Cic.lk2

live TOdaY TO live
The whole purpose of conducting our business in a sustainable manner is to ‘live' our enterprise in such a manner today, that we are able to ‘live' that enterprise tomorrow with no contribution to depletion of resources…no contribution to extinction of species… no contribution to social and economic deprivation at our hands. CIC Holdings PLC Annual Report 2010/11 Sustainability Report Managing Director's Message
In the current society the chal enge a
Our humanitarian trust "Manussakama" corporate has, is to achieve the economic works with the rural system and passes expectations of the stakeholders whilst knowledge through the Denuma Dana ensuring that minimum harm is done to the programmes to farmer children. Shoora environment around us and also create a Goviya, the live television show to select the better quality of life to the communities best farmer in the country now in we operate in.
its third season, draws a large interest in the rural sector. This programme has been Unlike most companies CIC operates most instrumental in raising the social worth of of its businesses in the rural and semirural farmers in the country to a large measure.
communities in Sri Lanka and greater engagement in this areas means that the As a land holder of more than 10,000 acres large rural population greatly benefits from of farmland and working farmer base our initiatives.
of over 20,000, the Group is on an ideal position to make a meaningful difference Hence the Company has placed in the rural landscape of the country. "Our sustainability as one area of priority. For the Greatest Wealth" is the employees who have first time external consultants have been managed to balance the economic and social appointed to study the initiatives taken by motives of the Company to a great extent.
CIC's Group of Companies and the Group's sustainability report for 2010/11 has been In the coming year our greatest chal enge confirmed as a "C" level report by a 3rd wil be to pursue these twin initiatives party independent check. This is our first of economic development and social rating on the sustainability side and we hope development. Further whilst engaging our to build on it in the coming years.
industrial sector in more environmental y friendly path the Company initiatives to This year the Group achieved significant sel safer chemicals, to recycle waste and financial results by topping the Rs. 1 bil ion to manage our water better wil be closely on the profitability after tax. The market monitored in the coming year. The Business capitalisation too doubled during the Head Task Force along with an external year. Excel ent financial results have also consultant has been appointed to guide us strengthened our resolve to be more society, on this path.
community and environmental y oriented.
As Sri Lanka moves into the future, During the current year we continued on the Group is geared to seek the best our initiatives in improving the livelihood of opportunity in a sustainable manner.
the rural communities as per our governing philosophy. We trained more than two thousand farmers especial y in the North and East which is joining the economic main stream after the end of the civil war. We also train, develop and provide technical assistance to more than 1,500 poultry Managing Director/CEO farmers who are visited at least bi-monthly by our team of veterinary surgeons in the animal feed business.
CIC Holdings PLC Annual Report 2010/11 Sustainability Report Our report this year fol ows the Global Sustainability Report, though not GRI CIC Group consists of a varied and Reporting Initiatives (GRI) G3 Guidelines based, yet accounting for activities diversified portfolio of businesses to Sustainability reporting. This process and results under the Triple Bottom activities in the areas of agriculture tracks the Company's performance Line parameters - Economic, Social and livestock, industrial raw materials, across the three main parameters – and Environment - appeared in the construction, packaging, consumer Economic, Social and the Environment, Company's Annual Report for the products and Services.
in accordance with a schedule of indicators developed by GRI. Detailed information pertaining to We intend to continue an annual the scope and principal activities of Thus, the content of our narrative is reporting trend.
the Company and its subsidiaries and cross referred against a comprehensive associates plus relevant corporate Index of Indicators, which appears on Al inquiries and clarifications in respect information appears within the Annual page 50 of this Annual Report. of this report may be directed to: Report of Board of Director's on page Ms. P.D.S. Ruwanpura 87 as wel as on page 138 of this We have endeavoured to make our Group Chief Financial Officer Annual Report.
report easily understood and devoid where possible of unnecessary 199, Kew Road, Colombo 2 CIC Holdings PLC operates within repetition. Thus, certain information Sri Lanka and though the Company's appearing in greater detail elsewhere in products are exported to many the Annual Report wil be suitably cross Profiling the Company
countries overseas, it does not conduct referred within the Sustainability Report. major operations outside Sri Lanka. The name of the Company changed from Chemical Industries (Colombo) Reporting Parameters
A brief detail on the brands, PLC to CIC Holdings PLC with effect This is CIC's maiden attempt at a GRI products, services and customers of from 14th January 2011 to be in line with based Sustainability Report in line the companies within the reporting the businesses the group is in. with the GRI G3 Guidelines at C Level. boundary are as fol ows, Our reporting period is from 1st April 2010 to 31st March 2011. Our previous CIC Agri Businesses Group The Feeds Group has CIC Agri Businesses Group Chemanex Group's main Link Natural, the company invested in brands such as has invested in many brands brands are" Stop Brake Oil that deals with natural "CIC Feeds, CIC Chicks, over the years and to name & Nexo Bleech". The main healthcare products has CIC Chicken". Also they deal a few, they are "CIC Pohora, product categories involved many popular brands. To with imported brands such CIC seeds, Golden Crop, are speciality chemicals name a few are, " Samahan, as Frontline, Rabisin, Vitalyte Juiceez, Fresheez, Windsor and additives, yarn sizing Link Paspanguwa, Link to name a few. The Group Park, KVC". The main chemicals, seamless knitted Kesha, Samahan Balm, deals with products that fall products the Group deals gloves and liners. The Sudantha, Musle Guard, under the category of broiler with are fertilizer, seeds, Group's exports are mainly Swastha Thripala". The feed, layer feed, breeder greenhouses, agri machinery, concentrated into Europe, products the company feed, dairy feed, day old planting material, rice, Middle East, Africa, Asia, is focusing on can be chicks, chicken, veterinary poultry products, milk based Australia and New Zealand. categorised as herbals, medicine, vaccines etc. products, irrigation systems, The Businesses are al in pharmaceutical range and They also extends services condiments & sources. They B to B category.
personal care.
on veterinary and technical also provide advisory services aspects. The operations are and laborotary services. within Sri Lanka and they The products and services cater to smal and medium are mainly sold in Sri Lanka, scale livestock farmers, buy but there are exports to back poultry operators,retail countries like, USA, Canada, outlets, supermarkets, Australia and Denmark. The hotels, veterinarians, pet main beneficiaries of these owners to name a few.
products and services are the farmers and consumers.
