Documentos de Académico
Documentos de Profesional
Documentos de Cultura
05 President’s Message
06 113th AGM Agenda
07 112th AGM Minutes
09 Annual Report 2017
18 Auditor’s Report
19 Balance Sheet
20 Income & Expenditure Statement
21 Notes to Accounts
A N N U A L R E P O R T 2 0 1 7 / 18 3
4 ANNUAL REPORT 2017/18
PRESIDENT’S MESSAGE
It gives me great pleasure to forward this ities, we indulge in several road safety projects. Under
message on behalf of the Executive Committee of the the Decade of Action 2011-2020, we have carried out
Automobile Association of Ceylon. various awareness projects from inception.
This year, under review, had been a very Our motto is “Partner in Motoring”. During this year
successful financial and eventful period. We under review, with the assistance of the FIA and the
recorded an income of Rs.92.6 million against an FIA Foundation, we received grant from FIA to conduct
expenditure of Rs.80 milion for the year 2017 the Project M known as “Don’t Hit & Run”. Under this
and earned a net income over expenditure of project we conducted several awareness seminars,
Rs.10.6 million as surplus after taxation. Surplus was workshops and demonstrations in many parts of the
not our goal. Instead we focus mainly on operating island including the Metro City Colombo, to educate
efficiently in several cost centres which mostly the driving school instructors so that they will
has not given the desired results earlier. in turn train the prospective drivers about good road
Membership sustainability and growth, etiquette and road safety.
revenue from Technical Department activities, rent
income are some of those areas well concentrated Our holiday bungalows, auditorium and boardroom
which yielded a good result. are well sought after. The recreational sections are
also well patronized.
The expenditure, in spite of the escalating cost
of living and other allied reasons, had been The headquarter and millennium buildings are in
monitored periodically by your Committee and satisfactory condition. Fourth floor of the millennium
high financial control and restrictions applied. This building was renovated and rented out. A generator
resulted to obtain a satisfactory profit for the year. has been installed in the headquarter building. It is
proposed to put up roof on the roof garden of the
We are confident that our members will headquarter building and the Colombo Municipal
appreciate the performance of the Council approval is awaited.
Committee and the confidence they had on us.
The oldest lift in the headquarter premises need
We are also pleased to inform that all these urgent replacement and arrangements are being
financial successes we achieved although we have not made to replace same.
increased the annual subscription since October
2008. We are also studying the feasibility of installing solar
energy to our premises in order to reduce our monthly
Our customary services and facilities had electricity bill.
given great satisfaction to our members,
especially among the senior members who I wish to conclude by stating that the Association’s
sought our assistance, in their hour of need, have century old heritage will provide us with a strong
appreciated the prompt and efficient services. foothold to meet the challenges in the future.
We intend to establish accredited garage services in I also take this opportunity of recognizing the
the Northern and Eastern Provinces. guidance and support of our Executive Committee
members and the dedication of our management and
Our affiliation to the international organizations staff and the other support extended by our members
have been very cordial and in recognition and partners, which I am confident, will continue to be
our Association continue to be the Vice the main driving force of the Association.
President of the Federal Internationale de l’
Automobile (FIA) Region II; Member of the World
Council; Member of the National Road Dhammika Attygalle
Safety Council of the Ministry of Transport and
President
Member of Public Utilities Commission of Sri Lanka.
AGENDA
1. To read the Notice convening the meeting.
2. To confirm the Minutes of the 112th Annual General Meeting held on 30th June 2017.
3. To adopt the Report of the Executive Committee for the year ended 31st December 2017.
4. To adopt the Audited Accounts of the Association for the year ended 31st December 2017.
5. To appoint Auditors for the Year 2018.
6. Resolutions, if any
7. To elect a Patron and Vice Patrons.
8. Any other business [in compliance with Rule 25 (g) of the Revised Consolidated Rules in Force]
(“Any other business of which two weeks’ notice shall have been received in accordance with
these Rules”).
9. Other Business as the Executive Committee may determine.
At the outset, the President Mr Dhammika Attygalle extended a warm welcome to all members who
were present for the 112th Annual General Meeting of the Association and called the meeting to
order.
