQVWDII
EHQHÀWVDQGEHDQ¶HPSOR\HURI
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:HKDYHZRUNHGZLWKFKLOGUHQLQQHHG
ZLWKWKHEOLQGHVSRXVHGPDQ\DQLPDO
FDXVHVDQGGRQDWHGJHQHURXVO\WR
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WKH%XQGDOD1DWLRQDO3DUNRILQYDVLYH
YHJHWDWLRQKDYHEHFRPHSDVVLRQDWH
FDXVHVHPEUDFHGE\XV
Annual Report 2009/2010 | 37
%HFRPLQJD*RRGZLOO$PEDVVDGRU
IRU+DELWDWIRU+XPDQLW\LQ
SURYLGHGDQLGHDOSODWIRUP²ERWK
RQDSHUVRQDOVFDOHDQGIRU2GHOWR
DGYRFDWHIRUEHWWHUKRXVLQJDQGWR
HOLPLQDWHKRPHOHVVQHVVLQ6UL/DQND
,QWKH\HDUVDKHDGZHZLOOFRQWLQXH
WRFKDQQHORXUHQHUJ\WRZDUGVWKHVH
LQLWLDWLYHVDQGPDNHDGLIIHUHQFHLQWKH
FRPPXQLW\
2XUUHZDUGLVVRPHWLPHVMXVWDVPLOH
2ULQWKHFDVHRI(PEDUN«WKHZDJRI
DWDLO
Trustee
Ambassador – Habitat for Humanity
Founder – Embark
38 | Annual Report 2009/2010

HPSOR\HHV‡HQYLURQPHQW‡FRPPXQLW\
DW2GHOZHFDUH
SDLUVRIKDQGVDQG ‡ $QQXDODSSUDLVDOVSHUIRUPDQFH
PRUH EDVHGLQFUHPHQWVDQGERQXVHV

It started with just 2. ‡ +HDOWKLQVXUDQFHDQGDYLVLWLQJ

‡ ¶(PSOR\HHRIWKHPRQWK·DQG GRFWRUSURJUDPPH
3UHHWKLND*XQDZDUGHQDDQG5XZDQ ¶(PSOR\HHRIWKH\HDU·WXUQV
6DPDQWKDKDYHVHHQLWDOOXQIROGLQJ WKHVSRWOLJKWRQRXUDFKLHYHUV ‡ 6SHFLDOORDQDQGVDODU\UHODWHG
WKHHQWLUH\HDUMRXUQH\7RGD\RYHU WKURXJKRXWWKH\HDU EHQHÀWVFKHPHV
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WKH2GHOIDPLO\RIFROOHDJXHVGLUHFWO\ ‡ 6SHFLDOLQFHQWLYHVFKHPHVRQ
HPSOR\HG DFKLHYLQJWDUJHWV

$VDQHPSOR\HUZKRUHVSHFWVDQG ‡ )RFXVRQRQJRLQJWUDLQLQJDWOHDVW
FDUHVIRUHPSOR\HHVSURIHVVLRQDODQG ELPRQWKO\IRUDOOFROOHDJXHVLQ
SHUVRQDOGHYHORSPHQW2GHOJRHVWKDW WKHVWRUHVDQGVNLOOHGGHYHORSPHQW
H[WUDPLOH²PRUHWKDQZKDW·VUHTXLUHG SURJUDPPHVWRHQKDQFHWKH
E\UHJXODWLRQ SURGXFWLYLW\RIHPSOR\HHVDFURVV
WKHRUJDQLVDWLRQ
:HNHHSZRUNIXQWKURXJKUHJXODU
HYHQWVDQQXDORXWLQJVDQGNDUDRNH
GDQFHDQGGUDPDFRPSHWLWLRQVZKLOH
DWWKHVDPHWLPHLQQRYDWLQJDUDQJH
RIEHQHÀWVWRUHFRJQLVHRXWVWDQGLQJ
SHUIRUPDQFH2XUHIIRUWVUHÁHFW
LQWKH<R<GHFOLQLQJVWDIIWXUQRYHU
SHUFHQWDJH

7KHVHDUHMXVWVRPHRIWKHMR\VRI
ZRUNLQJDW2GHO

‡ ¶)DVW7UDFNHU·VWHHUVDFOHDUFDUHHU
SDWKIRUFROOHDJXHVZLWKLQRXU
VWRUHV

‡ 5HZDUGDQGUHFRJQLWLRQVFKHPHV
Otara with the 2 members of staff who Staff get together 2010
DUHLQSODFHWRLGHQWLI\VWDIIJRLQJ completed 20 years
WKHH[WUDPLOHWRVDWLVI\DQGGHOLJKW
RXUFXVWRPHUV
 Annual Report 2009/2010 | 39

¶&OHDUD+HFWDUH·3URMHFW Embark’s Vision:

Organised by the Wildlife and (PEDUN¶VGUHDPLVWRKDYHWKHVWUHHWVRI
Nature Protection Society (WNPS) in Sri Lanka free of stray dogs and to give
from Colombo, who were affected by the
collaboration with MAS Linea Aqua all dogs a home, the love and respect
Tsunami.
3YW/WGWKHSURMHFWDLPVWRULGD they deserve.
hectare area of two invasive plants at the
In 2009, Otara Gunawardene was
Bundala National Park. Embark is not merely an animal welfare
appointed a Goodwill Ambassador for
initiative, but a community based
Habitat for Humanity in Sri Lanka.
Odel contributed by funding to clear 6 intervention aimed at influencing a
hectares of Cactus and Proposis Juliflora change in the attitude towards stray
The Odel Foundation also donated
which are alien to the Park and are GRJV.HHSLQJRXUVWUHHWVIUHHRIVWUD\
5V0QWR/HR+RSHIRUWKH.RVJRGD
endangering the natural vegetation. GRJVăWKHKXPDQHZD\ZLOOQRWRQO\
Trust to construct houses for those
HQDEOHDEHWWHUOLIHIRUWKHVHµVWUHHW
DIIHFWHGE\WKH7VXQDPLLQWKH.RVJRGD
VPLOHVWRPDUN\HDUV DQLPDOV¶ZKRZRXOGRWKHUZLVHEHSURQH
area in Southern Sri Lanka.
Celebrating two decades since the birth WRDFFLGHQWVRUVXEMHFWWRLOOWUHDWPHQW
of Odel, we are partnering with Habitat but create cleaner streets and safer
(PEDUN
for Humanity to construct 20 houses to communities.
“All animals have the same rights as
mark the occasion.
humans”
Our amazing circle of volunteers does it,
MXVWIRUWKHZDJRIDWDLO

Embark branded merchandise

More than 600,000 stray dogs roam the
streets of Sri Lanka. Funds raised through
WKHVDOHRIDQH[FLWLQJUDQJHRI(PEDUN
merchandise will support our efforts to
give a better life to as many of them as
possible.
The Tsunami in 2004, triggered our
collaboration with Habitat for Humanity
ăDQLQWHUQDWLRQDORUJDQL]DWLRQ
constructing simple and affordable
houses for those in need. As part of our
efforts, we funded the construction of 7
houses of 500 sq ft each, to help resettle
Otara with Niko
families in the Balapitiya area, 80 km
40 | Annual Report 2009/2010

HPSOR\HHV‡HQYLURQPHQW‡FRPPXQLW\
DW2GHOZHFDUH&RQWG
Sterilisation
2QHRIWKHNH\FRQFHUQVRIµ(PEDUN¶
is to manage the stray-dog population
roaming the streets in Sri Lanka. Using
the Catch-Neuter-Vaccinate-Release
(CNVR) method, Embark has partnered
with the Tsunami-Animal Welfare
Association and the Blue Paw Trust to
prevent rabies from spreading among
animals and to humans. Under the CNVR
programme 3,290 dogs were treated.

Adopt-a-stray
With pre-placement interviews, follow-
up visits, free sterilisation for adopted
dogs, veterinary care logged on record
for each dog and a host of education Dogs being pampered at Embark grooming event

material for new dog-owners, this is a

well coordinated adoption campaign to
re-home street dogs.
Saving the injured
A programme to search, rescue and treat
DQLPDOVUHSRUWHGRQWKHµ(PEDUN+RWOLQH¶
Animals saved through this programme
are given a high priority when re-homing
and new owners are made aware of any
special needs of these animals.
Donations
Generous contributions from Odel
customers and the public and online
donations all make a difference
So many stories, so many tails
Suddi, barely alive and severely
injured – her foot was later
Education & Awareness
amputated; recovered through
Street Dramas conducted across Colombo
three months of love by our
help educate communities on how to Embark Volunteers and wonder-
FRH[LVWZLWKWKHLUIRXUOHJJHGIULHQGV ful veterinary care. She is now
while awareness is raised among dog happily re-homed despite being
owners or potential owners about issues three-legged.
and concerns of caring for a pet.
For the love of your dog
Ensuring the wellbeing of your pet at
DOOWLPHVLVHYHU\RZQHU¶VUHVSRQVLELOLW\
Embark works diligently to educate the
community on the importance of choosing
a well-reputed veterinary surgeon who
is not only qualified, but also genuinely
cares for animals.
Annual Report 2009/2010 | 41
42 | Annual Report 2009/2010

2,416.78mn 7XUQRYHU

211.31mn
3URILWEHIRUHWD[

1,196.40mn 1HWDVVHWV
 Annual Report 2009/2010 | 43

ILQDQFLDOLQIRUPDWLRQ
44 annual report of the directors on the state of affairs of odel limited | 47 independent auditors report | 48 balance sheet |
49 income statement | 50 cash flow statement | 51 statement of changes in equity | 52 notes to the financial statements
44 | Annual Report 2009/2010

DQQXDOUHSRUWRIWKHGLUHFWRUVRQWKHVWDWHRI
DIIDLUVRIRGHOOLPLWHG
The Directors presents their report to
the members together with the audited
Financial Statements of Odel Limited and
Consolidated Financial Statements of the
Group for the year ended 31st March
2010.
3ULQFLSDO$FWLYLW\
The principle activity of the Company
during the year was fashion retailing
offering its customers a total shopping
H[SHULHQFH7KHUHKDYHEHHQQR
significant changes in the activities of the
Company during the year under review.
*RLQJ&RQFHUQ
The Board of Directors is satisfied that the
Company has the adequate resources to
continue its operations in the foreseeable
future. Accordingly, the Financial
Statements are prepared based on the
Going Concern assumption.
*URXS5HYHQXH
The revenue of the Group during the year
was Rs. 2,417 Mn (2008/09-Rs. 1,951
Mn). An analysis of the revenue is given
in Note 3 to the Financial Statements.
*URXS(PSOR\PHQW
The Group had employed 702 persons as
at 31st March 2010.
'LYLGHQGV
During the year Company paid
dividends amounting to Rs 148,335,006
(Rs 8,100,000 in 2008/09) to the
shareholders. When the dividends
were paid the company was a Private
Company and as the Directors were
satisfied with the solvency of the
company, a formal Solvency Test was not
carried out.

3URÀW $SSURSULDWLRQ 6WDWHPHQWRI6ROYHQF\

Based on the audited Financial Statements
 
for the year ended 31st March 2010 the
5V· 5V·
Board is of the opinion that the company
Profit for the year 140,693 32,212 is in a position to pay debts in the normal
*URXSSUHWD[3URILW 211,314 63,394 course of business and the value of
3URYLVLRQIRU7D[DWLRQ 70,622 31,181 FRPSDQ\¶VQHWDVVHWVLVLQH[FHVVRILWV
*URXSSRVWWD[SURILW 140,693 32,212 stated capital.

Amount attributable to Minority Interest (1,105) (2,094)

5HVHUYHV
Profit attributable to the Shareholders 141,798 34,307 Total Group Reserves as at 31st March
Retained Earnings B/F 628,857 602,650 2010, amounted to Rs. 1,195 Mn (2009
Dividends Paid Rs. 1.16 (2008/09 Rs (148,335) (8,100) - Rs. 629 Mn). The movements of the
0.06) per Share Reserves during the year are shown in the
&DSLWDOLVDWLRQ$GMXVWPHQWRI5HVHUYHV (2,876) Nil Statement of Changes in Equity on page
51.
Retained Earnings C/F 619,444 628,857

6KDUHKROGHU,QIRUPDWLRQ

Number of Ordinary shares 128,250,000
(After sub-division)
3URSHUW\3ODQW (TXLSPHQW
Immovable property was revalued during
 the year resulting in a revaluation surplus
142,500 of Rs 575,535,775 net of deferred
WD[7KHWRWDOQHWFDSLWDOH[SHQGLWXUH
(DUQLQJVSHU6KDUH5VăEDVHGRQSUHVHQW 1.11 0.27 on acquisition of Property, plant and
number of shares after subdivision equipment during the year including
finance leased assets amounted to
'LYLGHQGVSHU6KDUH5VăEDVHGRQ 1.16 0.06
Rs. 160,780,100. (2008/09-Rs.
present number of shares after subdivision
38,139,577). The details of Property,
1HW$VVHW9DOXHSHU6KDUH5VăEDVHGRQ 9.33 4.89
plant and equipment are given in Note 4
present number of shares after subdivision
to the Financial Statements.