CIC Holdings PLC Annual Report 2010/11 Sustainability Report The holding company too has invested The work carried out by CIC Feeds The work carried out by Link Natural in many brands such as Solito, Group during the period was during the period was recognised Superdash, Profit, Sofit, Platignum, recognised as fol ows: Chemifix, CIC Canned Fish to name  A Gold Award in the ‘Large Scale  National HR Excel ence Award for a few. The Company also deals with Producer' category at the Ag-Biz Employee Relations and Industrial imported brands such as Synthes, Relations -2010 awarded by Institute Betaserc, Duphaston, Johnson & of Personal Management Johnson, Neutrogena, CavinKare,  A Merit Award in the ‘Extra Large Listerine and Nalco.
Category' for Livestock and Fisheries  Best Corporate Citizen Award 2010 at the National Business Excel ence for CSR and Sustainable Business by The range of products and brands Award Ceremony conducted by the the Ceylon Chamber of Commerce.
attributed to the CIC Group, alongside National Chamber of Commerce.
the geographical spread of its markets, The work carried out by Chemanex PLC  A Silver Award for CIC Poultry Farms and its financial results, provides an during the period was recognised as in the ‘Medium Scale Processor' indication of the current scale of the category at the Ag-Biz Awards. Company. The Group Turnover for the  Gold Award in the Industry - Extra year ended 31st March 2011 was  A Silver Award for CIC Vetcare in Large Sector NCE 18th Annual Rs. 21 bil ion, whilst the Group's Total the ‘Medium Scale Input Supplier' Equity was Rs. 8.3 bil ion and the debt category at the Ag-Biz Awards.
equity ratio stood at 69.4%.
 National Business Excel ence Awards The work carried out by CIC Agri 2010 - Manufacturing Chemical & During the period under review, the Businesses Group during the period Ceramic Sector - Runners-Up Company was honoured to receive the was recognised as fol ows:  National Business Excel ence Awards under mentioned accolades:  Corporate Citizens Award for uplifting 2010 - Medium Category - Winner  Gold Award - Best Annual Report - the living standards of farmers by the  Silver Award - Best Annual Report - 2010 - Manufacturing Sector - Ceylon Chamber of Commerce 2000 - Manufacturing Sector - The Institute of Chartered  Swabhimani Award for the website: Institute of Chartered Accountants of Accountants of Sri Lanka (ICASL).
www.nawagoviya.org by ICTA Sri Lanka (ICASL)  Overal Winner - Best Presented  Award for ‘Shoora Goviya' and Accounts - 2009 - South Asian Various Companies within our Group ‘Govi Geethaya' at the Sumathi Federation of Accountants (SAFA).
are in compliance with ISO 9001:2008 standard for quality management,  First Runner-Up - 2009 -  Swarna Lanka Award for contributing ISO14001: 2004 for environmental Manufacturing Sector - SAFA Awards.
towards the Development of management, and ISO 22000/ HACCP  Gold Award - STING Accountability Agriculture by the Independent for food safety management. Rating 2010 and 2011.
Mass Communication Organisation.
The Scope and Boundary of
our Report
In establishing boundaries and defining
the content of this report, we have
decided to report on the activities of
only four of our Group constituents,
Chemanex, CIC Agri Businesses, CIC
Feeds and Link Natural, as col ectively,
these four subsidiaries of the CIC Group
have the biggest impacts on aspects of
sustainability.
Receiving the award - overal winner - Best Presented Accounts 2009 (SAFA) CIC Holdings PLC Annual Report 2010/11 Sustainability Report We thus saw them as the most Our rationale for identifying these important for setting in motion the The process of administering the groups is as mentioned hereunder - necessary upgrades and changes for company and adhering to best practice  Our Customers - are the focus of ensuring sustainable business practices in terms of governance procedures is (which includes monitoring performance dealt with extensively in the chapter and reporting to stakeholders). entitled ‘Enterprise Governance'  Our Employees - drive company which appears on page 62 of this CIC Agri Businesses and Link Natural Annual Report.
 Our Shareholders - own the together contribute to the agricultural Company and provide equity productivity of the nation, which also has The Governance structure of the impacts on environmental sustainability company including committees under  Our Suppliers - are integral to our through good agricultural practices. the highest Governance body and their supply chain process and help us compositions can be found in the above keep the customer happy with the CIC Agri Businesses together with CIC mentioned chapter.
right products available at the Feeds contributes towards food security and the nutritional intakes of the The Board's relationship with  The Government - as implementer of Sri Lankan people, whilst Link Natural shareholders includes active policy and regulation exerts impact contributes towards the health and participation of the shareholders at on our strategy formulation and wel -being of the nation through natural the General Meetings, which are open business operations health and personal care products. forums for their views at al times.  The Community - particularly Chemanex was also included within In line with the Companies Act No. 07 those situated in proximity to our these bounds as we determined it to of 2007, the company provides Notice operating sites could be directly be key in terms of materiality (along of the AGM and related papers to impacted by our operations with the above three subsidiaries), as shareholders 15 working days in it is the only publicly listed subsidiary advance. In addition 3 more days The Economic Perspective
within CIC Group and therefore has are reserved for despatch, as per the CIC recognises the importance of its own shareholders (along with Articles of Association of the Company.
value generation across its different other stakeholders) that it must be stakeholder groups. We also recognise accountable to.