1. Notice
At the request of the President, Mr Devapriya Hettiarachchi Secretary read the Notice convening the
meeting.
2. Minutes
2.1 Minutes of the 111th Annual General Meeting
The Minutes of the 111th Annual General Meeting held on 11th June 2016 was tabled.
The President said the Minutes were circulated among the members and if it is in order it could be
proposed and seconded.
Thereafter, the Minutes were confirmed, proposed by Mr Sarath Withana and seconded by
Mr Channa Lenaduwa.
Mr Frank de Silva inquired as to why there are no notes for the Balance Sheet presentation.
It was explained to Mr Frank de Silva that this is the format submitted to the members on Accounts
for the AGM. He was reminded that even when he was a Committee Member, the same format was
followed and if further details are required, a member could visit the general office and obtain the
required particulars.
At the request of the President, Mr Lincoln Piyasena, Auditor, M/s B R de Silva & Company stated that
this format of presentation had been followed in the past due to various constraints including cost
of printing etc. However, he advised that in future the Association could circulate the AGM matters
including the Accounts with Notes on a CD and the hard copy could be sent to members who require
same.
5. Appointment of Auditors
The President informed that M/s B R de Silva & Company by their letter dated 31st May 2017 has
confirmed their willingness to accept appointment as Auditors of the Automobile Association of
Ceylon for the year ending 31st December 2017 for a fee of Rs.100,000/- + taxes.
The President proposed that M/s B R de Silva to be appointed for the year 2017.
This was unanimously approved by the House.
6. Resolutions
There were no Resolutions received.
The President and the Executive Committee have pleasure in presenting the 113th Annual Report and
Audited Accounts of the Association for the period ended 31st December 2017.
Introductory
This Report summarizes the main activities and performances of the Association concerning day to
day services assigned and rendered for the benefit of the members.
Executive Committee
The Executive Committee held its regular monthly meetings during the period July 2017 to May 2018.
Committee Members
Deshabandu Dr Lakshman Weerasena
Mr Upali Gooneratne P.C.
Mr Ananda Dangalla
Mr S Manapperuma J.P.
Mr S V Ganesh
Mr S Ravi
Mr N Z Passela
Mr Thilak S Arachchige
Mr Dampiya Banagala
Mr Prasanna De Zoysa
Mr Keerthi Gunawardena
Mr P B Kulatunga
Financial Highlights
It is with great pride and sense of satisfaction we are presenting a well performed set of audited
accounts for year ended 31st December 2017.
We wish to bring to your kind notice that in spite of economic inflation and financial constraints we
are very successful to achieve a good and impressive income compared to previous years.
The whole-hearted efforts of your Committee and the close monitoring and supervision of revenue
management has resulted in the operational expenses kept at a minimum.
Every effort was made to revitalize the loss incurring cost centres and corrective measures were taken
for improvements.
We were also able to obtain successful results from all the cost centres thereby the income over
expenditure prior to taxation was Rs.12,519,178.00 which is almost a 100% increase compared to the
corresponding period last year.
The non-current assets were increased by nearly 20 million during this period.
Whilst concentrating income from the cost centres attention was given for better service and facilities
During this year under review 3,172 new members and 191 life members were enrolled against 2,386
members in the preceding year. Your Committee has not increased the annual, ordinary membership,
life membership subscription for the last ten years but we have offered more benefits and facilities to
members.
You will find from the financial statements that we have taken all efforts to increase our membership
and we have offered special discounts in order to promote AA membership and encourage motorists
to enjoy our services and facilities.
We are therefore confident that the members will appreciate this achievement by the Committee
and the trust placed upon us, in spite of the financial restrictions, escalating cost of living and not
forgetting the less income from investments.
We reiterate that although we have achieved a financial gain this year, the Association has not
increased its membership subscription since 2008.
Our members are now eligible for special discounts on batteries, tyres, insurance and special facilities
at reduced rates are available with some spare parts, accessories dealers and car wash centres.
We give the following bar charts in respect of the last 3 years Income & Expenditure which will
enlighten the members the progress your Committee has made during this period.
