Chrissworld : Annual Report 2021/22

ANNUAL REPORT 2021/22

About Us

Our story started exactly a decade ago in 2012, inspired by the vision to add a new dimension to customer service in the logistics industry of Sri Lanka. Chrissworld commenced operations with 30,000 square feet of warehouse space situated in Kotikawatta, under the parent company Chrisslogix (Pvt) Ltd. The steady growth of this business was the birth of Chrissworld. The company has grown by leaps and bounds over the years and is now a member of the esteemed Chartered Institute of Logistics & Transport, Sri Lanka, managing over half a million square feet of space. Spearheaded by a dynamic and a highly experienced Board of Executive Directors, each of whom counts between 25 - 35 years of experience in the logistics industry. Harnessing from this knowledge and expertise, the organization specializes in the two core areas of warehouse management services and inventory management, servicing clients across multiple verticals and industries.

The multi-faceted team is dedicated in providing an excellent service through the entire process, from detailed planning to precise implementation, and is geared in handling niche

and specific shipments that require individual attention and effective integration. We provide an end-to- end solution to the client through our

range of services which includes; storage solutions, both ambient and temperature control; inventory management services, cross docking, distribution, packing, supply chain management consultancy, 3rd party facility management, last

mile delivery, project cargo handling, door-to-door solutions, MHE supply and a range of value-added services.

Recently company commenced free port operation at the Katunayake free trade zone in collaboration with a free port license holder. The main traget market is the ISC and Sea regions. This is purely targeting international market to explore transshipment volume.

Our expertise in an array of services and projects enables us to deliver a unique value proposition to clients, which is not only superior in terms of process but also within project schedules and agreed resources. This is the reason we can pledge to a winning solution that will meet or go beyond your expectations.

Vision

To provide innovative total logistics solutions across the globe with clear focus on our core values of high quality, respect, integrity and professionalism

Mission

To be ranked among Sri Lanka's top five "end to end" logistics service providers

ANNUAL REPORT 2022 01

Contents

Inner Cover.....About Us

02.....CORPORATE VALUES

03.....RESILIENT BUSINESS MODEL

04.....OUR SERVICE OFFERING

08.....CHAIRMAN'S MESSAGE

10.....GROUP CEO'S REVIEW

14.....BOARD OF DIRECTORS

18.....SENIOR MANAGEMENT TEAM

19.....COMPANY PERFORMANCE

23.....LOCAL ECONOMY/ LOCAL LOGISTICS

INDUSTRY

26.....CORPORATE GOVERNANCE PRACTICES

30.....HUMAN CAPITAL

32.....INTELLECTUAL CAPITAL

33.....SUSTAINABILITY STRATEGY

34.....RISK MANAGEMENT REPORT

37.....LOGISTICS MARKET REVIEW

40.....AUDIT COMMITTEE REPORT

41.....RELATED PARTY TRANSACTIONS REVIEW

COMMITTEE REPORT 42.....REMUNERATION COMMITTEE REPORT

43.....INDEPENDENT AUDITOR'S REPORT

46.....STATEMENT OF COMPREHENSIVE INCOME

47.....STATEMENTS OF FINANCIAL POSITION

48.....STATEMENT OF CHANGES IN EQUITY

49.....STATEMENTS OF CASH FLOWS

50.....NOTES TO THE FINANCIAL STATEMENTS

76.....NOTICE OF MEETING

77.....FORM OF PROXY

79.....CORPORATE INFORMATION

ANNUAL REPORT 2022 02

CORPORATE VALUES

CONNECTED

We invest in insight to get to the heart of our customers' challenges.

We are open and transparent in the way we work.

FAIR TRADE

we ensure we do the best and give the best through all our partnerships measuring ourselves against the highest standards of integrity and fiscal responsibility.

COMMITTED

Deeply involved in building relationships - everything we do is with the long-term in mind.

Our dedication to quality is the cornerstone of our success - we get every detail right.

CREATIVE

We are constantly developing better ways of working.

If we find a better way of working, we act upon it and proactively share it.

HONESTY

We are guided by solid moral compasses. We stand for what is just and right, and hold ourselves to a high level of ethical standards.

INTERGRITY

Integrity creates trust. As an organization, collectively, it's our most valuable asset. Individually, it's the constant choice to infuse every action with honesty, fairness, and respect for clients and colleagues alike.

ANNUAL REPORT 2022 03

RESILIENT BUSINESS MODEL

Beginning from April 21, 2019 to now, Sri Lanka has seen the worst phase of its history in recent times. The imminent threat to Chrisslworld, as with many other organizations and individuals was inevitable. Chrissworld has made a considerable recovery

in the aspect of its service after recurring floods, that destructed and dampened its operations during 2015-17. The innovative leadership and the passion and hard work of the entire team managed to see through the floods, so as service was restored. However, as mentioned before with the carnage of the Easter Sunday Attack and the Outbreak of the Covid-19 virus, neatly and drastically paralyzed not only the local but also the global market. Battling through the multiple waves, operations had to play a role of pause- play recurrently. The steady leadership saw the company go through, with compromise the years 2020-21. Yet, what was to happen in early 2022 was beyond anyone's control. Sri Lanka ran out of foreign reserves, defaulted in paying imminent loans, and had to declare bankruptcy. This without doubt was the worst financial crisis the country faced in the last two centuries. Irritant long hour power cuts, mega- length fuel queues, food shortage, disrupted not just the business activity but also the personal lives of all citizens of Sri Lanka. The

anger of the people, resulted in unprecedented protests which was able to force the governing regime to resign. Under the such milieu, running a smooth operation in Chrissworld was a challenge hard to master. Yet, with experience and the innate skills of the team, the company saw headway, strengthening its performance. The strategy used by the management was of paramount importance in this regard. The days ahead are bound to be tougher. One could however, be less worried knowing the repeated ability of the whole team in trying times.

Despite to above facts chrissworld records following results in 2022,

d Annual Turnover

Rs.355,084,364 up 34%

d Contribution to annual gross profit Rs. 88,685,721 up 51%

d Net Profit Rs. 23,870,187 up 105%

d Earnings Per Share Rs. 0.83 up 50%

Chrissworld PLC has delivered a strong performance for the year 2022 financial year (FY2122), through effective implementation of the company on going strategic initiative,which has enhance its operational alignment with market condition.

Due to the outbreak of COVID-19 virus & global & local economic

crisis drastically paralyzed many industries. However battling with all challenges Chrissworld able record revenue by 34%. YOY to Rs. 90.9Mn over 67% this revenue was derived from inventory management & storage. Profit after tax (PAT) grew by 105% YOY to Rs. 23.8Mn.