The Company subdivided its ordinary shares on 4th November 2009 at a ratio of 1 to
900 which caused the increase in number of shares without any change in the stated
capital.

6WDWXWRU\3D\PHQWV
The Directors, to the best of their
knowledge and belief, confirm that all
payments in respect of statutory liabilities
to Employees and to the Government have
been made within the stipulated period
during the financial year 2009/10.
&RUSRUDWH'RQDWLRQV
The Company has donated Rs 8,022,106
during the year to Odel Foundation which
carries out the CSR activities of the group.
Apart from the above the group has made
other donations of Rs 67,805.
&RPSDQ\5HFRUGV
The Directors have disclosed the nature
DQGH[WHQWRIWKHLUUHOHYDQWLQWHUHVWLQ
shares issued by the Company and
interest in transactions or proposed
transactions with the Company during the
year, to the Board of the Company and
such information have been duly entered
in the Interest Register of the Company
which is a part and partial of this Annual
Report. All the Company Records that are
required to maintain under the provisions
of the Act have also been properly
maintained.
'LUHFWRUDWH
Until the company was transformed to
a Public Company on 24th February
2010 it operated as a private company.
Consequent to the transformation
independent directors were appointed to
the Board with effect from 1st April 2010.
During the year the following members
served in the Board:
0U$MLW'DPRQ*XQHZDUGHQHă
&KDLUPDQ1RQ([HFXWLYH'LUHFWRU
(Resigned w.e.f. 18th May 2010)
0U5XFKL+XEHUW*XQHZDUGHQHă1RQ
([HFXWLYH'LUHFWRU
0V2WDUD'HO*XQHZDUGHQHă([HFXWLYH
Director/CEO
Annual Report 2009/2010 | 45
The following Directors were appointed 5HWLUHPHQWRI'LUHFWRUV
with effect from 1st April 2010 Pursuant to Article 23(2) of the Articles
0U3DXO7RSSLQJă1RQ([HFXWLYH of Association of the Company Messrs
Independent Director 37RSSLQJ66.XODWXQJDDQG$'(,
0U6DQMD\6XPDQWKUL.XODWXQJDă1RQ Perera retire and being eligible offer
([HFXWLYH,QGHSHQGHQW'LUHFWRU themselves for re-election.
Mr. Atulugamage Damian Eardley
,JQDWLXV3HUHUDă1RQ([HFXWLYH
Independent Director
'LUHFWRUV·6KDUH+ROGLQJV
7KH'LUHFWRUV¶KROGLQJRIQXPEHURIRUGLQDU\VKDUHVRIWKH&RPSDQ\DVDWVW0DUFK
2010 and as at the date of this report is as follows:
1DPHRIWKH'LUHFWRU $VDWVW $VDWVW $VDWWK
0DUFK 0DUFK 0D\
$MLW'DPRQ*XQHZDUGHQH 47,500 42,750,000 40,416,900
Ruchi Hubert Gunewardene Nil Nil 1,000,000
Otara Del Gunewardene 95,000 85,500,000 80,833,100
The increase in number of shares as at 31st March 2010 is purely due to the sub-
division of shares at 1 to 900.
'LUHFWRUV·,QWHUHVW,Q&RQWUDFWV all rules and regulations applicable
'LUHFWRUV¶LQWHUHVWLQFRQWUDFWVRIWKH to a listed company. As another step
Company is disclosed in Note 26 to further, independent directors have
the Financial Statement, and has been been appointed to the Board and Board
declared at meetings of the Directors Committees have been set up as follows.
and entered in the Interest Register of the
Company. The Directors have no direct or $XGLW&RPPLWWHH
indirect interest in any other contract or 0U6DQMD\6XPDQWKUL.XODWXQJD
proposed contract with the Company. (Chairman)
Mr. Paul Topping
&RUSRUDWH*RYHUQDQFH Mr. Ruchi Hubert Gunewardene
The Company functioned as a Private
Company until it was transformed in to a 5HPXQHUDWLRQ&RPPLWWHH
public company on 24th February 2010. 0U5XFKL+XEHUW*XQHZDUGHQHă
The Board of Directors of the Company Chairman
has always acknowledged the necessity Mr. Atulugamage Damian Eardley
of conducting the business activities of Ignatius Perera
the company in accordance with good Mr Paul Topping
governance practices even when it was a 0U6DQMD\6XPDQWKUL.XODWXQJD
Private Company. With the transformation
of the company in to a Public Company
and with further intentions of listing on
WKH&RORPER6WRFN([FKDQJHWKH%RDUG
is committed to be in compliance with
46 | Annual Report 2009/2010

DQQXDOUHSRUWRIWKHGLUHFWRUVRQWKHVWDWHRI
DIIDLUVRIRGHOOLPLWHGFRQWG
5LVN0DQDJHPHQW
As part of governance processes the
Board on a continuous basis, reviews and
evaluates the internal controls and risks
of the company and takes any measures
required to mitigate the risks.
6XEVWDQWLDO6KDUH+ROGLQJV
As at the date of this report there are only
seven shareholders who own the entirety
of the stated capital of the company who
are as follows.
$XGLWRUV
In accordance with the Companies Act
No. 7 of 2007, resolution proposing
the re-appointment of Messrs. Ernst
and Young, Chartered Accountants,
as Auditors to the Company will be
submitted at the Annual General Meeting.
By Order of the Board of
Odel Limited

0V2WDUD'HO*XQHZDUGHQHă 
80,833,100
0U5XFKL+XEHUW*XQHZDUGHQHă 
1,000,000
0U$MLW'DPRQ*XQHZDUGHQHă  A.D.Gunewardene
40,416,900 Director
0U/DODQWKD:LOIUHG$QRPDO'H6R\VDă
2,775,000
0UV$QQH0HQLN'H6R\VDă
0U$PULWK-RVHSK'H6R\VDă
3KRHQL[9HQWXUHV/LPLWHGă O.D.Gunewardene
Director
&RQWLQJHQW/LDELOLWLHVDQG
&RPPLWPHQWV
To the best of knowledge and information
available to the Board there are no (Sgd.)
contingencies or commitments. Director
SSP Corporate Services (Private) Limited
(YHQWV$IWHU%DODQFH6KHHW'DWH Secretaries
No circumstances have arisen and no
material events have occurred during the Date : 17th May 2010
period between the Balance Sheet date
and Directors signing of Accounts that
UHTXLUHGLVFORVXUHRUDGMXVWPHQWWRWKH
Financial Statements.
 Annual Report 2009/2010 | 47

LQGHSHQGHQWDXGLWRU‘VUHSRUW

'.+0507:

727+(6+$5(+2/'(562)2'(/ 6FRSHRI$XGLWDQG%DVLVRI2SLQLRQ proper accounting records for the year

/,0,7(' 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQ ended 31 March 2010 and the financial
5HSRUWRQWKH)LQDQFLDO6WDWHPHQWV on these financial statements based on statements give a true and fair view of the
We have audited the accompanying our audit. We conducted our audit in &RPSDQ\¶VVWDWHRIDIIDLUVDVDW0DUFK
financial statements of Odel Limited accordance with Sri Lanka Auditing 2010 and its profit and cash flows for the
³&RPSDQ\´WKHFRQVROLGDWHGILQDQFLDO
statements of the Company and its
subsidiaries, which comprise the balance
sheets as at 31 March 2010, and the
income statements, statements of changes
in equity and cash flow statements for
the year then ended, and a summary of
significant accounting policies and other
H[SODQDWRU\QRWHV
0DQDJHPHQW·V5HVSRQVLELOLW\IRU
WKH)LQDQFLDO6WDWHPHQWV
Management is responsible for the
preparation and fair presentation of
these financial statements in accordance
with Sri Lanka Accounting Standards.
This responsibility includes: designing,
implementing and maintaining internal
control relevant to the preparation and
fair presentation of financial statements
that are free from material misstatement,
whether due to fraud or error; selecting
and applying appropriate accounting
policies; and making accounting estimates
that are reasonable in the circumstances.
Standards. Those standards require
that we plan and perform the audit to
obtain reasonable assurance whether the
financial statements are free from material
misstatement.
$QDXGLWLQFOXGHVH[DPLQLQJRQDWHVW
basis, evidence supporting the amounts
and disclosures in the financial statements.
An audit also includes assessing the
accounting principles used and significant
estimates made by management, as
well as evaluating the overall financial
statement presentation.
We have obtained all the information
DQGH[SODQDWLRQVZKLFKWRWKHEHVWRIRXU
knowledge and belief were necessary
for the purposes of our audit. We
therefore believe that our audit provides a
reasonable basis for our opinion.
2SLQLRQ
In our opinion, so far as appears from our
H[DPLQDWLRQWKH&RPSDQ\PDLQWDLQHG
year then ended in accordance with Sri
Lanka Accounting Standards.
In our opinion, the consolidated financial
statements give a true and fair view of
the state of affairs as at 31 March 2010
and the profit and cash flows for the year
then ended, in accordance with Sri Lanka
Accounting Standards, of the Company
and its subsidiaries dealt with thereby, so
far as concerns the shareholders of the
Company.
5HSRUWRQ2WKHU/HJDODQG
5HJXODWRU\5HTXLUHPHQWV
In our opinion, these financial statements
also comply with the requirements of
Sections 151(2) and 153(2) to 153(7) of
the Companies Act No. 07 of 2007.
17 May 2010
Colombo
48 | Annual Report 2009/2010

EDODQFHVKHHW
 &RPSDQ\ *URXS
As at 31 March 2010 2009 2010 2009
Note Rs. Rs. Rs. Rs.
Restated Restated

$66(76
Non-Current Assets
Property, Plant and Equipment, net 4 1,311,384,115 751,932,099 1,575,777,656 902,642,002
Intangible Assets 5 2,510,021 2,645,442 13,526,614 17,813,699
Investment in Subsidiaries 6 118,101,030 108,100,020 - -
1,431,995,167 862,677,560 1,589,304,270 920,455,701

&XUUHQW$VVHWV
Inventories 7 645,170,733 408,888,587 653,767,834 408,888,587
Trade and Other Receivables 8 76,100,211 77,956,213 80,510,902 80,612,111
,QFRPH7D[5HIXQG'XH  - 9,434,906 - 9,434,906
Amounts due from Related Parties 9 75,913,004 144,265,865 - 30,326,313
Cash and Bank Balances 16 23,092,215 20,725,041 24,981,992 21,179,268
820,276,163 661,270,612 759,260,728 550,441,185
Non- Current Asset Classified as held for sale 10 - 38,072,097 - 38,072,097
7RWDO$VVHWV 2,252,271,329 1,562,020,270 2,348,564,997 1,508,968,983

(48,7<$1'/,$%,/,7,(6
&DSLWDODQG5HVHUYHV
Stated Capital 11 1,425,000 1,425,000 1,425,000 1,425,000
Revaluation Surplus 442,885,640 - 575,535,775 -
Retained Earnings 542,493,084 578,494,429 619,444,129 628,857,360
986,803,724 579,919,429 1,196,404,903 630,282,360
Minority Interest - - - (2,800,415)
7RWDO(TXLW\ 986,803,724 579,919,429 1,196,404,903 627,481,945

1RQ&XUUHQW/LDELOLWLHVDQG'HIHUUHG,QFRPH
Interest Bearing Loans and Borrowings 12 142,782,622 113,349,904 142,782,622 113,349,904
'HIHUUHG7D[/LDELOLWLHV  40,071,946 27,297,667 40,695,101 27,718,156
Other Deferred Liabilities 13 29,361,667 20,282,393 31,731,182 21,339,533
212,216,235 160,929,963 215,208,905 162,407,592

&XUUHQW/LDELOLWLHV
Trade and Other Payables 14 471,119,153 312,661,732 483,318,016 316,721,017
Amounts due to related parties 15 132,529,034 129,233,206 - 22,149,802
,QFRPH7D[3D\DEOH  26,135,963 - 30,165,951 932,688
Dividend Payable - 540,000 - 540,000
Interest Bearing Loans and Borrowings 12 423,467,222 378,735,939 423,467,222 378,735,939
1,053,251,370 821,170,877 936,951,189 719,079,446
7RWDO(TXLW\DQG/LDELOLWLHV 2,252,271,329 1,562,020,270 2,348,564,997 1,508,968,983

These Financial Statements are in compliance with the requirements of the Companies Act No :07 of 2007.