The Association upgraded their motor cycle fleet regularly in order to provide an efficient service to
members.
The uneconomical vehicles are replaced with new vehicles. A Nitrogen tyre pump is available at the
AA headquarters for the convenience of our members, free of charge.
Nuwara Eliya Call Box,and Hanwella Call Box are given a new facelift.
The Kandy Branch Office is now relocated at No.35/2-5-9 Silverdale Shopping Complex,
Yatinuwara Veediya, Kandy, Telephone No.081-7201020 and this Branch Office is reorganized to issue
International Driving Permits and Valuation Reports, in addition to the customary road service
assistance.
Accredited garages are available in most parts of the island to provide services to members.
We are now in the process to have easy access by our members to these accredited garages with the
assistance of an Insurance Agent.
As you are aware the Road Service also provides valuable information on road conditions during
the inclement weather, not only to our members but also to various institutions and to the print and
electronic media.
We therefore wish our members to give their comments and suggestions on any improvements tour
services and facilities.
These garages which are well equipped and can handle any kind of breakdowns are available to our
members at the time of need. We intend to extend these facilities to our motoring members in the
Northern and Eastern Provinces.
Our valuation reports are highly accepted by Banks and financial companies.
In addition this section provides technical advice and assistance to our members who face various
technical difficulties with their vehicles.
Registered Drivers
This is an additional service provided by our Association especially to our senior members.
We have very few drivers in our pool. We therefore kindly request at least 24 hours notice to provide
this service. You may kindly contact our Road Service Section (Tel: 011242158 Extn.210/213).
Touring
12,116 International Driving Permits were issued during this period. We have also
issued Carnet de Passages (CPD) to take their vehicles temporarily out of the country.
Similarly, we have a few vehicles temporarily imported into the island during this period.
Official Magazine
The official magazine “The Record” was published once a year in the month of June during the AGM
in order to incorporate the items such as Annual Report, Audited Accounts etc.
It was unanimously decided at the last AGM to send the AGM subject matters in a CD format.
Therefore, we will not have the printed version for the month of June..
Members and any organization desirous of advertising in our monthly publication may contact the
Secretary. Advertising rates are reasonable.
International Relations
You are aware that our Association is affiliated to the Federation Internationale de l’Automobile (FIA)
based in Geneva, Switzerland which enables our members to enjoy global benefits.
Mr Jean Todt, President FIA was once again elected for a 4-year term of office.
Since our Association is in the FIA Administrative Forum, our Association’s proposals to fund Road
Safety projects are being favourably considered.
Under the FIA Mentor/Mentee Program our Association trained the Nepal Automobile Sports
Association (NASA) officials on the issuance of International Driving Permits, Carnet de Passages and
promotion of membership, in order to establish a similar Association in their country. They were also
given a demonstration on defensive driving at the driving school in Sooriyawewa.
Some of the Executive Committee members and staff of our Association have had the opportunity of
attending some educative programs conducted abroad by FIA which included a University program
(known as Customer Experience and Innovations) and issuance of International Driving Permit and
Carnet documents.
The cost of travel and accommodation were borne by the organizers. This year the Mobility
Conference Week was held in Tokyo Japan and 4 of our Executive Members participated.
We are pleased to inform you that this construction will commence once we receive the approval from
the Colombo Municipal Council.
Your Executive Committee is also concentrating to install solar energy electricity to the headquarter
building in order to minimize electricity bills. Necessary feasible study is carried out and quotations are
called for.
A Generator was installed as there were regular power failures in the area. The Millennium Building is
also maintained well. The rooftop (4th floor) of this building was completely redone and is now rented
out. A portion of the 4th floor in the Millennium Building is utilized by the Association for its purposes.
All areas in our building are now occupied.
The Bar & Billiard premises were given a facelift and the toilets were constructed newly in order to
have more space for recreational facilities. The Auditorium and Boardroom are hired for meetings and
functions and well patronized by our members.
The oldest lift in the headquarter building needs urgent replacement and arrangements are now being
made to install a new lift by ETA Melco Engineering (Pte) Ltd after evaluating several quotations were
received from various suppliers.
