pioneering
Hela Apparel Holdings PLC | Annual Report 2022/23
P A R T N E R S H I P S

pioneering
P A R T N E R S H I P S
At Hela, we have navigated through challenging circumstances many times before, remaining poised and 
strong-willed, arising stronger and more resilient from these experiences. This reflects the strength of our 
roots, built on a network of pioneering partnerships with our valuable community of stakeholders. These 
relationships are the source of our courage and purpose, and the key to our unified future.
Our vision goes well beyond apparel manufacturing. We strive to create a positive impact in our 
communities across the world through our social capital-focused approach while working to establish 
a sustainability-centric apparel sourcing hub in Africa. The new partnerships we have forged during 
the past year, with stakeholders who share our vision for responsible growth, have strengthened our 
outlook and strategy.
As we journey purposefully into the future, our focus remains steadfastly on our long-term strategic 
relationships with our partners. We believe these visionary efforts will lay a stable foundation for a 
sustainable future for both us and our stakeholders.

Contents
Overview
Group Strategy
Capitals Report
Governance
About This Report	
4
About Us	
6
Performance Highlights	
16
Chairman’s Message	
19
Group CEO's Review	
23
Board of Directors	
26
Group Management Committee 	
30
Our Business Model	
32
Determining Material Issues	
34
Strategy and Resource Allocation 	
36
Our Socio-Economic Impact	
41
Stakeholder Engagement	
42
Integrating Sustainability	
44
Economic Value-added Statement	
48
Operating Environment	
50
Financial Capital	
56
Natural Capital	
64
Human and Social Capital	
74
Manufactured Capital	
92
Relationship Capital	
100
Intellectual Capital	
108
Corporate Governance	
114
Risk Management	
136
Annual Report of the Board of Directors  
on the Affairs of the Company	
140
Audit & Risk Committee Report	
146
Remuneration Committee Report	
150
Related Party Transactions Review Committee Report	
152
Nomination Committee Report	
154

Financial Statements
Supplementary Information
Statement of Directors’ Responsibility	
156
Independent Auditors’ Report	
157
Statement of Profit or Loss	
162
Statement of Comprehensive Income	
163
Statement of Financial Position	
164
Statement of Changes in Equity 	
166
Statement of Cash Flow	
168
Contents of the Notes to the Financial Statements 	
169
Notes to the financial statements	
170
Statement of Profit or Loss (US$)	
228
Statement of Comprehensive Income (US$)	
229
Statement of Financial Position (US$)	
230
Statement of Cash Flow (US$)	
232
Five Years Financial Summary - Group	
233
Investor Information	
235
United Nations Global Compact Highlights	
238
Group Companies and Directorate	
240
Glossary	
241
GRI Content Index 	
242
Notice of Meeting	
254
Form of Proxy	
255
Corporate Information 	
IBC

4  Hela Apparel Holdings PLC | Annual Report 2022/23
About This Report
This is the first Annual 
Integrated Report of Hela 
Apparel Holdings PLC 
(hereinafter referred to as 
“the Company”), together 
with its subsidiaries and 
equity-accounted investees 
(hereinafter referred to as “the 
Hela Group”). The report seeks 
to provide a comprehensive 
and balanced account of how 
the Hela Group created value 
for its stakeholders during the 
financial year ended 31 March 
2023. It also provides relevant 
information on the operating 
environment, corporate 
governance practices, and risk 
management, while reflecting 
on the future outlook.
REPORTING PERIOD
The report follows an annual reporting cycle and covers the 
financial period from 01 April 2022 to 31 March 2023. It 
builds on the Hela Group’s most recent report for the year 
ended 31 March 2022, for which comparatives are presented 
where applicable. 
Material events subsequent to the reporting period and up 
to the Board approval date of 05 September 2023 have also 
been included. The financial statements for the year ended  
31 March 2022 were restated as explained on page 56. Non-
financial information has not been re-stated as there was no 
impact on these disclosures. 
SCOPE AND BOUNDARY
The report covers financial and non-financial information 
necessary to assess the performance of the Hela Group. It 
captures the Group’s core business activities as a provider 
of sustainable, ethical, and innovative apparel supply chain 
solutions, and its operations in Sri Lanka, Kenya, Egypt, 
Ethiopia, and globally.
REPORTING FRAMEWORKS
The frameworks highlighted on the subsequent page have 
been applied in preparing this report, moving beyond 
regulatory compliance to incorporate international best 
practices into the reporting process. 
MATERIALITY
The report provides information on material themes that can 
significantly impact the Group’s ability to create value over the 
short, medium, and long term. Please refer to the Determining 
Material Matters section on page 34 for further details on the 
practices for determining materiality.
Chairman's
Message
Financial 
Statements
Operating 
Environment
Investor 
Information
19
155
50
235
This report is available in 
printed form and online at 
https://www.helaclothing.com/
A concise Integrated Annual 
Report in print form
PDF format

Annual Report 2022/23 | Hela Apparel Holdings PLC  5
Financial Reporting
-	
Sri Lanka Financial 
Reporting Standards
-	
Sri Lanka Accounting  
and Auditing Standards 
Act No.15 of 1995
-	
Companies Act No 7 of 
2007
-	
Integrated Reporting 
Framework of the 
International Integrated 
Reporting Council (IIRC)
-	
Guidelines for 
Presentation of Annual 
Reports 2022 issued 
by the Institute of 
Chartered Accountants 
of Sri Lanka
-	
Continuing Listing 
Requirements of 
the Colombo Stock 
Exchange
-	
Code of Best Practice on 
Corporate Governance 
issued jointly by the 
Securities & Exchange 
Commission of Sri Lanka 
and The Institute of 
Chartered Accountants 
of Sri Lanka
-	
GRI standards issued 
by the Global Reporting 
Initiative
-	
Communicating 
Sustainability 
Recommendations for 
Listed Companies issued 
by the Colombo Stock 
Exchange
-	
United Nations Global 
Compact (UNGC) 
-	
Gender Parity Reporting 
Framework of the Institute 
of Chartered Accountants 
of Sri Lanka
Narrative Reporting
Corporate Governance
Sustainability
COMBINED ASSURANCE
The integrity of the report is ensured through a combined 
assurance model. The content included in this Annual Report 
has been approved by the respective business heads and 
reviewed by the Group CEO and the Audit Committee prior 
to submission to the Board of Directors for approval. The 
financial statements have been audited by Hela’s external 
auditors, Messrs. PricewaterhouseCoopers. Their report is set 
out on page 157.
FORWARD-LOOKING STATEMENTS
The report includes forward-looking statements regarding the 
Hela Group’s future performance and prospects. While these 
statements represent judgements and future expectations 
at the time of preparing this report, several emerging risks, 
uncertainties and other important factors beyond the Group’s 
control could materially impact the results. We do not 
undertake to update or revise these statements publicly in the 
event of a change of circumstances.
FEEDBACK
The Hela Group continuously strives to improve the quality 
and readability of its Annual Report and values suggestions. 
Kindly direct your feedback to:
  investors@helaclothing.com
REPORTING IMPROVEMENTS
-	
Reporting in “accordance with” the GRI Standards
-	
Adopting a Capitals approach in line with the  
Integrated Reporting Framework 
-	
Alignment to the Code of Best Practice on Corporate 
Governance issued jointly by the Securities & Exchange 
Commission of Sri Lanka and the Institute of Chartered 
Accountants of Sri Lanka
BOARD RESPONSIBILITY STATEMENT
The Board of Directors of Hela Apparel Holdings PLC 
acknowledges its responsibility for ensuring the integrity 
of this Report. We hereby confirm that the 2022/23 
Annual Report fairly represents the Group’s integrated 
performance and addresses all relevant material matters 
that have a bearing on our ability to create value over 
the short, medium and long term. We also confirm that 
the Report has been prepared in accordance with the 
Integrated Reporting Framework of the International 
Integrated Reporting Council. 
The report was unanimously approved by the Board on 
05 September 2023 and is signed on its behalf by;
Group CEO
 Group Chief Financial Officer

6  Hela Apparel Holdings PLC | Annual Report 2022/23
About Us
MISSION
Our mission is to assist retailers 
in developing responsibly 
manufactured hero products 
through supply chain solutions 
that allow them to maintain 
optimum inventory at the most 
competitive retail price
VISION
To provide solutions to 
the stakeholders we serve 
through the principles 
of our focused social 
capital criteria centered 
on inclusivity, equity, and 
climate stability 
VALUES
Quality 
First
Innovation
Continuous 
Improvement 
Persistence 
System and 
Process Driven
Respect All 
Stakeholders
STRATEGIC PILLARS 
Customer-centric 
Focus
Supply Chain 
Agility & Integrity
Cost Leadership
Building Long-lasting 
Relationships

Annual Report 2022/23 | Hela Apparel Holdings PLC  7
Throughout the years, Hela’s focus has been on 
building strategic partnerships with global brands to 
provide apparel supply chain solutions with distinctive 
advantages. This customer-focused approach and 
forward-thinking strategy have helped the Company to 
forge ahead successfully and cement itself as an integral 
part of its customers’ supply chains. 
Today, Hela is one of the fastest-growing apparel 
manufacturers in the industry and was a pioneer in 
the development of the apparel manufacturing sector 
in Africa.  The company has a global presence with 
10 manufacturing facilities across Sri Lanka, Kenya, 
Ethiopia, and Egypt, as well as with design centres in 
Sri Lanka, the US, the UK and France. It also provides 
stable employment opportunities to approximately 
17,800 people across its global footprint.  
Sustainable, ethical and innovative apparel 
manufacturing is at the core of Hela’s operations. 
The organisation has ventured into and invested 
in multiple environmental and social sustainability-
driven initiatives. As a result of the commitment 
toward responsible manufacturing, the organisation 
was endorsed as a signatory to the UN Global 
Compact in 2021 and was awarded the ISO 14064-
1:2018 certification for quantification and reporting 
of greenhouse gas emissions across the group for the 
second consecutive year in 2022.
Hela Apparel Holdings 
PLC, founded and 
headquartered in Sri 
Lanka, is a social capital 
company built on the 
principles of inclusivity, 
equity, and climate 
stability. With over three 
decades of industry 
experience, the Group 
provides sustainable and 
ethical apparel supply 
chain solutions to some of 
the world’s leading brands 
across the Intimate Wear, 
Active Wear and Kids 
Wear product categories. 
Inclusivity 
Hela embraces diversity. We believe 
that a diverse workforce is a strength, 
and that each individual adds value to 
who we are as an organisation.
Equity 
We believe in creating an environment 
that focuses on developing the skills 
and strengths of all our employees. We 
continue to work towards bridging the 
gaps in equity across all aspects of the 
Company.
Climate Stability 
As an ethical and sustainable apparel 
manufacturer, we consider it our 
responsibility to ensure that our 
operations have the minimum negative 
impact on the planet.
Key Principles Aligned with Hela’s Focus on Social Capital

8  Hela Apparel Holdings PLC | Annual Report 2022/23
About Us
HISTORY
New leadership enters with a vision 
to build the next global apparel 
supply chain giant, building on a 
strong manufacturing base in Sri 
Lanka
Establishment of operations in 
Kenya with 250 team members
Hela becomes the leading apparel 
manufacturer in East Africa, 
accounting for approximately 20% 
of Kenya's and Ethiopia's total 
apparel exports
Successful completion of public 
listing on the Colombo Stock 
Exchange
First manufacturing facility in 
Ethiopia commences operations 
with 150 members  
Acquisition of second 
manufacturing facility in Ethiopia 
and first focused on bras, the 
most technical product in the 
Intimate Wear category
Establishment of first 
manufacturing facility in Egypt
2015
2016
2017
2019
2021
2022

Annual Report 2022/23 | Hela Apparel Holdings PLC  9
Sri Lanka
Kenya
Ethiopia
Egypt
Duty Free 
Destinations
EU | UK
EU | UK | US
EU | UK | JAPAN
EU | UK | US
Estimated  
Lead Time
EU - 17 days
EU - 26 - 28 days
EU - 21 days
EU - 7 - 8 days
US - 20 - 21 days
US - 30 days
US - 25 days
US - 15 days
Competitive 
Advantage
Agility & technical 
expertise
Skilled & committed 
workforce
Cost advantages to 
target niche markets
Proximity to key 
customer markets
STRATEGIC SOURCING SOLUTIONS
PRODUCT CATEGORIES 
Leveraging the Group’s design and innovation capabilities to deliver a technical offering combined with an attractive price,  
on-time delivery and high-quality assurance.
INTIMATE WEAR
KIDS WEAR 
ACTIVE WEAR 
Sleepwear 
Kids Fashion Wear
Fashion Active Wear
Kids Sleepwear
Tech Active Wear
Kids School Wear
Enhanced Performance Wear
Men’s Underwear 
Lingerie

10  Hela Apparel Holdings PLC | Annual Report 2022/23
About Us
GLOBAL MANUFACTURING CAPABILITY 
Hela’s global footprint spans 
across 07 countries in Asia, Africa, 
Europe and North America, 
with 10 directly-operated 
manufacturing facilities located 
in Sri Lanka, Kenya, Ethiopia and 
Egypt
6
Sri Lanka
1
Kenya
2
Ethiopia
1
Egypt
Manufacturing Facilities
SRI LANKA
Headquarters 
6 Manufacturing Facilities 
& Design Centre
ETHIOPIA
2 Manufacturing 
Facilities
KENYA
1 Manufacturing 
Facility 
EGYPT
1 Manufacturing 
Facility 
UNITED STATES 
OF AMERICA
1 Design Centre  
FRANCE
1 Design Centre  
UNITED 
KINGDOM
1 Design Centre  
10
04
04
17,800 
Directly Operated 
Manufacturing Facilities 
Design Centres  
Manufacturing  
Countries of Origin 
Employees

Annual Report 2022/23 | Hela Apparel Holdings PLC  11
Sri Lanka 
Kenya 
Egypt 
Ethiopia
Hela Thihariya 
Production Floor Space: 73,000 ft2 
Annual Production Capacity   
(SAH): 1,080,000  
Hela Mawathagama
Production Floor Space: 65,000 ft2
Annual Production Capacity   
(SAH): 660,000 
Hela Ukuwela
Production Floor Space: 26,000 ft2
Annual Production Capacity   
(SAH): 570,000
Hela Kenya 
Production Floor Space: 215,000 ft2
Annual Production Capacity   
(SAH): 2,900,000
Hela Ethiopia 
Production Floor Space: 236,000 ft2
Annual Production Capacity   
(SAH): 1,800,000
Hela Egypt 
Production Floor Space: 276,000 ft2
Annual Production Capacity   
(SAH): 1,120,000
Hela Palapathwala
Production Floor Space: 80,000 ft2
Annual Production Capacity  
(SAH): 870,000
Hela Narammala
Production Floor Space: 32,000 ft2
Annual Production Capacity  
 (SAH): 795,000
Hela Naula
Production Floor Space: 30,000 ft2
Annual Production Capacity   
(SAH): 600,000

12  Hela Apparel Holdings PLC | Annual Report 2022/23
About Us
CUSTOMER BASE 
Hela caters to a large market segment from high-end lifestyle brands such as Calvin Klein, Tommy Hilfiger and Michael Kors; to 
mass-market European supermarket chains such as Tesco and ASDA. The Group has become an integral component of each 
buyer’s value chain, by developing mutually beneficial, strategic partnerships that go beyond manufacturing.
REVENUE BY SHIPPING 
DESTINATION 
12%
59%
29%
FY 2022/23
USA
Other
UK & EU
REVENUE BY COUNTRY OF 
MANUFACTURE
8%
7%
46%
39%
FY 2022/23
Kenya
Sri Lanka
Egypt
Ethiopia

Annual Report 2022/23 | Hela Apparel Holdings PLC  13
Worldwide Responsible Accredited Production (WRAP) 
WRAP is an independent, not-for-profit organisation that certifies lawful, humane, and ethical 
manufacturing operations across the world for sewn goods, apparel, textiles, and related industries.
Sedex Members Ethical Trade Audit (SMETA)
SMETA is the most widely used accreditation for social audits in the world, which assesses the working 
conditions of manufacturing facilities and supply chains.
The Higg Facility Environmental Module (FEM) 
The Higg FEM tool assesses and standardises sustainability measures and evaluates organisational 
environmental performances, annually. 
The Social & Labor Convergence Program (SLCP) 
This program provides the tools to capture accurate data about working conditions in global supply chains 
and is a converged assessment focused on supporting stakeholders to improve working conditions.
The Supplier Compliance Audit Network (SCAN) 
SCAN is an industry trade association that ensures global compliance standards are achieved in reducing 
audit and operational redundancies for common supply chain stakeholders while maintaining confidentiality.
Intertek’s Global Security Verification (GSV) 
The Intertek GSV accreditation was established to assist importers and suppliers in evaluating their 
security procedures in accordance with international supply-chain security regulations. 
OEKO-TEX 100 
The OEKO-TEX 100 label certifies that every component of the product, from the fabric to the thread 
and accessories, has been rigorously tested against a list of up to 350 toxic chemicals, trusted worldwide. 
Better Work
Better Work unites governments, global brands, factory owners, unions and workers to improve working 
conditions in the global apparel and footwear industry.
PVH Gold Vendor Accreditation
The PVH Gold Vendor Accreditation recognises an organisation’s efforts to uphold the highest standards for 
its people and the environment as per the Corporate Social Responsibility standards of PVH Corp.
Global Organic Textile Standard (GOTS) 
GOTS was developed to define globally recognised sustainable standards for organic textiles from 
harvesting to manufacturing. Textiles certified by GOTS provide a credible assurance to the end 
consumer.
Global Recycled Standard (GRS)
GRS is an international, voluntary, full product standard that sets requirements for third-party certification 
of recycled content, chain of custody, social and environmental practices, and chemical restrictions.
The Organic Content Standard (OCS)
OCS is an international, voluntary standard that provides chain of custody verification for materials 
originating on a farm certified to recognised national organic standards.
COMPLIANCE AND PRODUCT CERTIFICATIONS
Strong commitment to maintaining high industry standards, benchmarked to global best practices.
GOTS
GRS
OCS

14  Hela Apparel Holdings PLC | Annual Report 2022/23
About Us
AWARDS
Best New Business Partner 2022
Jockey International
Bronze Award for Digital 
Workplace Initiatives
FITIS Awards 2023
Silver Award
Emerging Listed Companies
TAGS Annual Report Awards -  2022 
CA Sri Lanka
Merit Award for Connected 
Partner Ecosystems
FITIS Awards 2023
Silver Award for Connected 
Product/Service
FITIS Awards 2023
Dare to Dream Awards 2023  
Industry 4.0 Award
SAP and John Keells IT
Best Investor Relations 
Small-Cap Companies Category 
CFA Capital Market Awards - 
2022
Award for Impact Stories and ROI 
South Asian PVH P.A.C.E. 
Workshop 2023
Empowerment Award
TESCO Supplier Conference 
2023

Annual Report 2022/23 | Hela Apparel Holdings PLC  15
October 2022
Hela commenced  
implementation of  
SAP S/4HANA Fashion ERP 
system  to deliver enhanced 
business value for the 
organisation, through improved 
efficiency and productivity
May 2022 
Hela was awarded the 
prestigious ISO 14064-
1:2018 certification by the 
Sustainable Future Group 
(SFG) for quantification and 
reporting of greenhouse gas 
emissions across the Group
2022
May
2023
February
2023
January
2022
October
2022
April
2023
March
2023
April
February 2023 
Norfund announces 
US$14 million investment 
in Hela to support the 
strengthening of its 
presence in East Africa
April 2023 
Hela receives Gold Vendor 
Accreditation from PVH Corp., 
validating the organisation’s 
commitment to the highest 
social and environmental 
compliance standards
April 2022
January 2023 
March 2023 
 Establishment of ‘Hela 
Diridaruwo’ scholarship fund 
in partnership with Tesco 
and Berendina, to empower 
the educational aspirations 
of the children of Hela 
employees
Launch of GEAR (Gender 
Equality and Returns) 
programme in partnership with 
Better Work, a collaboration 
between the International 
Labour Organisation and 
the International Finance 
Corporation
Hela establishes its first 
in-house printing facility in 
Egypt in partnership with 
Screenline Holdings (Pvt) Ltd
MILESTONES

16  Hela Apparel Holdings PLC | Annual Report 2022/23
Performance Highlights
Unit
FY 2022/23
FY 2021/22
Financial Performance for the year ended 31st March
Revenue
Rs. Mn
 95,303 
 56,180 
Gross Profit 
Rs. Mn
 11,586 
 8,576 
Gross Profit Margin
%
 12.2 
 15.3 
Earnings Before Interest Tax and Depreciation (EBITDA)
Rs. Mn
2,509
2,992
Operating Profit
Rs. Mn
 630 
 2,257 
Profit / (Loss) Before Taxation
Rs. Mn
 (3,425)
 829 
Profit / (Loss) After Taxation
Rs. Mn
 (3,332)
 581 
Financial Position and Stability as at 31st March
Total Assets
Rs. Mn
 55,698 
 53,655 
Total Liabilities
Rs. Mn
 44,240 
 40,862 
Total Equity
Rs. Mn
 11,458 
 12,793 
Net Working Capital
Rs. Mn
9,499
 16,238 
Net Debt
Rs. Mn
 23,270 
 23,019 
Net Debt to EBITDA
Times
9.3
7.7
Gearing Ratio
Times
2.4
 2.2 
Current Ratio
Times
 0.8 
 0.9 
Investor Information as at the year ended 31st March
Last Traded Price per Share 
Rs.
 8.0 
 12.9 
Market Capitalisation
Rs. Mn
 10,480 
 16,810 
No. of Shares in Issue
Number
 1,309,955,933 
 1,303,117,944 
Financial Highlights

Annual Report 2022/23 | Hela Apparel Holdings PLC  17
FY 2022/23
FY 2021/22
Number of Employees
17,759
18,447
Investment in Training 
Rs. 12.2 Mn
Rs., 1.2 Mn
Employees Trained (Number)
7,946
4,338
Revenue per Employee 
Rs. 5.4 Mn
Rs. 3.0 Mn
Salaries and Wages
Rs. 8,534 Mn
Rs. 8,519 Mn
Incidents of Child Labour
Nil
Nil
Incidents of Forced Labour
Nil
Nil
No. of Persons Impacted by Social Development Initiatives
Over 11,000
Over 518
Significant Fines for Violation of Laws/ Regulations
Nil
Nil
Non-Financial Highlights
SOCIAL HIGHLIGHTS
FY 2022/23
FY 2021/22
Average Higg FEM Score
90%
89%
Energy Consumption (GJ)
86,880
99,774
Renewable Energy (%)
39%
53%
Water Withdrawal (Megalitres)
190,926
146,835
Water Quality – Incidents of Non-Compliance with Standards 
Nil
Nil 
Water Recycled through Effluent Ttreatment Plant (m3)
9,655
2,948
Waste Generated
2,880
2,795
Direct GHG Emissions (CO2e)- Scope 1
1,118
919
Indirect GHG Emissions (CO2e)- Scope 2
5,630
5,476
Other Indirect GHG Emissions (CO2e)- Scope 3
22,945
21,275
ENVIRONMENTAL HIGHLIGHTS

Chairman’s
Message
Dear Shareholders,
It is my pleasant duty to present the Annual Report of Hela Apparel 
Holdings PLC (the Hela Group) for the financial year ended 31 March 
2023, setting out how the Group navigated a particularly challenging 
and fast changing global operating environment. Central to this has 
been Hela’s continued focus on bolstering its strategic partnerships 
across a growing range of stakeholders. These relationships have 
enhanced the organisation’s resilience and will be a crucial source of 
strength in tackling the challenges ahead.
PIONEERING PARTNERSHIPS
As a well-established apparel supply chain solution provider to 
leading global brands, Hela has long had a focus on building strategic 
partnerships with its customers. This has been an important driver in 
the development of the Group’s global footprint, expanding product 
capabilities, and broader customer engagement approach. The receipt 
of both Jockey’s Best New Business Partner Award and Tesco’s 
Empowerment Award during the year demonstrate that this continues 
to be a core strength of the organisation.
However, Hela made a conscious effort in FY 2022/23 to expand its 
relationship-centric approach to a wider range of stakeholders. The 
Group’s supply chain was an immediate first step and building robust 
partnerships with suppliers whose values align with that of Hela has 
become central to its approach. Hela’s pioneering work in developing 
the apparel supply chain in Africa is a key area of success, and regional 
sourcing of raw materials for its manufacturing facilities in Africa grew 
by 45% during the year. This ensures a more cost effective, agile and 
resilient service offering for its customers. 
Hela’s digital transformation efforts are no less pioneering, and 
the organisation became one of the first companies in Sri Lanka to 
implement SAP S/4HANA Fashion ERP system during FY 2022/23. 
The two-year process, in partnership with Rizing, was completed in 
March 2023 and establishes the foundation for the Group’s streamlined 
‘Digital Core’. This will bolster Hela’s agility to navigate the volatile 
operating environment and strengthen management oversight with 
reliable real-time information. To add to this, Hela developed a landmark 
Manufacturing Execution System, which is one of the first such systems 
to be integrated with SAP S/4HANA Fashion ERP system. In recognition, 
Hela won the Industry 4.0 award at the Dare to Dream Awards 2023, 
held in partnership with SAP and John Keells IT.

20  Hela Apparel Holdings PLC | Annual Report 2022/23
Chairman’s Message
UPLIFTING OUR PEOPLE & COMMUNITIES
No partnership is more important for Hela than the 
relationships with its employee base of approximately 17,800 
across seven countries, and we view it as our responsibility 
to support our employees in all circumstances. Sri Lanka’s 
economic crisis in 2022 made this role especially critical, 
and Hela took on additional efforts to help its employees 
navigate this challenging period. The Company also expanded 
its efforts to strengthen their economic resilience through 
the Hela Diriliya initiative, which supports employees and 
their families to develop supplementary income streams. I’m 
pleased to say this programme now has over 600 participants 
across Hela’s Sri Lankan operations and will soon be expanded 
to its African footprint.
Hela further extended its efforts to support employees and 
their families during the year with the launch of the Hela 
Diridaruwo initiative in partnerships with Tesco. This provide 
scholarships to the children of Hela employees at secondary 
and undergraduate level, as well as educational programmes to 
unlock their potential. Over 450 children have benefitted and 
we look forward to expanding this further in the coming years. 
In addition, Hela continued its work towards strengthening 
its environmental and sustainability credentials, as part of its 
wider Environmental, Social and Governance (ESG) approach. 
The Group received the ISO 14064-1:2018 certification for 
quantification and reporting of greenhouse gas emissions for 
the second year in FY 2022/23, which will serve as a strong 
foundation for the development of a formal ESG strategy in 
future.
STRENGTHENING GOVERNANCE 
Hela Apparel Holdings PLC remains the only listed multinational 
apparel company on the Colombo Stock Exchange, reflecting 
the Group’s commitment to transparency and governance in 
the sector. A robust governance structure, comprehensive 
policy frameworks and improved internal controls support 
the organisation’s governance pillar. In addition, the Board 
increased its oversight of risk management in light of the 
challenging operating environment, and a Chief Risk Officer 
was appointed in April 2023 to strengthen this vital area. 
The composition of the Board of Directors was also refreshed 
during FY 2022/23. Ms. Aroshi Nanayakkara, who served as 
an Independent Non-Executive Director from the Company’s 
inception, resigned from her position. On behalf of the 
Board, I would like to take this opportunity to thank her for 
the invaluable contribution made to Hela over many years. 
In addition, I am pleased to welcome Mr. Shlomo Doron and 
Mr. Shesan Khan as Non-Executive Directors of the Board, 
both of whom bring additional expertise in the global retail 
and manufacturing sector that will be critical in supporting 
the company to navigate the rapidly evolving industry in the 
coming years.
From a financial perspective, FY 2022/23 was a particularly 
challenging period as a result of the volatile operating 
environment. Strong demand conditions in the first half of the 
year and the depreciation of the Sri Lankan rupee, contributed 
to revenue growth of 69.6% to Rs. 95.3 Bn. However, demand 
conditions deteriorated sharply across the Group’s key market 
in Europe and North America in the latter months of the year, 
as a result of the global surge in inflation, as well as the interest 
rate hikes deployed by major central banks in response. This 
has impacted order volumes in the apparel sector particularly 
heavily, intensifying competition and margin pressure. As a 
result, Operating Profit declined to Rs. 0.6 Bn in FY 2022/23, 
compared to Rs. 2.3 Bn in the previous year. Given the 
escalation of US Dollar interest rates across the year, the 
Group’s finance costs also rose significantly and contributed to 
a post-tax loss of Rs. 3.3 Bn. Despite this, the Group’s balance 
sheet remained in a robust position, and the Net-Debt-to-
Equity ratio was maintained at 2.0.
In this context, Hela sought to forge new financing 
partnerships to strengthen its financial resilience and support 
the continued development of its African footprint. Most 
notably, the Group entered a long-term loan agreement 
of up to US$ 14 million with Norfund – the Norwegian 
Hela Apparel Holdings 
PLC remains the 
only listed multinational 
apparel company on the 
CSE, reflecting the Group’s 
commitment to transparency 
and governance in the 
sector. A robust governance 
structure, comprehensive 
policy frameworks and 
improved internal controls 
support the organisation’s 
governance pillar

Annual Report 2022/23 | Hela Apparel Holdings PLC  21
government’s Development Finance Institution. The funds will 
be drawn in a prudent manner and will be used to support 
the upgrading of Hela’s operations in Africa, as well as 
strengthening of the organisation’s supply chain partnerships 
in the region. What’s more, this is an important demonstration 
of the confidence a well-respected global stakeholder has in 
the outlook for the business, as well as the strength of Hela’s 
environmental and social practices.
FUTURE OUTLOOK
Building on this and the numerous other partnerships 
established during the year, I believe the Group is robustly 
positioned to navigate the rapidly evolving operating 
environment. The short-term outlook for demand remains 
highly challenging. As such, the management is adopting 
an agile positioning and has established a comprehensive 
strategy to ensure a return to profitability in the very near 
future. This includes proactive measures to align the Group’s 
cost base and capacity with the reduced demand levels. The 
process improvements and digital systems implemented 
during the year will also be critical in this effort.
From a Board perspective, we will continue to provide 
strategic guidance to the management, as well as robust 
questioning of their assumptions, to ensure we fulfil our 
duties to shareholders. There is no doubt that there will be 
head winds and tail winds in the year ahead, and the Board 
remains vigilant to ensure that the Group remains on course 
to implement its strategy and deliver value to its shareholders.
ACKNOWLEDGEMENTS
Before concluding, I would like take this opportunity to 
thank the resilient team at Hela, ably led by the Group Chief 
Executive Officer Dilanka Jinadasa, for their commitment in a 
year of unprecedented challenges. I also thank our customers, 
suppliers, financiers, bankers, and other stakeholders for their 
continued assistance and support. In addition, I am particularly 
appreciative of the efforts of my colleagues on the Board of 
Directors who have contributed their valuable expertise to 
faithfully discharge our collective duties. I close by thanking 
our shareholders for their confidence in the Group as we look 
forward to creating value for them in the year ahead.
A. R. Rasiah
Chairman & Independent  
Non-Executive Director 
05 September 2023

Group CEO's 
Review
The past year has reinforced that increasing levels of global volatility 
are the new normal, rather than a temporary phase. As such, even as 
we focus on navigating these challenges in the short term, we must 
ensure that we are embedding resilience and agility in the foundation 
of everything we do. While FY 2022/23 was a year of significant 
challenges for Hela, I believe we’re on track to make substantial 
progress in positioning the Group to navigate an era of accelerating 
change, supported by a strong corporate governance framework, 
improved financial and risk management, and pioneering partnerships 
with our global community of stakeholders.
A YEAR OF TWO HALVES
FY 2022/23 was a year of two halves for both the Hela Group and the 
wider apparel industry. Consumer demand conditions remained strong in 
the early months of the year across our key markets in Europe and North 
America, as the post-pandemic boom in the sector continued. This is 
amply demonstrated by the fact that the Group’s US Dollar revenue grew 
by almost 15% in the first six months of the year, compared to the same 
period of FY 2021/22 (already itself a period of exceptional growth).
The continuation of these levels of growth was never sustainable and 
the surge in inflation in developed markets made a downturn inevitable 
as consumer spending power was undermined. Nonetheless, the speed 
of the shift in demand conditions was particularly dramatic and caught 
many off guard. This led to major apparel brands accumulating large 
stocks of inventory, which triggered an even more significant impact 
across the supply chain. As a result, we saw a 15% drop in our US Dollar 
revenue in the second half of the year, and closed FY 2022/23 with a 
top-line largely unchanged from the previous year. That said, as a result 
of the significant depreciation in the Sri Lankan Rupee during this period, 
revenue in our reporting currency increased by 69.6%, to Rs. 95.3 Bn. 
NAVIGATING VOLATILITY
The volatile demand environment also came in the context of severe 
economic pressures across our operating countries. The economic 
crisis in Sri Lanka was the most acute, as severe shortages of foreign 
exchange contributed to extended electricity outages, shortages of 
fuel and other essential goods, and constrained US Dollar liquidity 
in the local banking sector. While this created substantial challenges 
for our operations, I’m proud of the tireless efforts made by Hela’s 
management team and the wider local industry to ensure the disruption 
had minimal impact on customer deliveries. This has been critical in 
protecting Sri Lanka’s global reputation as a reliable sourcing partner. 
Nonetheless, ensuring the resilience of our operations and supporting 
our employees during this challenging period contributed to an increase 
in the Group’s cost base. As well as proactively purchasing stocks 
of fuel to ensure continuous operation of generators and transport 
facilities, we provided additional support and salary increments to our 
Sri Lankan employees. Similar economic pressures across our operating 
countries, while less severe, also required proactive mitigation measures 
and contributed to the Group’s cost base during the year.
As a result of these additional costs and the significant reduction in 
capacity utilisation in the latter months of the year, gross profit margins 
narrowed to 12.2% in FY 2022/23. This was in comparison to 15.3% 
posted in the previous financial year.

24  Hela Apparel Holdings PLC | Annual Report 2022/23
Group CEO's Review
A significant increase in distribution expenses further 
undermined operating profit margins, which reduced by 
330bp to 0.7%. This was primarily the result of a temporary 
labour dispute at our Kenyan manufacturing facility in the final 
weeks of FY 2021/22 that, while rapidly resolved, created 
a significant knock-on impact on production in the first two 
quarters of FY 2022/23. As such, it triggered a marked 
increase in unplanned air freight costs to ensure customer 
delivery timelines were maintained. That said, our increased 
focus on operational excellence, ensured that this impact had 
faded by the final quarters of the year.
Nonetheless, due to the decline in gross and operating 
margins, coupled with a substantial rise in finance costs 
driven by the increase in US dollar interest rates, the Group 
closed the year with a substantial post-tax loss of Rs. 3.3 Bn. 
This is clearly not the performance we were seeking, and as 
a management team we took significant proactive steps to 
respond to the change in market conditions in the second half 
of the year. This included the freezing of recruitment, as well 
the amalgamation of two nearby manufacturing facilities in 
Sri Lanka to reduce overhead costs. However, the particularly 
rapid nature of the shift in demand meant that these 
proactive steps were not able to entirely protect our bottom 
line. The adjustments to our financial statements arising from 
the implementation of our new SAP S/4HANA Fashion ERP 
system were a further unexpected development that primarily 
represents the limitations of our previous systems, rather than 
our operational performance, and place us on a more solid 
financial base moving forward.
POSITIONING TO UNLOCK VALUE
Despite the challenges, I’m reassured by the significant strides 
we made during the year in positioning the organisation 
to meet the challenges ahead and unlock greater value in 
the context of an ever more volatile global environment. 
From a sales perspective, we made important advances in 
strategically diversifying our customer base. Victoria’s Secret 
was a notable addition to our client portfolio during the year 
and there is significant scope to grow our penetration with 
this global brand, even in a challenging market environment. 
This addition was also the direct result of our attractive multi-
country footprint. Proving the prescience of the decision to 
enter Egypt in FY 2021/22, speed continued be a critical 
focus across the apparel sector during the year and I’m 
confident our unique manufacturing base will be a key source 
of resilience for the organisation in future.
Hela’s relatively new Active Wear pillar also made substantial 
progress during FY 2022/23. Our relationships with the 
fast-growing European Sports Wear brand, Castore, is proving 
particularly fruitful. We have expanded our product portfolio 
significantly with this customer to include technical apparel for 
some of the world’s best known sports team. This is a clear 
example of the success of our strategic customer engagement 
approach, which remains a core strength of the organisation 
as demonstrated by the awards received from Jockey and 
Tesco this year. 
BUILDING A RESILIENT SUPPLY CHAIN
Hela’s supply chain is central to the value proposition we 
provide to our customers, and we extended our efforts to 
ensure its resilience during the year under review. A formal 
supply chain management programme is at the heart of this, 
which focuses on identifying suppliers that align with the 
values of both Hela and our customers, and aims to build 
sustainable long-term partnerships. This was supported by 
the establishment of our Code of Conduct for suppliers and 
Cotton Fibre Sourcing policy during FY 2022/23.
In addition, we have made significant progress in our supply 
chain regionalisation efforts, which are at the core of building 
a truly resilient and agile supplier base. Already more than 80% 
of the raw materials used in our Sri Lankan manufacturing 
facilities are sourced from the Indian Sub-continent. But 
through our pioneering supply chain development initiatives in 
Africa we grew our Africa-for-Africa regional sourcing by 45% 
in FY 2022/23, to approximately 25% of the total requirement. 
This still leaves significant room for further expansion, and I’m 
confident the formalisation of these efforts under the Interlock 
Africa initiative will see this rise further.
Our landmark financing agreement with Norfund – the 
Norwegian government’s Development Finance Institution 
– is a great example of how we are forging partnerships with 
stakeholders that share our vision for a robust, responsible, 
and vertically-integrated apparel industry in Africa. A 
substantial portion of this long-term borrowing facility will 
go towards supporting our regional supply chain partners to 
expand, as well as the strengthening of our own operations in 
Africa. A similar financing agreement with the leading impact 
investment fund, Aavishkaar Capital, in the current financial 
year will further bolster these efforts. These developments 
reflect the diversification of Hela’s financing base, as well as 
being a huge vote of confidence in the long-term outlook for 
the business in a volatile period. 
REALISING OUR DIGITAL TRANSFORMATION
Hela’s digital transformation journey reached its largest 
milestone in April 2023, with the full implementation of SAP 
S/4HANA Fashion ERP system. This is the culmination of 
a two-year process, in partnership with Rizing, to create a 
future-proof ‘Digital Core’ that will underpin the next stage of 
the organisation’s journey. 
This process has not been without obstacles and unexpected 
developments (as the adjustments to our financial results 
demonstrate), but I have no doubt that this places the 
organisation in a fundamentally more agile and resilient 
position to meet the challenges ahead. The enhanced ability 
to track key performance indicators in near-real time is truly 
transformational in a volatile global environment, and I look 
forward to the full value of our Digital Core being realised in 
the current year. The implementation will also improve the 
integrity of our internal and external reporting, as well as our 
financial and risk controls. We supported this by proactively 
strengthening our risk management function with the 
recruitment of a Chief Risk Officer during the year, who will 
implement a group-wide risk management framework.

Annual Report 2022/23 | Hela Apparel Holdings PLC  25
I must also commend our Enterprise Process and Digital 
Solutions team for their pioneering work in the development 
of our in-house Manufacturing Execution System, which 
comprehensively integrates our manufacturing operations 
with SAP S/4HANA Fashion ERP system. Not only was this 
recognised with multiples awards during the year, but it also 
presents a new opportunity to diversify our business model 
by offering this system to other manufacturing companies 
implementing SAP S/4HANA Fashion ERP system. We are also 
continuing to explore the opportunity to integrate our Digital 
Core with the systems of our customers and suppliers to create 
a more widely integrated solution. As such, we see a strong 
path ahead for the continuation of our digital transformation.
EMPOWERING OUR EMPLOYEES
Our employees and their communities remain at the centre 
of everything we do and their resilience is inextricably 
linked with Hela’s own. Despite the challenging operating 
environment, I’m proud to say we significantly expanded our 
efforts to support our employees during FY 2022/23. This 
starts with our core human resources function, which went 
above and beyond in supporting our employees through one 
of the most challenging periods they’ve faced, including with 
the provision of essential food items during the worst of Sri 
Lanka’s economic crisis. 
Our range of social capital initiatives supplement this by 
aiming to contribute to the lives of our employees and 
their families in a meaningful way. We continued to expand 
our implementation of Personal Advancement and Career 
Enhancement (P.A.C.E.) during the year, the industry-leading 
life skills training programme, and became the first company 
to implement the initiative in Egypt. Our leading role in 
expanding the programme globally has been recognised by 
our customers and we are well on our way to our target of 
training 5,620 team members by 2024.
In addition, we partnered with Better Work – a collaboration 
between the ILO and IFC – to implement the Gender Equality 
And Returns (GEAR) initiative in Sri Lanka. This provides 
identified female employees with both technical and soft 
skills training, aimed at unlocking new careers opportunities 
and increasing female representation in management. This 
added to the work done through our innovative home-grown 
Diriliya initiative, which was expanded significantly during the 
year as a key means of supporting the economic resilience of 
our employees. We look forward to extending this innovative 
programme to our African footprint, as well as continuing to 
grow the Hela Diridaruwo scholarship programme with the 
generous support of Tesco.
ENHANCING SUSTAINABILITY
Enhancing our sustainability efforts continues to be a key focus 
for Hela, to mitigate both the environmental impact of our 
operations and the products we manufacture. Our dedicated 
sustainability team made significant strides during the year under 
its strategic theme, ‘Only One Earth’, on our journey towards 
establishing a holistic Environmental, Social and Governance 
(ESG) strategy for the Group. This broadens our existing 
structures that ensure the highest levels of environmental 
compliance, with a clear strategic purpose to ensure we are 
proactively contributing to the global efforts to reach Net Zero. 
The alignment of this report to the standards of the Global 
Reporting Initiative – a first for Hela – also demonstrates 
our commitment to transparency in the reporting of our 
environmental impact and progress in mitigating this. In 
addition, I take this opportunity to reaffirm our commitment 
to the UN Global Compact and its guiding principles as we 
continuously strive to be a more sustainable and inclusive 
Company.
OUTLOOK
Strengthened by the advances we made in FY 2022/23, I 
believe Hela is robustly positioned to meet the challenges 
ahead. Even so, economic conditions in our key markets 
continue to be exceptionally challenging and a recovery 
appears unlikely until late in the current financial year. 
As such, to ensure we effectively navigate this period, we 
have launched a comprehensive Group-wide strategy entitled 
Project 180° to drive a sustainable return to profitability 
based on conservative demand expectations. This focuses 
on four major pillars: (i) Cost & Capacity Rationalisation; (ii) 
Operational Excellence; (iii) Incomparable Product & Services; 
and (iv) Strategic Investments. This will require further difficult 
decisions, but it is critical to ensuring we complete our 
journey to embed resilience at the core of the organisation. 
This also reflects the understanding that in a fast-evolving 
industry we cannot afford to stand still, even in the most 
challenging market circumstances. As such, even as we seek  
to stabilise our core operations, we will not shy away from the 
strategic investments needed to evolve our business model 
and build long-term value. 
ACKNOWLEDGEMENTS
On behalf of the Hela management team, I would like to take 
this opportunity to sincerely thank our experienced Board of 
Directors who provided crucial guidance in a year marked by 
turbulence. I am also deeply appreciative of the commitment 
and resilience demonstrated by the Hela team, from those 
on the factory floor to the senior management. Finally, I 
wholeheartedly thank our valued community of stakeholders, 
including our customers, suppliers, and financiers, for their 
continued partnership in spite of a challenging year and 
look forward to greater levels to collaboration in the year 
ahead. In closing, I thank our shareholders for their continued 
confidence in Hela and reiterate our commitment to delivering 
value to you.
Dilanka Jinadasa
Group CEO & Executive Director
05 September 2023

26  Hela Apparel Holdings PLC | Annual Report 2022/23
Board of Directors
Mr. A. R. Rasiah
Chairman &  
Independent Non-Executive 
Director 
Mr. A. R. Rasiah is a Fellow Member of the Institute of Chartered Accountants 
of Sri Lanka and a finalist of the Chartered Institute of Management 
Accountants (UK). He holds a Bachelor of Science Degree from the University 
of Ceylon. He currently serves on the Boards of several subsidiaries of Hela 
Apparel Holdings PLC. Mr. Rasiah’s illustrious career both in finance and 
commerce spans over forty years. He started his career with Ernst and Young 
and later served at Mercantile Group of Companies as Group Accountant and 
Almulla Group of Companies, Kuwait as Divisional Controller. Finally, he joined 
Nestleˊ Lanka PLC as a Director in 1994, acted as Managing Director on 
many occasions and was with the Group until his retirement. He was formerly 
the Chairman of Atlas Axillia (Pvt) Ltd, immediate past Chairman of the Sri 
Lanka Institute of Directors and former Senior Director of Nations Trust Bank 
PLC. Mr. Rasiah currently serves as an Alternate Director to the Chairman 
of Gestetner of Ceylon PLC. He also holds Directorships on the Boards of 
Fintek Managed Solutions (Pvt) Ltd, Clindata Lanka (Pvt) Ltd, Sunshine Tea 
Co (Pvt) Ltd and Watawala Plantations PLC. He is a keen sportsman who has 
represented Sri Lanka at Table Tennis.
Dilanka is the Group Chief Executive Officer of Hela Apparel Holdings PLC 
and was a part of the leadership team that drove the company to become one 
of the most progressive apparel manufacturers in Sri Lanka. He was formerly 
the Managing Director of Foundation Garments (Pvt) Ltd, which was acquired 
by Hela in 2016, and was a Non-Executive Director of Panasian Power PLC 
until 2021, where he played a key role in growing its renewable energy 
portfolio.
Mr. Dilanka Jinadasa
Group CEO &  
Executive Director

Annual Report 2022/23 | Hela Apparel Holdings PLC  27
Dr. Alastair Alderton 
Non-Executive Director 
Alastair is the Chief Executive Officer of Rianta Capital, a London and Zurich-
based multi-asset investment advisory firm, where he is responsible for 
managing a dynamic investment portfolio with a strong footprint in consumer-
facing businesses and direct-to-consumer retail. He also provides his strategic 
insights on various board mandates, including Australian fashion retail company 
Forever New and luxury knitwear brand Chinti & Parker. In addition, Alastair 
is a Solicitor of the Senior Courts of England and Wales with a decade of 
transaction and advisory experience at Clifford Chance, and holds a PhD in 
History from the University of Cambridge. 
Mr. Shlomo Doron 
Non-Executive Director 
Shlomo is a well-established figure in the international apparel industry, 
with extensive experience in leadership roles across various areas of the 
business, including supply chain management, purchasing, marketing, customer 
relationship management, product development, and sustainability. He has also 
been responsible for driving significant improvements in operational efficiencies 
and profitability across a number of companies. He previously served as Chief 
Operating Officer & Deputy Chief Executive Officer of Delta Galil Industries, 
as well as Chief Operating Officer of DIM/DB Apparel, and Chief Executive 
Officer of Intimate Apparel at Courtauld Textiles. He was also engaged as a 
consultant by Brandix Apparel until 2019 and has been a consultant to the Hela 
Group since 2020.

28  Hela Apparel Holdings PLC | Annual Report 2022/23
Board of Directors
Mr. Shesan Khan 
Non–Executive Director 
Shesan is a Senior Investment Manager at Rianta Capital, a London and 
Zurich-based multi-asset investment advisory firm. He co-manages the Private 
Equity portfolio with a strong focus on consumer facing businesses across 
various geographies. During his time at Rianta, Shesan has closed cross-border 
transactions in the US, Germany, Spain, India, Australia and Sri Lanka. Prior to 
joining Rianta Capital, Shesan worked for Deloitte, the renowned international 
consulting & accounting firm, where he specialised in financial due diligence 
services for industry conglomerates and financial institutions. He holds a 
Bachelor’s Degree in Banking & Finance and a Master’s Degree in Management.
Mr. Gayan Gunawardana 
Independent Non-Executive 
Director 
Gayan serves as an Independent Non-Executive Director and Chair of the Audit 
& Risk Committee and Related Party Transactions Review Committee of Hela 
Apparel Holdings PLC. With over 14 years of experience in Finance, Strategic 
Planning, Audit and Corporate Governance, Gayan was the former Chief 
Financial Officer at Panasian Power PLC. He is also a member of the Institute of 
Chartered Accountants in England and Wales (ICAEW) and holds a BSc (Hons) 
from the University of Warwick in Engineering and Business Studies.

Annual Report 2022/23 | Hela Apparel Holdings PLC  29
Trisha currently serves as the Head of Research at CAL, a full-service Investment 
Bank in Sri Lanka. With a decade of industry experience, she plays a pivotal 
role in providing macroeconomic views and advising on portfolio decisions 
for some of Sri Lanka’s largest corporations and investment funds. Trisha is a 
CFA charter holder and was the former head of Economic Research at Frontier 
Research (Pvt) Ltd. She is also a member of the Board of Trustees of the CEPA 
Development Fund.
Ms. Trisha Peries 
Independent Non-Executive 
Director 
Patrick serves as a Senior Investment Manager at Rianta Capital, a London and 
Zurich-based Investment advisory firm with a strong footprint in the global 
fashion industry. During his tenure at the firm, he has closed several cross-
border transactions across Europe, Asia and North America, predominantly in 
the consumer discretionary space. Prior to joining Rianta Capital, Patrick worked 
for the Swiss Investment Fund for Emerging Markets, focusing on investments 
in the Healthcare, Education and Renewable Energy sectors in India and 
Sub-Saharan Africa. Patrick holds a Master’s Degree in Management from the 
University of Lausanne, Switzerland, and is a CFA charter holder.
Mr. Patrick Schleiffer 
Non-Executive Director

30  Hela Apparel Holdings PLC | Annual Report 2022/23
Group Management 
Committee 
Dilanka Jinadasa 
Group Chief Executive 
Officer
Viraj Fernando
Chief Executive Officer - 
Active Wear
Sachith Balage
Director – Group Sourcing 
& Supply Chain
Udena Wickremesooriya 
Advisor to the  
Hela Group
Ruwan Fernando 
Group Chief Financial 
Officer
Aroshan Indujeeva 
Group Chief Risk Officer
Sajeewa Dissanayake
Chief Executive Officer - 
Intimate Wear
Ruwanthi Fernando
Group Chief Information 
and Process Officer
Sanath Amaratunga
Chief Executive Officer - 
Kids Wear
Kaushala Prematilake
Group Chief People 
Officer

partnerships
O F  I M P A C T
Group Strategy

32  Hela Apparel Holdings PLC | Annual Report 2022/23
Our Business Model
The Hela Group’s business model is graphically presented below and demonstrates how key capital inputs (as defined by the 
Integrated Reporting Framework) are transformed through the value creation process, to generate outputs and outcomes for its 
main stakeholders.
-	 Shareholders’ Funds:
	
Rs. 11.5 Bn
	
Net Debt: Rs. 23.3 Bn 
-	 Employees: approximately 17,800 
-	 Investment in Training & 
Development:: Rs 12.15 Mn
-	 Diverse portfolio of customers 
across a range of distribution 
channels, market segments and 
geographies. 
-	 Strategic partnerships with world-
class suppliers
-	 Certifications/ Accreditations
-	 Experienced employee base
-	 Capex: Rs. 1.3 Bn
Financial resources which are key to 
carrying out business activities.
Empowered workforce whose skills, 
experience and passion support 
delivery of strategic objectives. 
Strong relationships that underpin the 
Hela Group’s reputation and the trust 
of key stakeholders.
Innovation and design capabilities, 
tacit-industry knowledge, and robust 
systems that drive competitive 
advantage.
Modern manufacturing facilities 
enabling high quality and efficient 
production.
Natural resources sourced responsibly 
and used efficiently.
Financial Capital
Human & Social Capital
Relationship Capital
Intellectual Capital
Manufactured Capital
Natural Capital
Evolving consumer 
& apparel sourcing 
preferences
Government 
policies
Implications  
of climate 
change  
Economic 
trends and 
volatility
Inputs
Value Creation Process
Corporate Governance (Page 114)
Risk Management (Page 136)
Impacts from the Operating Enviroment (Page 50)
A Social Capital Company 
Social Sustainability
Environmental Sustainability
Climate Stability
Mission
Purpose
Values
Inclusivity
Equity
So
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an
d 
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Sustainable, 
Ethical &  
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Apparel Supply 
Chain Solutions
M
A
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P
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D
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er
y 
   
  
   
   
  
   
   
  
   
  
  
-	 Investment in Renewable Energy: 
Rs. 28.1 Mn
-	 Training in Sustainability Literacy: 
40 sessions

Annual Report 2022/23 | Hela Apparel Holdings PLC  33
Manufactured Capital
-	
PPE: Rs. 9.0 Bn 
Natural Capital
-	
Zero Landfill
-	
Average HIGG FEM Score of 
90% across all Facilities
Financial Capital
-	
Rs. 95.3 Bn Revenue
-	
Rs. 3.3 Bn Loss After Tax
-	
Rs. 55.7 Bn Total Assets
Human & Social Capital
-	
Rs. 5.4 Mn Revenue per 
Employee
Relationship Capital
-	
Customer Awards
-	
Supply Chain Regionalisation
Intellectual Capital
-	
30% Design Hit Rate 
-	
New Certifications Obtained 
during the Year: 4
-	
No. of Processes / Workflows 
Standardised: 201
Outputs
Outcomes
Carbon 
Footprint
31,613 MT CO2e
Production 
Volume:
 10.7 Mn Standard  
Hours Output
Solid Waste 
Generated:
2,880 MT

34  Hela Apparel Holdings PLC | Annual Report 2022/23
Determining Material Issues
Material issues are matters that are of importance to the Hela Group, in forming business strategy and in creating value in the 
short, medium and long term. Our material issues are determined through a rigorous assessment conducted annually.
The Materiality Process |  
Defining What Matters Most
Material Themes |  
Outcomes of the Materiality Process
1.  IDENTIFY 
2.  PRIORITISE 
-	
Current and potential environmental, 
social, governance and economic 
impacts relevant to the Hela Group’s 
business are identified.
-	
Each issue is scored based on the impact 
and significance to the Group and its 
stakeholders to obtain a consolidated 
score, thereby establishing the relative 
impact. 
-	
Each issue is then plotted on a 
materiality matrix. 
3.  INTEGRATE
-	
Material topics are thereafter 
integrated into the business strategy by 
contextualising into the Group’s strategic 
priorities (Refer page 36).
4.  CONTINUOUS ASSESSMENT
-	
The identified material topics are 
continuously assessed throughout the 
year, to ensure the business strategy 
remains relevant.
Materiality Themes
Material Topic
Fair & Ethical Labour 
Practices
1
2
3
4
5
6
7
GRI 408	Child labour
GRI 409	Forced or compulsory labour
GRI 407	Freedom of association and 
collective bargaining
GRI 412	Human rights assessment
GRI 406	Non-discrimination
GRI 405	Diversity and equal 
opportunity
GRI 205	Anti-corruption 
Compliance
8
9
Non GRI Environmental compliance
Non GRI Social compliance
Occupational Health & 
Safety
10
GRI 403	Occupational health and 
safety
Employee Engagement & 
Development
11
12
13
GRI 402	 Labour/Management relations
GRI 401	Employment
GRI 404	Training and education
Economic Performance
14
15
16
GRI 201	Economic performance
GRI 207	Taxation
GRI 202	Market presence
Sustainable Supply Chains
17
18
GRI 204	Procurement practices
GRI 414	Supplier social assessment
Energy & GHG Emissions
19
20
GRI 305	Emissions
GRI 302	Energy
Materials & Waste
21
22
GRI 301	Materials
GRI 306	Waste
Water Stewardship
23
GRI 303	Water & effluents
Sustainable Community 
Development
24
GRI 413	Local communities
Customer Satisfaction
25
26
27
Non GRI High service levels
GRI 417	Marketing and labelling
GRI 416	Customer health and safety

Annual Report 2022/23 | Hela Apparel Holdings PLC  35
Materiality Matrix I  
Prioritising What Matters Most 
Relevant UNSDG
        
  
   
    
  
  
     
 
Low
Critical
12, 13, 23
1, 2, 3, 4, 5, 6, 8, 
9, 10, 11, 14, 17, 
19, 25
Critical
26
7, 16, 20,  
22, 24
15, 18, 21
27
Low
Significance to Stakeholders
Significance to Group
 Economic     Environmental     Social
The Hela Group is committed to delivering a meaningful impact on the 
UN Sustainable Development Goals (UNSDGs). Our material issues are 
linked with 13 of the 17  UNSDGs and relevant targets.
No 
Poverty
Zero 
Hunger
Quality
Education
Gender
Equality
Economic
Growth
Climate
Action
Life
Below
Water
Partnership
for the
Goal
Life
on Land
Peace,
Justice,
& strong
Institution
Reduced
Inequalities
Sustainable
Cities
Respon-
sible
Consum-
ption
Clean
Energy
Industry,
Innovation,
 Infrastructure
Clean
Water
& Sanitation
Good Health
& Well Being
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
SUSTAINABLE
DEVELOPMENT
GOALS

36  Hela Apparel Holdings PLC | Annual Report 2022/23
Strategy and Resource 
Allocation 
RESPONDING FROM A PLACE OF PURPOSE 
The Hela Group is deeply committed to its purpose: To 
provide solutions to the stakeholders we serve through the 
principles of our focused social capital criteria centred on 
Equity, Inclusivity and Climate Stability.
What’s more, as a social capital focused company, the Group 
firmly believes that to create sustained value, it must do so 
from a place of purpose. As such, Hela’s long-term strategy is 
focused on growing shared value with all stakeholders and is 
underpinned by the strategic partnerships it fosters with these 
actors. Many of these partnerships are pioneering within the 
global apparel industry and provide a solid foundation for the 
organisation’s future development. 
PIONEERING 
PARTNERSHIPS
CUSTOMERS
Hela focuses on building strategic partnerships 
with its customers by providing innovative 
solutions to their supply chain challenges.
Refer Relationship Capital page 100
LENDERS 
The Hela Group entered a 
landmark financing agreement  
of up to US$ 14 million with 
Norfund in February 2023, to 
support the strengthening of its 
African operations.
Refer Finance  
Capital page 56
INVESTORS
In February 2022, Hela became 
the first multinational Sri Lankan 
apparel manufacturer to be 
listed on the Colombo Stock 
Exchange. 
Refer History page 08
SUPPLIERS
Hela collaborates closely with its 
suppliers to drive strategic objectives, 
such as increased traceability and 
regionalisation of its raw materials.
Refer Relationship Capital page 100
EMPLOYEES
Hela is partnering with the 
ILO and IFC to implement the 
GEAR (Gender Equality and 
Returns) programme in  
Sri Lanka.
Refer Human and Social 
Capital page 74
TECHNOLOGY 
PARTNERS
Hela partnered with Rizing 
to become one of the 
the first companies in Sri 
Lanka to implement SAP 
S/4HANA Fashion ERP 
system.
Refer Intellectual Capital 
page 108

Annual Report 2022/23 | Hela Apparel Holdings PLC  37
GROUP STRATEGY IN FY 2022/23 
Following a milestone year of growth for the Hela Group in  
FY 2021/22, including its landmark listing on the Colombo 
Stock exchange, expansion of its manufacturing footprint to 
Egypt, and addition of new manufacturing capabilities and 
customers, the Group focused on consolidating its business 
and optimising resources in FY 2022/23 in the context of 
a particularly challenging demand environment in its key 
markets. This was guided by the Hela Group’s six strategic 
priorities, which ensure a focus on its long-term strategic 
vision and the interests of a broad range of stakeholders.
While the outlook for the current financial year remains 
challenging, the strategic work undertaken over the past 
few years has placed the Hela Group in a robust position 
to benefit from the eventual recovery in global economic 
conditions. In particular, the Group’s agility and flexibility,  
innovative partnerships and strengthened balance sheet, 
will  support it  to capitalise on new opportunities as they 
arise and unlock the organisation’s full potential in delivering 
sustainable value.
  
LINK TO MATERIAL THEMES
The Group’s  strategy is responsive to its material themes 
and the matters they comprise (refer Determining Material 
Matters on page 34). In executing its strategy, the pools 
of capitals available are used and, in turn, impacted by 
the strategy itself. The allocation of resources is regularly 
reviewed to ensure that they are being made best use of in 
creating sustained value for stakeholders.
STRATEGIC 
PRIORITIES
STRATEGIC 
 ACTIONS
RESOURCE  
ALLOCATION
HIGHLIGHTS OF  
FY 2022/23
Shareholder value 
creation
-	
Grow new product 
categories with higher 
contribution margins 
-	
Acquire new customers and 
increase penetration with 
existing customers
-	
Pursue growth in new & 
non-traditional markets
-	
Focus on margin 
improvement by driving 
operational excellence, 
as well as optimisation of 
capacity and working capital 
management  
-	
Mitigate external financial, 
economic and political risk
-	
Diversify funding sources to 
support strategic objectives
-	
Relationship Capital: 
	
Leveraging strategic 
customer relationships to 
drive revenue
-	
Human Capital:
	
Workforce of 
approximately 17,800 
including 170 design and 
technical employees
-	
Manufactured Capital:
	
10.7 Mn standard hours 
output
-	
Finance Capital:
	
Settlement of debt 
-	
69.6% revenue growth
-	
Strengthened balance sheet 
-	
Long-term funding agreement 
with Norfund
RELATED MATERIAL THEMES
-	
Economic Performance
-	
Employee Engagement & Development
Net-Debt-to-Equity Ratio
Times
0
1
2
3
4
22/23
20/21
21/22

38  Hela Apparel Holdings PLC | Annual Report 2022/23
STRATEGIC 
PRIORITIES
STRATEGIC 
 ACTIONS
RESOURCE  
ALLOCATION
HIGHLIGHTS OF  
FY 2022/23
Execution 
Excellence
-	
Implementation of Digital 
Core Project underpinned 
by SAP S/4HANA Fashion 
ERP system 
-	
Drive operational and cost 
efficiencies through process 
automation, re-engineering, 
and digitisation
-	
Invest in employee training, 
development and upskilling; 
improving employee 
retention
-	
Manufactured Capital: 
	
Rs. 1.2 Bn in capital 
expenditure
-	
Human Capital:
	
755 employees trained 
on SAP S/4HANA Fashion 
ERP system
-	
Intellectual Capital:
	
Increase in tacit industry 
knowledge
-	
Reduced cost of failure by Q4
-	
Improving on-time delivery 
performance 
RELATED MATERIAL THEMES
-	
Employee Engagement & Development
STRATEGIC 
PRIORITIES
STRATEGIC 
 ACTIONS
RESOURCE  
ALLOCATION
HIGHLIGHTS OF  
FY 2022/23
Build a compelling 
& competitive 
position
-	
Expand and optimise multi-
country manufacturing to 
offer clients lead time and 
cost benefits
-	
Build a strategically robust 
supply chain
-	
Engage with and 
strengthen supplier 
relationships 
-	
Drive supply chain 
regionalisation
-	
Engage in supplier 
collaborations to produce 
innovative, sustainable 
fabrics
-	
Strengthen design capabilities 
through skills enhancement
-	
Social Capital: 
	
Customer collaborations 
on new product 
developments and design
-	
Relationship Capital: 
	
Rs. 66 Bn in payments to 
suppliers
-	
Financial Capital: 
	
Investments in supply 
chain development 
-	
Human and Social Capital: 
Training in design and 
technical engineering
-	
19% increase in revenue 
generated from Africa
-	
45% increase in Africa-to-Africa 
raw material sourcing
 
RELATED MATERIAL THEMES
-	
Employee Engagement & Development
-	
Sustainable Supply Chains
Strategy and Resource Allocation 
Air Freight Cost (FY 22/23)
US$ 000’
0
500
1,000
1,500
2,000
2,500
3,000
Q1
Q2
Q3
Q4
Revenue by Region
%
FY 22/23
FY 21/22
Sri Lanka
Africa
46%
45%
55%
54%

Annual Report 2022/23 | Hela Apparel Holdings PLC  39
STRATEGIC 
PRIORITIES
STRATEGIC 
 ACTIONS
RESOURCE  
ALLOCATION
HIGHLIGHTS  
FY 2022/23
Unmatched value 
to customers
-	
Achieve preferred vendor 
status across key customers: 
-	
Lead time and agility
-	
Design and supply chain 
capabilities 
-	
Cost
-	
Partnerships and 
solutions 
-	
Build strategic partnerships 
with customers
-	
Deliver innovative and 
sustainable product 
solutions
-	
Offer fashion forward, 
bespoke designs that 
meet brands values  
-	
Intellectual Capital:
	
30% design hit rate
-	
Human Capital:
	
291 strong marketing team
	
-	
Multiple customer awards
-	
Maintained revenue levels in spite 
of market downturn
 
RELATED MATERIAL THEMES
-	
Customer satisfaction
-	
Employee Engagement & Development
STRATEGIC 
PRIORITIES
STRATEGIC 
 ACTIONS
RESOURCE  
ALLOCATION
HIGHLIGHTS OF  
FY 2022/23
A purpose 
driven, social 
capital focused 
organisation
-	
Establish a performance 
driven culture: 
-	
Continuous investment 
in skills enhancement, 
training, and 
development
-	
Safeguard human rights
-	
Reduce carbon footprint, 
aligning with Science-Based 
Targets initiative
-	
Ensure social and 
environmental compliance   
-	
Finance Capital:
	
Rs. 9.4 Bn in staff costs 
-	
Human Capital: 
	
276 strong HR team
-	
Intellectual Capital: 
	
Increase in brand value 
from social capital projects
-	
Natural Capital:
	
Focus on developing 
a comprehensive 
sustainability strategy
-	
Over 11,000 employees 
participated in Hela’s social capital 
projects 
-	
Successful completion of  ISO 
14064-1:2018 based greenhouse 
gas verification study
 
RELATED MATERIAL THEMES
-	
Fair & Ethical Labour Practices
-	
Occupational Health & Safety
-	
Sustainable Community Development
-	
Energy & GHG Emissions
-	
Materials & Waste
-	
Water Stewardship
Staﬀ Costs
Rs. Bn
0
5
10
20/21
21/22
22/23
Revenue
US$ Mn.
0
50
100
150
200
250
300
22/23
20/21
21/22

40  Hela Apparel Holdings PLC | Annual Report 2022/23
STRATEGIC 
PRIORITIES
STRATEGIC 
 ACTIONS
RESOURCE  
ALLOCATION
HIGHLIGHTS OF  
FY 2022/23
Build agility and 
flexibility in a 
VUCA world
-	
Strengthen risk and 
compliance function
-	
Establish a risk & 
compliance pillar
-	
Review and establish 
robust internal control 
frameworks 
-	
Strengthen digital footprint
-	
Implement SAP 
S/4HANA Fashion ERP 
system across the Group
-	
Strengthen cyber security 
-	
Robust governance 
framework
-	
Active Board 
Subcommittees 
-	
Financial Capital:
	
Investment in 
strengthening risk function
-	
Intellectual Capital:
	
US$ 4.8 Mn investment 
in implementing SAP 
S/4HANA Fashion ERP 
system, 755 employees 
trained
-	
Appointment of a Chief Risk 
Officer w.e.f. 01 April 2023
-	
Rollout of  SAP S/4HANA Fashion 
ERP system across Group by end 
FY 2022/23
 
RELATED MATERIAL THEMES
-	
Compliance
Strategy and Resource Allocation

Annual Report 2022/23 | Hela Apparel Holdings PLC  41
Our Socio-Economic Impact
The Hela Group’s socio-economic impact is significant given the extensive geographical footprint of its operations across 
multiple countries. The Group is cognisant of the socio-economic responsibility it holds and makes a conscious effort to actively 
facilitate sustainable growth for stakeholders. 
NURTURING 
ECONOMIC GROWTH 
& STABILITY
CONTRIBUTING TOWARDS THE 
SUSTAINABLE GROWTH OF THE APPAREL 
SECTOR
The Hela Group is at the forefront of the global 
apparel industry and has contributed towards the 
advancement of the sector, particularly in Africa, while 
ensuring stringent compliance with the highest social 
and environmental standards. 
Over 95 Mn+ pieces of apparel were produced 
during the year, generating revenue of Rs. 95.3 Bn. 
TAX CONTRIBUTIONS 
The Group supports 
fiscal policy and national 
development by paying taxes 
in compliance with relevant 
regulations.
Rs. 223 Mn was paid as 
taxes during the year.
PROMOTING ENVIRONMENTAL 
SUSTAINABILITY
Hela has established a comprehensive environmental 
sustainability strategy around the theme 'Only One 
Earth', which is a framework for becoming a truly 
sustainable apparel company.
The Hela Group received the  
ISO 14064-1:2018 certification for GHG 
(Green House Gas) management and reporting 
from the Sustainable Future Group for the second 
consecutive year.
DEVELOPING LOCAL 
SUPPLY CHAINS
The Group procures locally 
whenever possible, supporting 
local supply chains and 
communities in its operating 
regions in South Asia and Africa. 
Its comprehensive supply chain 
regionalisation strategy has 
resulted in an increase in the 
share of procurement from these 
regions.
25% Africa-for-Africa  
sourcing in  
FY 2022/23
SUPPORTING EMPLOYMENT & LIVELIHOODS
Hela provides approximately 17,800 direct employment 
opportunities to underrepresented groups, particularly 
women, across Sri Lanka and Africa. The median 
employee age is 30 years. 
Preference is given to recruiting employees from the 
surrounding communities, thereby promoting community 
relationships.
7,000+ new recruits during the year
COMMITMENT TO EMPOWERMENT OF 
FEMALE WORKFORCE 
Having recognized the challenges faced by female 
workers, the Hela Group provides additional facilities 
and services to support their upliftment and wellbeing, 
and encourages the continued employment of women 
in the workforce. 
Over 11,000 employees have benefitted from the 
Group’s social capital programmes.