The relationship with employees our responsibilities to monitor and includes an open door policy where govern the economic impact of our On this basis, report content was employees are able to meet the Senior activities on society. prioritised and determined col ectively Management on any issues they might by the four key subsidiaries of CIC have. In addition, for the staff governed We seek to deliver on these Group, in a manner that would al ow by Trade Unions at different locations, responsibilities and goals each year, them to focus on the most critical areas they can request for a meeting with within a framework of good ethics, for reporting for this first attempt at a Human Resources to discuss any morals, principles, fair play and GRI based report. matters pertaining to them, which will then be channel ed to the CEO, who As this is the first GRI based Report of wil raise such matters with the Board Generating Economic Value
CIC, there are no significant changes where necessary. The chart presented here depicts the from previous reporting periods in economic value generated by CIC the scope, boundary or measurement We stay constantly ‘In Touch'
Group during the period under review.
methods and no restatements of information provided in earlier reports.
CIC maintains a consistent process of engagement with its identified Whilst due regard has been given to the stakeholders. We have constant completeness principle when reporting on material performance indicators,  Our Customers information on economic value added and distribution of value addition has  Our Employees been provided for CIC Group as a  Our Shareholders whole, as this includes information that  Our Suppliers cannot be disclosed by the non-listed entities within our report boundary.  The Government  The Community CIC Holdings PLC Annual Report 2010/11 Sustainability Report Consolidated Value Added Statement
For the year ended 31st March
Adjustment for -Other Income Share of profit of equity accounted investees Less: Cost of materials and services purchased Total Value Added Distributed as fol ows:To employees as remuneration To the Government as taxes To the providers of capital - as interest on loans - as minority interest To shareholders as dividends Retained within the business - as depreciation Employees' Benefit Plan
Companies within the CIC Group offer their employees wel -defined benefits, the sums of which are highlighted here. Chemanex contributes 12% of gross salary towards the Mercantile Service Provident Society (MSPS) Fund, Retirement Benefit while CIC Agri Businesses, CIC Feeds and Link Natural contribute the same proportion of gross salary towards the Employees Provident Fund (EPF). Provision for the Year Further, al four companies within our Benefits paid by the Plan report boundary contribute 3% of gross salary towards the Employees Trust Fund (ETF). Financial Assistance from
Government
Gratuity payments are determined using Whilst there have been instances where actuarial valuations, which involves financial assistance from Government making assumptions about discount has impacted our businesses, in the rate, expected rates of return on assets, main, these have been in the form of future salary increases, mortality rates subsidies afforded to whole industries and future pension increases.
and not company specific. The figures presented here, show the aggregate expenses and contributions of Chemanex, CIC Agri Businesses, CIC Feeds, and Link Natural, keeping with the boundary of this report.
CIC Holdings PLC Annual Report 2010/11 Sustainability Report In terms of the business activities of At CIC Feeds, entry level wages are 60% of raw materials used for Animal our subsidiary CIC Feeds, no specific consistently 15% to 20% higher than Feed production are from local y financial assistance is granted by the the prevailing norm in the industry, in all available raw materials. Further, the Government. However, the State has locations of the company's operations. packing materials we use are also local y taken steps to protect the poultry It must be said that there is no wages industry by imposing restrictions on board mechanism prevailing in this importation of processed chicken meat industry at present. Local y purchased raw materials and eggs. This policy helps to safeguard accounted for 49% of our requirements the industry by restricting unsafe, At Link Natural, the wage ratio stands in 2009. In 2010, this figure reached cheap products from coming into the 63%, an increase of 26%. market and also prevents the possible infiltration of poultry diseases. However, Supporting the Supply Chain
Link Natural, by the very nature of during the period under review, due to In conducting our business affairs, we its business as a manufacturer and an acute shortfal in local production, recognise that we exert considerable supplier of herbal products, sources its the Government had granted influence upon the local economy in raw materials local y. As a percentage permission to import chicken on a terms of that of our supplier community. of budget spent on local suppliers, selective, control ed basis to manage The support for these communities and Link Natural spent 90% for herbal economies are reported on as fol ows.
raw materials, 90% on non-herbal raw materials and 95% on packing materials.
Zero duty concession is granted on Chemanex fol ows a policy of procuring importation of hatchery and poultry goods and services that meet with In view of the fact that this company rearing equipment which are also our requirements and standards, from sources most of its raw material from exempt from VAT. local suppliers wherever possible. Due local suppliers and is committed to to the nature of the business, al raw very stringent quality standards for all This encourages the potential large- material for their products are sourced its end products, it demands similarly scale investors in the industry to from international markets, however high standards of quality from its expand and upgrade their operations items such as packing materials are consequently improving the stability of sourced local y.
the industry.
Thus Link regularly visits its suppliers CIC Agri Businesses works with over to ensure quality standards are met, In addition Chemanex received 20,000 farmers mainly in the North whilst arranging technical training Rs. 10.2 mil ion in 2010 from the Export Central and Wayamba provinces for programmes to impart best in class Development Board, on account of the cultivation of seed paddy, rice, knowledge on cultivation, harvesting enhanced exports during a difficult year.
maize and vegetable seeds. During the and the primary processing of herbal period under review, a sum of rupees raw materials for the benefit of suppliers.