:1,&)HUQDQGR
Group Chief Financial 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:

$'*XQHZDUGHQH 2'*XQHZDUGHQH
Director Director

The accounting policies and notes on pages 52 through 74 form an integral part of the Financial Statements.

17 May 2010
Colombo
 Annual Report 2009/2010 | 49

LQFRPHVWDWHPHQW
 &RPSDQ\ *URXS
Year ended 31 March 2010 2009 2010 2009
Note Rs. Rs. Rs. Rs.
Restated Restated

7XUQRYHU 3 2,413,170,087 1,950,715,264 2,416,780,762 1,950,715,263

Cost of Sales (1,557,942,646) (1,303,782,260) (1,574,558,109) (1,313,904,202)
*URVV3URÀW 855,227,440 646,933,004 842,222,654 636,811,061
Other Income 17 174,623,243 83,041,398 171,576,826 70,441,398
Distribution Costs (146,834,591) (95,176,681) (147,695,880) (95,176,684)
$GPLQLVWUDWLYH([SHQVHV  (632,409,749) (498,343,800) (582,327,524) (456,426,124)
Finance Cost 18 (72,259,059) (92,228,488) (72,461,410) (92,255,561)
3URÀW%HIRUH7D[ 19 178,347,285 44,225,434 211,314,666 63,394,090
,QFRPH7D[([SHQVH  (66,013,630) (27,648,225) (70,621,670) (31,181,401)
3URÀW)RUWKH\HDU 112,333,655 16,577,209 140,692,995 32,212,688

$WWULEXWDEOHWR
Equity Holders of the Parent 141,798,095 34,307,370
Minority Interest (1,105,100) (2,094,682)
140,692,995 32,212,688

Earnings per Share 21 1.11 0.27

The accounting policies and notes on page 52 through 74 form an integral part of the Financial Statements.
50 | Annual Report 2009/2010

FDVKIORZVWDWHPHQW
 &RPSDQ\ *URXS
Year ended 31 March 2010 2009 2010 2009
Note Rs. Rs. Rs. Rs.

&DVK)ORZV)URP8VHGLQ2SHUDWLQJ$FWLYLWLHV

1HWSURÀWEHIRUH,QFRPH7D[([SHQVH 178,347,285 44,225,430 211,314,666 63,394,090

$GMXVWPHQWVIRU
Depreciation 4 39,405,142 35,189,549 46,518,459 38,790,771
Intangible Assets Amortisation 1,046,793 894,658 6,592,520 6,003,619
Income from Investments 17 (4,033,975) (13,862,251) (4,033,975) (1,262,251)
Finance Costs 18 72,259,059 92,228,488 72,461,410 92,255,561
Inventory Write-off - 60,909,346 - 60,909,346
Profit on disposal of Property, Plant and Equipment (75,594,553) (557,676) (75,594,553) (557,676)
Gain on disposal of equity investment (2,406,678) - (2,406,678) -
Impairment Loss - - 36,890,822 -
Unrealised Profit - - 4,941,856 -
Provision for Doubtful debt 45,183,055 - - -
Provision for Defined Benefit Plans 13 10,818,457 3,582,893 11,421,429 3,599,711
Lease Interest 168,370 - 168,370 -
Operating Profit before Working Capital Changes 265,192,955 222,610,437 308,274,326 263,133,170

Decrease/(Increase) in Inventories (236,282,146) (58,883,592) (242,568,872) (58,883,592)

(Increase)/ Decrease in Trade and Other Receivables 1,856,002 (4,011,543) (288,201) (5,437,954)
(Increase)/Decrease in Dues from Related Parties 22,629,806 (56,172,874) 39,517,853 (17,772,337)
(Increase)/Decrease in Dues to Related Parties 3,295,827 51,031,152 (31,807,480) -
Decrease in Trade and Other Payables 158,457,421 62,559,669 160,592,918 62,274,878
Cash Generated from Operations 215,149,865 217,133,249 233,720,544 243,314,165

Finance Costs paid (72,259,059) (92,228,488) (72,461,431) (92,255,561)

Defined Benefit Plan Costs paid 13 (1,739,182) (1,427,323) (2,294,527) (1,427,323)
 ,QFRPH7D[3DLG  (32,431,727) (63,323,077) (33,575,918) (65,535,076)
Net Cash From/(Used in) Operating Activities 108,719,897 60,154,361 125,388,667 84,096,205

&DVK)ORZVIURP8VHGLQ,QYHVWLQJ$FWLYLWLHV

Acquisition of Property, Plant and Equipment 4 (128,087,857) (33,336,724) (137,911,685) (43,028,327)
Acquisition of Intangible Assets 5 (911,373) (718,855) (2,197,728) (2,179,903)
Net Increase in Capital work in progress (17,300,084) - (17,300,084) -
 3URFHHGVIURPGLVSRVDORI)L[HG$VVHWV  84,492,969 1,455,202 84,492,969 1,455,202
Investment in subsidiaries 6 (10,001,010) - (14,124,042) -
Investment in Backstage Singapore - (38,072,097) - (38,072,097)
Proceeds from disposal of Investment 40,478,775 - 40,478,775 -
Investment Income Received 17 4,033,975 13,862,251 4,033,975 1,262,249
Net Cash Flows from/(Used in) Investing Activities (27,294,605) (56,810,223) (42,527,820) (80,562,876)

&DVK)ORZVIURP8VHGLQ)LQDQFLQJ$FWLYLWLHV

Repayment of Interest Bearing Borrowings 12.1 (83,254,741) (103,804,835) (83,254,740) (103,804,835)
Proceeds From Interest Bearing Borrowings 12.1 158,600,000 36,662,237 158,600,000 36,662,238
Lease Rentals Paid - Vehicle (332,618) - (332,618) -
Loan Settlement - Director - (5,000,000) - (5,000,000)
Dividends Paid (148,335,000) (8,100,000) (148,335,006) (8,100,000)
Net Cash Flows from/(Used in) Financing Activities (73,322,359) (80,242,598) (73,322,364) (80,242,597)
1HW,QFUHDVH'HFUHDVHLQ&DVKDQG
  &DVK(TXLYDOHQWV 8,102,933 (76,898,460) 9,538,483 (76,709,268)

&DVKDQG&DVK(TXLYDOHQWVDWWKH
 EHJLQQLQJRIWKH\HDU (278,106,071) (201,207,613) (277,651,844) (200,942,576)
&DVKDQG&DVK(TXLYDOHQWVDWWKHHQGRIWKH\HDU 16.2 (270,003,137) (278,106,071) (268,113,361) (277,651,844)

The accounting policies and notes on pages 52 through 74 form and integral part of the Financial Statements.
 Annual Report 2009/2010 | 51

VWDWHPHQWRIFKDQJHVLQHTXLW\
Stated Revaluation Retained Total
Capital Reserve Earnings
Rs. Rs. Rs. Rs.

&RPSDQ\
%DODQFHDVDW$SULO 1,425,000 - 570,017,221 571,442,221
Net Profit / (Loss) for the period - - 16,577,209 16,577,209
Dividends - - (8,100,000) (8,100,000)
%DODQFHDVDW$SULO 1,425,000 - 578,494,429 579,919,429
Revaluation Surplus - 457,648,885 - 457,648,885
'HIHUUHG7D[,PSDFWRQ5HYDOXDWLRQ5HVHUYH%XLOGLQJ     
'HIHUUHGWD[UHYHUVDOWUDQVIHUUHGWR5HYDOXDWLRQ5HVHUYH    
Net Profit / (Loss) for the period ended
31 March 2010 - - 112,333,655 112,333,655
Dividends - - (148,335,000) (148,335,000)
%DODQFHDVDW0DUFK 1,425,000 442,885,640 542,493,084 986,803,724

Stated Revaluation Retained Minority Total

Capital Reserve Earnings Interest
Rs. Rs. Rs. Rs. Rs.

*URXS
%DODQFHDVDW$SULO 1,425,000 - 602,681,990 (705,734) 603,401,255
Net Profit / (Loss) for the period - - 34,307,370 (2,094,681) 32,212,689
Dividends - - (8,100,000) - (8,100,000)
%DODQFHDVDW0DUFK 1,425,000 - 628,889,360 (2,800,415) 627,513,944
&RQVROLGDWLRQ$GMXVWPHQW     
%DODQFHDVDW$SULO 1,425,000 - 628,857,360 (2,800,415) 627,481,944
Revaluation Surplus - 590,299,020 - - 590,299,020
'HIHUUHG7D[,PSDFWRQ
Revaluation Reserve- Building - (15,006,840) - - (15,006,840)
'HIHUUHGWD[UHYHUVDOWUDQVIHUUHGWR
Revaluation Reserve - 243,595 - - 243,595
Net Profit / (Loss) for the
period ended 31 March 2010 - - 141,798,095 (1,105,100) 140,692,995
Dividends - - (148,335,006) (6) (148,335,012)
Negative Goodwill recognised
directly in Equity - - 1,029,200 - 1,029,200
$GMXVWPHQWGXHWRWKH
change in holding - - (3,905,521) 3,905,521 -
%DODQFHDVDW0DUFK 1,425,000 575,535,775 619,444,129 - 1,196,404,902

The accounting policies and notes on pages 52 through 74 form an integral part of the Financial Statements.
52 | Annual Report 2009/2010
QRWHVWRWKHILQDQFLDOVWDWHPHQWV
 &25325$7(,1)250$7,21
 *HQHUDO
3DUHQW&RPSDQ\
Odel Limited is a limited liability company
incorporated and domiciled in Sri Lanka.
The registered office of the Company
LVORFDWHGDW.RWWH5RDG
5DMDJLUL\DDQGWKHSULQFLSDOSODFHRI
business is situated at No. 10, Ward
Place Colombo 07.
6XEVLGLDU\
Odel Properties (Pvt) Ltd.,
Odel Properties (Pvt) Limited is a limited
liability company incorporated and
domiciled in Sri Lanka. The registered
office and the principal place of business
LVVLWXDWHGDW1R.RWWH5RDG
5DMDJLUL\D
Odel Lanka (Pvt) Ltd.,
Odel Lanka (Pvt) Limited is a limited
Company is located at No.38, Dickmans
Road, Colombo -05 and the principal
place of business is situated at No.2,
Ward Place Colombo 07.
 3ULQFLSDO$FWLYLWLHVDQG1DWXUH
RI2SHUDWLRQV
3DUHQW&RPSDQ\
During the year, the principal activities
of the Company were the sale of ready-
made Garments, Home-ware and other
accessories.
6XEVLGLDULHV
Odel Properties (Pvt) Ltd
During the year, the principal activities
of the Company were to build, own,
establish, manage, run warehousing
FRPSOH[HV UHQWLQJRXWLWVSUHPLVHV
Odel Lanka (Pvt) Ltd
Principal activities of the Company were
 'DWHRI$XWKRULVDWLRQIRU
,VVXH
The Financial Statements of Odel Limited
for the year ended 31 March 2010 were
authorised for issue on 17th May 2010
by the Board of Directors.