42  Hela Apparel Holdings PLC | Annual Report 2022/23
Stakeholder Engagement
The Hela Group aims to create shared value by considering what is meaningful and valuable to its stakeholders. Engaging with 
stakeholders is a shared responsibility across the organisation with both formal and informal feedback playing a key role in how 
the value creation process is enhanced.
 
Importance
Engagement  
Mechanisms
CUSTOMERS
Customers are core to the Group’s business 
interests and building long-term relationships 
with these actors requires proactively responding 
to their needs and expectations, delivering 
exceptional service and improving overall customer 
experience
-	
Regular engagement by key 
account managers and Hela 
leadership
-	
Visits to customer offices 
-	
Trade exhibitions & fairs
-	
Periodic performance reviews
EMPLOYEES
A strong relationship with its large employee base 
is critical for the success of Hela’s business. The 
Group therefore strives to continuously improve 
its employee value proposition, strengthen 
engagement, and improve productivity
-	
Extensive internal 
communications using multiple 
platforms
-	
Open door policy and established 
grievance mechanism
-	
Rewards and recognition 
programme 
-	
Regular meetings with unions 
and employee councils 
SHAREHOLDERS, JOINT 
VENTURE PARTNERS AND 
PROVIDERS OF CAPITAL
As key contributors of the resources to support 
Hela’s strategic objectives, consistent and clear 
communication regarding the Group’s outlook and 
strategy enables informed decision-making and 
assists in managing expectations
-	
Quarterly online forum for 
shareholders and other 
stakeholders
-	
Press releases
-	
Annual Report and Quarterly 
Financial Statements 
-	
Annual General Meeting
-	
CSE market announcements
SUPPLIERS
The Group’s suppliers are critical partners and an 
extension of the business. As such, their conduct 
must be consistent with Hela’s expectations and 
values
-	
Regular engagement with 
Hela supply chain team and 
leadership
-	
Supplier onboarding process
-	
Strategic collaborations
-	
Supplier code of conduct
GOVERNMENT / 
REGULATORS
Building and maintaining a relationship of 
transparency and trust with governments and 
regulators in all operating countries is an important 
foundation for business continuity. This ensures 
the Hela Group is compliant with relevant 
regulations and its concerns are taken account of 
in the policy formulation process
-	
Engagement at industry forums 
and corporate engagement 
platforms 
-	
Written communications 
-	
Face to face interactions
COMMUNITY
Long-term business continuity is dependent on 
the relationships built with the communities and 
societies in which the Group operates, and the 
contribution made to their upliftment
-	
Social capital and community 
development initiatives
-	
Grievance mechanisms

Annual Report 2022/23 | Hela Apparel Holdings PLC  43
Concerns
How  concerns  
are managed
Outcomes
Relevant 
Reports
-	
Product designs and 
developments
-	
High service levels 
-	
Effective inventory management
-	
Environmental and social 
standards
-	
Sustainable and traceable supply 
chains
-	
Price competitiveness
-	
Focus on product innovation 
and design
-	
Development of innovative 
inventory models
-	
Continuous compliance with 
quality, health and safety, social, 
and environmental standards
-	
Customers view Hela as a 
strategic and reliable global 
supply chain partner
-	
Increased awareness of the 
Group’s commitment to social 
capital 
Relationship 
Capital
-	
Job security
-	
Physical and mental well-being
-	
Attractive reward schemes
-	
Opportunities for skill 
development and career 
progression
-	
Safe and conducive work 
environment
-	
Strategic emphasis on health, 
safety and employee well-being
-	
Social capital progammes, such 
as P.A.C.E., Hela Diriliya and 
GEAR
-	
Ongoing engagement with trade 
unions and employee councils
-	
Investments in training and 
development
-	
Better understanding of 
company policies, performance 
and management decisions
-	
Inclusivity in decision making
-	
Employee retention and 
productivity improvements
Human 
& Social 
Capital
-	
Implications of macroeconomic 
and industry trends 
-	
Financial performance 
-	
Future growth prospects
-	
Environment & social impact
-	
Governance 
-	
Share price and liquidity
-	
Customer engagement strategy
-	
Focus on preserving balance 
sheet strength and liquidity
-	
Proactive cost control measures
-	
Effective strategy 
implementation
-	
Proactive risk management 
practices 
-	
Strengthened two-way dialogue 
between the Hela Group 
and investors, ensuring clear 
understanding of performance, 
outlook, and long-term strategy 
Financial 
Capital
-	
Competency development and 
capacity building
-	
Fair pricing mechanisms
-	
Ethical business conduct
-	
Timely payments
-	
Social and environment 
compliance
-	
Communication of expected 
social and environmental 
practices
-	
Supplier development 
programmes
-	
Increased visibility of future 
demand
-	
Social and environmental 
compliance throughout the 
supply chain
-	
Strong relationships with 
suppliers 
Relationship 
Capital
-	
Generation of export income
-	
Tax payments
-	
Compliance to relevant 
regulations
-	
Generation of socio-economic 
benefits
-	
Compliance with all government 
regulations and guidelines 
-	
Timely payment of taxes
-	
Generation of export income
-	
Responsiveness to enquiries
-	
Alignment of interests and 
understanding with policymakers 
in all operating countries
-	
An opportunity to share the 
Hela Group’s commitment, 
policies and procedures towards 
sustainable operations
Financial 
Capital
Corporate 
Governance 
Report
-	
Employment
-	
Livelihoods 
-	
Empowering youth and women
-	
Water conservation
-	
Waste management 
-	
Sponsorships
-	
Community employment 
generation
-	
Minimising adverse 
environmental impacts
-	
Community empowerment
-	
Corporate philanthropy
-	
Increased awareness of 
Hela Group’s sustainability 
commitments
-	
Increased trust in the Hela 
Group
Human 
& Social 
Capital
Natural 
Capital

44  Hela Apparel Holdings PLC | Annual Report 2022/23
Integrating Sustainability
The Hela Group is committed to being a responsible 
manufacturer and is on a journey to incorporate 
Environmental, Social and Governance (ESG) principles 
throughout the organisation. The Group has embedded 
sustainability into its purpose and is taking material steps to 
develop a holistic ESG strategy. 
The Board of Directors adopts a structured approach to 
strategy formulation – identifying and managing the Group’s 
ESG impacts, and addressing the material interests of priority 
stakeholders. 
Driven by its Purpose, the Group is guided in its actions by 
the principles of its social capital criteria of inclusivity, equity 
and climate stability. 
APPROACH TO SUSTAINABILITY
The Hela Group works to create a positive socio-economic 
impact, responding to key environmental and societal 
challenges in the communities it operates in. Focusing on a 
holistic approach to ESG performance, the Group’s ultimate 
aim is to achieve the highest standards of verified social and 
environmental performance, public transparency and legal 
accountability.
Inclusivity
Equity 
Climate Stability
Group-wide initiatives across Hela's 
operating countries are focused 
on community empowerment and 
environmental stewardship - these 
are highlighted on the subsequent 
pages
The Hela Group was endorsed as a signatory to the UN 
Global Compact in 2021 underscoring the its commitment 
to ethical and responsible manufacturing practices. UN 
Global Compact – Highlights on page 238 describes in brief 
how the Group met fundamental responsibilities in the 
areas of human rights, labour, environmental protection, 
and anti-corruption.

Annual Report 2022/23 | Hela Apparel Holdings PLC  45
MANAGING OUR IMPACTS
The Hela Group is in the process of formulating an ESG 
strategy to manage its impacts and support a global transition 
to a low carbon economy. The following diagram highlights 
the Group’s strategic sustainability priorities that will form the 
basis of this strategy, and their linkage to the UN Sustainable 
Development Goals.
Hela Group's Strategic Sustainability Priorities
S
o
ci
a
l 
   
  
  
  
  
   
  
  
  
  
   
  
  
  
   
  
  
   
  
  
   
  
  
   
  
  
  
   
  
  
  
  
   
  
  
 E
n
vi
r
o
n
m
e
n
t 
  
   
  
  
   
  
  
   
  
  
  
   
  
  
  
   
  
  
  
  
   
  
  
  
  
   
  
  
  
   
 
G
o
v
e
r
na
n
c
e
Responsible Sourcing
Circularity
Safety & Security
Carbon-free Products
Justice, Diversity, Equity 
& Inclusion
Zero Waste
Employee Relations & 
Development
Sustainable Data 
Management
Sustainable Community 
Development
Net Zero
Social Compliance
Water
Stakeholder Influence
Green Facilities
Technology & Innovation
Environmental Literacy
Sustainable Culture
Green Marketing
Responsible Sourcing
Process Improvements
Biodiversity & Wildlife
Resilience
Environmental Icons

46  Hela Apparel Holdings PLC | Annual Report 2022/23
Integrating Sustainability
COMMUNITY EMPOWERMENT 
The Hela Group provides approximately 17,800 jobs 
with opportunities for progression to underrepresented 
communities across Sri Lanka and Africa, particularly young 
women. The Group therefore has a significant opportunity, as 
well as the responsibility, to ensure it creates a positive socio-
economic impact that leads to meaningful change. 
SENSITIVE TO SOCIETAL CHALLENGES
-	
The Hela Group is conscious of key societal challenges faced 
by employees in its operational geographies and delivers 
relevant and impactful programmes to support them. 
-	
The Group provides highly nutritious meals and medical 
care to all employees, while the Hela Freshi and 
crèche projects respond to the specific priorities of its 
employees in Kenya. 
-	
During the Sri Lankan economic crisis in 2023, the Group 
stepped up its commitment to the Hela Diriliya programme 
with extended resources and expertise, such as access to 
external markets, design support and materials, enabling 
employees to supplement their earnings.
Regularly Recognised and Rewarded
Hela’s efforts towards successfully driving the P.A.C.E. 
programme have been regularly recognised and rewarded, 
and the Group was invited to participate in global panel 
discussions to share its knowledge and experience. Most 
recently the Group was awarded for “Impact and ROI” at the 
South Asian PVH Workshop in January 2023.
Ethiopia
Kenya
Egypt
Sri Lanka
P.A.C.E
900+  
persons impacted
Hela Freshi, 
Hela Creˊc he
4,500+  
persons impacted
P.A.C.E
100+  
persons impacted
P.A.C.E, GEAR,  Hela Diriliya, 
Hela Diridaruwa
3,300+  
persons impacted
PVH P.A.C.E. conference 2023 in Turkey
Refer Relationship Capital 
– page 100 for more 
information.
P.A.C.E.
Empowerment 
programme 
offering training in 
professional and 
life skills
HELA 
DIRIDARUWO
 Scholarship 
scheme to support 
educational 
ambitions of  
employees’  children
HELA  FRESHI
Daily supply of 
20 litres of clean 
drinking water 
for every Hela 
employee in Kenya
HELA DIRILIYA
A program to drive  
entrepreneurship  
amongst female 
employees
GEAR
Technical training 
programme aimed 
at increasing 
numbers of females 
in management 
positions
HELA CRECHE
Free childcare for 
Hela employees in 
Kenya. Available 
both day and night 
shifts. Capacity  
+100 children

Annual Report 2022/23 | Hela Apparel Holdings PLC  47
ENVIRONMENTAL STEWARDSHIP
The Group has ventured into and invested in multiple 
environmental sustainability-driven initiatives under its 
Sustainability Strategy – “Only One Earth”.  These are 
based around Hela's four environment sustainability 
focus areas.
Solar rooftop panels at the Hela Mawathagama 
manufacturing facility
Hela Thihariya manufacturing facility 
SUSTAINABLE MANUFACTURING SOLUTIONS
CLIMATE ACTION
WASTE MANAGEMENT
REGENERATE NATURE
Numerous manufacturing, 
product sustainability, and 
environmental compliance 
certifications to support 
these efforts.
Refer to Compliance and 
Product Certifications on 
page 13.
Supporting the Development of Recycled Cotton and Innovations in Sustainable Textile
The Hela Group is at the forefront of driving sustainable manufacturing. The Group 
works with an intention of being a catalyst for positive change and aligns its efforts to 
deliver relevant and impactful solutions. 
-	
Circular Solutions -  Supporting the development of recycled cotton yarns made 
from fabric waste and used clothing 
-	
Reclaimed -  Supporting the development of a polyester fabric made from recycled 
PET bottles 
-	
Plant-based Fibres  - Biodegradable fabrics developed from plant-based fibres such 
as wood and seaweed, using methods that save both energy and resources 
-	
Tea Dye Colours  - Natural tea pigments as an alternative solution to chemical dye, 
which produce significant water pollution
-	
Reclaimed Textile Dye – Supporting the development of blended dye using 
Recycrom dye. Recycrom dye is a sustainable dye range, created from pre and post-
consumer textile waste
Refer Driving Circular Textile Solutions, Natural Capital  on page 64
39% Group 
renewable energy 
mix - biomass and 
solar
ISO 14064- 
1:2018 
certification - 
since  
FY 2020/21
Development of 
circular  textile 
solutions -  in 
collaboration with 
suppliers
Solar roof top 
panels at three  
factories in Sri 
Lanka 
Fostering 
environmental 
literacy across 
the Group and 
increasing social 
awareness
Committed to 
Science Based 
Targets Initiative 
(SBTi) to become 
net zero by 2050 
HIGG FEM 
verified with 90% 
+ average scores
Driving sustainable 
product solutions- 
Completed life 
cycle assessments 
for 10 products 
using OpenLCA
Environment Sustainability Focus Areas
GOTS
GRS
OCS

48  Hela Apparel Holdings PLC | Annual Report 2022/23
Economic Value-added 
Statement
VALUE GENERATION ONLY 
CONSIDERING NOPAT*
(All figures indicated 
below are in LKR’ Mn)
DIRECT ECONOMIC 
VALUE GENERATED
ECONOMIC VALUE 
RETAINED
Direct  
Economic Value 
Generated
Rs. 97.1 Bn
Economic  
Value 
Distributed
Rs. 98.7 Bn
Economic  
Value Retained
Rs. -1.5 Bn
Revenue
Rs. 95.3 Bn
FY 2021/22 - Rs. 56.2 Bn
Depreciation
Rs. 950.0 Mn
FY 2021/22 - Rs. 507.0 Mn
Local sales and gain from 
the currency translation
Rs. 1.9 Bn
FY 2021/22 - Rs. 494 Mn
Amortisation
Rs. 999.0 Mn
FY 2021/22 - Rs. 319.1 Mn
Finance Income
Rs. 28.0 Mn
FY 2021/22 - Rs. 46.0 Mn
Unrecoverable credit loss
Rs. -153.0 Mn
FY 2021/22 - Rs. 297.3 Mn
Share of results of equity 
accounted investees
Rs. -69.0 Mn
FY 2021/22 - Rs. -92.0 Mn
Profit attributable to equity 
investees and the NCI
Rs. -3.3 Bn
FY 2021/22 - Rs. 580.6 Mn
ECONOMIC VALUE DISTRIBUTED
Operating  
Costs
Rs. 85.0 Bn
FY 2021/22 - Rs. 43.7 Bn
Employee  
wages
Rs. 9.4 Bn
FY 2021/22 - Rs. 9.4 Bn
Payments to  
Government
Rs. 5.0 Mn
FY 2021/22 - Rs. 251.0 Mn
Payments to the  
providers of funds
Rs. 4.2 Bn
FY 2021/22 - Rs. 1.5 Bn
*Net Operating Profit After Tax

50  Hela Apparel Holdings PLC | Annual Report 2022/23
Operating Environment
The global apparel 
market experienced 
a year of two halves in FY 
2022/23. While demand 
conditions remained strong 
in the early months of the 
year, rising inflation and the 
monetary tightening deployed 
by global central banks in 
response, impacted consumers’ 
disposable income
The global apparel market experienced a year of two halves 
in FY 2022/23. While demand conditions remained strong in 
the early months of the year, rising inflation and the monetary 
tightening deployed by global central banks in response, 
impacted consumers’ disposable income and contributed 
to a marked slowdown in the second half of the year. This 
supported an easing of the significant pressure on global 
supply chains experienced in FY 2021/22, but also triggered 
severe economic stress in many emerging economies.
This section provides an overview of developments in the 
global apparel market during FY 2022/23, focusing on 
Hela’s key markets (the US, UK and Eurozone), as well as 
the operating conditions in the countries where its directly-
operated manufacturing facilities are located (Sri Lanka, Egypt, 
Ethiopia and Kenya). Economic indicators referenced are for 
the calendar year unless otherwise indicated.
GLOBAL APPAREL MARKET
Demand Environment
Following the strong rebound in economic activity across 
major advanced economies in 2021 as the initial negative 
impact of the COVID-19 pandemic unwound, GDP growth 
waned in 2022 with the OECD economies growing by 2.7% 
(compared to 5.4% in 2021). This partly reflected a downturn 
in household consumption that was particularly evident in 
the second half of this year. Real household spending growth 
slowed to around 2.0% across the US, UK, and Eurozone in 
the final six months of 2022, compared to rates of 6-8% in 
2021.
A sharp rise in inflation across these economies was an 
important contributing factor to the downturn in consumer 
spending. The spike in energy prices triggered by Russia’s 
invasion of Ukraine, as well as strong economic activity 
supported by pandemic-era government stimulus, caused 
a significant escalation in inflation rates across the US, UK 
and Eurozone to levels last seen in the 1980s. While directly 
hitting consumer purchasing power, this also triggered an 
aggressive policy response from central banks in these 
economies, who hiked their policy interest rates significantly, 
placing a further squeeze on consumer incomes and bringing 
the era of ultra-loose monetary conditions since the Global 
Financial Crisis in 2008/09 to an abrupt close.  
Source: OECD
Source: OECD
Real Household Consumption Gowth
% y/y
-15
-12
-9
-6
-3
0
3
6
9
12
2020
2021
H1 -2022
H2 -2022
UK
Euro Area
US
OECD 
Economies
Consumer Price Inﬂation
%
2019
2020
2021
2022
2023
-2
0
2
4
6
8
10
12
UK
Eurozone
US

Annual Report 2022/23 | Hela Apparel Holdings PLC  51
At the same time, the shift in the composition of consumer 
spending toward goods as a result of pandemic-related 
restrictions on services, such as hospitality and travel, rapidly 
unwound during the year. For example, US consumer spending 
on goods contracted by 0.5% in 2022, while services spending 
grew by 4.5%. The slowdown in spending in the apparel and 
footwear category was particularly stark, with real terms 
spending growth slowing from over 25% to just 1.2% in 2022.
opportunity for the sector1, while a substantial share of 
consumers continue to cite sustainability as a key factor 
in their purchasing decisions. However, brands also faced 
intensified scrutiny from both their consumers and regulators, 
on the basis for their environmental claims amidst increasing 
allegations of “greenwashing”. This triggered discussion on a 
number of new policy frameworks in the US and Europe to 
measure and regulate the industry’s environmental impact, 
which are expected to be implemented over the coming years. 
Adjusting to these new regulations will be a key challenge 
for the sector in future, and industry executives see the lack 
of common standards to assess sustainability performance, 
as well as reducing the environmental impact of their supply 
chains, as among the biggest obstacles in this area.
1 Source: BoF-McKinsey State of Fashion 2023 Survey
Impact on Hela: The deterioration in consumer demand 
conditions in the second half of the year was reflected in 
Hela’s order book, with a marked drop in revenue during the 
latter months of FY 2022/23. That said, the Group’s diversified 
customer portfolio across product categories and market 
segments helped to partially mitigate the impact. Hela’s focus 
on sustainability, including measuring of environmental impacts 
based on globally accepted standards, also presents a significant 
opportunity for the Group.
Source: US Bureau of Economic Analysis
Source: BoF-McKinsey State of Fashion 2023 Survey
The end of the pandemic was also evident in the shifts in 
spending patterns within the apparel sector. Demand for formal 
wear, in particular, increased significantly as consumers returned 
to socialising and spending on travel surged. Nonetheless, this 
has largely reflected a normalisation in demand patterns, rather 
than a reversal in the medium-term trend toward casualisation. 
Sports Wear and Active Wear remained among the fastest 
growing categories in the sector, as were hybrid categories that 
seek to provide consumers with comfortable clothing that is also 
suitable for formal environments.
The squeeze on consumer incomes similarly shifted spending 
across different categories of retailers. Spending on luxury 
brands remained resilient as well-heeled consumers absorbed 
the rise in inflation. In contrast, lifestyle and aspirational brands 
were among the hardest hit by the drop in demand as middle-
class consumers traded down to more value-driven retailers.
Despite these turbulent market conditions, sustainability 
remained a key medium-term focus for the apparel sector 
during the year. Fashion industry executives surveyed by 
McKinsey in 2022 highlighted the topic as the biggest 
Biggest Challenges to Improving Apparel 
Industry's Sustainability Credentials in the 
Eyes of Consumers
%
0
10
20
30
40
50
60
70
80
Lack of standards 
to assess sustainability 
performance  
Cost of 
sustainable 
materials
Compliance
Quality of 
sustainable 
materials 
Reduction of enviornmental 
impact work linked 
with supply chains
Eﬀective marketing /PR 
communication
Insuﬃcient budget 
to invest in 
sustainability
Hiring talent with 
sustainability 
expertise
US Real Household Consumption Growth by Item
%
-10
-5
0
5
10
15
20
25
30
2020
2021
2022
Apparel & 
Footwear Goods
Services
Goods

52  Hela Apparel Holdings PLC | Annual Report 2022/23
Supply Environment
The downturn in global economic conditions supported an 
easing of the severe pressure on supply chains seen during 
2021. Global maritime freight rates, which had surged to 
record highs during the pandemic, dropped back to their 
previous levels in the final months of the year as demand for 
freight waned. Disruptions to shipping schedules and backlogs 
at major ports also became less common, particularly once 
China became the final major country in the world to end its 
strict policy of lockdowns in response to COVID-19 outbreaks 
in December 2022.
Similarly, while global commodity prices remained high 
during the early months of 2022 – particularly in light of the 
Russia-Ukraine conflict – the weakening in global demand 
contributed to significant declines during the second half of 
the year.  Most notably for the apparel and textile sector, 
global oil and cotton prices fell by 24% and 38%, respectively 
during FY 2022/23. 
Nonetheless, global geopolitical developments remained 
a key focus throughout the year. In particular, US-China 
tensions continued to ratchet up and concerns grew of the 
potential for an abrupt decoupling of the world's two largest 
economies. Of most relevance for the apparel and textile 
sector was the implementation of the Uyghur Forced Labor 
Prevention Act by the US in June 2022, which prohibits the 
import of all goods wholly or partly made in China’s major 
cotton-growing province of Xinjiang. 
In response, apparel brands have continued to accelerate their 
efforts to reduce their reliance on sourcing from China. Nearly 
80% of respondents to the US Fashion Industry Association’s 
annual survey of industry executives indicated that their 
company planned to reduce their purchases from China over 
the next two years2. Other countries in Asia are set to be 
among the chief beneficiaries of this ongoing shift in sourcing 
patterns. 
Nonetheless, broader geopolitical concerns and the 
experience of severe disruption to supply chains during the 
pandemic, mean that nearshoring also remains a key focus 
for the industry. Executives surveyed by McKinsey placed 
it among the most important strategies being considered to 
bolster supply chain security. Central America is of particular 
interest for North American retailers, but locations in North 
Africa and Eastern Europe are also seeing growing interest 
from global buyers.
Additionally, the challenging global economic conditions 
mean that apparel brands are seeking to more proactively 
manage inventory, which nearshoring supports by reducing 
lead times. Enhanced digital integration and building strategic 
partnerships with suppliers are also seen as critical to 
ensuring more agile and resilient supply chains.
2 United States Fashion Industry Association, 2023 Fashion Industry Benchmarking Study
Operating Environment
Global Oil & Cotton Prices
US$
US$
Jan-22
Jul-22
Jan-23
Jul-21
Jan-21
50
70
90
110
130
150
0.60
0.80
1.00
1.20
1.40
1.60
Oil Price (US$ per barrel, LHS)
Cotton Price (US$ pound, RHS) 
Source: World Container Index, Drewry Supply Chain Advisors
Source: Bloomberg 
Composite Freight Rates (US$ per 40ft. Container)
US$
0
2,000
4,000
6,000
8,000
10,000
12,000
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23

Annual Report 2022/23 | Hela Apparel Holdings PLC  53
Impact on Hela: Easing pressure on global supply chains and the 
declines in global commodity prices helped to reduce a component 
of the margin pressure experienced by Hela in FY 2021/22, 
though this was offset by the deterioration in demand conditions. 
That said, Hela remains well positioned to benefit from the 
shifts in global apparel sourcing patterns, with Egypt presenting 
a particularly attractive nearshoring proposition. The Group’s 
strategic customer engagement approach also aligns well with the 
growing interest by brands in forming deeper partnerships with 
their suppliers.
OPERATING COUNTRY ENVIRONMENT
Even as global supply chain disruptions eased in 2022, 
challenges in Hela’s operating countries intensified. In 
particular, external economic pressure increased as a result 
of rising global interest rates and spikes in global commodity 
prices. This triggered a marked reduction in foreign exchange 
reserves levels – one key indicator of economic stress 
– across many emerging economies and major shifts in 
economic policy in response were a common feature of the 
year.
Nowhere were the signs of economic stress greater than in 
Sri Lanka. Foreign exchange reserves tumbled to less than the 
equivalent of one month in imports – well below the generally 
recommended minimum of three months – and triggered the 
worst economic crisis in the country’s post-independence 
history.  With little to no foreign exchange reserves available 
to cover the import of essential goods, extended power 
cuts became routine, severe shortages of fuel hampered 
transportation across the country, and US Dollar liquidity 
became constrained in the local banking system. This 
disruption triggered a period of substantial social and political 
unrest during the first half of FY 2022/23, which culminated 
in a change of government in July 2022.
Strategies being considered to achieve greater 
supply chain security (% of Respondents)
%
0
10
20
30
40
50
60
70
80
Nearshoring
Forming strategic
 partnerships with 
suppliers
On-demand 
manufacturing 
Greater reliance 
on air freight 
vs. cargo
Vertical 
intergation
Forming strategic 
partnerships with 
other brands
Onshoring
Oﬀshoring
Foreign Exchange Reserve Coverage 
(Months of Imports)
0
1
2
3
4
5
Mar-21
Mar-22
Mar-23
Egypt
Kenya 
Sri Lanka 
 Recommended 
Minimum
Source: BoF-McKinsey State of Fashion 2023 Survey
Source: Bloomberg 
Source: CEIC Data
Note: Comparable data is unavailable for Ethiopia
Exchange Rate Movements vs. US Dollar
%
-10
0
10
20
30
40
50
60
70
80
FY 20/21
FY 21/22
FY 22/23
Egyptian
 Pound
Kenyan
 Shilling
Ethiopian
 Birr
Currency 
weaker against 
US Dollar
Sri Lankan
 Rupee

54  Hela Apparel Holdings PLC | Annual Report 2022/23
Despite the challenges, a proactive response from the local 
apparel sector ensured that delivery commitments to global 
buyers were met with limited disruption, protecting the Sri 
Lankan industry’s global reputation as a reliable supply chain 
partner. Agreement on a major financing package from the 
IMF and progress on the government’s debt restructuring 
programme, also supported the stabilisation of economic 
conditions in the second half of the year. 
Egypt’s economy experienced similar economic pressure in FY 
2022/23, as the Russia-Ukraine conflict triggered a spike in 
global wheat prices – a critical import good for the country. 
As a result, there were three significant devaluations of the 
Egyptian Pound during the year, bringing the cumulative drop 
in the exchange rate against the US Dollar between February 
2022 and March 2023 to over 95%. Though less dramatic 
than in Egypt, local currencies across Hela’s operating 
countries also saw notable depreciations against the US Dollar 
during the year as a result of similar pressures. 
Positively, Ethiopia made significant progress in bringing its 
civil war to a close and the government signed a major peace 
accord in November 2022. That said, political conditions 
remain fragile and the reinstatement of Ethiopia’s duty free 
access to the US market under the African Growth and 
Opportunity Act will depend on continued stability. 
However, consumer demand conditions in Europe and North 
America have continued to deteriorate significantly. Major 
global central banks have hiked their policy interest rates 
further, due to concerns that elevated rates of inflation may 
be becoming entrenched. This has placed a further squeeze 
on consumer incomes which, while not triggering major 
recessions, has led households to become more selective in 
their purchasing decisions. 
The apparel sector has been particularly impacted, as 
consumers continue to prioritise spending on services and 
post-pandemic demand for travel remains strong. In response, 
major apparel brands and retailers have reduced sourcing to 
ensure their inventory levels remain in check. This has had a 
significant knock-on impact on apparel manufacturers around 
the world, and intensified margin pressure.  While there are 
signs that economic conditions are stabilising, the timing of a 
meaningful recovery is uncertain and retailers have continued 
to act with caution in their procurement decisions.
Operating Environment
Impact on Hela: Sri Lanka’s severe economic crisis caused 
significant challenges to the continuity of Hela’s operations in 
the country. However, proactive steps taken by the management, 
ensured that the disruption to operations was limited. Similar 
steps across all of the Group’s operating countries ensured that 
minimal disruptions arose from the economic challenges in these 
locations, though some of the measures taken to ensure the 
resilience of operations and to support employees contributed to 
an increase in the organisation’s cost base.
OUTLOOK
Conditions in Hela’s operating countries remained largely 
stable during the early months of FY 2023/24, with signs 
of easing economic pressure. Sri Lanka continued to make 
progress towards restructuring its government debt, and 
foreign exchange reserves have begun to increase, enabling 
the easing of a number of policy restrictions imposed during 
the economic crisis. Economic sentiments in Hela’s other 
operating countries are also showing tentative signs of 
improvement. In addition, disruptive climate events around 
the world have so far had limited impact on global supply 
chains, though the expected intensification of El Niño is a risk 
factor.

visionary
P A R T N E R S H I P S
Capitals Report

56  Hela Apparel Holdings PLC | Annual Report 2022/23
Capitals Report
Financial Capital
A Hela team in discussion 
Strategic Priorities
The particularly challenging 
operating environment that 
prevailed during FY 2022/23 
resulted in an erosion of Hela’s 
Financial Capital and the Group 
incurred a post-tax loss of  
Rs. 3.3 Bn. Nonetheless, it’s 
balance sheet remained in a 
robust position with a Net-
Debt-to-Equity ratio of 2.0, 
supported by a reduced debt 
burden. The management 
is taking proactive steps to 
manage costs and support a 
return to profitability.
	 Growth and diversification of revenue
	 Optimised cost base
	 Efficient management of working capital
	 Prudent debt management
	 Strategic investments 
	 Maximising total shareholder returns

Annual Report 2022/23 | Hela Apparel Holdings PLC  57
Team members at Hela's manufacturing facility in Kenya
-	
Defending revenue and retaining 
customers
-	
Supporting employees through an 
economic crisis
-	
Working capital management
-	
Reduced borrowings
-	
Investment in SAP S/4HANA 
Fashion ERP system
FINANCIAL CAPITAL 
INPUTS
HOW WE TRANSFORM VALUE  
(STRATEGIC ACTIONS)
OUTPUTS
Revenue: 
Rs.95.3 Bn
Shareholder’s Equity: 
Rs.11.5 Bn
Total Borrowings: 
Rs. 27.2Bn
Net Working Capital: 
Rs. 9.5 Bn 
Prudent financial 
management
Borrowings ↓ by 3.8%  
to Rs. 27.2 Bn
Total Assets ↑ 3.8% to
 Rs. 55.7 Bn
PPE ↑ by 37.3% to 
Rs. 9.0 Bn
Net-Debt-to-Equity ratio 
of 2.0x

58  Hela Apparel Holdings PLC | Annual Report 2022/23
Capitals Report
Financial Capital
Management Approach
-	
The Hela Group’s Financial Capital is managed to enhance the value created for its shareholders in the short, 
medium and long term, while also recognising the need to create value for other stakeholders to enhance the 
overall resilience of the Group’s business model. 
-	
In addition, the Group is cognisant of the fact that Financial Capital is traded off to enhance other Capitals in line 
with its strategy, which enhances its ability to create medium-term value and build resilience to support sustainable 
growth. Examples of the key trade-offs made by the Hela Group during FY 2022/23 are mentioned below:
-	
As a result of increased economic pressure across Hela’s operating countries, most notably Sri Lanka, the Group 
incurred additional costs to ensure the continuity and resilience of its operations. This included purchases of 
fuel stocks to ensure a continuous supply for the Group’s generators and transport providers.
-	
The economic crisis in Sri Lanka also resulted in significant hardship for local employees. Salary increments and 
other relief measures were provided to the Group’s employees to support them during this challenging period.
-	
To ensure the productivity and competitiveness of the Group’s operations, various investments in automation 
and process efficiencies were made during FY 2022/23. This includes the significant investment made in the 
SAP S/4HANA Fashion ERP system.
-	
The Hela Group manages borrowings prudently, and overall management of working capital is optimised to 
manage the associated credit, market and liquidity risks.
-	
As a responsible corporate, the Group takes care to ensure that its statutory dues, including those related to 
employee social security and taxation, are made in a timely manner.
-	
The consolidated financial statements of the Group and the numbers referenced in this section are presented in 
Sri Lankan Rupees, unless otherwise stated. As the functional currency of the Group is US Dollars, the financial 
statements are initially prepared in this currency and translated into Sri Lankan Rupees based on the Sri Lankan 
Accounting Standards. Further details on foreign currency translations can be found in Note 20 (c) to the 
Consolidated Financial Statements on page 216.
Restatement of Audited Financial Statements for FY 2021/22 
and adjustments to Audited Financial Statements for  
FY 2022/23
The Hela Group completed a migration to the SAP 
S/4HANA Fashion Enterprise Resource Planning (ERP) 
system on 1st April 2023, in order to support its future 
business requirements and strengthen the existing control 
environment across its operations. This replaced multiple 
legacy ERP systems previously in operation across group 
entities.
As a result of this migration, the following adjustments have 
been made to the Group’s financial statements:
Restatement of Audited Financial Statements  
for FY 2021/22
The management identified an over absorption of 
manufacturing overhead to the inventory balance of Hela 
Investment Holdings Limited. This over absorption has been 
corrected and the relevant costs included in Cost of Sales 
for the relevant period. Please refer to Note 9 (b) to the 
Consolidated Financial Statements for further information.
Adjustments to Audited Financial Statements  
to FY 2022/23
During the cut over process from the existing ERP systems 
to SAP, the management carried out an assessment to 
determine the commercial value of work-in-progress 
(WIP) inventory being transferred to the new system. This 
exercise identified an overstatement of raw materials costs 
within WIP in two subsidiaries, Foundation Garments 
(Private) Limited and Hela Investment Holdings Limited, 
arising due to certain reporting limitations in the previous 
systems. It was decided by the management that it would 
be prudent to write off the excess value. This impact has 
been included in the Audited Financial Statements for FY 
2022/23 resulting in a material negative impact on the 
Group's reported performance.

Annual Report 2022/23 | Hela Apparel Holdings PLC  59
FINANCIAL PERFORMANCE
Revenue 
The Hela Group recorded consolidated revenue of Rs. 95.3 Bn 
in FY 2022/23, an increase of 69.6% over the previous year. 
The growth in sales was primarily driven by the significant 
depreciation of the Sri Lankan Rupee during year, relative to 
the Group’s almost entirely US Dollar-denominated export 
proceeds. In US Dollar terms, Group revenue decreased 
marginally from US$ 269.3 Mn in FY 2021/22 to US$ 268.5 
Mn in FY 2022/23.
The top line performance reflects a year of two halves. Hela’s 
US Dollar revenue in the first half of FY 2022/23 grew by 
14.7% compared to the same period of the previous year, as 
consumer demand conditions in its key markets in Europe and 
North America remained strong. However, the substantial rise 
in inflation in these markets, as well the significant interest 
rates hikes deployed by their respective central banks in 
response, triggered a sharp slowdown in demand during the 
latter months of the year. As a result, the Group’s export 
revenue contracted by 15.1% in the second half of the year, 
and contributed to US Dollar revenue closing the year largely 
unchanged from FY 2021/22. 
The expansion of Hela’s global footprint in Africa with the full 
establishment of operations in Egypt, played an important role 
in maintaining revenue in a declining market. This provides 
an attractive nearshoring solution and continues to be well 
received by the Group’s customers.
Revenue
Rs. Bn
US$ Mn
FY 22/23
FY 21/22
FY 20/21
0
20
40
60
80
100
0
50
100
150
200
250
300
Rs. Bn (LHS)
USD Mn (RHS)
269
171
32
56
95
268
Gross Profit and Operating Profit 
As a result of the increase in the Group’s Sri Lankan Rupee 
denominated revenue, gross profit increased by 35.1%, to 
Rs. 11.6 Bn in FY 2022/23. However, this reflected a 310bp 
decline in gross margins to 12.2%, as the reduction in demand 
during the second half of the year contributed to lower 
capacity utilisation levels across the Group’s manufacturing 
facilities. 
In addition, the challenging operating environment during the 
year contributed to an increase in the Group’s cost base. In 
particular, as a result of the economic crisis in Sri Lanka, Hela 
took proactive efforts to support its employees, including 
providing additional salary increments and transport for 
all employees. This also required the Group to proactively 
procure its own fuel stocks to ensure continuous operation of 
transportation facilities and generators at its manufacturing 
locations.
Gross Proﬁt and Margin
Rs.Bn
%
FY 22/23
FY 21/22
FY 20/21
0
2
4
6
8
10
12
14
0
3
6
9
12
15
18
21
Gross Proﬁt (LHS)
Margin (RHS)
18.7
15.3
12.2
6.0
8.6
11.6
Partly driven by the reduction in gross margins, the Group’s 
operating profit decreased by 72.1%, to Rs. 0.6 Bn in FY 
2022/23. This reflected a 330bp contraction in operating 
profit margin to 0.7%, compared to 4.0% in FY 2021/22.
Increases in both distribution and administration expenses 
also contributed to the decline in operating profit during the 
year. Distribution expenses, in particular, rose significantly 
due to operational disruptions at the Group’s Kenyan 
manufacturing facility as a result of a temporary labour 
dispute in the final weeks of FY 2021/22. This caused a 
significant knock-on impact on production in the first two 
quarters of FY 2022/23, and triggered a significant increase 
in unplanned air freight costs to ensure customer delivery 
timelines were maintained. Approximately Rs. 2.0 Bn in

60  Hela Apparel Holdings PLC | Annual Report 2022/23
Financial Capital
costs were incurred on unplanned air freight during the year, 
reducing operating profit margins by around 2.0%. However, 
supported by an increased focus on operational excellence, 
this impact had faded by the final quarter of the year and 
distribution costs are expected to normalise in the current 
financial year.
Operating Proﬁt and Margin
Rs.Bn
%
FY 22/23
FY 21/22
FY 20/21
0.0
0.5
1.0
1.5
2.0
2.5
0
1
2
3
4
5
6
7
Operating Proﬁt (LHS)
Margin (RHS)
6.1
2.0
2.3
0.6
4.0
0.7
Finance Expense
Net finance expenses of the Hela Group more than doubled 
in FY 2022/23, to reach Rs. 4.0 Bn. The increase is largely 
attributable to the escalation in global US Dollar interest rates 
during the year. In contrast, the Group’s total borrowings 
(which are primarily denominated in US Dollars) decreased by 
3.8% to Rs. 27.2 Bn, as a result of a reduction in both current 
and non-current borrowings.
Net Finance Cost
Rs.Bn
Rs.Bn
FY 22/23
FY 21/22
FY 20/21
0
5
10
15
20
25
30
0
1
2
3
4
5
Total Borrowings (LHS)
Net Finance Cost (RHS)
1.0
15
28
27
1.0
4.0
Taxation
Group income tax expenses recorded a positive value of  
Rs. 92.5 Mn during the year, compared to an expense of Rs. 
248.5 Mn in FY 2021/22. This was a result of a significant 
increase in deferred tax assets in FY 2022/23, arising from 
the significant loss before tax of Rs. 3.4 Bn and the increase in 
corporate income tax rates in Sri Lanka from October 2022.
Profit After Tax & Profit Attributable to Equity Holders
As a result of the decline in gross and operating profit 
margins, as well as the significant increase in finance costs, 
the Hela Group recorded a post-tax loss of Rs. 3.3 Bn. This 
compares to a restated profit-after-tax of Rs. 580.7 Mn in  
FY 2021/22.
Profit attributable to equity holders recorded a similar 
movement with a loss of Rs. 3.5 Bn. The increased loss was 
the result of a Rs. 165.9 Mn profit attributed to non-controlling 
interests in the Group's subsidiaries in Ethiopia and Egypt.
 
 Proﬁt After Tax and Margin
Rs.Mn
%
FY 22/23
FY 21/22
FY 20/21
-3,500
-2,950
-2,400
-1,850
-1,300
-750
-200
350
900
1,450
2,000
-4
-3
-2
-1
0
1
2
3
Proﬁt After Tax (LHS)
Margin (RHS)
2.7
1.0
-3.5
581
872
-3,332
Capitals Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  61
FINANCIAL POSITION
Group Assets
As of 31 March 2023, the Hela Group’s total asset base stood 
at Rs. 55.7 Bn and reflected an increase of 3.8% compared 
to the previous year. Non-current assets rose by Rs. 6.5 
Bn during the year, driven by increases in property, plant 
and equipment, as well as right-of-use assets. This reflects 
continued investment in the Group’s manufacturing footprint 
in Africa, most notably Egypt, as well as additional investments 
in automation and the SAP S/4HANA Fashion ERP system. The 
29% depreciation in the Sri Lankan Rupee against the US dollar 
between March 2022 and 2023, also supported the growth of 
the Group’s primarily US-dollar denominated asset base.
EXTRACT FROM THE STATEMENT OF PROFIT OR LOSS
Restated
 LKR ‘000s
FY 2022/23
FY 2021/22
% Change
Revenue from Contracts from Customers
95,302,705 
56,179,623 
69.6
Cost of Sales
83,716,438 
47,603,460 
75.9
Gross Profit
11,586,267 
8,576,163 
35.1
Other Operating Costs
10,955,820 
6,319,246 
73.4
Operating Profit
630,448 
2,256,917 
-72.1
Net Finance Costs
3,986,048 
1,336,265 
198.3
Share of Loss of Equity Accounted Investee, Net of Tax
69,315 
91,516 
-24.3
Profit Before Tax
(3,424,915)
829,136 
-513.1
Income Tax Expense
92,467 
(248,471)
-137.2
Profit After Tax
(3,332,448)
580,665
-673.9
Non-current Assets
Rs. Bn
FY 22/23
FY 21/22
FY 20/21
0
5
10
15
20
25
30
Property, plant and equipment
Investment property
Right-of-use assets
Intangible assets
Other non-current assets
In contrast, Hela’s current assets reduced by Rs. 4.5 Bn as a 
result of a notable reduction in trade and other receivables. 
The Group continuously worked towards working capital 
optimisation during the year through more favourable terms 
with its customers and suppliers, leading to more efficient 
utilisation of cash flow. The Group’s cash balance also 
reduced to Rs. 3.9 Bn at the end of FY 2022/23, compared to 
Rs. 5.2 Bn at the close of the previous financial year. 
Current Assets
Rs. Bn
FY 21/22
FY 22/23
FY 20/21
0
5
10
15
20
25
30
35
Inventories
Trade and other receivables
Cash and cash equivalents
Other current assets

62  Hela Apparel Holdings PLC | Annual Report 2022/23
Group Debt and Capital Structure
The Hela Group’s total liabilities increased by 8.3% year-
on-year to Rs. 44.2 Bn as of 31 March 2023. This primarily 
reflected an increase in lease liabilities and trade payables 
during FY 2022/23. As mentioned above, the Group’s total 
borrowing (excluding lease liabilities) decreased by 3.8% 
during the year in review, supported by improvements in 
its working capital cycle. What’s more, in US Dollar terms 
(aligning with the Group’s export revenue streams), the 
Group’s total debt decreased by 12.2% to US$ 83.0 Mn 
during the year.
Nonetheless, as a result of the reduction in retained earnings 
the Group’s Net-Debt-to-Equity ratio edged up to 2.0 as of 
31st March 2023, compared to 1.8 at close of the previous 
financial year. 
Total Debt & Net-Debt-to-Equity Ratio
Rs. Bn
Times
FY 22/23
FY 21/22
FY 20/21
0
5
10
15
20
25
30
0
1
2
3
4
Current Borrowings (LHS)
Non-Current Borrowing (LHS)
Net-Debt-to-Equity Ratio (RHS)
1.8
2
3
2
13
26
25
3.3
2.0
OUTLOOK 
Operating conditions remained highly challenging in the early 
months of the current financial year, as consumers in the 
Group’s key markets remained under pressure from elevated 
inflation and interest rates. The timing of a meaningful 
recovery in demand also remains uncertain and is being 
reflected in the cautious procurement decisions across the 
apparel industry.
In response, the management has launched a comprehensive 
Group-wide strategy entitled Project 180° to drive a 
sustainable return to profitability based on conservative 
demand expectation. While continuing to seek opportunities 
to build long-term value for the Group, this will focus on 
optimising its cost and capacity base to align with the 
prevailing demand conditions.
The Group’s total 
borrowing (excluding 
lease liabilities) decreased 
by 3.8% during the year 
in review, supported by 
improvements in its working 
capital cycle. What’s more, in 
US Dollar terms (aligning with 
the Group’s export revenue 
streams), the Group’s total debt 
decreased by 12.2% to US$ 
83.0 Mn
Financial Capital
Capitals Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  63
EXTRACT FROM THE STATEMENT OF FINANCIAL POSITION
Restated
 LKR ‘000s
FY 2022/23
FY 2021/22
% Change
Non Current Assets
25,677,931 
19,163,480 
34.0
Current Assets
30,019,983 
34,491,662 
-13.0
Total Assets 
55,697,914 
53,655,142 
3.8
 
 
Non Current Liabilities
6,088,353 
3,926,528 
55.1
Current Liabilities
38,151,161 
36,935,898 
3.3
Total Liabilities
44,239,514 
40,862,426 
8.3
 
 
Total Equity
11,458,400 
12,792,716 
-10.4
Total Liabilities and Equity
55,697,914 
53,655,142 
3.8
GROUP RATIOS
Restated
 LKR ‘000s
FY 2022/23
FY 2021/22
Debt to Equity (Times)
2.4
2.2
Current Ratio (Times)
0.8
0.9
Revenue Growth
69.6%
74.7%
Gross Profit Margin
12.2%
15.3%
Operating Profit Margin
0.7%
4.0%
Net Profit Margin
-3.5%
1.0%

64  Hela Apparel Holdings PLC | Annual Report 2022/23
Natural Capital
Strategic Priorities
The Hela Group is aware of 
its environmental impact 
and is constantly exploring 
avenues to generate positive 
impacts, while minimising 
its environmental footprint. 
Accordingly, the Group seeks 
to optimise its energy use 
and drive towards a Net Zero 
carbon footprint, while taking 
responsibility for waste and 
effluents generated from its 
operations.
	 Reducing energy consumption and enhancing 
efficiencies
	 Exploring opportunities for driving circularity 
of materials
	 Encouraging responsible waste management
	 Managing emissions
	 Reducing water consumption
	 Propagating environmental sustainability
Hela Mawathagama manufacturing facility
Capitals Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  65
ISO 14064-1:2018 Certified for GHG 
Management and Reporting
Completed Life Cycle Assessments  
for 10 series of products
39% renewable energy  
contribution
100% of solid waste diverted 
 from landfill
HIGG FEM verified with 90% + 
 average score
Energy consumption of 
86,881 GJ
Water withdrawal of 
192,926  
megalitres 
Responsible sourcing of 
fabrics and other  
inputs 
Sustainability training 
and environmental 
literacy  programmes
-	
Propagating environmental 
sustainability
-	
Driving social and environmental 
compliance
-	
Reducing energy consumption and 
enhancing efficiencies
-	
Exploring opportunities in circular 
materials
-	
Encouraging responsible waste 
management
-	
Managing emissions
NATURAL CAPITAL 
INPUTS
HOW WE TRANSFORM VALUE  
(STRATEGIC ACTIONS)
OUTPUTS
Hela Group’s sustainability team in discussion

66  Hela Apparel Holdings PLC | Annual Report 2022/23
Natural Capital
Management Approach
-	
The Hela Group benchmarks its operations against global best practices for environmental management. The 
Group is also guided by mandatory environmental compliance requirements stipulated as part of the contractual 
obligations established by the Group’s customers. 
-	
A Group Sustainability Team has been established to drive Hela's sustainability agenda. The Head of Sustainability 
reports to the Group CEO and briefs the Board on the progress of the Group’s Sustainability Strategy, “Only One 
Earth”. Sustainability champions have been appointed at each factory.  
-	
The Group has a fully integrated Environmental Management System (EMS), which provides clear guidelines on 
tracking, monitoring and optimising the use of natural resources, and managing environmental-related impacts in 
a holistic and consistent manner. Specific performance indicators have been integrated into the system for each 
pillar, driving concerted efforts towards enhancing resource efficiency. 
-	
The Group monitors environment-related matters through an internally developed Eco-Tracker, where all environmental 
data, such as energy usage, water consumption and waste generation are captured in a distinct location for each 
manufacturing facility. A report comprising critical comments is sent to the audit committee on a need basis and the 
findings are presented to the Board by the Head of Sustainability. Performance dashboards are made routinely available 
to the management to carry out regular reviews, serving as a tool to drive continuous improvement.   
EGYPT
-	
Law No: 4 of 1994 – Issuance of Law in the Matter of 
Environment 
-	
Environment Protection Law 4/1994 amended by Law 9/2009 
-	
Nature Protection Law 102/1983 
-	
Law 48 for the year 1982 regarding the Protection of the Nile 
and Waterways from Pollution 
-	
Law 202 for 2020 Promulgating the Waste Management 
Regulation Law
-	
UN Global Compact
-	
ISO 14064-1:2018 – GHG 
Emissions Reporting
-	
Science-Based Target initiative 
(SBTi)
-	
Sustainable Development Goals 
(SDGs)
-	
Climate Emergency Task Force 
(CETF) and Climate Ambition 
Accelerator (CAA) Programmes
-	
HIGG Facility Environmental 
Module (FEM)
-	
Global Organic Textile Standard 
(GOTS)
-	
Global Recycle Standard (GRS)
-	
Organic Content Standard (OCS)
-	
Better Cotton Initiative (BCI)
-	
Life Cycle Assessment (LCA)
ETHIOPIA
-	
Proclamation No.197/2000 - Ethiopian Water Resources 
Management Proclamation 
-	
Proclamation No.300/2002 - Environmental Pollution Control 
Proclamation 
-	
Proclamation No.299/2002 - Environmental Impact Assessment 
Proclamation
KENYA
-	
Environmental Management and Coordination (Amendment) 
Act, 2015 
-	
The Environmental (Impact Assessment and Audit) 
Regulations, 2003 (revised 2012)
SRI LANKA
-	
National Environmental Act (Amendment) No. 53 of 2000 
-	
Regulations by the Central Environmental Authority
-	
Board of Investment (BOI) Environmental Norms
Global Best Practices
Environmental Regulations Applicable to the Group:
Capitals Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  67
ENVIRONMENTAL COMPLIANCE
The Group ensures full compliance with environment related 
laws, regulations and standards at each of its production 
facilities. As a manufacturing organisation, the Group has 
obtained valid Environment Protection Licenses (EPL) or 
equivalents for all of its factories, and this is reviewed annually 
through internal audits and compliance reporting.
During the year, there were no instances of non-compliance 
with any environmental regulations.
MATERIAL CONSUMPTION 
The main raw materials used in the Group’s production process 
are fabrics and accessories relevant to garment manufacturing. 
Stringent procurement and supplier criteria ensure that 
all raw materials are sourced responsibly and sustainably. 
Approximately 10% of the total raw material purchases in FY 
2022/23 consisted of recycled and sustainable material.
Efficient Resource Consumption 
The Group is actively working on improving the efficiency of 
materials consumed in production. Process improvements 
in this regard have increased efficiency levels and reduced 
wastage significantly. Key initiatives include: 
-	
Establishment of a shared services team to facilitate 
centralised procurement
-	
Investment in automation, process re-engineering, and 
digitisation 
Promoting Circularity
The Hela Group has sought to also increase its reliance on 
recycled materials, in line with the principle of circularity. The 
Group actively promotes the use of recycled raw materials 
where possible. However, flexibility in the selection of 
materials is limited, given that the ultimate decision lies with 
the Group’s customers. 
Currently approx.  10% of fabric used in production  
are recycled materials.
Driving Circular Textile Solutions 
In collaboration with its suppliers, Hela is focused on driving circular textile solutions within the apparel industry. 
These innovations have proven to be a key success factor in tapping into niche customer markets.
Pre-Consumer Waste
Fabric waste from 
production is recycled to 
produce cotton yarn
Used garments are 
converted into  
cotton yarn 
Collborating with suppliers 
to upcycle and transform 
textile waste to dye
Development of a 
polyester fabric made from 
recycled PET bottles
Post-Consumer Garments
Waste to Dye
Recycled  Polyester
Fabric waste from Hela’s Kenyan plant is 
shipped to Belgium to be converted into pulp
Post-Consumer product range developed together with 
Ocean Lanka by recycling denim and converting into yarn

68  Hela Apparel Holdings PLC | Annual Report 2022/23
Natural Capital
Chemical Management
Chemicals are used for pad printing and as a cleaning agent 
for the maintenance of the Group’s manufacturing facilities. 
The Group has a comprehensive chemical management 
plan which sets out procedures for chemical management, 
including purchasing, labelling and storage, and handling 
of chemicals. The plan also includes specific procedures to 
support chemical assessments, data on personal protective 
equipment, chemical storage methods, and training on 
chemical use and disposal practices.
In recent years, the Group has started phasing out the use 
of hazardous chemicals and has instead moved to biological-
based cleaning chemicals, with significantly lower toxicity 
levels. The Group is planning to monitor supplier conformance 
to Zero Discharge of Hazardous Chemicals (ZDHC) levels 
and is the first friend of the ZDHC Foundation in the vendor 
category in Sri Lanka. 
ENERGY MANAGEMENT
The Hela Group fulfills its energy requirements through 
electricity purchased from the National Grid, diesel, LPG, solar 
power and biomass. As a manufacturing organisation, the 
Group’s operations are relatively energy intensive, prompting 
the Group to manage its energy requirements actively. The 
Group’s approach to managing energy is as follows:
Generating Renewable Energy
The Group began investing in renewable sources of energy 
including solar power in 2017, in order to reduce its 
dependence on purchased electricity. Currently, rooftop solar 
panels have been installed at three Sri Lankan production 
facilities, enabling the Group to generate 23% of its total 
electricity requirement from this source*. 
Some of the Group’s manufacturing facilities also use biomass 
as a source of energy in line with the Group’s renewable 
energy drive. 
Efficient Consumption of Energy
Each factory has a sustainability and engineering team who 
assists in implementing energy efficiency initiatives. They also 
conduct training and awareness programmes to encourage 
employees to save energy. The Group’s energy efficiency 
initiatives include the following:
39% of the Group's energy requirements in FY 2022/23 
was generated from renewable sources (solar & biomass).
Generating Renewable Energy
Efficient Consumption of Energy
Hela Group Solar Power Generation (FY 2022/23)
Manufacturing Facility
Solar Generation
 (kwh)
Total Electricity
 Consumption from
 Grid (kwh)
Share of Solar in
 Total Electricity
 Consumption
Mawathagama
1,224,933
1,071,890
114%
Palapathwala
654,433
884,689
74%
Narammala
288,921
877,103
33%
*Electricity 
generated through 
solar power is sold 
to the Electricity 
Board and not 
used for internal 
consumption. 
Hela Group's Approach to Energy Management
Capitals Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  69
-	
Investing in energy-
efficient production 
machinery
-	
Stringent monitoring of 
electicity consumption 
through sub metres 
installed at the Group’s 
manufacturing facilities
-	
Installation of capacitor banks 
which has led to considerable 
energy savings through load 
balancing and load scheduling  
-	
Using water-cooling systems 
instead of high energy-
consuming air conditioners
-	
Timely servicing of 
machinery
-	
Replacing fluorescent 
lamps with LED lighting 
systems 
-	
Every plant is subject to an 
annual energy accounting 
process, including a 
thermography test
-	
Innovative preheating 
method applied to boilers
-	
Regular maintenance 
checks on plants and 
equipment
-	
Buildings have been designed to 
maximise the use of natural light
-	
Energy literacy programmes for 
employees
Hela Group Energy Efficiency Initiatives 
The Hela Grow Project 
The Hela Grow Project

70  Hela Apparel Holdings PLC | Annual Report 2022/23
Natural Capital
The Group’s total energy consumption declined to 86,881 
GJ in FY 2022/23 compared to 99,775 GJ in FY 2021/22 
consumed last year. A breakdown of energy consumption is 
given below: 
Each factory has a 
sustainability and 
engineering team who assists 
in implementing energy 
efficiency initiatives. They 
also conduct training and 
awareness programmes to 
encourage employees to save 
energy.
Energy Consumption by Type
Type
Unit
FY 2022/23
FY 2021/22
Renewable
Biomass
GJ
22,657
41,308
Non-renewable
Diesel
GJ
16,630
11,318
LPG
GJ
1,208
1,910
Purchased Electricity
GJ
46,385
45,238
WATER AND EFFLUENTS
The Hela Group’s manufacturing process is not water-
intensive. Water is primarily used for employees’ utility and 
sanitation needs. The Group relies on groundwater and water 
from municipal sources to fulfill this requirement.
Water conservation initiatives are carried out across the 
Group, including training and awareness programmes for 
employees. 
Water Withdrawal
Megalitres
FY 22/23
0
50,000
100,000
150,000
200,000
FY 21/22
Energy Consumption
GJ
0
20,000
40,000
60,000
80,000
100,000
FY 22/23
FY 21/22
Capitals Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  71
Effluents discharged by the Group are mainly generated 
from washrooms and canteen operations. The Group’s 
manufacturing facilities are equipped with on-site wastewater 
treatment plants, where discharge is treated prior to being 
re-used for gardening purposes. The quality of the water 
discharged is continuously monitored as per customer and 
regulatory requirements to ensure compliance with prescribed 
limits. 
Water recycled through onsite effluent treatment plants 
during FY 2022/23: 9,655 m3 (2021/22: 2,948)
RESPONSIBLE DISPOSAL OF SOLID WASTE
Nearly 99% of solid waste generated by the Hela Group falls 
into the non-hazardous waste category. Waste generated 
is segregated through the Hela EMS and tracked by the 
EMS tracker, prior to being disposed of, in compliance with 
regulatory requirements and industry best practices. The 
Group only engages with licensed waste handlers who meet 
the clear guidelines set out by the EMS. 
The total volume of waste generated by the Group during the 
year amounted to 2,880 MT. The Group pursues responsible 
waste management initiatives and actively seeks to recycle, 
re-use and reduce waste, thereby eliminating waste sent 
to landfills. Tentative steps are also being taken to explore 
opportunities for waste circularity. The initiatives shown 
below were carried out during the year. 
Automation and Digitisation  
of Cutting Processes
Automation and 
digitisation of the fabric 
cutting process has 
improved efficiencies, 
thereby reducing fabric 
wastage
The Group actively seeks 
to reduce single use plastic 
items and encourages 
recycling
The Hela Group returns 
thread cones and polybags 
to   suppliers for reuse, 
helping to reduce the 
volume of wastage from 
day-to-day operations
The Group initiated the 
Heraliya Peraliya project to 
reuse polybags, thereby 
reducing waste
Reducing Plastic Usage
Returning Waste to Suppliers
Re-using Polybags
Water Withdrawal by Source in FY 2022/23
%
9%
91%
Ground water
Third party water
Waste Generated in FY 2022/23
%
84%
8%
2%
6%
Fabric
Cardboard
Plastic
Food
Solid Waste Reduction Measures in FY 2022/23

72  Hela Apparel Holdings PLC | Annual Report 2022/23
Natural Capital
MANAGING EMISSIONS
The Hela Group is cognisant of its impact on the environment 
and has directed its efforts to reduce its carbon footprint 
in a sustained manner. The Group’s approach to managing 
emissions focuses on enhancing energy efficiency and 
increasing its reliance on renewable sources of energy. Key 
initiatives undertaken are presented below. 
ISO 14064-1:2018 certified since FY 2020/21
The Hela Group has obtained the ISO 14064-1:2018 
certification for quantification and reporting of greenhouse 
gas emissions and completed comprehensive carbon footprint 
assessments for the financial years FY 2020/21, FY 2021/22 
and FY 2022/23. The figures were verified by a third-party 
consultant. 
Having become a member of the Science Based Targets 
Initiative (SBTi), the Group is in the process of developing 
near-term and long-term targets for reducing GHG emissions, 
supporting the global aim of reaching Net Zero by 2050. 
Monitoring emissions, noise 
levels and air quality in line with 
regulatory guidelines
Revamping ventilation systems 
for all manufacturing facilities in 
Sri Lanka, Kenya and Ethiopia 
Taking corrective action if 
emission and noise levels of 
generators and boilers exceed 
guidelines
Installation of Solar Panels to 
generate renewable energy
Hela Group Green House Gas Emission (GHG) (Unit)
Type of emissions
FY 2022/23
FY 2021/22
Base Year (FY 2020/21)
Direct GHG emissions (CO2e)- Scope 1
1,118
919
673
Indirect GHG emissions (CO2e)- Scope 2
5,630
5,476
3,775
Other indirect GHG emissions (CO2e)- Scope 3
22,945
21,275
18,849
BIODIVERSITY PRESERVATION
The Hela Group is fully committed to protecting the 
environment and continues to undertake and support a range 
of biodiversity conservation projects. 
These involve initiatives to preserve the natural ecosystem 
including endemic flora, fauna and animal species. A key 
project undertaken by the Group is the Hela Grow Project. 
The Group is also a member of the Field Ornithology Group 
of Sri Lanka (FOGSL) and a patron member of Biodiversity Sri 
Lanka (BSL).
HELA GROW (GREEN RESTORATION 
ORIENTATED WALK)
The Group conducted two food cultivation programmes 
at its manufacturing facilities in Sri Lanka. The food 
that was harvested was distributed among Hela 
employees. 1,000 saplings were also cultivated under 
this programme. Plants were bought exclusively from 
Diriliya team members and donated voluntarily by Hela 
employees.
Emission Reduction Initiatives 
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Annual Report 2022/23 | Hela Apparel Holdings PLC  73
ENVIRONMENTAL LITERACY 
The Hela Group carried out the following initiatives to 
enhance the environmental literacy of its employees.
-	
Conducted 40 training sessions on corporate sustainability 
and 10,677 employees were trained on basic sustainability 
practices
-	
Conducted its first sustainability day programme with the 
theme of 'Only One Earth'. Key activities conducted at the 
event are as follows:
Hela Sustainability Day  2023
	
Keynote speech on “21st century leadership to build 
credibility with global apparel brands” by Dr. Ravi 
Fernando- Chairman of Global Strategic Corporate 
Sustainability (Pvt) Ltd.
	