Our Wage Structures
460 mil ion was spent on these local y- The CIC Group is committed to the based suppliers which is approximately Wherever the term appears in this economic wel -being of its employees. 55% to 60% of the total sum spent section, we define ‘local' to mean the Whilst there are many ways to achieve on the operation. geographical extent of Sri Lanka. this goal, we are concerned here with our wage structure and how competitive These farmers have access to our farms In determining the quantum of local this regime is vis-à-vis the market.
where similar cultivations are ongoing purchases the Group makes, we assess and they learn the latest techniques the levels of technology required, At Chemanex, standard entry level adopted in our fields. Al inputs are costs, sustainability, reliability and wages are based on the minimum salary made available at special prices. They other such qualities and traits prevalent standards defined by the Board of also sign forward buy back contracts among local suppliers, to evaluate their Investment of Sri Lanka (BOI) and by the for their produce with us, thereby suitability over other external sources provisions under the Shop and Office guaranteeing a market and fair price for Act No. 19 of 1954.
At CIC Agri Businesses, standard entry CIC Feeds too fol ows a policy of local level wages are 35% to 50% higher than sourcing in terms of procurement of the minimum wages stipulated by the raw materials for its business. Corn, rice different Wages Ordinances.
polishing and wheat middling are the main ingredients that are commercial y available in the local market. Around CIC Holdings PLC Annual Report 2010/11 Sustainability Report The Environmental Perspective
CIC Feed's entire energy requirement Other energy saving measures at The nature of the businesses of CIC was met from non-renewable sources. Chemanex include increasing the use Holdings PLC is such that its impacts in Consumption for the year was - 2,786.10 of energy efficient bulbs and appliances an environmental sense, needs careful Gj of energy from Diesel, 9,754.89 Gj of and using turbine driven ventilators management. In fact, this is precisely energy from Furnace Oil and 3,545.24 to reduce usage of air-conditioning what we do every year.
Gj of energy from LP Gas, total ing 16,086.23 Gj.
Here is an account of this stewardship CIC Agri Businesses replaced their for the period under review.
Link Natural Products used 26.6 Gj LP Gas fuel ed process with a steam of energy from Petrol and 8.1 Gj of boiler at the curd processing section, Using Energy Well
energy from LP Gas during the year. As which yielded a saving of Rs. 1 mil ion It is CIC's endeavour at al times to use a conservation method, the company for the period under review. CIC Agri energy efficiently. We are also mindful uses solid waste as an alternative energy Businesses is also a firm exponent of of the impact such energy use can have source for its boiler.
Glyricidia as a raw material for electricity on the environment in terms of source (renewable; non-renewable) and the Indirect Energy Consumption
Group's carbon footprint apart from The graphs appearing below Link Natural extensively uses steam in implications of cost and many other clearly indicates the indirect energy its production processes. Consumption relevant factors.
consumption and the sources thereof, for the year was 2677m3 or 5354 Gj.
of the relevant Group entities. The Group has made an effort to rationalise fuel and energy usage and we present details of our energy consumption for the year under review.
Direct Energy Consumption
At Chemanex, a total of 95,043 litres of
fuel (petrol and diesel) was consumed
for the year under review in servicing
the requirements of factory and office
combined. The company has taken
several initiatives to reduce energy
consumption.
Delivery schedules are pre-planned to minimise fuel consumption. The company has established four sub-stores outside Colombo environs, which has reduced transport requirements and saved fuel.
At CIC Agri Businesses a total of 275,000 litres of petrol and 225,000 litres of diesel was consumed during the year under review. The company has The electricity sources are 40% hydro targeted to reduce fuel usage by 5% to and 60% thermal.
7.5% in the year ahead.
The Group has several initiatives At the Rice Plant of the company, in action that seek to manage energy saving is promoted via the use environmental impacts and reduce of paddy husk instead of furnace oil reliance on non-renewable energy to operate its Boiler Plant. This saved the company Rs. 9 mil ion in fuel costs and also provided it with a productive The power factor correctors instal ed means of disposal for waste paddy husk.
at al Chemanex plants at Ratmalana has increased utilisation to 0.98. This At its Curd Production facility, the company is also consciously maximising replacement of LP Gas with steam to on usage of natural lighting by fire its boiler resulted in a saving of modifying roofing at their plants using Rs. 1 mil ion for the year.
translucent sheeting. The goal is to be able to turn off 200 fluorescent lights at their factory shortly. CIC Holdings PLC Annual Report 2010/11 Sustainability Report Safeguarding our Bio-diversity
The chart below details waste CIC can justifiably be proud of its best generation across relevant companies practices in agriculture, which has seen of the Group.
our rural communities flourish and prosper. The company has striven over the years to ensure that its agricultural Hazardous waste (mt) inputs do not harm or adversely impact the sensitive balance of Sri Lanka's Non-hazardous waste (mt) biodiversity. We strongly promote the natural biodiversity prevalent within Chemanex ensures that al effluents The company converts its poultry the eco-systems of our farms and have are discharged/disposed of in strict processing waste into value added designated green zones to sufficiently accordance with Local Government products - this year we produced 244 mt encourage that biodiversity to thrive.
of render meal and 47 mt of poultry fat - which are also released to the market.