 %DVLVRI3UHSDUDWLRQ
The financial statements have been
prepared on a historical cost basis. The
financial statements are presented in
Sri Lankan Rupees. The preparation and
presentation of these financial statements
are in compliance with the Companies
Act No. 07 of 2007.
2.1.1 Statement of Compliance
The balance sheet, statements of income,
changes in equity and cash flow, together
with the accounting policies and notes,
liability company incorporated and
domiciled in Sri Lanka. The registered
office of the Company is located at
1R.RWWH5RDG5DMDJLUL\D
Odel Information Technology Services
(Pvt) Ltd
Odel Information Technology Services
(Pvt) Ltd is a limited liability company
incorporated and domiciled in Sri Lanka.
The registered office of the Company
LVORFDWHGDW1R.RWWH5RDG
5DMDJLUL\DDQGWKHSULQFLSDOSODFHRI
EXVLQHVVLVVLWXDWHGDW1R.RWWH
5RDG5DMDJLUL\D
Odel Apparels (Pvt) Ltd .
Odel Apperals (Pvt) Ltd is a limited
liability company incorporated and
domiciled in Sri Lanka. The registered
office of the Company is located at
1R.RWWH5RDG5DMDJLUL\D
Otone (Pvt) Ltd
OTONE (Pvt) Ltd is a limited liability
company incorporated and domiciled
in Sri Lanka. The registered office of the
to initiate and plan the preliminary
activities required to construct a high rise
EXLOGLQJFRPSOH[DQGWKHRSHUDWLRQVZHUH
not yet commenced.
Odel Apparels (Pvt) Ltd .
During the year, the principal activities of
the Company were manufacturing and
supply of Garments.
Otone (Pvt) Ltd
During the year, the principal activities of
the Company were to carry on, operate
manage and undertake the business
of health and fitness centers, spas,
gymnasium, of kind and description.
Odel Information Technology Services
(Pvt) Ltd
During the year, the principal activities of
the Company were to provide information
technology infrastructure services for the
local market and to provide maintenance
services in connection with computers
and peripheral equipment and word
processing and similar equipment.
³)LQDQFLDO6WDWHPHQWV´LH&RQVROLGDWHG
Financial Statements of the Group and the
Company as at 31st March 2010 and for
the year then ended comply in all material
respects with the applicable Sri Lanka
Accounting Standards.
2.1.2 Going Concern
The Directors have made an assessment
RIWKH&RPSDQ\¶VDELOLW\WRFRQWLQXHDV
a going concern and they do not intend
either to liquidate or to cease trading.
2.1.3 Comparative Information
The accounting policies have been
consistently applied by the Group and,
are consistent with those used in the
previous year.
2.1.4 Foreign Currency Translation
The Financial Statements are presented
in Sri Lanka Rupees, which is the
*URXS¶VIXQFWLRQDODQGSUHVHQWDWLRQ
currency. Transactions in foreign
currencies are initially recorded at
the functional currency rate ruling at
the date of the transaction. Monetary

assets and liabilities denominated in
foreign currencies are retranslated at
WKHIXQFWLRQDOFXUUHQF\UDWHRIH[FKDQJH
ruling at the balance sheet date. All
differences are taken to profit or loss. Non
monetary items that are measured in terms
of historical cost in a foreign currency are
WUDQVODWHGXVLQJWKHH[FKDQJHUDWHVDVDW
the dates of the initial transactions. Non
2.1.6 Effect of Sri Lanka Accounting
Standards that have been issued
but not yet effective
The following standards have been issued
by the Institute of Chartered Accountants
of Sri Lanka and are effective for the
accounting periods on the dates specified
below.
Annual Report 2009/2010 | 53
39 to grants of shares, share options or
other equity instruments that were granted
after 01 January 2010.
The Group is in the process of evaluating
the impact of this standard, and the
impact of the same is not currently
estimable as at the date of the publication
of these financial statements.
monetary items measured at fair value in
a foreign currency are translated using
WKHH[FKDQJHUDWHVDWWKHGDWHZKHQWKH
fair value was determined.
2.1.5 Basis of consolidation
The Consolidated Financial Statements
include the results, assets and liabilities
of Odel Limited, Odel Lanka (Pvt) Ltd,
Odel Information Technology Services
(Pvt) Ltd, Odel Properties (Pvt) Limited,
Odel Apparels (Pvt) Ltd & Otone (Pvt)
D Sri Lanka Accounting Standard 44:
Financial Instruments; Presentation (SLAS
 &KDQJHVLQ$FFRXQWLQJ
44) and Sri Lanka Accounting Standard
3ROLFLHV
45: Financial Instruments; Recognition &
The accounting policies adopted are
Measurement (SLAS 45)
consistent with those of the previous
SLAS 44 and 45 would be effective for
financial year.
financial years beginning on or after 1
January 2011. Accordingly, the financial
 6LJQLÀFDQW$FFRXQWLQJ
Statements for the year ending 31
-XGJHPHQWV(VWLPDWHVDQG
December 2011 will adopt SLAS 44 and
$VVXPSWLRQV
45, for the first time.
,QWKHSURFHVVRIDSSO\LQJWKH*URXSV¶
accounting policies, management is
These two standards together provide
/WG³*URXS´PDGHXSWRVW0DUFK
2010 which is its financial year end.
Control means the ability or power of the
Company to dominate decision making
directly or indirectly in relation to financial
and operating policies of another
company to enable that other company to
RSHUDWHZLWKLWLQSXUVXLQJWKHREMHFWLYHV
of the controlling company.
All intra- Group balances, transactions
and profits are eliminated on
consolidation.
The interest of the outside shareholders
in net assets and the proportion of the
profit and loss are stated separately in
the consolidated balance sheet under the
heading minority interest.
In the Separate Financial Statements
comprehensive guidance on identification,
classification, measurement and
presentation of financial instruments into
financial assets, financial liabilities and
equity instruments.
'XHWRWKHFRPSOH[QDWXUHRIWKHHIIHFWRI
these standards the impact of adoption is
not estimable as at the date of publication
of these financial statements.
b) Sri Lanka Accounting Standard 39:
Share Based Payments (SLAS 39)
SLAS 39: Share based payments is
effective for periods beginning on or
after 1 January 2010 and will be first
adopted in the year ending 31 December
7KLVVWDQGDUGUHTXLUHDQH[SHQVH
to be recognised where the Company
EX\VJRRGVRUVHUYLFHVLQH[FKDQJH
for shares or rights over shares (equity
UHTXLUHGWRPDNHMXGJPHQWVDSDUWIURP
those involving estimations, which may
have significant effects on the amounts
recognised in the Financial Statements.
Further, management is required to
consider key assumptions concerning the
future and other key sources of estimation
uncertainty at the balance sheet date,
that have a significant risk of causing
DPDWHULDODGMXVWPHQWVWRWKHFDUU\LQJ
amounts of assets and liabilities within
WKHQH[WILQDQFLDO\HDU7KHUHVSHFWLYH
carrying amounts of such assets and
liabilities are as given in related notes to
the Financial Statements. The key items as
such are discussed below;
Review of Impairment of Assets
The Group determined whether assets
had been impaired by performing
an impairment test. This requires an
of the company the investments in
subsidiaries are accounted for at cost.
,QFRPHLVUHFRJQLVHGRQO\WRWKHH[WHQW
that dividends are received from those
investments.
ăVHWWOHGWUDQVDFWLRQVRULQH[FKDQJHIRU
other assets equivalent in value to a given
number of shares or rights over shares
(cash- settled transactions). For equity-
settled share-based payment transactions,
the Company is required to apply SLAS
HVWLPDWLRQRIWKH³YDOXHLQXVH´RIWKH
cash generating units. Estimating a value
in use amount requires management to
PDNHDQHVWLPDWHRIWKHH[SHFWHGIXWXUH
cash flows from the cash generating unit
and also to choose a suitable discount
54 | Annual Report 2009/2010
QRWHVWRWKHILQDQFLDOVWDWHPHQWVFRQWG
rate in order to calculate present value of
those cash flows. This valuation requires
the Company to make estimates about
H[SHFWHGIXWXUHFDVKIORZVDQGGLVFRXQW
UDWHVDQGKHQFHWKH\DUHVXEMHFWWR
uncertainty.
Owner Occupied Properties and
Investment Property
In determining if a property qualifies as
Investment Property the Group makes a
MXGJPHQWZKHWKHUWKHSURSHUW\JHQHUDWHV
independent cash flows rather than cash
flows that are attributable not only to the
property but also other assets. Judgment
is also applied in determining if ancillary
services are significant, so that a property
does not qualify as investment property.
Defined Benefit Plans
The Defined Benefit Obligation and
the related charge for the year are
determined using assumptions required
under actuarial valuation techniques. The
valuation involves making assumptions
about discount rates, future salary
increases, staff turnover rates etc. Due to
the long-term nature of such obligations
WKHVHHVWLPDWHVDUHVXEMHFWWRVLJQLILFDQW
uncertainty. Further details are given Note
No 12.
 6XPPDU\RI6LJQLÀFDQW
$FFRXQWLQJ3ROLFLHV
and computed in accordance with the
SURYLVLRQVRIWKHUHOHYDQWWD[OHJLVODWLRQV
&XUUHQWLQFRPHWD[UHODWLQJWRLWHPV
recognised directly in equity is recognised
in equity and not in the income statement.
b) Deferred Taxation
'HIHUUHGLQFRPHWD[LVSURYLGHGXVLQJ
the liability method, on all temporary
differences at the balance sheet date
EHWZHHQWKHWD[EDVHVRIDVVHWVDQG
liabilities and their carrying amounts for
financial reporting purposes.
'HIHUUHGLQFRPHWD[OLDELOLWLHVDUH
UHFRJQLVHGIRUDOOWD[DEOHWHPSRUDU\
GLIIHUHQFHVH[FHSW
Ć ZKHUHWKHGHIHUUHGLQFRPHWD[
liability arises from goodwill
amortisation of an asset or liability
in a transaction that is not a
business combination and , at
the time of the transaction, affects
neither the accounting profit nor
WD[DEOHSURILWRUORVVDQG
Ć ,QUHVSHFWRIWD[DEOHWHPSRUDU\
differences associated with
investments in subsidiaries,
DVVRFLDWHVDQGLQWHUHVWVLQMRLQW
YHQWXUHVH[FHSWZKHUHWKHWLPLQJ
of the reversal of the temporary
differences can be controlled and
Ć where the deferred income
WD[UHODWLQJWRWKHGHGXFWLEOH
temporary differences arises from
the initial recognition of an asset
or liability in a transaction that is
not a business combination and, at
the time of the transaction, affects
neither the accounting profit nor
WD[DEOHSURILWRUORVVDQG
Ć In respect of deductible temporary
difference associated with
investments in subsidiaries,
DVVRFLDWHVDQGLQWHUHVWVLQMRLQW
YHQWXUHVGHIHUUHGWD[DVVHWVDUH
RQO\UHFRJQLVHGWRWKHH[WHQWWKDW
it is probable that the temporary
differences will reverse in the
IRUHVHHDEOHIXWXUHDQGWD[DEOH
profit will be available against
which the temporary differences
can be utilised.
The carrying amount of deferred income
WD[DVVHWVLVUHYLHZHGDWHDFKEDODQFH
VKHHWGDWHDQGUHGXFHGWRWKHH[WHQWWKDW
it is no longer probable that sufficient
WD[DEOHSURILWZLOOEHDYDLODEOHWRDOORZDOO
RUSDUWRIWKHGHIHUUHGLQFRPHWD[DVVHWWR
be utilised.
'HIHUUHGLQFRPHWD[DVVHWVDQGOLDELOLWLHV
DUHPHDVXUHGDWWKHWD[UDWHVWKDWDUH
H[SHFWHGWRDSSO\WRWKH\HDUZKHQWKH
asset is realised or the liability is settled,
2.4.1 Taxation
a) Current Taxes
&XUUHQWLQFRPHWD[DVVHWVDQGOLDELOLWLHV
for the current and prior periods are
PHDVXUHGDWWKHDPRXQWH[SHFWHGWREH
UHFRYHUHGIURPRUSDLGWRWKHWD[DWLRQ
DXWKRULWLHV7KHWD[UDWHVDQGWD[ODZV
used to compute the amount are those that
are enacted or substantively enacted by
the balance sheet date.
7KHSURYLVLRQIRULQFRPHWD[LVEDVHGRQ
WKHHOHPHQWVRILQFRPHDQGH[SHQGLWXUH
as reported in the Financial Statements
it is probable that the temporary
differences will not reverse in the
foreseeable future.
'HIHUUHGLQFRPHWD[DVVHWVDUH
recognised for all deductible temporary
GLIIHUHQFHVFDUU\IRUZDUGRIXQXVHGWD[
DVVHWVDQGXQXVHGWD[ORVVHVWRWKHH[WHQW
WKDWLWLVSUREDEOHWKDWWD[DEOHSURILWZLOO
be available against which the deductible
temporary differences, and the carry-
IRUZDUGRIXQXVHGWD[DVVHWVDQGXQXVHG
WD[ORVVHVFDQEHXWLOLVHG([FHSW
EDVHGRQWD[UDWHVDQGWD[ODZVWKDW
have been enacted or substantively
enacted at the balance sheet date.
c) Sales Tax
5HYHQXHVH[SHQVHVDQGDVVHWVDUH
UHFRJQLVHGQHWRIWKHDPRXQWRIVDOHVWD[
H[FHSWZKHUHWKHVDOHVWD[LQFXUUHGRQ
a purchase of assets or service is not
UHFRYHUDEOHIURPWKHWD[DWLRQDXWKRULWLHV
LQZKLFKFDVHWKHVDOHVWD[LVUHFRJQLVHG
as a part of the cost of the asset or part
RIWKHH[SHQVHLWHPVDVDSSOLFDEOHDQG
receivable and payable that are stated