Stall by the Department of Agriculture showcasing their 
urban cultivation models to educate and encourage 
employees on home gardening
	
Distribution of an indoor plant among all departments
	
Gifted an ecofriendly pen to all employees based at 
the head offices in Sri Lanka as part of the zero-plastic 
movement. These pens contain vegetable, fruit and flower 
seeds and can be planted once the ink is finished
	
Created awareness on the importance of conserving  
water and electricity
-	
Conducted a digital flyer campaign to raise awareness on 
days commemorating environmental sustainability and the 
importance of all aspects of sustainability
-	
Established the Hela Nature Club
Hela Nature Club
The Hela Nature Club was established in order to inculcate 
a sustainability-oriented culture within the Group. It was 
launched by Prof. Sarath Kotagama during the year, with plans 
to undertake various environmental and social initiatives 
to groom individuals in environmental literacy. This is a 
12-month programme and consists of over 250 voluntary 
members. The executive committee of the Hela Nature Club 
is comprised of an inclusive group, which includes the Group 
CEO and other senior members of the organisation.  
A 2km stretch of beach in Dehiwala, Sri Lanka was 
cleaned of solid waste in partnership with the Pearl-
protectors and plasti-cycle of John Keells Holdings. 
Approximately 250 kgs of waste on the beach were 
collected, including recyclable and non-recyclable waste. 
The Rotaract Club of the University of Colombo also 
volunteered for this initiative. 
The executive committee members of the Hela Nature 
Club participated in a jungle survival training programme. 
The programme was designed to provide members with 
training on physical and mental health, and on developing 
outdoor survival skills. Teams engaged in activities that 
strengthened bonds including cooking meals amidst 
the wilderness. Skills gained through this jungle survival 
programme will help them to plan and execute better 
events in the future with club members.
Beach Cleanup
Jungle Survival Training
Upul C. Kumara, Director of the Good Life Institute – Foundation of 
Goodness, addressing Hela employees on World Environment Day

74  Hela Apparel Holdings PLC | Annual Report 2022/23
Human and Social Capital
Strategic Priorities
The Hela Group is committed 
to making a positive 
contribution towards the 
socioeconomic development of 
its people and the communities 
in which it operates. As a 
‘Social Capital Company’, 
the Group empowers and 
uplifts livelihoods through 
its comprehensive value 
proposition to employees and 
their wider communities.
	 Establishing pathways for career progression
	 Uplifting employee well-being
	 Maintaining proactive engagement
	 Improving occupational health and safety
	 Enhancing productivity through skill 
development
	 Supporting community empowerment
Hela team at the Gender Equality and Returns (GEAR) Graduation Ceremony
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Annual Report 2022/23 | Hela Apparel Holdings PLC  75
Satisfied employees
Zero child labour or forced labour
120,000+ training hours
Rs. 5.4 Mn revenue per  
employee
Female representation of 71% among 
employees
A team of  
approximately 17,800 
employees
Rs. 12.2 Mn  
investment in training  
and development
Compliance with a 
number of certifications 
including WRAP and 
SEDEX
Investment in 
social development 
programmes: Diriliya, 
Diridaruwo P.A.C.E. 
 and GEAR
-	
Establish a performance driven 
culture through continuous 
investment in skills enhancement, 
training and by safeguarding human 
rights
-	
Establish pathways for career 
progression
-	
Comprehensive measures to ensure 
occupational health and safety, and 
a safe, productive and conducive 
work environment
-	
Uplifting employee well-being
HUMAN CAPITAL 
INPUTS
HOW WE TRANSFORM VALUE  
(STRATEGIC ACTIONS)
OUTPUTS
Hela Diriliya members at a rush and reed weaving training session

76  Hela Apparel Holdings PLC | Annual Report 2022/23
Management of human capital is underpinned by a comprehensive suite of HR policies and processes, compliant 
with statutory and regulatory requirements, including the International Labour Organisation Conventions, and are 
benchmarked against industry best practices. The Group is further guided by voluntarily obtained global certifications 
for decent work and working conditions, including Worldwide Responsible Accredited Production (WRAP) and Supplier 
Ethical Data Exchange (SEDEX). 
EGYPT
-	
National Wage Council Law No. 57 of 2021 
-	
Social Insurance Law No. 148 of 2019
-	
Labour Law No. 12 of 2003
-	
Recruitment and Selection 
-	
Remuneration and Benefits 
-	
Welfare and Benefits 
-	
Training and Development 
-	
Non-Harassment and Abuse 
-	
Non-Discrimination 
-	
Policy on Types of Employment 
-	
Group Foreign Travel Policy 
-	
Code of Conduct 
-	
Worker Representation 
-	
Worker Communication 
-	
Grievance Handling Policy 
-	
Superannuation Benefits Policy 
-	
Prevention of Human Trafficking 
Policy 
-	
No Forced Labour Policy 
-	
Exit Procedure 
-	
Dress Code 
-	
Disciplinary Management 
-	
Conflict Management 
-	
Child Labour Remediation and 
Minimum Age Policy 
-	
Attendance and Leave Policy 
-	
Anti Bribery and Fraud Policy 
-	
Policy on Trainees and Interns 
-	
Prevention of Sexual Harassment
ETHIOPIA
-	
Ethiopian Labour Proclamation Law 1156/2019
-	
No. 4 Tax and Social Security
KENYA
-	
Employment Act of 2007 
-	
Labour Relations Act of 2007 
-	
Occupational Safety And Health Act of 2007 
-	
National Hospital Insurance Fund Act 
-	
National Social Security Fund Act 
-	
Work Injury Benefits Act of 2007
SRI LANKA
-	
Factories Ordinance No. 45 of 1942
-	
Shop and Office Employees Act of No. 19 of 1954 
-	
National Minimum Wage of Workers Act No. 16 of 2021 
-	
Employees’ Provident Fund, No.15 of 1958 
-	
Employees’ Trust Fund, No. 46 Of 1980
-	
Payment of Gratuity Act, No. 12 of 1983
-	
Wages Boards Ordinance, No.27 of 1941 
-	
Occupational Safety and Health Act No. 38 of 2009
-	
Maternity Benefits Ordinance, No.32 of 1939
-	
Employment of women, young person and children, No. 47 of 
1956 
-	
National Minimum Wage of Workers Act, No. 3 of 2016 
-	
Minimum Retirement Age of Workers Act, No. 28 of 2021 
-	
Industrial Disputes Act, No. 43 of 1950 
-	
Budgetary Relief Allowance of Workers Act, No. 4 of 2016 
-	
Budgetary Relief Allowance of Workers Act (No.1), No. 8 of 
1978 , Act (No.2), No. 18 of 1978
-	
Workmen’s Compensation, Nos: 31 of 1957
-	
Employee’s Councils, No. 32 of 1979
Hela Group’s HR Policy 
Framework
Labour Regulations Applicable to the Group include:
Human and Social Capital
Management Approach
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Annual Report 2022/23 | Hela Apparel Holdings PLC  77
Board of Directors
Group CEO
Group Chief People Officer
HR Department
Remuneration  
Committee
HR Governance Structure
-	
The Hela Group’s employee-related 
activities are centralised under the 
Group HR function based on the 
principle of ‘One Hela-One HR’
-	
The HR function serves as a shared 
service, providing oversight for HR-
related matters across all geographic 
locations
-	
The Group Chief People Officer heads 
the HR function of the organisation
TEAM PROFILE
The Hela Group is comprised of a diverse team of 
approximately 17,800 employees who are the foundation of 
the Company’s operations across its international footprint. 
As an equal opportunity employer, the Group does not 
discriminate against employees based on gender, age, religion 
or race, thereby enabling them to build fulfilling careers. 
KEY ASPECTS OF HELA'S EMPLOYEE BASE
-	
Employees are engaged on a permanent or fixed  
term basis
-	
All employees are required to adhere to the Group’s 
Code of Conduct
-	
A strict policy against forced, compulsory, or child labour 
is in place across the Group 
Employees by Gender & Region in FY 2022/23
No.
Egypt
Kenya
Ethiopia
Sri Lanka
0
2,000
4,000
6,000
8,000
10,000
Male
Female

78  Hela Apparel Holdings PLC | Annual Report 2022/23
Human and Social Capital
The recruitment policy 
of the Group seeks to 
attract individuals with the 
requisite skills and experience 
through a comprehensive 
process that ensures equal 
opportunity, inclusivity and 
diversity
MOVEMENTS IN THE TEAM
The recruitment policy of the Group seeks to attract 
individuals with the requisite skills and experience through 
a comprehensive process that ensures equal opportunity, 
inclusivity and diversity. Preference is given to employees 
from local communities when recruiting, thereby promoting 
regional economic empowerment and community 
relationships. 
The Group is also committed to zero child labour. Recruitment 
practices ensure all new recruits are of the minimum 
employable age in compliance with regulations applicable in 
the jurisdiction of operations. 
The Hela team was strengthened with 7,433 new recruits 
during the year. New recruits are carefully assessed during 
their probationary period prior to being absorbed into the 
permanent cadre of the organisation, where applicable. In 
addition to the long-term drivers of labour turnover, the 
difficult economic circumstances across the Group’s operating 
countries created additional challenges in recruitment and 
retention of skilled employees during FY 2022/23 due to 
increased migration. Profiles of new recruits and exits are 
graphically presented below: 
HELA GROUP'S HR VISION STATEMENT 
To provide our people with the opportunity to work for a cause, 
in a safe, productive and happy work environment, where 
they are aware of their roles and goals; their performance is 
assessed, rewarded and recognised; and their true potential is 
recognised.
Lakmini Rangika and Kasuni Mawalagedara at a Hela Diridaruwo event 
Udena Wickremesooriya – Advisor to the Hela Group speaking at a 
GEAR panel discussion
A. R. Rasiah, Chairman, presenting a certificate at the Social Capital 
Graduation Ceremony 2022/23
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Annual Report 2022/23 | Hela Apparel Holdings PLC  79
REMUNERATION, RECOGNITION AND REWARDS
Remuneration and Benefits
The Hela Group offers an attractive remuneration package, 
linked to employee performance and aligned with industry 
best practices. The Group does not discriminate based on 
gender in determining remuneration. A strict 1:1 remuneration 
Recruitment by Age Group
%
66%
1%
33%
Under 30 years
30-50 years
Over 50 years
Recruitment by Gender
%
Male
Female
29%
71%
Recruitment by Region
%
15%
1%
5%
80%
Sri Lanka
Ethiopia
Kenya
Egypt
Turnover by Age Group
%
2%
36%
63%
Under 30 years
30-50 years
Over 50 years
Turnover by Region
%
11%
9%
7%
73%
Sri Lanka
Ethiopia
Kenya
Egypt
Turnover by Gender
%
27%
73%
Male
Female
ratio is maintained between men and women for entry level 
positions. Regional salary surveys conducted annually support 
the Group’s efforts to remain competitive. 
Profile of Employee Recruitment and Turnover in FY 2022/23
Hela Kids Wear team being recognised for their commitment towards the Group's social capital projects

80  Hela Apparel Holdings PLC | Annual Report 2022/23
The Group also offers a range of other benefits designed to retain and motivate employees
Free nutritious meals
Medical Insurance Facilities
Free transport
Distress Loans   
Free medical care
Welfare Loans
Workman’s Compensation
Special Loan Facilities
Human and Social Capital
HELA FRESHI
Team members from Hela’s manufacturing facility in 
Kenya can take home 20 litres of clean drinking water 
for their families each day.
This is an initiative launched to address the shortage 
of clean drinking water in East Africa and address a key 
day-to-day challenge for employees.
5 + Mn Ltr
of clean drinking water  
provided
During Sri Lanka’s economic crisis in FY 2022/23, Hela took 
proactive steps to support its employees:
-	
All employees were paid their full salaries and 
increments
-	
Team members across 9 facilities were provided 
training and exposure to alternative self-sustainable 
methodologies through the “Emerge from Crisis” 
programme where they were provided with knowlege 
and skills to reduce expenses, increase income and 
develop a resilient mindset
-	
Workers were encouraged to supplement family 
income through home gardening, sewing and other 
activities, and were supported in their efforts through 
the Diriliya programme
-	
All employees were provided with free transport to 
and from work
The Hela Group’s Narammala and Uhumeeya manufacturing 
facilities in Sri Lanka, which are situated in close proximity to 
each other, were amalgamated in January 2023 to reduce 
overhead costs. This decision was taken in light of the 
reduction in demand experienced during the second half of 
the financial year and as part of a wider strategy to efficiently 
manage costs.
Conscious of its responsibilities to it employees and the 
principle of fair treatment, the Hela Group ensured that the 
majority of the affected employees were offered alternative 
roles within the Hela Group. Regrettably, the Group was 
unable to offer alternate placements for approximately 400 
team members with less than 6 months of service. The 
Group ensured that all employees impacted by this decision 
received due compensation in consideration of the legal 
requirements and labour laws of Sri Lanka.
Supporting the Group’s Sri Lankan Employees during the 
Economic Crisis
Factory Amalgamation: Ensuring the Fair Treatment of 
Employees
1,000+ families 
positively impacted to date
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Annual Report 2022/23 | Hela Apparel Holdings PLC  81
DIVERSITY AND INCLUSION
The Group embraces diversity and advocates a conducive 
work environment free from discrimination for all employees. 
Hela’s leadership firmly believes that decision making, 
innovation and productivity is enriched through the 
combination of diverse skills and perspectives. 
PURSUING GENDER EQUALITY
Hela strives to create an enabling culture for women working 
within the organisation by ensuring that workplace-related 
policies are gender-sensitive and fair.
Gender Representation Across Employee 
Categories in FY 2022/23
%
0
20
40
60
80
100
Male
Female
Team 
member
Staﬀ
Executive 
to Manager
DGM & 
above
Board
Team 
Member
Staﬀ
Executive 
to Manager
DGM & 
above
Board
0.0
0.2
0.4
0.6
0.8
1.0
under 30 years old
30-50 years
Over 50 years
Age Group Representation Across Employee 
Categories in FY 2022/23
%
Employees are encouraged to report instances of 
discrimination through the Group’s Grievance and Open-door 
policies. During the year, there were no reported incidents of 
discrimination.
Facilities provided to female workers to support their 
continued employment include the following:
Zero tolerance towards sexual harassment in 
the work place

82  Hela Apparel Holdings PLC | Annual Report 2022/23
Parental Leave
The Group’s policies on parental leave are compliant with 
regulatory requirements in its countries of operation. 
During the year, the Hela Group introduced Paternity Leave 
and Leave for Child Adoption policies, which are currently 
applicable to Sri Lankan operations. The new policies are 
also expected to be rolled out to the Kenyan, Ethiopian and 
Egyptian facilities in future. 
Parental Leave during FY 2022/23
Male
Female
Total number of employees entitled to 
parental leave
-
301
Total number of employees that took 
parental leave during the year
3
226
Number of employees that returned to 
work after parental leave during the period
3
216
Number of employees that returned after 
parental leave still employed after 12 
months of their return
3
216
Human and Social Capital
Fathers of newborns will be granted leave for 5 days in order 
to take on care giving responsibilities at home, while providing 
emotional support to their partner and being present during 
the early, challenging days of child care.
Mothers who adopt a child will be granted the same 
amount of leave as provided to other new mothers, in 
order to support them in settling into their new role.
Paternity Leave
Leave for Child Adoption
Free Childcare at Hela Creche 
Hela’s Kenyan plant provides free on-site childcare for both 
day and night shift female team members. Children between 
the ages of 6 months to 3 years are provided with childcare 
and healthy cooked meals, while qualified staff also conduct 
early childhood development activities. 
Financial Empowerment
Hela encourages financial empowerment of female workers 
as a means to uplift their quality of life. Hela conducts training 
and awareness programmes to increase knowledge of financial 
literacy, income generation, work-life balance and other 
relevant topics. These are discussed in detail on page 84 of this 
report, under Driving Social Integration and Career Progression.
TRAINING AND DEVELOPMENT
The Group equips employees with the right skills and 
knowledge by providing opportunities for training and 
development. Non-executive staff benefit from mindset, 
knowledge and skill training, as well as extensive technical 
training, where required.
Average Training Hours per Employee by Gender in  
FY 2022/23
Male
804
Female
2,535
Average Training Hours per Employee by Category  
FY 2022/23
Senior Management and above
261
Executive Staff
323
Non-executive Staff
2,765
Other (includes security and janitorial)
51
Training interventions for executive employees are formulated 
following a needs assessment carried out by the heads of 
departments, during the annual appraisal.  
All training activities are facilitated by the Group HR function 
and fulfilled through formal and on-the-job training. The main 
focus areas for training across the Group are outlined below:
Hela Diriliya member showcases his products at a Diriliya Pola
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Annual Report 2022/23 | Hela Apparel Holdings PLC  83
Induction  Training
Developing technical competencies with 
emphasis on upskilling and reskilling
Soft Skills Development
Mentoring & Knowledge Sharing Sessions
Health & Safety Training
OCCUPATIONAL HEALTH AND SAFETY 
Hela provides a safe and conducive work environment for 
all employees, with strict enforcement of safety procedures. 
The Group is guided by comprehensive Employee Health 
and Safety (EHS) policies and procedures, local laws in 
its countries of operation, and the high workplace safety 
requirements of its global customers, as well as several 
compliance certifications. 
The Group’s compliance and brand protection team acts as 
a central shared service for ensuring social compliance. Each 
manufacturing facility also has its own compliance team 
headed by a Compliance Point Person (CPP) who ensures 
consistent implementation of all relevant social compliance 
and health and safety standards at each location. 
The CPP also heads the EHS Committee at each 
manufacturing location, which comprises of departmental 
representatives who are accountable for identifying and 
reporting safety concerns. The EHS Committee meets 
monthly. Employees can also inform their superiors if they 
identify any work-related hazards.
Occupational health and safety training is provided for all 
employees and covers a wide range of topics including 
five safety pillars: Fire, Chemical, Ergonomics, Machine, 
Maintenance, Electrical Safety, as well as other trainings on 
PPE, bloodborne pathogens, working at height, and first aid. 
MANAGING HEALTH AND SAFETY
-	
The CPP based at each manufacturing facility conducts 
monthly safety audits and performs a bi-annual risk 
assessment to observe potential safety risks. The results 
are reported to the relevant business heads and further 
reviewed by the Group’s Audit Committee
-	
Efficacy of the Group’s EHS implementation is assessed 
by periodic compliance-related WRAP & SMETA 
verification protocols and other annual customer audits
-	
Ensuring safety of machinery and equipment
-	
Provision of necessary safety equipment
-	
Onsite medical services
Rs. 12.2 Mn was invested in training. 
7,946 employees underwent 129,289 hours 
of training during FY 2022/23.
29,316 hours of safety training in FY 2022/23
Training Focus Areas for the Hela Group

84  Hela Apparel Holdings PLC | Annual Report 2022/23
All incidents, including those which do not result in any injury, 
are investigated by the qualified nurse (appointed to the 
factory) and the relevant compliance executive as per EHS 
policy.  They are also brought to the attention of the District 
Factory Inspecting Engineer, if required. 
Incidents are then documented and graded based on severity. 
Concerns are escalated to the Deputy General Manager – 
Compliance & Sustainability or Chief Risk Officer and Group 
Chief People Officer for further attention. The Health and 
Safety record for FY 2022/23 is given below: 
Human and Social Capital
OHS Incident Record
Year
No. of reportable
  injuries
No. of worker- 
related ill health
Main causes  of 
ill health
Work related 
fatalities
FY 2022/23
11
13,097
Pains, allergies and 
infections
0
FY 2021/22
7
11,523
Fever, Cold, Headache, 
COVID-19
0
EMPLOYEE ENGAGEMENT
Multiple formal and informal mechanisms are in place 
within the Group to drive employee engagement. Given the 
challenges faced during the year, the Group’s engagement 
Work-life Balance 
Annual welfare events to 
promote work life balance 
Employees are encouraged 
to report their grievances 
at any time while also 
facilitating collaboration
Formal grievance handling 
and disciplinary process 
should employees wish to 
escalate any grievances
Ensures effective 
communication takes place 
and that employees feel 
heard, respected and valued
Open-door Policy
Grievance Process
Coffee Sessions and Team 
Meetings
Relationships with Trade Unions
The Group maintains cordial relationships with the trade 
unions representing employees at the Kenyan and Ethiopian 
manufacturing facilities. During FY 2022/23, there were 
no major instances of disruptions to work due to industrial 
disputes.
Although employees at the Sri Lankan and Egyptian factories 
are not unionized, the Group has established Employee 
Councils at all locations to address employee concerns. 
Employee Councils consist of representatives from all 
departments, with female participation in membership 
strongly encouraged. 
DRIVING SOCIAL INTEGRATION AND CAREER 
PROGRESSION
The Group empowers employees through its range of ‘Social 
Capital’ initiatives, which support them to pursue their career 
goals and aspirations, and uplift their lives beyond their 
initiatives aimed at strengthening employee morale through 
targeted initiatives for mental, physical, emotional and 
economic health. 
day-to-day work. Opportunities are provided for economic 
independence, while driving social integration. The Group’s 
key initiatives are outlines on the subsequent pages.
Hela employees at a financial literacy training session
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Annual Report 2022/23 | Hela Apparel Holdings PLC  85
Diriliya
Launched as a pilot  
project in Sri Lanka
Includes a range of 
business categories 
including agriculture, 
apparel, food, household 
and services
To be launched in Ethiopia 
and Egypt in the near 
future
602 
participants in  
FY 2022/23
Overview 
Diriliya is a social capital initiative established by the Hela Group, designed 
to inculcate an entrepreneurial culture among its employees and develop 
their business skills. Over 14,500 hours of training was provided on quality, 
manufacturing, financial, legal, selling and people management skills. Training in 
specific vocational skills, such as needlework, dressmaking, and pottery is also 
offered through Diriliya. 
Further support is provided by creating market spaces for the entrepreneurs to 
sell their products, while access to external markets is also provided. Hela’s in-
house Diriliya Pola, which is a farmer’s market type monthly pop-up is held across 
all facilities in Sri Lanka. Diriliya also promotes opportunities for growth through 
partnerships and collaborations with reputed institutes, including the Academy of 
Design in Sri Lanka.
The programme proved an invaluable support to Hela’s employees during Sri 
Lanka’s economic crisis in 2022.  It acted as a means to earn an additional income 
for the Group’s employees, build confidence in their capabilities, and live a more 
independent life. 
Why Diriliya?
-	
To strengthen the 
economic resilience 
of Hela’s employees
-	
Transform the 
perception of apparel 
workers 
-	
Build close ties 
between the 
leadership and 
employees
-	
Homegrown solution 
to unlock business 
skills
          Diriliya is a social capital initiative established by the Hela 
Group, designed to inculcate an entrepreneurial culture among its 
employees and develop their business skills. 
Highlights

86  Hela Apparel Holdings PLC | Annual Report 2022/23
Human and Social Capital
Diri Daruwo
Launched as a pilot  
project  
in Sri Lanka
Opportunity to visit the Future Minds Exhibition where 
over 150 individuals were provided individual career 
counselling 
Collaboration with HCL India for an IT based degree and 
employment opportunities for 20 scholars
Collaboration with NIBM to develop English and  
IT skills of scholars. 150 students graduated
451
scholars benefitted
Overview
Diridaruwo is a homegrown solution to support the children of the Hela Group’s 
employees. Scholarships are provided for the children of employees engaged in 
education at the Secondary and Undergraduate levels. 
The initiative is jointly funded by Tesco and Hela, and is managed by a non-
government body, Berendina. In addition to providing financial scholarships, 
educational programmes are conducted to unlock the potential of these children 
and help them establish clear career goals.
The programme tracks the progress of scholars by maintaining a document 
database. This also helps to understand personal goals, discover educational needs 
and provide the required support to scholars. 
Why Diri Daruwo?
-	
To help unlock the 
true potential of the 
scholars and develop 
employability
-	
Identify future skill 
development needs 
          Diridaruwo is a homegrown solution to support the children 
of the Hela Group’s employees. Scholarships are provided for the 
children of employees engaged in education at the Secondary and 
Undergraduate levels. 
Highlights
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Annual Report 2022/23 | Hela Apparel Holdings PLC  87
Gender Equality And Returns (GEAR)
Conducted by Better Work, a 
collaboration between ILO and IFC
Launched in 3 Hela manufacturing  
facilities in Sri Lanka
In recognition of the impact made, Hela is being  
featured on the international GEAR campaign via 
Betterwork
Programme has a duration of 6 months
44
candidates were selected
Overview
Based on the foundation laid by P.A.C.E., Hela launched the GEAR programme in 
2022 together with Better Work, a collaboration between ILO and IFC. The goal 
of GEAR is to advance the careers of female team members and unlock career 
opportunities, while generating additional returns to the company.
Over 300 applications were received for the programme out of which only 44 
females were selected following a rigorous selection process. The programme 
differs from P.A.C.E. in that the technical skills of candidates were developed, in 
addition to their soft skills. Individual coaching was also provided to every single 
trainee. 
GEAR focuses on developing two categories of employees
1.	 Team members – To support them in advancing to supervisor roles
2.	 Supervisors- To support them in advancing to Executive roles
Why GEAR?
-	
Unlock career 
opportunities for 
women
-	
Improve operational 
performance and 
productivity
-	
Increase female 
representation in 
leadership positions
          Based on the foundation laid by P.A.C.E., Hela launched 
the GEAR programme in 2022 together with Better Work, a 
collaboration between ILO and IFC.
Highlights

88  Hela Apparel Holdings PLC | Annual Report 2022/23
Personal Advancement and Career Enhancement (P.A.C.E)
Conducted in collaboration 
with PVH Corp. 
3,053 team members (2,770 female)  trained since 
the introduction of the of this programme to Hela in   
FY 2019/20
Hela was recognised for “Impact and ROI” at the South 
Asian PVH Workshop in January 2023
Target to train 5,620 female garment  
workers by 2024
Conducted in Sri Lanka, 
Ethiopia and Egypt.
Overview
P.A.C.E. is an evidence-based comprehensive learning programme 
that offers training in professional and life skills development for 
team members. 
The programme modules are designed to inculcate essential life 
skills that participants can take into their personal and professional 
lives. Although the syllabus is primarily targeted at females, Hela 
has extended the programme to include males in order to ensure a 
gender-balanced approach.
Modules Covered
-	
Communication
-	
Problem solving & decision making
-	
Time and stress management
-	
Water, sanitation and hygiene
-	
Execution excellence
-	
Financial literacy
-	
General reproductive health
-	
Legal literacy and social entitlement
Gender roles and personal safety is 
embedded in all the modules. 
Key P.A.C.E. Milestones in FY 2022/23
-	
Hela became the First apparel manufacturer 
to implement the P.A.C.E. programme in 
Egypt
-	
Conducted a knowledge sharing workshop 
in Turkey to share the Group’s experience of 
implementing the P.A.C.E. programme
-	
Participated in a panel discussion at the 
South Asian Vendor Workshop on the 
current practices and future developments 
of the programme with 7 other organisations 
that conduct the P.A.C.E. programme in  
Sri Lanka, Bangladesh and India
Human and Social Capital
          P.A.C.E is an evidence-based comprehensive learning 
programme that offers training in professional and life skills 
development for team members. 
Highlights
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Annual Report 2022/23 | Hela Apparel Holdings PLC  89
Created healthy competition between teams
Customers, business partners and other key stakeholders were invited
Graduation ceremony for over 1,300 people
A platform to showcase the talents of our people
Hela Social Capital Graduation Ceremony 2022/23
Hela’s Social Capital Graduation Ceremony was held during the year to formally recognise individuals and teams in the 
Sri Lankan manufacturing plants for their hard work in participating in the Group’s social capital initiatives, as well as their 
dedication and commitment towards the organisation.
-	
Reward and recognise the participation and 
contribution to the Group’s social capital initiatives
-	
Provide a platform to showcase the talents of Hela’s 
employees
-	
Thank key partners for their contribution and 
unstinted support to uplift lives
-	
Enhanced motivation of team members to strive 
further to achieve their life goals
-	
Stronger engagement with external partners
-	
Recognised  avenues to expand social capital 
initiatives both locally and globally
The Purpose
Outcomes Achieved

90  Hela Apparel Holdings PLC | Annual Report 2022/23
Human and Social Capital
The Hela Group 
aims to build 
impactful relationships 
with its employees and the 
wider community through 
engagement and development 
initiatives that create a positive 
environmental, social and 
economic impact
BUILDING COMMUNITY RELATIONSHIPS
The Hela Group aims to build impactful relationships with its 
employees and wider community through engagement and 
development initiatives that create a positive environmental, 
social and economic impact. Each manufacturing facility 
engages with their local community in conjunction with their 
employees to ensure good relations are maintained. During FY 
2022/23, a number of locations in Sri Lanka took the initiative 
to support the needs of school children in rural areas through 
the donation of essential items for their education, such as 
books, sports goods, and musical instruments. Other key 
community engagement initiatives are highlighted below.
Community Engagement Highlights for FY 2022/23 
Medical equipment donations, free medical checkups and awareness 
programmes - Rs. 1.2 Mn investment
Donations to the general public - Rs. 480,000 investment
Stationery, sports equipment and team uniform donations, as well as 
transport for A Level students during Sri Lanka's fuel crisis - Rs. 800,000 
investment
Other donations for religious and environmental initiatives - Rs. 200,000 
investment
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Annual Report 2022/23 | Hela Apparel Holdings PLC  91
OUTLOOK
The Hela Group is cognisant of the role played by its 
employees in driving the Group towards its strategic 
objectives. As a 'Social Capital Company', Hela will continue 
to invest in human and social capital development initiatives, 
making every effort to build a team that is skilled, motivated, 
and that supports the long-term business needs of the Group. 
Key focus areas will be expansion of the P.A.C.E. programme 
to the community, partnering with PVH to launch the BSR, 
HER and STOP projects, as well as launching Diriliya and 
Diridaruwo in Ethiopia, Kenya and Egypt. 
Free medical checkups for Hela Employees in Kenya  
Hela Ethiopia’s donation to a children’s orphanage

92  Hela Apparel Holdings PLC | Annual Report 2022/23
Manufactured Capital
The Group's Manufactured 
Capital, comprising its physical 
infrastructure and technology, 
plays a vital role in the value 
creation process, enabling 
continuous and consistent 
production at high levels of 
quality. Enhancing Hela's 
manufacturing capabilities to 
incorporate new technologies 
is also a key means of attracting 
and retaining customers.
Strategic Priorities
	 Ensure reliable operations and optimise 
capacity utilization through zero downtime 
and extended asset life span
	 Implement business process improvements 
to drive operational efficiency and cost 
reductions
	 Invest in automation and digitalisation to 
increase productivity and reduce waste
	 Nurture a productive and motivated 
engineering team 
	 Drive improvements in environmental 
footprint
Team members from Hela Ethiopia 
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Annual Report 2022/23 | Hela Apparel Holdings PLC  93
10 directly operated 
manufacturing facilities 
spread across Sri Lanka, 
Ethiopia, Kenya  
and Egypt
Rs. 9.0 Bn of Property, 
Plant & Equipment
Capacity  of 
approximately 10 Mn 
Standard Hours
-	
Focus on margin improvement by 
driving operational excellence, as 
well as optimisation of capacity and 
working capital management 
-	
Drive operational and cost 
efficiencies through automation 
process re-engineering, and 
digitisation
-	
Invest in production capabilities
-	
Expand and optimise multi-country 
manufacturing to offer clients lead 
time and cost benefits
-	
Drive improvements in 
environmental footprint
MANUFACTURED 
CAPITAL INPUTS
HOW WE TRANSFORMED VALUE 
(STRATEGIC ACTIONS)
OUTPUTS
95 Mn + pieces of apparel produced 
Over 60% reduction in machine 
downtime
Maintaining Acceptable Quality Limit 
(AQL) of 0.65 
Factory floor at Hela Indochine Apparel, Ethiopia

94  Hela Apparel Holdings PLC | Annual Report 2022/23
-	
The Hela Group invests a significant portion of its financial resources to enhance its manufacturing capabilities. 
Machinery and equipment are regularly upgraded, while advanced technologies and automation equipment is 
introduced where the requirements justify the investment. 
-	
Investment proposals are evaluated using technical, social, environmental and financial criteria to ensure alignment 
with the Group’s overall strategic objectives and goals. The Board provides direction on all expansion plans and 
plant upgrades, while dedicated technical and engineering teams within the Group coordinate their introduction and 
maintenance across its manufacturing facilities.
STRENGTHENING MANUFACTURED CAPITAL
The Hela Group continued to strengthen its manufacturing 
capabilities during FY 2022/23, through improvements in its 
built infrastructure, machinery and equipment upgrades, and 
integration of new digital systems, focused towards supporting 
the Group’s strategic aspirations. This enabled the continued 
delivery of sustainable and innovative apparel supply chain 
solutions across an expanding range of product categories and 
consistent high level of quality, which satisfy the needs of key 
stakeholder groups – most notably, the Group’s customers.  
The expansion of production capacity at Hela’s Egyptian 
manufacturing facility, which commenced operations in late FY 
2021/22, was a key development during the year under review. 
This has been well-received by the Group’s customers as it 
provides a competitive ‘nearshoring’ proposition that reduces 
delivery lead times, enabling more active inventory management.
Manufactured Capital
Elsewhere across the Group’s manufacturing footprint, 
capacity expansion was limited during the year, due to the 
volatility in operating conditions and availability of sufficient 
internal capacity to fulfill existing demand. As such, the key 
focus during FY 2022/23 was on optimising the existing 
capacity through productivity enhancing upgrades to the 
existing machinery base, as well as automation initiatives. 
The overall manufacturing footprint was reduced from 11 to 
10 facilities, via the amalgamation of two nearby production 
facilities in Sri Lanka during the latter months of the year, 
which supported improved cost efficiency.
KEY FOCUS AREAS
Production Technology
The Group’s manufacturing facilities are equipped to 
provide world class manufacturing solutions, producing a 
comprehensive range of products across the Kids Wear, 
Active Wear and Intimate Wear product categories. This 
includes technically complex products, such as ladies bras and 
technical outdoor jackets.
Management Approach
Property, Plant & Equipment in FY 2022/23
%
45%
26%
29%
Land & Building
Plant &
Machinery
Other
Capital Expenditure by Region in FY 2022/23
%
40%
14%
21%
25%
Egypt
Ethiopia
Kenya
Sri Lanka
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Annual Report 2022/23 | Hela Apparel Holdings PLC  95
The majority of the Hela Group’s production technology is 
manual, with sewing machines accounting for the largest 
share. However, the Group has increased its focus on 
driving automation of key processes to benefit from cost 
efficiencies and increased productivity. Investments in 
automated fabric spreaders and cutters across the Group’s 
manufacturing facilities are key examples that have enhanced 
efficiency in the fabric cutting process. Hela also collaborates 
with a number of external partners to ensure access to 
specialised manufacturing technologies when required by its 
customers. These include embellishment, ultrasonic sewing, 
and bonding, and the introduction of these technologies is 
managed by a dedicated technical team that also operate the 
Group’s sampling facilities. The Group’s engineering team is 
responsible for ensuring regular maintenance of all machinery 
and other infrastructure, to ensure minimum machinery 
downtime.
Digital Infrastructure
The Hela Group’s manufactured capital also includes physical 
infrastructure to support digital integration, including 
computers, data centres, local and wide area networks, 
and peripheral devices which facilitated the smooth 
implementation of the SAP S/4HANA Fashion Enterprise 
Resource Planning (ERP) system during FY 2022/23.
In addition, Hela has developed a pioneering Manufacturing 
Execution System (MES), which is one of the first such systems 
to be integrated with the SAP S/4HANA Fashion ERP system 
and extends the group’s digital transformation efforts to the 
factory level. In recognition of this landmark development, 
Hela won the Industry 4.0 award at the Dare to Dream 
Awards 2023, held in partnership with SAP and John Keells 
IT. Building on this success, the organisation plans to continue 
collaborations with global SAP implementation partners to 
offer the MES to other companies in the manufacturing sector 
implementing the SAP S/4HANA Fashion ERP system.
Quality Control
Quality is a key focus area throughout the manufacturing 
process and is monitored at various points, from the initial 
sourcing of input materials to the inspection for defects at the 
end of each production line, upon the packaging of goods and 
immediately prior to shipment. Each sewing line is manually 
monitored by production managers and line-based data is 
input into a production tracking software. 
Flexibility 
Each of the Hela Group’s manufacturing plants generally 
specialises in the production of a particular type of product 
for the purpose of increased efficiency. However, the Group 
has the flexibility to change the products manufactured 
between plants, when required, at relatively low cost through 
conversions or transfers of machinery between manufacturing 
facilities.
Investments in the Group’s manufacturing infrastructure 
also enable flexibility in order to meet customers’ unique 
requirements. The Group has the capability to produce 
technical and salesman samples, bespoke small order 
quantities, or large-scale bulk orders. Its in-house sample 
rooms are used to trial production of new products and 
ensure a smooth introduction to the Group’s manufacturing 
facilities.
An overview of the Group’s directly-operated manufacturing 
facilities is given on the following pages:
  
All key manufacturing 
performance indicators, 
including standard 
hours and efficiency, are 
automatically calculated 
and directly shared 
with the integrated SAP 
S/4HANA Fashion ERP 
system
Automated single source 
for inventory tracking 
from raw materials to 
finished good, including 
embellishment, ensuring 
near real-time visibility of 
production for all users
Robust governance and 
tracking mechanisms 
to ensure continuous 
compliance and to mitigate 
risk
Cloud based system, 
ensuring global visibility and 
business continuity
Key Aspects of the Hela Manufacturing Execution System

96  Hela Apparel Holdings PLC | Annual Report 2022/23
Manufactured Capital
 Hela’s largest manufacturing footprint is in Sri 
Lanka. The country’s reputation as an ethical 
apparel manufacturing hub, provides the Group 
with duty free access to the EU and UK as well as 
in-depth experience in design, manufacturing, and 
operations.
Sri Lanka
6  Manufacturing Facilities
Current capacity
4.6 Mn Standard Hours
Product focus
Intimate Wear
Active Wear
Kids Wear
Enhancements during the year
-	
Installation of biomass boilers at Palapathwala and Thihariya
-	
Auto cutter and spreader installation in Mawathagama
Hela Kenya is the Group’s largest manufacturing 
facility outside of Sri Lanka and employs over 
4,000 team members. The facility is also one 
of the most extensive apparel manufacturing 
facilities in the country, accounting for 
approximately 20% of Kenya’s total apparel 
exports. 
Kenya
1  Manufacturing Facility
Current capacity
 2.9 Mn Standard Hours
Product focus
Intimate Wear
Active Wear
Enhancements during the year
-	
Investment in physical infrastructure for the new Manufacturing Execution 
System
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Annual Report 2022/23 | Hela Apparel Holdings PLC  97
Having commenced operations in Ethiopia with 
150 team members in 2017, the Group expanded 
its operations within the country in 2021 by 
acquiring its second manufacturing facility and 
its first focused solely on bras, the most technical 
product in the intimates wear  
category. 
Ethiopia
2  Manufacturing Facilities
Current capacity
 1.8 Mn Standard Hours
Product focus
Intimate Wear
Enhancements during the year
-	
Installation of auto cutters
Egypt
The latest addition to Hela’s global manufacturing 
footprint, this 275,000 sq. ft. facility employs 
over 2,000 people. The facility offers competitive 
nearshoring advantages to key markets such as 
Europe and North America. 
 
1  Manufacturing Facility
Current capacity
 1.1 Mn Standard Hours
Product focus
Intimate Wear   |    Active Wear   |   Kids Wear
Enhancements during the year
-	
Installation of auto cutters and spreaders
-	
Installation of strip cutter and fabric rewinding machine 
-	
Installation of semi-automatic fabric inspection machine

98  Hela Apparel Holdings PLC | Annual Report 2022/23
ENVIRONMENTALLY RESPONSIBLE 
MANUFACTURING 
The Hela Group is conscious of the environmental impact 
of its manufacturing process and closely monitors such 
impacts. The Group also seeks to actively invest in responsible 
and sustainable solutions that minimise the impact on the 
environment.
Manufactured Capital
The Hela Group is 
conscious of the 
environmental impact of its 
manufacturing process and 
closely monitors such impacts. 
The Group also seeks to 
actively invest in responsible 
and sustainable solutions that 
minimise the impact on the 
environment
-	
Replaced diesel boilers at the Palapathwala and 
Thihariya manufacturing facilities with biomass boilers, 
thereby driving a reduction in the Group’s carbon 
footprint 
-	
Sustainable sourcing of biomass to power the boilers
-	
Investment in solar power generation at 3 
manufacturing facilities
Key Initiatives
Hela Narammala Manufacturing Facility in Sri Lanka 
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Annual Report 2022/23 | Hela Apparel Holdings PLC  99
39% of Hela’s energy requirements are sourced through 
renewable sources. In Sri Lanka, rooftop solar power plants 
have been set up in 3 factories and contributed 2.2 Mn 
kWh to the National Grid in FY 2022/23, while 3 biomass 
boilers with a total capacity of 2.8 tonnes are operational in 
3 factories. Refer to the Natural Capital section for further 
details.
WAY FORWARD
The Hela Group will continue to focus on the strengthening 
its manufacturing capabilities during the current financial year 
based on similar focus areas to ensure enhanced capabilities 
and efficiencies. This will ensure that the Group is well placed 
to remain competitive in the midst of a challenging operating 
environment, and take advantage of new opportunities as 
conditions improve.
An Auto Cutter at Hela Thihariya 
Biomass Pellets

100  Hela Apparel Holdings PLC | Annual Report 2022/23
Relationship Capital
Strategic Priorities
The Hela Group is committed 
to nurturing strategic 
partnerships with its 
customers and suppliers. 
These relationships are built 
on mutual respect, trust and 
accountability, and strengthen 
the Group’s Relationship 
Capital. They also strengthen 
the organisation's resilience to 
external shocks and improve 
its overall agility.
	 Ensuring mutually beneficial strategic 
collaborations beyond manufacturing
	 Increasing customer penetration
	 Building supply chain resilience through 
regionalisation of the supply chain
	 Supplier integration and collaboration
	 Supporting empowerment
Tellef Thorleifsson – CEO of Norfund, during his visit to Hela Kenya 
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Annual Report 2022/23 | Hela Apparel Holdings PLC  101
-	
Acquire new customers and 
increase penetration with existing 
customers
-	
Pursue growth in new and non-
traditional markets
-	
Build a strategically fit supply chain
-	
Achieve preferred vendor status 
across key customers
-	
Build strategic partnerships with 
customers by offering fashion 
forward, bespoke designs that meet 
respective brand qualities
-	
Drive social and environmental 
compliance
HOW WE TRANSFORMED VALUE 
(STRATEGIC ACTIONS)
OUTPUTS
A compelling and 
competitive customer 
value proposition
Dedicated customer 
service teams
A regionalised, robust 
supplier network
HUMAN CAPITAL 
INPUTS
45% increase in Africa-for-Africa raw 
material sourcing
Multiple customer awards
New customers onboarded
Payments of Rs. 66 Bn to suppliers
A team from Hela’s Grandpass office in Sri Lanka

102  Hela Apparel Holdings PLC | Annual Report 2022/23
Relationship Capital
-	
The Hela Group’s overall management approach is relationship-centric across all stakeholder groups. Nonetheless, 
this is particularly important among its customers and suppliers, and the Group gives strategic priority to building, 
strengthening and sustaining the trust and confidence of these parties.
-	
A comprehensive set of policies, together with the systems and processes in place, guide employee and management 
actions. The Group practices fair trade and gives assurance on product quality and product labelling, as well as 
ensuring responsible marketing and communications. During the year, there were no reported incidents of corruption 
or fraud and no penalties for non-compliance with laws or regulations pertaining to socio-economic compliance, 
including customer health and safety, marketing, labelling information or communications.
Management Approach
BUILDING STRATEGIC CUSTOMER PARTNERSHIPS 
The Hela Group has evolved beyond the traditional ‘cut and 
sew’ business model of apparel manufacturing to become an 
end-to-end supply chain solution provider for its customers, 
offering services ranging from design to distribution. 
Direct and Seamless Engagement 
On-site Hela staff at strategic customer 
locations, ensure brand requirements are 
understood and shared with Hela’s global 
team promptly.
White space-focused Sales Development
Proactively looking for gaps and 
opportunities for new products or 
services.
Collaborative Design & 
Innovation
Adopting a collaborative design 
and innovation process focused 
on creating hero products.
Africa-focused Supply Chain 
Advisory Services
Actively supporting customers 
to develop their supply chains 
in Africa from fibre to garment 
through strategic collaborations.
Flexibility & Reliability
The Group has the flexibility to produce 
customised order quantities and meets 
customer demands for quality, speed and timely 
delivery through its reliable supply chain. 
Sustainability & Traceability
Hela provides sustainable products 
and solutions to the market, which 
are combined with traceability across 
the supply chain. 
Tailored Logistics & Distribution 
Services
Capacity to curate custom solutions 
for logistics and distribution based 
on customer requirements and 
expectations.  
Customer Value Proposition
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Annual Report 2022/23 | Hela Apparel Holdings PLC  103
Customer Engagement Focus Areas
Striving to serve its customers better, the Group continuously 
tests new supply chain models to reduce delivery times and 
foster innovative collaborations through its global footprint. 
In addition, recent investments in digital capabilities and 
the strengthening of its design and technical functions 
have increased collaborations on product innovation. These 
activities have been realised in relationships with customers 
that are strategic, rather than transactional, and have given 
Hela a significant advantage over its competition. 
The Group’s strategic collaborations with customers also 
extend beyond manufacturing and include long term 
partnerships aimed at driving employee empowerment and 
community upliftment, such as P.A.C.E. and Diridaruwo. 
(Refer pages 84 to 88.) These progammes have succeeded 
in strengthening customer relationships through meaningful 
engagement on a wide range of areas.
Customer Engagement and Satisfaction
Hela’s performance and customer satisfaction is measured 
through independent evaluations conducted by the customer 
themselves, and is based on multiple criteria including 
Joint Product 
Development
Physical 
Visits
Dedicated 
Resource 
Personnel
Customer 
Satisfaction 
Surveys
Retaining Customer Confidence in FY 2022/23
Retaining customer confidence is crucial to sustaining the 
Group’s strategic customer partnerships and is a key focus 
for the management. This requires continuously high levels of 
service and communication, which all employees contribute 
towards.
Political and economic volatility in Hela’s operating countries 
is a key challenge to maintaining customer confidence, which 
is largely outside of the Group’s control. This was particularly 
the case during FY 2022/23 as a result of the severe economic 
crisis in Sri Lanka, which contributed towards fuel shortages, 
routine power cuts, logistics delays, and social unrest.
The Hela Group, as well as the wider apparel manufacturing 
industry in Sri Lanka, made significant efforts to ensure that 
the impact on operations and customer delivery commitments 
was extremely limited. Proactive and regular communication 
with both customers and suppliers was also crucial to 
maintaining confidence and minimising long-term reputational 
damage for the Sri Lankan industry. In addition, the Group 
continued to leverage its global manufacturing facilities to 
meet client expectations on order fulfilment. 
Flagging demand due to the economic downturns in the 
Group’s major export markets in the latter months of FY 
2022/23 was another critical challenge during the year. This 
intensified competition between apparel suppliers as total 
order volumes reduced and major brands became more cost 
conscious. Nonetheless, the Group’s strategic customer 
partnerships remain a key strength for Hela to effectively 
secure its order book and maintain capacity utilisation. 
The Group has a strong and well-established customer base.
(Refer page 12 About Hela Group for list of key buyers) 
quality, lead time and on-time delivery. Feedback from these 
evaluations helps the Group to take corrective action and 
improve customer satisfaction. 
Hela Group Revenue by Shipping Destination 
in FY 2022/23
%
59%
29%
12%
USA
UK & EU
Other

104  Hela Apparel Holdings PLC | Annual Report 2022/23
Relationship Capital
ENSURING AN AGILE & ROBUST SUPPLY CHAIN 
Hela’s supply chain is central to the Group’s business model 
and value proposition. The ability to consistently meet 
customer commitments, remain competitive and continue 
to evolve sustainably depends heavily on the strength and 
reliability of its supply chain.
Therefore, the Hela Group has implemented a formal supply 
chain management programme, to identify strategically 
aligned supply chain partners and build sustainable long-term 
partnerships. The Group’s supply chain team maintains a high 
level of engagement with these suppliers, adopting a shared 
value approach to business, that facilitates mutual growth.
During the year under review, a procurement committee, 
chaired by the Group CEO, was established to centralise the 
Group’s procurement function and enable economies of scale 
in sourcing decisions. The ongoing digitalisation of procurement 
processes and integration of digital tools such as FastReact with 
the new SAP S/4HANA Fashion ERP system, is expected to 
simplify and streamline processes, reduce transactional costs 
further and improve raw material lead times. 
SUPPLIER SELECTION AND ENGAGEMENT 
The Hela Group’s suppliers are required to uphold the Group’s 
values, and high social and environmental standards. The Group 
adopts stringent guidelines and tools for supplier selection, and 
requires all suppliers to contractually commit to complying with the 
Hela Supplier Code of Conduct as part of the onboarding process.
A Diverse Customer Base to Support Demand Security
The Hela Group has consciously built a diverse 
customer base across varied product categories, 
distribution channels and market segments to 
support demand security
Hela’s product focus ensures it is less 
susceptible to shifts in fashion trends 
or major economic cycles, particularly 
in the Intimate Wear and Kids Wear 
categories. It also benefits from the 
long-term growth trajectory in demand 
for Active Wear
Hela’s customer portfolio encompasses luxury 
and lifestyle brands, as well as mass market 
brands focused on more cost-conscious 
consumers. This mitigates the risks to the Group 
from demand shifts in particular market segments
The Group’s customer base 
encompasses a range of distribution 
channels, from supermarkets to 
direct-to-consumer ecommerce 
channels. This further reduces 
demand risks by ensuring diversified 
exposure to a range of channels
Diverse 
market 
segments
Resilient 
product 
categories 
Varied 
distribution 
channels 
HELA CODE OF CONDUCT FOR SUPPLIERS 
-	
Legally binds all suppliers at the point of onboarding
-	
Prescribes that they meet all applicable legislative 
requirements including those relating to child labour, 
minimum wage levels, health and safety standards, and 
environmental management 
-	
Obligates suppliers to act ethically and fairly, and uphold 
fundamental business and human rights, including 
fair labour practices, anti-bribery and corruption 
requirements; and to be transparent in their business 
practices 
OVERVIEW OF HELA’S SUPPLY CHAIN
-	 85% of Hela’s average annual procurement spend is 
on routine items such as fabrics, trims and packaging for 
the manufacture and supply of core apparel products
-	
The remaining 15% is for suppliers and service 
providers who provide ancillary products and services 
such as embroidery, printing and washing 
-	
Approx. 25% of total fabric purchases are from 
certified sustainable sources, including by organisations 
such as the Better Cotton Initiative
Supply Chain Management
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Annual Report 2022/23 | Hela Apparel Holdings PLC  105
The Group’s comprehensive evaluation process involves 
stringent vetting of supplier capabilities and credentials. 
Areas of focus include quality, on-time delivery, innovation 
capabilities, certifications, upstream and downstream capacity, 
and transparency of information flow. 
SUPPLY CHAIN RISK MANAGEMENT 
The Group’s supply chain team employs management tools 
such as demand planning, supplier integration, and risk 
forecasting to enable effective and efficient management 
of suppliers. It also works closely with key fabric suppliers 
to understand risks and advise suppliers on appropriate 
The Hela Group has 
implemented a formal 
supply chain management 
programme, to identify 
strategically aligned supply 
chain partners and build 
sustainable long-term 
partnerships
mitigation strategies to help them plan their production 
capacity and enable the Hela Group to meet its commitments 
to customers. 
During the year, effective management of the Hela Group’s 
supply chain was of critical concern, following disruptions to 
global supply networks from the challenging macro-economic 
environment, continued shortage of containers in East 
Asia, COVID-19 lockdown restrictions imposed on several 
provinces in China and the impact of the Russia-Ukraine 
conflict. Proactive risk mitigation strategies, close engagement 
with suppliers and maintenance of a diverse, reliable and 
in-country supply base minimised operating challenges and 
ensured product quality and timely delivery. 
SUPPLY CHAIN REGIONALISATION 
The Hela Group continued its supply chain regionalisation 
strategy during the year, as a key pillar of the management’s 
approach to ensuring an agile and robust supply chain. The 
Group seeks suppliers with significant location proximity 
to Hela’s manufacturing facilities, allowing it to benefit 
from improved supply chain agility and reduced lead times 
for delivery of critical raw materials. Cost benefits from 
lower stock holding and reduced logistics costs are added 
advantages. 
Mutually beneficial partnerships with these suppliers have 
resulted in a significant increase in the share of procurement 
from the Indian Sub-Continent and Africa for Hela’s 
manufacturing facilities located in these regions. 
Change in Sourcing by Region During FY 2022/23 (% Change from Previous Year)
Africa and 
Middle East 
+42%
Indian Sub-
Continent  
-16%
Far East  
-47%

106  Hela Apparel Holdings PLC | Annual Report 2022/23
Relationship Capital
Continuous 
and ongoing 
communication, and 
frequent vendor 
visits to maintain 
engagement.
Supplier scorecards 
to monitor the 
performance of key 
suppliers on critical 
aspects, including 
quality, delivery, 
and information 
sharing. Areas 
for improvement 
are subsequently 
discussed with the 
relevant suppliers
Routine supplier 
audits, including 
announced and 
unannounced on-
site inspections of 
production facilities. 
Non-conformities 
identified are 
discussed with 
suppliers, and Hela 
provides them with 
guidance and support 
to assist them in 
taking necessary 
corrective action.
Routine due 
diligence activities 
to confirm suppliers’ 
adherence to social 
and environmental 
best practices, and 
compliance with 
product regulatory 
guidelines.
Collaborations with 
suppliers to promote 
raw material 
innovation covering 
performance and 
sustainability. (More 
on page 64, Natural 
Capital)
Supplier Engagement  Activities
The Group's also formalised it Africa-focused supply 
chain development activities during FY 2022/23, with the 
establishment of the Interlock Africa Initiative.
RESPONSIBLE SOURCING 
Ensuring responsible sourcing of raw materials is an important 
element of the Hela Group’s environmental and social 
footprint. The Group’s suppliers are therefore considered 
critical partners in this respect, contributing to the ongoing 
and sustainable growth of the business.
Hela encourages its suppliers to voluntarily adopt 
environmental and social benchmarks including Oekotex 100, 
Organic Content Standard, Global Organic Textile Standard 
and the Global Recycle Standard. In addition, the organisation 
is is committed to increasing its sourcing only from suppliers 
aligned to responsible standards such as the Better Cotton 
Initiative.
Raw Material Purchases by Region 
%
Africa to Africa
Indian Sub Continent 
to Sri Lanka
0
20
40
60
80
100
FY 21/22
FY 22/23
Sachith Balage, Hela’s Director of Group Sourcing & Supply Chain with H.E. Mrs. Anisa Kapufi Mbega, High Commissioner of the 
United Republic of Tanzania to India
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Annual Report 2022/23 | Hela Apparel Holdings PLC  107
The Hela Group’s also launched a Cotton Fibre Sourcing 
policy in 2022, which outlines the Group’s expectations of 
suppliers in relation to the sourcing of cotton fibres, and 
demonstrates its commitment to ongoing due diligence to 
maintain the traceability of its supply chain. Moreover, the 
Group has adopted the US Cotton Protocol to standardise its 
methodology for the assessment of sustainably grown cotton.
-	 > 80% of procurement spend of the Group’s Sri 
Lankan operations is from the Indian Sub-continent
-	 + 45% increase in procurement spend from Africa-
to-Africa regional sourcing
As an extension of its regionalisation strategy, the Hela Group has established the 
Interlock Africa initiative to continue its pioneering role in driving the development 
of the regional supply chain for the export-orientated apparel manufacturing sector 
in Africa. The long-term objective of the initiative is to establish a comprehensive 
and self-sufficient supply chain for the apparel manufacturing sector in Africa, which 
extends all the way to raw fibres and draws on the region’s ample supply of cotton.
Hela has proactively sought to build strategic relationships with existing regional 
suppliers committed to serving the export sector, by sharing demand forecasts, 
and supported them to meet the necessary standards by providing technical and 
management support. It has also provided financing support to enable expansion of 
their operations. As another important pillar of the initiative, Hela has leveraged its 
existing strategic partnerships with leading global suppliers to encourage them to 
establish operations in Africa. 
Key Focus Areas
-	
Strategic relationship 
building
-	
Technical & 
management support 
-	
Investment facilitation
-	
Financing support
Interlock Africa
OUTLOOK
The Hela Group will continue to focus on bolstering its 
customer engagements strategy, as a key strength of the 
organisation. These relationships are also critical in supporting 
the organisation in the context of a challenging operating 
environment.
Hela Group's Supply Chain Focus Areas 
From a supply chain perspective, the focus will remain on 
driving further progress on the Group's four supply chain 
focus areas.
Resilient
 Regionalised
Recycled
Responsible

108  Hela Apparel Holdings PLC | Annual Report 2022/23
Intellectual Capital
Strategic Priorities                 
The Hela Group's Intellectual 
Capital comprises of its brand, 
tacit knowledge, systems 
and processes, together 
with its design expertise and 
innovation capabilities. This 
is a key driver of sustainable 
growth, providing the Group 
with a competitive advantage 
in terms of operational 
excellence, industry expertise 
and brand reputation. 
	 Enhance reputation through brand building 
initiatives
	 Drive environmental sustainability through 
product and process innovations
	 Leverage technology to drive productivity 
and efficiencies
	 Invest in skills enhancement and knowledge 
sharing initiatives
	 Benchmark processes and systems to 
international best practices
Hela employees in discussion 
Capitals Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  109
The Hela brand
Systems, standards and 
processes
Tacit knowledge and 
experience of the team
In-house sample  
rooms
Dedicated technical and 
design teams
-	
Implementation of Digital Core 
Project underpinned by SAP 
S/4HANA Fashion ERP system
-	
Strengthen design capabilities 
-	
Grow new product categories with 
higher contribution margins 
-	
Enhance reputation through brand 
building initiatives
-	
Benchmark processes and systems 
to international best practices 
INTELLECTUAL 
CAPITAL INPUTS
HOW WE TRANSFORM VALUE  
(STRATEGIC ACTIONS)
OUTPUTS
New product accreditations
Approximately 30% design hit rate 
New product and process innovations
Increase in brand value and  
recognition
SAP team at Hela Indochine Ethiopia

110  Hela Apparel Holdings PLC | Annual Report 2022/23
Intellectual Capital
The management nurtures the Group’s intellectual capital base by investing in systems and processes, increasing brand 
visibility and ensuring a culture of learning and knowledge sharing.
Management Approach
THE HELA BRAND
The Hela Group has established its brand globally as a 
sustainable, ethical and innovative apparel supply chain solution 
provider in the Intimate Wear, Active Wear and Kids Wear 
product categories. The Brand has become a preferred partner 
for major global fashion retailers, as a reliable, established and 
high-quality apparel manufacturer, with a competitive global 
manufacturing footprint to meet diverse customer needs.  The 
Group is also well recognised for its deep-rooted focus on 
environmental sustainability and community empowerment 
in nurturing social capital. Key initiatives such as P.A.C.E. 
and GEAR are strategic collaborations with international 
organisations  that contribute to its global reputation as a 
leader in socially responsible manufacturing.
Awards and accolades further strengthen the brand and reflect 
the Group’s commitment to pursuing excellence and maintaining 
high standards. (Please refer page 14 for Awards and Accolades)
SYSTEMS, STANDARDS AND PROCESSES
Hela complies with a range of standards and certifications 
related to product quality and safety, as well as environmental 
and social responsibility, strengthening the internal processes 
of the Group. This serves as a form of assurance to 
stakeholders regarding the robustness and credibility of the 
Group’s operations.  (Refer page 13 for details on compliance 
and product certifications)
DIGITAL TRANSFORMATION 
The Group's investments in digital infrastructure, including a 
cloud first and mobile first strategy for storage and advanced 
software, has contributed to the strengthened capabilities and 
enhanced productivity of its operations.
For example, the use of AI-generated 3D models in CAD 
software has eliminated the need to produce several samples 
of the product for buyer selection and review, reducing fabric 
wastage, while expediting the design process. 
The implementation of SAP’s S/4HANA Fashion Enterprise 
Resource Planning (ERP) system, the central pillar of the Hela 
Group’s digital transformation strategy, which began in July 2021, 
was completed in April 2023. The cloud hosted system supports 
the creation of a streamlined ‘Digital Core’ for the Group, enabling 
Hela to be more data-driven and agile in navigating business 
challenges, while serving its customers better. It is noteworthy that 
Hela Group is the first apparel company in Sri Lanka to implement 
the SAP S/4HANA Fashion ERP system. 
Hela has also developed a pioneering Manufacturing Execution 
System (MES), which is one of the first such systems to be 
integrated with SAP S/4HANA Fashion ERP system and 
extends the digital transformation to the factory floor. Please 
refer to the Manufactured Capital section on page 92 for 
further details on the MES.
ORGANISATIONAL TACIT KNOWLEDGE
The Group has nurtured an invaluable talent base of tacit 
knowledge and collective industry experience. The skills and 
expertise of its employees underpins the Group’s competitive 
edge and contributes to its success as one of the fastest 
growing apparel manufacturers in the industry. Leveraging its 
industry expertise, the Group expanded production facilities 
Benefits of the ‘Digital Core”
Ensuring 
consistency in 
systems used 
across multiple 
locations of the 
Group
Improvement in 
on-time delivery 
by enabling real-
time inventory 
visibility and order 
confirmation
Streamlining 
of operations 
to reduce lead 
times, drive 
cost  reductions 
and improve 
efficiencies
Additional data 
analytics and 
business insights 
for decision 
making, 
Robust disaster 
recovery 
systems
Reduced cyber 
vulnerabilities 
Capitals Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  111
to pioneer apparel manufacture in East Africa. Setting up its 
first factory in Kenya in 2016, revenue from Africa has grown 
to account for over 50% of total group revenue today. 
Implementation of 
SAP’s S/4HANA 
Fashion Enterprise Resource 
Planning (ERP) system, the 
central pillar of Hela Group’s 
digital transformation strategy, 
which began in July 2021, was 
completed in April 2023
Skills and Expertise of the Leadership Team
The Group boasts an experienced and skilled 
leadership team, who have been involved with 
multiple acquisitions over the past 5 years 
Strong Learning Propositions
Rs. 12.2 Mn investment in Training and 
Development to enhance the skills of 
employees
A Culture of Knowledge Sharing
The learning culture within the Group 
encourages employees to think out of the 
box while empowering them in their roles
Tenure of Service
29% of employees have completed more 
than 5 years of service, nurturing their 
knowledge and experience within the Group
Organisational Tacit Knowledge of the Hela Group
Tenure of Executive-level Employees as of FY 22/23
%
71%
23%
5% 1%
Under 5 years
6-10 years
11-20 years
Over 20 years
Hela Enterprise Process & Digital Solutions Team (EPDS), Sri Lanka 
Hela employees at a SAP knowledge sharing session

112  Hela Apparel Holdings PLC | Annual Report 2022/23
INNOVATION AND DESIGN
The Group operates four design centres located in Sri Lanka, 
the US, UK and France. These centres lead the Group’s 
product development work, supported by a team of data 
scientists who track evolving consumer preferences and 
provide market intelligence, thereby maintaining a pulse on 
global fashion trends. The design teams also regularly engage 
in face-to-face interactions with the Group’s key clients to 
build relationships and better understand each brand's unique 
features.  Client insights are shared with Hela’s global teams.  
Hela’s development capabilities are driven by the technical 
and design teams. Both teams are supported by sample 
room facilities at the Company’s Head Offices in Sri Lanka, 
where new technologies and products can be tested. Fashion 
forward hero products are designed and developed, bespoke 
to each brand. The increase in design hit rate over recent 
years confirms the Hela Group’s sharpened expertise in 
design. 
Emerging technology such as 3D design and fitting facilitates 
seamless collaboration between in-house designers and client 
teams to expedite commercialisation of these concepts.  
In recognition of Hela’s design expertise and high-quality 
production, the Group has secured licensing and approval 
from leading Brands including Disney to produce their 
branded merchandise. 
Innovation is key to achieving sustainable growth and 
maintaining a competitive edge. The Hela Group works in 
close collaboration with its customers, as well as suppliers to 
develop material, product and manufacturing innovations. The 
Group also proactively explores means of driving circularity, 
reducing wastage and improving efficiency. 
OUTLOOK
Integration of existing and new systems with the SAP 
S/4HANA Fashion ERP system will optimise business 
processes and consolidate Hela's Digital Core, supporting 
organisational growth. The Group will also look to further 
enhance the systems in place in order to enable seamless 
integration into customer and supplier systems. 
Intellectual Capital
Coordinates the introduction of new technology required 
to manufacture a particular product or to improve the 
efficiency of the existing production process. They also liaise 
with third parties to explore collaborations in additional 
technologies, such as bonding or ultrasonic sewing.
Technical Team
Collaborates with customers on developing new products, 
carrying out cost engineering based on customer 
requirements and identifying fabric requirements, enabling 
the Group to continuously meet customer expectations. 
Design Team
The Group is conscious of the need to nurture its intellectual 
capital and will continue to strengthen it through targeted 
investments in the medium and long term. 
SAP training session at Hela Egypt 
Capitals Report

partnerships
O F  R E S P O N S I B I L I T Y
Corporate Governance & Risk

114  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
The global challenges of FY 
2022/23 continued to test 
the resilience of corporate 
governance frameworks across 
the world. At the Hela Group, 
the Board of Directors remained 
focused on strengthening the 
organisation’s governance 
framework, while being led by 
its core purpose as it navigated 
the evolving operating 
environment.
APPROACH TO GOVERNANCE
The Board of Directors has established robust governance 
practices and frameworks that underpin the Hela Group’s 
operations. These are aligned to the Group’s core values 
and drive a culture of accountability, proactive risk and 
performance management, as well as strategic agility. 
Supporting integrated thinking, the framework seeks to 
reconcile the interests of the Hela Group, its stakeholders, and 
wider society in creating and protecting sustainable value.
Audit & Risk 
Committee
Group Chief Risk 
Officer & Internal 
Audit 
External Auditors
Shareholders
Board of  
Directors
Group CEO
Nomination 
Committee
Related Party 
Transactions Review 
Committee
CFO
Group Management 
Committee (GMC)
 Remuneration 
Committee
Company  
Secretary 
Governance Structure of the Hela Group
Reporting lines

Annual Report 2022/23 | Hela Apparel Holdings PLC  115
COMPLIANCE
The Hela Group and its Board of Directors are conscious of their duty to comply with all laws, regulations, regulatory 
guidelines, internal controls and approved policies, and has implemented controls to provide reasonable assurance of 
its compliance.
The Hela Group is compliant with all relevant legal and statutory requirements, including the ILO conventions and 
other laws or regulations applicable to the jurisdictions it operates in. During the year under review, there were no 
material penalties or fines imposed on the Hela Group, or its Directors, for contraventions of any laws or regulations.
The following internal and external instruments support the Hela Group’s Corporate Governance Framework. 
Mandatory External 
Regulations
-	
Companies Act No. 7 
of 2007
-	
Listing Rules of the 
Colombo Stock 
Exchange (CSE)
-	
Securities and 
Exchange Commission 
of Sri Lanka Act. No 19 
of 2021
-	
UN Global Compact
-	
Code of Best Practice 
on Corporate 
Governance issued by 
Institute of Chartered 
Accountants of Sri 
Lanka (2017)
-	
Articles of Association
-	
Board and Commitee 
Charters
-	
Group Policies and 
Code of Conduct
-	
Strategic Planning
-	
Budgeting and Finance
-	
Risk Management
-	
People Management
-	
IT Governance
-	
Stakeholder Engagement
Voluntary Standards
Internal Frameworks 
Internal Mechanisms
During FY 2022/23, the Board of Directors engaged proactively with the management, providing leadership to navigate the 
exceptionally challenging operating environment. The Board spent a considerable amount of time assessing the risks to the 
Hela Group, its impact on stakeholders, and proposed business plans as presented by the GMC. The individual Director’s 
insights supported collective decision making by the Board, and all parties continued to be guided by the Group’s values and 
commitment to its purpose.
In addition to standard agenda items, the Board focused on the following key topics during FY 2022/23:
-	
Increased oversight in managing the risks to the Group arising from the challenging operating environment, including 
evaluating business continuity plans
-	
Assessing the impact of significant government policy measures in the Group’s operating countries, including increases in 
utility tariffs, interest rates and income tax, and considering mitigation steps 
-	
Increasing engagement with key stakeholders to retain customer and investor confidence 
-	
Evaluating progress made on the Hela Group’s social capital programmes and the impact of the challenging operating 
environment on the wellbeing of the Group’s employees and wider community 
-	
Providing oversight to the Group’s digital transformation project, including the implementation of the SAP S/4HANA 
Fashion Enterprise Resource Planning (ERP) system
Governance of the Hela Group in FY 2022/23

116  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
STRATEGIC GUIDANCE
Provides guidance and approves the 
management’s strategic plans for the Group
APPROVES POLICIES AND CAPITAL 
PLANNING
Gives effect to strategy, by approving Group 
policies and capital allocations
OVERSIGHT
Monitors the performance of key 
managment and the implementation of 
strategic initiatives
ACCOUNTABILTIY
Ensures accoutability to key stakeholder 
through reporting disclosures, and wider 
engagement 
Board’s Primary Governance Roles and 
Responsibliites 
Governance Framework & Structure 
-	
Provide strategic direction
-	
Monitor implementation of strategy
-	
Set corporate values and promote ethical behaviour
-	
Establish systems of risk management, internal 
control, and compliance
-	
Be responsive to the needs of society
-	
Meet obligations to shareholders, employees and 
other stakeholders, balancing their interests in a fair 
manner
-	
Present a balanced and understandable assessment of 
the Company’s position and prospects
-	
Safeguard assets and ensure their legitimate use
-	
Ensure succession planning and the continued ability 
of the Company to operate without any disruption
KEY BOARD RESPONSIBILITIES
The Board of the Hela Group provides leadership and 
assumes collective responsibility for the overall governance, 
performance, strategy and affairs of the organisation. It has 
delegated specific oversight responsibilities that warrant 
greater attention to four Board sub-committees. Mandates 
and committee composition are summarized on page 119. 
All committee mandates were reviewed during the year to 
align with the provisions of relevant statutory and regulatory 
requirements, and to enhance effectiveness in the discharge 
of their respective duties.  
The Group CEO is accountable to the Board for delivering the 
agreed strategic goals of the Group. They lead the corporate 
management team in the design and implementation of 
Hela Group’s strategic plan and provide regular reporting on 
key matters to enable effective oversight by the Board. The 
Board also ensures that Key Management Personnel (KMP) 
are competent, and have the requisite skill, knowledge, and 
experience to carry out their duties. Strategically-aligned 
Key Performance Indicators (KPI) set by the Board also drive 
performance and the achievement of objectives.