The CIC Group does not own or have In order to reduce waste generation, any interests in property within or at the Ratmalana Production Plant, Of the 159 mt of polypropylene bags adjacent to any areas of sensitivity Chemanex has commissioned that contain our raw materials, 34 mt in terms of biodiversity, however, technology and processes by way of were re-used and a further 125 mt the Hingurakgoda farm of CIC Agri state-of-the-art machines such as a dryer Businesses is home to the resident which reduces waste by 1%, and a dust spotted deer population of Sri Lanka.
extractor system which al ows material to Link Natural deals with its waste as be extracted and processed for re-use, depicted in the chart below: Link Natural by virtue of its foray into as wel as a pulverising system to re-size the field of herbal healthcare, became and re-use oversized material. These Direct re-use mt 390.00 a true partner in the progress of the measure have al owed the company to Composting mt 285.05 rural community. The company, whilst reduce normal loss standards. engaging in systematic cultivation and harvesting of herbal plants took The 6,015 mt of waste generated by great care to ensure that its activities CIC Agri Businesses consists mainly Hazardous Re-cycling posed no threat to the country's of paddy straw. Approximately 80% to biodiversity. Indeed, the company 90% is converted by the Company to played a significant role in conserving fertilizer and around 10% to 15% gets endangered species of flora. In tandem, converted to compost fertilizer. CIC Agri Non-hazardous waste is composted and Link Natural conducted educational Businesses markets around 1,000 mt of used for agricultural purposes in an seminars and workshops for farmers, compost annual y. This is expected to environmental y friendly manner.
students, teachers and the general public to proliferate the message of Compliance against Environmental
eco-friendly agricultural practices and CIC Agri Businesses also has about 14 the adoption of environmental y friendly to 16 mt of fruit and vegetable waste, Al companies within the CIC Group agricultural methods. 10% to 20% of which the company disposes of, to our Piggery.
strictly comply with the prevailing environmental laws and regulations. Dealing with Waste Material
CIC Feeds has a 100% conversion rate As a result, there have been no The CIC Group strictly fol ows proper for its waste material, which ends up fines, complaints, disputes or any procedures in dealing with waste and either as viable products or is recycled. reputational loss encountered by the waste disposal and in paral el with four subsidiaries covered in this Report. these efforts constantly pursues a waste This company's waste consists mainly of Valid environmental licenses for the reduction regime across al constituent poultry litter, poultry processing waste operations exist up-to-date. There have material and packing materials.
been no issues while obtaining licenses for the existing locations thus far nor During the period under review, CIC for any forthcoming expansions within Feeds converted 800 mt of litter from its poultry breeder houses into fertilizer and sold to farmers at a competitive price as there is a good demand for this item as an alternative organic fertilizer. Similarly, litter from its broiler poultry houses, amounting to 1,980 mt was also sold off as fertilizer to the farming community.
CIC Holdings PLC Annual Report 2010/11 Sustainability Report The Social Perspective
even only for a few hours per week. The table below shows the The CIC Group is ful y alive to the impact They are remunerated either by the geographical breakdown of the its operational activities exerts on the hour or by the day, or by the type of operations of Chemanex, CIC Agri social systems within which it functions. work they do. They cannot be classified Businesses, CIC Feeds and Link From the labour practices and human as either ful time or part time workers, Natural. While Chemanex and CIC rights ethos we embrace, which have so are not included in the table below. Feeds operate only in the Western direct significance for our employees Province, CIC Agri Businesses operates and society at large to the highest Link Natural employs only ful time island-wide, as do the sales and levels of product responsibility, ours is employees, thereby ensuring their agriculture staff of Link Natural.
a journey of fulfilment of expectations income and job security. Most of the from so many angles - legality, ethics, company's employees (352 out of The employment profile by gender and morals, transparency and responsibility. 483) are employed for an indefinite age group, provide an indication of the period of time thus ensuring greater diversity within the Group: Being a Good Employer
job security while 25 employees are To earn the status of ‘preferred employed on fixed terms to meet short- employer' one must possess many term requirements of the company. In attributes such as - providing decent addition, the company maintains an work opportunities with no biases, outsourced workforce of approximately ensuring a safe and healthy work 22% (106 in number) which al ows environment and opportunities for self- us greater flexibility amongst the development and career advancement, workforce to help face the chal enges among others.
that emanate from an often turbulent business environment.
We profile data that highlights important aspects of CIC's employment regime.
Ful time employees Part time employees Fixed term/contract At CIC Agri Businesses, an additional 602 people work as casual workers. These are employees who are engaged either directly by the company or by a third party based on the company's needs which are largely dependent on North & East Province the volume of work that needs to be North Central Province done and, in the case of the farms, the North Western Province Season. They may work one, two, three or four days of the week, or at times, Sabaragamuwa Province Southern Province (The above table includes outsourced workers.) CIC Holdings PLC Annual Report 2010/11 Sustainability Report Employment by Designation
Numbers as at 31.03.2011 Executive Board Members Divisional Directors Group Heads/General Managers Senior Mangers/Managers Junior Mangers/Senior Executives (Note: The above table does not include outsourced workers.) Employee turnover within the Group can be observed by gender, age group and region. In general employee turnover amongst males is higher than for females across the four subsidiaries, while keeping in line with expected employment trends, turnover is highest for the younger age group at CIC Agri Businesses, CIC Feeds and Link Natural. Employee Turnover by Gender
Turnover (Number) Employee Turnover by Age Group
CIC Holdings PLC Annual Report 2010/11 Sustainability Report Employee Turnover by Region
North & East Province North Central Province North Western Province Sabaragamuwa Province Southern Province Maintaining Good Health and Safety Standards
CIC Group companies have an admirable record in this respect.