ZLWKWKHDPRXQWRIVDOHVWD[LQFOXGHG
7KHDPRXQWRIVDOHVWD[UHFRYHUDEOHDQG
SD\DEOHLQUHVSHFWRIWD[DWLRQDXWKRULWLHV
is included as a part of receivables and
payable in the Balance Sheet.
2.4.2 Borrowing Costs
Borrowing costs are recognised as an
H[SHQVHLQWKHSHULRGLQZKLFKWKH\DUH
incurred.
2.4.3 Inventories
Inventories are valued at the lower of cost
and net realisable value, after making
due allowances for obsolete and slow
moving items. Net realisable value is the
price at which inventories can be sold
in the ordinary course of business less
the estimated cost of completion and the
estimated cost necessary to make the sale.
The cost incurred in bringing finished
inventories to its present location and
condition is accounted using the actual
cost (Weighted Average).
2.4.4 Trade and Other Receivables
Trade receivables are stated at the
amounts they are estimated to realise
net of provisions for bad and doubtful
receivables.
Other receivables and dues from
Related Parties are recognised at cost
less provision for bad and doubtful
receivables.
2.4.5 Cash and Cash Equivalents
Cash and cash equivalents are defined as
cash in hand, demand deposits and short-
term highly liquid investments, readily
convertible to known amounts of cash and
VXEMHFWWRLQVLJQLILFDQWULVNRIFKDQJHVLQ
value.
For the purpose of cash flow statement,
cash and cash equivalents consist of cash
in hand and deposits in banks net of
Annual Report 2009/2010 | 55
outstanding bank overdrafts. Investments impairment charged subsequent to the
with short maturities i.e. three months or date of the revaluation.
less from the date of acquisition are also
treated as cash equivalents. Depreciation is calculated on a straight
line basis over the following useful lives
2.4.6 Intangible Assets of the assets using the applicable rates as
Intangible assets acquired separately are follows.
measured on initial recognition at cost.
Following intangible assets are carried at Landscaping Over 2 years
cost less any accumulated amortisation Buildings Over 40 years
and any accumulated impairment losses. Lease hold
Buildings Over the lease period
Computer Software: Straight line method Equipment Over 10 years
over 04 Years )L[WXUHVă$LU&RQGLWLRQ 2YHU\HDUV
)L[WXUHVă2WKHU 2YHU\HDUV
Intangible assets with finite lives are Furniture Over 10 years
amortised over the useful economic life Office Equipment
and assessed for impairment whenever  ă&RPSXWHU 2YHU<HDUV
there is an indication that the intangible Office Equipment
assets may be impaired. The amortisation  ă2WKHU 2YHU<HDUV
period and the amortised method for an 6KRS)LWWLQJVă)L[WXUHV 2YHU<HDUV
intangible asset with a finite useful life 6KRS)LWWLQJVă0RELOH 2YHU<HDUV
is reviewed at least at each financial Motor Vehicle Over 5 Years
\HDUHQG&KDQJHVLQWKHH[SHFWHG Motor Vehicle
XVHIXOOLIHRUWKHH[SHFWHG3DWWHUQRI Finance Lease Over the lease period
consumption of future economic benefits
embodied in the asset is accounted for Any revaluation surplus is credited to the
by changing the amortisation period or revaluation reserve included in the equity
method, as appropriate, and treated VHFWLRQRIWKHEDODQFHVKHHWH[FHSWWR
as changing accounting estimates. The WKHH[WHQWWKDWLWUHYHUVHVDUHYDOXDWLRQ
DPRUWLVDWLRQH[SHQVHRQLQWDQJLEOH decrease of the same asset previously
assets with finite lives is recognised in recognised in profit or loss, in which case
WKHLQFRPHVWDWHPHQWVLQWKHH[SHQVH the increase is recognised in profit or
category consistent with the function of loss. A revaluation deficit is recognised in
the intangible assets. SURILWRUORVVH[FHSWWKDWDGHILFLWGLUHFWO\
offsetting a previous surplus on the same
2.4.7 Property, Plant and Equipment asset is directly offset against the surplus
Plant and equipment is stated at cost, in the asset revaluation reserve.
H[FOXGLQJWKHFRVWVRIGD\WRGD\
servicing, less accumulated depreciation Accumulated depreciation as at the
and accumulated impairment in value. revaluation date is eliminated against the
Such cost includes the cost of replacing gross carrying amount of the asset and
part of the plant and equipment when that the net amount is restated to the revalued
cost is incurred, if the recognition criteria amount of the asset. Upon disposal,
are met. any revaluation reserve relating to the
particular asset being sold is transferred
Land and buildings are measured at fair to retained earnings.
value less depreciation on buildings and
56 | Annual Report 2009/2010
QRWHVWRWKHILQDQFLDOVWDWHPHQWVFRQWG
:KHQHDFKPDMRULQVSHFWLRQLV
performed, its cost is recognised in
the carrying amount of the plant and
equipment as a replacement if the
recognition criteria are satisfied.
An item of property, plant and equipment
is derecognised upon disposal or when
QRIXWXUHHFRQRPLFEHQHILWVDUHH[SHFWHG
from its use or disposal. Any gain or loss
arising on derecognition of the asset
(calculated as the difference between the
net disposal proceeds and the carrying
amount of the asset) is included in the
income statement in the year the asset is
derecognised.
7KHDVVHW¶VUHVLGXDOYDOXHVXVHIXO
lives and methods of depreciation are
UHYLHZHGDQGDGMXVWHGLIDSSURSULDWHDW
each financial year end.
2.4.8 Lease
a) Finance Leases – where the Company
is the Lessee
Property, plant and equipment on finance
leases, which effectively transfer to the
Company substantially all of the risk
and benefits incidental to ownership of
the leased item are capitalised at their
fair value or if lower, at the present
value of the minimum lease payments
and disclosed as property, plant and
equipment and depreciated over the
SHULRGWKH&RPSDQ\LVH[SHFWHGWR
benefit from the use of the leased assets.
The corresponding principal amount
payable to the lessor together with the
interest payable over the period of
the lease is shown as a liability. Lease
payments are apportioned between the
finance charges and reduction of the
lease liability so as to achieve a constant
rate of interest on the remaining balance
of the liability. Finance charges that are
charged, are reflected in the Income
Statement.
2.4.9 Investments
a) Long Term Investments
Long term investments are stated at cost.
The cost of the investment is the cost of
acquisition inclusive of brokerage fees,
duties and bank fees.
The carrying amount of long term
investments is reduced to recognise
a decline other than temporary in the
value of investments, determined on an
individual investment basis.
2.4.10 Investment Properties
Investment properties are measured
initially at cost, including transaction
costs. The carrying amount includes
WKHFRVWRIUHSODFLQJSDUWRIDQH[LVWLQJ
investment property at the time that cost
is incurred if the recognition criteria are
PHWDQGH[FOXGHVWKHFRVWVRIGD\WRGD\
servicing of an investment property.
Investment properties are derecognised
when either they have been disposed
of or when the investment property is
permanently withdrawn from use and no
IXWXUHHFRQRPLFEHQHILWLVH[SHFWHGIURP
its disposal. Any gains or losses on the
retirement or disposal of an investment
property are recognised in the income
statement in the year of retirement or
disposal.
Transfers are made to investment
property when, and only when, there is
a change in use, evidenced by the end
of owner occupation, commencement
of an operating lease to another
party or completion of construction or
development. Transfers are made from
investment property when, and only
when, there is a change in use, evidenced
by commencement of owner occupation
or commencement of development with a
view to sale.
For a transfer from investment property to
owner occupied property or inventories,
the deemed cost of property for
subsequent accounting is its fair value
at the date of change in use. If the
property occupied by the Group as an
owner occupied property becomes an
investment property, the Group accounts
for such property in accordance with
the policy stated under property, plant
and equipment up to the date of change
in use. For a transfer from inventories
to investment property, any difference
between the fair value of the property
at that date and its previous carrying
amount is recognised in the income
statement. When the Group completes
the construction or development of a
self constructed investment property, any
difference between the fair value of the
property at that date and its previous
carrying amount is recognised in the
income statement.
2.4.11 Impairment of Non Financial
Assets
The Group assesses at each reporting
date whether there is an indication
that an asset may be impaired. If any
VXFKLQGLFDWLRQH[LVWVRUZKHQDQQXDO
impairment testing for an asset is
required, the Group makes an estimate of
WKHDVVHW¶VUHFRYHUDEOHDPRXQW$QDVVHW¶V
recoverable amount is the higher of an
DVVHW¶VRUFDVKJHQHUDWLQJXQLW¶VIDLUYDOXH
less costs to sell and its value in use and is
determined for an individual asset, unless
the asset does not generate cash inflows
that are largely independent of those from
other assets or groups of assets. Where
WKHFDUU\LQJDPRXQWRIDQDVVHWH[FHHGV
its recoverable amount, the asset is
considered impaired and is written down
to its recoverable amount. In assessing
value in use, the estimated future cash
flows are discounted to their present value
XVLQJDSUHWD[GLVFRXQWUDWHWKDWUHIOHFWV
current market assessments of the time

value of money and the risks specific to
the asset. In determining fair value less
costs to sell, an appropriate valuation
model is used. These calculations are
corroborated by valuation multiples or
other available fair value indicators.
2.4.12 Provisions
Provisions are recognised when the
company has a present obligation (legal
or constructive) as a result of a past event,
where it is probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation
and a reliable estimate can be made of
the amount of the obligation. If the effect
of the time value of money is material,
provisions are determined by discounting
WKHH[SHFWHGIXWXUHFDVKIORZVDWD
SUHWD[UDWHWKDWUHIOHFWVFXUUHQWPDUNHW
assessments of the time value of money
and, where appropriate, the risks specific
to the liability.
2.4.13 Retirement Benefit Obligations
a) Defined Benefit Plan – Gratuity
Gratuity is a Defined Benefit Plan. The
Group is liable to pay gratuity in terms of
the relevant statute. In order to meet this
liability, a provision is carried forward in
the balance sheet, computed based on
*UDWXLW\)RUPXODLQ$SSHQGL[(RI6/$6
16 (Revised 2006), this formula measures
WKHOLDELOLW\XVLQJWKH3URMHFWHG8QLW
Credit Method.
The gratuity liability is not funded nor
actuarially valued. This item is grouped
under Other Deferred Liabilities in the
Balance Sheet.
b) Defined Contribution Plans –
Employees’ Provident Fund &
Employees’ Trust Fund
(PSOR\HHVDUHHOLJLEOHIRU(PSOR\HHV¶
Provident Fund Contributions and
(PSOR\HHV¶7UXVW)XQG&RQWULEXWLRQV
in line with the respective statutes and
regulations. The Company contributes
12% and 3% of gross emoluments of
HPSOR\HHVWR(PSOR\HHV¶3URYLGHQW)XQG
DQG(PSOR\HHV¶7UXVW)XQGUHVSHFWLYHO\
2.4.14 Revenue Recognition
5HYHQXHLVUHFRJQLVHGWRWKHH[WHQWWKDW
it is probable that the economic benefits
will flow to the Company and the revenue
and associated costs incurred or to be
incurred can be reliably measured.
Revenue is measured at the fair value of
the consideration received or receivable
QHWRIWUDGHGLVFRXQWVDQGVDOHVWD[HV7KH
following specific criteria are used for the
purpose of recognition of revenue.
a) Sale of Goods
Revenue from sale of goods is recognised
when the significant risks and rewards of
ownership of the goods have passed to
the buyer; with the Company retaining
neither continuing managerial involvement
to the degree usually associated with
ownership, nor effective control over the
goods sold.
b) Interest
Interest Income is recognised as the
interest accrued (taking into account
the effective yield on the asset) unless
collectability is in doubt.
c) Dividends
Dividend Income is recognised when the
VKDUHKROGHUV¶ULJKWWRUHFHLYHWKHSD\PHQW
is established.
d) Rental income
Rental income is recognised on an accrual
basis.
e) Others
Other income is recognised on an accrual
basis.
Net Gains and losses of a revenue
nature on the disposal of property, plant
Annual Report 2009/2010 | 57
& equipment and other non current
assets including investments have been
accounted for in the income statement,
having deducted from proceeds on
disposal, the carrying amount of the
DVVHWVDQGUHODWHGVHOOLQJH[SHQVHV
Gains and losses arising from incidental
activities to main revenue generating
activities and those arising from a group
of similar transactions which are not
material, are aggregated, reported and
presented on a net basis.
2.4.15 Expenditure Recognition
([SHQVHVDUHUHFRJQLVHGLQWKHLQFRPH
statement on the basis of a direct
association between the cost incurred and
the earning of specific items of income.
$OOH[SHQGLWXUHLQFXUUHGLQWKHUXQQLQJ
of the business and in maintaining the
property, plant & equipment in a state of
efficiency has been charged to income in
arriving at the profit for the year.
For the purpose of presentation of the
Income Statement the Directors are of
WKHRSLQLRQWKDWWKHIXQFWLRQRIH[SHQVHV
method presents fairly the elements of the
&RPSDQ\¶VSHUIRUPDQFHDQGKHQFHVXFK
presentation method is adopted.
58 | Annual Report 2009/2010

QRWHVWRWKHILQDQFLDOVWDWHPHQWVFRQWG
 785129(5

 &RPSDQ\ *URXS
Year ended 31 March 2010 2009 2010 2009
Rs. Rs. Rs. Rs.