Annual Report 2022/23 | Hela Apparel Holdings PLC  117
The Board of Directors comprises of 8 members, 3 of whom 
are Independent Directors. An additional 3 non-executive 
members of the Board are employees of Rianta Capital, the 
investment advisor to the Group’s largest shareholder, Lesing 
Hela Limited. 
The Directors represent diversity in skills, expertise, industry 
experience and demographics, thereby contributing diverse 
thinking to the Board and enhancing the overall depth and 
quality of discussions. The Board’s Non-Executive Directors 
are eminent professionals in their respective fields. Please 
refer to pages 26 to 29 for brief profiles of each member of 
the Board of Directors.
AN EFFECTIVE BOARD 
Board Composition
BOARD SIZE
8
The number of Board members was 
increased from 7 to 8 during FY 2022/23, 
encouraging healthy debate while 
meeting good governance practices. 
Independence of NEDs
%
57%
43%
Independent 
Non-
Independent 
INDEPENDENCE
DIVERSITY OF NON-EXECUTIVE TENURE
Sound balance between continuity and new 
expertise and insights. 
Diversity of Non-Executive Tenure
No.
< 3 years
3 - 6 years
0
1
2
3
4
5
GENDER DIVERSITY
1 : 7
DIVERSITY OF EXPERTISE
# Members
Apparel
2
Private Equity
3
Finance 
2
Business leadership  
1
AGE DIVERSITY 
Well represented, balancing experience and 
perspectives. 
Median Age
55 years
BOARD COMPOSITION
Chairman (Independent  
Non-Executive Director) 
 
Other Non-Executive 
Directors
  
  
  
Independent Non-Executive 
Directors
  
Executive Directors

118  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
Financial Acumen
The Board has sufficient financial acumen and knowledge 
to offer guidance on matters of finance. Two directors, 
including the Chairman of the Audit & Risk Committee, are 
finance professionals, while other members of the Board are 
experienced in handling matters related to finance through 
leadership in numerous organisations. 
Board Refreshment 
Board refreshment allows for the introduction of members 
with new skills, insights and perspectives, while retaining 
valuable industry knowledge and maintaining continuity. The 
Board is refreshed periodically through new appointments, 
retirements and resignations.
BOARD REFRESHMENT IN FY 2022/23 
  New Appointments
-	
Mr. Shlomo Doron (NED) w.e.f. 05 October 2022
-	
Mr. Shesan Khan (NED)  w.e.f. 05 October 2022 (In 
addtion to his role as Alternate Director to Dr. Alastair 
Alderton)
  Resignations
-	
Ms. Aroshi Nanayakkara (INED) w.e.f. 31 August 2022
-	
Directors are appointed by the Board following 
a formal and transparent process, and based 
on recommendations made by the Nomination 
Committee. Newly appointed Directors are formally 
elected by the shareholders at the subsequent Annual 
General Meeting.
-	
The Nomination Committee makes recommendations 
to the Board on new appointments having considered 
the combined knowledge, experience and diversity of 
the Board in relation to the Group’s  strategic plans.
-	
Appointments are communicated to the CSE and 
shareholders through market announcements and 
include a brief resume of the Director. 
-	
Directors may serve on the Board until they reach an 
age of seventy (70) years, in line with the provisions of 
the Companies Act of 2007.
-	
Notice has been given to Shareholders pursuant 
to Section 211 of the Companies Act of 2007, 
of the intention to re-appoint Mr. A.R. Rasiah not 
withstanding the age limit of seventy years.
-	
Resignations or removal, if any, of Directors and the 
reasons are promptly informed to the CSE through 
market annoucements. 
Appointments
Retirement/Resignation & Director Tenure

Annual Report 2022/23 | Hela Apparel Holdings PLC  119
Board Committee
Mandate
Composition 
No. of 
Meetings Held
Audit & Risk Committee
Refer page 146 for the 
Report of the Audit & Risk 
Committee 
Provide oversight on financial reporting, internal 
controls and functions relating to internal and 
external audit
Total Directors - 5
INED*  - 3
NED  - 2
ED - 0
10
Nomination Committee
Refer page 154 for the 
Report of the Nomination 
Committee 
Make recommendations to the Board on all new 
appointments and nominate board members for 
positions within the subcommittees of the Board 
as and when required
Total Directors - 4
INED - 2
NED* - 2
ED - 0 
4
Remuneration Committee
Refer page 150 for the 
Report of the Remuneration 
Committee 
Formulate and review remuneration policies 
of the Group, set guidelines for remuneration 
of the Group’s Senior Management, and 
recommend the remuneration payable to the 
Group CEO and Executive Directors
Total Directors   - 5
INED* - 3
NED - 2
ED - 0
1
Related Party Transactions 
Review Committee
Refer page 152 for the 
Report of the Related 
Party Transactions Review 
Committee
Assess all transactions with related parties to 
ensure that they are treated on par with other 
stakeholders 
Total Directors - 5
INED* - 3
NED - 2
ED - 0
4
*Including the Chairman of the Committee

120  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
Meetings 
The Board of Directors met 10 times during the year under 
review, adopting a hybrid meeting format. All meetings were 
held through BoardPAC a digital board meeting solution and 
the procedure relating to meetings is set out below. Directors 
allocate sufficient time and attention to matters of the Board 
and the Group. 
Beginning of the Year
Agenda
Board Paper 
Compilation and 
Circulation
Board Meetings
Post Meeting
-	The schedule 
for Board and 
Subcommittee 
meetings is 
established at the 
beginning of the 
financial year, and 
notice is given to 
Directors through 
the distribution of 
an annual calendar 
of meetings
-	Board papers 
are prepared and 
electronically 
circulated to 
Directors through  
the BoardPAC 
platform at least 7 
days prior to the 
next scheduled 
meeting, providing 
sufficient time for 
review
-	A single  Director 
can call for a 
resolution to be 
presented to the 
Board if deemed 
necessary
-	The Company 
Secretary prepares 
the minutes 
and circulates 
among Directors 
through the secure 
BoardPAC platform 
within 7 days of the 
meeting.
-	Minutes are 
adopted at the 
subsequent Board 
meeting.
-	Follow up action 
is taken on 
outstanding matters
-	The Company 
Secretary sets 
the agenda in 
consultation with 
the Chairman
-	Directors submit 
proposals to 
the agenda for 
discussion at Board 
meetings
-	Agenda items are 
prioritised and 
timed to ensure all 
items are discussed
-	Board meetings 
have certain 
standard items such 
as  performance 
updates, risk 
assessments, 
progress on social 
capital projects, 
and updates from 
Sub-committee 
Chairpersons. 
-	Members of the 
Management Team 
are invited for 
Board meetings to 
provide additional 
clarifications if 
required.
-	All proceedings of 
the meetings are 
minuted, including 
Directors’ dissenting 
views if any
BOARD & SUB-COMMITTEE COMPOSTION
Directors
Date of Appointment
Board
Audit  & Risk 
Committee
Remuneration 
Committee
Nomination 
Committee
Related Party 
Transactions 
Review 
Committee
Mr. A. R. Rasiah   - Chairman (INED)
19 November 2018
*


*

Mr. Dilanka Jinadasa  - Group CEO (ED)
11 October 2018

Dr. Alastair Alderton (NED)
07 May 2021





Mr. Gayan Gunawardana (INED)
20 February 2019

*

*
Ms. Trisha Peries (INED) 
1 August 2020


*


Mr. Patrick Schleiffer (NED) 
07 May 2021




Mr. Shlomo Doron (NED) 
05 October 2022

Mr. Shesan Khan(NED) (Alternate 
Director to Dr Alderton)
05 October 2022


Ms. Aroshi Nanayakkara (INED) 
Resigned w.e.f. 31 August 2022 
20 February 2019


*

*Chairperson     NED: Non-Executive Director,    INED: Independent Non-Executive Director,    ED: Executive Director

Annual Report 2022/23 | Hela Apparel Holdings PLC  121
Balance of Power
There is a clear division of responsibility between the 
Board and executive leadership, thereby ensuring a balance 
of power and authority, and ensuring that no individuals 
have unfettered powers. The Chairman is responsible for 
conducting the business of the Board while the Group CEO 
has oversight on executive responsibility for management of 
the Group’s business.
Role 
-	
Leads the Board, preserving good corporate 
governance, and ensuring that the Board works 
ethically and effectively
Responsibilities
-	
Setting the ethical tone for the Board and Group
-	
Setting the Board’s annual work plan and meeting 
agendas, in consultation with the Company Secretary 
-	
Building and maintaining stakeholder trust and 
confidence
-	
Ensuring effective participation of all Board members 
during meetings
-	
Facilitating and encouraging discussions amongst 
all Directors of matters set before the Board and 
ensuring a balance of power is maintained between 
Directors
-	
Monitoring the effectiveness of the Board
Role
-	
Accountable for implementation of the Hela Group’s 
strategic plans and driving performance
Responsibilities
-	
Appointing and assessing the performance of the 
senior management team, and ensuring appropriate 
succession planning
-	
Developing the Group’s strategy for consideration and 
approval by the Board
-	
Developing and recommending to the Board financial 
budgets supporting the Group’s long-term strategy
-	
Monitoring and reporting to the Board on the 
performance of the Group, and its compliance with 
applicable laws and Corporate Governance principles.
-	
Establishing an organisational structure for the Group 
which is appropriate for the execution of its strategy
-	
Ensuring a culture that is based on the Group’s values
-	
Ensuring that the Group operates within the approved 
risk appetite
Chairman
Group CEO
Company Secretary 
The office of the Company Secretary is integral to the 
effective functioning of the Board of Directors. Secretarial 
services to the Board were provided by P W Corporate 
Secretarial (Private) Limited until 31 January 2023.  Ms. 
Jansenidevi Kuhanesan was appointed as the Company 
Secretary with effect from 01 February 2023.	
The Company Secretary guides the Board on discharging 
its duties and responsibilities, promoting best practices in 
Corporate Governance. Key responsibilities include:
-	
Ensuring the conduct of Board and General Meetings in 
accordance with the Articles of Association and relevant 
legislation;
-	
Maintaining statutory registers and the minutes of Board 
Meetings;
-	
Prompt communication with regulators and shareholders; 
and,
-	
Filing statutory returns and facilitating access to legal 
advice in consultation with the Board, where necessary.
All Directors have access to the advice and services of 
the Company Secretary. Appointment and removal of the 
Company Secretary is a matter for the Board.

122  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
Directors’ Independence
Three out of seven Non-Executive Directors are deemed independent. The Board has determined that these three Non-
Executive Directors satisfy the criteria for “independence” set out in the Listing Rules.
Definition
-	
Independence is determined 
against the criteria as set out in 
the Listing Rules of the Colombo 
Stock Exchange and in compliance 
with Schedule K of the  Code 
of Best Practice on Corporate 
Governance issued by the Institute 
of Chartered Accountants of Sri 
Lanka in 2017
-	
Independent assessment of 
directors is conducted annually 
by the Board, based on annual 
declarations and other information 
submitted by Non Executive  
Directors
-	
The Board is satisfied that 
there are no relationships or 
circumstances likely to affect  
or appear to affect,  directors’ 
judgement during the period under 
review
Assessment
Outcome
Directors Interests and Related Party Transactions
Directors declare their business interests at appointment 
and quarterly thereafter. Details are maintained in a Register 
maintained by the Company Secretary. The Register is 
available for inspection under the terms of the Companies 
Act. Directors have no direct or indirect interest in a contract 
or a proposed contract with a Group company other than 
those disclosed on page 211. 
The Related Party Transactions Review Committee considers 
all transactions that require approval, in compliance with the 
relevant regulations, ensuring transactions are fair and in the 
best interest of the Hela Group. Related party transactions 
of the Group are disclosed in Note 16 to the financial 
statements on page 211. 
Conflict of Interest
Directors exercise their independent judgement, promoting 
constructive board deliberations and objective evaluation of 
matters set before them.
Directors notify the Board promptly of any conflicts of 
interest they may have in relation to items of business or 
other Directorships. Directors excuse themselves from 
consideration of matters in which a conflict may arise.
Informed Decision Making
Good decision-making requires possessing the right 
knowledge. The Hela Group‘s reporting and information 
systems ensure that the Board receives relevant and objective 
information, in a timely manner. The implementation of the 
SAP S/4HANA Fashion ERP system will support the Board 
further in its decision making, providing real time, high level 
data analysis and business insights, with the facility to drill 
down to required details.  
The Chairman ensures all Directors are adequately briefed 
on issues arising at meetings. Directors are entitled to seek 
independent professional advice, coordinated through the 
Company Secretary, on a need basis.

Annual Report 2022/23 | Hela Apparel Holdings PLC  123
-	
Newly appointed Directors are apprised of the 
Group’s business, given an opportunity to meet with 
KMPs and visit key operating locations
-	
Directors’ understandings of key matters and risks 
for the business are supported on an ongoing basis. 
Board members undertake professional development 
as they consider necessary, in assisting themselves to 
carry out their duties as Directors
At induction
Training
Delegation of Responsibility to Executive Management 
Responsibility for implementation of strategy, overall 
performance, and the management of the daily affairs of the 
Group has been delegated to the Group CEO by the Board. 
The Group CEO is supported in his role by the GMC. The 
GMC is open and transparent with the Board and escalates 
concerns to the Board’s attention in the appropriate forums 
and in a timely manner. 
All functional departments are headed by competent 
individuals and are adequately resourced. KMPs are 
empowered to take decisions within the defined framework 
and are expected to act in accordance with the Group’s values 
and Code of Conduct.
RESPONSIBLE AND FAIR REMUNERATION 
The Board strives to ensure that remuneration is fair and 
responsible. No Director is involved in deciding their own 
remuneration.
Remuneration Policy
The remuneration policy of the Hela Group aims to attract 
and retain a highly qualified and experienced work force, and 
nurture a performance-driven culture. Remuneration packages 
offer compensation commensurate with each employee’s role, 
level of experience and expertise, and in line with industry 
norms. 
Level and Make Up of Remuneration
Remuneration of the Executive Director is linked to the 
achievement of the Hela Group’s strategic objectives and is 
based on clear performance standards set at the beginning 
of each year. An Employee Share Ownership Plan (ESOP) 
for Senior Management and Directors has been in place 
since August 2020, recognising and rewarding them for their 
contribution. 
The Remuneration Committee (RC) is responsible for making 
recommendations to the Board regarding the remuneration 
policies of the Group. Please refer to page 150 for the 
Report of the Remuneration Committee. Remuneration 
is recommended having considered performance and risk 
factors entailed in the job and considering individual, team, 
and overall Group performance.  
The Board as a whole determines the remuneration of 
Non-Executive Directors based on the recommendations of 
the Remuneration Committee who receive a fee for being 
a Director of the Board, and an additional fee for being a 
member of a committee. Remuneration for Non-Executive 
Directors reflects the time commitment and responsibilities of 
their role, taking into consideration market practices.
Services of HR professionals are sought when required by 
the Board and the Remuneration Committee in discharging 
their responsibilities. Payment of remuneration to Directors is 
disclosed on page 211 of this report. 
Appraisal of Group CEO
The short, medium and long-term objectives, including 
financial and non-financial targets, that should be met by the 
Group CEO are set at the commencement of each financial 
year. The Board reviews the performance at the end of the 
year against the backdrop of the operating environment, and 
remuneration is revised based on performance.
RESPONSIBLE CORPORATE CITIZENSHIP 
As a social capital company, the Board of Directors is 
committed to creating an ethically conducive culture and 
demonstrating responsible business conduct. 
Respect for Human Rights
Respect for human rights and ensuring the dignity of all 
stakeholders is critical to the Hela Group. 
The Group is committed to implementing internationally 
agreed upon principles for human rights in ensuring decent 
work and working conditions. The Group’s framework is 
aligned with the 10 principles of the UN Global Compact, and 
informed by the jurisdictions in which the Group operates.

124  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
Key principles for ethical employment are set out in the 
Code of Conduct, supported by other policies and practices 
together with compliance programmes. The Group’s intention 
is to make respecting human rights an integral part of daily 
operations. 
Further, safeguarding human rights throughout the sphere 
of the Group’s influence is an important element of Hela’s 
commitment to delivering social value through core activities. 
The Group encourages all suppliers and business partners 
to implement policies similar to that of the Hela Group. 
Prospective suppliers are required to accept the Hela Group’s 
Code of Conduct for Suppliers prior to onboarding. 
During the year, no allegations or confirmed incidents of 
discrimination and/or violations of human rights, were 
reported.
Diversity, Equal Opportunity and Gender Parity
The Board is committed to promoting equal opportunities and 
fair employment practices across all of the Group’s operations. 
The Hela Group embraces diversity and equal opportunity 
as two key pillars in its approach to building social capital. 
Each individual is appreciated for their value and the positive 
impact to productivity and creativity that diverse perspectives 
lend. As an equal opportunity employer, the Group does not 
discriminate on the basis of gender, marital status, religion, 
race, or disability. 
At the non-executive staff level, the workforce is 
predominantly female. The Hela Group is focused on 
The Hela Group’s policies seek to harness the full potential 
of all employees by creating a healthy working environment 
that enables employees to work without fear of prejudice, 
gender bias or any form of harassment. These include the 
following:
- Grievance Handling Policy
- Non-Discrimination Policy
- No Forced Labour Policy
- Prevention of Sexual Harassment Policy
- Non-Harassment and Abuse Policy
- Child Labour Remediation and Minimum Age Policy
- Code of Conduct 
- Environmental Health and Safety Policy
The Hela Group has a zero tolerance approach towards 
sexual harassment or other forms of harassment, child 
labour and forced labour, amongst others issues. 
KEY TOPICS COVERED IN THE CODE OF CONDUCT 
INCLUDE THE FOLLOWING:
-	
Key Principles for Ethical Employment
-	
Health and Safety in the Workplace
-	
Misuse of Company’s Assets
-	
Knowledge and Resources
-	
Protection of Confidential Information
-	
Obligations Regarding Fraudulent or Unethical 
Practices
-	
Conflicts of Interest and Loyalty to Hela Group
-	
Procedure for Notifying Breaches of the Code of 
Conduct
economically empowering these female workers to uplift 
their lives. The Board supports projects conducted across 
the Group such as Hela Diriliya and P.A.C.E. (refer to pages 
85) which provide technical know-how, skills training and 
resources to support empowerment.  
Female gender representation is lower in other categories 
of employees. The Hela Group strives to redress gender 
imbalances by adopting family friendly work practices, as 
disclosed on page 74, and supporting work-life balance. These 
policies support employees who are also caregivers to balance 
their professional and family commitments, and fulfill career 
aspirations. 
Responsible branding   
In marketing and other communications, the Hela Group 
is conscious of ensuring positive and progressive gender 
portrayals.  The Group is aware that gender-stereotyped 
portrayals limits the aspirations, expectations, interests and 
participation of girls and women in society, contributing to 
negative outcomes in health and wellbeing. 
Code of Conduct 
The Hela Group takes pride in holding itself to high ethical 
standards. The Group’s Code of Conduct provides a clear 
framework within which employees are expected to act 
to ensure professionalism, discipline and ethical business 
conduct. The Code applies to all employees of all companies 
within the Hela Group, including key management personnel. 
The Board is not aware of any material violations of any of the 
provisions of the Code by any Director or employee of the 
Hela Group.

Annual Report 2022/23 | Hela Apparel Holdings PLC  125
Anti-Bribery and Corruption 
The Hela Group is committed to upholding honesty and 
integrity in all its business activities, which includes measures 
to prevent the risks of bribery, fraud and theft. 
The Group has zero tolerance to corruption. As a signatory to 
the UNGC, Hela’s approach is underscored by its commitment 
to the 10th principle of Anti-Corruption. 
The Group’s Anti Bribery and Fraud Policy sets clear 
standards for identifying, preventing and reporting bribery 
and fraud, and is applicable to all employees of the Hela 
Group. The Group’s Code of Conduct further demonstrates 
its commitment to zero tolerance of fraudulent or unethical 
practices. Hela’s suppliers are also held to the same standards 
and the Group requires suppliers to contractually commit to 
its Supplier Code of Conduct, which prohibits any form of 
bribery and corruption.
The Policy and Code of Conduct are supported through 
internal control systems and procedures in areas where 
risk of bribery and corruption may be present. Controls are 
reviewed at least annually to ensure suitability, adequacy and 
effectiveness of the systems in place. 
The grievance handling policy, as disclosed below, provides a 
mechanism through which employees can report suspected 
acts of corruption or breaches of the policy or Code of 
Conduct. 
During the year, the Group conducted training programmes 
amongst executive employees to increase awareness of 
the policy and this will be expanded to cover all categories 
of employees in FY 2023/24.   The policy is also available 
on the Group’s online HR System, which is accessible by all 
employees.  The policy was last reviewed in January 2021.  
Requires all 
employees of 
the Hela Group 
to refrain from 
all forms of 
bribery and 
fraudulent 
activities
Defines 
thresholds 
for what is an 
acceptable 
gift as well as 
procedures 
and reporting 
requirements
Highlights the  
importance 
of raising 
complaints and 
consequences 
of non- 
compliance or 
non-disclosure
Strictly prohibits 
the offer or 
acceptance 
of  bribes, 
unacceptble 
gifts and 
hospitaliy; 
political 
contributions
Describes 
stakeholders’ 
responsibilties 
in implementing 
bribery 
and fraud 
prevention 
mechanisms
Retaliation 
against  
employees who 
raise complaints 
is not tolerated
Grievance Handling Mechanism
Mechanisms are in place for employees and other 
stakeholders to seek advice or report concerns about 
unethical or unlawful behaviour. The Hela Group’s 
Grievance Handling policy enables anonymous reporting 
regarding possible acts of corruption; breaches of Group 
policies, code of conduct or internal controls; inappropriate 
financial reporting, or other issues that may require internal 
investigation. A step ladder system has been established in 
notifying grievances. If an employee is of the opinion that 
their grievance has not been adequately addressed, it can 
be directly forwarded to the Group CEO or Chairman, as 
applicable. A two-way communication will be established for 
any follow-up needed on the concerns raised. 
Sustainability Governance 
The Hela Group’s commitment to sustainability has remained 
unwavering, driven by its purpose ‘To provide solutions 
to the stakeholders we serve through the principles of 
our focused social capital criteria centered on Equality, 
Inclusivity and Climate Stability’. Over the past year, the Hela 
Group has progressed in developing a firmer foundation 
to identify, manage and measure progress across the 
respective focus areas. Development of an Environmental, 
Social and Governance (ESG) strategy is on-going with 
individual strategies, policies, targets and accountability being 
determined across identified sustainability pillars. 
BOARD ACCOUNTABILITY
Risk Management and Internal Control 
The Board is responsible for formulating and implementing 
effective risk management and internal control systems 
to safeguard shareholder interests and the assets of the 
Company. These systems cover all controls, including 
financial, operational and compliance, and are monitored and 
regularly reviewed for effectiveness by the Board. The Board 
increased the rigor of oversight functions in managing risks 
as the operating environment continued to be uncertain and 
challenging. A robust assessment of the principal risks was 
carried out at year end, and mitigating strategies identified. 
Please refer to Risk Management report on page 136 for 
further information. 
The Internal Audit function supports the Audit & Risk 
Committee, reviewing the adequacy and effectiveness of 
the Group’s internal control systems, and reporting to the 
Highlights of Hela Group Anti-Bribery and Corruption Policy

126  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
Committee on a regular basis. The Board is satisfied with the 
integrity of the financial information and the soundness of the 
internal controls and systems of the Hela Group. 
Accountability & Audit 
Hela Apparel Holdings PLC has presented balanced and 
understandable financial statements which give a fair view of 
the performance and financial position of the Company on 
a quarterly and annual basis. In the preparation of Financial 
Statements, the Company has complied with the requirements 
of the Companies Act No 07 of 2007 and requirement of the 
Sri Lanka Accounting Standards and Securities and Exchange 
Commission of Sri Lanka. Price sensitive public reports and 
reports for statutory requirements are also presented in a 
balanced and understandable manner.
The Group’s position and prospects have been discussed 
in detail in the following sections of this annual report. This 
report is aligned to the Integrated Reporting Framework 
published by the International Integrated Reporting 
Council and Global Reporting Initiative (GRI) Standards on 
Sustainability Reporting.
Chairman’s Statement pages 19 to 21
Group CEO’s Review pages 23 to 25
Capitals Report pages 56 to 112
Risk Management pages 136 to 139
Information Technology & Cyber Security 
The Board of Directors is cognisant of the benefits of agility, 
scalability, and innovation that digital platforms provide. As 
part of the Hela Group’s digital transformation strategy, the 
Board approved investment in the cloud-based SAP S/4HANA 
Fashion ERP system in July 2021 for a cost of approximately 
US$ 4.8 Mn. A number of existing and new applications, 
including customer platforms and AI solutions will be 
integrated with the SAP system to create a ‘Digital Core’. 
The system is expected to deliver solutions that will enhance 
employee, management, as well as customer and supplier 
experience.
The Board gave oversight to the implementation of the 
system during the year. The rollout was carried out across 
the Group on a cluster basis, and the cutover implementation 
was completed by March 2023. The ERP system has been 
integrated with the existing and new systems of the Group 
and a host-to-host solution with a key banker. 
Safeguarding Information Systems
The SAP S/4HANA Fashion ERP system and other digital 
assets are hosted on a cloud platform that has been 
implemented with an architecture to safeguard and 
IT GOVERNANCE STRUCTURE:
Board of Directors – The Board bears ultimate responsibility 
for the IT strategy. IT governance and cyber risk is a 
recurring item on its meeting agendas, and the Group Chief 
Information and Process Officer regularly updates the Board 
on progress made on the Digital Core project. 
IT Steering Committee -  Established in 2021 to strengthen 
governance and provide oversight to the IT and digital 
transformation strategy. The committee’s key responsibilities 
include delivery of the Group’s IT strategy, as well as risk 
and issue management. It met twice monthly prior to the 
go-live of the SAP S/4HANA Fashion ERP system, and 
currently meets once per month.
The committee is chaired by the Group Chief Information 
and Process Officer, and includes the Chairman of the 
Board of Directors, Group CEO, Cluster CEOs, Group 
CFO, Group Advisor, and project sponsors. Supply chain 
heads, nominated directors, implementation partners, and 
respective cluster functional heads are included as invitees.
Group Chief Information and Process Officer (CIPO) -  The 
CIPO is responsible for the development of the Group’s 
information and technology and process strategy, as well as 
safeguarding the Group’s information assets and operational 
systems. They also lead the Group’s digital transformation 
and process improvement projects, driving towards the 
establishment of the Hela Operating System (H2O). 
EPDS Exco Team – The Enterprise Process and Digital 
Solutions (EPDS) Exco Team is responsible for the 
implementation of the Digital Core project, the HR360 
Program, and the delivery of the Group’s Digital and Process 
Strategy. Key activities include design and implementation 
of the rollout programme, process change management, 
soft skills and technical training, process and systems audits. 
Monthly meetings are held as an Exco, with weekly project 
and strategic program meetings.
protect its’ information assets taking into consideration 
the cyber vulnerabilities. Third party penetration testing 
and vulnerability assessments are carried out annually 
or as required, to ensure the security of the system. 
Additionally, preventative control methods with mobile device 
management systems are enforced with features such as geo-
fencing on these devices within each operational location.
Disaster Recovery and Management  
As a cloud-hosted system, SAP S/4HANA Fashion ERP 
system is implemented with disaster recovery as part of the

Annual Report 2022/23 | Hela Apparel Holdings PLC  127
Board
Group CEO
Group Chief Information 
and Process Officer
IT Exco Team
Change Control Board
IT  Steering Committee
Change Control Board (CCB) – The CCB was established 
at end FY 2022/23 to oversee the management of system 
adoption and system change requests post go-live with 
the SAP S/4HANA Fashion ERP system. The CCB reviews 
proposed changes, assesses their impact on the project 
objectives, the benefit for the Company, and takes the 
decision to approve or reject. The Group CEO and Group 
Adviser are copied on the decisions taken, and these are 
tabled at GMC meetings if required. The CCB comprises of 
Cluster CEOs, nominated business experts and digital and 
process leadership from EPDS.
architecture, in order to ensure minimal downtime for disaster 
recovery. Incremental backups are automated to execute 
every 20 minutes and a full back up is taken daily.
Governance of Group Companies
The Board seeks to establish a common standard of 
corporate governance across Group subsidiaries. Alignment 
of governance practices and processes is reinforced by 
the appointment of the Chairman, Group CEO and other 
Directors of Hela Apparel Holdings PLC to the Boards of 
subsidiaries. 
Taxation
The Hela Group is committed to being a responsible taxpayer 
that pays its fair share of tax within industry norms. The Board 
reviewed the amendments to applicable tax regulations during 
the year and their impact to the Group. Compliance with all 
applicable tax regulations was monitored and full transparency 
ensured. 
RELATIONS WITH SHAREHOLDERS
Shareholder engagement
The Board is conscious of its responsibility towards 
shareholders and is committed to fair disclosure, with an 
emphasis on the integrity, timeliness and relevance of the 
information provided. Such reporting enables shareholders to 
assess performance effectively and make informed decisions.
-	
Annual General Meeting (AGM) (shareholders only)
-	
Annual integrated report
-	
Interim financial statements
-	
A dedicated investor relations page on the Group’s 
website
-	
Notification of key events through announcements to 
the CSE 
-	
Quarterly investor forums are held by the Group 
CEO, CFO, and investor relations team, with public 
shareholders, including key institutional investors, 
in attendance. Views of the shareholders are 
communicated to the Board by the Group CEO
-	
Shareholders can also query the Board and 
management, through representations made to the 
Company Secretary whose contact details are provided 
on inner back cover of this report.  
Shareholders and investors are engaged 
through multiple channels of communication, 
including the following;

128  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
Communication with Shareholders
Constructive use of Annual General Meeting (AGM) 
The AGM is the main mechanism for the Board to interact 
with and account to shareholders, and provides an 
opportunity for shareholders’ views to be heard. The Board 
Chairperson, Board members (particularly Chairpersons 
of Board Sub-committees), Group CEO, key management 
personnel and external auditors, are present and available to 
answer questions. 
The 2022 AGM was conducted via a virtual format. All 
shareholders, were given the opportunity to submit any 
questions to the Board and Management in real time.  
ANNUAL REPORT
-	
The Annual Report is the key medium through which 
the Board presents a fair and balanced review of the 
Group’s financial position, performance and prospects. 
-	
All statutory requirements have been complied with in 
the Annual Report and the audited financial accounts 
have been reviewed and recommended by the Audit 
& Risk Committee, and approved by the Board of 
Directors, prior to publication. 
-	
External audit assurance is obtained, to enhance 
credibility. 
Prior to the AGM
-	
Notice of the AGM, other 
related documents and 
proposed resolutions, and voting 
procedures are circulated to 
shareholders a minimum 15 days 
prior to the AGM
-	
This allows sufficient time for all 
shareholders to attend the AGM
-	
The Board provides an update on 
the Group’s performance
-	
Shareholders have the 
opportunity to ask questions and 
clarify matters 
-	
A separate resolution is proposed 
for each item of business
-	
All shareholders are encouraged  
to exercise their voting rights
-	
Details of the key resolutions 
passed at the AGM are 
communicated to the CSE
-	
Minutes of the meeting are 
available to shareholders on 
request from the Company 
Secretary
At the AGM
After the AGM
Communication with Shareholders via AGM

Annual Report 2022/23 | Hela Apparel Holdings PLC  129
ANNEX 1: STATEMENT OF COMPLIANCE PERTAINING TO COMPANIES ACT NO. 7 OF 2007: ANNUAL 
REPORT DISCLOSURES  
Mandatory Provisions – Fully Compliant
Reference
Requirement
Complied Reference within the Report
Section 168 (1) (a)
The nature of the business of the Company 
Yes
About Hela Group 
Group Companies & Directorate
Section 168 (1) (b)
Financial statements for the accounting period 
completed and signed in accordance with 
section 152 
Yes
Financial Statements 
Section 168 (1) (c)
Auditor’s report on the financial statements of 
the Company
Yes
Independent Auditors’ Report.
Section 168 (1) (d)
Any change in accounting policies made during 
the accounting period 
Yes
Notes to the Financial Statements - 
Changes in Accounting Policies
Section 168 (1) (e)
Particulars of entries in the interests register 
made during the accounting period
Yes
Annual Report of the Board of 
Directors 
Section 168 (1) (f)
Remuneration and other benefits of directors 
during the accounting period
Yes
Notes to the Financial Statements 
Section 168 (1) (g)
Corporate donations made by the Company
Yes
Notes to the Financial Statements 
Section 168 (1) (h)
Information on the Directorate of the Company 
and its subsidiaries during and at the end of the 
accounting period 
Yes
Group Companies & Directorate
Section 168 (1) (i)
Amounts payable by the company to the 
Person or firm holding office as auditor of the 
company as audit fees and as a separate item, 
fees payable by the company for other services 
provided by that person or firm
Yes
Note 3 (c) to the Financial Statements 
Section 168 (1) (j)
Auditors’ relationship or any interest with the 
Company and its Subsidiaries
Yes
Report of the Audit & Risk Committee
Section 168 (1) (k)
Acknowledgment of the contents of this Report 
and signatures on behalf of the Board
Yes
Financial Statements/ Annual Report 
of the Board of Directors

130  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
ANNEX II: STATEMENT OF COMPLIANCE UNDER SECTION 7.6 OF THE LISTING RULES OF THE COLOMBO 
STOCK EXCHANGE: ANNUAL REPORT DISCLOSURES 
Mandatory Provisions – Fully Compliant
Reference
Requirement 
Complied
Reference within the Report
 (i)
Names of persons who were Directors of the Entity 
Yes
Annual Report of the Board of 
Directors 
 (ii)
Principal activities of the entity and its subsidiaries during 
the year, and any changes therein
Yes
About Hela 
Annual Report of the Board of 
Directors
 (iii)
The names and the number of shares held by the 20 largest 
holders of voting shares and the percentage of such shares 
held
Yes
Investor Information
 (iv)
The float adjusted market capitalisation, public holding 
percentage (%), number of public shareholders and under 
which option the listed entity complies with the Minimum 
Public Holding requirement 
Yes
 (v)
A statement of each Director’s holding in shares of the 
Entity at the beginning and end of each financial year
Yes
 (vi)
Information pertaining to material foreseeable risk factors of 
the Entity
Yes
Risk Management
(vii)
Details of material issues pertaining to employees and 
industrial relations of the Entity
Yes
Human Capital
 (viii)
Extents, locations, valuations and the number of buildings of 
the Entity’s land holdings and investment properties
Yes
Note 6 (a) and 6 (c) to the Financial 
Statements 
 (ix)
Number of shares representing the Entity’s stated capital
Yes
Investor Information
 (x)
A distribution schedule of the number of holders in each 
class of equity securities, and the percentage of their total 
holdings
Yes
Investor Information
 (xi)
Financial ratios and market price information
Yes
Investor Information
Five Years Financial Summary - Group 
Investor information
 (xii)
Significant changes in the Company’s or its subsidiaries’ 
fixed assets, and the market value of land, if the value differs 
substantially from the book value as at the end of the year
Yes
Note  6 (a) and 6 (c)  to the Financial 
Statements
 (xiii)
Details of funds raised through a public issue, rights issue 
and a private placement during the year
N/A
 (xiv)
Information in respect of Employee Share Ownership or 
Stock Option Schemes
Yes 
Investor Information
 (xv)
Disclosures pertaining to Corporate Governance practices 
in terms of Rules 7.10.3, 7.10.5 c. and 7.10.6 c. of Section 
7 of the Listing Rules
Yes
Corporate Governance Report
 (xvi)
Related Party transactions exceeding 10 per cent of the 
equity or 5 per cent of the total assets of the Entity as per 
audited financial statements, whichever is lower
N/A
Notes to the Financial Statements

Annual Report 2022/23 | Hela Apparel Holdings PLC  131
ANNEX III- STATEMENT OF COMPLIANCE UNDER SECTION 7.10 AND SECTION 9.3.2 OF THE LISTING 
RULES OF THE COLOMBO STOCK EXCHANGE: DISCLOSURES ON CORPORATE GOVERNANCE AND 
RELATED PARTY TRANSACTIONS, RESPECTIVELY
Mandatory Provisions – Fully Compliant
Rule No.
Subject
Requirement
Complied
Reference within the 
Report
7.10.1(a)
Non-Executive 
Directors (NED)
At least 2 or 1/3 of the total number of Directors on 
the Board whichever is higher should be NEDs
Yes
Board Composition
7.10.2(a)
Independent 
Directors (ID)
2 or1/3 of NEDs, whichever is higher, should be 
independent
Yes
Board Composition
7.10.2(b)
Independent 
Directors (ID)
Each NED should submit a signed and dated 
declaration of his/her independence or non-
independence
Yes
Directors 
Independence
7.10.3(a)
Disclosure relating to 
Directors
The Board shall annually determine the 
independence or otherwise of the NEDs, and Names 
of each IDs should be disclosed in the Annual Report 
(AR)
Yes
Directors 
Independence
Board of Directors
7.10.3(b)
Disclosure relating to 
Directors
The basis for the Board’s determination of 
independence, if criteria specified for independence 
is not met
N/A
7.10.3(c)
Disclosure relating to 
Directors
A brief resume of each Director should be included in 
the AR including the Director’s areas of expertise 
Yes
Board of Directors
7.10.3(d)
Disclosure relating to 
Directors
Provide a brief resume of new Directors appointed to 
the Board with details specified in 7.10.3(a), (b) and 
(c) to the CSE
Yes
Board of Directors
7.10.4 (a-h) Criteria for defining 
Independence
Requirements for meeting criteria to be an 
Independent Director
Yes
Directors 
Independence 
7.10.5
Remuneration 
Committee (RC)
A listed company shall have a Remuneration 
Committee
Yes
Remuneration 
Committee Report  
7.10.5(a)
Composition of 
Remuneration 
Committee
RC Shall comprise of NEDs, a majority of whom will 
be independent.
One NED shall be appointed as Chairman of the 
committee by the Board of Directors
Yes
Remuneration 
Committee Report  
7.10.5.(b)
Functions of 
Remuneration 
Committee
The RC shall recommend the remuneration of 
Executive Directors
Yes
Remuneration 
Committee Report  
7.10.5.(c)
Disclosure in 
the Annual 
Report relating 
to Remuneration 
Committee
Names of Directors comprising the RC
Statement of Remuneration Policy
Aggregated remuneration paid to Executive and Non-
Executive Directors should be included in the Annual 
Report
Yes
Remuneration 
Committee Report  
Note 16 (c) to the 
Financial Statements
7.10.6
Audit Committee 
(AC)
The Company shall have an AC
Yes
Audit & Risk 
Committee Report

132  Hela Apparel Holdings PLC | Annual Report 2022/23
Rule No.
Subject
Requirement
Complied
Reference within the 
Report
7.10.6(a)
Composition of 
Audit Committee
Shall comprise of Non-Executive Directors, a majority 
of whom are Independent
Chief Executive Officer and the Chief Financial 
Officer should attend Audit Committee Meetings
The Chairman of the Audit Committee or one 
member should be a member of a professional 
accounting body
Yes
Yes 
Yes 
Audit & Risk  
Committee Report
7.10.6(b)
Audit Committee 
Functions
Should be as outlined in Section 7.10 of the Listing 
Rules
Yes
Audit & Risk  
Committee Report
7.10.6(c)
Disclosure in Annual 
Report relating to 
Audit Committee
a) 	 Names of the Directors comprising the Audit 
Committee
b) 	 The Audit Committee shall make a determination 
of the independence of the Auditors and disclose 
the basis for such determination
c) 	 The Annual Report shall contain a Report of the 
Audit Committee in the prescribed manner
Yes
Yes 
Yes
Audit & Risk 
Committee Report
9.3.2
Related Party 
Transactions Review 
Committee
a) 	 Details pertaining to Non-Recurrent Related Party 
Transactions
b). 	Details pertaining to Recurrent Related Party 
Transactions 
c) 	 Report of the Related Party Transactions Review 
Committee
d). 	Declaration by the Board of Directors as an 
affirmative statement of compliance with the 
rules pertaining to Related Party Transactions, or 
a negative statement otherwise
Yes
Yes
Yes
Yes
Report of the Related 
Party Transactions 
Review Committee 
Report of the Related 
Party Transactions 
Review Committee 
Report of the Related 
Party Transactions 
Review Committee 
Annual Report of the 
Board of Directors 
Corporate Governance

Annual Report 2022/23 | Hela Apparel Holdings PLC  133
ANNEX IV:  STATEMENT OF COMPLIANCE WITH THE CODE OF BEST PRACTICE ON CORPORATE 
GOVERNANCE ISSUED BY THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA IN 2017
Voluntary Provisions: Compliant with the majority of the Code, to the extent of business exigency 
Code Ref.
Requirement
Complied
Reference within the Report
A DIRECTORS
A.1 An effective Board should direct, lead and control the company
A.1.1
Regular Board meetings, provide information to the 
Board on a structured and regular basis
Yes
Meetings 
A.1.2
Role and Responsibilities of the Board
Yes
Governance Framework & Structure
A.1.3
Act in accordance with laws of the Country
Independent professional advice 
Yes
Yes
Compliance 
Informed Decision Making
A.1.4
Access to advice and services of the Company Secretary
Appropriate insurance cover for Directors and KMPs 
Yes
Yes
Company Secretary
The Company has appropriate insurance 
cover for KMPs according to the Group 
Insurance Policy 
A.1.5
Independent judgement
Yes
Conflict of Interest
A.1.6
Dedicate adequate time and effort to matters of the 
Board and the Company
Yes
Meetings
A.1.7
Calls for resolutions by at least 1/3rd of Directors
Yes
Meetings 
A1.8
Board induction and Training
Yes
Informed Decision Making
A.2
Chairman and CEO
Yes
Balance of Power
A.3
Chairman’s role in preserving good corporate 
governance  
Yes
Balance of Power
A.4
Availability of financial acumen 
Yes
Board Composition
A.5
Board Balance
Yes
Board Composition
A.5.1
The Board should include sufficient number of NEDs
Yes
Board Composition
A.5.2
If the Board includes only 3 NEDs, they should be 
independent
N/A
A.5.3
Independence of Directors
Yes
Director’s Independence
A.5.4
Annual declaration of independence by Directors
Yes
Director’s Independence
A.5.5
Annual determination of independence of NEDs
Yes
Director’s Independence
A.5.6
Alternate Directors
Yes
Board Profiles
A.5.7 & 
A.5.8
Senior Independent Directors
N/A
A.5.9
Annual meeting with NEDs
Yes
Chairman meets with NED on an informal 
basis
A.5.10
Recording of dissent in minutes
Yes
Meetings 
A.6
Supply of Information
Yes
Informed Decision Making
A.7
Appointments to the Board 
Yes
Board Refreshment
A.7.1
Establishing a Nomination Committee, Chairman and 
Terms of Reference
Yes
Nomination Committee Report
A.7.2
 Annual assessment of Board composition
Yes 
Board Refreshment  
A.7.3
Disclosures on appointment of new directors
Yes
Board Refreshment
A.8
Directors to submit themselves for re-election
Not 
adopted

134  Hela Apparel Holdings PLC | Annual Report 2022/23
Corporate Governance
Code Ref.
Requirement
Complied
Reference within the Report
A.10
Annual Report to disclose specified information 
regarding Directors
Yes
Board Profiles
Meetings Attendance
Membership in committees 
A.11
Appraisal of the CEO
Yes
Responsible and Fair Remuneration
B. 
B.1
Establish process for developing policy on executive and 
director remuneration.
Responsible and Fair Remuneration 
B.2
Level and Make Up of Remuneration
Yes
Responsible and Fair Remuneration 
B.3 
Disclosures related to remuneration in Annual Report
 -  Remuneration Policy statement 
 - Aggregate Board remuneration paid
 - Remuneration Committee report
Yes
Responsible and Fair Remuneration 
Note 16 (c) to Financial Statements
Remuneration Committee report
C. 
C.1  
Constructive use of the AGM & Other General Meetings Yes
Constructive use of the Annual General 
Meeting (AGM) 
C.2   
Communication with shareholders
Yes
Communication with Shareholders
C.3
Disclosure of major and material transactions
Yes 
During the year, there were no major 
or material transactions as defined by 
Section 185 of the Companies Act No. 07 
of 2007 which materially affect the net 
asset base of Company.
D. 
D. 1
Present a balanced and understandable assessment 
of the Company’s financial position, performance and 
prospects
Yes
Communication with Shareholders
D1.1
Balanced Annual Report
Yes
Communication with Shareholders
D.1.2
Balanced and understandable communication 
Yes
Relations with Shareholders
D.1.3
CEO/CFO declaration
Yes
Required declarations are obtained from 
GCEO and CFO
D.1.4
Directors Report declarations
Yes
Annual report of the Board of Directors on 
the Affairs of the Company
D.1.5
Financial reporting-statement on Board responsibilities,
Statement on internal control
Yes
Yes
Directors’ Responsibility for Financial 
Reporting 
Directors’ Statement on Internal Control
D.1.6
Management Discussion & Analysis 
Yes
Capital reports
D.1.7
Net Assets < 50%
Yes
In the unlikely event of the net assets 
of the company falling below 50% of 
Shareholders Funds the Board will 
summon an Extraordinary General 
Meeting (EGM) to notify the shareholders 
of the position and to explain the remedial 
action being taken.  
D.1.8
Related Party Transactions report
Yes
Directors’ Interest in Contracts with the 
Company

Annual Report 2022/23 | Hela Apparel Holdings PLC  135
Code Ref.
Requirement
Complied
Reference within the Report
D.2.  
Process of risk management and a sound system of 
internal control to safeguard shareholders’ investments 
and the Company’s assets
Yes
Risk Management and Internal control  
Repot of the Audit & Risk Committee
Directors’ Statement of Internal Control
Risk Review 
D.3.    
Audit Committee
Yes
Audit & Risk Committee Report
D.4
Related Party Transactions Review Committee
Yes
Related Party Transactions Review 
Committee report
D.5
Code of Business Conduct and Ethics
Yes
Code of Conduct 
D.6
Corporate Governance Disclosures
Yes
Corporate Governance Report
E/F. 
Institutional and other investors, 
Yes
Relations with Shareholders
G.
Internet of Things & Cybersecurity
Yes 
Information Technology and Cyber 
Security
H.
Principals of Sustainability Reporting
Yes
Sustainability Governance 
BOARD MEETING ATTENDANCE 
25.05.2022
28.06.2022
26.07.2022
23.08.2022
05.10.2022
30.11.2022
26.01.2023
09.02.2023
24.02.2023
24.03.2023
Total
Mr. A R Rasiah










10/10
Mr. P L D Jinadasa










10/10
Dr. Alastair Alderton     










7/10
Mr. Patrick Schleiffer 










9/10
Mr. Gayan Gunawardana










7/10
Ms. Trisha Peries










10/10
Mr. Shlomo Doron*
-
-
-
-






6/10
Mr. Shesan Khan*
-
-
-
-






6/10
Ms. Aroshi Nanayakkara**




-
-
-
-
-
-
4/10
*Appointed as a Member with effect from 5th October 2022
** Resigned w.e.f 31st August 2022

136  Hela Apparel Holdings PLC | Annual Report 2022/23
Risk Management
As the COVID-19 pandemic came to an end, the global risk landscape 
continued to evolve rapidly on multiple fronts during FY 2022/23. 
This revealed several familiar and unfamiliar economic challenges in 
the global as well as the local context, testing the capabilities of the 
Group’s risk management function. The Board of Directors remained 
vigilant throughout the year ensuring that the Group mitigated the 
risks and seized opportunities in this dynamic environment.  
GOVERNANCE OF RISK MANAGEMENT 
The ultimate responsibility for risk management lies with the 
Board of Directors, who strengthened the risk management 
function during the year, in response to the fluidity of the 
risk environment. The Board is supported by the Audit & Risk 
Committee in discharge of this key responsibility. 
The Group Chief Executive Officer (Group CEO) is responsible 
for day-to-day management of risk in line with the framework 
set in place by the Board. Hela's Risk Management function 
was further strengthened by the appointment of the Group 
Chief Risk Officer during the year reporting to the Audit & 
Risk Committee, supporting both the executive function and 
Board oversight of risk management. 
Internal Audit also plays a key role in providing assurance 
to the Board on the effective functioning of the risk 
management framework, including internal systems and 
controls. 
RISK MANAGEMENT PROCESS
The risk management process seeks to increase awareness of 
potential and actual risks across the Company, and therefore 
begins with a communication and consultation process, as set 
out on the subsequent page.. 
Risk identification is initiated through a careful review of 
the principal uncertainties being faced by the Hela Group, 
which may negatively impact the growth of its business, 
solvency or liquidity. The Audit & Risk Committee actively 
governs and engages in the risk identification process, where 
potential risks are identified via ongoing engagement with key 
stakeholders of the business.  
A standardised risk register has also been adopted to assess 
and evaluate risks. The intensity of an identified risk is 
determined at three levels (i.e. low, medium, and high), based 
on the likelihood of occurrence and the potential impact as 
reflected in the Risk Intensity Matrix shown below.. 
Board of Directors
Group Chief Risk Officer 
Internal Audit 
Group CEO
Group Management 
Committee  
Audit & Risk Committee
Risk Management Governance Structure of the Hela Group

Annual Report 2022/23 | Hela Apparel Holdings PLC  137
IMPACT
High
(3)
3
6
9
Medium
(2)
2
4
6
Low
(1)
1
2
3
Low
(1)
Medium
(2)
High
(3)
LIKELIHOOD
Risk Intensity Matrix
Risk Management Process
Risk Assessment 
-  Risk Identification
-  Risk Analysis
-  Risk Evaluation
Communication and Consultation
Finalisation of the Scope,  
Context and Criteria 
Risk Treatment 
Monitoring and Review 
Recording and Reporting 
In line with the organisation’s risk quantification and 
prioritisation framework, each risk is assigned with a unique 
score.  A dedicated risk management plan is developed 
with assigned risk owners and risk managers. In addition, 
emerging risks arising from the volatile global, regional and 
local geopolitical landscape are constantly monitored by the 
Management and Board Committees with a view to ensure 
implementation of timely and comprehensive risk mitigation 
practices. 
The risk register is validated on an annual basis by the Group 
Management Committee, and duly escalated to the Audit & 
Risk Committee for recommendation and approval by the 
Board of Directors.  Updates to the risk register are thereafter 
cascaded from the senior management of the organisation to 
the operational level, where risk monitoring is embedded at 
all decision making points. These individuals and committees 
ensure risks are duly identified, mitigated and evaluated at all 
levels of responsibility. 
The subsequent pages provide a summary on the key 
risks facing the Hela Group during FY 2022/23, as well an 
assessment of their potential impact on the organisation, and 
the mitigation strategies in place.

138  Hela Apparel Holdings PLC | Annual Report 2022/23
Risk Management
RISK LANDSCAPE UPDATE FOR FY 2022/23
Risk Category Identified Risk 
Event 
Impact on Hela 
Group
Risk 
Assessment
Tenor 
Of Risk
Risk Treatment and Monitoring
Corporate 
Risk
Performance 
and 
Reputation 
Risk 
Failing to achieve 
corporate objectives 
and as a result failing 
to deliver stakeholder 
expectations
2021/22
L
2022/23
M
Short to 
Medium 
Term
-	
Customer focused strategies
-	
Focus on innovation & design
-	
Focus on environmental and 
social sustainability
-	
Strong corporate governance 
structure
Competitor / 
Industry Risk 
Downturn in key 
markets, increase in 
buyer power, threat 
of margins and 
market share erosion
Shift in end consumer 
preferences
2021/22
M
2022/23
H
Short to 
Medium 
Term
Medium 
to Long 
Term
-	
Collaborative supplier & 
customer partnerships
-	
Africa focused geographical 
footprint 
-	
High customer service levels 
-	
New customer development
Regulatory 
Compliance 
Risk 
Tightening regulatory 
and sustainability 
requirements 
Possible penalties 
and loss of goodwill 
due to failing to 
meet regulatory 
requirements
2021/22
L
2022/23
L
Medium 
to Long 
Term
-	
Established compliance and 
legal teams, and continuous 
monitoring of regulatory and 
legal requirements
Investment 
Risk 
Risk of investment 
and expansion 
project failures 
resulting in loss 
of capital, loss of 
reputation and 
limited returns on 
investments
2021/22
M
2022/23
M
Medium 
to Long 
Term
-	
Cautious decision making after 
thorough investment evaluations 
-	
Continuous project evaluations 
and prompt actions on identified 
issues
-	
Board oversight on all major 
investment decisions
Operational 
Risk
Political 
instability and 
economic 
uncertainty 
in operating 
countries 
Possible changes to 
operating conditions 
or business 
regulations
2021/22
H
2022/23
H
Short 
Term
-	
Global manufacturing footprint 
leading to flexibility
-	
Strong and resilient customer 
base, and nurturing of strategic 
customer relationships 
-	
Risk management function 
responsible for continuous 
monitoring of potential risks
  Low - L     Moderate - M      High - H

Annual Report 2022/23 | Hela Apparel Holdings PLC  139
Risk Category Identified Risk 
Event 
Impact on Hela 
Group
Risk 
Assessment
Tenor 
Of Risk
Risk Treatment and Monitoring
Challenges 
to effective 
supply chain 
management
Margin erosion due 
to elevated raw 
material prices and 
freight charges 
Possible disruptions 
to continuous 
operations due 
to raw material 
unavailability
2021/22
M
2022/23
M
Short 
Term
-	
Supply chain regionalisation
-	
Africa focused manufacturing 
strategy 
-	
Implementation of yarn booking 
models 
-	
Supplier collaborations
Global energy 
crisis 
Impacts on 
customer deliveries 
and continuous 
operations
2021/22
M
2022/23
M
Short to 
Medium 
Term
-	
Investing in alternative energy 
sources and energy efficient 
machinery 
-	
Process improvements
-	
Implementing fuel storage 
mechanisms
Possible 
violations of 
environmental 
and 
compliance 
regulations 
Possible penalties 
and reputational risks 
leading to loss of 
customer and market 
share
2021/22
L
2022/23
L
Short to 
Medium 
Term
-	
Established compliance and 
brand protection teams
-	
Monthly audits and bi-annual 
master audits covering all 
aspects of environmental, legal, 
supply chain, HR and brand 
protection
-	
Introduction of traceable 
materials and origin testing
IT & cyber 
related risks
Risk of IT systems 
being unable to 
support continuous 
operations due 
to system failures 
or possible cyber 
attacks
2021/22
L
2022/23
H
Short to 
Medium 
Term
-	
Roll-out of robust SAP 
S/4HANA Fashion ERP system 
across the Group
-	
Cloud first strategy - 
investments in cloud-based 
solutions for applications, 
systems & disaster recovery 
-	
Development of cyber security 
strategies and enterprise backup 
solutions
Retention of 
key talent, 
escalation in 
labour cost 
& industrial 
relations risk
Skills migration, 
barriers for 
continuous 
operations, work 
culture distortions 
and margin erosions 
2021/22
L
2022/23
M
Short to 
Medium 
Term
-	
Sound performance appraisal 
and remuneration strategies 
-	
Provision of conducive working 
conditions, and safeguarding of 
human rights
-	
Execution of people 
empowerment programmes
-	
Compliance to health and safety 
protocols and provision of 
healthcare benefits

140  Hela Apparel Holdings PLC | Annual Report 2022/23
Annual Report of the Board 
of Directors on the Affairs 
of the Company
GENERAL
The Directors of Hela Apparel Holdings PLC have pleasure in 
presenting to the Shareholders their Report together with the 
Audited Financial Statements of the Company and the Group 
for the year ended 31 March 2023. 
The Financial Statements and the disclosures made herein 
conform to the requirements of the Companies Act No. 7 of 
2007. The Report also includes relevant disclosures required 
to be made under the Listing Rules of the Colombo Stock 
Exchange and is guided by the recommended best practices 
on accounting and corporate governance.
Hela Apparel Holdings PLC was incorporated under the 
Companies Act No. 07 of 2007 of Sri Lanka on 11 October 
2018 as a Private Limited Company, converted to a Limited 
Company on 23 November 2021 and was listed on the 
Colombo Stock Exchange on 7 February 2022 with Company 
Registration No. PQ 00205151.
PRINCIPAL ACTIVITIES OF THE COMPANY AND 
REVIEW OF PERFORMANCE DURING THE YEAR 
The principal activities of the Company are the provision of 
consultancy and support services to Group Companies. The 
companies within the Group and its business activities are 
described in the Group Companies and Directorate section 
under the Supplementary Information section of the Annual 
Report. There were no significant changes to the principal 
activities of the Company or its subsidiaries during the year.
This Report together with the Financial Statements, reflect 
the state of affairs of the Company.
FINANCIAL STATEMENTS OF THE COMPANY AND 
GROUP
The Financial Statements of the Company and the 
Consolidated Financial Statements of the Company and its 
subsidiaries, duly signed by two Directors on behalf of the 
Board are given on pages 164 to 165.
The financial statements for the year ended 31st March 
2022 were restated as explained in Note 9(b) to the financial 
statements.
AUDITORS’ REPORT
The Group’s External Auditors, Messrs. 
PricewaterhouseCoopers, performed the audit on the 
Financial Statements for the year ended 31 March 2023. 
The Report of the Independent Auditors on the Financial 
Statements of the Company and its subsidiaries is given on 
pages 157 to 161 as required by Section 168 (1) (c) of the 
Companies Act No. 7 of 2007.
ACCOUNTING POLICIES
A summary of the significant Accounting Policies adopted in 
the preparation of the Financial Statements is given from pages 
215 to 226 of the Annual Report as required by Section 168 
(1) (d) of the Companies Act No. 7 of 2007. There have been 
no changes in the accounting policies adopted by the Group 
during the year under review. The Group prepared its financial 
statements in accordance with Sri Lanka Accounting Standards 
(SLFRS / LKAS) which have materially converged with the 
International Financial Reporting Standards (IFRS) as issued by 
the International Accounting Standards Board (IASB). 
REVENUE
The Total Revenue of the Group for the year ended 31 
March 2023 was Rs. 95,302,704,798  (FY 2021/22 – Rs. 
56,179,622,304). An analysis of the income is given in Note 2 to 
the Financial Statements on page 171 of this Annual Report.
PROFIT AND APPROPRIATIONS 
The (Loss)/Profit Before Tax of the Group for the year ended 
31 March 2023 was Rs. -3,424,915,655 (FY 2021/22 -  
Rs. 829,135,777) and the (Loss)/Profit After Tax for the year 
ended 31 March 2023 was Rs. -3,332,448,256 (FY 2021/22 
- Rs. 580,664,312). Whilst the Group (loss)/profit attributable 
to equity holders of the parent was Rs. -3,498,317,473  
(FY 2021/22 - Rs. 584,043,620).
The details of Profit relating to the Group are given on page 
162 of the Annual Report. 
DIRECTORS
Based on the declarations for the year 2023 received from the 
Directors under the CSE Rules, Mr. A.R. Rasiah was reclassified 
as Independent Non-Executive Director and Mr. S. Doron was 
reclassified as Non-Executive Director w.e.f 10 August 2023. 
The names of the Directors who held office as at the end of 
the accounting period and to date are given below:
 Name of Director
Designation
Mr. A R Rasiah
Chairman/ Independent Non 
Executive Director
Mr. P L D Jinadasa
Group CEO/Executive Director
Mr. G P Gunawardana Independent Non Executive Director
Ms. A Nanayakkara*
Independent Non Executive Director
Ms. T Peries
Independent Non Executive Director
Dr. A J Alderton
Non Executive Director
Mr. P Schleiffer
Non Executive Director
Mr. S Khan**
Non Executive Director and Alternate 
Director to Dr. A J Alderton
Mr. S. Doron**
Non Executive Director
*Resigned w.e.f 31 August 2022 | **Appointed w.e.f 05.10.2022

Annual Report 2022/23 | Hela Apparel Holdings PLC  141
RECOMMENDATION FOR ELECTION/ RE-
APPOINTMENT
The Directors have recommended the re-appointment of  
Mr. A R Rasiah who is over 70 years of age as a Director of 
the Company; and accordingly, a resolution will be placed 
before the shareholders in terms of Section 211 of the 
Companies Act with regard to the said re-appointment.
The Directors have also recommended the elections of below 
Directors newly appointed to the Board on 5th October 2022 
in terms of Article No. 27 (2) of the Articles of Association of 
the Company:
-	
Mr. S. Doron – Non-Executive Director
-	
Mr. S. Khan – Non Executive Director 
DIRECTORS OF SUBSIDIARY, SUB-SUBSIDIARIES & 
JOINT VENTURE COMPANIES
Company Name
Board Members
Hela Clothing (Private) 
Limited
Mr. A R Rasiah
Mr. P L D Jinadasa
Mr. G P Gunawardana 
Mr. R S P Amaratunga
Foundation Garments 
(Private) Limited
Mr. A R Rasiah
Mr. P L D Jinadasa
Mr. G P Gunawardana 
F D N Sourcing (Private) 
Limited
Mr. A R Rasiah
Mr. P L D Jinadasa
Mr. G P Gunawardana 
Foundation Bennett (Private) 
Limited
Mr. A R Rasiah
Mr. P L D Jinadasa
Mr. G P Gunawardana 
Alpha Textiles (Private) 
Limited
Mr. A R Rasiah
Mr. P L D Jinadasa
Mr. G P Gunawardana
Jinadasa Bennett (Private) 
Limited
Mr. A R Rasiah
Mr. P L D Jinadasa
Mr. G P Gunawardana
Hela Investment Holdings 
Limited
Mr. A R Rasiah
Mr. P L D Jinadasa
Mr. G P Gunawardana
Ms. D B F Shahnaz
Mr. F H Doobarry
Hela USA Inc.
Mr. A R Rasiah
Mr. P L D Jinadasa
Mr. G P Gunawardana
Hela Intimates EPZ Limited
Mr. P L D Jinadasa
Mr. N Mohottige 
Company Name
Board Members
Hela Indochine Apparel PLC
This company type in Ethiopia 
does not require a governing 
board 
Hela Clothing
Egypt
S.A.E
Mr. P L D Jinadasa
Mr. R S P Amarathunga
Ms. R M F A Torky
Mr. K D V L Koralearachchi
Mr. D D M Arachchi
Sumbiri Intimate Apparel 
PLC
This company type in Ethiopia 
does not require a governing 
board.
Safeguard Workwear EPZ 
Limited
Mr. P L D Jinadasa
Mr. G S M A Gulam
Mr. K M H Dostmohamed
Mr. N. Mohottige 
DIRECTORS’ INTERESTS IN CONTRACTS
Except for the transactions referred to in Note 16 (c) to the 
Financial Statements, the Company did not carry out any 
transaction with any of the Directors. The Company carried 
out transactions during the year in the ordinary course of 
its business at commercial rates with the related entities of 
directors referred to herein. 
INTERESTS REGISTER
The Company has maintained an Interest Register as per 
the Companies Act No. 7 of 2007 and all the Directors have 
declared all material interests in contracts involving the 
Company and refrained from voting on matters in which they 
were materially interested. They have also disclosed their 
interest in other companies so as to ensure that they refrain 
from voting on a matter in which they have an interest.
DIRECTORS’ REMUNERATION
The Directors’ total remuneration is disclosed under Key 
Management Personnel compensation in Note 16 (c) to the 
Financial Statements on page 211.
DIRECTORS’ RESPONSIBILITY FOR FINANCIAL 
REPORTING
The Directors are responsible for preparing and presenting 
the Financial Statements of the Company and the Group 
to reflect a true and fair view of the state of its affairs. The 
Directors are of the view that these financial statements have 
been prepared in conformity with the requirements of the  
Sri Lanka Accounting Standards and the Companies  
Act No. 7 of 2007.