Link Natural recorded a work-related injury rate of 0.00003%, with no reported cases of occupational diseases or work-related fatalities. This company's overal safety-related absentee rate stood at 0.055%.
The CIC Group's safety regime ensures best practice measures are in place from shop floor to Board room and the efficacy of these measures are reflected in the results we share.
Occupational Disease rate Work-related fatalities (No.) Imparting Skills and Knowledge
Staff training is a key component of employee self-development,
motivation, remuneration and career advancement.
The table appearing below il ustrates the training opportunities provided by Company: Average hours of training per year per employee by employee category Executive Board Members Divisional Directors Group Heads/General Managers Junior Mangers/Senior Executives Junior Executives CIC Holdings PLC Annual Report 2010/11 Sustainability Report Reviewing Employee Performance
Companies within the CIC Feeds Group The value of regular Performance comply with ISO 22000/HACCP food Appraisals in respect of employees safety management systems despite cannot be overstated. As a measure of this not being a regulatory requirement. progress, a tool for encouragement, Furthermore, as a mutual understanding further skil ing and empowerment with the Plant Quarantine Department and ultimately as a benchmark for coming under the Animal Production remuneration, the appraisal and review and Health Department, we bring process at CIC is wel -developed.
down wheat consignments in closed containers rather than getting this in Al staff at CIC Agri Businesses, CIC bulk form via open carriers.
Feeds and Link Natural enjoy regular performance and development reviews Companies within the CIC Agri Businesses Group also comply with ISO 22000/HACCP, whilst the production Priyantha Karunaratne, a 38-year old farmer from Angunukolapelessa was Chemanex carries out performance facilities of Chemanex companies, crowned as the Shooragoviya at a appraisals for Executive staff members including CAL Exports Lanka (Pvt) Ltd., glittering ceremony attended by the only, who amount to 21.5% of the Yasui Lanka (Pvt) Ltd. and Chemanex Prime Minister Hon. D.M. Jayaratne at total staff.
Exports (Pvt) Ltd., are accredited with ISO 9001:2000.
Human Rights
The Shooragoviya contest which was Safeguarding of Human Rights reposes During the period under review, none of organised for the second successive at the very core of the CIC Group. We the CIC Group Companies violated any year attracted thousands of farmers ensure that this practice prevails across laws or regulations with regard to their from al parts of the island. Initial al stakeholder groups and across every products, and therefore do not report selections and screening was done by activity, strategy and process.
any incidents of fines in this regard.
the Undergraduates of the Faculty of Agriculture, University of Peradeniya For the period under review, no acts of Community Investment at
CIC Agri Businesses
while the final selection was carried out discrimination were reported by CIC by Academics attached to the University In keeping with the company's of Peradeniya and the Department of Business Philosophy of enhancing farmer incomes, improving the rural economy and contributing towards the In dealing equitably with al stakeholder The Contest is organised annual y in development of Agriculture in Sri Lanka groups and society at large, it is a bid to encourage young farmers the community investment activities incumbent on the Group that it and also with a view of imparting the of CIC Agri Businesses revolved complies with al laws and regulations latest methods and technologies around increasing the income levels that govern enterprise in Sri Lanka.
to the farmers.
of the farmers and adding value to the community and environment in which CIC has fulfil ed these obligations Shooragovi Front Formed
we operate. Al community investment and for the period under review, no activities of CIC Agri Businesses are A Shooragoviya Front was formed incidents of fines or proceedings for any implemented through RUHUSEF - Rural comprising the 30 finalist of the two form of non-compliance have occurred. Humanity Services Foundation, a non- Shooragoviya Contests held to date. profit organisation. As in the past, all The members of the Front are being Community investment activities were trained on the different aspects of Placing products and services in the focused on Uplifting Rural Education. modern agriculture in a bid to enhance market carries with it a responsibility their knowledge and increase their to ensure that many requirements ICTA Honours for Nawagoviya
are met – such as safeguarding the customers' health and privacy, imparting The Information and Communication Samitha Gets Assistance from
the required product information CIC Charitable & Educational
Technology Agency of Sri Lanka (ICTA) to the customer and ensuring strict Trust Fund
adjudged CIC Agri Businesses' website compliance with laws and regulations for Farmers www.navagoviya.lk as the The CIC Charitable and Educational governing such enterprise.
country's best e-Content Application in Trust Fund donated a Stand-up Electric the e-Learning and Education category Wheel Chair valued at over three mil ion at the Annual e-Swabhimani 2010 award to Samitha Samanmalee, a medical student who suffered severe spinal injuries two years ago.
The website developed for the benefit of the Rural Farmers was carried out as a part of CIC Agri Businesses' community investment efforts of uplifting the living standards of the farmers of Sri Lanka.
CIC Holdings PLC Annual Report 2010/11 Sustainability Report After being injured due to an unfortunate incident at the BMICH 2 ½ years ago, Samitha, a 3rd-year medical student was confined to a Wheel Chair for the rest of her life. She continued with her medical studies, with the help of her col eagues and with great difficulty. However, day-by-day it was becoming increasingly difficult for her to get about her Hospital rounds and examine patients.
However, today, Samitha is in a position misconceptions and counter-productive Thirassawalu, Eriweriya and so on to to get about her day-to-day duties, attitudes of parents and teachers, the company. Facilities extended most of al stand-up and examine her lack of commitment on the part of to these farmers in order to develop patients just like most of her col eagues school heads and the teachers, lack them as ‘partners' of the company's as a result of the LEVO Electric Wheel of understanding on the value of long-term growth are an assurance Chair donated to her through the education among some of the parents that the produce wil be purchased generosity of the CIC Charitable and were the root causes of this problem. at pre-announced prices, free seeds/ Educational Trust Fund.