Road Safety
As our motto is “Partner in Motoring” our prime concern is the road safety.
Under the FIA “Decade of Action for Road Safety 2011-2020” our Association indulges in various road
safety programs and projects.
With the assistance of FIA and FIA Foundation, the Association was awarded the Project M known as
“Don’t Hit & Run”. The inaugural ceremony was held in the AA headquarters with a workshop. This
project was to educate mostly the Driving School Instructors so that they could in turn train
prospective drivers about road etiquette, road safety and help the road accident victims at the hour of
need and not to neglect injured persons.
Under this project workshops were also held in Jaffna and Matara.
Membership
The Association took part in the motor show at the BMICH and exhibited a stall to promote
membership and sell many AA branded items. A special discount of 20% was given to the newly
joining members as an incentive to join our Association and enjoy its services and facilities.
Membership cards are now issued to members over the counter. In order to bring awareness of the
Association services and facilities, regular newspaper advertisements and social media advertising are
being promoted.
The Billiard Section has become a popular recreational facility among the Billiard & Snooker
enthusiasts. The Billiard Tables were refurbished with new cloths. The Association together with
Sinhalese Sports Club (SSC) conducted the Annual Billiard & Snooker Inter Club Tournament at the AA
premises.
At the request of the Billiard & Snooker Association of Sri Lanka, the AA Billiard Tables were used for
several tournaments on payment.
Our Billiard Chairman Mr N Z Passela was elected as the President of the Billiard &Snooker Association
and our Billiard Secretary and Consultant Mr Anton Kandiah. was elected as Treasurer for 4 years.
Holiday Bungalows
The Association provides holiday bungalows at Weerawila, Kalpitiya, Kandy, Anuradhapura, Nuwara
Eliya, Diyatalawa and Trincomalee at reasonable rates.
Several members enjoy these facilities. Except the Weerawila bungalow all other bungalows are being
maintained by its owners.
Staff
The staff are given several courses and workshops to improve the office and other sections of
the Association and to improve customer care and etiquette. Some staff were given training on
membership, issuance of International Driving Permit and carnet, customer experience and
innovation under the FIA University Grant Program.
The staff and families celebrated the Annual Christmas Get-together. Two months bonus was paid to
staff in December and one-month bonus was paid in April during the Sinhala/Tamil New Year.
As usual, the staff went on an annual picnic
General
A health camp was held at Kamburupitiya and donations and gifts were received from some of our
Committee Members. The Association expressed its gratitude to the IGP, DIG (Traffic) and the Traffic
Police who usually assist in all our projects.
The Committee also is pleased to express its appreciation for the loyal and ungrudging services
rendered to the Association by the staff of all grades led by Secretary, Consultant and the Engineer.
The President takes this opportunity to thank all Members of the Executive Committee for their
valuable advice and support so extended at all times and also not forgetting each and every member
of the staff.
Last but not the least he also conveys his sincere thanks to all those members, who placed their
confidence in him and his team during this period.
Acknowledgement
The President and the Executive Committee acknowledges with gratitude the continued cooperation
and the valuable assistance received from the Sri Lanka Police, Department of Motor Traffic, Survey
General’s Department, Road Development Authority, Excise Department, Colombo Municipal Council
and all local authorities, the National Council for Road Safety, the Billiards & Snooker Control Council
of Sri Lanka, our Partners M/s Julius & Creasy, Attorney-at-Law, and M/s Anton Fernando Associates
and our Auditor M/s B R de Silva.
We wish you all every success in all your endeavours and a Happy Accident Free Motoring.
3. Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Sri Lanka Auditing Standards. Those standards require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the entity’s preparation of the financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the Committee as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
4. Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the
Association as at 31st December 2017, and its financial performance and cash flows for the year then
ended in accordance with Sri Lanka Accounting Standards for Small and Medium sized Entities.
a) The basis of opinion and scope and limitations of the audit are as stated above.
b) In our opinion:
we have obtained all the information and explanations that were required for the audit and
as far as it appears from our examination, proper accounting records have been kept by the
Association.