142  Hela Apparel Holdings PLC | Annual Report 2022/23
DIRECTORS’ SHAREHOLDING
The relevant interests of Directors in the shares of the 
Company as at 31 March 2023 and 31 March 2022 are 
shown in the table below:
Shareholding as at
Shareholding as at
 31.03.2023
 31.03.2022
Mr. A R Rasiah
4,273,743
4,273,743
Mr. P L D Jinadasa
137,276,656
135,932,066
Ms. A Nanayakkara*
-
619,100
Mr. G P 
Gunawardana
-
-
Ms. T Peries
57,400
57,400
Mr. Patrick 
Schleiffer
-
-
Dr. A J Alderton
-
-
Mr. S Khan
-
-
Mr. S Doron
-
-
*Resigned w.e.f 31 August 2022
AUDITORS
Messrs. PricewaterhouseCoopers, Chartered Accountants 
served as the Auditors during the year under review and also 
provided audit related services and permitted non-audit/
consultancy services.
Based on the declaration provided by Messrs. 
PricewaterhouseCoopers, Chartered Accountants and to 
the extent that the Directors are aware, the Auditors do not 
have any relationship with (other than that of the Auditors) or 
interest in, the Company, which in the opinion of the Board, 
may reasonably be considered to have a bearing on their 
independence within the meaning of the Code of Professional 
Conduct and Ethics issued by The Institute of Chartered 
Accountants of Sri Lanka as at the Reporting Date.
A total amount of Rs. 25,545,125 is payable by the Company 
to the Auditors for the year under review comprising  
Rs. 25,330,383 as audit fees and Rs. 214,742 for non-audit 
services.
The Auditors have expressed their willingness to continue 
in office. The Board has recommended that Messrs. 
PricewaterhouseCoopers, Chartered Accountants be re-
appointed as Auditors. A resolution to re-appoint the Auditors 
and to authorise the Directors to determine their remuneration 
will be proposed at the Annual General Meeting. 
Details of payments to Auditors of subsidiary companies on 
account of audit fees and for permitted non audit services are 
set out in Note 3 (c) to the Financial Statements on page 172.
COMPANY SECRETARY
Ms. Janseni Kuhanesan was appointed as the Secretary of 
the Company w.e.f 1st February 2023 consequent to the 
resignation of M/s. PW Corporate Secretarial (Pvt) Ltd on 1st 
February 2023. 
STATED CAPITAL
The Stated Capital of the Company as at 31 March 2023 was  
Rs. 5,754,574,715/- represented by 1,309,955,933 Ordinary 
Voting Shares. 
The Stated Capital of the Company as at 31 March 2022 was 
Rs. 5,730,536,893/- (reclassified) by 1,303,117,944 Ordinary 
Voting Shares. 
Pursuant to the vesting and issuance of shares under the 
Company’s Employee Share Ownership Plan, 6,837,989 
ordinary voting shares were listed on the CSE during the 
period 1st August 2022 – 31st August 2022. 
On 1st August 2023, 7,425,627 ordinary voting shares were 
issued under the Share Ownership Plan and accordingly the 
Stated Capital of the Company increased to  
Rs. 5,780,678,282/- consisting of 1,317,381,560 ordinary 
voting shares
SHAREHOLDINGS/ SHARE INFORMATION 
The Market value of an ordinary share of the Company as at 
31 March 2023 was Rs. 8.00 (31 March 2022 – Rs. 12.90). 
There were 14,438 shareholders registered as at 31 March 
2023 (31 March 2022 – 16,445).
MAJOR SHAREHOLDERS, DISTRIBUTION 
SCHEDULE AND OTHER INFORMATION
Information on the distribution of shareholding, analysis of 
shareholders, market values per share, earnings, dividends, net 
assets per share, twenty largest shareholders of the Company, 
public holding as per the Listing Rules of the Colombo Stock 
Exchange are given on pages 235 to 237 under the Investor 
Information section of this Annual Report.
SHAREHOLDERS 
It is the Group’s policy to treat its shareholders equitably and 
maximise shareholder wealth. Quarterly returns of financial 
results with any developments or changes are hosted on the 
CSE website.
ISSUE OF SHARES - ESOP 
The details of the grants/vesting of Employee Share 
Ownership Plan (ESOP) are given under Investor Information 
section found on page 235 of the Annual Report.
Annual Report of the Board of Directors on the 
Affairs of the Company

Annual Report 2022/23 | Hela Apparel Holdings PLC  143
STATUS OF COMPLIANCE TO MINIMUM PUBLIC 
HOLDING REQUIREMENT OF THE LISTING RULES 
The number of ordinary shares held by the Public as at 
31 March 2023 was 22.65% of the Issued Capital of the 
Company. The minimum public holding as at 31 March 2023 
as per section 7.14.1 of the Listing Rules is as follows: 
Float Adjusted 
Market 
Capitalisation - 
(LKR)
 Holding 
(%)
No of 
Shareholders
Minimum Public 
Holding as at 31 
March 2023
2,373,640,151
22.65
 14,418 
The Company complies with the minimum public holding 
requirement of the Main Board as per Option 5 of Section 
7.14.1 (a) of the CSE Listing Rules. 
EMPLOYMENT POLICY
Group employment policies are based on recruiting the best 
people, providing them with training to enhance their skills, as 
well as recognising the innate skills and competencies of each 
individual, while offering equal career opportunities regardless 
of gender, race or religion and retaining them within the 
Group as long as possible. Health and safety of the employees 
has always received priority in the Group HR agenda.
As at 31 March 2023, 17,759 persons were in employment in 
the Group (19,430 persons as at 31 March 2022).
There have been no material issues pertaining to employees 
and industrial relations of the Company and the Group.
CUSTOMERS
The Group firmly believes in investing time and effort in 
discovering exactly what its customers want, and building 
strategic long-term relationships by supplying their demands 
in the best manner possible every time. In other words, the 
Hela Group believes in selling customer excellence. 
SUPPLIER POLICY
The Group places great emphasis on the importance of its 
suppliers by building loyalty and ensuring prompt payment. 
Furthermore, clear communication on the terms of payment 
included in commercial agreements is maintained. 
RESERVES
The reserves of the Company with the movements during 
the year are given in Note 7(b) to the Financial Statements on 
page 194.
LAND HOLDINGS
The Company’s land holdings referred to in Note 6 (a) and  
6 (c) to the Financial Statements comprise the following:
-	
Information on extents and locations of revalued freehold 
land and buildings of the Group.
-	
Details on revaluation of freehold land and buildings.
-	
Valuation techniques used in measuring the land and 
buildings and significant unobservable inputs used.
-	
Carrying amounts that would have been recognised if land 
and buildings were stated at cost.
PROPERTY, PLANT & EQUIPMENT
Details and movements of property, plant and equipment are 
given under Note 6 (a) to the Financial Statements on pages 
178 to 181.
INVESTMENTS
Details of the Company’s quoted and unquoted investments 
as at 31 March 2023 are given in Note 12 to the Financial 
Statements on pages 207 to 209.
DONATIONS
The Company and the Group have not made monetary 
donations during the year under review.
RISK MANAGEMENT 
An ongoing process is in place to identify and manage the 
risks that are associated with the business and operations of 
the Company. The Directors review this process through the 
Audit & Risk Committee.
Specific steps taken by the Group, in managing the risks are 
detailed in the section on Risk Management on page 136.
STATUTORY PAYMENTS
The Directors confirm that to the best of their knowledge, 
all taxes, duties and levies payable by the Company, all 
contributions, levies and taxes payable on behalf of, and in 
respect of employees of the Company and all other known 
statutory dues as were due and payable by the Company as at 
the reporting date have been paid or, where relevant provided 
for, except for certain assessments where appeals have been 
lodged.
CONTINGENT LIABILITIES
Except as disclosed in Note 13 to the Financial Statements on 
page 210, there were no material Contingent Liabilities as at 
the Reporting date.

144  Hela Apparel Holdings PLC | Annual Report 2022/23
EVENTS OCCURRING AFTER THE REPORTING DATE
Except for the matters disclosed in Note 16 to the Financial 
Statements on page 210, there are no material events as at 
the date of the Auditors’ Report which require adjustment to, 
or disclosure in the Financial Statements.
CORPORATE GOVERNANCE 
The Board of Directors confirm that the Company is compliant 
with Section 7.10 of the Listing Rules of the Colombo Stock 
Exchange. 
The Corporate Governance Statement on page 114 explains 
the measures adopted by the Company during the year.
DIRECTORS’ MEETINGS
The Directors conduct Board Meetings at least once a month 
and as and when necessary. Board decisions are resolved 
by resolutions at meetings, by circulation and also through 
circular Board papers which are approved and signed by all 
the Directors and tabled at the Board Meetings. The Minutes 
of the Board Meetings, the Agenda for the next meeting and 
the Management Reports are circulated to all the Directors in 
advance of the meetings.
The schedules of Directors’ attendance at Board Meetings 
and at the Board Sub-Committee Meetings are appended in 
the Corporate Governance Report on pages 114 to 154.
BOARD SUB-COMMITTEES
Audit & Risk Committee, Remuneration Committee, 
Nomination Committee and Related Party Transactions 
Review Committee function as Board Sub-Committees, 
with Directors who possess the requisite qualifications and 
experience. The compositions of the said Committees are as 
follows.
AUDIT & RISK COMMITTEE
Mr. G P Gunawardana  - Chairman 
Dr. A J Alderton	
Mr. P Schleiffer
Ms. A Nanayakkara (resigned w.e.f 31 August 2022) 
Ms. T Peries
Mr. S. Doron (appointed w.e.f 5 October 2022 and resigned 
w.e.f 10 August 2023)
Mr. A.R. Rasiah (appointed w.e.f 10 August 2023)
REMUNERATION COMMITTEE
Ms. T Peries – Chairperson (appointed w.e.f 5 October 2022)
Dr. A J Alderton
Mr. G P Gunawardana
Ms. A Nanayakkara (resigned w.e.f 31 August 2022) 
Mr. S. Doron (appointed w.e.f 5 October 2022 and resigned 
w.e.f 10 August 2023)
Mr. S. Khan (appointed w.e.f 5 October 2022)
Mr. A.R. Rasiah (appointed w.e.f 10 August 2023)
NOMINATION COMMITTEE
Mr. A R Rasiah - Chairman
Ms. T Peries 
Dr. A J Alderton
Mr. P Schleiffer
RELATED PARTY TRANSACTIONS REVIEW 
COMMITTEE
Mr. G P Gunawardana (appointed w.e.f 5 October 2022)
Ms. T Peries 
Dr. A J Alderton
Ms. A Nanayakkara (resigned w.e.f 31 August 2022) 
Mr. Patrick Schleiffer  (appointed w.e.f 5 October 2022)
Mr. A.R. Rasiah (appointed w.e.f 10 August 2023)
Mr. S. Doron (appointed w.e.f 5 October 2022 and resigned 
w.e.f 10 August 2023) 
The Board of Directors formed a Related Party Transactions 
Review Committee to assist the Board in reviewing all related 
party transactions in accordance with the requirement of 
Section 9 of the Listing Rules of the CSE. The Directors 
declare that during the year under review there were no 
related party transactions which required the shareholder 
approval or non-recurrent related party transactions which 
required immediate disclosure in accordance with Section 9 of 
the Listing Rules of the CSE. 
GOING CONCERN
The financial statements are prepared and presented on 
going concern principles. After making adequate enquiries 
from management, the Directors are satisfied that the Group 
has adequate resources to continue its operations in the 
foreseeable future.
ENTERPRISE RISK MANAGEMENT AND INTERNAL 
CONTROLS 
The Board confirms that there is an ongoing process of 
identifying, evaluating and managing any significant risk faced 
by the Group, where annual risk reviews are carried out by 
the Enterprise Risk Management Division and the risks are 
further reviewed each quarter by each business unit. The 
headline risks of the listed Company and the Group are 
presented to the Audit & Risk Committee for review. The 
Corporate Governance section to this Report elaborates on 
these practices and the Group’s risk factors.
RELATED PARTY TRANSACTIONS 
The Company’s transactions with Related Parties, given in 
Note 16 to the Financial Statements, have complied with 
Section 9 of the Listing Rules. 
Annual Report of the Board of Directors on the 
Affairs of the Company

Annual Report 2022/23 | Hela Apparel Holdings PLC  145
CORPORATE SOCIAL RESPONSIBILITY 
The Company continued its Corporate Social Responsibility 
programmes, details of which are set out on pages 85 to 90 of 
this Report.
COMPLIANCE WITH LAWS AND REGULATIONS 
To the best of knowledge and belief of the Directors, the 
Company and the Group have not engaged in any activity, 
which contravenes laws and regulations of the country.
ANNUAL GENERAL MEETING
The Notice of the Second Annual General Meeting of the 
Company appears on page 254.
This Annual Report is signed for and on behalf of the Board of 
Directors by
A. R. Rasiah	
P. L. D. Jinadasa
Chairman	
Group CEO/Director
(Ms) J. Kuhanesan
Company Secretary
05 September 2023

146  Hela Apparel Holdings PLC | Annual Report 2022/23
Audit & Risk Committee 
Report
This report provides an overview of how the Audit & Risk 
Committee (“the Committee”) operates, an insight into the 
Committee’s activities during the year and its role in ensuring 
the integrity of the Group’s published financial information 
and the effectiveness of its risk management, controls and 
related processes.
The Committee functions according to its Terms of Reference, 
which was approved by the Board on 25th May 2022. 
COMPOSITION 
Aroshi Nanayakkara stepped down from the Board and 
therefore the Committee in August 2022. The Committee was 
reconstituted by the Board on 05 October 2022 with Shlomo 
Doron being appointed as a member of the Committee. 
Consequent to reclassification of Directors on 10 August 
2023, Mr. A.R. Rasiah was appointed as a member of the 
Committee replacing Shlomo Doron.
The members at present are:
Mr. Gayan Gunawardana - Chairman /Independent Non-
Executive Director
Dr. Alastair Alderton     
- Member/ Non-Executive Director
Mr. Patrick Schleiffer
- Member /Non-Executive Director
Ms. Trisha Peries 
- Member/ Independent Non-
Executive Director
Mr. A. R. Rasiah
- Member/ Independent Non-
Executive Director
The Chairman of the Committee possess the necessary 
financial expertise and experience as prescribed in the Listing 
Rules of the CSE. The Board is satisfied that the Committee 
has an adequate combination of accounting, auditing, legal 
and commercial experience to facilitate a satisfactory level of 
discharge of their responsibilities. 
RESPONSIBILITIES
Key responsibilities of the Committee are to:
	
Monitor the integrity of the financial statements, including 
the review of significant financial reporting judgements; 
	
Monitor the Group’s risk management system, review of 
the principal risks and the management of those risks; 
	
Provide advice to the Board on whether the Annual 
Report is fair, balanced and understandable and on the 
appropriateness of the going concern statement; 
-	
Review and monitor the External Auditor’s independence 
and objectivity, and the effectiveness of the External 
Audit; 
-	
Review the system of internal financial control;
-	
Monitor the activities and review the effectiveness of the 
Internal Audit function;
MEETINGS 
The Committee met ten times during the year. Each meeting 
agenda included a range of topics across the Committee’s 
areas of responsibility. Committee meetings for reviewing 
quarterly financial statements are usually scheduled in line 
with the schedule of Board meetings. Committee meetings 
for reviewing internal audit reports are scheduled separately. 
Minutes of all the Committee meetings are tabled at the 
subsequent Board meetings allowing the Board to ratify the 
recommendations of the Committee. 
The Group Chief Executive Officer, Group Chief Financial 
Officer, Internal Auditor and the Group Chief Risk Officer 
are invited to attend all Audit & Risk Committee meetings. 
External Auditors are invited prior to the release of the 
audited financial statements, as well as to discuss key audit 
matters and the Management Letter. The Chief Information & 
Process Officer is invited at the time of any updates required 
on the Group’s security systems and strategies. The heads 
of relevant departments and the Group Chief People Officer 
are invited when the relevant internal audit reports are being 
discussed. The Company Secretary acts as the Secretary to 
the Committee.

Annual Report 2022/23 | Hela Apparel Holdings PLC  147
Attendance of members at the Committee meetings during the year under review are as follows:
05.04.2022 17.05.2022 02.06.2022 25.07.2022 08.08.2022 11.11.2022 15.12.2022 03.02.2023 09.02.2023 30.03.2023
Total
Mr. Gayan Gunawardana










10/10
Dr. Alastair Alderton     










0/10
Mr. Patrick Schleiffer










10/10
Ms. Trisha Peries










10/10
Mr. Shlomo Doron*
-
-
-
-
-





4/10
Mr. Shesan Khan**





-



-
8/10
Ms. Aroshi Nanayakkara***





-
-
-
-
-
5/10
* Appointed as a Member with effect from 5th October 2022 and resigned w.e.f 10 August 2023
**Alternate Director to Dr. Alastair Alderton
***Resigned w.e.f 31st August 2022
LONG-TERM VIABILITY STATEMENT AND GOING 
CONCERN ASSESSMENT 
The Committee provides advice to the Board on the form 
and basis of conclusion underlying the long-term viability 
statement and the going concern assessment. The Committee 
challenged management on its financial risk assessment as 
part of its consideration of the long-term viability statement. 
This included scrutiny of forecast liquidity, balance sheet 
stress tests, and the availability of cash and cash equivalents 
through new or existing financing facilities. 
FINANCIAL REPORTING 
The Committee’s primary responsibility in relation to the 
Group’s financial reporting is to review, with management and 
the External Auditors, the appropriateness of the quarterly 
and annual consolidated financial statements. 
The Committee’s work included reviews of goodwill 
impairment testing, taxation judgements, legal contingencies 
and the Company’s work on going concern and the long-
term viability statement. The Committee focuses on:  the 
quality and acceptability of accounting policies and practices; 
providing advice to the Board on the form and basis 
underlying the long-term viability statement and material 
areas in which significant judgements have been applied 
or have been discussed with the External Auditors. The 
Committee received reports from the management in relation 
to: the identification of critical accounting judgements and 
key sources of estimation uncertainty on the consolidated 
financial statements; significant accounting policies and 
proposed disclosures of these in the Annual Report. The 
Committee reviewed the restated financial statements for 
the year ended 31st March 2022 as part of its year-end 
process to approve the audited financial statements for the 
year ended 31st March 2023. The Committee is satisfied that 
there were no significant concerns or issues identified in the 
financial statements for the reported period. 
FAIR, BALANCED AND UNDERSTANDABLE 
REPORTING
The Committee assessed the clarity of the disclosures and 
compliance with financial reporting standards and relevant 
financial and governance reporting requirements. In doing so, 
the Committee considered correspondences from regulators 
in relation to financial reporting and governance areas.
The Committee assessed whether the Annual Report, taken 
as a whole, is fair, balanced and understandable and provides 
the information necessary for shareholders to assess the 
Company’s position and performance, business model and 
strategy. The Committee reviewed the processes and controls 
that underpin the Annual Report’s preparation, ensuring 
that all contributors and senior management are fully aware 
of the requirements and their responsibilities. This included 
promoting the success of the Company for the benefit of 
its members as well as considering the interests of other 
stakeholders which will have an impact on the Company’s 
long-term success. 
INTERNAL AUDIT
The Committee has the primary responsibility for oversight 
of the Group’s system of internal control, including the risk 
management framework, the compliance framework, and the 
work of the Internal Audit function. 
The main focus during the year was the major digital 
transformation that the Group is undergoing, and the 
Committee was provided with regular updates from the Chief 
Information & Process Officer to assess how the risks were 
being managed in the transformation process. The Committee 
completed a series of reviews across multiple business units, 
typically with a focus on the risk and control environment.

148  Hela Apparel Holdings PLC | Annual Report 2022/23
The Internal Audit function provides independent and 
objective assurance over the design and operating 
effectiveness of the system of internal control, through a risk-
based approach. The Committee has a standing agenda item 
to cover Internal Audit topics. The Committee reviews and 
approves the annual audit plan, assesses the adequacy of the 
budget and resources available to Internal Audit, and reviews 
the operational initiatives for the continuous improvement 
of the function’s effectiveness. The audit plan’s rolling review 
framework, and the data driven risk assessment used to 
identify emerging risks is considered and amendments to 
the audit programme reviewed during the financial year. The 
Committee reviews progress against the approved audit plan 
and the results of audit activities. 
During the year, the Internal Audit function’s coverage 
focused on principal risks, including the challenges faced by 
the management in the digital transformation process, which 
resulted in a significant number of policy and procedural 
changes. Relevant audit results are reported before the 
Committee’s in-depth review, which allows the Committee to 
have an integrated view on the way the risk is managed. 
Management is responsible for ensuring that issues raised by 
the Internal Audit are addressed within an agreed timetable, 
and the Committee reviews their timely completion. The 
Committee satisfied itself with the effectiveness of the 
Internal Audit function by considering the results of the 
assessments, as well as through ongoing review and oversight 
of the assurance activities.
RISK MANAGEMENT AND INTERNAL CONTROL
The Group’s risk assessment process and the way in which 
significant business risks are managed is an area of focus 
for the Committee. The Committee’s activities in this area 
were led primarily, but not solely, by the Group’s assessment 
of its principal and emerging risks and uncertainties. The 
management is responsible for establishing and maintaining 
adequate internal controls, and the Committee has 
responsibility for ensuring the effectiveness of those controls. 
The Committee reviewed the process by which the Group’s 
management assessed the control environment together with 
risk mitigation strategies presented by the Group CFO.  As part 
of the Committee’s recurring agenda items, a fraud update was 
included, the scope of which would include incidents of fraud 
involving management or employees that are significant for 
assessing the risk management systems in place. 
The Committee has completed its review of the effectiveness 
of the Group’s system of internal control, including risk 
management, during the year and up to the date of this 
Annual Report. The review covered all material controls 
including financial, operating and compliance controls. Specific 
areas for improvement were identified by contemplating on 
alternative controls and processes. This allows the Committee 
to provide positive assurance to the Board and thereby 
support it in fulfilling its obligations.
EXTERNAL AUDIT
The Committee has primary responsibility for overseeing the 
relationship with the External Auditors. This includes making 
the recommendation on the appointment, reappointment, 
and removal of the External Auditors, assessing their 
independence on an ongoing basis, approving the statutory 
audit fee, the scope of the statutory audit and reviewing the 
lead audit engagement partner and the team. 
M/s. PricewaterhouseCoopers (PwC) functioned as the 
External Auditors for  FY 2022/23. At the start of the financial 
year, the detailed Audit plan was presented to the Committee 
which outlined the audit scope, planned materiality and the 
assessment of key audit risks. The Committee received reports 
from PwC on its assessment of the accounting and disclosures 
in the financial statements and financial controls, as well as 
the outcome of the previous year’s audit. The Committee has 
continued to focus on key audit matters. All of these matters 
were conducted to the satisfaction of the Committee.
The Committee received details of all relationships between 
the Company and the Auditors that may have a bearing on 
their independence and received confirmation from them 
that they are independent of the Company in accordance 
with the applicable rules and regulations. The Committee 
reviewed the quality of the external audit process throughout 
the year and considered their performance. PwC continues 
to provide robust challenge to management and provides 
its independent view to the Committee on specific financial 
reporting judgements and the control environment. Based 
on these reviews, the Committee concluded that there had 
been appropriate focus and challenge by PwC on the primary 
areas of the audit, that it remains independent, and that it had 
applied robust challenge and scepticism throughout the audit.
Having considered the matters detailed above, the Committee 
recommended to the Board the re-appointment of PwC as 
the auditors of the Company for the financial year ending 31 
March 2024 subject to the approval of the shareholders, at a 
remuneration to be agreed by the Board.
AUDIT FEES 
The Committee reviewed and discussed the External Auditor’s 
fee proposal, was engaged in agreeing the audit scope and, 
following the receipt of formal assurance, the Committee was 
satisfied that the audit fees were appropriate for the scope 
Audit & Risk Committee Report

Annual Report 2022/23 | Hela Apparel Holdings PLC  149
of the work required. The Committee recommended to the 
Board for approval the non-audit service engagements at the 
beginning of the financial year and scrutinised compliance 
with the agreed scope for such non-audit services thereby 
protecting the independence and objectivity of the External 
Auditors.  
CONCLUSION
The Audit & Risk Committee is reasonably satisfied that 
the entity’s accounting policies, internal controls, and risk 
management processes are adequate, and that the financial 
affairs of the Group are managed in accordance with 
approved policies and accepted accounting standards. 
On Behalf of the Audit & Risk Committee
Gayan Gunawardana
Chairman – Audit & Risk Committee
05 September 2023

150  Hela Apparel Holdings PLC | Annual Report 2022/23
Remuneration Committee Report
This report provides insights into the Remuneration 
Committee’s (“the Committee”) responsibilities and activities, 
as well as the remuneration policy implemented by the Group 
to ensure alignment with the long-term interests of the 
Company and its shareholders.
ROLE AND COMPOSITION OF THE COMMITTEE 
The Committee is an independent Committee established 
by the Board of Directors to oversee the Company’s 
remuneration policies and practices. The Committee 
comprises of five (5) members, with a mix of three (3) 
Independent Non-Executive Directors and two (2) Non-
Independent Non-Executive Directors. All members possess 
relevant expertise and experience in areas such as executive 
compensation, finance and corporate governance.
The Committee was reconstituted on 5 October 2022 
consequent to the resignation of Aroshi Nanayakkara and 
once again reconstituted on 10 August 2023 consequent to 
the reclassification of Directors.
Members of the Committee for the year under review are as 
follows:
Ms. Trisha Peries 
- Chairperson/ Independent Non-
Executive Director
Mr. Gayan Gunawardana - Member /Independent Non-
Executive Director
Dr. Alastair Alderton    
- Member /Non-Executive 
Director
Mr. Shesan Khan
- Member /Non-Executive 
Director
Mr. A.R. Rasiah
- Member/ Independent Non-
Executive Director 
The Company Secretary functions as the Secretary to the 
Committee. 
MEETINGS 
The Committee met on 04 July 2022 and all members of the 
Committee attended this meeting. The Board was informed of 
the decisions of the Committee. 
The Group Chief Executive Officer attends the meetings 
by invitation. The Chief People Officer of the Group, Senior 
Managers and HR consultants may attend the meetings as 
and when required. 
The Committee operates in accordance with its Terms of 
Reference (TOR) as approved by the Board. 
RESPONSIBILITIES 
The Committee’s key responsibilities include:
1.	 Policy Review
The Committee is responsible for reviewing the Company’s 
remuneration policies to ensure that they are aligned with 
the Company’s strategic objectives, promote long-term value 
creation, and attract and retain top executive talent. The 
policies are regularly reviewed to assess their effectiveness 
and compliance with regulatory requirements and industry 
best practices. 
2.	 Compensation Benchmarking
The Committee compares executive remuneration 
practices with industry peers to ensure that the Company’s 
compensation packages are competitive, while considering 
the Company’s size, sector and performance. 
3.	 Performance Evaluation and Incentive Design
The Committee oversees the performance evaluation process 
for the Executive Director and the Senior Management. 
It works closely with the Group CEO to set challenging 
performance targets that align with the Company’s strategic 
goals and create shareholder value. The Committee also 
assists in designing incentive plans, including short-term 
and long-term incentive schemes, that reward superior 
performance and align executive interests with long-term 
shareholder value creation.  
4.	 Executive Remuneration Determination
The Committee is responsible for setting the remuneration 
package for the Executive Director, including base salary, 
bonuses, share-based incentives and other benefits. 
The Committee ensures that this package is reasonable, 
competitive and reflective of individual and company 
performance, as well as prevailing market conditions. 
ACTIVITIES OF THE COMMITTEE 
During the year under review, the Committee received 
updates from the Company’s Human Resources department 
with regard to the digital transformation of HR processes for 
its overseas locations. The Committee also closely monitored 
the rigorous process review undertaken for goal setting for 
the Group CEO and the Senior Management, as well as the 
implementation of a Performance Management System.  
The Committee encouraged the Senior Management to 
engage external consultants to assist the Human Resources 
department in reviewing the existing remuneration policies 
and procedures, and to implement the best practices 
according to industry standards.

Annual Report 2022/23 | Hela Apparel Holdings PLC  151
The Committee recommended increments for all employees 
across the Group including the Group CEO and the Senior 
Management in order to attract and retain top executive 
talent, as well as to promote fair pay across the Group. This 
exercise was based on the individual’s skills, experience, 
responsibilities, and market competitiveness. The Committee 
is provided with updates to ensure that salaries remain 
competitive and in line with market trends, and adjustments 
are made as necessary.
In addition, the Committee monitored the fees paid to Non-
Executive Directors for their services and time committed 
for Board proceedings as well as serving as members on the 
Sub-Committees of the Board. 
PERFORMANCE EVALUATION 
The Committee undertook a robust performance evaluation 
to ensure that executive remuneration is directly linked to 
individual and company performance. The Committee, in 
consultation with the Group CEO, established challenging 
and measurable performance objectives for the senior 
management. These objectives are aligned with the 
Company’s strategy, business plans and risk management 
framework.
The Committee conducted assessments of executive 
performance against established objectives. It evaluated 
both quantitative and qualitative performance indicators, 
considering financial metrics, strategic milestones, operational 
excellence and leadership competencies.
CONCLUSION
The Remuneration Committee remains committed to 
maintaining a robust, fair, and transparent remuneration 
framework that aligns the interests of executives with the 
long-term success of Hela. By promoting performance 
driven incentives, the Company strives to attract and retain 
exceptional executive talent while delivering sustainable value 
for all its stakeholders. 
On behalf of the Remuneration Committee
(Ms) Trisha Peries 
Chairperson - Remuneration Committee
05 September 2023

152  Hela Apparel Holdings PLC | Annual Report 2022/23
Related Party Transactions 
Review Committee Report
The Related Party Transactions Review Committee (“RPTR 
Committee”) is responsible for reviewing all related party 
transactions entered into by the Company and ensuring that 
they are conducted at arm’s length and in compliance with 
applicable laws and regulations.
COMPOSITION
The RPTR Committee was reconstituted by the Board on 
05 October 2022 with a view to enhance the Company’s 
internal control mechanisms. It consists of five members, all 
of whom are Non-Executive Directors. Consequent to the 
reclassification of Directors, once again the Committee was 
reconstituted on 10 August 2023. The RPTR Committee is 
chaired by an Independent Non-Executive Director. 
The members at present are:
Mr. Gayan Gunawardana
- Chairman /Independent Non-Executive Director
Dr. Alastair Alderton    
- Member/ Non-Executive Director
Mr. Patrick Schleiffer
- Member /Non-Executive Director
Ms. Trisha Peries
- Member/ Independent Non-Executive Director
Mr. A. R. Rasiah 
- Member/ Independent Non-Executive Director
MEETINGS
Four meetings were held during the year. The Group CEO and the Group CFO were invited to all the RPTR Committee 
meetings held during the year. The Company Secretary acted as the Secretary to the RPTR Committee.
Attendance details during the year under review are as follows:
11.07.2022
08.08.2022
11.11.2022
09.02.2023
Total
Mr. Gayan Gunawardana*
-
-


2/4
Dr. Alastair Alderton     




0/4
Mr. Patrick Schleiffer*
-
-


1/4
Ms. Trisha Peries




4/4
Mr. Shlomo Doron****
-
-


1/4
Mr. Shesan Khan**




4/4
Ms. Aroshi Nanayakkara***


-
-
1/4
* Appointed as a Member with effect from 5th October 2022
**Alternate Director to Dr. Alastair Alderton 
***Resigned w.e.f 31st August 2022
**** Was a member for the period 5 October 2022 - 10 August 2023
RESPONSIBILITIES
The RPTR Committee’s responsibilities include, but are not 
limited to, the following:
1.	 Review of Related Party Transactions: reviewing all 
transactions with related parties (as defined by LKAS 24), 
including directors, key management personnel, and their 
close family members; ensuring that such transactions are 
conducted at arm’s length and on terms that are no less 
favourable than those available to unrelated parties.
2.	 Approval of Related Party Transactions: approving all 
related party transactions above the thresholds specified 
in Section 9 of the Listing Rules of the CSE except to the 
exempted transactions listed in Section 9.5 of the Listing 
Rules; ensuring that such transactions are in the best 
interests of the company and its shareholders.
3.	 Ensure compliance with the Code of Best Practice on 
Related Party Transactions (RPT) issued by the Institute of 
Chartered Accountants of Sri Lanka (“the Code”).

Annual Report 2022/23 | Hela Apparel Holdings PLC  153
4.	 Disclosure of Related Party Transactions: ensuring that all 
related party transactions are disclosed in the company’s 
annual report and financial statements in accordance with 
applicable laws and regulations.
5.	 To review the Terms of Reference (TOR) of the RPTR 
Committee annually and recommend any amendments to 
the TOR to the Board as appropriate. 
ACTIVITIES DURING THE YEAR UNDER REVIEW
During the year, the RPTR Committee exercised oversight 
on behalf of the Board, to ensure compliance with the Code 
and with the Listing Rules of the CSE. The Committee also 
adopted best practices as recommended by the Institute of 
Chartered Accountants of Sri Lanka. 
Directors disclosed their interests which were incorporated 
into the Directors’ Interests Register and is updated annually. 
The RPTR Committee considered all relevant facts and 
circumstances when reviewing/approving any transactions 
in which any of the Committee members/Directors had any 
interests or potential interests. 
The RPTR Committee received periodic updates from the 
finance team with a view to ensuring that the Company 
is in compliance with the relevant rules and regulations, 
shareholders’ interests are protected and fairness and 
transparency are maintained. To this end, the RPTR 
Committee reviewed all recurrent and non-recurrent related 
party transactions entered into by the parent company as 
well as its subsidiaries, including those involving directors, key 
management personnel, and their close family members. 
During the year, the RPTR Committee ensured that all related 
party transactions were conducted at arm’s length and on 
terms that were no less favourable than those available to 
unrelated parties. The RPTR Committee also ensured that 
all related party transactions were in the best interests of 
the company and its shareholders by obtaining required 
affirmations from the Group CFO. The RPTR Committee 
noted that the aggregate value of recurrent related party 
transactions did not exceed the threshold levels as set out in 
the Listing Rules. There were no recurring or non-recurring 
transactions that required disclosure.  
The RPTR Committee reviewed its TOR during the year. 
The RPTR Committee also ensured that all related party 
transactions of the Group were properly disclosed in the 
company’s annual report and financial statements.
All activities of the RPTR Committee were duly communicated 
to the Board by the tabling of the minutes of each RPTR 
Committee meetings at the subsequent Board meetings. All 
recommendations of the RPTR Committee made during the 
year were ratified by the Board. 
The RPTR Committee did not obtain any independent advice 
in reviewing the related party transactions during the year. 
DECLARATION
Based on its review, the RPTR Committee declares that all 
related party transactions entered into by the Company 
during the year were conducted at arm’s length and in 
compliance with applicable laws and regulations. It is also 
satisfied that all related party transactions were in the best 
interests of the company and its shareholders.
The recurrent and non-recurrent related party transactions of 
the Company are given in detail on page 211.
Gayan Gunawardana 
Chairman - Related Party Transactions Review Committee
05 September 2023

154  Hela Apparel Holdings PLC | Annual Report 2022/23
Nomination Committee Report
PURPOSE OF THE COMMITTEE
The Nomination Committee (“the Committee”) was 
established to identify and recommend qualified individuals to 
serve in leadership positions within Hela. 
COMMITTEE COMPOSITION
The Committee is composed of two Non-Independent Non-
Executive Directors and two Independent Non-Executive 
Directors who bring diverse perspectives and expertise to the 
selection process. The Committee members work diligently to 
ensure a fair and transparent nomination process, adhering to 
best corporate governance practices. 
Members of the Committee at present are as follows:
Mr. A.R. Rasiah 
- Chairman/ Independent Non-
Executive Director
Dr. Alastair Alderton
- Member/ Non-Executive 
Director
Mr. Patrick Schleiffer
- Member/ Non-Executive 
Director
Ms.  Trisha Peries
- Member/ Independent Non-
Executive Director
The Group CEO is invited to attend Committee meetings by 
invitation and the Company Secretary acts as the Secretary to 
the Committee.
TERMS OF REFERENCE (TOR)
The Committee operates according to a TOR drafted in line 
with the Code of Best Practices issued by the Institute of 
Chartered Accountants of Sri Lanka. The TOR was adopted 
with the approval of the Board.
ROLES AND RESPONSIBILITIES
The Committee focuses on the following key areas in 
discharging its responsibilities:
-	
To review the structure, size, composition and 
competencies of the Board and make recommendations 
on these areas;
-	
To identify and recommend suitable Directors for 
appointment to the Board and Board Sub-Committees;
-	
To consider selection and appointment of a Director in the 
case of a vacancy;
-	
To identify and appoint personnel to the Senior 
Management of the Company;
-	
To consider succession planning for the Group CEO and 
other members of the Senior Management. 
MEETINGS
The Committee held four (4) meetings during the year, 
attended by all members of the Committee. A member of the 
Committee does not participate in decisions relating to his/her 
own appointment. The minutes of the Committee meetings 
were tabled at Board meetings, thereby providing the Board 
members with access to the deliberations of the Committee. 
KEY ACTIVITIES
Board composition 
The Committee conducted a thorough review of the current 
composition of the Board of Directors to assess the skills, 
experience and diversity needed to effectively govern the 
Company. Accordingly, Mr. Shlomo Doron was appointed as a 
Director to fill the casual vacancy arising from the resignation 
of Ms. Aroshi Nanayakkara. In addition, Mr. Shesan Khan was 
appointed as a Director in addition to his role as an Alternate 
Director for Dr. Alastair Alderton. In line with these new 
appointments to the Board, the Committee recommended the 
reconstitution of the Board Sub-Committees. 
Candidate identification and evaluation
The Committee employed various methods to identify potential 
candidates for senior positions within the Company, including 
internal recommendations, external networks and professional 
recruitment agencies. All candidates were evaluated based on 
their qualifications, expertise, integrity, and alignment with the 
Company’s values and strategic objectives. 
Candidate interviews and assessment
Shortlisted candidates underwent a rigorous interview process 
conducted by the Committee. These interviews provided 
an opportunity to evaluate the candidate’s skills, leadership 
abilities, industry knowledge, and their potential contribution 
to the Company’s long-term success. 
Succession planning
The Committee evaluated the positions of existing key 
management personnel and identified potential successors to 
ensure seamless transition when necessary. Accordingly, the 
Committee nominated an internal candidate to replace the 
outgoing Chief Financial Officer. 
CONCLUSION
The Committee has diligently fulfilled its responsibilities 
by identifying and evaluating candidates for key leadership 
positions within Hela. The Committee’s recommendations 
aim to strengthen the Board’s composition, ensure effective 
corporate governance and drive sustainable growth. 
On behalf of the Nomination Committee
A R Rasiah
Chairman - Nomination Committee
05 September 2023

trusted
P A R T N E R S H I P S
Financial Statements

156  Hela Apparel Holdings PLC | Annual Report 2022/23
The Directors are responsible for preparing the Annual Report 
and the Consolidated Financial Statements in accordance with 
the Companies Act, No.7 of 2007  and Sri Lanka Accounting 
and Auditing Standards Act No. 15 of 1995 and are required 
to prepare financial statements for each financial year, which 
give a true and fair view of the state of affairs of the Company 
and its subsidiaries as at the reporting date and the income 
and expenditure of the Company and the Group for the 
accounting year ending on that reporting date.
The Directors are also responsible in ensuring that the 
Financial Statements comply with any regulations made under 
the Companies Act, which specifies the form and content of 
Financial Statements and any other requirements which apply 
to the Company’s Financial Statements under any other law.
The Directors have ensured that the Financial Statements 
presented in this Annual Report have been prepared using 
appropriate accounting policies, consistently applied and 
supported by reasonable and prudent judgments and 
estimates and in compliance with the Sri Lanka Financial 
Reporting Standards, Companies Act, No.7 of 2007 and the 
Sri Lanka Accounting and Auditing Standards Act No.15 of 
1995.
The Directors are responsible for keeping sufficient 
accounting records, which disclose with reasonable accuracy 
the financial position of the Company and its subsidiaries, 
which will enable them to have the Financial Statements 
prepared and presented as aforesaid.  
They are also responsible for taking measures to safeguard 
the assets of the Company and its subsidiaries and in that 
context to have proper regard to the establishment of 
appropriate systems of internal control with a view to prevent 
and detect fraud and other irregularities.
The Directors are also confident that the Company and the 
Group have adequate resources to continue in operation and 
have applied the going concern basis in preparing the financial 
statements.  
The Directors are of the view that they have discharged their 
responsibilities as set out in this statement.
By Order of the Board
Hela Apparel Holdings PLC
(Ms) J Kuhanesan
Company Secretary
05 September 2023 
Colombo
Statement of Directors’ Responsibility

Annual Report 2022/23 | Hela Apparel Holdings PLC  157
Independent Auditors’ Report
To the shareholders of Hela Apparel Holdings PLC
REPORT ON THE AUDIT OF THE FINANCIAL 
STATEMENTS 
Our opinion 
In our opinion, the financial statements of Hela Apparel 
Holdings PLC (“the Company”) and the consolidated financial 
statements of the Company and its subsidiaries (“the Group”) 
give a true and fair view of the financial position of the 
Company and the Group as at 31 March 2023, and of their 
financial performance and cash flows for the year then ended 
in accordance with Sri Lanka Accounting Standards.
What we have audited
The financial statements of the Company and the 
consolidated financial statements of the Group, which 
comprise:
-	
the statement of financial position as at 31 March 2023;
-	
the statement of profit or loss and statement of 
comprehensive income for the year then ended;
-	
the statement of changes in equity for the year then 
ended;
-	
the statement of cash flows for the year then ended; and
-	
the notes to the financial statements, which include a 
summary of significant accounting policies and other 
explanatory information. 
Basis for opinion 
We conducted our audit in accordance with Sri Lanka Auditing 
Standards (SLAuSs). Our responsibilities under those standards 
are further described in the Auditor’s Responsibilities for the 
Audit of the Financial Statements section of our report. 
We believe that the audit evidence we have obtained is 
sufficient and appropriate to provide a basis for our opinion. 
Independence
We are independent of the Company and the Group 
in accordance with the Code of Ethics for Professional 
Accountants issued by the Institute of Chartered Accountants 
of Sri Lanka (“CA Sri Lanka Code of Ethics”), and we have 
fulfilled our other ethical responsibilities in accordance with 
the Code of Ethics.
Key audit matters 
Key audit matters are those matters that, in our professional 
judgement, were of most significance in our audit of the 
financial statements of the current period. These matters 
were addressed in the context of our audit of the financial 
statements as a whole, and in forming our opinion thereon, 
and we do not provide a separate opinion on these matters.

158  Hela Apparel Holdings PLC | Annual Report 2022/23
Independent Auditors’ Report
The Group:
Key audit matter
How our audit addressed the Key audit matter
Impairment assessment of goodwill in subsidiaries
(Refer accounting policies in note 6(d) and note 20(q) in the 
financial statements)
As at 31 March 2023, the Group’s goodwill arising from its 
acquisition of subsidiaries was Rs. 11.9 Bn and comprise 21% of 
total assets. The Group is required to test goodwill for impairment 
annually based on the value-in-use of individual Cash Generating 
Units (‘CGUs’) to which goodwill is allocated, according to the 
requirements of the applicable accounting standard.
This annual impairment test was significant to our audit due to 
the following reasons:
•	 the goodwill balance of the Group as at 31 March 2023 is 
material to the financial statements; and 
•	 impairment assessment involves complex and subjective 
estimates and judgements by management about the future 
results of subsidiaries. These estimates include assumptions 
related to revenue growth rates, terminal growth rate and 
the discount rate. 
Our audit approach included the following procedures:
a)	 assessed the reliability of management’s forecasts by 
comparing actual performance against previous forecasts 
and projections;
b)	 checked the mathematical accuracy of the impairment 
testing and agreed relevant data to the latest approved 
management budget;
c)	 assessed the reasonability of the discount rate by 
benchmarking against publicly available data;
d)	 performed a sensitivity analysis by stress-testing the 
discount rate, terminal growth rate, EBITDA margin and 
revenue growth rates to test the extent of change in those 
assumptions that would be required for the goodwill to be 
impaired.
Based on our audit work performed, we found that 
the assumptions to be consistent and in line with our 
expectations.
The Group:
Key audit matter
How our audit addressed the Key audit matter
Valuation of freehold land and buildings 
(Refer accounting policies in note 6(a) and note 20(o) in the 
financial statements)
Management has estimated the fair value of the Group’s 
freehold land and buildings to be Rs. 458 Mn and Rs. 1.7 Bn 
respectively as at 31 March 2023 with a revaluation gain for 
the year recorded in the statement of comprehensive income 
of Rs. 963 Mn.
Independent external valuations have been obtained in respect 
of these land and buildings to support management’s estimates. 
The valuation of both freehold land and buildings were 
based on significant judgements and using a number of 
assumptions, including prices at which comparable properties 
are transacted, adjusted for differences in key attributes such 
as, property size, access to main roads, the physical condition 
of buildings and replacement cost per square foot.
The valuation of freehold land and building was considered a 
key audit matter due to the significant judgement involved in 
the estimation of fair values and the magnitude of the value of 
these assets in the financial statements.
Our audit approach included the following procedures:
a)	 assessed the experience and independence of the external 
valuer engaged by management; 
b)	 checked the completeness and accuracy of the data 
provided by management to the valuer; 
c)	 evaluated the appropriateness of the market approach 
for land and depreciated replacement cost for buildings 
adopted by the external valuer by comparing with 
methods generally used in practice for the valuation of 
similar properties; and
 d)	 assessed the reasonableness by referring to publicly 
available information on the real estate market such 
as range of prices for real estates of similar nature and 
location and estimates of replacement cost for buildings.  
Based on the work performed, we found that the valuation 
methodology and assumptions, used in the determination of 
fair value of both freehold land and building to be reasonable.

Annual Report 2022/23 | Hela Apparel Holdings PLC  159
The Group:
Key audit matter
How our audit addressed the Key audit matter
Valuation of inventory 
(Refer accounting policies in note 6(g) and note 20(j) in the 
financial statements)
As at 31 March 2023, the Group held Rs. 11.8 Bn of 
inventories which comprise of raw material, work in progress 
and finished goods and represented approximately 21% of 
Groups total assets. The inventories are held at the lower 
of cost and net realisable value and the determination of 
whether inventory will be realised for a value less than cost 
requires management to exercise judgement and apply 
assumptions. 
Management determined the level of write down required 
by estimating the future saleability of slow-moving inventory 
with reference to inventory aging and expected future market 
conditions.
Given the size of the inventory balance relative to the total 
assets of the Group and the estimates and judgements 
described above, the valuation of inventory required 
significant auditor attention.  
Our audit approach included the following procedures; 
a)	 for a sample of inventory items, the cost was agreed to 
supporting documentation to check the purchase cost 
and other costs necessary to bring the inventory to the 
warehouse;
b)	 reasonability of the overhead absorption rates were 
checked by agreeing the budgeted cost drivers to actual 
data on a sample basis;
c)	 attended the inventory verifications performed by 
management and tested a sample of items to check 
existence and identify any damaged and obsolete 
inventory, if any, that required a write down;
d)	 performed a recalculation of the inventory write down 
amounts made to individual inventory categories based on 
the inventory ageing reports;
e)	 checked the accuracy of the inventory residence periods 
in the aging reports by agreeing a sample of inventory 
items to movement records such as goods received notes; 
and
f)	 tested on a sample basis the reasonability of the net 
realisable value of finished goods and work in progress by 
agreeing to sales invoices subsequent to the year end. 
Based on our work performed, we found the estimates for 
arriving at the net realisable value of slow-moving inventory 
to be appropriate.
Other information 
Management is responsible for the other information. The 
other information comprises the information included in the 
Annual Report but does not include the financial statements 
and our auditor’s report thereon.
Our opinion on the financial statements does not cover 
the other information and we do not express any form of 
assurance conclusion thereon. 
In connection with our audit of the financial statements, our 
responsibility is to read the other information identified above 
and, in doing so, consider whether the other information is 
materially inconsistent with the financial statements or our 
knowledge obtained in the audit, or otherwise appears to be 
materially misstated. 
If, based on the work we have performed on the other 
information that we obtained prior to the date of this auditor’s 
report, we conclude that there is a material misstatement of 
this other information, we are required to report that fact. We 
have nothing to report in this regard. 
Responsibilities of management and those charged with 
governance for the financial statements
Management is responsible for the preparation of financial 
statements that give a true and fair view in accordance with 
Sri Lanka Accounting Standards and for such internal control

160  Hela Apparel Holdings PLC | Annual Report 2022/23
Independent Auditors’ Report
as management determines is necessary to enable the 
preparation of financial statements that are free from material 
misstatement, whether due to fraud or error. 
In preparing the separate/ consolidated financial statements, 
management is responsible for assessing the Company’s/ 
Group’s ability to continue as a going concern, disclosing, 
as applicable, matters related to going concern and using 
the going concern basis of accounting unless management 
either intends to liquidate the Company/ Group or to cease 
operations, or has no realistic alternative but to do so. 
Those charged with governance are responsible for 
overseeing the Company’s and the Group’s financial reporting 
process.
Auditor’s responsibilities for the audit of the financial 
statements
Our objectives are to obtain reasonable assurance about 
whether the financial statements as a whole are free from 
material misstatement, whether due to fraud or error, and to 
issue an auditor’s report that includes our opinion. Reasonable 
assurance is a high level of assurance, but is not a guarantee 
that an audit conducted in accordance with SLAuSs will always 
detect a material misstatement when it exists. Misstatements 
can arise from fraud or error and are considered material if, 
individually or in the aggregate, they could reasonably be 
expected to influence the economic decisions of users taken 
on the basis of these financial statements.
As part of an audit in accordance with SLAuSs, we exercise 
professional judgement and maintain professional scepticism 
throughout the audit. We also:
-	
Identify and assess the risks of material misstatement of 
the financial statements, whether due to fraud or error, 
design and perform audit procedures responsive to those 
risks, and obtain audit evidence that is sufficient and 
appropriate to provide a basis for our opinion. The risk 
of not detecting a material misstatement resulting from 
fraud is higher than for one resulting from error, as fraud 
may involve collusion, forgery, intentional omissions, 
misrepresentations, or the override of internal control. 
-	
Obtain an understanding of internal control relevant to 
the audit 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 
Company’s and the Group’s internal control. 
-	
Evaluate the appropriateness of accounting policies used 
and the reasonableness of accounting estimates and 
related disclosures made by management. 
-	
Conclude on the appropriateness of management’s use 
of the going concern basis of accounting and, based 
on the audit evidence obtained, whether a material 
uncertainty exists related to events or conditions that 
may cast significant doubt on the Company’s/ Group’s 
ability to continue as a going concern. If we conclude 
that a material uncertainty exists, we are required to draw 
attention in our auditor’s report to the related disclosures 
in the separate/ consolidated financial statements or, if 
such disclosures are inadequate, to modify our opinion. 
Our conclusions are based on the audit evidence obtained 
up to the date of our auditor’s report. However, future 
events or conditions may cause the Company/ Group to 
cease to continue as a going concern. 
-	
Evaluate the overall presentation, structure and content 
of the financial statements, including the disclosures, and 
whether the financial statements represent the underlying 
transactions and events in a manner that achieves fair 
presentation.
-	
Obtain sufficient appropriate audit evidence regarding 
the financial information of the entities or business 
activities within the Group to express an opinion on the 
consolidated financial statements. We are responsible for 
the direction, supervision and performance of the group 
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance 
regarding, among other matters, the planned scope and 
timing of the audit and significant audit findings, including 
any significant deficiencies in internal control that we identify 
during our audit.

Annual Report 2022/23 | Hela Apparel Holdings PLC  161
We also provide those charged with governance with a 
statement that we have complied with ethical requirements in 
accordance with the Code of Ethics regarding independence, 
and to communicate with them all relationships and other 
matters that may reasonably be thought to bear on our 
independence, and where applicable, related safeguards.
From the matters communicated with those charged with 
governance, we determine those matters that were of most 
significance in the audit of the financial statements of the 
current period and are therefore the key audit matters. We 
describe these matters in our auditor’s report unless law or 
regulation precludes public disclosure about the matter or 
when, in extremely rare circumstances, we determine that a 
matter should not be communicated in our report because 
the adverse consequences of doing so would reasonably be 
expected to outweigh the public interest benefits of such 
communication. 
Report on other legal and regulatory requirements 
As required by section 163 (2) of the Companies Act, No. 
07 of 2007, we have obtained all the information and 
explanations that were required for the audit and, as far as 
appears from our examination, proper accounting records 
have been kept by the Company. 
CHARTERED ACCOUNTANTS
CA Sri Lanka membership number [2857]
COLOMBO 
6 September 2023

162  Hela Apparel Holdings PLC | Annual Report 2022/23
Statement of Profit or Loss
(All amounts in Sri Lankan Rupees Thousands)
Group
Company
 Year ended 31 March 
 Year ended 31 March 
 Restated 
Notes
2023
2022
2023
2022
Revenue from contracts with customers
2
 95,302,705 
 56,179,623 
 -   
 -   
Cost of sales 
3(c)
 (83,716,438)
 (47,603,460)
 -   
 -   
Gross profit 
 11,586,267 
 8,576,163 
 -   
 -   
Distribution expenses
3(c)
 (3,955,959)
 (1,450,910)
 -   
 -   
Administrative expenses
3(c)
 (8,839,640)
 (5,230,583)
 (12,130)
 (59,420)
Net impairment loss on financial assets
10(c)
 (35,694)
 (132,718)
 -   
 -   
Other income 
3(a)
 426,459 
 93,286 
 -   
 -   
Other gains / (losses)
3(b)
 1,449,015 
 401,679 
 (802,694)
 (1,386,314)
Operating profit / (loss)
 630,448 
 2,256,917 
 (814,824)
 (1,445,734)
Finance income
 27,908 
 46,515 
 2,962 
 32,584 
Finance costs
 (4,013,956)
 (1,382,780)
 (59)
 (44)
Finance (costs) / income - net
3(e)
 (3,986,048)
 (1,336,265)
 2,903 
 32,540 
Share of loss of equity accounted investees, net of tax
12(d)
 (69,315)
 (91,516)
 -   
 -   
(Loss) / profit before income tax
 (3,424,915)
 829,136 
 (811,921)
 (1,413,194)
Income tax reversals / (expense)
4(a)
 92,467 
 (248,471)
 (800)
 (7,820)
(Loss) / profit for the year
 (3,332,448)
 580,665 
 (812,721)
 (1,421,014)
(Loss) / profit attributable to:
   Equity holders of the parent 
 (3,498,317)
 584,044 
 (812,721)
 (1,421,014)
   Non-controlling interests
 165,869 
 (3,379)
 -   
 -   
(Loss) / profit for the year
 (3,332,448)
 580,665 
 (812,721)
 (1,421,014)
(Loss) / earnings per share attributable to the equity 
holders of the Company
Basic (loss) / earnings per share
17(a)
 (2.67)
 0.54 
 (0.62)
 (1.32)
Diluted (loss) / earnings per share
17(b)
 (2.66)
 0.53 
 (0.62)
 (1.30)
The accounting polices and notes on pages 169 to 226 are an integral part of these financial statements.

Annual Report 2022/23 | Hela Apparel Holdings PLC  163
Statement of Comprehensive Income
(All amounts in Sri Lankan Rupees Thousands)
Group
Company
 Year ended 31 March 
 Year ended 31 March 
 Restated 
Notes
2023
2022
2023
2022
(Loss)/ profit for the year
 (3,332,448)
 580,665 
 (812,721)
 (1,421,014)
Other comprehensive income:
Other comprehensive income to be reclassified to profit or 
loss in subsequent periods
Currency translation differences
 1,376,346 
 4,219,336 
 714,461 
 2,344,389 
Other comprehensive income not to be reclassified 
to profit or loss in subsequent periods
Gain on revaluation of land and buildings
6(a)
 962,572 
 28,050 
 -   
 -   
Deferred income tax impact relating to revaluation
6(f)(ii)
 (332,863)
 (5,808)
 -   
 -   
Re-measurements of post-employment benefit 
obligations
6(h)
 (48,956)
 63,537 
 -   
 -   
Deferred income tax impact relating to re-measurements 
of post-employment benefit obligations
6(f)(ii)
 16,930 
 (7,485)
 -   
 -   
Other comprehensive income for the year, net of tax
 1,974,029 
 4,297,630 
 714,461 
 2,344,389 
Total comprehensive (loss)/ income for the year
 (1,358,419)
 4,878,295 
 (98,260)
 923,375 
The accounting polices and notes on pages 169 to 226 are an integral part of these financial statements.

164  Hela Apparel Holdings PLC | Annual Report 2022/23
Statement of Financial Position
Group
Company
 As at 31 March 
 As at 31 March 
 Restated 
Notes
2023
2022
2023
2022
ASSETS
Non-current assets
Property, plant and equipment                                  
6(a)
 9,001,940 
 6,554,602 
 -   
 -   
Right-of-use assets
6(b)
 2,742,171 
 740,821 
 -   
 -   
Investment property
6(c)
 559,700 
 450,000 
 -   
 -   
Intangible assets
6(d)
 11,957,563 
 10,914,668 
 -   
 -   
Deferred tax assets
6(f)
 1,128,036 
 182,650 
 -   
 -   
Investment in subsidiaries
12(a)
 -   
 -   
 6,853,540 
 2,982,526 
Investments in equity accounted investees
12(d)
 288,325 
 320,407 
 -   
 -   
Other financial assets at amortised costs
5(b)
 196 
 332 
 -   
 -   
Total non-current assets
 25,677,931 
 19,163,480 
 6,853,540 
 2,982,526 
Current assets
Inventories 
6(g)
 11,761,008 
 12,632,533 
 -   
 -   
Other assets
6(e)
 3,708,927 
 2,018,930 
 -   
 -   
Trade and other receivables	
5(a)
 9,844,991 
 14,380,441 
 14,701 
 2,849,679 
Income tax receivables
 49,378 
 11,465 
 -   
 -   
Derivative financial instruments
10(a)
 439,129 
 -   
 -   
 -   
Other financial assets at amortised cost
5(b)
 310,550 
 204,142 
 -   
 -   
Cash and cash equivalents 
5(c)
 3,906,000 
 5,244,151 
 8,804 
 1,115,481 
Total current assets
 30,019,983 
 34,491,662 
 23,505 
 3,965,160 
Total assets
 55,697,914 
 53,655,142 
 6,877,045 
 6,947,686 
EQUITY
Stated capital
7(a)
 5,754,575 
 5,730,537 
 5,754,575 
 5,730,537 
Other reserves
7(b)
 801,331 
 141,032 
 115,012 
 114,947 
Exchange equalisation reserve
7(d)
 6,120,591 
 4,725,105 
 3,259,771 
 2,545,311 
(Accumulated losses)/ retained earnings
7(c)
 (1,534,488)
 2,045,520 
 (2,300,839)
 (1,488,118)
Net assets per share attributable to owners of the 
Company
 11,142,009 
 12,642,194 
 6,828,519 
 6,902,677 
Non-controlling interests
12(c)
 316,391 
 150,522 
 -   
 -   
Total equity
 11,458,400 
 12,792,716 
 6,828,519 
 6,902,677 
LIABILITIES
Non-current liabilities
Borrowings
5(e)
 1,804,131 
 2,574,365 
 -   
 -   
Lease liabilities
6(b)
 2,134,142 
 350,258 
 -   
 -   
Deferred tax liabilities
6(f)
 1,613,979 
 575,488 
 -   
Employee benefit obligations
6(h)
 536,101 
 426,417 
 -   
 -   
Total non-current liabilities
 6,088,353 
 3,926,528 
 -   
 -   
(All amounts in Sri Lankan Rupees Thousands)

Annual Report 2022/23 | Hela Apparel Holdings PLC  165
Group
Company
 As at 31 March 
 As at 31 March 
 Restated 
Notes
2023
2022
2023
2022
Current liabilities
Trade and other payables
5(d)
 12,106,756 
 10,774,815 
 47,935 
 33,800 
Income tax liabilities
 24,231 
 38,305 
 590 
 11,207 
Lease liabilities
6(b)
 648,353 
 433,857 
 -   
 -   
Borrowings
5(e)
 25,371,821 
 25,688,921 
 1 
 2 
Total current liabilities
 38,151,161 
 36,935,898 
 48,526 
 45,009 
Total liabilities
 44,239,514 
 40,862,426 
 48,526 
 45,009 
Total equity and liabilities
 55,697,914 
 53,655,142 
 6,877,045 
 6,947,686 
Net assets per share attributable to owners of the 
Company
 8.51 
 9.65 
 5.21 
 5.27 
The accounting polices and notes on pages 169 to 226 are an integral part of these financial statements.	
	
	
	
	
I certify that these financial statements have been prepared and presented in compliance with the requirements of the 
Companies Act, No. 07 of 2007.	
	
	
	
	
	
	
	
	
	
B. R. S. Fernando
Group Chief Financial Officer
05 September 2023 	
	
	
Colombo		
	
	
	
	
	
	
	
	
	
	
	
	
	
The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed 
for and on behalf of the Board by.	
	