With a view to addressing these issues planting material, advisory services and creating an enabling and viable wil be made available throughout environment for learning, the company the cropping period, special training selected 7 schools during the latter part and awareness programmes, visits/ of 2010 and supported them by way of exposures to company maintained equipment, books, other educational agricultural projects and the factory, free needs, teachers, extra educational implements and equipment to be used programmes, various programmes on a col ective basis, including solar aiming at attitudinal changes of school driers, trailers for bicycles, grinders, heads, teachers and parents etc. with a storage items etc., recommendations heavy focus on GCE (O/L) Examination. related to financing, services from This programme is continued during NGOs etc., and various other forms of 2011 with a much larger target group assistance would also be available at of schools and students. The amount required times.
Partnering Thousands of
spent in 2010 was approximately Rs. 1.5 mil ion. Budget for 2011 is Projected Quantitative impacts of the The Company continues to work hand- Rs. 4.5 mil ion.
project are as fol ows: in-hand with thousands of outgrower (a) Number of farmer families directly farmers throughout the year for the The target beneficiaries of this initiative benefited - 125 (approx.) Production of Seed Paddy, Rice and are school heads, teachers, students, Maize. Al inputs and technical advice parents and the community in and (b) Number of persons directly is given to these farmers and the around Dompe area.
benefited - 630 (approx.) company buys back their produce, thus (c) Employment generated in the area - guaranteeing a market for these farmers Key deliverables: which eventual y ensures that income of (a) Adequate facilities and teachers in farmers are also enhanced.
(d) Income generated in the area - Rs. 5 mil ion (approx) per year Community Investment at
(b) Self-motivated students, parents, (e) Foreign exchange saving for the Link Natural
teachers and school heads country - Rs. 5 mil ion (approx.) Assessing Community Needs
(c) Improved examination results Link Natural is situated in Dompe The assistance and healthy relations (d) Contributing to development area where examination results maintained by the company, attractive of human values among the clearly indicate that the educational prices paid to the farmers, specific standards maintained by the schools benefits enjoyed by the farmers by are very poor. As a social y responsible Outgrower Project in Puttalam
cultivating ‘Katuwelbatu' crop and leading organization of the area, the the manner in which this project helps company conducted an investigation sustainable development of Sri Lanka, The company worked in close liaison on this vital issue and found that ensures the long-term sustainability of with over 125 resource strained , small reasons such as lack of infrastructure the project.
scale farmers in the difficult areas of facilities and equipment, not having the Puttalam District. These farmers teachers for certain key subjects, cultivate, primary process and supply Katuwelbatu, Elabatu, Visnukranthi, CIC Holdings PLC Annual Report 2010/11 Application Level - C
Standard Disclosures: Profile Disclosures
Disclosure Description 1. Strategy and Analysis 1.1 Statement from the most senior decision-maker of the organisation. 1.2 Description of key impacts, risks, and opportunities. 2. Organisational Profile 2.1 Name of the organisation.
2.2 Primary brands, products, and/or services. 2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries and joint ventures.
2.4 Location of organisation's headquarters.
Inner BackCover (IBC) 2.5 Number of countries where the organisation operates' and names of countries with either major operations or that are specifical y relevant to the sustainability issues covered in the Report.
2.6 Nature of ownership and legal form.
2.7 Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries).
2.8 Scale of the reporting organisation.
2.9 Significant changes during the reporting period regarding size, structure or ownership.
2.10 Awards received in the reporting period.
3. Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided.
3.2 Date of most recent previous report (if any).
3.3 Reporting cycle (annual, biennial, etc.) 3.4 Contact point for questions regarding the report or its contents.
3.5 Process for defining report content.
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.
3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations.
3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantial y diverge from the GRI Indicator Protocols.
3.10 Explanation of the effect of any restatements of information provided in earlier reports and the reasons for such restatement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).
3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the Report.
3.12 Table identifying the location of the Standard Disclosures in the Report. 3.13 Policy and current practice with regard to seeking external assurance for the Report. 4. Governance, Commitments and Engagement 4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organisational oversight. 4.2 Indicate whether the Chair of the highest governance body is also an Executive Officer.
4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or Non-Executive members.
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.  Ful y Reported  Partial y Reported  Not reported as per C level requirements CIC Holdings PLC Annual Report 2010/11 Disclosure Description 4.5 Linkage between compensation for members of the highest governance body, senior managers and executives (including departure arrangements), and the organisation's performance (including social and environmental performance).
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.
4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organisation's strategy on economic, environmental, and social topics.
4.8 Internal y developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental and social performance and the status of their implementation.
4.9 Procedures of the highest governance body for overseeing the organisation's identification and management of economic, environmental and social performance, including relevant risks and opportunities and adherence or compliance with international y agreed standards, codes of conduct, and principles. 4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental and social performance.
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation. 4.12 External y developed economic, environmental and social charters, principles or other initiatives to which the organisation subscribes or endorses. 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organisations in which the organisation: *Has positions in governance bodies; *Participates in projects or committees; *Provides substantive funding beyond routine membership dues; or *Views membership as strategic. 4.14 List of stakeholder groups engaged by the organisation. 4.15 Basis for identification and selection of stakeholders with whom to engage. 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. 4.17 Key topics and concerns that have been raised through stakeholder engagement and how the organisation has responded to those key topics and concerns, including through its reporting.
Standard Disclosures: Performance Indicators
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and Governments.