Summary
Sales - Local 2,435,166,433 1,950,633,573 2,438,777,109 1,950,633,573
([SRUWV 2,181,120 19,673,082 2,181,120 19,673,082
2,437,347,553 1,970,306,654 2,440,958,228 1,970,306,654
/HVV7XUQRYHUWD[ (24,177,466) (19,591,391) (24,177,466) (19,591,391)
2,413,170,087 1,950,715,263 2,416,780,762 1,950,715,263

 3523(57<3/$17 (48,30(17
 &RPSDQ\
4.1.1 Gross Carrying Amounts

 $GGLWLRQV
Balance Acquisitions/ Revaluations Disposals/ Balance
As at Transfers Transfers As at
01-04-2009 31-03-2010
At Cost Rs. Rs. Rs. Rs. Rs.

Land 538,597,854 - - (538,597,854) -

Landscaping 884,560 - - - 884,560
Building 65,509,375 400,000 - (65,509,375) 400,000
Building - Lease Hold 13,982,104 26,696,340 - - 40,678,444
Office Equipment 63,697,874 39,949,993 - - 103,647,867
)L[WXUHV2WKHU     74,151,511
)L[WXUHV$LU&RQGLWLRQV     12,915,663
Furniture 19,249,149 22,916,200 - - 42,165,349
Computer Equipment 38,732,367 2,357,900 - (101,900) 40,988,367
Office Equipment - Other 5,431,661 - - - 5,431,661
6KRS)LWWLQJV)L[WXUHV     92,840,775
Shop Fittings - Mobiles 22,574,601 882,798 - - 23,457,399
Motor Vehicles 22,843,951 255,446 - (4,814,409) 18,284,988
Motor Vehicles - Finance Lease - 4,718,750 - - 4,718,750
936,782,266 132,806,607 - (609,023,538) 460,565,335

$W9DOXDWLRQ
Land - 531,346,801 414,772,199 - 946,119,000
Building - 65,509,375 31,640,625 - 97,150,000
- 596,856,176 446,412,824 - 1,043,269,000
 Annual Report 2009/2010 | 59

 3523(57<3/$17 (48,30(17&217'
4.1.2 In the course of construction

Balance as at Incurred During Reclassified/ Disposal/ Balance as at

01-04-2009 the year Transferred Written off 31-03-2010
Rs. Rs. Rs. Rs. Rs.

Capital Work In Progress - 127,106,370 (109,806,286) - 17,300,084

Total Gross Carrying Amount - 127,106,370 (109,806,286) - 17,300,084
7RWDO 936,782,266 856,768,153 336,606,538 (609,023,538) 1,521,134,420

4.1.3 Depreciation

Balance Additions Charge for Disposals/ Balance

As at /Transfers the year/ Transfers As at
At Cost 01-04-2009 /Acquisitions Transfers 31-03-2010
Rs. Rs. Rs. Rs. Rs.

Landscaping 884,560 - - - 884,560

Building 10,417,194 - 825,534 (11,236,061) 6,666
Building - Lease Hold 2,032,379 - 4,270,458 - 6,302,838
Office Equipment 32,418,466 - 7,576,642 - 39,995,108
)L[WXUHV2WKHU     41,327,089
)L[WXUHV$LU&RQGLWLRQV     10,800,739
Furniture 7,615,079 - 2,685,703 - 10,300,782
Computer Equipment 30,381,603 - 4,328,947 (94,053) 34,616,497
Office Equipment - Other 1,103,513 - 271,853 - 1,375,365
6KRS)LWWLQJV)L[WXUHV     32,447,324
Shop Fittings - Mobiles 9,972,184 - 2,250,909 - 12,223,094
Motor Vehicles 20,223,678 - 725,262 (3,174,891) 17,774,049
Motor Vehicles - Lease - - 78,646 - 78,646
184,850,167 - 37,787,594 (14,505,005) 208,132,756

$W9DOXDWLRQ
Land - - - - -
Building - - 1,617,549 - 1,617,549
- - 1,617,549 - 1,617,549
7RWDO 184,850,167 - 39,405,142 (14,505,005) 209,750,304
60 | Annual Report 2009/2010

QRWHVWRWKHILQDQFLDOVWDWHPHQWVFRQWG
4.1.4 Net Book Value

As at As at
31-03-2010 31-03-2009
At Cost Rs. Rs

Land - 538,597,854
Landscaping - -
Building 393,334 55,092,182
Building - Lease Hold 34,375,606 11,949,725
Office Equipment 63,652,760 31,279,409
)L[WXUHV2WKHU   32,824,422 40,239,550
)L[WXUHV$LU&RQGLWLRQV   2,114,924 2,532,331
Furniture 31,864,568 11,634,071
Computer Equipment 6,371,870 8,350,764
Office Equipment- Other 4,056,296 4,328,148
6KRS)LWWLQJV)L[WXUHV    60,393,452 32,705,377
Shop Fittings - Mobiles 11,234,305 12,602,417
Motor Vehicles 510,939 2,620,273
Motor Vehicles - Lease 4,640,104 -
252,432,580 751,932,099

$W9DOXDWLRQ
Land 946,119,000 -
Building 95,532,451 -
1,041,651,451 -

4.1.5 Capital Work In Progress 17,300,084 -

7RWDO 1,311,384,115 751,932,099

4.1.6 The fair value of land and buildings was (last) determined by means of a revaluation during the year ended 31, March 2010
by Messrs.A.Y.Daniel & Sons an independent valuer in reference to market based evidence. The results of such revaluation
were incorporated in these Financial Statements from its effective date which is 1, October 2009. The surplus arising from the
revaluation was transferred to a revaluation reserve.The carrying amount of revalued assets that would have been included in
the financial statements had the assets been carried at cost less depreciation is as follows:

Cumulative
Depreciation Net Carrying Net Carrying
If assets were Amount Amount
Cost carried at cost 31-03-2010 31-03-2009
Class of Asset Rs. Rs. Rs. Rs.

Building 65,509,375 12,054,928 53,454,447 55,092,181

4.1.7 During the financial year, the Company acquired Property, Plant & Equipment to the aggregate value of Rs.132,806,607/=,
(2009 Rs.33,336,724/=) of which Rs. 4,718,756/=(2009 Rs. Nil) was acquired by means of finance leases. Cash payments
amounting to Rs. 128,087,857/= (2009 Rs. 33,336,724/=) were made during the year for purchase of Property, Plant &
Equipment.
 Annual Report 2009/2010 | 61

 3523(57<3/$17 (48,30(17&217'
4.1.8 Property, Plant & Equipment includes fully depreciated assets having a gross carrying amount of Rs. 68,989,063 /-
(2009- Rs. 48,241,156 /-).

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4.2.1 Gross Carrying Amounts

 $GGLWLRQV
Balance Acquisitions/ Revaluations Disposals/ Balance
As at Transfers Transfers As at
01-04-2009 31-03-2010
At Cost Rs. Rs. Rs. Rs. Rs.

Land 586,491,420 - - (586,491,420) -

Landscaping 884,560 - - - 884,560
Building 129,934,809 - - (129,934,809) -
Building - Lease Hold 13,982,104 29,363,614 - - 43,345,718
Office Equipment 63,697,874 40,125,173 - - 103,823,047
)L[WXUHV2WKHU     83,026,181
)L[WXUHV$LU&RQGLWLRQV     12,915,663
Furniture 27,024,297 23,280,511 - - 50,304,808
Computer Equipment 45,140,676 10,381,876 - (101,900) 55,420,652
Office Equipment - Other 7,252,532 1,616,328 - - 8,868,860
6KRS)LWWLQJV)L[WXUHV     97,740,322
Shop Fittings - Mobiles 22,574,601 882,798 - - 23,457,399
Motor Vehicles 22,843,951 2,007,653 - (4,814,409) 20,037,195
Motor Vehicles -Lease - 4,718,750 - - 4,718,750
1,065,105,594 160,780,100 - (721,342,538) 504,543,156

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Land - 579,240,367 480,378,634 - 1,059,619,001
Building - 130,334,809 88,215,191 - 218,550,000
- 709,575,176 568,593,825 - 1,278,169,001

4.2.2 In the course of construction

Balance as at Incurred During Reclassified/ Disposal/ Balance as at

01-04-2009 the year Transferred Written off 31-03-2010
Rs. Rs. Rs. Rs. Rs.

Building work in progress 36,890,824 - - (36,890,824) -

Capital Work In Progress - 127,106,370 (109,806,286) - 17,300,084
7RWDO*URVV&DUU\LQJ$PRXQW 36,890,824 127,106,370 (109,806,286) (36,890,824) 17,300,084
7RWDO 1,101,996,418 997,461,646 458,787,539 (758,233,362) 1,800,012,241
62 | Annual Report 2009/2010

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4.2.3 Depreciation

Balance Additions Charge for Disposals/ Balance

As at /Transfers the year/ Transfers As at
At Cost 01-04-2009 /Acquisitions Transfers 31-03-2010
Rs. Rs. Rs. Rs. Rs.

Landscaping 884,560 - - - 884,560

Building 20,081,010 - 1,624,185 (21,705,195) -
Building - Lease Hold 2,032,379 385,754 4,603,867 - 7,022,001
Office Equipment 32,418,466 5,418 7,585,677 - 40,009,560
)L[WXUHV2WKHU     42,805,285
)L[WXUHV$LU&RQGLWLRQV     10,800,739
Furniture 11,185,336 75,250 3,529,658 - 14,790,245
Computer Equipment 31,367,607 - 6,231,428 (94,053) 37,504,982
Office Equipment - Other 1,387,684 57,439 756,381 - 2,201,503
6KRS)LWWLQJV)L[WXUHV     32,957,532
Shop Fittings - Mobiles 9,972,184 - 2,250,909 - 12,223,094
Motor Vehicles 20,223,678 1,576,986 900,479 (3,174,891) 19,526,256
Motor Vehicles - Lease - - 78,646 - 78,646
199,354,416 3,335,853 43,088,271 (24,974,139) 220,804,401

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Land - - - - -
Building - - 3,430,185 - 3,430,185
- - 3,430,185 - 3,430,185
7RWDO 199,354,416 3,335,853 46,518,455 (24,974,139) 224,234,585

4.2.4 Net Book Value

As at As at
31-03-2010 31-03-2009
At Cost Rs. Rs

Land - 586,491,420
Landscaping - -
Building - 109,853,799
Building - Lease Hold 36,323,717 11,949,725
Office Equipment 63,813,488 31,279,408
)L[WXUHV2WKHU    40,220,896 40,239,549
)L[WXUHV$LU&RQGLWLRQV    2,114,924 2,532,331
Furniture 35,514,564 15,838,961
Computer Equipment 17,915,670 13,773,069
Office Equipment - Other 6,667,357 5,864,848
6KRS)LWWLQJV)L[WXUHV    64,782,791 32,705,378
Shop Fittings - Mobiles 11,234,305 12,602,417
Motor Vehicles 510,939 2,620,273
Motor Vehicles - Lease 4,640,104 -
283,738,755 865,751,178

Land 1,059,619,001 -
Building 215,119,815 -
1,274,738,816 -
 Annual Report 2009/2010 | 63

As at As at
31-03-2010 31-03-2009
At Cost Rs. Rs

4.2.5 Capital Work In Progress 17,300,084 36,890,824

7RWDO 1,575,777,656 902,642,002

4.2.6 The fair value of land and buildings was (last) determined by means of a revaluation during the period ended 31, October
2009 by Messrs. A. Y. Daniel & Sons an independent valuer in reference to market based evidence. The results of such
revaluation were incorporated in these Financial Statements from its effective date which is 1, October 2009. The surplus
arising from the revaluation was transferred to a revaluation reserve. The carrying amount of revalued assets that would have
been included in the financial statements had the assets been carried at cost less depreciation is as follows:

Cumulative
Depreciation Net Carrying Net Carrying
If assets were Amount Amount
Cost carried at cost 31-03-2010 31-03-2009
Class of Asset Rs. Rs. Rs. Rs.