	
	
	
	
	
	
	
	
P. L. D. Jinadasa	
	
	
	
A R Rasiah	
Director	 	
	
	
	
Director
05 September 2023 	
	
	
05 September 2023 	
 	
	
Colombo 	
	
	
	
Colombo

166  Hela Apparel Holdings PLC | Annual Report 2022/23
Statement of Changes in Equity 
(All amounts in Sri Lankan Rupees Thousands)
Group
 Notes 
 Attributable to equity holders of the parent 
Non-
controlling
 interests
Total
 equity
Restated
Restated
 Stated
 capital  
(Accumulates
 losses)/
 retained 
earnings
Other
 reserves
Exchange
equalisation
 reserve
Total
Balance as at 1 April 2021
 1,723,899 
 1,313,835 
 86,065 
 505,769 
 3,629,568 
 340,114 
 3,969,682 
Profit for the year (restated)
 -   
 584,044 
 -   
 -   
 584,044 
 (3,379)
 580,665 
Other comprehensive income (restated)
 -   
 56,052 
 22,242 
 4,219,336 
 4,297,630 
 -   
 4,297,630 
Total comprehensive income for the year 
(restated)
 -   
 640,096 
 22,242 
 4,219,336 
 4,881,674 
 (3,379)
 4,878,295 
NCI on business combination
 -   
 126,089 
 -   
 -   
 126,089 
 (186,213)
 (60,124)
Issue of shares under employee share 
option plan
7(b)
 -   
 -   
 32,725 
 -   
 32,725 
 -   
 32,725 
Issue of ordinary shares
7(a)(i)
 3,972,138 
 -   
 -   
 -    3,972,138 
 -   
 3,972,138 
IPO transaction cost
7(a)(i)
 34,500 
 (34,500)
 -   
 -   
 -   
 -   
 -   
Balance as at 31 March 2022 (restated)
 5,730,537 
 2,045,520 
 141,032 
 4,725,105  12,642,194 
 150,522  12,792,716 
Balance as at 1 April 2022
 5,730,537 
 2,045,520 
 141,032 
 4,725,105  12,642,194 
 150,522  12,792,716 
(Loss)/ profit for the year
 -    (3,498,317)
 -   
 -    (3,498,317)
 165,869 
 (3,332,448)
Other comprehensive income
Currency translation differences
 -   
 -   
 -    1,376,346 
 1,376,346 
 -   
 1,376,346 
Gain on revaluation of land and buildings
6(a)
 -   
 -   
 962,572 
 -   
 962,572 
 -   
 962,572 
Deferred income tax impact relating to 
revaluation
6(f)(ii)
 -   
 -   
 (332,863)
 -   
 (332,863)
 -   
 (332,863)
Re-measurements of post-employment 
benefit obligations
6(h)
 -   
 (48,956)
 -   
 -   
 (48,956)
 -   
 (48,956)
Deferred income tax impact relating to 
re-measurements of post-employment 
benefit obligations
6(f)(ii)
-
 16,930 
 -   
 -   
 16,930 
 -   
 16,930 
Total comprehensive income for the year
- (3,530,343)
629,709
1,376,346 (1,524,288)
165,869
(1,358,419)
Transfers from translation reserve to 
retained earnings
 -   
 (19,140)
 -   
 19,140 
 -   
 -   
 -   
Transfers from retained earnings to other 
reserves
7(c)
 -   
 (30,525)
 30,525 
 -   
 -   
 -   
 -   
Issue of shares under employee share 
option plan
7(a)(i)
 24,038 
 -   
 (24,038)
 -   
 -   
 -   
 -   
Employee share option plan - value of 
employee services
7(b)
 -   
 -   
 24,103 
 -   
 24,103 
 -   
 24,103 
Balance as at 31 March 2023
 5,754,575  (1,534,488)
 801,331  6,120,591  11,142,009 
 316,391  11,458,400 
The accounting polices and notes on pages 169 to 226 are an integral part of these financial statements.

Annual Report 2022/23 | Hela Apparel Holdings PLC  167
Company
 Notes
 Stated
 capital 
Accumulated
 losses
Share based
 payments
Exchange
 equalisation
 reserve
Total
Balance as at 1 April 2021
 1,723,899 
 (32,604)
 82,222 
 200,922 
 1,974,439 
Loss for the year
 -   
 (1,421,014)
 -   
 -   
 (1,421,014)
Other comprehensive income
 -   
 -   
 -   
 2,344,389 
 2,344,389 
Total comprehensive income for the 
year
 -   
 (1,421,014)
 -   
 2,344,389 
 923,375 
Employee share option plan - value of 
employee services
7(b)
 -   
 -   
 32,725 
 -   
 32,725 
Issue of ordinary shares
7(a)(i)
 3,972,138 
 -   
 -   
 -   
 3,972,138 
IPO transaction cost
 34,500 
 (34,500)
 -   
 -   
 -   
Balance as at 31 March 2022
 5,730,537 
 (1,488,118)
 114,947 
 2,545,311 
 6,902,677 
Balance as at 1 April 2022
 5,730,537 
 (1,488,118)
 114,947 
 2,545,311 
 6,902,677 
Loss for the year
 -   
 (812,721)
 -   
 -   
 (812,721)
Other comprehensive income
 -   
 -   
 -   
 714,461 
 714,461 
Total comprehensive (loss) for the year
 -   
 (812,721)
 -   
 714,460 
 (98,261)
Employee share option plan - value of 
employee services
7(b)
 -   
 -   
 24,103 
 -   
 24,103 
Issue of shares under employee share 
option plan
7(a)(i)
 24,038 
 -   
 (24,038)
 -   
 -   
Balance as at 31 March 2023
5,754,575
(2,300,839)
115,012
3,259,771
6,828,519
The accounting polices and notes on pages 169 to 226 are an integral part of these financial statements.

168  Hela Apparel Holdings PLC | Annual Report 2022/23
Statement of Cash Flow
(All amounts in Sri Lankan Rupees Thousands)
Group
Company
 Year ended 31 March 
 Year ended 31 March 
 Restated 
Notes
2023
2022
2023
2022
Cash flows from operating activities 
Cash generated from/ (used in) operations
8(a)
 9,352,465 
 (2,912,658)
 2,558,485 
 (3,391,128)
Retirement benefit obligations paid
6(h)
 (73,272)
 (47,574)
 -   
 -   
Income tax paid
 (39,941)
 (24,244)
 (7,965)
 (30)
Interest paid
3(e)
 (4,013,956)
 (1,382,780)
 (59)
 (44)
Net cash inflow/ (outflow) from operating activities
 5,225,296 
 (4,367,256)
 2,550,461 
 (3,391,202)
Cash flows from investing activities
Purchase of property, plant and equipment
6(a)
 (2,637,878)
 (1,658,229)
 -   
 -   
Purchase of intangible assets
6(d)
 (29,732)
 (14,129)
 -   
 -   
Proceeds from sale of property, plant and equipment
 599,065 
 1,471 
 -   
 -   
Proceeds from sale of intangible assets
 -   
 225 
 -   
 -   
Interest received
3(e)
 27,908 
 46,515 
 2,962 
 32,584 
Investment made in fixed deposits
 (94,277)
 -   
 -   
Acquisition of non controlling interest 
 -   
 (60,124)
 -   
 -   
Investments made in subsidiaries
 -   
 (311,622)
 (3,891,709)
 -   
Net cash (outflow) / inflow from investing activities
 (2,134,914)
 (1,995,893)
 (3,888,747)
 32,584 
Cash flows from financing activities
Proceeds from borrowings
 112,561,662 
 56,523,569 
Repayment of borrowings
 (116,383,507)
 (52,784,116)
 23,635 
 3,972,138 
Net proceeds from share issue 
7(a)(i)
 23,635 
 3,972,138 
Principal elements of lease payments
 (987,247)
 (234,799)
 -   
 -   
Net cash (outflow)/ inflow from financing activities
 (4,785,457)
 7,476,792 
 23,635 
 3,972,138 
Net (decrease)/ increase in cash and cash equivalents
 (1,695,075)
 1,113,643 
 (1,314,651)
 613,520 
Cash and cash equivalents at the beginning of the year
 5,023,132 
 1,801,305 
 1,115,479 
 1,673 
Currency translation difference
 573,068 
 2,108,184 
 207,975 
 500,286 
Cash and cash equivalents at the end of the year
 5(c) 
 3,901,127 
 5,023,132 
 8,803 
 1,115,479 
The accounting polices and notes on pages 169 to 226 are an integral part of these financial statements.

Annual Report 2022/23 | Hela Apparel Holdings PLC  169
Contents of the Notes to 
the Financial Statements 
Note No.
Note
Page
1
Operating segments 
170
2
Revenue from contract with customers
171
3
Other income and expense items
171
4
Income tax expense
174
5
Financial assets and liabilities
175
6
Non financial assets and liabilities
177
7
Equity
193
8
Cash flow information
197
9
Critical estimates, judgements and errors
198
10
Financial risk management
201
11
Capital management
206
12
Interests in other entities
207
13
Contingent liabilities 
210
14
Commitments
210
15
Events after the reporting period
210
16
Related party transactions
211
17
(Loss) / earnings per share
212
18
General information
213
19
Going concern
213
20
Summary of significant accounting policies
213
21
Impact on economic crisis
225

170  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)	
1 	
OPERATING SEGMENTS
(i)	
Description of segments and principal activities 
	
The Group's internal organisation and management is structured based on segments which are determined based on 
the Group's geographical spread of operations. The operating segments represent the business structure. The group has 
now organised its business units into two reportable operating segments based on their geographical spread as follows:
(ii)	
Summarised statement of profit or loss	
	
	
	
	
	
Sri Lankan Region
African Region
Consolidated
2023
2022
2023
2022
2023
2022
Revenue
 82,057,697 
 47,692,673 
 13,245,007 
 8,486,950 
 95,302,704 
 56,179,623 
Gross profit
 10,038,431 
 7,798,963 
 1,547,837 
 777,200 
 11,586,268 
 8,576,163 
Depreciation and amortisation
 (1,815,023)
 (743,998)
 (133,125)
 (82,326)
 (1,948,148)
 (826,324)
Operating expenses
 (11,495,371)
 (6,186,735)
 (1,300,228)
 (494,758)  (12,795,599)
 (6,681,493)
Interest income
 27,908 
 46,515 
 -   
 -   
 27,908 
 46,515 
Interest expense
 (3,374,184)
 (1,197,394)
 (639,772)
 (185,386)
 (4,013,956)
 (1,382,780)
Operating profit
 248,642 
 1,887,800 
 381,806 
 369,117 
 630,448 
 2,256,917 
(Loss)/ profit before taxation
 (3,166,943)
 645,405 
 (257,973)
 183,731 
 (3,424,916)
 829,136 
Income tax release/ (charge)
 92,467 
 (248,471)
 -   
 -   
 92,467 
 (248,471)
(Loss)/ profit for the year
 (3,074,475)
 396,934 
 (257,973)
 183,731 
 (3,332,448)
 580,665 
(iii)	
Summarised statement of financial position
Sri Lankan Region
African Region
Consolidated
2023
2022
2023
2022
2023
2022
ASSETS
Non-current assets
 24,727,438 
 18,204,955 
 950,493 
 958,525 
 25,677,931 
 19,163,480 
Current assets
 22,891,071 
 28,398,585 
 7,128,912 
 6,093,077 
 30,019,983 
 34,491,662 
Total assets
 47,618,509 
 46,603,540 
 8,079,405 
 7,051,602 
 55,697,914 
 53,655,142 
LIABILITIES
Non-current liabilities
 5,909,493 
 3,759,648 
 178,860 
 166,880 
 6,088,353 
 3,926,528 
Current liabilities
 32,084,315 
 28,953,709 
 6,066,846 
 7,982,189 
 38,151,161 
 36,935,898 
Total liabilities
 37,993,808 
 32,713,357 
 6,245,706 
 8,149,069 
 44,239,514 
 40,862,426 
(iv)	
Segment assets
Sri Lankan Region
African Region
Consolidated
2023
2022
2023
2022
2023
2022
Segment assets
Additions to property, plant 
and equipments
 2,637,878 
 1,654,131 
 -   
 4,098 
 2,637,878 
 1,658,229 
Additions to right of use 
assets
 3,074,072 
 331,669 
 -   
 -   
 3,074,072 
 331,669 
Additions to intangible assets
 29,732 
 14,129 
 -   
 -   
 29,732 
 14,129 
 5,741,682 
 1,999,929 
 -   
 4,098 
 5,741,682 
 2,004,027

Annual Report 2022/23 | Hela Apparel Holdings PLC  171
2	
REVENUE FROM CONTRACTS WITH CUSTOMERS	
	
	
	
	
	
Group
Company
2023
2022
2023
2022
Export revenue
 93,549,594 
 55,324,166 
 -   
 -   
Local revenue
 1,506,124 
 234,314 
 -   
 -   
Sub-contracting revenue 
 246,987 
 621,143 
 -   
 -   
 95,302,705 
 56,179,623 
 -   
 -   
(i)	
Revenue recognition	
	
Export revenue
	
The Group manufactures and exports a range of garments. Revenue is recognised at the point in time when the Group 
satisfies a performance obligation by delivering goods to the customer. A product is transferred when the customer 
obtains control of that product, based on the incoterms. The Group determines the transaction price which it expects 
to be entitled to in return for providing the promised obligation to the customer based on the committed contractual 
amounts, net of sales taxes and discounts. Payment of the transaction price is due within the credit period as per the 
terms mentioned in the agreement.
	
Local revenue
	
The Group sells a range of waste items in the local market. Revenue is recognised at the point in time, when the control 
is passed at the collection of goods by the customer. Payment of the transaction price is due immediately when the 
customer purchases the goods.
	
Sub-contracting revenue 
	
The Group provides subcontract manufacturing to customers based on agreements. Revenue is recognised at the point 
in time when the respective performance obligations in the contracts are completed and the payments remain probable. 
Payment of the transaction price is due within the credit period as per terms mentioned in the agreement.
3	
OTHER INCOME AND EXPENSE ITEMS	
(a)	
Other income	
	
	
	
	
Group
Company
2023
2022
2023
2022
Other Income
 426,459 
 93,286 
 - 
 -   
 426,459 
 93,286 
 -   
 -

172  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
3	
OTHER INCOME AND EXPENSE ITEMS	
(b)	
Other gains / (losses)  	
	
	
	
	
Group
Company
Notes
2023
2022
2023
2022
Net foreign exchange gains/ (losses)
 996,515 
 444,679 
 (802,694)
 (1,386,314)
Fair value gain on derivatives
 10(a)(iii) 
 439,129 
 -   
Net gains on disposal of property, plant and 
equipment
 444 
 226 
 -   
 - 
Gain/ (loss) on the fair valuation of investment 
property
 6(c) 
 110,025 
 (43,226)
 -   
 - 
Other losses
 (97,098)
 -   
 -   
 - 
 1,449,015 
 401,679 
 (802,694)
 (1,386,314)
(c)	
Breakdown of expenses by nature 	
	
	
	
	
Group
Company
Notes
2023
2022
2023
2022
Auditors' remuneration 
  - Audit fees
 25,330 
 16,690 
 4,361 
 3,828 
  - Non-audit fees
 215 
 5,692 
 -   
 -   
Raw materials and consumables used
 57,354,148 
 32,568,149 
 -   
 -   
Depreciation of property, plant and equipment
6(a)
 950,064 
 507,220 
 -   
 -   
Amortisation of right of use assets 
6(b)
 979,584 
 304,299 
 -   
 -   
Amortisation of intangible assets 
6(d)
 18,500 
 14,805 
 -   
 961 
Professional charges
 692,962 
 133,363 
 1,572 
 43,178 
Directors' and key management personnel 
remuneration and emoluments
539,793
 273,820 
 -   
 -   
Staff costs
3(d)
 9,440,663 
 9,407,473 
 -   
 -   
Repairs and maintenance expenditure
 259,883 
 198,172 
 -   
 -   
Insurance fees
 49,853 
 136,677 
 4,074 
 2,375 
Sub-contract/ service charges
 11,801,984 
 3,195,943 
 -   
 -   
Travelling and advertising expenses
 706,089 
 269,399 
 295 
 8,981 
Rent expenses
 566,185 
 332,915 
 -   
 -   
Bank charges
 165,841 
 136,145 
 25 
 57 
Import charges
 344,328 
 2,170,449 
 -   
 -   
Export charges
 853,119 
 969,676 
 -   
 -   
Provision made/(reversed) for inventories 
during the year
 6(g)(i) 
 1,365,165 
 (408,835)
 -   
 -   
Other expenses
 10,423,876 
 4,075,283 
 6,164 
 3,868 
Total cost of sales, distribution expenses and 
administrative expenses
 96,512,037 
 54,284,953 
 12,130 
 59,420 
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  173
(d)	
Staff costs		
	
	
	
Group
Company
Notes
2023
2022
2023
2022
Wages, salaries and bonus
 8,533,863 
 8,518,662 
 -   
 -   
Defined contribution plans
 747,670 
 585,750 
 -   
 -   
Defined benefit obligations 
6(h)
 135,027 
 109,475 
 -   
 -   
Share based payment expenses
7(b)
  24,103    
 32,725 
 -   
 -   
Other staff related costs
 -
 160,861 
 -   
 -   
Total of staff costs
 9,440,663 
 9,407,473 
 -   
 -   
No of employees of the Group
 17,759 
 19,430 
(e)	
Finance income and costs  	
	
	
	
	
Group
Company
Notes
2023
2022
2023
2022
Finance income
 - Interest income
(i)
 27,908 
 46,515 
 2,962 
 32,584 
Finance income
 27,908 
 46,515 
 2,962 
 32,584 
Finance costs
 - Bank overdraft interest
 (231,782)
 (35,070)
 (59)
 (44)
 - Bank loan interest
 (734,667)
 (410,213)
 -   
 -   
 - Bill discounting charges
 (1,271,607)
 (364,381)
 -   
 -   
 - Finance lease interest
6(b)(ii)
 (325,503)
 (63,323)
 -   
 -   
 - TR loan interest
 (1,418,854)
 (485,467)
 -   
 -   
 - Other bank charges
 (31,543)
 (24,326)
 -   
 -   
Finance costs  
 (4,013,956)
 (1,382,780)
 (59)
 (44)
 Finance (costs)/ income - net 
 (3,986,048)
 (1,336,265)
 2,903 
 32,540 
(i)	
Interest income
	
Interest income is presented as finance income where it is earned from financial assets that are held for cash 
management purposes.

174  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
4	
INCOME TAX EXPENSE	
(a)	
Income tax 
	
The rise of the Sri Lankan corporation tax rate from 24% to 30% was subsequently enacted on 19 December 2022 and 
was effective from 1 October 2022. As a result, the relevant deferred tax balances have been remeasured. The impact 
of the change in tax rate has been recognised in tax expense in profit or loss, except to the extent that it relates to items 
previously recognised outside profit or loss.
Group
Company
2023
2022
2023
2022
Current tax on profits for the year
 209,511 
 43,070 
 800 
 7,820 
Deferred tax charged during the year
 59,693 
 222,045 
 -   
 -   
Adjustments for tax of prior periods
 (45,738)
 (3,351)
 -   
 -   
Income tax expense
 223,466 
 261,764 
 800 
 7,820 
Income tax (reversals)/ expense
     to profit or loss
 (92,467)
 248,471 
 800 
 7,820 
     to other comprehensive income
 315,933 
 13,293 
 -   
 -   
Income tax expense
 223,466 
 261,764 
 800 
 7,820 
b)	
Numerical reconciliation of income tax expense to prima facie tax payable  		
	
	
	
Group
Company
2023
2022
2023
2022
(Loss)/ profits before income tax expense
 (3,424,915)
 829,136 
 (811,921)
 (1,413,194)
Tax at the applicable tax rates
 (367,823)
 43,070 
 (219,218)
 7,820 
Tax effect of :
 Income not subject to tax
 (911,769)
 -   
 (423,453)
 -   
 Income subject to tax
 22,840 
 -   
 -   
 -   
 Expenses not deductible for tax purpose
 2,051,110 
 -   
 643,471 
 -   
 Expenses deductible for tax purpose
 (517,196)
 -   
 -   
 -   
 Set-off against losses
 (67,651)
 -   
 -   
 -   
 Adjustments for current tax of prior periods
 (45,738)
 (3,351)
 -   
 -   
Deferred tax expense for the year
 59,693 
 222,045 
 -   
 -   
Income tax expense
 223,466 
 261,764 
 800 
 7,820 
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  175
5 	
FINANCIAL ASSETS AND LIABILITIES
	
This note provides information about the Group's and the Company's financial instruments, including:
-	
an overview of all financial instruments held by the Group and the Company
-   	specific information about each type of financial instrument
-  	 accounting policies
-   	information about determining the fair value of the instruments, including judgements and estimation uncertainty 
involved.
Notes
Group
Company
2023
2022
2023
2022
Financial assets
Financial assets at amortised cost
Trade and other receivables
 5(a) 
 9,844,991 
 14,380,441 
 14,701 
 2,849,679 
Other financial assets at amortised cost
 5(b) 
 310,746 
 204,474 
 -   
 -   
Cash and cash equivalents
 5(c) 
 3,906,000 
 5,244,151 
 8,804 
 1,115,481 
Financial assets at fair value through profit  
or loss
Derivative financial instruments
 10(a)
 439,129 
 -   
 -   
 -   
 14,500,866 
 19,829,066 
 23,505 
 3,965,160 
Notes
Group
Company
2023
2022
2023
2022
Financial liabilities
Liabilities at amortised cost
Trade and other payables
 12,106,756 
 10,774,815 
 47,935 
 33,800 
Borrowings
 27,175,952 
 28,263,286 
 1 
 2 
Lease liabilities
 2,782,495 
 784,115 
 -   
 -   
 42,065,203 
 39,822,216 
 47,936 
 33,802 
(a)	
Trade and other receivables  		
	
	
	
Group
Company
Notes
2023
2022
2023
2022
Trade receivables
 9,174,667 
 12,220,902 
 -   
 -   
Provision for impairment 
10(c)(ii)
 (285,520)
 (293,180)
 -   
 -   
Non trade receivables from related parties  
 329,229 
 - 
 14,701 
 2,849,679 
Provision for impairment - non trade 
receivables from related parties
 (69,059)
 - 
 - 
 - 
Other receivables
 846,007 
 2,719,726 
 - 
 - 
Provision for impairment - other receivables
 (150,333)
 (267,007)
 - 
 - 
 9,844,991 
 14,380,441 
 14,701 
 2,849,679 
(i)	
Classification as trade receivables
	
Trade receivables are amounts due from customers for goods sold in the ordinary course of business. Trade receivables 
are generally due for settlement within 45 days and therefore classified as current. The Group's impairment and other 
accounting policies for trade receivables are outlined in notes 10(c) and 20(h) respectively.

176  Hela Apparel Holdings PLC | Annual Report 2022/23
5 	
FINANCIAL ASSETS AND LIABILITIES CONTD.
(a)	
Trade and other receivables contd.
(ii)	
Fair values of trade receivables 
	
Due to the short-term nature of the current receivables, their carrying amount is assumed to be the same as their fair 
value.
(iii)	
Impairment and risk exposure	
	
Information about the impairment of trade and other receivables, their credit quality and the Group’s exposure to credit 
risk, foreign currency risk and interest rate risk can be found in note 10 (c).
(b)	
Other financial assets at amortised cost
	
The Group classifies its financial assets as at amortised cost only if both of the following criteria are met:
-	
the asset is held within a business model whose objective is to collect the contractual cash flows, and
-	
the contractual terms give rise to cash flows that are solely payments of principal and interest.
(i) 	
Classification of financial assets at amortised cost
	
Group
	
Financial assets at amortised cost include the following:
2023
2022
Current
Non-current
Total
Current
Non-current
Total
Fixed deposits
 310,550 
 196 
 310,746 
 204,142 
 332 
 204,474 
 310,550 
 196 
 310,746 
 204,142 
 332 
 204,474 
(c)	
Cash and cash equivalents
	
Cash at bank consists of current accounts and savings accounts balances held in Foreign Currency Banking Units (FCBU) 
and local banks. See note 20(g) for the Group's other accounting policies on cash and cash equivalents.	
Group
Company
2023
2022
2023
2022
Cash at bank and in hand
 2,936,008 
 2,777,196 
 8,078 
 16,497 
Deposits at call
 969,903 
 1,368,593 
 637 
 622 
Money market accounts
 89 
 1,098,362 
 89 
 1,098,362 
 3,906,000 
 5,244,151 
 8,804 
 1,115,481 
(i)	
Reconciliation to cash flow statement
	
The above figures reconcile to the amount of cash shown in the statement of cash flows at the end of the financial year 
as follows:	
Group
Company
Notes
2023
2022
2023
2022
Cash and cash equivalents
5(c)
 3,906,000 
 5,244,151 
 8,804 
 1,115,481 
Bank overdraft 
5(e)
 (4,873)
 (221,019)
 (1)
 (2)
Cash and cash equivalents at end of the year
 3,901,127 
 5,023,132 
 8,803 
 1,115,479 
	 	
	
	
	
	
	
	
	
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  177
(d)	
Trade and other payables	
Group
Company
Notes
2023
2022
2023
2022
Trade payables
 7,452,642 
 5,697,985 
 -   
 -   
Payable to related parties 
16(d)
 38,219 
 -   
 16,802 
 1,540 
Accrued expenses 
 2,806,443 
 2,044,818 
 7,225 
 8,346 
Other payables
 1,809,452 
 3,032,012 
 23,908 
 23,914 
 12,106,756 
 10,774,815 
 47,935 
 33,800 
	
Trade payables are unsecured and are usually paid within 60 days of recognition.
	
The carrying amounts of trade and other payables are assumed to be the same as their fair values, due to their short-
term nature.
(e)	
Borrowings
Group
Company
2023
2022
2023
2022
Non-current
Bank borrowings
 1,804,131 
 2,574,365 
 -   
 -   
 1,804,131 
 2,574,365 
 -   
 -   
Current
Bank borrowings
 23,681,427 
 25,467,902 
 -   
 -   
Shareholder loan
 1,685,521 
 -   
 -   
 -   
Bank overdraft
 4,873 
 221,019 
 1 
 2 
 25,371,821 
 25,688,921 
 1 
 2 
Total borrowings
 27,175,952 
 28,263,286 
 1 
 2 
(i)	
Fair value
	
For the majority of the borrowings, the fair values are not materially different to their carrying amounts, since the interest 
payable on those borrowings is either close to current market rates or the borrowings are of a short-term nature.
(ii)	
Risk exposures
	
Details of the Company’s and the Group's exposure to risks arising from current and non-current borrowings are set out 
in note 10 (b).
6 	
NON-FINANCIAL ASSETS AND LIABILITIES
	
This note provides information about the Group's and the Company's non-financial assets and liabilities, including:
-	
 specific information about each type of non-financial asset and non-financial liability
-	
property, plant and equipment (note 6(a))	
-	
leases (note 6(b))	
-	
investment properties (note 6(c))	
-	
intangible assets (note 6(d))
-	
other assets (note 6(e))	
-	
deferred income tax liabilities (note 6(f))
-	
inventories (note 6(g))	
-	
retirement benefit obligations (note 6(h))
-	
accounting policies (note 20)	
-	
information about determining the fair value of the assets and liabilities, including judgements and estimation 
uncertainty involved (note 9)

178  Hela Apparel Holdings PLC | Annual Report 2022/23
6 	
NON-FINANCIAL ASSETS AND LIABILITIES CONTD.
(a) 	
Property, plant and equipment
Group
Freehold
 land
Freehold 
building
Leasehold
 building
Plant and
 machinery
Motor
 vehicles
 Office 
equipment 
As at 31 March 2021
Cost or fair value
 340,958 
 1,587,671 
 219,073 
 2,696,133 
 15,498 
 303,412 
Accumulated depreciation
 -   
 (315,099)
 (60,521)
 (1,459,022)
 (15,498)
 (216,990)
Net book amount
 340,958 
 1,272,572 
 158,552 
 1,237,111 
 -   
 86,422 
Year ended 31 March 2022
Opening net book amount
 340,958 
 1,272,572 
 158,552 
 1,237,111 
 -   
 86,422 
Additions
 -   
 40,284 
 202,694 
 515,964 
 -   
 23,092 
Transfer from work-in-progress
 -   
 2,901 
 23,265 
 204,006 
 -   
 -   
Reclassification
 -   
 (165,390)
 249,979 
 (84,589)
 -   
 -   
Revaluation surplus
 5,000 
 23,050 
 -   
 -   
 -   
 -   
Disposals
 -   
 -   
 -   
 (6,791)
 -   
 (1,153)
Depreciation on disposals
 -   
 -   
 -   
 3,107 
 -   
 1,046 
Depreciation charge for the year
 -   
 (56,292)
 (58,294)
 (233,350)
 -   
 (18,734)
Exchange equalisation reserve
 57,926 
 571,372 
 54,288 
 649,812 
 -   
 (10,880)
Closing net book amount
 403,884 
 1,688,497 
 630,484 
 2,285,270 
 -   
 79,793 
As at 31 March 2022
Cost or fair value
 403,884 
 2,059,888 
 749,299 
 3,974,535 
 15,498 
 314,471 
Accumulated depreciation
 -   
 (371,391)
 (118,815)
 (1,689,265)
 (15,498)
 (234,678)
Net book amount
 403,884 
 1,688,497 
 630,484 
 2,285,270 
 -   
 79,793 
Year ended 31 March 2023
Opening net book amount
 403,884 
 1,688,497 
 630,484 
 2,285,270 
 -   
 79,793 
Additions
 -   
 235,543 
 223,473 
 437,993 
 -   
 36,479 
Transfer from work-in-progress
 -   
 -   
 4,518 
 127,527 
 -   
 -   
Revaluation surplus
 16,339 
 946,233 
 -   
 -   
 -   
 -   
Reclassification
 -    (1,260,217)
 1,260,217 
 -   
 -   
 -   
Disposals
 -   
 -   
 -   
 (268,342)
 -   
 -   
Depreciation on disposals
 -   
 -   
 -   
 32,811 
 -   
 -   
Depreciation charge for the year
 -   
 (33,843)
 (181,907)
 (477,482)
 -   
 (33,257)
Exchange equalisation reserve
 38,277 
 126,987 
 (44,543)
 207,464 
 -   
 7,297 
Closing net book amount
 458,500 
 1,703,200 
 1,892,242 
 2,345,241 
 -   
 90,312 
As at 31 March 2023
Cost or fair value
 458,500 
 2,108,434 
 2,192,964 
 4,479,177 
 15,498 
 358,247 
Accumulated depreciation
 -   
 (405,234)
 (300,722)
 (2,133,936)
 (15,498)
 (267,935)
Net book amount
 458,500 
 1,703,200 
 1,892,242 
 2,345,241 
 -   
 90,312 
	
Property, plant and equipment include fully depreciated assets still in use with a cost of LKR 3,375,113 
	
as at 31 March 2023 (2022 - LKR 2,936,314).	 	
	
	
	
	
Property, plant and equipment worth of LKR 867,911 (2022: LKR 1,006,538) has been pledged as  
securities by the Group.	
	
	
	
	
	
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  179
Factory
 equipment
Air
 conditioning 
equipment
Electrical
 installations
Containers
Furniture
 and fittings
Computer
 hardware and 
communication
 equipment
Capital
 work-in-
progress
Total
 440,253 
 72,954 
 619,396 
 1,481 
 434,774 
 269,409 
 42,339 
 7,043,351 
 (397,292)
 (65,821)
 (369,129)
 (1,481)
 (295,206)
 (244,067)
 -   
 (3,440,126)
 42,961 
 7,133 
 250,267 
 -   
 139,568 
 25,342 
 42,339 
 3,603,225 
 42,961 
 7,133 
 250,267 
 -   
 139,568 
 25,342 
 42,339 
 3,603,225 
 69,635 
 3,255 
 54,694 
 -   
 57,367 
 44,725 
 646,519 
 1,658,229 
 -   
 -   
 46,008 
 -   
 25,569 
 2,715 
 (212,451)
 92,013 
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 28,050 
 (145)
 -   
 (13,511)
 -   
 -   
 -   
 -   
 (21,600)
 145 
 -   
 11,843 
 -   
 -   
 -   
 -   
 16,141 
 (29,677)
 (3,628)
 (47,598)
 -   
 (28,529)
 (31,118)
 -   
 (507,220)
 9,579 
 2,011 
 105,073 
 -   
 52,714 
 43,643 
 150,226 
 1,685,764 
 92,498 
 8,771 
 406,776 
 -   
 246,689 
 85,307 
 626,633 
 6,554,602 
 519,322 
 78,220 
 811,660 
 1,481 
 570,424 
 360,492 
 626,633 
 10,485,807 
 (426,824)
 (69,449)
 (404,884)
 (1,481)
 (323,735)
 (275,185)
 -   
 (3,931,205)
 92,498 
 8,771 
 406,776 
 -   
 246,689 
 85,307 
 626,633 
 6,554,602 
 92,498 
 8,771 
 406,776 
 -   
 246,689 
 85,307 
 626,633 
 6,554,602 
 51,601 
 291 
 78,892 
 -   
 160,793 
 167,069 
 1,245,744 
 2,637,878 
 13,115 
 -   
 16,194 
 -   
 -   
 2,350 
 (163,704)
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 962,572 
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 (134,907)
 -   
 (80,932)
 (20,262)
 (126,989)
 (631,432)
 -   
 -   
 -   
 -   
 -   
 -   
 -   
 32,811 
 (96,511)
 (2,735)
 (66,240)
 -   
 (11,293)
 (46,797)
 -   
 (950,064)
 11,226 
 1,021 
 46,749 
 -   
 16,743 
 (502)
 (15,146)
 395,573 
 71,929 
 7,348 
 347,464 
 -   
 332,000 
 187,166 
 1,566,538 
 9,001,940 
 595,264 
 79,532 
 818,588 
 1,481 
 667,028 
 509,148 
 1,566,538 
 13,850,399 
 (523,335)
 (72,184)
 (471,124)
 (1,481)
 (335,028)
 (321,982)
 -   
 (4,848,459)
 71,929 
 7,348 
 347,464 
 -   
 332,000 
 187,166 
 1,566,538 
 9,001,940

180  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
(All amounts are shown in Sri Lankan Rupees Thousand unless otherwise stated)	
6 	
NON-FINANCIAL ASSETS AND LIABILITIES CONTD.
(a) 	
Property plant and equipment Contd.
	
Information on revalued freehold land and buildings of the Group – extents and locations
Location	
Ownership
Land/
 Building
No of
 buildings
Extent
Basis Used
Value
(LKR '000) 
Uhumeeya
Jointly owned by Jinadasa 
Bennett (Private) Limited 
and Foundation Bennett 
(Private) Limited
Building
12
54,219 sq.ft 
Replacement cost
 523,200 
Uhumeeya
Land
-
3A-0R-23.50P
Market Value
 138,500 
Palapathwala
Hela Clothing (Private) 
Limited
Building
8
96,972 sq. ft
Replacement cost
 1,180,000 
Palapathwala
Land
-
2A-2R-00.00P
Market Value
 320,000 
(i)	
Revaluation of freehold land and buildings
	
The valuation of the land and buildings located at Uhumeeya, which is jointly owned by Jinadasa Bennett (Private) 
Limited and Foundation Bennett (Private) Limited (subsidiaries of the Group) and Palapathwala, which is owned by Hela 
Clothing (Private) Limited (a subsidiary of the Group) was performed by an independent valuer (W.D.P. Rupananda - 
Chartered Valuation Surveyor) to determine the fair value of lands and buildings as at 31 March 2023. The effective 
date of revaluation was 31 March 2023.
	
Land and buildings are recognised at fair value based on periodic, but at least every 3-5 years, valuations by the external 
independent valuer, less subsequent depreciation for buildings. A revaluation surplus is credited to other reserves in 
shareholders’ equity. All other property, plant and equipment is recognised at historical cost less depreciation.
(ii)	
Significant unobservable inputs and relationships to fair value
	
The following table shows that valuation techniques used in measuring the land and buildings as well as significant 
unobservable inputs used.
Location 
of 
property	
Method of 
valuation	
Extent 
Range of 
estimates for  
unobservable  
inputs
Total 
revalued
 amounts
(LKR '000)
Significant
unobservable
valuation 
inputs
Relationship of 
unobservable inputs 
to fair value
Uhumeeya
Land Market 
Approach 
(price per 
perch of land)
3A-0R-
23.50P
LKR 275,000 
per perch
 138,500 Price per perch 
of land
The estimated fair value would increase/ (decrease) if: 
price per perch is higher/ (lower).	
Building 
DRC value 
(replacement 
cost)
54,219 
Sq.ft
LKR 15,808 
per sq.ft less 
depreciation of 
39%
 523,200 Replacement 
cost per square 
feet 
The estimated fair value would increase/ (decrease) if: 
replacement cost per square feet increase/ (decrease)
Depreciation 
rate
The estimated fair value would increase/ (decrease) if: 
depreciation rate per square feet (decrease) / increase
Palapathwela Land Market 
Approach 
(price per 
perch of land)
2A-2R-
00.00P
LKR 800,000 
per perch
 320,000 Price per perch 
of land
The estimated fair value would increase/ (decrease) if: 
price per perch is higher/ (lower).
Building 
DRC value 
(replacement 
cost)
96,972 
Sq. Ft
LKR 18,057 
per sq.ft less 
depreciation of 
33%
 1,180,000 Replacement 
cost per square 
feet 
The estimated fair value would increase/ (decrease) if: 
replacement cost per square feet increase/ 
(decrease)	
Depreciation 
rate
The estimated fair value would increase/ (decrease) if: 
depreciation rate per square feet (decrease) / increase
	
Measurement of fair value of land has been categorised as level 3 of the fair value hierarchy under note 6(i) based on 
the inputs to the valuation techniques used.

Annual Report 2022/23 | Hela Apparel Holdings PLC  181
(iii)	
Carrying amounts that would have been recognised if land and buildings were stated at cost
	
If freehold land and buildings were stated on the historical cost basis, the amounts would be as follows:
Freehold land
2023
2022
Net book amount
 288,108 
 288,108 
Freehold buildings
Cost
 17,430 
 17,430 
Accumulated depreciation
 (7,291)
 (6,710)
Net book amount
 10,139 
 10,720 
(b)	
Leases
	
This note provides information for leases where the Group is a lessee.
(i) 	
Amounts recognised in the statement of financial position
	
The statement of financial position shows the following amounts relating to leases:
Right-of-use assets
Land & 
buildings 
As at 1 April 2021
Cost
 1,020,893 
Accumulated amortisation
 (496,875)
Exchange equalisation reserve
 38,649 
Net book amount
 562,667 
Year ended 31 March 2022
Opening net book amount
 562,667 
Additions 
 331,669 
Amortisation during the year
 (304,299)
Exchange equalisation reserve
 150,784 
Closing net book amount
 740,821 
Year ended 31 March 2022
Cost
 1,352,562 
Accumulated amortisation
 (801,174)
Exchange equalisation reserve
 189,433 
Net book amount
 740,821 
Year ended 31 March 2023
Opening net book amount
 740,821 
Additions 
 3,074,072 
Amortisation during the year
 (979,584)
Exchange equalisation reserve
 (93,138)
Closing net book amount
 2,742,171 
As at 31 March 2023
Cost
 4,426,634 
Accumulated amortisation
 (1,780,758)
Exchange equalisation reserve
 96,295 
Net book amount
 2,742,171

182  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
6 	
NON-FINANCIAL ASSETS AND LIABILITIES CONTD.
(b)	
Leases Contd.
Group
Company
2023
2022
2023
2022
Lease liabilities
Current
 648,353 
 433,857 
 -   
 -   
Non-current
 2,134,142 
 350,258 
 -   
 -   
 2,782,495 
 784,115 
 -   
 -   
(ii)	
Amounts recognised in the statement of profit or loss	
	
	
	
	
	
	
	
The statement of profit or loss shows the following amounts relating to leases:
Group
Company
2023
2022
2023
2022
Amortisation charge of right-of-use assets
 979,584 
 304,299 
 -   
 -   
Interest expense (included in finance cost)
 325,503 
 63,323 
 -   
 -   
 1,305,087 
 367,622 
 -   
 -   
	
The total cash outflow for leases in 2023 was LKR 1,312,750 (2022: LKR 298,122).
(iii) 	
The Group's leasing activities and how these are accounted for;
	
The Group leases buildings for a fixed period of 2-10 years.
	
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease 
agreements do not impose any covenants other than the security interests in the leased assets that are held by the 
lessor. Leased assets may not be used as security for borrowing purposes.
	
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, 
which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that 
the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-
use asset in a similar economic environment with similar terms, security and conditions.
	
To determine the incremental borrowing rate, the Group:
	
- 	 where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to 
reflect changes in financing conditions since third party financing was received
	
- 	 uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Group, 
which does not have recent third party financing, and
	
- 	 makes adjustments specific to the lease, e.g. term, country, currency and security.	
	
If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) 
which has a similar payment profile to the lease, then the Group entities use that rate as a starting point to determine 
the incremental borrowing rate.
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  183
	
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-
line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the 
underlying asset’s useful life. 
	
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised 
on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or 
less. Low-value assets comprise with any lease asset which value is less than USD 5,000.
(iv) 	
Critical judgements in determining the lease term
	
In determining the lease term, management considers all facts and circumstances that create an economic incentive 
to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination 
options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
(c) 	
Investment property
Group
Company
2023
2022
2023
2022
As at 1 April
 450,000 
 340,796 
 -   
 -   
Net gain/ (loss) on fair valuation
 110,025 
 (43,226)
 -   
 -   
Exchange equalisation reserve
 (325)
 152,430 
 -   
As at 31 March
 559,700 
 450,000 
 -   
 -   
	
See note 20(p) for the Group's other accounting policies for investment property.
(i)	
Amounts recognised in profit or loss in relation to investment property
Group
Company
2023
2022
2023
2022
Direct operating expenses on property that did not 
generate rental income
 528 
 311 
-
 -

184  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
6 	
NON-FINANCIAL ASSETS AND LIABILITIES CONTD.
(c) 	
Investment property Contd.
(ii)	
Measuring investment property at fair value
	
Investment properties, principally lands and buildings located at Melsiripura in the district of Kurunegala are held for 
long-term capital appreciation purpose and are not occupied by the Group. They are carried at fair value. Changes in fair 
values are presented in profit and loss as part of other gains or losses.
	
Investment property was fair valued by an independent valuer, Mr. W.D.P. Rupananda as at 31 March 2023. Mr. W.D.P 
Rupananda is a fellow member of the institute of valuers of Sri Lanka. The market value approach was used to carry out 
the fair valuation of the investment property as at the reporting period.
	
In determining the fair value, the current conditions of the buildings, future usability and estimates of market prices for 
similar properties with appropriate adjustments for size and location has been considered.
	
The Group obtains independent valuations for its investment property on annual basis.
	
At the end of each reporting period, the management update their assessment of the fair value, taking into account the 
most recent independent valuations.
(iii)	
Significant unobservable inputs and relationships to fair value
	
The following table shows the valuation techniques used in measuring the land and buildings as well as  significant 
unobservable inputs used.
Location of 
property	
Method of 
valuation	
Extent 
Range of 
estimates for  
unobservable  
inputs
Total 
revalued
 amounts
(LKR '000)
Significant
unobservable
valuation 
inputs
Relationship of 
unobservable inputs 
to fair value
Melsiripura
Land Market 
Approach (Price 
per perch of land)
2A-3R-24P
LKR 335,000 
per perch
 155,450 Price per perch 
of land
The estimated fair value would 
increase/ (decrease) if: 
price per perch is higher/ 
(lower).	
Building 
DRC value 
(replacement cost)
37,950 Sq. Ft. LKR 16,754 
per sq.ft less 
depreciation 
of 36%
 404,250 Replacement 
cost per square 
foot
The estimated fair value would 
increase/ (decrease) if: 
replacement cost per square 
feet increase/ (decrease)	
Depreciation 
rate
The estimated fair value would 
increase/ (decrease) if: 
depreciation rate per square 
feet (decrease) / increase	
	
Measurement of fair value of investment property has been categorised as level 3 of the fair value hierarchy under note 
6(i) based on the inputs to the valuation techniques used.		
	
	
	
	
	
	
	 	
	
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  185
(d)	
Intangible assets
Group
Company
Goodwill
Computer
 software
 Total 
Computer
 software
 Total 
As at 31 March 2021
Cost
 6,621,289 
 137,624 
 6,758,913 
 2,472 
 2,472 
Accumulated amortisation
 -   
 (121,076)
 (121,076)
 (1,688)
 (1,688)
Exchange equalisation reserve
 628,691 
 4,907 
 633,598 
 132 
 132 
Net book amount
 7,249,980 
 21,455 
 7,271,435 
 916 
 916 
As at 1 April 2021
Opening net book amount
 7,249,980 
 21,455 
 7,271,435 
 916 
 916 
Additions
 -   
 14,129 
 14,129 
 -   
 -   
Disposals
 -   
 (322)
 (322)
 -   
 -   
Amortisation charge
 -   
 (14,805)
 (14,805)
 (961)
 (961)
Exchange equalisation reserve
 3,641,016 
 3,215 
 3,644,231 
 45 
 45 
Closing net book amount
 10,890,996 
 23,672 
 10,914,668 
 -   
 -   
As at 31 March 2022
Cost
 6,621,289 
 151,431 
 6,772,720 
 2,472 
 2,472 
Accumulated amortisation
 -   
 (135,881)
 (135,881)
 (2,649)
 (2,649)
Exchange equalisation reserve
 4,269,707 
 8,122 
 4,277,829 
 177 
 177 
Net book amount
 10,890,996 
 23,672 
 10,914,668 
 -   
 -   
As at 1 April 2022
Opening net book amount
 10,890,996 
 23,672 
 10,914,668 
 -   
 -   
Additions
 -   
 29,732 
 29,732 
 -   
 -   
Amortisation charge
 -   
 (18,500)
 (18,500)
 -   
 -   
Exchange equalisation reserve
 1,030,299 
 1,364 
 1,031,663 
 -   
 -   
Closing net book amount
 11,921,295 
 36,268 
 11,957,563 
 -   
 -   
As at 31 March 2023
Cost
 6,621,289 
 181,163 
 6,802,452 
 2,472 
 2,472 
Accumulated amortisation
 -   
 (154,381)
 (154,381)
 (2,649)
 (2,649)
Exchange equalisation reserve
 5,300,006 
 9,486 
 5,309,492 
 177 
 177 
Net book amount
 11,921,295 
 36,268 
 11,957,563 
 -   
 -   
	
See note 20(q) for the other accounting policies relevant to intangible assets.

186  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
6 	
NON-FINANCIAL ASSETS AND LIABILITIES CONTD.
(i)	
Impairment tests for goodwill	
	
The Group undertakes an annual test for impairment of its Cash-Generating Units (CGUs).
	
The following subsidiaries, being the lowest level of assets for which there are separately identifiable cash flows, have 
carrying amounts of goodwill that are considered for the impairment test.
2023
2022
Hela Clothing (Private) Limited
 2,468,478 
 2,255,139 
Foundation Garments (Private) Limited
 6,183,189 
 5,648,807 
Hela Intimates EPZ Limited
 3,264,320 
 2,982,201 
Foundation Bennett (Private) Limited
 5,308 
 4,849 
 11,921,295 
 10,890,996 
	
The recoverable amounts of Hela Clothing (Private) Limited, Foundation Garments (Private) Limited, Hela Intimates EPZ 
Limited and Foundation Bennett (Private) Limited are determined based on the Value In Use (‘VIU’) calculations.
	
Based on the impairment test performed, no provision for impairment of goodwill was recognised during the year ended 
31 March 2023, since the recoverable amounts exceeded the carrying values.
	
The Group applies the following method for VIU calculations.
	
Discounted Cash Flow (DCF) method 
	
The VIU of Hela Clothing (Private) Limited, Foundation Garments (Private) Limited, Hela Intimates EPZ Limited  and 
Foundation Bennett (Private) Limited is calculated by applying DCF model using cash flow projections based on the 
forecasts and projections approved by the management covering a five year period. Cash flows beyond the five year 
period are extrapolated using the estimated growth rates as stated below. The growth rate does not exceed the long-
term average growth rate for the business in which the CGUs operate.
	
In the DCF model, the Free Cash Flows (FCF) have been discounted by pre-tax discount rate.
	
The following assumptions are applied in the VIU computation.
	
- EBITDA
	
Projected EBITDA is determined based on the future revenue growth potentials of the CGUs.
	
- Free cash flow (FCF)	
	
	
	
	
	
	
	
	
	
	
FCF projections are based on EBITDA and working capital projections.
	
- Pre-tax discount rate
	
The Group’s long term Weighted Average Cost of Capital (WACC) is representative of discount rate and is used as the 
pre-tax discount rate to discount cash flow projections.
	
- Terminal growth rate
	
Terminal growth reflects the management expectations on the sales growth potential for the foreseeable future.	 	
	 	
	
	
	
	
	
	
	
	 	
	
	
	
	
	
	
	
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  187
	
Fort the significant CGUs, given below are the variables used for the impairment test for 31 March 2023 under DCF 
method;
Hela Clothing (Private) 
Limited
Foundation Garments 
(Private) Limited
Hela Intimates EPZ 
Limited
2023
2022
2023
2022
2023
2022
EBITDA
8.00%
8.00%
8.00%
10.00%
8.00%
8.00%
Pre-tax discount rate
11.61%
13.31%
11.61%
13.31%
11.61%
13.31%
Terminal growth rate
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
(e)	
Other assets
Group
Company
2023
2022
2023
2022
Current
Prepayments 
 1,004,331 
 724,767 
 - 
 - 
Advances
 2,089,629 
 1,294,163 
 - 
 - 
Refundable deposits
 614,967 
 - 
 - 
 - 
 3,708,927 
 2,018,930 
 - 
 - 
(f)	
Deferred tax assets / (liabilities)
	
Deferred taxes are calculated on all temporary differences under the liability method using the applicable enacted or 
substantially enacted tax rates as at the statement of financial position date.
(i)	
The analysis of deferred tax assets and liabilities is as follows:
Group
Company
2023
2022
2023
2022
Deferred tax assets*
 1,128,036 
 182,650 
 -   
 -   
Deferred tax liabilities*
 (1,613,979)
 (575,488)
 -   
 -   
	
* Offsetting deferred tax assets and liabilities
	
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets 
against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the 
same taxation authority on the same taxable entity.
Group
Company
2023
2022
2023
2022
Deferred tax assets
The balance comprises temporary differences 
attributable to:
Tax losses
 425,038 
 122,083 
 -   
 -   
Retirement benefit obligation
 137,130 
 42,166 
 -   
 -   
Stock/ bad debt/ bonus & reward provisions
 565,869 
 18,401 
 -   
 -   
Total deferred tax assets
 1,128,037
 182,650 
 -   
 -

188  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
6 	
NON-FINANCIAL ASSETS AND LIABILITIES CONTD.
Group
Company
2023
2022
2023
2022
Deferred tax liabilities
The balance comprises temporary differences 
attributable to:
Property, plant and equipment 
 1,362,819 
 502,185 
 -   
 -   
Deferred tax effect on land valuation
 184,822 
 71,532 
 -   
 -   
Right of use asset and lease creditor
 66,338 
 1,771 
 -   
 -   
Total deferred tax liabilities
 1,613,979 
 575,488 
 -   
 -   
(ii) 	
The movement in the deferred tax assets and liability is shown below:
Group
Company
2023
2022
2023
2022
Deferred tax liabilities
As at 1 April
 (575,488)
 (372,059)
 -   
 -   
Profit or loss charged
 (733,757)
 (28,953)
 -   
 -   
Other comprehensive income
 (332,863)
 (5,808)
 -   
 -   
Exchange equalisation reserve
 28,129 
 (168,668)
 -   
 -   
As at 31 March
(1,613,979)
 (575,488)
 -   
 -   
Group
Company
2023
2022
2023
2022
Deferred tax assets
As at 1 April
 182,650 
 304,947 
 -   
 -   
Profit or loss charged/ (reversed)
 989,997 
 (179,799)
 -   
 -   
Other comprehensive income
 16,930 
 (7,485)
 -   
 -   
Exchange equalisation reserve
 (61,541)
 64,987 
 -   
 -   
As at 31 March 
1,128,036 
182,650 
 -   
 -   
	
Deferred tax movement  - item wise
2023
Profit or loss
OCI**
Deferred tax liabilities
Property, plant and equipment 
 632,435 
 249,413 
Deferred tax effect on land valuation
 32,076 
 83,450 
Right of use asset and lease creditor
 69,246 
 -   
Total deferred tax liabilities
 733,757 
 332,863 
Deferred tax assets
Tax losses
 325,092 
 -   
Carried forward finance cost
 (21,844)
 -   
Retirement benefit obligations
 72,674 
 16,930 
Bad debt, stock & bonus provision
 614,075 
 -   
Total deferred tax assets
 989,997 
 16,930 
	
** Other comprehensive income
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  189
	
Deferred tax movement  - item wise contd.
2022
Profit or loss
OCI**
Deferred tax liabilities
Property, plant and equipment 
 (30,467)
 (4,608)
Deferred tax effect on land valuation
 1,386 
 (1,200)
Right of use asset and lease creditor
 128 
 -   
Total deferred tax liabilities
 (28,953)
 (5,808)
Deferred tax assets
Tax losses
 (104,953)
 -   
Carried forward finance cost
 (63,085)
 -   
Retirement benefit obligations
 (11,761)
 (7,485)
Total deferred tax assets
 (179,799)
 (7,485)
	
** Other comprehensive income
(g)	
Inventories
Group
Company
Restated
2023
2022
2023
2022
Raw materials
 3,653,844 
 3,362,056 
 -   
 -   
Work-in-progress
 7,221,835 
 6,892,359 
 -   
 -   
Finished goods
 1,336,219 
 1,550,791 
 -   
 -   
Goods in transit
 1,010,388 
 1,012,325 
 -   
 -   
(-) Provision for inventories
 (1,461,278)
 (184,998)
 -   
 -   
 11,761,008 
 12,632,533 
 -   
 -   
	
See note 20(j) for the Group's other accounting policies for inventories.
	
Inventories are stated after a provision for slow moving inventories. The total movement of the provision is as follows:
(i) 	
Provision for inventories
Group
Company
2023
2022
2023
2022
Balance as at 1 April
 184,998 
 513,178 
 -   
 -   
Provision made/ (reversed) during the year
 1,365,165 
 (408,835)
 -   
 -   
Exchange equalisation reserve
 (88,885)
 80,655 
-
-
Balance as at 31 March
 1,461,278 
 184,998 
 -   
 -

190  Hela Apparel Holdings PLC | Annual Report 2022/23
6 	
NON-FINANCIAL ASSETS AND LIABILITIES CONTD.
(h)	
Employee benefit obligations
Group
2023
2022
Employee benefit obligations
 536,101 
 426,417 
 536,101 
 426,417 
	
The amounts recognised in the statement of financial position and the net movements in the defined benefit obligation 
over the year are as follows:	
Group
2023
2022
At beginning of the year
 426,417 
 436,905 
Current service cost 
 78,434 
 83,107 
Interest expense
 56,593 
 26,368 
Actuarial losses/ (gains) in other comprehensive income
 48,956 
 (63,537)
 - Experience losses
 117,366 
 32,603 
 - Losses/ (gains) from change in demographic assumptions
 6,782 
 (5,114)
 - (Gains) from change in financial assumptions
 (75,191)
 (91,026)
Benefits paid 
 (73,272)
 (47,574)
Exchange equalisation reserve
 (1,027)
 (8,852)
At end of the year
 536,101 
426,417 
	
The amounts recognised in the statement of profit or loss are as follows:
Group
2023
2022
Current service cost
78,434 
83,107 
Interest expense
56,593 
26,368 
135,027 
109,475 
	
The gratuity liability of the Group is based on an actuarial valuation carried out by Messrs. Willis Towers Watson India 
(Private) Limited, whose principal place of the business is located at 130, Level 1 - Tower B, The Millenia, 1&2 Murphy 
Road, Ulsoor, Bengaluru - 560 008, India. 	
	
	
	
	
	
	
	
	
	
	
	 	
	
	
	
	
	
	
	
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  191
	
The significant actuarial assumptions were as follows:
Group
2023
2022
Discount Rate
19.71%
14.30%
Salary growth rate
10.00%
10.00%
Staff turn over rate	
 - Executive
29.00% to 22.00% 
20.00% to 14.00% 
 - Staff and workers
44.00% to 31.00% 
43.00% to 31.00% 
 - GM / Managers
25.00% to 9.00% 
15.00% to 12.00% 
 - Directors
38.00% to 1.00% 
1%
	
The sensitivity of the overall retirement benefit obligation to changes in the principle assumption is:
Group
Impact on defined benefit obligation
 Increase in obligation
 Decrease in obligation
Decrease by
2023
2022
Increase by
2023
2022
Discount rate
1%
(5,108) to
 (2,684)
(5,311) to 
(2,753)
1%
5,398 to 
2,884
5,764 to 
2,981
Salary growth rate
1%
5,877 to 
3,135
5,980 to 
3,097
1%
(5,633) to 
(2,951)
(5,591) to
 (2,901)
Attrition rate
1%
2,381 to 
274
526 to 
313
1%
(1,568) to 
(308)
(616) to 
(397)
	
The weighted average duration of the defined benefit obligation is as follows:
2023
2022
Hela Clothing (Private) Limited
3.2 years
3.6 years
Foundation Garments (Private) Limited
 3.2 years 
3.6 years
Foundation Sourcing (Private) Limited
 3.2 years 
5.1 years
	
The un-discounted maturity profile of the defined benefit obligation is as follows:	
	
Group
2023
2022
Less than a year
 201,624 
 129,016 
Between 1 - 2 years
 341,864 
 115,590 
Between 2 - 5 years
 331,746 
 343,396 
Over 5 years
 613,388 
 520,813 
 1,488,622 
 1,108,815

192  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)	
6 	
NON-FINANCIAL ASSETS AND LIABILITIES CONTD.
(i)	
Recognised fair value measurements	
	
Fair value hierarchy	
	
To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its 
financial and non-financial assets and liabilities into the three levels prescribed under the accounting standards. 
As at 31 March 2023
Note
Level 1
Level 2
Level 3
Total
Financial assets
Derivative financial instruments
10(a)
 -
 439,129 
 -   
 439,129 
Non-financial assets	
Property, plant and equipment
 - freehold land
6(a)
 -   
 -   
 458,500 
 458,500 
 - freehold building
6(a)
 -   
 -   
 1,703,200 
 1,703,200 
Investment property	
6(c)
 -   
 -   
 559,700 
 559,700 
-
  439,129    
 2,721,400 
 3,160,529 
As at 31 March 2022
Note
Level 1
Level 2
Level 3
Total
Non-financial assets
Property, plant and equipment
 - freehold land
6(a)
 -   
 -   
 403,884 
 403,884 
 - freehold building
6(a)
 -   
 -   
 1,688,497 
 1,688,497 
Investment property
6(c)
 -   
 -   
 450,000 
 450,000 
 -   
 -   
 2,542,381 
 2,542,381 
	
The Group's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the 
reporting period.
	 Level 1: 	The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity 
securities) is based on quoted market prices at the end of the reporting period. The quoted market price used 
for financial assets held by the Group is the current bid price. These instruments are included in level 1.
	 Level 2: 	The fair value of financial instruments that are not traded in an active market is determined using valuation 
techniques which maximise the use of observable market data and rely as little as possible on entity-specific 
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included 
in level 2.
	 Level 3:  If one or more of the significant inputs is not based on observable market data, the instrument is included in 
level 3.

Annual Report 2022/23 | Hela Apparel Holdings PLC  193
7	
EQUITY
(a)	
Stated capital
Company
2023
2022
2023
2022
Number of
 shares
Number of
shares
Value 
(LKR '000)
Value
(LKR '000)
Ordinary shares
 1,309,955,933  1,303,117,944 
 5,754,575 
 5,730,537 
 1,309,955,933  1,303,117,944 
 5,754,575 
 5,730,537 
	
All issued shares are fully paid.
(i)	
Movement in ordinary shares:
Number of 
shares
 Value
(LKR '000)
Balance as at 1 April 2021
10,000,431
1,723,899
Cancellation of existing shares due to share capital restructure
 (10,000,826)
 (1,723,901)
Share capital restructure
1,005,409,973
 1,723,901 
Share issue
297,708,366
3,972,138
IPO share transaction cost	
 - 
 34,500 
Balance as at 31 March 2022
1,303,117,944
5,730,537
Balance as at 1 April 2022
1,303,117,944
5,730,537
Share issue related to employee share option plan
6,837,989
24,038
Balance as at 31 March 2023
1,309,955,933
5,754,575

194  Hela Apparel Holdings PLC | Annual Report 2022/23
7	
EQUITY CONTD.
(b)	
Other reserves
	
The following table shows a breakdown of other reserves and the movements in these reserves during the year. A 
description of the nature and purpose of each reserve is provided below the table.
Group
Company
Revaluation
 reserve
Share based
 payment
 reserve
Other
Reserves
Total
Share based
 payment
reserve
Total
Balance as at 1 April 2021
 3,843 
 82,222 
-
 86,065 
 82,222 
 82,222 
Gain on revaluation of land and 
building, net of tax
 22,242 
 -   
-
 22,242 
 -   
 -   
Employee share option plan - 
value of employee services
 -   
 32,725 
-
 32,725 
 32,725 
 32,725 
Balance as at 31 March 2022
 26,085 
 114,947 
-
 141,032 
 114,947 
 114,947 
Balance as at 1 April 2022
 26,085 
 114,947 
 -   
 141,032 
 114,947 
 114,947 
Other comprehensive income
 629,709 
 -   
 -   
 629,709 
 -   
 -   
Employee share option plan - 
value of employee services
 -   
 24,103 
 -   
 24,103 
 24,103 
 24,103 
Issue of shares
 -   
 (24,038)
 -   
 (24,038)
 (24,038)
 (24,038)
Transfers from retained 
earnings
 -   
 30,525 
 30,525 
 -   
 -   
Balance as at 31 March 2023
655,794 
115,012 
30,525 
801,331 
115,012 
115,012 
	
Nature and purpose of other reserves
(i)	
Revaluation reserve	
	
The revaluation reserve is used to record increments and decrements on the revaluation of property, plant and 
equipment. In the event of a sale of an asset, any balance in the reserve in relation to the asset is transferred to retained 
earnings, see accounting policy note 20(o) for details.
(ii)	
Share-based payment reserve
	
The share-based payments reserve is used to recognise:
	
- 	 the grant date fair value of options issued to employees but not exercised
	
- 	 the grant date fair value of shares issued to employees
	
- 	 the grant date fair value of deferred shares granted to employees but not yet vested
	
The establishment of the Hela Apparel Holdings Employee Share Ownership Plan (ESOP) was approved by the 
Company’s Board of Directors in July 2020. The ESOP is in intended to provide key employees with a stake in the 
Company’s future success and provide an additional incentive for employee retention. Options were granted to an 
employee by the Board of Directors and become available to them based on an individual vesting schedule of up to 
three years. Participation in the plan is at the Board’s discretion, and no individual has a contractual right to participate 
in the plan or to receive any guaranteed benefits.Options provide the holder with the right to subscribe a specified 
number of C Ordinary Shares subject to the associated vesting schedule and once granted the option remains 
exercisable for five years. 
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  195
	
Set out below are summaries of shares granted under the plan:
2023
2022
Exercise price
 in LKR per 
share
Number of
 shares
Exercise price
 in LKR per
 share
Number of
 shares
As at 1 April
 - 
 14,263,616 
 10 
 400 
Granted during the year
 -   
-
 -   
 - 
Exercised during the year
 -   
 (6,837,989)
 10 
 (133)
Share capital restructure 
 -   
-
 -   
 14,263,349 
No. of unvested shares granted as at 31 March
 7,425,627 
 14,263,616 
	
Details of the shares underlying the Employee Share Scheme as of 31st March 2023 are as follows;
Date of Grant
Employee Category
Shares
Granted
(A+B)
 
Status of Granted Shares as of 
31 March 2023
Remaining shares
alotted to Scheme that
 may be granted by the
Board of Directors at 
a future date
	
Vested &
 Issued
(A)
To be 
Vested &
 Issued on 
1 August
 2023 (B)
1-Aug-20	
	
Senior Executives and 
Directors	
 35,258,375 
27,832,748
7,425,627-  
 18,163,411 
	
Note: The Employee Share Grant Scheme was originally established as a Share Option Scheme, and was converted by a 
special resolution of the shareholders passed on 7 September 2021. Further details of the scheme and the conversion 
can be found in Section 5 of the Prospectus for the Initial Public Offering of the company, published on 28 December 
2021. In addition to the 35,258,375 shares granted on 1 August 2020, 18,163,411 shares remain alloted to the scheme 
and may be granted at a future date by the Board of Directors. 
 
Fair value of share options granted
	
The assessed fair value at grant date of share options granted during the year ended 31 March 2021 was LKR 
131,463,822. The fair value at grant date was determined by the independent valuer, CT CSLA using the Binomial 
Option Valuation Model that takes into account the exercise price, exercise period, the impact of dilution (where 
material), the equity value at the grant date and, the risk-free interest rate for the term of the option, the volatilities of 
the peer companies. A equity transaction executed on 31 July 2020 was used in determining the equity value of the 
Company as at 01 August 2020, the grant date.
	
Following inputs were used for the options valuation model in determining the grant date fair value of the share options 
granted during the year ended 31 March 2023.
	
(a)	 exercise price: -	 	
	
	
	
	
	
	
	
	
(b)	 grant date:  01st August 2020	
	
	
	
	
	
	
	
	
	
(c)	 expiry date: 31st July 2025	
	
	
	
	
	
	
	
	
	
(d)	 risk-free interest rate: 1.97%	
	
	
	
	
	
	
	
	
	
(e)	 expected price volatility of the Company’s shares: 36.92%*	
	
*Expected volatility is based on a three year average of the daily share price movement of peer companies, weighted 
based on market capitalisation.