Sgd. B.R. DE SILVA & CO.
Chartered Accountants
Colombo 05
Date 15th May 2018
LCP/NM/kl
CURRENT ASSETS
Inventories (5) 4,253,928.31 5,357,515
Debtors and Prepayments (6) 6,142,060.13 5,595,678
Short term Financial Assets (7) 44,362,453.35 49,118,108
Cash & Cash Equivalents (8) 289,213.62 290,771
Quoted Company Investments (9) 2,657,973.00 1,892,470
57,705,628.41 62,254,542
TOTAL ASSETS 160,615,072.03 145,030,448
FUNDS EMPLOYED
Accumulated Fund B/F 105,069,354.48 100,025,462
Add: Excess of Income over Expenditure for the Year 10,554,445.97 5,043,892
115,623,800.45 105,069,354
CURRENT LIABILITIES
Other Current Financial Liabilities (11) 7,200,440.40 7,489,527
Sundry Creditors (12) 16,560,407.99 16,772,336
Subscriptions in Advance (13) 4,156,523.96 3,451,233
Income Tax Expenses (14) 3,808,630.25 3,179,134
31,726,002.60 30,892,230
TOTAL LIABILITIES 160,615,072.03 145,030,448
The Committee Members are responsible for the preparation and presentation of these Financial
Statements.
LESS: EXPENSES
Expenses on Services to Members (24) 19,447,437.10 17,673,610
Promotional & Marketing Expenses (25) 23,184,363.58 14,696,254
Professional & Other Expenses (26) 1,709,001.94 2,565,011
Administration & Establishment Expenses (27) 35,741,627.06 33,526,140
80,082,429.68 68,461,015
1. CORPORATE INFORMATION
1.1 General
Automobile Association of Ceylon is incorporated under Act No. 19 of 1957. The registered office of
the Association and the principal place of business are located at No. 40, Sir Mohamed Macan Marker
Mawata, Colombo 03.
During the year, the principal activities of the Association were providing Automobile Services to
Members.
1.3 The Notes to the Financial Statements on pages (04) to (22), form an integral part of the
Financial Statements.
The number of employees at the end of the year was 53 (December 2017).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Statement of Financial Position, Statement of Income & expenditure, Cash Flow, together with
accounting policies and notes (“Financial Statements”) of the association as at 31st December
2017 for the year then ended’ comply with all material aspects of the applicable Sri Lanka Financial
Reporting Standards for SMEs.
These financial statements presented in Sri Lanka Rupees have been prepared on a historical cost
basis.
The Accounting Policies have been consistently applied by the Association and are consistent with
those used in the previous year.
2.1.3 Taxation
The provision for income tax is based on the elements of income and expenditure as reported in the
financial statements and computed in accordance with the provisions of the Inland Revenue Act.
2.2.1 Inventories
Inventory is valued at the lower of cost and net realizable value by the Management.
2.2.2 Receivables
Receivables are stated at the amounts they are estimated to realize net of provisions for bad and
doubtful debts.
Cash and cash equivalents are defined as cash in hand, demand deposits and short term highly
liquid investments, readily convertible to known amounts of cash and subject to insignificant risk of
changes in value.
(a) Cost
Property, Plant & Equipment are recorded at cost less accumulated depreciation.
Expenditure incurred on repairs or maintenance of Property, Plant and Equipment in order to restore
or maintain the future economic benefits expected from originally assessed standard of performance
is recognized as an expense when incurred.
(b) Depreciation
The provision for depreciation is calculated by using a reducing balance based on the cost or
valuation of all Property, Plant and Equipment other than freehold land, in order to write-off such
amounts over the following estimated useful lives. The Principle Annual Rates used are;
Buildings 5%
Air Conditioners 25%
Water Pumps 5%
Bar & Office Equipment 5%
R. S. & Tech; Equipment 25%
Billiard Table 5%
Billiard Room Equipment 5%
Car Washing Bay Equipment 5%
Lift - New Building 5%
Auditorium 5%
Motor Vehicles 25%
Intangible Assets 5%
Depreciation has not been charged in the year of purchase. Full depreciation will be charged in the
year of disposal.