Building 129,934,809 23,329,380 106,605,430 109,583,800

4.2.7 During the financial year, the Company acquired Property, Plant & Equipment to the aggregate value of Rs.160,780,100/-,
(2009 Rs.38,139,577/-) of which Rs. 4,718,756/- (2009 Rs. Nil) was acquired by means of finance leases and
Rs.17,932,360/- was acquired through new subsidiaries. Cash payments amounting to Rs. 137,911,685/- (2009 Rs.
43,028,327/-) were made during the year for purchase of Property, Plant & Equipment.

 ,17$1*,%/($66(76
Computer Software

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As of 31, March 2010 2009 2010 2009

$W$SULO 7,234,490 6,515,635 28,766,119 26,586,215

$GGLWLRQV6XEVHTXHQW([SHQGLWXUH  911,373 718,855 2,197,727 2,179,903
Transferred from under development - - 110,000 -
Impairment during the year - - - -
Disposals/Transfers - - - -
8,145,862 7,234,490 31,073,845 28,766,118

$PRUWLVDWLRQ
Cumulative amortisation as at 1st April 4,589,048 3,694,390 10,952,420 4,948,802
Amortised during the year 1,046,793 894,658 6,592,520 6,003,617
Acquired through new subsidiaries - - 2,292 -
Cumulative amortisation as at 31, March 5,635,841 4,589,048 17,547,231 10,952,419
Balance as at 31, March 2,510,021 2,645,442 13,526,614 17,813,699
64 | Annual Report 2009/2010

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5.1 During the period, the Company acquired Intangible assets to the aggregate value of Rs.911,373/- (2009 Rs.718,855/-).Cash
payments amounting to Rs. 911,373/- (2009 Rs.711,855/-) were made during the period for purchase of Intangible Assets.

During the period, the Group acquired Intangible assets to the aggregate value of Rs.2,197,727/- (2009 - Rs.2,179,903/-).
Cash payments amounting to Rs. 2,197,727/- (2009 - Rs.2,179,903/-) were made during the period for purchase of Intangible
Assets.

 ,19(670(17,168%6,',$5,(6

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

Odel Properties (Pvt) Ltd. 100% 108,100,000 108,100,000 - -

Odel Information Technology
Services (Pvt) Ltd 100% 10 10 - -
Odel Lanka (Pvt) Ltd 100% 20 10 - -
Otone (Pvt) Ltd. 100% 10,000,000 - - -
Odel Apparels (Pvt) Ltd 100% 1,000 - - -
118,101,030 108,100,020 - -

 ,19(1725,(6

2010 2009 2010 2009

Rs Rs Rs Rs

Finished Goods 642,205,126 403,796,892 650,802,228 403,796,892

Goods In Transit 2,965,607 5,091,695 2,965,607 5,091,695
645,170,733 408,888,587 653,767,834 408,888,587

 75$'($1'27+(55(&(,9$%/(6

2010 2009 2010 2009

Trade Debtors 9,506,045 11,650,444 10,352,978 14,306,142

Other Debtors (Note 8.1) 19,472,948 29,100,219 21,140,701 29,100,419
Deposits & Prepayments 47,121,218 37,205,550 49,017,223 37,205,550
76,100,211 77,956,213 80,510,902 80,612,111
 Annual Report 2009/2010 | 65

2010 2009 2010 2009

 2WKHU'HEWRUV
Other debtors 19,087,958 26,785,219 20,755,711 26,785,419
Loans to key management personnel 384,990 2,315,000 384,990 2,315,000
19,472,948 29,100,219 21,140,701 29,100,419

8.1.1 Movement of the loan to key management personnel has been disclosed in the note 26.1 (b) to the Financial Statements

 $028176'8()5205(/$7('3$57,(6
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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

Odel Properties (Pvt) Ltd. 5,607,246 32,923,698 - -

Odel Apparels (Pvt) Ltd 46,844,438 28,861,725 - 29,191,725
Odel Lanka (Pvt) Ltd 45,240,518 42,219,231 - -
Odel IT Services (Pvt) Ltd 19,090,478 39,126,624 - -
Otone (Pvt) Ltd 4,313,379 - - -
121,096,059 143,131,278 - 29,191,725
Less: Provision for doubtful debt - Odel Lanka (Pvt) Ltd (45,183,055) - - -
75,913,004 143,131,278 - 29,191,725

 $PRXQWVGXHIURPRWKHUUHODWHGFRPSDQLHV
Backstage Retail (India) Pvt Ltd - 1,066,937 - 1,066,937
Backstage (Pvt) Ltd - 67,650 - 67,650
- 1,134,587 - 1,134,588
75,913,004 144,265,865 - 30,326,313

 121&855(17$66(7&/$66,),('$6+(/')256$/(

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

Investment in Backstage Retail (Singapore) Pvt Ltd - 38,072,097 - 38,072,097

Investment in 500,000 Equity shares in Backstage Retail (Singapore) Private Ltd. Company which was a fully owned subsidiary of
Odel Ltd has been sold during the year and recognised a gain of Rs. 2,406,678/- on this transaction.
66 | Annual Report 2009/2010

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 67$7('&$3,7$/

  
Number Rs. Number Rs.

Fully Paid Ordinary Shares 128,250,000 1,425,000 142,500 1,425,000

128,250,000 1,425,000 142,500 1,425,000

 ,17(5(67%($5,1*/2$16$1'/,$%,/,7,(6&RPSDQ\*URXS

2010 2010 2009 2009

Repayable Repayable 2010 Repayable Repayable 2009
within 1 year after 1 year Total within 1 year after 1 year Total
Rs. Rs. Rs. Rs. Rs. Rs.

Bank Loan (12.1) 129,652,636 138,947,354 268,599,990 79,904,827 113,349,904 193,254,731

Lease Creditors (12.2) 719,233 3,835,268 4,554,501 - - -
Bank Overdrafts (16.2) 293,095,353 - 293,095,353 298,831,112 - 298,831,112
423,467,222 142,782,622 566,249,844 378,735,939 113,349,904 492,085,843

 %DQN/RDQV

As at As at
01-04-2009 Obtained Repayment 31-03-2010
Rs. Rs. Rs. Rs.

Short term working capital loans 6,381,115 58,600,000 (6,381,115) 58,600,000

0HGLXPWHUPSURMHFWVORDQV     209,999,990
193,254,731 158,600,000 (83,254,741) 268,599,990

 ,17(5(67%($5,1*/2$16$1'/,$%,/,7,(6&RPSDQ\*URXS
12.1.1 Terms of the Loan
0HGLXP7HUP/RDQ
Principal Loan Amount
Security
0HGLXP7HUP/RDQ
Principal Loan Amount
Security
6KRUW7HUP:RUNLQJ&DSLWDO/RDQV
Principal Loan Amount
Security

Rs. 400 Mn
Primary mortgage over the property situated at lot A, bearing assessment
No 15 situated at Cinnamon Gardens, Colombo 07.
Rs. 200 Mn (As of 31 March 2010, bank disbursed Rs. 100 Mn only)
Primary mortgage over the property situated at lot A, bearing assessment
No 15 situated at Cinnamon Gardens, Colombo 07.
Rs. 58.6 Mn
Primary mortgage over the property situated at lot A, bearing assessment
No 15 situated at Cinnamon Gardens, Colombo 07.
 Annual Report 2009/2010 | 67

 /RQJWHUPÀQDQFHOHDVHFRPPLWPHQWV&RPSDQ\*URXS

2010 2010 2010 2009 2009 2009

Repayable Repayable Total Repayable Repayable Total
within 1 year 1 < 5 Year within 1 year 1 < 5 Year
Rs. Rs. Rs. Rs. Rs. Rs.

Future minimum lease payments 1,330,476 4,989,285 6,319,761 - - -

Finance cost
allocated to future period (611,243) (1,154,017) (1,765,260) - - -
Net Liability 719,233 3,835,268 4,554,501 - - -

There are no installments to be paid after five years

 27+(5'()(55('/,$%,/,7,(6

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Defined Benefit Plan Cost - Gratuity 2010 2009 2010 2009

Defined benefit obligation as at the

beginning of the year 20,282,393 14,724,545 21,339,534 15,819,834
Balance transferred from new subsidiaries - - 1,264,747 -
Transitional effect - 3,402,277 - 3,347,312
Interest cost 4,193,999 1,993,950 4,436,702 2,108,386
Charge for the year 8,831,203 3,729,899 9,091,527 3,928,846
Payments made during the year (1,739,182) (1,427,323) (2,294,527) (1,427,323)
Actuarial Loss/ (Gain) on obligation (2,206,745) (2,140,956) (2,294,527) (2,437,523)
Defined benefit obligation as at the end of the year 29,361,667 20,282,393 31,731,182 21,339,533

3ULQFLSDODVVXPSWLRQV
The principal financial assumptions underlying the valuation are as follows.

2010 2009

Discount rate 11% 11%

Salary Increment rate 10% 10%
Staff Turnover 35% 35%
Retirement Age 55 Years 55 Years
68 | Annual Report 2009/2010

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

Trade payables 350,628,722 212,527,268 358,607,022 214,501,462

6XQGU\FUHGLWRUVLQFOXGLQJDFFUXHGH[SHQVHV  119,336,389 98,972,772 123,556,952 101,057,923
Odel Foundation Trust 1,154,042 1,161,692 1,154,042 1,161,692
471,119,153 312,661,732 483,318,016 316,721,017

 $028176'8(725(/$7('3$57,(6

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

$PRXQWVGXHWR6XEVLGLDU\&RPSDQLHV
Odel Properties (Pvt) Ltd 48,562,553 60,972,341 - -
Odel Information Technology Services (Pvt) Ltd 37,514,720 46,111,064 - -
Otone (Pvt) Ltd 1,210,001 - - -
Odel Apparels (Pvt) Ltd 45,241,760 22,149,802 - 22,149,802
132,529,034 129,233,206 - 22,149,802

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

 )DYRXUDEOH&DVK 
 &DVK(TXLYDOHQWV%DODQFH
Cash & Bank Balances 23,092,215 20,725,041 24,981,992 21,179,268
23,092,215 20,725,041 24,981,992 21,179,268

 8QIDYRXUDEOH&DVK &DVK

 (TXLYDOHQW%DODQFHV
Bank Overdraft (293,095,353) (298,831,112) (293,095,353) (298,831,112)
(270,003,138) (278,106,071) (268,113,361) (277,651,844)
 Annual Report 2009/2010 | 69

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

Rental Income 66,536,057 62,085,102 66,536,057 62,085,102

Interest Income 883,981 1,262,251 883,981 1,262,251
Profit on Disposal of Property, Plant & Equipment 75,594,553 557,676 75,594,553 557,676
Dividend Income 3,149,994 12,600,000 - -
Advertising Income 2,761,769 3,219,489 2,761,769 3,219,489
Commission Income 681,449 749,687 681,449 749,687
Sundry Income 3,328,745 1,276,682 3,328,745 1,276,682
Management Fee 666,979 - 666,979 -
([FKDQJH*DLQ 65,418 1,290,511 65,418 1,290,511
Unclaimed Creditors written back 18,547,621 - 18,617,203 -
([FKDQJH*DLQ/RVVRQGLVSRVDORI6KDUHV%6/ 2,406,678 - 2,440,672 -
174,623,243 83,041,398 171,576,826 70,441,398