196  Hela Apparel Holdings PLC | Annual Report 2022/23
7	
EQUITY CONTD.
(c)	
(Accumulated losses)/ retained earnings	
	
Movement in (accumulated losses)/ retained earnings were as follows:	
Group
Company
Restated
Notes
2023
2022
2023
2022
Opening balance as at 1 April
 2,045,520 
 1,313,835 
(1,488,118)
 (32,604)
Net (loss)/ profit for the year
 (3,498,317)
 584,044 
(812,721)
(1,421,014)
Items of other comprehensive income 
recognised directly in (accumulated losses)/ 
retained earnings
 - Remeasurement of post employment  
   benefit obligations - gratuity
6(h)
 (48,956)
 63,537 
 -   
 -   
 - Deferred taxation impact from 
   remeasurement of post employment  
   benefit obligations - gratuity
6(f)
 16,930 
 (7,485)
 -   
 -   
Items recognised directly  in retained earnings 
 - NCI on business combination
 -   
 126,089 
 -   
 -   
 - Transfers from translation reserve to  
   retained earnings
 (19,140)
 -   
 -   
 -   
 - Transfers from retained earnings to other 
   reserves
 (30,525)
 -   
 -   
 -   
 - IPO share transaction cost
 -   
 (34,500)
 -   
 (34,500)
Closing balance as at 31 March
 (1,534,488)
 2,045,520 
 (2,300,839)
(1,488,118)
(d)	
Exchange equalisation reserve
	
The Company has adopted provisions of Sri Lanka Accounting Standard (LKAS 21), The effects of changes in foreign 
exchange rates, in converting financial statements from functional currency (USD) to presentation currency (LKR). 
The basis of translation is stated in note 21(c)(iii) to the accounting policies. The analysis of the exchange equalisation 
reserve arising from such translation is as follows:
Group
Company
2023
2022
2023
2022
Stated capital
 3,953,702 
 3,118,791 
 3,953,702 
 3,118,788 
Other reserves
 43,907 
 74,592 
 79,947 
 62,768 
Non -controlling interests
 164,043 
 148,665 
 -   
 -   
Currency equalisation reserve
 289,558 
 289,610 
 -   
 -   
Retained earnings/ (accumulated losses)
 1,669,381 
 1,093,447 
 (773,878)
 (636,245)
As at end of year
 6,120,591 
 4,725,105 
 3,259,771 
 2,545,311 
	
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  197
	
The movement on the exchange equalisation reserve is as follows:
Group
Company
2023
2022
2023
2022
Balance as at 1 April 
 4,725,105 
 505,769 
 2,545,311 
 200,923 
Amount recognised in other comprehensive income
Stated capital
 834,911 
 2,919,783 
 834,914 
 2,919,780 
Other reserves
 (30,685)
 69,557 
 17,179 
 57,907 
Non -controlling interests
 15,378 
 101,555 
 -   
 -   
Currency equalisation reserve
 (52)
 97,883 
 -   
 -   
Retained earnings / (accumulated losses)
 575,934 
 1,030,558 
 (137,633)
 (633,299)
 1,395,486 
 4,219,336 
 714,460 
 2,344,388 
Balance as at 31 March
 6,120,591 
 4,725,105 
 3,259,771 
 2,545,311 
8	
CASH FLOW INFORMATION
(a)	
Cash generated from / (used in) operations
	
Reconciliation of (loss)/ profit before tax to cash generated from operations:
Group
Company
Notes
2023
2022
2023
2022
(Loss)/ profit before income tax 
 (3,424,915)
 829,136 
 (811,921)
 (1,413,194)
Adjustments for:
Depreciation of property plant and equipment
6(a)
 950,064 
 507,220 
 -   
 -   
Amortisation of right of use assets
6(b)
 979,584 
 304,299 
 -   
 -   
Amortisation if intangible assets
6(d)
 18,500 
 14,805 
 -   
 961 
Provision for retirement benefit obligations
6(h)
 135,027 
 109,475 
 -   
 -   
Gain/ (loss) on sale of property, plant and 
equipment
3(b)
 (444)
 (226)
 -   
 -   
Gain/ (loss) on the fair valuation of investment 
property
6(c)
 (110,025)
 43,226 
 -   
 -   
Net interest expenses/ (income)
3(e)
 3,986,048 
 1,336,265 
 (2,903)
 (32,539)
Fair value gain on derivatives
10(a)(iv)
 (439,129)
 -   
 -   
 -   
Provision for impairment of trade receivables
10(c)
 189,622 
 132,718 
 -   
 -   
Realised exchange gain on last year income 
tax payment
 -   
 -   
 (5,501)
-
Provision for slow moving stocks
6(g)(i)
 1,365,165 
 (408,835)
 -   
Expense charged under ESOP
7(b)
 24,103 
 32,725 
 -   
 -   
Restatement adjustment
 -   
 235,646 
 -   
 -   
Share of loss of equity accounted investees, 
net of tax
12(e)
 69,315 
 91,516 
 -   
 -   
Changes in working capital
- increase/ (decrease) in inventories
 876,070 
 (2,925,552)
 -   
 -   
- decrease/ (increase) in trade and other 
receivables
 4,250,915 
 (4,328,644)
 3,366,944 
 (1,967,571)
 - increase / (decrease) in trade and other 
payables
 482,565 
 1,113,568 
 11,866 
 21,215 
Cash generated from/ (used in) operations
 9,352,465 
 (2,912,658)
 2,558,485 
 (3,391,128)

198  Hela Apparel Holdings PLC | Annual Report 2022/23
9 	
CRITICAL ESTIMATES, JUDGEMENTS AND ERRORS
	
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal 
the actual results. Management also needs to exercise judgement in applying the Group’s accounting policies.
	
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items 
which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed 
information about each of these estimates and judgements is included in notes 1 to 8 together with information about 
the basis of calculation for each affected line item in the financial statements.
(a)	
Significant estimates and judgements
	
The areas involving significant estimates or judgements are:
	
- 	 classification of financial assets and liabilities (note 5)
	
- 	 impairment assessment of goodwill (note 6(d)(i))
	
- 	 useful lives of property, plant and equipment (note 20(o))
	
- 	 useful lives of intangible assets (note 6(d))
	
- 	 estimation of fair value of investment properties (note 6(c)(iii))
	
- 	 estimation of fair values of land and buildings (note 6(a))
	
- 	 estimation of defined benefit obligation (note 6(h))
	
- 	 estimation uncertainties and judgements made in relation to lease accounting (note 6(b)(iii))
	
- 	 estimation of the current tax expense and deferred tax (note 4(a))
	
- 	 estimation of the fair value of contingent liabilities (note 13)
	
- 	 impairment of financial assets (note 10(c))	
(i)	
Contingent liabilities
	
Determination of the treatment of contingent liabilities in the financial statements is based on the management’s view of 
the expected outcome of the applicable contingency. The Group consults with legal counsel (lawyers) on matters related 
to litigation and other experts both within and outside the Group with respect to the matters in the ordinary course of 
business.
(ii)	
Provisions
	
The Group and the Company recognises provisions when it has a present legal or constructive obligation arising as a 
result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation 
and a reliable estimate can be made. The recording of provisions requires the application of judgments about the 
ultimate resolution of these obligations. As a result, provisions are reviewed at each balance sheet date and adjusted to 
reflect the Group's current best estimate.
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  199
(b)	
Correction of a prior period error in absorbing overheads to inventory	
(i)	
Overhead Absorption – Hela Investment Holdings Limited
	
As a result of the migration to the SAP S/4HANA Fashion ERP system, the management identified an over absorption of 
manufacturing overhead costs to the 31 March 2022 inventory balance of Hela Investment Holdings Limited. This over 
absorption has been corrected and the relevant costs included in cost of sales for the relevant period. 
(ii)	
Impact to the statement of profit or loss for the year ended 31st March 2022
Group
 Year ended 31 March 2022 
As per
 published
 accounts
Effect of over
 absorption
 reversal
Exchange 
impact
Restated
 accounts
Revenue from contracts with customers
56,179,623
 -   
 -   
 56,179,623 
Cost of sales 
 (47,367,814)
 (235,646)
 -   
 (47,603,460)
Gross profit 
 8,811,809 
 (235,646)
 -   
 8,576,163 
Operating profit
 2,492,563 
 (235,646)
 -   
 2,256,917 
Profit before income tax
 1,064,782 
 (235,646)
 -   
 829,136 
Profit for the year
 816,311 
 (235,646)
 -   
 580,665

200  Hela Apparel Holdings PLC | Annual Report 2022/23
9 	
CRITICAL ESTIMATES, JUDGEMENTS AND ERRORS CONTD.
(iii)	
Reconciliation for the statement of financial position as at 31st March 2022
Group
 As at 31 March 2022
As per
 published
 accounts
Effect of over
 absorption
 reversal
Exchange 
impact
Restated
 accounts
Non Current Assets
19,163,480
 -   
 -   
 19,163,480 
Current Assets
Inventories 
 12,970,239 
 (337,706)
 -   
 12,632,533 
Other assets
 2,018,930 
 -   
 -   
 2,018,930 
Trade and other receivables
 14,380,441 
 -   
 -   
 14,380,441 
Income tax receivables
 11,465 
 -   
 -   
 11,465 
Other financial assets at amortised cost
 204,142 
 -   
 -   
 204,142 
Cash and cash equivalents 
 5,244,151 
 -   
 -   
 5,244,151 
Total Current Assets
 34,829,368 
 (337,706)
 -   
 34,491,662 
Total assets
 53,992,848 
 (337,706)
 -   
 53,655,142 
Equity
Stated capital
 5,730,537 
 -   
 -   
 5,730,537 
Retained earnings
 2,315,666 
 (337,706)
 102,060 
 2,080,020 
Other reserves
 141,032 
 -   
 -   
 141,032 
Exchange equalisation reserve
 4,827,165 
 -   
 (102,060)
 4,725,105 
Capital and reserves attributable to owners  
of the Company
 13,014,400 
 (337,706)
 
 12,676,694 
Non-controlling interests
 150,522 
 -   
 -   
 150,522 
Total equity
 13,164,922 
 (337,706)
-
 12,827,216 
Liabilities
Non-current liabilities
3,926,528
 -   
 -   
 3,926,528 
Current liabilities
36,935,898
 -   
 -   
 36,935,898 
Total liabilities
 40,862,426 
 -   
 -   
 40,862,426 
Total equity and liabilities
 54,027,348 
 (337,706)
-
 53,689,642 
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  201
10 	
FINANCIAL RISK MANAGEMENT
	
This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future financial 
performance. Current year profit and loss information has been included where relevant to add further context.
	
- 	 Market Risk
	
- 	 Credit Risk
	
- 	 Liquidity Risk
	
The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest 
rate risk), credit risk and liquidity risk. The Group's overall risk management procedures focuses on the unpredictability 
of financial markets and seeks to minimise potential adverse effects on the financial performance. Financial risk 
management is carried out through risk reviews, internal control systems, insurance programmes and adherence to the 
Group's financial risk management policies. The Board of Directors regularly reviews these risks and approves the risk 
management policies, which covers the management of these risks.
(a)	
Derivatives	
	
	
	
	
	
	
	
	
The Group has the following derivative financial instruments in the balance sheet:
2023
2022
Foreign currency forwards
 439,129 
 - 
(i) 	
Classification of derivatives
	
Derivatives are only used for economic hedging purposes and not as speculative investments. However, where 
derivatives do not meet the hedge accounting criteria, they are classified as ‘held for trading’ for accounting purposes 
and are accounted for at fair value through profit or loss.
	
The full fair value of derivatives is classified as a non-current asset or liability when the remaining maturity of the hedged 
item is more than 12 months. It is classified as a current asset or liability when the remaining maturity of the derivative is 
less than 12 months. The Group classified derivatives as current assets.
(ii) 	
Fair value measurement
	
For information about the methods and assumptions used in determining the fair value of derivatives see note 6(i).

202  Hela Apparel Holdings PLC | Annual Report 2022/23
10 	
FINANCIAL RISK MANAGEMENT CONTD.
(a)	
Derivatives Contd.
(iii) 	
Amounts recognised in profit or loss
	
The following amounts were recognised in profit or loss in relation to derivatives:
2023
2022
Net gain on foreign currency forwards included in other gains/ (losses)
 439,129 
 - 
(b)	
Market risk
(i)	
Foreign exchange risk
	
The Group is sensitive to the fluctuations in exchange rates and is principally exposed to fluctuations in the value of 
the Sri Lankan Rupee (LKR) against the US Dollar (USD). The Group's functional currency is USD in which most of the 
transactions are denominated, and all other currencies are considered foreign currencies for reporting purposes. Foreign 
currencies are used to settle purchases of machinery and equipment suppliers, raw materials and certain other expenses.
	
The Group's financial statements which are presented in Sri Lankan rupees are affected by foreign exchange fluctuations 
through both translation risk and transaction risk. However, the changes in foreign currency exchange rates may 
materially affect the Group's materials purchased since most of the purchases are done in USD.	
	
Exposure
	
The Group's exposure to foreign currency risk at the end of the reporting period, expressed in US Dollar currency units 
and LKR, was as follows:
2023
USD
LKR
Trade and other receivables
 9,843,247 
 1,744 
Trade and other payables
 12,099,179 
 7,577 
Derivative financial instruments
 439,129 
 -   
Bank loan (including bank overdraft)
 27,175,952 
 -   
 49,557,507 
 9,321 
2022
USD
LKR
Trade and other receivables
 14,379,106 
 1,335 
Trade and other payables
 10,763,810 
 11,005 
Bank loan (including bank overdraft)
 28,263,286 
 -   
 53,406,202 
 12,340 
	
Amounts recognised in profit or loss
	
During the year, net foreign exchange gain of LKR 959,402  (2022 - LKR 444,679) were recognised in profit or loss.
	
Sensitivity
	
The table below shows the Group's sensitivity to reasonable possible change in exchange rate of LKR against USD,  
while all other variables are held constant. In this table, financial instruments are only considered sensitive to foreign 
exchange rates where they are not in the functional currency of the entity that holds them. The movement in exchange 
rate is not deemed to have a material effect on equity.
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  203
Impact on post tax profit
2023
2022
LKR/USD exchange rate – appreciation by 1%
 93 
 123 
LKR/USD exchange rate – depreciation by 1%
 (93)
 (123)
(ii)	
Interest rate risk
	
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of 
changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relate primarily to 
the Group’s  debt obligations with floating interest rates.
	
Proper working capital management is done to ensure that borrowing needs and investment opportunities are foreseen. 
Market interest rates are monitored closely to ensure borrowings and investments are at the best rate for the Group.
	
Sensitivity
	
The table below shows the Group's sensitivity to reasonable possible change in interest rate of LKR and USD 
borrowings  while all other variables are held constant. 
2023
LKR interest rate
USD interest rate
Decrease 
by 1%
Increase 
by 1%
Decrease 
by 1%
Increase 
by 1%
Group Impact on post tax profit
 128,502 
 (128,502)
 66,052 
 (66,052)
(c)	
Credit risk
	
Credit risk arises from cash and cash equivalents, with banks and financial institutions, including outstanding receivables.
(i)  	
Credit quality
	
The Group place cash and cash equivalents with a number of creditworthy financial institutions.  The credit ratings of 
the investments are monitored for credit deterioration. The credit quality of cash and cash equivalents held with the 
banks and the financial institutions are assessed by reference to external credit ratings;
2023
2022
Fitch Ratings:
AAA(lka)
 340,436 
 28,466 
AA+ (lka)
 2,903 
 2,276 
AA- (lka)
 308,242 
 2,784,496 
A+ (lka)
 1,466 
 635,994 
A- (lka)
 107,020 
 563,274 
A (lka)
 2,741,233 
 12,508 
BB+ (lka)
 193,680 
 102,010 
BBB-(lka)
 68,319 
 957,517 
No rating
 142,701 
 157,610 
 3,906,000 
 5,244,151 
	
Credit exposures to customers, including outstanding receivables are managed through individual risk limits, based on 
internal or external ratings. The utilisation of credit limits is regularly monitored.

204  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
10 	
FINANCIAL RISK MANAGEMENT CONTD.
(c)	
Credit risk contd.
((ii)	
Impairment of trade receivables	
	
	
	
	
	
	
	
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected 
loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped 
based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment 
profiles of sales over a period of 36 months before 31 March 2023 or 1 April 2022 respectively and the corresponding 
historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and 
forward looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
	
On that basis, the loss allowance charge for the year ended 31 March 2023 and 31 March 2022 was determined as 
follows for trade receivables:
2023
2022
Age Category
0 - 60 days 
 8,803,396 
11,726,360 
61-120 days 
 308,534 
410,975 
121-180 days 
 10,044 
13,378 
181-240 days 
 3,005 
4,002 
More than 241 days
 49,688 
66,187 
Gross carrying value of trade receivables 
 9,174,667 
12,220,902 
Allowance for expected credit losses
(285,520)
(293,180)
Net trade receivables after the allowances for expected credit losses
8,889,147 
11,927,722 
Group
Trade receivables
2023
2022
 Charged to the statement of profit or loss 
 (189,622)
 (132,718)
	
The closing loss allowances for trade receivables as at 31 March reconcile to the opening loss allowances as follows:
Trade receivables
2023
2022
As at 1 April
 (293,180)
 (352,158)
Increase in loss allowance recognised in profit or loss during the year
 (189,622)
 (132,718)
Unused amount reversed on trade receivables
 153,114 
 297,281 
Exchange equalisation reserve
 (24,891)
 (105,585)
As at 31 March
 (354,579)
 (293,180)
	
On that basis, the loss allowance as at 31 March 2023 and 01 April 2022 was determined as follows for both trade receivables
Current
61-120
days
121-180 
days
More than 180
 days past due
Total
31 March 2023
Expected loss rate (%)
0.87
47.61
93.00
100.00
-
Gross carrying amount – trade receivables
8,803,396 
308,534 
10,044 
52,693 
9,174,667 
Loss allowance
76,590 
146,896 
9,341 
52,693 
285,520 
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  205
Current
61-120
days
121-180 
days
More than 180
 days past due
Total
31 March 2022
31 March 2022
0.16%
46.67%
91.52%
100.00%
Gross carrying amount – trade receivables
11,726,360 
410,975 
13,378 
70,189 
12,220,902 
Loss allowance
18,945 
191,803 
12,243 
70,189 
293,180 
(iii) 	
Other receivables 	 	
	
	
	
	
	
	
	
The Group made specific provision for unrecoverable/ uncollectable other receivable balance. The loss allowance charge 
for the year ended 31 March 2023 and 2022 was determined as follows for other receivables:
Group
Other receivables
2023
2022
 Reversed to the statement of profit or loss 
 153,928 
 -   
	
The closing loss allowances for other receivables as at 31 March 2023 reconcile to the opening loss allowances as follows:
 Other receivables
2023
2022
As at 1 April
 (267,007)
 (179,134)
Decrease in loss allowance recognised in profit or loss during the year
 153,928 
 -   
Unused amount reversed on other receivables
 -   
 9,101 
Exchange equalisation reserve
 (37,254)
 (96,974)
As at 31 March
 (150,333)
 (267,007)
	
Trade receivables are written off when there are no reasonable expectation of recovery. Indicators that there is no 
reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with 
the Group. Impairment losses on trade receivables and other receivables are presented as net impairment losses within 
operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.
(d)	
Liquidity risk
	
Cash ﬂow forecasting is performed by the ﬁnance division. The finance division monitors rolling forecasts of the Group’s 
liquidity requirements to ensure it has suﬃcient cash to meet operational needs while maintaining sufficient headroom 
on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or 
covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s 
debt ﬁnancing plans, covenant compliance, compliance with internal statement of financial position ratio targets and, if 
applicable external regulatory or legal requirements – for example, currency restrictions.

206  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
10 	
FINANCIAL RISK MANAGEMENT CONTD.
(d)	
Liquidity risk contd.
(i)	
Maturities of financial liabilities
	
The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on their contractual 
maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted 
cash flows.	
Contractual maturities of 
financial liabilities
Less than 6
month
 Between 6
 month and 12
 month 
Between 1
and 2 years
Between 2
and 5 years
 Over 5 
years 
 Total
 contractual
 cash flows 
31 March 2023
Borrowings
 18,101,653 
 6,577,085 
 1,375,842 
 1,121,372 
 -    27,175,952 
Trade and other payables 
 7,379,192 
 4,727,564 
 -   
 -   
 -    12,106,756 
Lease liabilities
 1,573,992 
 547,892 
 415,536 
 368,472 
 149,419 
 3,055,311 
 27,054,837 
 11,852,541 
 1,791,378 
 1,489,844 
 149,419 
 42,338,019 
31 March 2022
Borrowings
 24,801,264 
 820,323 
 1,418,395 
 1,185,917 
 37,387 
 28,263,286 
Trade and other payables 
 5,370,125 
 5,404,690 
 -   
 -   
 -    10,774,815 
Lease liabilities
 153,136 
 280,721 
 523,073 
 -   
 -   
 956,930 
 30,324,525 
 6,505,734 
 1,941,468 
 1,185,917 
 37,387 
 39,995,031 
11 	
CAPITAL MANAGEMENT	
(a)	
Risk management
	
The Group’s objectives when managing capital are to;
	
- 	 safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders 
and benefits for other stakeholders, and
	
- 	 maintain an optimal capital structure to reduce the cost of capital.
	
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, 
return capital to shareholders, issue new shares or sell assets to reduce debt.
	
Consistent with others in the industry, the Group monitors capital on the basis of the following:
	
Net debt as per total borrowings (including ‘current and non-current borrowings’ as shown in the statement of financial 
position) less cash and cash equivalents.
	
divided by
	
Total ‘equity’ (as shown in the statement of financial position).
	
The credit rating was unchanged and the gearing ratios at 31 March 2022 and 31 March 2021 were as follows:
Notes
2023
2022
Total borrowings 
5 (e)
 27,175,952 
 28,263,286 
Less: Cash and cash equivalents
5 (c)
 (3,906,000)
 (5,244,151)
Net debt  
 23,269,952 
 23,019,135 
Total equity
 11,142,009 
 12,642,194 
Net debt to equity ratio
2.09
1.82
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  207
(i) 	
Loan covenants
	
Under the terms of the major borrowing facilities, the Group is required to comply with the following financial covenants:
	
- 	 Any dividend declaration should be informed to the bank in advance
	
- 	 Any changes in key management personnel should be informed to the bank with immediate effect
12	
INTERESTS IN OTHER ENTITIES
(a) 	
Company owned subsidiaries
	
The Group’s principal subsidiary at 31 March 2023 are set out below. Unless otherwise stated, it has share capital 
consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests held 
equals the voting rights held by the Group. The country of incorporation or registration is also their principal place of 
business.
Place of business 
/ country of 
incorporation
Ownership
Investments
2023
2022
Hela Clothing (Private) Limited
Sri Lanka
100%
 6,853,540 
 2,982,526 
 6,853,540 
 2,982,526 
	
Details of the movement of investment in subsidiary for the year ended 31 March 2023 and 2022 is as follows;
Group
Company
2023
2022
2023
2022
Cost
At the beginning of period
 -   
 -   
 2,982,526 
 1,955,469 
Issue of shares to employees under the ESOP
 -   
 -   
 -   
 32,725 
Additions
 -   
 -   
 3,891,709 
 -   
Exchange equalisation reserve
 -   
 -   
 (20,695)
 994,332 
At the end of period
 -   
 -   
 6,853,540 
 2,982,526 
(b)	
 Fellow subsidiaries
	
The Company is the ultimate parent to below entities which are subsidiaries of Hela Clothing (Private) Limited and 
Foundation Garments (Private) Limited.	
Name of entity
Place of 
business / 
country of
Immediate  
parent
Ownership interest 
held by the Group
Ownership interest 
held by non-controlling 
interests
incorporation
2023
2022
2023
2022
Hela USA Inc.
USA
Hela 
Clothing 
(Private) 
Limited
100%
100%
-
-
Hela Indochine Apparel Private Limited 
Company
Ethiopia
51%
51%
49%
49%
Alpha Textile (Private) Limited
Sri Lanka
100%
100%
-
-
Foundation Garments (Private) Limited
Sri Lanka
100%
100%
-
-
F D N Sourcing (Private) Limited
Sri Lanka
100%
100%
-
-
Hela Investment Holdings Limited
Mauritius
Foundation 
Garments 
(Private) 
Limited
100%
100%
-
-
Hela Intimates EPZ Limited
Kenya
100%
100%
-
-
Jinadasa Bennett (Private) Limited
Sri Lanka
100%
100%
-
-
Foundation Bennett (Private) Limited
Sri Lanka
100%
100%
-
-
Hela Clothing Egypt SAE
Egypt
99%
99%
1%
1%

208  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
12	
INTERESTS IN OTHER ENTITIES CONTD.
(c) 	
Non-controlling interests (NCI)
	
Non-controlling interest which represents the portion of profit or loss and net assets not held by the Group, are 
shown as a component of profit for the year in the statement of profit or loss and other comprehensive income and 
as a component of equity in the statement of financial position, separately from equity attributable to owners of the 
Company. The following table summarises the information relating to Hela Indochine Apparel (Private) Limited and Hela 
Clothing Egypt SAE that has material non-controlling interest, before any intra-group eliminations.
Summarised statement of
financial position - 31 March	
Hela Clothing 
Egypt SAE
Hela Indochine Apparel 
(Private) Limited (Ethiopia)
Total
2023
2022
2023
2022
2023
2022
Current assets
 2,625,584 
 1,035,947 
 1,060,094 
 434,010 
 3,685,678 
 1,469,957 
Current liabilities
 (3,645,347)
 (1,442,555)
 (844,777)
 (413,812)
 (4,490,124)
 (1,856,367)
Net current assets
 (1,019,763)
 (406,608)
 215,317 
 20,198 
 (804,446)
 (386,410)
Non-current assets
 1,275,994 
 221,406 
 425,773 
 301,364 
 1,701,767 
 522,770 
Non-current liabilities
 (625,412)
 -   
 - 
 -   
 (625,412)
 -   
Net non-current assets
 650,582 
 221,406 
 425,773 
 301,364 
 1,076,355 
 522,770 
Net assets
 (369,181)
 (185,202)
 641,090 
 321,562 
 271,909 
 136,360 
Accumulated NCI
 6,464 
 8,530 
 309,927 
 141,992 
 316,391 
 150,522 
Summarised statement of 
comprehensive income - 31 March
Hela Clothing 
Egypt SAE
Hela Indochine Apparel 
(Private) Limited (Ethiopia)
Total
2023
2022
2023
2022
2023
2022
Revenue
 3,019,129 
 613,424 
 1,889,868 
 1,213,151 
 4,908,997 
 1,826,575 
(Loss)/ profit for the year
 (206,612)
 (132,562)
 342,725 
 (4,191)
 136,113 
 (136,753)
Other comprehensive income
 -   
 -   
 -   
 -   
 - 
 - 
Total comprehensive income
 (206,612)
 (132,562)
 342,725 
 (4,191)
 136,113 
 (136,753)
(Loss)/ profit allocated to NCI
 (2,066)
 (1,326)
 167,935 
 (2,054)
 165,869 
 (3,380)
(d) 	
Investments in equity accounted investees
	
The movement of investments accounted using equity methods are as follows;
2023
2022
Balance as at 1 April 
 320,407 
 -   
Acquired during the year
 -   
 315,091 
Share of loss of equity accounted investees, net of tax
 (69,315)
 (91,516)
Exchange equalisation reserve
 37,233 
 96,832 
Balance as at 31 March
 288,325 
 320,407 
	
Nature of investment in joint ventures;
Name of entity	
	
	
Place of business /country of  
incorporation
Ownership interest held  
by the Group
Sumbiri Intimate Apparel Private 
Limited Company
Ethiopia
27%
Safeguard Workwear EPZ Limited
Kenya 
50%
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  209
	
Hela Investment Holdings Limited, an indirect subsidiary of the Group, has acquired 27% shareholding of Sumbiri 
Intimate Apparel (Private) Limited Company ( “the JV company”) as at 31 March 2023. Foundation Garments (Private) 
Limited (Indirect Subsidiary) jointly operates and manages the JV company with the other shareholder. According to 
the joint venture agreement, Hela Investment Holdings Limited is to increase the investment in share capital of the JV 
company up to 50%. Sumbiri Intimate Apparel (Private) Limited is identified as a joint venture investment based on the 
joint control clauses in the JV agreement.
	
Hela Apparel Holdings PLC holds 50% shareholding of Safeguard Workwear EPZ Limited ( “the JV company”) as at 31 
March 2023. The Group jointly operates and manages the JV company with the other shareholder. According to the 
joint venture agreement, Safeguard Workwear EPZ Limited is identified as a joint venture investment based on the joint 
control clauses in the JV agreement.
 
Summarised financial information of joint venture entities.
Summarised statement of financial position
Sumbiri Intimate Apparel 
(Private) Limited Company
Safeguard Workwear EPZ 
Limited
31 March
2023
2022
2023
2022
Cash and cash equivalents 
 29,671 
 98,655 
 -   
 -   
Other current assets (excluding cash) 
 274,761 
 181,028 
 16,750 
 15,873 
Total current assets 
 304,432 
 279,683 
 16,750 
 15,873 
Financial liabilities (excluding trade payables) 
 327,010 
 115,627 
 262,085 
 226,148 
Other current liabilities (including trade payables) 
 237,532 
 219,268 
 4,789 
 4,027 
Total current liabilities
 564,542 
 334,895 
 266,874 
 230,175 
Net current assets
 (260,110)
 (55,212)
 (250,124)
 (214,302)
Non-current assets
 589,521 
 617,555 
 67,923 
 70,558 
Non-current financial liabilities 
 306,296 
 317,089 
 -   
 -   
Non-current other liabilities 
 -   
 -   
 -   
 -   
Non-current liabilities
 306,296 
 317,089 
 - 
 - 
Net non-current assets
 (566,406)
 (372,301)
 (250,124)
 (214,302)
Net assets
 23,115 
 245,254 
 (182,201)
 (143,744)
Summarised statement of comprehensive income
Sumbiri Intimate Apparel 
(Private) Limited Company
Safeguard Workwear EPZ 
Limited
31 March
2023
2022
2023
2022
Revenue
 893,434 
 778,270 
 1,384 
 7,364 
Depreciation and amortisation
 54,014 
 25,498 
 -   
 -   
Finance income
 -   
 -   
 -   
 -   
Finance cost
 -   
 -   
 668 
 508 
(Loss) before income tax
 (256,737)
 (166,736)
 (33,319)
 (100,494)
Income tax expense
 -   
 -   
 -   
 -   
(Loss) for the year
 (256,737)
 (166,736)
 (33,319)
 (100,494)
Loss allocated to Hela Apparal Holdings PLC
 (69,315)
 (41,269)
 -   
 (50,247)

210  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
13	
CONTINGENT LIABILITIES	
	
The following  are the corporate guarantees  as of statement of financial position date.	
	
Liability Due by
Guarantee or 
contingent liability 
taken on behalf of 
Financial Institution
Nature of the  
liability
2023
(LKR' 000)
Hela Clothing 
(Private) Limited
Hela Investments 
Holdings Limited
 Bank of Ceylon 
Corporate Guarantee - USD
 7,000 
Foundation Garments 
(Private) Limited
Corporate Guarantee - USD
 11,307 
DFCC Bank PLC
Corporate Guarantee - USD
 13,943 
Commercial Bank of Ceylon PLC
Corporate Guarantee - USD
 3,000
People's Bank PLC
Corporate Guarantee - USD
 6,500 
People's Bank PLC
Corporate Guarantee - LKR
 917 
Hela Apparel 
Holdings PLC
DFCC Bank PLC
Corporate Guarantee - USD
 3,000 
 National Development Bank PLC 
Corporate Guarantee - USD
 9,824 
Hela Clothing (Private) 
Limited
Corporate Guarantee - USD
 4,200
Commercial Bank of Ceylon PLC
Corporate Guarantee - USD
 1,000 
Foundation Garments 
(Private) Limited
Hela Investments 
Holdings Limited
National Development Bank PLC
Corporate Guarantee - USD
 1,000 
Bank of Ceylon
Corporate Guarantee - USD
 10,000 
Hela Clothing (Private) 
Limited
Commercial Bank of Ceylon PLC
Corporate Guarantee - USD
 4,800 
Hatton National Bank PLC
Corporate Guarantee - USD
 456 
14	
COMMITMENTS
	
There were no capital / financial commitments as at 31 March 2023.
15	
EVENTS AFTER THE REPORTING PERIOD
	
On 1st August 2023, 7,425,627 ordinary voting shares were issued under the share ownership plan and accordingly 
the stated capital of the Company increased to LKR 5,746,178,507 consisting of 1,317,381,560 ordinary voting shares. 
Furthermore, the management is not aware of any other.
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  211
16	
RELATED PARTY TRANSACTIONS
(a)	
Parent entities
	
The Company is the ultimate parent of the Group.
(b)  	
Subsidiaries
	
Interests in subsidiaries are set out in note 12(a).	
(c)   	
Directors and key management personnel compensation		
Group
Company
2023
2022
2023
2022
Short-term employee benefits
539,793
 273,820 
 -   
539,793
 273,820 
 -   
 -   
	
In addition to the above, 145,913,572 ordinary shares  were issued to eligible key management personnel.
(d)	
Outstanding balances arising from non trading activities
(i)	
Receivables from related parties
Relationship
Group
Company
2023
2022
2023
2022
Safeguard Workwear EPZ Limited
Joint venture
134,015 
 -   
 -   
 -   
Sumbiri Intimate Apparel (Private) 
Limited Company
Joint venture
126,155 
 -   
 -   
 -   
Hela Clothing (Private) Limited
Subsidiary
 -   
 -   
 14,554 
 1,617,649 
Foundation Sourcing (Private) Limited
Subsidiary
 -   
 -   
 147 
 147 
Foundation Garments (Private) Limited
Subsidiary
 -   
 -   
 -   
 1,231,883 
 260,170 
 -   
 14,701 
 2,849,679 
	
A loss allowance of LKR 69,059 was recognised in relation to receivabes from related parties during the year. No loss 
allowance was recognised in expense in 2022.
(ii)	
Payables to related parties	
Relationship
Group
Company
2023
2022
2023
2022
Hela Intimates EPZ Limited
Subsidiary
 -   
 -   
 -   
 1,540 
Sumbiri Intimate Apparel (Private) 
Limited Company
Joint venture
 38,219 
 -   
 -   
 -   
Foundation Garments (Private) Limited
Subsidiary
 -   
 -   
 16,802 
 -   
 38,219 
 -   
 16,802 
 1,540 
(e)	
Terms and conditions
	
Transactions relating to dividends and subscriptions for new ordinary shares were on the same terms and conditions 
that applied to other shareholders.
	
Cut and make charges within the group are decided based on the arms length price. All other transactions with related 
parties were made on normal commercial terms and conditions.
	
Loans provided in USD at interest 2.0% accrued on monthly basis to the respective subsidiaries. And the loans are short 
term in nature.

212  Hela Apparel Holdings PLC | Annual Report 2022/23
17	
(LOSS)/ EARNINGS PER SHARE
(a) 	
Basic earnings / (loss) per share
Group
Company
2023
2022
2023
2022
(Loss)/ earnings attributable to equity of holders of the 
Company
 (3,498,317)
 584,044 
 (812,721)
 (1,421,014)
Weighted average number of the ordinary shares  
used as the denominator
 1,309,956 
 1,079,837 
 1,309,956 
 1,079,837 
Basic (loss)/ earnings per share attributable to equity 
holders of the Company
 (2.67)
 0.54 
 (0.62)
 (1.32)
(b) 	
Diluted (loss)/ earnings per share 	
	
	
	
	
	
Group
Company
2023
2022
2023
2022
(Loss)/ profit attributable to equity of holders of the 
Company
 (3,498,317)
 584,044 
 (812,721)
 (1,421,014)
Weighted average number of the ordinary shares  
used as the denominator
1,317,382 
1,094,101 
1,317,382 
1,094,101 
Diluted (loss)/ earnings per share attributable to the 
equity holders of the Company
 (2.66)
 0.53 
 (0.62)
 (1.30)
(c) 	
Weighted average number of shares used as the denominator	
	
Group
Company
2023
2022
2023
2022
Weighted average number of ordinary shares used as 
the denominator in calculating basic earnings per share
 1,309,956 
 1,079,837 
 1,309,956 
 1,079,837 
Adjustments for calculation of diluted earnings per 
share:
 7,426 
 14,264 
 7,426 
 14,264 
Weighted average number of ordinary shares and 
potential ordinary shares used as the denominator in 
calculating diluted earnings per share
 1,317,382 
 1,094,101 
 1,317,382 
 1,094,101 
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  213
18	
GENERAL INFORMATION
	
Hela Apparel Holdings PLC is engaged in providing 
consultancy and support services to group companies. 
The Group is engaged in the manufacture of apparel 
for export market and in providing front-end services 
to foreign customers. The Company is a public 
limited liability company incorporated on 11 October 
2018 and listed on the Colombo Stock Exchange 
on 7 February 2022. It is domiciled in Sri Lanka and 
bears the registration number PQ00205151 under 
the Companies Act No.07 of 2007. The address of 
the registered office and the principal place of the 
business is, No 35 Balapokuna Road, Colombo 06,  
Sri Lanka.
Name of the entity
Place of business
Principle activities
Hela Clothing (Private) Limited 
Sri Lanka
Manufacturing garments for export market
Foundation Garments (Private) Limited
Sri Lanka
Manufacturing garments for export market
F D N Sourcing (Private) Limited
Sri Lanka
Providing front end services
Hela Intimates EPZ Limited
Kenya
Manufacturing garments for exporters
Alpha Textile (Private) Limited
Sri Lanka
Dormant company
Jinadasa Bennett (Private) Limited
Sri Lanka
Dormant company
Foundation Bennett (Private) Limited
Sri Lanka
Dormant company
Hela Investment Holdings Limited
Mauritius
Engaged in employment and trading services and to 
act as an investment holding company
Hela USA Inc.
USA
Design and marketing office for inter-companies
Hela Indochine Apparel Private Limited 
Company
Ethiopia
Engaged in manufacturing of garments including 
sportswear
Hela Clothing Egypt SAE
Egypt 
Manufacturing garments for exporters
19	
GOING CONCERN
	
The Directors have made an assessment of the 
Group's ability to continue as a going concern and 
are satisfied that it has the resources to continue in 
business for the foreseeable future.
	
In determining the basis of preparing the Financial 
Statements for the period ended 31 March 2023, 
based on available information, the management has 
assessed the existing and anticipated effects of the 
prevailing economic conditions in Sri Lanka on the 
Group and the appropriateness of the use of the going 
concern basis.
	
To counter the effects of both events, the Group has 
evaluated the resilience of its businesses considering 
a wide range of factors under multiple stress tested 
scenarios relating to expected revenue streams, cost 
management, and the ability to defer non-essential 
capital expenditure. The Group's current reserves 
and financing facilities are sufficient to ensure the 
continuation of the business and the management 
believes that additional cost savings and cash 
conservation measures where needed will secure the 
Group's ability to continue as a going concern.
	
Furthermore, the Management is not aware of any 
other material uncertainties that may cast significant 
doubt on the Group's ability to continue as a going 
concern. Therefore, the Financial Statements continue 
to be prepared on a going concern basis.
20	
SUMMARY OF SIGNIFICANT ACCOUNTING 
POLICIES
	
This note provides a list of the significant accounting 
policies adopted in the preparation of these 
consolidated financial statements to the extent they 
have not already been disclosed in the other notes 
above. These policies have been consistently applied 
to all the years presented, unless otherwise stated. 
The financial statements are for the Group consisting 
of Hela Apparel Holdings PLC and its subsidiaries.
(a)	
Basis of preparation
(i) 	
Compliance with Sri Lanka Accounting Standards 
(SLFRSs)
	
The consolidated financial statements of the 
Group and the separate financial statements of the 
Company have been prepared in accordance with 
Sri Lanka Accounting Standards, which comprise 
Sri Lanka Financial Reporting Standards (“SLFRSs”),

214  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
Sri Lanka Accounting Standards (“LKASs”), relevant 
interpretations of the Standing Interpretations 
Committee (“SIC”) and International Financial 
Reporting Interpretations Committee (“IFRIC”). The 
preparation of financial statements in conformity with 
Sri Lanka Accounting Standards requires the use of 
certain critical accounting estimates. It also requires 
management to exercise its judgment in the process of 
applying the Group’s and the Company's accounting 
policies. The areas involving a higher degree of 
judgment or complexity, or areas where assumptions 
and estimates are significant to the Group’s and the 
Company's financial statements are disclosed in note 9 
to the financial statements.
(ii) 	
Historical cost convention
	
The financial statements have been prepared on a 
historical cost basis, except for the following:
	
- 	 Investment property – measured at fair value
	
- 	 Derivative financial instruments – measured at fair 
value	 	
	
- 	 Defined benefit plans - actuary valued and 
recognised at present value
	
- 	 Freehold land and building measured at fair value
(iii) 	
New and amended standards adopted by the Group
	
-	
Amendment to LKAS 16, Property, Plant and 
Equipment
	
	
Proceeds before intended use –this amendment 
prohibits an entity from deducting from the 
cost of an item of PP&E any proceeds received 
from selling items produced while the entity is 
preparing the asset for its intended use. It also 
clarifies that an entity is ‘testing whether the 
asset is functioning properly’ when it assesses 
technical and physical performance of the asset. 
The financial performance of the asset is not 
relevant to this assessment. Entities must disclose 
separately the amounts of proceeds and costs 
relating to items produced that are not an output 
of the entity’s ordinary activities.
	
- 	 Amendments to SLFRS 3, Reference to the 
Conceptual Framework
	
	
Minor amendments were made to SLFRS 3 Business 
Combinations to update the references to the 
Conceptual Framework for Financial Reporting 
and to add an exception for the recognition of 
liabilities and contingent liabilities within the scope 
of LKAS 37 Provisions, Contingent Liabilities and 
Contingent Assets and Interpretation 21 Levies. The 
amendments also confirm that contingent assets 
should not be recognised at the acquisition date.
	
- 	 Amendments to LKAS 37, Onerous Contracts – 
Cost of Fulfilling a Contract 
	
	
The amendment to LKAS 37 clarifies that the 
direct costs of fulfilling a contract include both the 
incremental costs of fulfilling the contract and an 
allocation of other costs directly related to fulfilling 
contracts. Before recognising a separate provision 
for an onerous contract, the entity recognises any 
impairment loss that has occurred on assets used 
in fulfilling the contract.
	
- 	 Annual Improvements to SLFRS Standards 2018–
2020
-	
SLFRS 9 Financial Instruments – clarifies which 
fees should be included in the 10% test for 
derecognition of financial liabilities. 
-	
SLFRS 16 Leases – amendment of illustrative 
example 13 to remove the illustration of 
payments from the lessor relating to leasehold 
improvements, to remove any confusion about 
the treatment of lease incentives. 
-	
SLFRS 1 First-time Adoption of International 
Financial Reporting Standards – allows 
entities that have measured their assets and 
liabilities at carrying amounts recorded in their 
parent’s books to also measure any cumulative 
translation differences using the amounts 
reported by the parent. This amendment will 
also apply to associates and joint ventures that 
have taken the same SLFRS 1 exemption. 
(iv) 	
New standards and interpretations not yet adopted
	
Certain new accounting standards and interpretations 
have been published that are not mandatory for 31 
March 2023 reporting periods and have not been early 
adopted by the Group. The following standards are not 
expected to have a material impact on the entity in the 
current or future reporting periods and on foreseeable 
future transactions.
	
- 	 SLFRS 17, ‘Insurance contracts’
	
- 	 Amendments to LKAS 1 - Classification of 
Liabilities as Current or Non-current
	
- 	 Amendments to LKAS 1 - Disclosure Initiative: 
Accounting Policies
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  215
	
- 	 Amendments to LKAS 8 - Definition of Accounting 
Estimates
	
- 	 Amendment to LKAS 12 - Deferred tax related 
to assets and liabilities arising from a single 
transaction
(v) 	
Comparative information
	
The accounting policies have been consistently applied 
by the Group and are consistent with those used 
in the previous year. Certain prior year figures and 
phases are rearranged whenever necessary to conform 
to the current year presentation.
	
The group has reclassified LKR 34.5Mn, the IPO 
transaction cost which was previously deducted 
from stated capital to retained earnings to be in 
line with the definition of Stated Capital as per 
the Companies Act no 7 of 2007.
(b)	
Principles of consolidation	
(i) 	
Subsidiaries	
	
Subsidiaries are all entities (including structured 
entities) over which the group has control. The group 
controls an entity when the group is exposed to, or 
has rights to, variable returns from its involvement 
with the entity and has the ability to affect those 
returns through its power to direct the activities of the 
entity. Subsidiaries are fully consolidated from the date 
on which control is transferred to the group. They are 
deconsolidated from the date that control ceases.
	
The Group applies the acquisition method to account 
for business combinations. The consideration 
transferred for the acquisition of a subsidiary is the fair 
values of the assets transferred, the liabilities incurred 
to the former owners of the acquiree and the equity 
interests issued by the Group. The consideration 
transferred includes the fair value of any asset or liability 
resulting from a contingent consideration arrangement. 
Identifiable assets acquired and liabilities and contingent 
liabilities assumed in a business combination are 
measured initially at their fair values at the acquisition 
date. The Group recognises any non-controlling interest 
in the acquiree on an acquisition-by-acquisition basis, 
either at fair value or at the non-controlling interest’s 
proportionate share of the recognised amounts of 
acquiree’s identifiable net assets.
	
Acquisition-related costs are expensed as incurred. If the 
business combination is achieved in stages, the acquisition 
date carrying value of the acquirer’s previously held equity 
interest in the acquiree is re-measured to fair value at the 
acquisition date; any gains or losses arising from such re-
measurement are recognised in profit or loss.
	
Any contingent consideration to be transferred by the 
Group is recognised at fair value at the acquisition 
date. Subsequent changes to the fair value of the 
contingent consideration that is deemed to be an 
asset or liability is recognised in accordance with LKAS 
39 either in profit or loss or as a change to other 
comprehensive income. Contingent consideration 
that is classified as equity is not re-measured, and its 
subsequent settlement is accounted for within equity.
	
The excess of the consideration transferred, the 
amount of any non-controlling interest in the acquiree 
and the acquisition-date fair value of any previous 
equity interest in the acquiree over the fair value of 
the identifiable net assets acquired is recorded as 
goodwill. If the total of consideration transferred, 
non-controlling interest recognised and previously 
held interest measured is less than the fair value of the 
net of the subsidiary acquired in the case of a bargain 
purchase, the difference is recognised directly in the 
income statement.
	
Inter-company transactions, balances, income and 
expenses on transactions between group companies 
are eliminated. Profits and losses resulting from 
intercompany transactions that are recognised in assets 
are also eliminated. Accounting policies of subsidiaries 
have been changed where necessary to ensure 
consistency with the policies adopted by the Group.
(ii)	
Changes in ownership Investments in subsidiaries 
without change of control
	
Transactions with non-controlling interests that do not 
result in loss of control are accounted for as equity 
transactions – that is, as transactions with the owners 
in their capacity as owners. The difference between 
fair value of any consideration paid and the relevant 
share acquired of the carrying value of net assets of 
the subsidiary is recorded in equity. Gains or losses on 
disposals to non-controlling interests are also recorded 
in equity.

216  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes to the financial statements
(iii) 	
Disposal of subsidiaries
	
When the Group ceases to have control any retained 
interest in the entity is remeasured to its fair value 
at the date when control is lost, with the change in 
carrying amount recognised in profit or loss. The fair 
value is the initial carrying amount for the purposes 
of subsequently accounting for the retained interest 
as an associate, joint venture or financial asset. In 
addition, any amounts previously recognised in other 
comprehensive income in respect of that entity are 
accounted for as if the Group had directly disposed 
of the related assets or liabilities. This may mean that 
amounts previously recognised in other comprehensive 
income are reclassified to profit or loss.	
(iv) 	
Associates
	
Associates are all entities over which the group 
has significant influence but not control or joint 
control. This is generally the case where the group 
holds between 20% and 50% of the voting rights. 
Investments in associates are accounted for using the 
equity method of accounting (see (vi) below), after 
initially being recognised at cost.
(v) 	
Joint arrangements
	
Under SLFRS 11 Joint Arrangements investments 
in joint arrangements are classified as either joint 
operations or joint ventures. The classification 
depends on the contractual rights and obligations of 
each investor, rather than the legal structure of the 
joint arrangement. Hela Apparel Holdings PLC has 
assessed the nature of its joint arrangements and 
determined them to be joint ventures. Joint ventures 
are accounted for using the equity method.
	
Interests in joint ventures are accounted for using 
the equity method (see (vi) below), after initially being 
recognised at cost in the consolidated balance sheet.
(vi) 	
Equity method
	
Under the equity method of accounting, the 
investments are initially recognised at cost and 
adjusted thereafter to recognise the group’s share of 
the post-acquisition profits or losses of the investee 
in profit or loss, and the group’s share of movements 
in other comprehensive income of the investee in 
other comprehensive income. Dividends received 
or receivable from associates and joint ventures are 
recognised as a reduction in the carrying amount of the 
investment.
	
When the group’s share of losses in an equity-
accounted investment equals or exceeds its interest 
in the entity, including any other unsecured long-term 
receivables, the group does not recognise further 
losses, unless it has incurred obligations or made 
payments on behalf of the other entity.	
	
Unrealised gains on transactions between the group 
and its associates and joint ventures are eliminated 
to the extent of the group’s interest in these entities. 
Unrealised losses are also eliminated unless the 
transaction provides evidence of an impairment of 
the asset transferred. Accounting policies of equity 
accounted investees have been changed where 
necessary to ensure consistency with the policies 
adopted by the group.
(c)	
Foreign currency translation
(i) 	
Functional and presentation currency
	
The consolidated financial statements are presented 
in Sri Lankan Rupees (LKR) which is the Group and 
Company’s presentation currency. The functional 
currency of the Group and Company is US Dollars 
(USD) as it is the currency of the primary economic 
environment in which the entities of the Group 
operate. The USD was determined to be the 
functional currency because;
	
- 	 It is the currency that mainly influences sales prices 
for goods and services which are denominated and 
settled in USD
	
- 	 It is the currency that mainly influences material 
costs of providing goods and services, the currency 
in which such costs are denominated and settled in 
USD. 
(ii) 	
Transactions and balances
	
Foreign currency transactions are translated into the 
functional currency using the exchange rates at the 
dates of the transactions. Foreign exchange gains 
and losses resulting from the settlement of such 
transactions and from the translation of monetary 
assets and liabilities denominated in foreign currencies 
at year end exchange rates are generally recognised in 
profit or loss. They are deferred in equity if they relate 
to qualifying cash flow hedges and qualifying net 
investment hedges or are attributable to part of the 
net investment in a foreign operation.
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  217
	
Foreign exchange gains and losses that relate to 
borrowings are presented in the statement of profit or 
loss, within finance costs. All other foreign exchange 
gains and losses are presented in the statement of profit 
or loss on a net basis within other gains / (losses).
	
Non-monetary items that are measured at fair value in a 
foreign currency are translated using the exchange rates at 
the date when the fair value was determined. Translation 
differences on assets and liabilities carried at fair value are 
reported as part of the fair value gain or loss. 
(iii) 	
Translation from functional currency to presentation 
currency
	
Transactions and balances measured in US Dollars are 
translated to Sri Lanka rupees based on the Sri Lanka 
Accounting Standard 21, "The Effects of Changes in 
Foreign Exchange Rates", as follows:
(a)	
Assets and Liabilities presented including comparatives 
are translated at the closing rate existed at the date of 
each statement of financial position presented.
(b)	
Income and expense items for all periods presented 
(i.e. including comparatives) are translated at an annual 
average exchange rate applicable for respective years.
(c)	
Share capital is translated at the exchange rate existing 
at the date of transaction.
(d)	
All resulting exchange differences are recognised in 
equity under exchange equalisation reserves.
	
On consolidation, exchange differences arising from 
the translation of any net investment in foreign 
entities, and of borrowings and other financial 
instruments designated as hedges of such investments, 
are recognised in other comprehensive income. When 
a foreign operation is sold or any borrowings forming 
part of the net investment are repaid, the associated 
exchange differences are reclassified to profit or loss, 
as part of the gain or loss on sale.
	
Goodwill and fair value adjustments arising on the 
acquisition of a foreign operation are treated as assets 
and liabilities of the foreign operation and translated at 
the closing rate.
(d)	
Revenue recognition
	
The accounting policies for the Group’s revenue from 
contracts with customers are explained in note 2.
(e)	
Income tax
	
The income tax expense or credit for the period is the 
tax payable on the current period’s taxable income 
based on the applicable income tax rate for each 
jurisdiction adjusted by changes in deferred tax assets 
and liabilities attributable to temporary differences and 
to unused tax losses.
	
The current income tax charge is calculated on 
the basis of the tax laws enacted or substantively 
enacted at the end of the reporting period in the 
countries where the Group’s subsidiaries operate and 
generate taxable income. Management periodically 
evaluates positions taken in tax returns with respect to 
situations in which applicable tax regulation is subject 
to interpretation. It establishes provisions where 
appropriate on the basis of amounts expected to be 
paid to the tax authorities.
	
Deferred tax is provided in full, using the liability 
method, on temporary differences arising between 
the tax bases of assets and liabilities and their carrying 
amounts in the consolidated financial statements. 
However, deferred tax liabilities are not recognised 
if they arise from the initial recognition of goodwill. 
Deferred income tax is also not accounted for if it 
arises from initial recognition of an asset or liability in a 
transaction other than a business combination that at 
the time of the transaction affects neither accounting 
nor taxable profit or loss. Deferred tax is determined 
using tax rates (and laws) that have been enacted or 
substantially enacted by the end of the reporting period 
and are expected to apply when the related deferred 
tax asset is realised or the deferred tax liability is settled.
	
The deferred tax liability in relation to investment property 
that is measured at fair value is determined assuming the 
property will be recovered entirely through sale.
	
Deferred tax assets are recognised for all deductible 
temporary differences, and unused tax credits and tax 
losses carried forward, to the extent that it is probable 
that taxable profit will be available against which the 
deductible temporary differences and the unused tax 
credits and tax losses carried forward can be utilised.
	
Deferred tax liabilities and assets are not recognised 
for temporary differences between the carrying 
amount and tax bases of investments in foreign 
operations where the company is able to control the 
timing of the reversal of the temporary differences and 
it is probable that the differences will not reverse in 
the foreseeable future.

218  Hela Apparel Holdings PLC | Annual Report 2022/23
	
Deferred tax assets and liabilities are offset when 
there is a legally enforceable right to offset current 
tax assets and liabilities and when the deferred tax 
balances relate to the same taxation authority. Current 
tax assets and tax liabilities are offset where the entity 
has a legally enforceable right to offset and intends 
either to settle on a net basis, or to realise the asset 
and settle the liability simultaneously.
	
Current and deferred tax is recognised in profit or loss, 
except to the extent that it relates to items recognised in 
other comprehensive income or directly in equity. In this 
case, the tax is also recognised in other comprehensive 
income or directly in equity, respectively.
(i) 	
Investment allowances and similar tax incentives
	
Companies within the Group may be entitled to claim 
special tax deductions for investments in qualifying 
assets or in relation to qualifying expenditure. The 
Group accounts for such allowances as tax credits, 
which means that the allowance reduces income tax 
payable and current tax expense. A deferred tax asset 
is recognised for unclaimed tax credits that are carried 
forward as deferred tax assets.
(f)	
Leases
	
The Group’s leasing policy is described in note 6(b)
(g)	
Cash and cash equivalents
	
For the purpose of presentation in the statement of 
cash flows, cash and cash equivalents includes cash in 
hand, deposits held at call with financial institutions, 
other short-term, highly liquid investments with 
original maturities of three months or less that are 
readily convertible to known amounts of cash and 
which are subject to an insignificant risk of changes in 
value, and bank overdrafts. Bank overdrafts are shown 
within borrowings in current liabilities in the statement 
of financial position.
(h)	
Trade receivables
	
Trade receivables are recognised initially at fair value 
and subsequently measured at amortised cost using 
the effective interest method, less provision for 
impairment. See note 5(a) for further information 
about the Group’s accounting for trade receivables and 
note 10(c) for a description of the Group’s impairment 
policies.
(i)	
Segment reporting
	
The Group’s segment reporting policy is described in 
note 1(i).
(j)	
Inventories
(i) 	
Raw materials, work in progress and finished goods
	
Raw materials, work in progress and finished goods 
are stated at the lower of cost and net realisable 
value. Cost comprises direct materials, direct labour 
and an appropriate proportion of variable and fixed 
overhead expenditure, the latter being allocated on 
the basis of normal operating capacity. Cost includes 
the reclassification from equity of any gains or losses 
on qualifying cash flow hedges relating to purchases 
of raw materials but excludes borrowing costs and 
are assigned to individual items of inventory on the 
basis of standard costs. Costs of purchased inventory 
are determined after deducting rebates and discounts 
and are assigned. Net realisable value is the estimated 
selling price in the ordinary course of business less the 
estimated costs of completion and the estimated costs 
necessary to make the sale.
(ii) 	
Provision for slow moving inventory
	
A provision for slow moving inventories is recognised 
based on the best estimates available to management 
on their future usability. As Management uses 
historical information as the basis to determine the 
future usability and recoverability, actual future losses 
on inventories could vary from the provision made in 
these financial statements.
(k)	
Non-current assets (or disposal groups) held for sale 
and discontinued operations 
	
Non-current assets (or disposal groups) are classified 
as held for sale if their carrying amount will be 
recovered principally through a sale transaction rather 
than through continuing use and a sale is considered 
highly probable. They are measured at the lower of 
their carrying amount and fair value less costs to sell, 
except for assets such as deferred tax assets, assets 
arising from employee benefits, financial assets and 
investment property that are carried at fair value.
	
An impairment loss is recognised for any initial or 
subsequent write-down of the asset (or disposal group) 
to fair value less costs to sell. A gain is recognised for 
any subsequent increases in fair value less costs to sell 
of an asset (or disposal group), but not in excess of any 
cumulative impairment loss previously recognised. A 
gain or loss not previously recognised by the date of 
the sale of the non-current asset (or disposal group) is 
recognised at the date of derecognition.
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  219
	
Non-current assets (including those that are part of 
a disposal group) are not depreciated or amortised 
while they are classified as held for sale. Interest 
and other expenses attributable to the liabilities of a 
disposal group classified as held for sale continue to be 
recognised.
	
Non-current assets classified as held for sale and the 
assets of a disposal group classified as held for sale 
are presented separately from the other assets in 
the statement of financial position. The liabilities of a 
disposal group classified as held for sale are presented 
separately from other liabilities in the statement of 
financial position.
	
A discontinued operation is a component of the entity 
that has been disposed of or is classified as held 
for sale and that represents a separate major line of 
business or geographical area of operations, is part 
of a single coordinated plan to dispose of such a line 
of business or area of operations, or is a subsidiary 
acquired exclusively with a view to resale. The results 
of discontinued operations are presented separately in 
the statement of profit or loss.
(l)	
Investments and other financial assets
(i) 	
Classification
	
The Group classifies its financial assets in the following 
measurement categories:
	
- 	 those to be measured subsequently at fair value 
(either through OCI or through profit or loss), and
	
- 	 those to be measured at amortised cost.
	
The classification depends on the entity’s business 
model for managing the financial assets and the 
contractual terms of the cash flows. This assessment 
is referred to as the Solely Payment of Principle and 
Interest (SPPI) test and is performed at an instrument 
level. The business model determines whether cash 
flows will result from collecting contractual cash flows, 
selling the financial assets, or both. With the exception 
of trade receivables that do not contain a significant 
financing component or for which the Group has 
applied the practical expedient are measured at the 
transaction price.
	
For assets measured at fair value, gains and losses 
will either be recorded in profit or loss or OCI. For 
investments in equity instruments that are not held 
for trading, this will depend on whether the Group 
has made an irrevocable election at the time of initial 
recognition to account for the equity investment at fair 
value through other comprehensive income (FVOCI).
	
The Group reclassifies debt investments when and 
only when its business model for managing those 
assets changes.
(ii) 	
Recognition and derecognition
	
Regular way purchases and sales of financial assets are 
recognised on trade-date, the date on which the group 
commits to purchase or sell the asset. Financial assets 
are derecognised when the rights to receive cash flows 
from the financial assets have expired or have been 
transferred and the Group has transferred substantially 
all the risks and rewards of ownership.
(iii) 	
Measurement
	
At initial recognition, the Group measures a financial 
asset at its fair value plus, in the case of a financial 
asset not at fair value through profit or loss (FVPL), 
transaction costs that are directly attributable to the 
acquisition of the financial asset. Transaction costs of 
financial assets carried at FVPL are expensed in profit 
or loss.
	
Financial assets with embedded derivatives are 
considered in their entirety when determining whether 
their cash flows are solely payment of principal and 
interest.
	
Debt instruments
	
Subsequent measurement of debt instruments 
depends on the Group’s business model for managing 
the asset and the cash flow characteristics of the 
asset. There are three measurement categories into 
which the Group classifies its debt instruments:
	
- 	 Amortised cost: Assets that are held for collection 
of contractual cash flows where those cash flows 
represent solely payments of principal and interest 
are measured at amortised cost. Interest income 
from these financial assets is included in finance 
income using the effective interest rate method. 
Any gain or loss arising on derecognition is 
recognised directly in profit or loss and presented 
in other gains / (losses) together with foreign 
exchange gains and losses. Impairment losses are 
presented as separate line item in the statement of 
profit or loss.

220  Hela Apparel Holdings PLC | Annual Report 2022/23
	
- 	 FVOCI: Assets that are held for collection of 
contractual cash flows and for selling the financial 
assets, where the assets’ cash flows represent 
solely payments of principal and interest, are 
measured at FVOCI. Movements in the carrying 
amount are taken through OCI, except for the 
recognition of impairment gains or losses, interest 
income and foreign exchange gains and losses 
which are recognised in profit or loss. When the 
financial asset is derecognised, the cumulative gain 
or loss previously recognised in OCI is reclassified 
from equity to profit or loss and recognised in 
other gains / (losses). Interest income from these 
financial assets is included in finance income 
using the effective interest rate method. Foreign 
exchange gains and losses are presented in other 
gains / (losses) and impairment expenses are 
presented as separate line item in the statement of 
profit or loss.
	
- 	 FVPL: Assets that do not meet the criteria for 
amortised cost or FVOCI are measured at FVPL. 
A gain or loss on a debt investment that is 
subsequently measured at FVPL is recognised in 
profit or loss and presented net within other gains 
/ (losses) in the period in which it arises.
	
Equity instruments
	
The Group subsequently measures all equity 
investments at fair value. Where the Group’s 
management has elected to present fair value gains 
and losses on equity investments in OCI, there is no 
subsequent reclassification of fair value gains and 
losses to profit or loss following the derecognition 
of the investment. Dividends from such investments 
continue to be recognised in profit or loss as other 
income when the Group’s right to receive payments 
are established.
	
Changes in the fair value of financial assets at 
FVPL are recognised in other gains / (losses) in the 
statement of profit or loss as applicable. Impairment 
losses (and reversal of impairment losses) on equity 
investments measured at FVOCI are not reported 
separately from other changes in fair value.
(iv) 	
Impairment
	
The Group assesses on a forward looking basis 
the expected credit losses associated with its debt 
instruments carried at amortised cost and FVOCI. The 
impairment methodology applied depends on whether 
there has been a significant increase in credit risk.
	
For trade receivables, the Group applies the simplified 
approach permitted by SLFRS 9, which requires 
expected lifetime losses to be recognised from initial 
recognition of the receivables, see note 10(c) for 
further details.
(m)	
Derivative Financial Instruments and Hedge 
Accounting
(i) 	
Initial Reconginition and Subsequent Measurement
	
To hedge its foreign currency risks, the Group employs 
derivative financial instruments such as forward 
currency contracts. Derivative financial instruments 
are initially recorded at fair value on the date a 
derivative contract is entered and are then remeasured 
at fair value. When the fair value of a derivative is 
positive, it is recorded as a financial asset and financial 
liabilities with a negative fair value.
	
The Group formally designates and reports the 
hedge connection to which it desires to apply 
hedge accounting, as well as the risk management 
objective and strategy for implementing the hedge, 
at the start of the hedge. In this process comprises 
of identification of the hedge instrument, nature if 
the risk which is being hedged and how the Group 
achieves the hedge effectiveness.
	
Hedge Accunting will be effective upon satisfying the 
below criterias.
	
- 	 The hedged item and the hedging instrument have 
an economic relationship.
	
- 	 The value changes that arise from that economic 
relationship are not "dominated by the effect of 
credit risk."
	
- 	 The hedge ratio arising from the hedging 
relationship has the same value as that produced 
by the quantity of the hedged
(n)	
Financial guarantee contracts 
	
Financial guarantee contracts are recognised as a 
financial liability at the time the guarantee is issued. 
The liability is initially measured at fair value and 
subsequently at the higher of
	
- 	 the amount determined in accordance with the 
expected credit loss model under IFRS 9 Financial 
Instruments and
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  221
	
- 	 the amount initially recognised less, where 
appropriate, the cumulative amount of income 
recognised in accordance with the principles of 
IFRS 15 Revenue from Contracts with Customers.
	
The fair value of financial guarantees is determined as the 
present value of the difference in net cash flows between 
the contractual payments under the debt instrument 
and the payments that would be required without the 
guarantee, or the estimated amount that would be 
payable to a third party for assuming the obligations.
	
Where guarantees in relation to loans or other 
payables of associates are provided for no 
compensation, the fair values are accounted for as 
contributions and recognised as part of the cost of the 
investment.
(o)	
Property, plant and equipment
	
Property, plant and equipment are tangible items that 
are held for use in the production or supply of goods 
or services, or for administrative purposes and are 
expected to be used during more than one year.
	