2.2.4 Investments
(a) Current Investments
Current investments in Government Securities are stated at cost.
Investments in quoted securities are stated at fair value.
The gratuity liability is neither funded nor actuarially valued. This item is grouped under provision and
other liabilities in the Statement of Financial Position.
(b) Defined Contribution Plans - Employees’ Provident Fund & Employees’ Trust Fund
Employees are eligible for Employees’ Provident Fund Contributions and Employees’ Trust Fund
Contributions in accordance with respective Statutes and Regulations.
Net gains and losses of a revenue nature on the disposal of Property, Plant & Equipment and
other non- current assets including investments have been accounted for in the Income and
Expenditure Statement, having deducted from proceeds on disposal, the carrying amounts
of the assets and related selling expenses.
(a) Expenses are recognized in the Income and Expenditure Statement on the basis of a direct
association between the cost incurred and the earning of specific items of income. All expenditure
incurred in the running of the business and in maintaining the Property, Plant & Equipment in a state
of efficiency has been charged to income in arriving at the profit for the year.
Leasehold Property
Car Carrier 7,574,393.00 - - 7,574,393.00
80,076,464.19 25,899,534.20 (6,680,313.58) 99,295,684.81
Intangible Assets
Bar Software 70,000.00 270,000.00 - 340,000.00
70,000.00 270,000.00 - 340,000.00
25
26
Automobile Association of Ceylon
Notes to the Financial Statements as at 31st December 2017
Generator - - - - 2,733,578.50
Prado Land Cruiser 6,223,356.64 1,135,342.09 - 7,358,698.73 3,406,026.27
32,917,651.80 4,047,787.36 (5,036,976.52) 31,928,462.64 59,792,829.17
Leasehold Property
Car Carrier 5,540,664.13 508,432.22 - 6,049,096.35 1,525,296.65
38,458,315.93 4,556,219.58 (5,036,976.52) 37,977,558.99 61,318,125.82
Amortization
Bar Software 6,825.00 3,158.75 - 9,983.75 330,016.25
6,825.00 3,158.75 - 9,983.75 330,016.25
Automobile Association of Ceylon
Notes to Financial Statements as at 31st December 2017
Note -2
Automobile Association of Ceylon
Notes to the Financial Statements as at 31st December 2017
(4) INVESTMENT PROPERTY
01.01.2017 31.12.17
Rs. Cts. Rs. Cts. Rs. Cts. Rs. Cts.
Land 200,000.00 - - 200,000.00
Building 40,894,581.55 166,720.00 - 41,061,301.55
41,094,581.55 166,720.00 - 41,261,301.55
6,142,060.13 5,595,678
L.B. Finance-Generator
Lease Creditor 1,265,724.00 2,109,540.00 3,375,264.00
Lease Interest (510,838.61) (381,214.82) (892,053.43)
754,885.39 1,728,325.18 2,483,210.57
Maintenance
Office Equipment 1,064,987.62 1,035,716
Lift 935,062.23 690,952
Water Pump - 12,905
2,000,049.85 1,739,573
Drivers will be detailed only for Members and Firms registered with the Association.
The following are the rates inclusive of the Bus Fare (travelling), payable by members direct to the Reg-
istered Drivers.
The following rate are applicable with effect from 10th September 2015.
PER DAY For (9) Hours (with one hour for lunch interval)
Day Rate Rs.1,250
Night Rate Rs.1,565/-
The Day Rate is applicable for Bookings from 8.00 a.m to 5.00 p.m
Night Rate is applicable for Bookings from 6.00pm to 6.00 a.m
Batta per Night (out-station) cars Rs.950/-
Batta per Night (out-station) Lorries/Vans Rs.950/-
When required to serve out from the City of Colombo beyond a radius of approximately 16 KM the
following outstation allowance should be paid :-
Drivers engaged from 12.00 noon are not entitled to a lunch interval. When a driver is requested by a Member
and he reports for duty, and in the event his services are not utilized, please note, that he should be paid half
day’s wages as stated above.