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

,QWHUHVW([SHQVHRQ2YHUGUDIWV  40,523,337 47,795,639 40,523,337 47,795,889

,QWHUHVW([SHQVHVRQ/RDQV %RUURZLQJV 26,720,478 40,106,366 26,720,422 40,106,366
Bank Charges 4,846,874 4,326,483 4,879,221 4,353,306
Lease Interest 168,370 - 168,370 -
72,259,059 92,228,488 72,461,410 92,255,561
70 | Annual Report 2009/2010

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 352),7%()25(7$;

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

'LUHFWRUV¶(PROXPHQWV  16,800,000 8,750,000 16,800,000 8,750,000

Depreciation 37,787,594 35,189,549 46,518,455 38,790,769
Provision for doubtful debt 45,183,055 -
Amortisation of Intangible Assets 1,046,793 894,658 6,592,520 6,003,617
Personnel Cost Includes -
- Defined Benefit Plan Cost - Gratuity 10,818,457 3,582,893 11,871,722 3,722,561
- Defined Contribution Plan Cost - EPF & ETF 19,466,439 15,641,925 20,740,867 17,690,522
- Other Staff Cost 143,893,847 118,746,304 158,673,098 136,050,567
Transport Cost 30,969,404 42,223,029 30,969,404 42,223,029
Donations 8,089,911 4,166,332 8,089,911 4,166,332
Inventory Write off - 60,909,346 - 60,909,346
Advertising Cost 48,158,791 41,482,391 48,158,791 41,482,391

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

&XUUHQW,QFRPH7D[
&XUUHQW7D[([SHQVHRQ2UGLQDU\$FWLYLWLHVIRUWKH<HDU 73,702,437 36,033,453 78,707,243 39,146,140
8QGHURYHUSURYLVLRQRIFXUUHQWWD[HVLQ
respect of prior year (5,699,841) (4,626,633) (5,699,841) (4,626,633)
'HIHUUHG,QFRPH7D[
'HIHUUHG7D[DWLRQ&KDUJH5HYHUVDO  (1,988,966) (3,758,595) (2,385,733) (3,338,106)

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the Income Statement 66,013,630 27,648,225 70,621,670 31,181,401

67$7(0(172)&+$1*(6,1(48,7<
'HIHUUHG,QFRPH7D[5HODWHGWR,WHPV&KDUJHG&UHGLWHG
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Net Gain on Revaluation of Property, Plant & Equipment (15,006,840) - (15,006,840) -
'HIHUUHGWD[UHYHUVDOWUDQVIHUUHGWR5HYDOXDWLRQ5HVHUYH 243,595 - 243,595 -
,QFRPH7D[([SHQVHLQFRPH5HSRUWHGLQ(TXLW\  (14,763,245) - (14,763,245) -
 Annual Report 2009/2010 | 71

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

$FFRXQWLQJ3URILWEHIRUHWD[IURPFRQWLQXLQJRSHUDWLRQV 178,347,285 44,225,434 211,314,666 63,394,090

$WWKH6WDWXWRU\LQFRPHWD[UDWHRI  62,421,550 15,478,902 73,960,133 18,503,251

$GMXVWPHQWLQUHVSHFWWRFXUUHQWLQFRPHWD[RISUHYLRXV\HDU (5,699,841) (4,626,633) (5,699,841) (4,626,633)
7D[,PSOLFDWLRQRQ([SRUW6DOHV5HGXFH5DWH#  (42,445) - (42,445) -
$OORZDEOH([SHQVHV  (14,074,599) - (14,074,599) -
,QFRPH([HPSWIURP7D[  (27,869,985) (4,423,687) (27,869,985) (5,974,165)
1RQ'HGXFWLEOH([SHQVHV  52,986,655 36,008,984 52,986,655 36,247,799
(IIHFWRQ'LIIHUHG7D[  (1,988,966) (3,758,595) (1,988,966) (3,338,106)
Other 281,262 (11,030,744) (6,649,282) (9,630,745)
$WWKHHIIHFWLYHLQFRPHWD[UDWHRI 66,013,630 27,648,227 70,621,670 31,181,401
Company 37% (2009- 63%)
Group 33% (2009- 49%)
,QFRPH7D[([SHQVHUHSRUWHGLQWKH,QFRPH6WDWHPHQW  66,013,630 27,648,225 70,621,670 31,181,401

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Basic Earnings per share is calculated by dividing the net profit / (loss) for the year attributable to equity holders of parent by
the weighted average number of ordinary shares outstanding during the year. The weighted average number of ordinary shares
RXWVWDQGLQJGXULQJWKH\HDUDQGWKHSUHYLRXV\HDUDUHDGMXVWHGIRUHYHQWVWKDWKDYHFKDQJHGWKHQXPEHURIRUGLQDU\VKDUHV
outstanding, without a corresponding change in the resources due to share split that has been taken place on 4th November 2009.

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

Company
'HIHUUHG7D[/LDELOLW\
&DSLWDODOORZDQFHVIRUWD[SXUSRVHV  37,179,359 34,396,504 2,782,855 (1,813,349)
Revaluation of Property, Plant and Equipment 14,763,245 - - -
Amounts Charged Against Revaluation During the Period - - 2,782,855 (1,813,349)
51,942,605 34,396,504

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Defined Benefit Plan (11,870,659) (7,098,837) (4,771,822) (1,945,246)
(11,870,659) (7,098,837) -

'HIHUUHG,QFRPH7D[,QFRPH([SHQVH    (1,988,966) (3,758,595)

1HW'HIHUUHG7D[/LDELOLW\  40,071,946 27,297,667

72 | Annual Report 2009/2010

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2010 2009 2010 2009
Rs. Rs. Rs. Rs.

'HIHUUHG7D[/LDELOLW\
&DSLWDODOORZDQFHVIRUWD[SXUSRVHV  38,199,281 34,816,993 2,782,855 (1,813,349)
Revaluation of Property, Plant and Equipment 14,763,245 - - -
Amounts Charged Against Revaluation
During the Period 2,782,855 (1,813,349)
52,962,526 34,816,993

'HIHUUHG7D[$VVHWV
Defined Benefit Plans (12,267,425) (7,098,837) (5,168,588) (1,945,246)
(12,267,425) (7,098,837) - -

'HIHUUHG,QFRPH7D[,QFRPH([SHQVH    (2,385,733) (3,338,106)

1HW'HIHUUHG7D[/LDELOLW\  40,695,101 27,718,156

 $66(763/('*('&RPSDQ\*URXS

The following assets have been pledged as security for liabilities.

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 0RUWJDJH9DOXH 0RUWJDJH9DOXH
Nature of Asset Nature of Liability 2010 2009 2010 2009

Land and Building Primary Mortgage

- Union Bank -Overdraft/LC 100 Mn 60 Mn 60 Mn 60 Mn
Land Primary Mortgage
- DFCC Bank-Medium Term loan 640 Mn 450 Mn 400 Mn 450 Mn

Inventory Mortgage Over Stock in Trade

- Union Bank Loan - 20 Mn - 20 Mn
Mortgage Over Stock in Trade
- DFCC Vardhana - 40 Mn - 40 Mn
Mortgage Over Stock in Trade
- Sampath Bank - Overdraft 50 Mn 30 Mn 50 Mn 30 Mn
Mortgage Over Stock in Trade
- HNB - Overdraft & LC 275 Mn 45 Mn 275 Mn 45 Mn

 (9(1762&&855,1*$)7(57+(%$/$1&(6+((7'$7(
7KHUHKDYHEHHQQRPDWHULDOHYHQWVRFFXUULQJDIWHUWKHEDODQFHVKHHWGDWHWKDWUHTXLUHDGMXVWPHQWVWRRUGLVFORVXUHLQWKH)LQDQFLDO
Statements.
 Annual Report 2009/2010 | 73

 &$3,7$/&200,70(176$1'&217,1*(17/,$%,/,7,(6
There were no significant capital commitments and contingent liabilities as of the Balance Sheet date.

 75$16$&7,21:,7+7+(5(/$7('(17,7,(6

  &RPSDQ\
2010 2009

6XEVLGLDULHV
Rent Paid Odel Properties (Pvt) Ltd 25,842,600 25,889,050
Service Charge Odel Information Services (Pvt) Ltd 40,855,100 39,258,200
Dividend Income Odel Properties (Pvt) Ltd 3,149,994 12,600,000
Settlement of Liabilities - 21,225,772
Receivable recovered, Net 18,739,392 -
Goods purchased 51,881,802 20,478,378

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Receivable Recovered, Net 4,612,672 -
Settlement of Liabilities, Net - 17,352,195

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Outstanding balances at the year end are unsecured, interest free and settlement occurs in cash.

 7UDQVDFWLRQVZLWK.H\0DQDJHPHQW3HUVRQQHORIWKH&RPSDQ\
7KH.H\0DQDJHPHQW3HUVRQQHORIWKH&RPSDQ\DUHWKHPHPEHUVRILWV%RDUGRI'LUHFWRUV7UDQVDFWLRQVZLWKFORVHIDPLO\PHPEHUVRI
.H\0DQDJHPHQW3HUVRQQHODUHDOVRWDNHQLQWRDFFRXQWLQWKHWUDQVDFWLRQVZLWK.H\0DQDJHPHQW3HUVRQQHO

a) Key Management Personnel Compensation

2010 2009
Rs. Rs.

Short-term employee benefits 16,800,000 8,750,000

16,800,000 8,750,000

b) Other Transactions with Key Management Personnel

/RDQVIURPWR.H\0DQDJHPHQW3HUVRQQHO
$VDW$SULO 2,315,000 5,000,000
Loans advanced during the year - -
Loans granted - 3,815,000
Loans recovered (1,930,010) (6,500,000)
$VDW0DUFK 384,990 2,315,000

c) Other Transactions
5HQWRI3UHPLVHVRZQHGE\.H\0DQDJHPHQW3HUVRQQHO   614,327 700,000
74 | Annual Report 2009/2010

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 &203$5$7,9(,1)250$7,21
The presentation and classification of following items in these Financial Statements are amended to ensure comparability with the
current year.

Company Group
2009 2009
Rs Rs

$V5HSRUWHG3UHYLRXVO\
%DODQFH6KHHW
Trade and Other Payables 27.1 334,811,534 -
Amount Due to Related Parties 27.1 107,083,405 -
Retained Earnings 27.2 - 628,889,360
Amount Due from related Parties 27.3 154,372,331 40,432,977
Trade and Other Receivables 27.3 67,849,748 -

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$GPLQLVWUDWLRQ([SHQVHV     
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%DODQFH6KHHW
Trade and Other Payables 27.1 312,661,732 -
Amount Due to Related Parties 27.1 129,233,206 -
Retained Earnings 27.2 - 628,857,360
Amount Due from related Parties 27.3 144,265,865 30,326,313
Trade and Other Receivables 27.3 77,956,213 -
$GPLQLVWUDWLRQ([SHQVHV     
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 Sum payable to Odel Apparels (Pvt) Ltd amounting to Rs 22,149,802/- included under Trade payables has been reclassified
as amount due to related parties

 65/FRPSRQHQWRI5VZKLFKKDVQRWEHHQDGMXVWHGLQFRQVROLGDWHGDFFRXQWUHFWLILHG

 Staff Loan to key management personal has been reclassified under other debtors.

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related parties as reported in the previous year amounting to Rs. 7,791,467/- would no longer be a Related Party. Hence,
the comparative classification and presentation of Amounts due from Related Parties were amended to conform to current
presentation which is Trade and Other Receivables.

 6XPRI5VUHODWLQJWREDGGHEWVZULWWHQRIISUHYLRXVO\FODVVLILHGDVDGPLQLVWUDWLRQH[SHQVHVKDYHEHHQ
reclassified as Selling and Distribution.
 Annual Report 2009/2010 | 75

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76 | Annual Report 2009/2010

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3URGXFHGE\&RS\OLQH3YW/WG3ULQWHGE\*XQDUDWQH2IIVHW/WG
 Odel Limited
No. 475/32, Kotte Rd
Rajagiriya,
Sri Lanka.