EC2 Financial implications and other risks and opportunities for the organisation's activities due to climate change. EC3 Coverage of the organisation's defined benefit plan obligations. EC4 Significant financial assistance received from Government. EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.
EC6 Policy, practices and proportion of spending on local y-based suppliers at significant locations of operation. EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. Indirect Economic Impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.  Ful y Reported  Partial y Reported  Not reported as per C level requirements CIC Holdings PLC Annual Report 2010/11 Disclosure Description EN1 Materials used by weight or volume. EN2 Percentage of materials used that are recycled input materials. EN3 Direct energy consumption by primary energy source. EN4 Indirect energy consumption by primary source.
EN5 Energy saved due to conservation and efficiency improvements.
EN6 Initiatives to provide energy-efficient or renewable energy based products and services and reductions in energy requirements as a result of these initiatives. EN7 Initiatives to reduce indirect energy consumption and reductions achieved. EN8 Total water withdrawal by source. EN9 Water sources significantly affected by withdrawal of water. EN10 Percentage and total volume of water recycled and reused. EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
EN12 Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. EN13 Habitats protected or restored. EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. Emissions, Effluents and Waste EN16 Total direct and indirect greenhouse gas emissions by weight. EN17 Other relevant indirect greenhouse gas emissions by weight. EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.
EN19 Emissions of ozone-depleting substances by weight. EN20 NOx, SOx, and other significant air emissions by type and weight. EN21 Total water discharge by quality and destination. EN22 Total weight of waste by type and disposal method. EN23 Total number and volume of significant spil s. EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped international y. EN25 Identity, size, protected status and biodiversity value of water bodies and related habitats significantly affected by the reporting organisation's discharges of water and runoff. Products and Services EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
EN27 Percentage of products sold and their packaging materials that are reclaimed by category. EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. EN29 Significant environmental impacts of transporting products and other goods and materials used for the organisation's operations and transporting members of the workforce. EN30 Total environmental protection expenditures and investments by type.
 Ful y Reported  Partial y Reported  Not reported as per C level requirements CIC Holdings PLC Annual Report 2010/11 Disclosure Description Social: Labour Practices and Decent WorkEmployment LA1 Total workforce by employment type, employment contract and region. LA2 Total number and rate of employee turnover by age group, gender and region. LA3 Benefits provided to ful -time employees that are not provided to temporary or part-time employees by major operations. LA4 Percentage of employees covered by col ective bargaining agreements.
LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in col ective Occupational Health and Safety LA6 Percentage of total workforce represented in formal joint management - worker health and safety committees that help monitor and advise on occupational health and safety programmes. LA7 Rates of injury, occupational diseases, lost days and absenteeism and number of work-related fatalities by region.
LA8 Education, training, counsel ing, prevention and risk-control programmes in place to assist workforce members, their families, or community members regarding serious diseases.
LA9 Health and safety topics covered in formal agreements with trade unions. Training and Education LA10 Average hours of training per year per employee by employee category. LA11 Programmes for skil s management and lifelong learning that support the continued employability of employees and assist them in managing career endings. LA12 Percentage of employees receiving regular performance and career development reviews.
Diversity and Equal Opportunity LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity.
LA14 Ratio of basic salary of men to women by employee category. Social: Human RightsDiversity and Equal Opportunity HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. HR4 Total number of incidents of discrimination and actions taken.
Freedom of Association and Col ective Bargaining HR5 Operations identified in which the right to exercise freedom of association and col ective bargaining may be at significant risk and actions taken to support these rights. HR6 Operations identified as having significant risk for incidents of child labour and measures taken to contribute to the elimination of child labour. Forced and Compulsory Labour HR7 Operations identified as having significant risk for incidents of forced or compulsory labour and measures to contribute to the elimination of forced or compulsory labour. Security Practices HR8 Percentage of security personnel trained in the organisation's policies or procedures concerning aspects of human rights that are relevant to operations. Indigenous Rights HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.
 Ful y Reported  Partial y Reported  Not reported as per C level requirements CIC Holdings PLC Annual Report 2010/11 Disclosure Description Social: SocietyCommunity SO1 Nature, scope and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. SO2 Percentage and total number of business units analysed for risks related to corruption. SO3 Percentage of employees trained in organisation's anti-corruption policies and procedures. SO4 Actions taken in response to incidents of corruption.
SO5 Public policy positions and participation in public policy development and lobbying. SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
SO7 Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly practices and their outcomes. SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and Social: Product ResponsibilityCustomer Health and Safety PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement and percentage of significant products and services categories subject to such procedures. PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle by type of outcomes. Product and Service Label ing PR3 Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements. PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and label ing, by type of outcomes. PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Marketing Communications PR6 Programmes for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion and sponsorship. PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes. PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.  Ful y Reported  Partial y Reported  Not reported as per C level requirements CIC Holdings PLC Annual Report 2010/11 Independent Assurance Statement The 2010/11 Sustainability Report of CIC Holdings PLC has undergone a third-party level check by STING Consultants, against the requirements of the GRI G3 Guidelines at C level. The Self Declared C level of this Report is hereby confirmed to be accurate.
The aim of this statement is to confirm to readers the extent to which the GRI G3 Guidelines have been applied in the preparation of this report. This does not represent in any way, an opinion on the value or quality of the report and its content, or of the sustainability performance of the reporting organization.
Tiara AnthoniszHead of Strategic Corporate ResponsibilitySTING Consultants CIC Holdings PLC Annual Report 2010/11

Source: http://cic.lk/reports/gri_g3_content_index.pdf