Freehold land and buildings are shown at fair value 
based on a valuation performed by an external 
independent professional valuer. Where freehold land 
and buildings are revalued, the entire class of such 
asset is revalued. Revaluations are made with sufficient 
regularity to ensure that their carrying value do not 
differ materially from their fair value at the date of the 
balance sheet.
	
All other property, plant and equipment is stated 
at historical cost less depreciation. Historical cost 
includes expenditure that is directly attributable to 
the acquisition of the items. Cost may also include 
transfers from equity of any gains or losses on 
qualifying cash flow hedges of foreign currency 
purchases of property, plant and equipment.
	
Increases in the carrying amounts arising on 
revaluation of land and buildings are recognised, net of 
tax, in other comprehensive income and accumulated 
in reserves in shareholders’ equity. To the extent that 
the increase reverses a decrease previously recognised 
in profit or loss, the increase is first recognised in profit 
or loss. Decreases that reverse previous increases 
of the same asset are first recognised in other 
comprehensive income to the extent of the remaining 
surplus attributable to the asset; all other decreases 
are charged to profit or loss. Each year, the difference 
between depreciation based on the revalued carrying 
amount of the asset charged to profit or loss and 
depreciation based on the asset’s original cost, net 
of tax, is reclassified from the property, plant and 
equipment revaluation surplus to retained earnings.
	
Subsequent costs are included in the asset’s 
carrying amount or recognised as a separate asset, 
as appropriate, only when it is probable that future 
economic benefits associated with the item will flow to 
the Group and the cost of the item can be measured 
reliably. The carrying amount of the replaced part is 
derecognised. All other repairs and maintenance are 
charged to the income statement during the financial 
period in which they are incurred.
	
Land is not depreciated as it is deemed to have 
an indefinite life. Depreciation on other assets is 
calculated using the straight-line method to allocate 
their cost or revalued amounts to their residual values 
over their estimated useful lives, as follows:
Category of fixed assets
Useful life
Buildings
30 years
Leasehold improvements
10 years
Plant and machinery
10 years
Motor vehicles
5 years
Furniture and fittings
10 years
Computer hardware
5 years
Tools and molds
5 years
Factory and sports equipment
5 years
Electrical equipment and 
installations
10 years
Computer software
3 years
	
The asset's residual values, useful lives and methods of 
depreciation are reviewed, and adjusted if appropriate, 
at each financial year end.
	
Where the carrying amount of an asset is greater than 
its estimated recoverable amount, it is written down 
immediately to its recoverable amount.

222  Hela Apparel Holdings PLC | Annual Report 2022/23
	
An item of property, plant and equipment is 
derecognised upon disposal or when no future 
economic benefits are expected from its use or 
disposal. Any gain or loss arising on de-recognition of 
the asset (calculated as the difference between the 
net disposal proceeds and the carrying amount of the 
asset) is included in the statement of profit or loss in 
the year the asset is derecognised.
	
When revalued assets are derecognised the amount 
included in revaluation reserve are transferred to 
retained earnings.
(p)	
Investment properties
	
Investment properties are measured initially at cost, 
including transaction costs. The carrying value of an 
investment property includes the cost of replacing 
part of an existing investment property, at the time 
that cost is incurred if the recognition criteria are met 
and excludes the costs of day to day servicing of the 
investment property. Subsequent to initial recognition, 
the investment properties are stated at fair values, 
which reflect market conditions at the reporting date. 
Gains or losses arising from changes in fair value are 
included in the income statement in the year in which 
they arise. 
	
Investment properties are derecognised when 
disposed, or permanently withdrawn from use because 
no future economic benefits are expected. Any gains 
or losses on retirement or disposal are recognised 
in the income statement in the year of retirement or 
disposal.
	
Transfers are made to or from investment property 
only when there is a change in use for a transfer from 
investment property to owner occupied property, the 
deemed cost for subsequent accounting is the fair 
value at the date of change in use. If owner-occupied 
property becomes an investment property, the Group 
accounts for such property in accordance with the 
policy stated under property, plant and equipment up 
to the date of change in use. Where Group companies 
occupy a significant portion of the investment 
property of a subsidiary, such investment properties 
are treated as property, plant and equipment in the 
consolidated financial statements, and accounted 
for using accounting policy for property, plant and 
equipment.
(q)	
Intangible assets
(i) 	
Goodwill
	
Goodwill is measured as described in note 6(d)(i). 
Goodwill on acquisitions of subsidiaries is included 
in intangible assets. Goodwill is not amortised but it 
is tested for impairment annually, or more frequently 
if events or changes in circumstances indicate that 
it might be impaired, and is carried at cost less 
accumulated impairment losses. Gains and losses on 
the disposal of an entity include the carrying amount 
of goodwill relating to the entity sold.
	
Goodwill is allocated to cash-generating units for 
the purpose of impairment testing. The allocation is 
made to those cash-generating units or groups of 
cash-generating units that are expected to benefit 
from the business combination in which the goodwill 
arose. The units or groups of units are identified at the 
lowest level at which goodwill is monitored for internal 
management purposes, being the operating segments.
(ii) 	
Software
	
Costs associated with maintaining software 
programmes are recognised as an expense as incurred. 
Development costs that are directly attributable to the 
design and testing of identifiable and unique software 
products controlled by the Group are recognised as 
intangible assets when the following criteria are met:
	
- 	 it is technically feasible to complete the software 
so that it will be available for use
	
- 	 management intends to complete the software and 
use or sell it
	
- 	 there is an ability to use or sell the software
	
- 	 it can be demonstrated how the software will 
generate probable future economic benefits
	
- 	 adequate technical, financial and other resources 
to complete the development and to use or sell the 
software are available, and
	
- 	 the expenditure attributable to the software during 
its development can be reliably measured.
	
Directly attributable costs that are capitalised as 
part of the software include employee costs and an 
appropriate portion of relevant overheads.
	
Capitalised development costs are recorded as 
intangible assets and amortised from the point at 
which the asset is ready for use.
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  223
(iii) 	
Research and development
	
Research expenditure and development expenditure 
that do not meet the criteria in (ii) above are 
recognised as an expense as incurred. Development 
costs previously recognised as an expense are not 
recognised as an asset in a subsequent period.
(iv) 	
Amortisation methods and periods
	
Refer to note 6(d) for details about amortisation 
methods and periods used by the Group for 
intangible assets. Amortisation is wholly included in 
administrative expenses.
(v) 	
Impairment of assets
	
Goodwill and intangible assets that have an indefinite 
useful life are not subject to amortisation and are 
tested annually for impairment, or more frequently 
if events or changes in circumstances indicate that 
they might be impaired. Other assets are tested 
for impairment whenever events or changes in 
circumstances indicate that the carrying amount may 
not be recoverable. An impairment loss is recognised 
for the amount by which the asset’s carrying amount 
exceeds its recoverable amount. The recoverable 
amount is the higher of an asset’s fair value less costs 
of disposal and value in use. For the purposes of 
assessing impairment, assets are grouped at the lowest 
levels for which there are separately identifiable cash 
inflows which are largely independent of the cash 
inflows from other assets or groups of assets (cash-
generating units). Non-financial assets other than 
goodwill that suffered an impairment are reviewed for 
possible reversal of the impairment at the end of each 
reporting period.
(r)	
Trade and other payables
	
These amounts represent liabilities for goods and 
services provided to the Group prior to the end of 
financial year which are unpaid. The amounts are 
unsecured and are usually paid within 30 days of 
recognition. Trade and other payables are presented as 
current liabilities unless payment is not due within 12 
months after the reporting period. They are recognised 
initially at their fair value and subsequently measured 
at amortised cost using the effective interest method.
(s)	
Borrowings
	
Borrowings are initially recognised at fair value, 
net of transaction costs incurred. Borrowings are 
subsequently measured at amortised cost. Any 
difference between the proceeds (net of transaction 
costs) and the redemption amount is recognised 
in profit or loss over the period of the borrowings 
using the effective interest method. Fees paid on 
the establishment of loan facilities are recognised as 
transaction costs of the loan to the extent that it is 
probable that some or all of the facility will be drawn 
down. In this case, the fee is deferred until the draw 
down occurs. To the extent there is no evidence that 
it is probable that some or all of the facility will be 
drawn down, the fee is capitalised as a prepayment for 
liquidity services and amortised over the period of the 
facility to which it relates.
	
Preference shares, which are mandatorily redeemable 
on a specific date, are classified as liabilities. The 
dividends on these preference shares are recognised in 
profit or loss as finance costs.
	
The fair value of the liability portion of a convertible 
bond is determined using a market interest rate for 
an equivalent non-convertible bond. This amount is 
recorded as a liability on an amortised cost basis until 
extinguished on conversion or maturity of the bonds. 
The remainder of the proceeds is allocated to the 
conversion option. This is recognised and included in 
shareholders’ equity, net of income tax effects.
	
Borrowings are removed from the statement of 
financial position when the obligation specified in 
the contract is discharged, cancelled or expired. The 
difference between the carrying amount of a financial 
liability that has been extinguished or transferred to 
another party and the consideration paid, including any 
non-cash assets transferred or liabilities assumed, is 
recognised in profit or loss as other income or finance 
costs.
	
Where the terms of a financial liability are renegotiated 
and the entity issues equity instruments to a creditor 
to extinguish all or part of the liability (debt for equity 
swap), a gain or loss is recognised in profit or loss, 
which is measured as the difference between the 
carrying amount of the financial liability and the fair 
value of the equity instruments issued.
	
Borrowings are classified as current liabilities unless 
the Group has an unconditional right to defer 
settlement of the liability for at least 12 months after 
the reporting period.

224  Hela Apparel Holdings PLC | Annual Report 2022/23
(t)	
Borrowing costs	
	
General and specific borrowing costs that are 
directly attributable to the acquisition, construction 
or production of a qualifying asset are capitalised 
during the period of time that is required to complete 
and prepare the asset for its intended use or sale. 
Qualifying assets are assets that necessarily take 
a substantial period of time to get ready for their 
intended use or sale.
	
Investment income earned on the temporary 
investment of specific borrowings pending their 
expenditure on qualifying assets is deducted from the 
borrowing costs eligible for capitalisation.
	
Other borrowing costs are expensed in the period in 
which they are incurred.
(u)	
Provisions
	
Provisions for legal claims, service warranties and make 
good obligations are recognised when the Group has 
a present legal or constructive obligation as a result of 
past events, it is probable that an outflow of resources 
will be required to settle the obligation and the 
amount can be reliably estimated. Provisions are not 
recognised for future operating losses.
	
Where there are a number of similar obligations, 
the likelihood that an outflow will be required in 
settlement is determined by considering the class of 
obligations as a whole. A provision is recognised even 
if the likelihood of an outflow with respect to any one 
item included in the same class of obligations may be 
small.
	
Provisions are measured at the present value of 
management’s best estimate of the expenditure 
required to settle the present obligation at the end 
of the reporting period. The discount rate used to 
determine the present value is a pre-tax rate that 
reflects current market assessments of the time value 
of money and the risks specific to the liability. The 
increase in the provision due to the passage of time is 
recognised as interest expense.
(v)	
Employee benefits
(i) 	
Short-term obligations
	
Liabilities for wages and salaries, including non-
monetary benefits and accumulating sick leave that 
are expected to be settled wholly within 12 months 
after the end of the period in which the employees 
render the related service are recognised in respect 
of employees’ services up to the end of the reporting 
period and are measured at the amounts expected to 
be paid when the liabilities are settled. The liabilities 
are presented as current employee benefit obligations 
in the statement of financial position.
(ii) 	
Defined benefit plan - gratuity
	
Defined benefit plan defines an amount of benefit 
that an employee will receive on retirement, usually 
dependent on one or more factors such as age, years 
of service and compensation. The defined benefit plan 
comprises the gratuity provided under the payment of 
Gratuity Act, No.12 of 1983.
	
The liability recognised in the statement of financial 
position in respect of defined benefit plan is the 
present value of the defined benefit obligation at 
the end of the reporting period. The defined benefit 
obligation is calculated annually by an independent 
actuary.
	
A defined benefit plan is not a defined contribution 
plan. Defined benefit plan defines an amount of 
benefit that an employee will receive on retirement, 
usually dependent on one or more factors such as age, 
years of service and compensation.
	
The liability recognised in the statement of financial 
position in respect of defined benefit plans is the 
present value of the defined benefit obligation at 
the statement of financial position date less the fair 
value of plan assets, together with adjustments for 
unrecognised past service cost. The liability or asset 
recognised in the statement of financial position in 
respect of defined benefit plans is the present value 
of the defined benefit obligation at the end of the 
reporting period. The defined benefit obligation is 
calculated annually by an independent actuary using 
the projected unit credit method. The present value 
of the defined benefit obligation is determined by 
discounting the estimated future cash flows using the 
yield rates of government bonds that are denominated 
in the currency in which the benefits will be paid, 
and that have terms to maturity approximating to the 
terms of the related liability. 
	
The current service cost of the defined benefit plan, 
recognised in the income statement in employee 
benefit expense, except where included in the cost 
of an asset, reflects the increase in the defined 
benefit obligation resulting from employee service in 
the current year, benefit changes curtailments and 
settlements.
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Annual Report 2022/23 | Hela Apparel Holdings PLC  225
	
Past service costs are recognised immediately in 
statement of profit or loss.
	
Gains and losses on remeasurement and changes in 
assumptions are charged or credited to equity in other 
comprehensive income in the period in which they 
arise.
	
The assumptions based on which the results of the 
valuation was determined, are included in note 6(h) to 
the financial statements.
(iii) 	
Defined contribution plan
	
For defined contribution plans, such as the Employees' 
Provident Fund and Employees' Trust Fund, the 
Company contributes 12% and 3% respectively, of the 
employees' basic or consolidated wage or salary. The 
Company has no further payment obligations once the 
contributions have been paid. The Company and the 
employees are members of these defined contribution 
plans.
(iv) 	
Termination benefits 
	
Termination benefits are payable whenever an 
employee's service is terminated before the normal 
retirement date or whenever an employee accepts 
voluntary redundancy in exchange for these benefits. 
The Group recognises termination benefits when it 
is demonstrably committed to either terminate the 
employment of current employees according to a 
detailed formal plan without possibility of withdrawal 
or to provide termination benefits as a result of an 
offer made to encourage voluntary redundancy.
(w)	
Contributed equity
	
Ordinary shares are classified as equity.
	
Incremental costs directly attributable to the issue 
of new shares or options are shown in equity as a 
deduction, net of tax, from the proceeds.
(x)	
Dividends
	
Provision is made for the amount of any dividend 
declared, being appropriately authorised and no longer 
at the discretion of the entity, on or before the end of 
the reporting period but not distributed at the end of 
the reporting period.
(y)	
Earnings / (loss) per share
(i) 	
Basic earnings / (loss) per share
	
Basic earnings / (loss) per share is calculated by 
dividing:
	
- 	 the profit / (loss) attributable to the equity holders 
of the parent entity, excluding any costs of 
servicing equity other than ordinary shares
	
- 	 by the weighted average number of ordinary shares 
outstanding during the financial year, adjusted for 
bonus elements in ordinary shares issued during 
the year and excluding treasury shares (note 17(a)).
(ii) 	
Diluted earnings / (loss) per share
	
Diluted earnings per share adjusts the figures used in 
the determination of basic earnings per share to take 
into account:
	
- 	 the after income tax effect of interest and other 
financing costs associated with dilutive potential 
ordinary shares, and
	
- 	 the weighted average number of additional 
ordinary shares that would have been outstanding 
assuming the conversion of all dilutive potential 
ordinary shares.
21	
IMPACT ON ECONOMIC CRISIS
	
Impact on the recent economic downturn to financial 
statements are as below.
	
Adverse movement on the foreign exchange rate
	
The Sri Lankan Rupee has depreciated significantly 
during the year ended 31 March 2023 and it was 
under pressure due to the continuous deterioration of 
the balance of payments and the depletion of foreign 
reserves. The Group earns its revenues in foreign 
currency by manufacturing and exporting garments to 
the Europe and USA regions. It is the management’s 
view that the Group is not significantly exposed to 
the prevailing economic conditions in Sri Lanka in a 
manner that would impact its ability to continue as a 
going concern.

226  Hela Apparel Holdings PLC | Annual Report 2022/23
	
Increasing inflation
	
Sri Lanka has experienced a significant YoY inflationary 
impact as per the Colombo Consumer Price Index 
(CCPI). This is mainly due to the increase in import 
prices and domestic prices resulting from rupee 
depreciation and excessive money printing by Central 
Bank of Sri Lanka (CBSL). The Group earns its revenue 
in foreign currency and there is no significant effect 
due to an increase in inflation even though there are 
expenses born locally.
	
Increasing interest rates
	
The CBSL has tightened the monetary policy by 
increasing its policy rates in response to the prevailing 
economic crisis including the depletion of foreign 
reserves. The Group have very minimal of LKR 
borrowings and therefore is not exposed to interest 
rate fluctuations in Sri Lanka.	
	
Global economic activity is experiencing a broad-based 
and sharper-than-expected slowdown, with inflation 
higher than seen in several decades. The cost-of-
living crisis, tightening financial conditions in most 
regions, Russia’s invasion of Ukraine, and the lingering 
COVID-19 pandemic all weigh heavily on the outlook. 
Global growth is forecasted to slow from 3.4% in 2022 
to 2.8% in 2023 and 3% in 2024. This is the weakest 
growth profile since 2001 except for the global 
financial crisis and the acute phase of the COVID-19 
pandemic.
Notes to the financial statements
(All amounts in Sri Lankan Rupees Thousands unless otherwise stated)

Supplementary Information
partnerships
O F  S T A B I L I T Y

228  Hela Apparel Holdings PLC | Annual Report 2022/23
Statement of Profit or Loss
(All amounts in US Dollar Thousands)
Group
Company
 Year ended 31 March 
 Year ended 31 March 
 Restated 
2023
2022
2023
2022
Revenue from contracts with customers
 268,499 
 269,269 
 -   
 - 
Cost of sales 
 (235,857)
 (228,163)
 -   
 - 
Gross profit 
 32,642 
 41,106 
 -   
 -   
Distribution expenses
 (11,145)
 (6,954)
 -   
 - 
Administrative expenses
 (24,904)
 (25,070)
 (34)
 (285)
Net impairment loss on financial assets
 (101)
 (636)
 -   
 - 
Other income 
 1,201 
 447 
 -   
 - 
Other gains/ (losses)
 4,082 
 1,925 
 (2,261)
 (6,645)
Operating profit / (loss)
 1,775 
 10,818
 (2,295)
 (6,930)
Finance income
 79 
 223 
 8 
 156 
Finance costs
 (11,309)
 (6,628)
 -   
 - 
Finance (costs)/ income - net
 (11,230)
 (6,405)
 8 
 156 
Share of loss of equity accounted investee, net of tax
 (195)
 (439)
 -   
 -   
(Loss)/ profit before income tax
 (9,650)
 3,974 
 (2,287)
 (6,774)
Income tax reversals/ (expense)
 261 
 (1,191)
 (2)
 (37)
(Loss)/ profit for the year
 (9,389)
 2,783 
 (2,289)
 (6,811)
Profit/ (loss) is attributable to:
   Equity holders of the parent
 (9,856)
 2,799 
 (2,289)
 (6,811)
   Non-controlling interests
 467 
 (16)
 - 
 - 
(Loss)/ profit for the year
 (9,389)
 2,783 
 (2,289)
 (6,811)
(Loss)/ earnings per share for (loss)/ profit attributable to the 
equity holders of the parent
Basic (loss)/ earnings per share
 (0.01)
 0.00 
 (0.00)
 (0.01)
Diluted (loss)/ earnings per share
 (0.01)
 0.00 
 (0.00)
 (0.01)

Annual Report 2022/23 | Hela Apparel Holdings PLC  229
Statement of Comprehensive Income
(All amounts in US Dollar Thousands)
Group
Company
 Year ended 31 March 
 Year ended 31 March 
 Restated 
2023
2022
2023
2022
(Loss)/ profit for the year
 (9,389)
 2,783 
 (2,290)
 (6,811)
Other comprehensive income:
Other comprehensive income to be reclassified to profit or loss in 
subsequent periods
Exchange differences on translation of foreign operations
 (138)
 5 
 -   
 - 
Other comprehensive income not to be reclassified to profit or loss in 
subsequent periods
Gain on revaluation of land and buildings
 2,712 
 135 
 -   
 - 
Deferred income tax impact relating to revaluation
 (938)
 (28)
 -   
 - 
Remeasurements of post-employment benefit obligations
 (138)
 305 
 -   
 -   
Deferred income tax impact relating to remeasurements of post-
employment benefit obligations 
 48 
 (36)
 -   
 - 
Other comprehensive income for the year, net of tax
 1,546 
 381 
 -   
 - 
Total comprehensive (loss)/ income for the year
 (7,843)
 3,164 
 (2,290)
 (6,811)

230  Hela Apparel Holdings PLC | Annual Report 2022/23
Group
Company
 As at 31 March 
 As at 31 March 
 Restated 
2023
2022
2023
2022
ASSETS
Non-current assets
Property, plant and equipment                                  
 27,505 
 21,922 
 -   
 -   
Right-of-use assets
 8,379 
 2,478 
 -   
 -   
Investment property
 1,710 
 1,505 
 -   
 -   
Intangible assets
 36,536 
 36,504 
 -   
 -   
Deferred tax assets
 3,447 
 611 
 -   
 -   
Investment in subsidiaries
 -   
 -   
 20,941 
 9,975 
Investments in equity accounted investees
 881 
 1,072 
 -   
 -   
Other financial assets at amortised cost
 1 
 1 
 -   
 -   
Total non-current assets
78,459
64,093
20,941
9,975
Current assets
Inventories 
 35,935 
 42,249 
 -   
 -   
Other assets
 11,332 
 6,752 
 -   
 -   
Trade and other receivables
 30,081 
 48,095 
 45 
 9,531 
Income tax receivables
 151 
 38 
 -   
 -   
Derivative financial instruments
 1,342 
 -   
 -   
 -   
Other financial assets at amortised cost
 949 
 683 
 -   
 -   
Cash and cash equivalents 
 11,935 
 17,539 
 27 
 3,731 
Total current assets
91,725
115,356
72
13,262
Total assets
170,184
179,449
21,013
23,237
EQUITY
Stated capital
 29,663 
 29,596 
 29,663 
 29,596 
Other reserves
 2,583 
 721 
 596 
 594 
Exchange equalisation reserve
 885 
 969 
 -   
 - 
(Accumulated losses)/ retained earnings
 412 
 10,498 
 (9,395)
 (7,105)
Capital and reserves attributable to owners of  
Hela Apparel Holdings PLC
 33,543
 41,784 
 20,864 
 23,086 
Non-controlling interests
 1,468 
 1,001 
 -   
 - 
Total equity
 35,011 
 42,785 
 20,864 
 23,086 
Statement of Financial Position
(All amounts in US Dollar Thousands)

Annual Report 2022/23 | Hela Apparel Holdings PLC  231
Group
Company
 As at 31 March 
 As at 31 March 
 Restated 
2023
2022
2023
2022
LIABILITIES
Non-current liabilities
Borrowings
 5,512 
 8,610 
 -   
 -   
Lease liabilities
 6,521 
 1,171 
 -   
 -   
Deferred tax liabilities
 4,931 
 1,925 
 -   
 -   
Employee benefit obligations
 1,638 
 1,426 
 -   
 - 
Total non-current liabilities
 18,604 
 13,132 
 -   
 -   
Current liabilities
Trade and other payables
 36,992 
 36,037 
 146 
 113 
Income tax liabilities
 74 
 128 
 2 
 37 
Lease liabilities
 1,981 
 1,451 
 -   
 -   
Borrowings
 77,522 
 85,916 
 -   
 -   
Total current liabilities
 116,569 
 123,532 
 148 
 151 
Total liabilities
 135,173 
 136,664 
 148 
 151 
Total equity and liabilities
 170,184 
 179,449 
 21,012 
 23,236 
Net assets per share attributable to owners of 
Hela Apparel Holdings PLC
 0.03 
 0.03 
 0.02 
 0.02

232  Hela Apparel Holdings PLC | Annual Report 2022/23
Statement of Cash Flow
(All amounts in US Dollar Thousands)
Group
Company
 Year ended 31 March 
 Year ended 31 March 
 Restated 
2023
2022
2023
2022
Cash flows from operating activities 
Cash generated from/ (used in) operations
 26,244 
 (13,966)
 7,208 
 (16,254)
Retirement benefit obligations paid
 (206)
 (228)
 -   
 -   
Income tax paid
 (113)
 (116)
 (22)
 -   
Interest paid
 (11,309)
 (6,628)
 -   
 -   
Net cash inflow/ (outflow) from operating activities
 14,617 
 (20,938)
 7,185 
 (16,254)
Cash flows from investing activities
Purchase of property, plant and equipment
 (7,432)
 (6,482)
 -   
 -   
Purchase of intangible assets
 (84)
 (47)
 -   
 -   
Proceeds from sale of property, plant and equipment
 1,688 
 7 
 -   
 -   
Proceeds from sale of intangible assets
 -   
 1 
 -   
 -   
Interest received
 79 
 223 
 8 
 156 
Investment made in fixed deposits
 (266)
 -   
 -   
 -   
Acquisition of non controlling interest 
 -   
 (300)
 -   
 -   
Investments made in subsidiaries
 -   
 (1,494)
 (10,964)
 -   
Net cash (outflow) / inflow from investing activities
 (6,015)
 (8,092)
 (10,956)
 156 
Cash flows from financing activities
Proceeds from borrowings
317,123
270,917
 -   
 -   
Repayment of borrowings
(327,891)
(252,994)
Net proceeds form share issue 
 67 
 19,820 
 67 
 19,820 
Principal elements of lease payments
 (2,781)
 (964)
 -   
 -   
Net cash (outflow)/ inflow from financing activities
 (13,482)
 36,780 
 67 
 19,820 
Net (decrease)/ increase in cash and cash equivalents
 (4,880)
 7,750 
 (3,704)
 3,722 
Cash and cash equivalents at the beginning of the year
 16,800 
 9,050 
 3,731 
 8 
Cash and cash equivalents at the end of the year
 11,920 
 16,800 
 27 
 3,731

Annual Report 2022/23 | Hela Apparel Holdings PLC  233
Five Years Financial Summary - Group
(All amounts in Sri Lankan Rupees Thousands)
Hela Apparel Holdings PLC
Hela Clothing 
(Private) Limited
Restated
Year ended 31 March
2023
2022
2021
2020
*2019
**2019
Income statement
Group revenue
 95,302,705 
 56,179,623 
 32,155,092 
 32,874,321 
 16,155,221 
 32,310,442 
Gross profit
 11,586,267 
 8,576,163 
 6,065,467 
 6,996,160 
 2,653,580 
 5,307,160 
Operating (loss) / profit 
 630,447 
 2,256,917 
 1,960,024 
 1,987,836 
 466,580 
 934,550 
(Loss) / profit before taxation
 (3,424,916)
 829,136 
 912,100 
 819,329 
 (85,347)
 (182,215)
Income tax expense
 (92,467)
 248,471 
 40,564 
 51,849 
 113,289 
 226,579 
(Loss) / profit  after taxation
 (3,332,449)
 580,665 
 871,536 
 767,480 
 (198,636)
 (408,794)
(Loss) / profit  attributable to 
the equity holders of the parent
 (3,498,318)
 584,044 
 766,846 
 804,586 
 (192,255)
 (396,032)
Statement of financial position
Assets
Non-current assets
Property, plant and equipment                                  
 9,001,940 
 6,554,602 
 3,560,886 
 3,550,254 
 3,755,196 
 3,755,196 
Right-of-use assets
 2,742,171 
 740,821 
 562,667 
 372,593 
 -   
 -   
Deferred tax assets
 1,128,036 
 182,650 
 304,947 
 289,035 
 -   
 -   
Other non current assets
 12,805,784 
 11,685,407 
 7,654,791 
 7,111,426 
 7,022,501 
 5,666,400 
Total non-current assets
 25,677,931 
 19,163,480 
 12,083,291 
 11,323,307 
 10,777,697 
 9,421,596 
Current assets
 30,019,983 
 34,491,662 
 14,590,815 
 11,744,407 
 9,795,398 
 9,788,205 
Total assets
 55,697,914 
 53,655,142 
 26,674,106 
 23,067,714 
 20,573,095 
 19,209,801 
Equity
Capital and reserves
Stated capital
 5,719,672 
 5,696,037 
 1,723,899 
 1,723,897 
 1,039,659 
 1,215,852 
Advance against share capital
 -   
 -   
 -   
 -   
 -   
 911,540 
Other reserves
 801,734 
 141,032 
 86,065 
 (1,024)
 -   
 613,352 
(Accumulated losses) /retained 
earnings 
 (1,499,989)
 2,080,020 
 1,313,835 
 582,925 
 (192,255)
 (3,277,376)
Exchange equalisation reserve
 6,120,592 
 4,725,105 
 505,769 
 197,800 
 677 
 52,577 
Non-controlling interest
 316,391 
 150,522 
 340,114 
 230,749 
 201,070 
 184,375 
Total equity
 11,458,400 
 12,792,716 
 3,969,682 
 2,734,347 
 1,049,151 
 (299,680)
Non-current liabilities
Borrowings
 1,804,131 
 2,574,365 
 2,063,220 
 2,240,388 
 3,234,995 
 3,234,995 
Deferred tax liabilities
 1,613,979 
 575,488 
 372,059 
 377,431 
 167,331 
 167,331 
Lease liabilities
 2,134,142 
 350,258 
 548,511 
 103,702 
 -   
 -   
Employee benefit obligations
 536,101 
 426,471 
 436,905 
 327,324 
 246,255 
 246,255 
Total non-current liabilities
 6,088,353 
 3,926,582 
 3,420,695 
 3,048,844 
 3,648,580 
 3,648,580 
Current liabilities
 38,151,161 
 36,935,898 
 19,283,729 
 17,284,524 
 15,875,365 
 15,860,901 
Total liabilites
 44,239,514 
 40,862,480 
 22,704,424 
 20,333,368 
 19,523,945 
 19,509,481 
Total equity and liabilities
 55,697,914 
 53,655,196 
 26,674,106 
 23,067,714 
 20,573,095 
 19,209,801

234  Hela Apparel Holdings PLC | Annual Report 2022/23
(All amounts in Sri Lankan Rupees Thousands)
Five Years Financial Summary - Group
Hela Apparel Holdings PLC
Hela Clothing 
(Private) Limited
Restated
2023
2022
2021
2020
*2019
**2019
Ratios and Statistics
Annual growth in turnover
69.6%
74.7%
-2.2%
1.7%
-
33.9%
Gross profit margin
12.2%
15.3%
18.9%
21.3%
16.4%
16.4%
Net profit margin
-3.5%
1.0%
2.7%
2.3%
-1.2%
-1.3%
Gearing ratio (Times)
 2.4 
 2.2 
 4.0 
 5.6 
 -   
-48.9%
Return on Equity (ROE)
-29.4%
***7.2%
25.0%
79.7%
 -   
58.3%
*Hela Apparel Holding PLC was incorporated on 11 October 2018 and acquired 100% of the shares in Hela Clothing (Private) Limited on 19th 
November 2018. As such, Group figures for Hela Apparel Holdings PLC in FY 2018/19 reflect a partial view of the of the financial performance during 
this year. (Approximately 05 months’)
**Hela Clothing (Private) Limited’s consolidated financial performance presented for the year 31 March 2019 is a full year consolidated financial 
statement.
*** Hela Apparel Holding PLC was listed on the Colombo Stock Exchange in February 2022, with an equity raise of Rs. 4.1Bn.

Annual Report 2022/23 | Hela Apparel Holdings PLC  235
Investor Information
1. 	
DISTRIBUTION OF SHAREHOLDERS	
As at 31st March 2023
Resident
Non-Resident
Total
Shareholdings
No. of 
Shareholders
No. of  
Shares
Percentage  
(%)
No. of 
Shareholders
No. of  
Shares
Percentage 
(%)
No. of 
Shareholders
No. of  
Shares
Percentage 
(%)
1  to  1,000 Shares
2,824
1,440,659
0.1
3
1,885
0
2,827
1,442,544
0.1
1,001  to  10,000 Shares
10,360
33,770,686
2.58
12
53,100
0
10,372
33,823,786
2.58
10,001  to  100,000 Shares
1040
30,209,980
2.31
9
195,857
0.01
1,049
30,405,837
2.32
100,001  to  1,000,000 Shares
146
45,573,809
3.48
2
594,412
0.05
148
46,168,221
3.53
Over 1,000,000 Shares
39
525,112,687
40.09
3
673,002,858
51.38
42
1,198,115,545
91.47
Total
14,409
636,107,821
48.56
29
673,848,112
51.44
14,438
1,309,955,933
100
2. 	
CATEGORIES OF SHAREHOLDERS	
No. of 
Shareholders
No. of 
Shares
Individual
14,043
318,945,290
Institutional
395
991,010,643
14,438
1,309,955,933
3. 	
PUBLIC HOLDINGS 	
Public Holding as at 31 March
2023
2022
Issued Share Capital (No. of Shares)
1,309,955,933
 1,303,117,944 
Public Holding as a % of Issued Share Capital
22.65%
20.13%
Total Number of Shareholders 
14,438
 16,445 
Number of Shareholders representing the Public Holding
14,418
 16,421 
	
Minimum Public Holding Requirement as per Listing Rules 7.14.1	
Float Adjusted
 Market
 Capitalisation -
 (LKR)
 Public Holding
(%) 
No of
  Shareholders 
 representing the
 public holding   
Minimum Public Holding as at 31 March 2023	
 2,373,640,151 
22.65%
 14,418 
	
The Company complies with the Minimum Public Holding required of the Main Board as per Option 5 of Section 7.14.1 
(a) of the CSE Listing Rules

236  Hela Apparel Holdings PLC | Annual Report 2022/23
4. 	
SHARE TRADING INFORMATION	
2023
2022
Market Value of Shares
Last Traded Price on 31 March (LKR)
8.00
 12.90 
      Highest Price (LKR)
15.30
 22.00 
      Lowest Price (LKR)
7.90
 12.50 
      Market Capitalisation on 31 March (LKR 000')
10,479,648
 16,810,221 
Share Trading
      No of Transactions During the Year 
 24,244 
33,646 
      No of Shares Traded During the Year
 109,771,724 
115,641,164 
      Value of Shares Traded During the Year
 1,257,838,511 
2,051,977 
5. 	
SHAREHOLDER INFORMATION
List of 20 Major Shareholders as at 31 March 	
2023
2022
No. of Shares
%
No. of Shares
%
1
Lesing Hela Limited
 614,256,956 
 46.89 
 614,256,956 
 47.14 
2
Tars Investments Lanka Pvt Ltd
 235,638,162 
 17.99 
 235,638,162 
 18.08 
3
Mr. P.L.D. Jinadasa
 137,276,656 
 10.48 
 135,932,066 
 10.43 
4
David Pieris Holdings (Private) Limited
 30,674,576 
 2.34 
 -
 -
5
Mr. D.E.H. Mcvey
 30,598,973 
 2.34 
 30,598,973 
 2.35 
6
Citibank Newyork S/A Norges Bank Account 2
 28,146,929 
 2,15 
 20,971,740 
 1.61 
7
Mr. H.H. Abdulhusein 
 19,100,000 
 1.46 
 18,438,517 
 1.41 
8
Hatton National Bank PLC/Sri Dhaman Rajendram 
Arudpragasam
 16,191,671 
 1.24 
 15,902,456 
 1.22 
9
Deutsche Bank AG as Trustee To Assetline Income Plus 
Growth Fund
 7,027,589 
 0.54 
 - 
 -
10
Akbar Brothers Pvt Ltd A/C No 1
 6,000,000 
 0.46 
 6,000,000 
 0.46 
11
Union Assurance PLC - Universal Life Fund  
 5,575,358 
 0.43 
6,748,748
 0.52 
12
Mr. R.S.P. Amaratunga
 5,007,961 
 0.38 
 4,907,961 
 0.38 
13
Mr. D.M. Beruwalage
 4,361,600 
 0.33 
 4,361,600 
 0.33 
14
Mr. A.R. Rasiah
 4,273,743 
 0.33 
4,273,743
 0.33 
15
Magna Wealth (Pvt) Ltd
4,240,485
 0.32 
 3,372,100 
 0.26 
16
DFCC Bank Plc A/C No.02
 4,000,000 
 0.31 
 -
 -
17
Mr. W.A.R. Gunawardhana
 3,546,155 
 0.27 
 -
 -
18
California Link (Private) Ltd
 3,050,572 
 0.23 
 -
 -
19
Bank of Ceylon A/C Ceybank Unit Trust
 2,945,200 
 0.22 
2,945,200
 0.23 
20
Mr. Y.C. Samarajeewa
2,867,137
 0.22 
 -
 - 
 1,164,779,723 
 88.93 
 1,104,348,222 
 84.75 
Investor Information

Annual Report 2022/23 | Hela Apparel Holdings PLC  237
5. 	
SHAREHOLDER INFORMATION CONTD.
a.	
Directors Shareholding 	
Directors’ Direct Shareholding
2023
2022
No. of Shares
No. of Shares
Mr. P.L.D. Jinadasa (Group CEO)
137,276,656
 135,932,066 
Mr. A.R. Rasiah (Chairman)
 4,273,743 
 4,273,743 
Ms. T.S. Peries
 57,400 
 57,400 
Ms. A. Nanayakkara*
-
 619,100 
Mr. G.P. Gunawardana
-
-
Dr. A. Alderton
-
-
Mr. P. Schleiffer
-
-
Mr. S. Khan
-
-
 141,607,799 
 140,882,309 
	
*Resigned w.e.f 31st August 2022
6. 	
EMPLOYEE SHARE OWNERSHIP PLAN AS AT 31 MARCH 2023	
Date of Grant 
Employee
 Category 
Shares Granted
 (A+B)   
Status of Granted Shares as of  
31 March 2023 
Remaining
 shares allotted 
to  Scheme that
 may be granted
 by the Board of
 Directors at a
 future date
Vested &
 issued (A)
To be vested &
 issued on 1
August 2023 (B)
1-Aug-2020
Senior Executives & 
Directors 
35,258,375
27,832,748
7,425,627
18,163,411
	
Note:
 	
6,837,989 ordinary voting shares were issued on 1 August 2022 and the Employee Share Ownership Plan was originally 
established as a Share Option Scheme and was converted by a special resolution of the shareholders passed on 7 
September 2021. In addition to the 35,258,375 shares granted on 1 August 2020, 18,163,411 shares remain allotted to 
the scheme and may be granted at a future date by the Board of Directors.

238  Hela Apparel Holdings PLC | Annual Report 2022/23
United Nations Global Compact Highlights
The Ten Principles of the UN Global 
Compact
Disclosure References
 Human Rights 
Principle 1: Businesses 
should support and 
respect the protection of 
internationally proclaimed 
human rights; 
	
-	
The Hela Group is committed to maintaining operations in compliance with 
local regulations and international best practices on human rights, covering 
areas including the prevention of child labour, forced and compulsory labour, 
non-discrimination, freedom of association/collective bargaining, health and 
safety and fair wages. The Group has zero tolerance against any form of 
harassment. 
	
The Group’s efforts are governed by internal policies and practices.
	
Refer:  Corporate Governance – page 114 
-	
The voluntary adoption and benchmarking of our practices to industry-
specific global certifications including WRAP, SLCP, SMETA (ETI), SCAN, is 
an endorsement of our commitment. 
	
Refer Compliance and Product Certifications - page 13
-	
Further, we strive to ensure the safeguarding of human rights across 
our supply chains. Suppliers are screened for environmental and social 
compliance prior to onboarding, to ensure ethical and sustainable business 
practices. They are also required to contractually commit with the Hela 
Supplier Code of Conduct, as part of the onboarding process, The Code 
prescribes that they meet all applicable legislative requirements and 
obligates suppliers to act ethically and fairly and uphold fundamental 
business and human rights.  
	
Refer: Relationship Capital -  page 100
Principle2: make sure that 
they are not complicit in 
human rights abuses. 
-	
A robust risk management framework including assurance and annual 
assessments by third party auditors of accreditations for social compliance, 
serves to verify our operations.
	
Refer:  Risk Management  - page 136
 Labour
 
Principle3: Businesses should 
uphold the freedom of 
association and the effective 
recognition of the right to 
collective bargaining;
-	
Refer Human and Social Capital - page 74
Principle 4: the elimination 
of all forms of forced and 
compulsory labour; 
-	
Refer Human and Social Capital - page 74
Principle 5: the effective 
abolition of child labour; and 
-	
Refer Human and Social Capital - page 74
Principle 6: the elimination of 
discrimination in respect of 
employment and occupation. 
-	
Refer Human and Social Capital - page 74

Annual Report 2022/23 | Hela Apparel Holdings PLC  239
The Ten Principles of the UN Global 
Compact
Disclosure References
Environment 
Principle 7: Businesses 
should support a 
precautionary approach to 
environmental challenges; 
-	
We are conscious of our significant environmental footprint as a textile 
manufacturer. We remain firm in our commitment to support environmental 
sustainability. 
	
Refer Natural Capital – page 64
Principle 8: Undertake 
initiatives to promote greater 
environmental responsibility; 
and
-	
Refer Natural Capital – page 64
Principle 9: encourage the 
development and diffusion 
of environmentally friendly 
technologies.
-	
Refer Natural Capital – page 64
 Anti-Corruption 
Principle 10: Businesses 
should work against 
corruption in all its forms, 
including extortion and 
bribery.
-	
The Hela Group upholds zero tolerance to corruption and  bribery. 
	
Refer Anti-Bribery and Corruption (ABC)  - Corporate Governance                
– page 125

240  Hela Apparel Holdings PLC | Annual Report 2022/23
Group Companies and Directorate
Name
Country of 
Incorporation
Relationship
Effective Holding
Principal Activity
Board Members
FY 23
FY 22
Hela Clothing  
(Pvt) Limited
Sri Lanka
Direct 
Subsidiary
100%
100%
Manufacture of 
garments for export 
market
A R Rasiah
P L D Jinadasa
G P Gunawardana 
R S P Amaratunga
Foundation  
Garments (Pvt) 
Limited
Sri Lanka
Indirect 
Subsidiary
100%
100%
Manufacture of 
garments for export 
market
A R Rasiah
P L D Jinadasa
G P Gunawardana 
F D N Sourcing (Pvt) 
Limited
Sri Lanka
Indirect 
Subsidiary
100%
100%
Providing front end 
services to foreign 
clients
A R Rasiah
P L D Jinadasa
G P Gunawardana 
Foundation Bennett 
(Pvt) Limited
Sri Lanka
Indirect 
Subsidiary
100%
100%
Dormant Company
A R Rasiah
P L D Jinadasa
G P Gunawardana 
Alpha Textiles  
(Pvt) Limited
Sri Lanka
Indirect 
Subsidiary
100%
100%
Dormant Company
A R Rasiah
P L D Jinadasa
G P Gunawardana
Jinadasa Bennett  
(Pvt) Limited
Sri Lanka
Indirect 
Subsidiary
100%
100%
Renting investment 
property to other 
Group Companies 
for manufacturing 
purposes
A R Rasiah
P L D Jinadasa
G P Gunawardana
Hela Investment 
Holdings Limited
Mauritius 
Indirect 
Subsidiary
100%
100%
Providing trading 
and other support 
services to Group 
Companies, and to act 
as investment holding 
company
A R Rasiah
P L D Jinadasa
G P Gunawardana
D B F Shahnaz
F H Doobarry
Hela USA Inc.
USA
Indirect 
Subsidiary
100%
100%
Design and marketing 
office
A R Rasiah
P L D Jinadasa
G P Gunawardana
Hela Intimates  
EPZ Limited
Kenya
Indirect 
Subsidiary
100%
100%
Manufacture of 
garments for export 
market
P L D Jinadasa
N Mohottige
Safeguard  
Workwear EPZ 
Limited
Kenya
Joint Venture
50%
50%
Manufacture of safety 
and medical products 
for export market
P L D Jinadasa
G S M A Gulam
K M H Dostmohamed
N Mohottige
Hela Indochine 
Apparel PLC
Ethiopia
Indirect 
Subsidiary
51%
51%
Manufacture of 
garments for export 
market
This company type 
in Ethiopia does not 
require a governing 
board
Sumbiri Intimate 
Apparel PLC
Ethiopia
Joint Venture
27%
27%
Manufacture of 
garments for export 
market
This company type 
in Ethiopia does not 
require a governing 
board
Hela Clothing  
Egypt S.A.E
Egypt
Subsidiary
99%
99%
Manufacture of 
garments for export 
market
P L D Jinadasa
R S P Amaratunga
R M F A Torky
K D V L Koralearachchi
D D M Arachchi

Annual Report 2022/23 | Hela Apparel Holdings PLC  241
Glossary
CAPITAL EMPLOYED
Total Shareholders’ funds plus debt and non-controlling 
interests
CURRENT RATIO
Current assets divided by current liabilities
DEBT TO EQUITY RATIO
Interest bearing borrowings including lease liabilities as 
a percentage of shareholders’ funds and non-controlling 
interests
DEFERRED TAXATION
Sum set aside for tax in the accounts of an entity that will 
become liable in a period other than that under review
DILUTED EARNINGS PER SHARE (EPS) 
Profit attributable to equity holders of the parent divided 
by the weighted average number of ordinary shares in issue 
during the period adjusted for options granted but not 
exercised
EARNINGS PER SHARE (BASIC) 
Profit attributable to equity holders of the parent divided 
by the weighted average number of ordinary shares in issue 
during the period
EFFECTIVE RATE OF TAXATION 
Tax expense divided by profit before tax
INTEREST COVER
Consolidated profit before interest and tax over interest 
expense
MARKET CAPITALISATION 
Number of shares in issue at the end of the period multiplied 
by the market price at the end of the period
NET ASSETS 
Total assets minus current liabilities, long-term liabilities, and 
non-controlling interests. 
NET ASSETS PER SHARE 
Net assets as at a particular financial year end divided by the 
number of shares in issue as at the current financial year end
NET DEBT 
Total debt minus cash and short-term deposits
NOPAT
Net Operating Profit After Tax
NET PROFIT MARGIN 
Profit after tax divided by total revenue 
OPERATING PROFIT MARGIN 
Operating Profit divided by total revenue 
PRICE EARNINGS RATIO 
Market price per share over diluted earnings per share
RETURN ON ASSETS 
Profit after tax as a percentage of average total assets
RETURN ON CAPITAL EMPLOYED (ROCE) 
Operating Profit as a percentage of average capital employed
RETURN ON EQUITY (ROE) 
Profit attributable to shareholders as a percentage of average 
shareholders’ funds
TOTAL DEBT 
Long and short-term loans, including overdrafts and lease 
liabilities
WORKING CAPITAL 
Current assets minus current liabilities

242  Hela Apparel Holdings PLC | Annual Report 2022/23
GRI Content Index 
Statement of use
Hela Apparel Holdings PLC has reported in accordance with the GRI Standards for the period 1st 
April 2022 to 31st March 2023
GRI 1 used
GRI 1: Foundation 2021
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
GENERAL DISCLOSURES
GRI 2: General 
Disclosures 
2021
2-1 Organisational details a.	 About Hela 
A gray cell indicates that reasons for omission are not permitted 
for the disclosure or that a GRI Sector Standard reference 
number is not available. 
2-2 Entities included 
in the organisation’s 
sustainability reporting
a.	 About this Report
b.	 Group directory
2-3 Reporting period, 
frequency and contact 
point
a.	 About this Report
b.	 Corporate 
information section
2-4 Restatements of 
information
a.	 About this Report
2-5 External assurance
a.	 About this Report
b.	 Independent 
Assurance 
Statement
2-6 Activities, value 
chain and other business 
relationships
a.	 About Hela Group
b.	 Our Business 
Model
c.	 Integrating 
Sustainability
d.	 Relationship Capital 
e.	 Human and Social 
Capital
 
 
 
 
2-7 Employees
a.	 Human and Social 
Capital
 
 
2-8 Workers who are not 
employees
a.	 Human and Social 
Capital
 
2-9 Governance 
structure and 
composition
a.	 Corporate 
Governance
 
 
 
2-10 Nomination and 
selection of the highest 
governance body
a.	 Corporate 
Governance
b.	 Nomination 
Committee Report
 
 
 
2-11 Chair of the highest 
governance body
a.	 Corporate 
Governance
 
 
 
2-12 Role of the 
highest governance 
body in overseeing the 
management of impacts
a.	 Corporate 
Governance
 
 
 
2-13 Delegation of 
responsibility for 
managing impacts
a.	 Corporate 
Governance

Annual Report 2022/23 | Hela Apparel Holdings PLC  243
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
2-14 Role of the highest 
governance body in 
sustainability reporting
 Not reported
 
 
2-15 Conflicts of interest a.	 Corporate 
Governance
 
 
 
2-16 Communication of 
critical concerns
a.	 Corporate 
Governance
 
 
 
2-17 Collective 
knowledge of the highest 
governance body
a.	 Corporate 
Governance
 
 
2-18 Evaluation of the 
performance of the 
highest governance body
 Not reported
Confidentiality 
constraints
 
2-19 Remuneration 
policies
a.	 Corporate 
Governance
 
 
 
2-20 Process to 
determine remuneration
a.	 Corporate 
Governance
b.	 Remuneration 
Committee Report
 
 
 
2-21 Annual total 
compensation ratio
 Not reported
Confidentiality 
constraints
 
2-22 Statement on 
sustainable development 
strategy
a.	 Chairman’s 
Message
b.	 CEO’s Message
 
 
 
2-23 Policy  
commitments
a.	 Corporate 
Governance
 
 
 
2-24 Embedding policy 
commitments
a.	 Corporate 
Governance
 
 
 
2-25 Processes to 
remediate negative 
impacts
a.	 Corporate 
Governance
 
 
 
2-26 Mechanisms for 
seeking advice and 
raising concerns
a.	 Corporate 
Governance
 
 
 
2-27 Compliance with 
laws and regulations
a.	 Corporate 
Governance
 
 
 
2-28 Membership 
associations
a.	 About Hela 
 
 
 
2-29 Approach to 
stakeholder engagement
a.	 Stakeholder 
Engagement
 
 
 
2-30 Collective 
bargaining agreements
a.	 Human and Social 
Capital > Employee 
Engagement> 
Relationships with 
Trade Unions

244  Hela Apparel Holdings PLC | Annual Report 2022/23
GRI Content Index
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
MATERIAL TOPICS
GRI 3: Material 
Topics 2021
3-1 Process to  
determine material  
topics
a.	 Determining 
Materiality
A gray cell indicates that reasons for omission are not permitted 
for the disclosure or that a GRI Sector Standard reference 
number is not available.
3-2 List of material  
topics
a.	 Determining 
Materiality
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Our Socio-
economic Impact
 
 
 
 
GRI 201: 
Economic 
Performance 
2016
201-1 Direct economic 
value generated and 
distributed
a.	 Our Socio-
economic Impact > 
Economic Value-
added Statement
 
 
 
 
201-2 Financial 
implications and other 
risks and opportunities 
due to climate change
 
  Not Reported
Due to limited 
information
 
 
201-3 Defined benefit 
plan obligations and 
other retirement plans
a.	 Notes to the 
financial statement
 
 
 
 
201-4 Financial 
assistance received from 
government
 Not Reported
 Not Applicable  
 
Market presence
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Human and Social 
Capital
 
 
 
 
GRI 202: 
Market 
Presence 2016
202-1 Ratios of standard 
entry level wage by 
gender compared to local 
minimum wage
a.	 Human and 
Social Capital > 
Remuneration 
Recognition and 
Rewards 
 
 
 
 
202-2 Proportion of 
senior management hired 
from the local community
a.	 Our Socio-
economic Impact
b.	 Human and Social 
Capital
 
 
Employees 
from the 
locality 
are given 
prominence
 
Indirect economic impacts
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Our Socio-
economic Impact
 
 
 
 
GRI 203: 
Indirect 
Economic 
Impacts 2016
203-1 Infrastructure 
investments and services 
supported
a.	 Our Socio-
economic Impact
 
 
 
 
203-2 Significant indirect 
economic impacts
a.	 Our Socio-
economic Impact
 
 
 
 
Procurement practices
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Relationship Capital  
 
 
 
GRI 204: 
Procurement 
Practices 2016
204-1 Proportion 
of spending on local 
suppliers
a.	 Relationship Capital  
 
 
 
Anti-corruption
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Corporate 
Governance

Annual Report 2022/23 | Hela Apparel Holdings PLC  245
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
GRI 205: Anti-
corruption 
2016
205-1 Operations 
assessed for risks related 
to corruption
a.	 Corporate 
Governance
 
 
 
 
205-2 Communication 
and training about anti-
corruption policies and 
procedures
a.	 Corporate 
Governance
 
 
 
 
205-3 Confirmed 
incidents of corruption 
and actions taken
a.	 Corporate 
Governance
 
 
 
 
Anti-competitive behavior
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
 
Not Reported
Not Material 
 
 
GRI 206: Anti-
competitive 
Behavior 2016
206-1 Legal actions 
for anti-competitive 
behavior, anti-trust, and 
monopoly practices
 
Not Reported
Not Material 
 
 
Tax
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Notes to the 
financial statements
 
 
 
 
GRI 207: Tax 
2019
207-1 Approach to tax
a.	 Notes to the 
financial statements
 
 
 
 
207-2 Tax governance, 
control, and risk 
management
a.	 Corporate 
Governance
 
 
 
 
207-3 Stakeholder 
engagement and 
management of concerns 
related to tax
a.	 Stakeholder 
Engagement 
 
 
 
 
207-4 Country-by-
country reporting
a.	 Notes to the 
financial statements
 
 
 
 
Materials
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Natural Capital > 
Management 
Approach
 
 
 
 
GRI 301: 
Materials 2016
301-1 Materials used by 
weight or volume
 
Not Reported
 Information 
incomplete
 
 
301-2 Recycled input 
materials used
 
Not Reported
 Information 
incomplete
 
 
301-3 Reclaimed 
products and their 
packaging materials
 
Not Reported
 Information 
incomplete
 
 
Energy
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Natural Capital 
> Management 
Approach 
 
 
 
 
GRI 302: 
Energy 2016
302-1 Energy 
consumption within the 
organisation
 a.	 Natural Capital 
> Energy 
Management
 
 
 
 
302-2 Energy 
consumption outside of 
the organisation
 
Not Reported
 Information 
incomplete

246  Hela Apparel Holdings PLC | Annual Report 2022/23
GRI Content Index
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
302-3 Energy intensity
 
Not Reported
 Information 
incomplete
 
 
302-4 Reduction of 
energy consumption
 a.	 Natural Capital 
> Energy 
Management 
 
 
 
 
302-5 Reductions in 
energy requirements of 
products and services
 
Not Reported
 
 
 
Water and effluents
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Natural Capital 
> Energy 
Management 
 
 
 
 
GRI 303: Water 
and Effluents 
2018
303-1 Interactions 
with water as a shared 
resource
a.	 Natural Capital> 
Water and Effluents
 
 
 
 
303-2 Management of 
water discharge-related 
impacts
a.	 Natural Capital> 
Water and Effluents
 
 
 
 
303-3 Water withdrawal a.	 Natural Capital> 
Water and Effluents
 
 
303-4 Water discharge
 
Not Reported
 Information 
incomplete
 
 
303-5 Water 
consumption
  
Not Reported 
 Information 
incomplete
 
 
Biodiversity
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Natural Capital> 
Management 
Approach
 
 
 
 
GRI 304: 
Biodiversity 
2016
304-1 Operational 
sites owned, leased, 
managed in, or adjacent 
to, protected areas and 
areas of high biodiversity 
value outside protected 
areas
 
 Not Reported
Not Applicable
 
 
304-2 Significant 
impacts of activities, 
products and services on 
biodiversity
 
 Not Reported
Not Applicable
 
 
304-3 Habitats protected 
or restored
 
 Not Reported
Not Applicable
 
 
304-4 IUCN Red List 
species and national 
conservation list species 
with habitats in areas 
affected by operations
 
 Not Reported
Not Applicable
 
 
Emissions
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Natural Capital> 
Management 
Approach
 
 
 
 
GRI 305: 
Emissions 2016
305-1 Direct (Scope 1) 
GHG emissions
a.	 Natural Capital> 
Managing 
Emissions

Annual Report 2022/23 | Hela Apparel Holdings PLC  247
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
305-2 Energy indirect 
(Scope 2) GHG emissions
a.	 Natural Capital> 
Managing 
Emissions
 
 
 
 
305-3 Other indirect 
(Scope 3) GHG emissions
a.	 Natural Capital> 
Managing 
Emissions
 
 
 
 
305-4 GHG emissions 
intensity
 
 Not Reported
Information 
Incomplete 
 
 
305-5 Reduction of  
GHG emissions
a.	 Natural Capital> 
Managing 
Emissions
 
 
 
 
305-6 Emissions 
of ozone-depleting 
substances (ODS)
 
 Not Reported
Information 
Incomplete 
 
 
305-7 Nitrogen oxides 
(NOx), sulfur oxides 
(SOx), and other 
significant air emissions
 
 Not Reported
 Information 
Incomplete 
 
 
Waste
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Natural Capital> 
Management 
Approach
 
 
 
 
GRI 306: Waste 
2020
306-1 Waste generation 
and significant waste-
related impacts
a.	 Natural Capital> 
Responsible 
Disposal of Waste
 
 
 
 
306-2 Management of 
significant waste-related 
impacts
 a.	 Natural Capital> 
Responsible 
Disposal of Waste
 
 
 No significant 
impact
 
306-3 Waste generated
a.	 Natural Capital> 
Responsible 
Disposal of Waste
 
 
 
 
306-4 Waste diverted 
from disposal
 
 Not Reported
 Information 
Incomplete
 
 
306-5 Waste directed to 
disposal
 
 Not Reported
 Information 
Incomplete
 
 
Supplier environmental assessment
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Relationship Capital  
 
 
 
GRI 308: 
Supplier 
Environmental 
Assessment 
2016
308-1 New suppliers 
that were screened using 
environmental criteria
a.	 Relationship Capital  
 
 
 
308-2 Negative 
environmental impacts 
in the supply chain and 
actions taken
a.	 Relationship Capital  
 
 
 
Employment
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Human and Social 
Capital
 
 
 
 
GRI 401: 
Employment 
2016
401-1 New employee 
hires and employee 
turnover
a.	 Human and 
Social Capital> 
Movements in the 
Team

248  Hela Apparel Holdings PLC | Annual Report 2022/23
GRI Content Index
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
401-2 Benefits provided 
to full-time employees 
that are not provided to 
temporary or part-time 
employees
a.	 Human and 
Social Capital> 
Remuneration, 
Recognition and 
Rewards
 
 
 
 
401-3 Parental leave
a.	 Human and Social 
Capital> Pursuing 
Gender Equality> 
Parental leave
 
 
 Maternity 
leave is 
provided as 
per regulations
 
Labor/management relations
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Human and Social 
Capital
 
 
 
 
GRI 402: Labor/
Management 
Relations 2016
402-1 Minimum notice 
periods regarding 
operational changes
a.	 Human and Social 
Capital> Employee 
Engagement> 
Relationships with 
Trade Unions
 
 
 
 
Occupational health and safety
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Human and Social 
Capital
 
 
 
 
GRI 403: 
Occupational 
Health and 
Safety 2018
403-1 Occupational 
health and safety 
management system
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
403-2 Hazard 
identification, risk 
assessment, and incident 
investigation
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
403-3 Occupational 
health services
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
403-4 Worker 
participation, 
consultation, and 
communication on 
occupational health and 
safety
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
403-5 Worker training on 
occupational health and 
safety
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
403-6 Promotion of 
worker health
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
403-7 Prevention 
and mitigation of 
occupational health and 
safety impacts directly 
linked by business 
relationships
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety

Annual Report 2022/23 | Hela Apparel Holdings PLC  249
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
403-8 Workers covered 
by an occupational health 
and safety management 
system
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
403-9 Work-related 
injuries
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
403-10 Work-related ill 
health
a.	 Human and 
Social Capital 
> Occupational 
Health and Safety
 
 
 
 
Training and education
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Human and Social 
Capital
 
 
 
 
GRI 404: 
Training and 
Education 2016
404-1 Average hours 
of training per year per 
employee
a.	 Human and Social 
Capital > Training 
and Development
 
 
 
 
404-2 Programs for 
upgrading employee skills 
and transition assistance 
programs
a.	 Human and Social 
Capital > Training 
and Development
 
 
 
 
404-3 Percentage of 
employees receiving 
regular performance 
and career development 
reviews
a.	 Human and 
Social Capital > 
Remuneration, 
Rewards and 
Recognition> 
Performance 
Management
 
 
 
 
Diversity and equal opportunity
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Corporate 
Governance
 
 
 
 
GRI 405: 
Diversity 
and Equal 
Opportunity 
2016
405-1 Diversity of 
governance bodies and 
employees
a.	 Corporate 
Governance
 
 
 
 
405-2 Ratio of basic 
salary and remuneration 
of women to men
a.	 Human and 
Social Capital > 
Remuneration, 
Rewards and 
Recognition
 
 
 There is no 
gender bias in 
determining 
the 
remuneration 
of employees
 
Non-discrimination
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Corporate 
Governance 
 
 
 
 
GRI 406: Non-
discrimination 
2016
406-1 Incidents of 
discrimination and 
corrective actions taken
a.	 Human and Social 
Capital > Diversity 
and Inclusion
 
 
 
 
Freedom of association and collective bargaining
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Human and Social 
Capital

250  Hela Apparel Holdings PLC | Annual Report 2022/23
GRI Content Index
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
GRI 407: 
Freedom of 
Association 
and Collective 
Bargaining 
2016
407-1 Operations and 
suppliers in which the 
right to freedom of 
association and collective 
bargaining may be at risk
a.	 Human and Social 
Capital > Employee 
Engagement> 
Relationships with 
Trade Unions
 
 
 
 
Child labor
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Human and Social
a.	 Capital Corporate 
Governance
 
 
 
 
GRI 408: Child 
Labor 2016
408-1 Operations and 
suppliers at significant 
risk for incidents of child 
labor
a.	 Human and Social 
Capital
 
 
 The Group 
maintains a 
zero child 
labour policy
 
Forced or compulsory labor
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Human and 
Social Capital 
and Corporate 
Governance 
 
 
 
 
GRI 409: 
Forced or 
Compulsory 
Labor 2016
409-1 Operations and 
suppliers at significant 
risk for incidents of 
forced or compulsory 
labor
a.	 Human and Social 
Capital > Team 
Profile
 
 
 
 
Security practices
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
 
 
 
 
 
GRI 410: 
Security 
Practices 2016
410-1 Security personnel 
trained in human rights 
policies or procedures
 
Not Reported
 Not Material
 
 
Rights of Indigenous People
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
 
 
 
 
GRI 411: Rights 
of Indigenous 
Peoples 2016
411-1 Incidents of 
violations involving rights 
of indigenous peoples
 
Not Reported
Not Material 
 
 
Local communities
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Relationship Capital  
 
 
 
GRI 413: Local 
Communities 
2016
413-1 Operations 
with local community 
engagement, impact 
assessments, and 
development programs
a.	 Relationship 
Capital> Building 
Community 
Relationships
 
 
 
 
413-2 Operations 
with significant actual 
and potential negative 
impacts on local 
communities
a.	 Natural Capital

Annual Report 2022/23 | Hela Apparel Holdings PLC  251
Gri Standard/  
Other Source
Disclosure 
Location 
Omission
Gri Sector 
Standard  
Ref. No.
Requirement(S)  
Omitted
Reason
Explanation
Supplier social assessment
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Relationship Capital
 
 
 
GRI 414: 
Supplier Social 
Assessment 
2016
414-1 New suppliers 
that were screened using 
social criteria
a.	 Relationship Capital
 
 
 
414-2 Negative social 
impacts in the supply 
chain and actions taken
a.	 Relationship Capital 
 
 
 
Public policy
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
 
Not Reported
 Not applicable
 
 
GRI 415: Public 
Policy 2016
415-1 Political 
contributions
 
Not Reported
 Not applicable
 
 
Customer health and safety
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Relationship Capital
 
 
 
GRI 416: 
Customer 
Health and 
Safety 2016
416-1 Assessment of the 
health and safety impacts 
of product and service 
categories
a.	 Natural Capital> 
Chemical 
Management 
 
 
 
416-2 Incidents of non-
compliance concerning 
the health and safety 
impacts of products and 
services
a.	 Relationship Capital
 
 
 
Marketing and labeling
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
a.	 Relationship Capital
 
 
 
GRI 417: 
Marketing and 
Labeling 2016
417-1 Requirements 
for product and service 
information and labeling
a.	 Relationship Capital 
 
 
 
417-2 Incidents of non-
compliance concerning 
product and service 
information and labeling
a.	 Relationship Capital 
 
 
 
417-3 Incidents of 
non-compliance 
concerning marketing 
communications
a.	 Relationship Capital 
 
 
 
Customer privacy
GRI 3: Material 
Topics 2021
3-3 Management of 
material topics
  
Not Reported
 Not Material
 
 
GRI 418: 
Customer 
Privacy 2016
418-1 Substantiated 
complaints concerning 
breaches of customer 
privacy and losses of 
customer data
 
Not Reported
 Not Material

252  Hela Apparel Holdings PLC | Annual Report 2022/23
Notes

Annual Report 2022/23 | Hela Apparel Holdings PLC  253

254  Hela Apparel Holdings PLC | Annual Report 2022/23
Notice of Meeting
NOTICE IS HEREBY GIVEN THAT the Second Annual 
General Meeting of Hela Apparel Holdings PLC will be held on 
Tuesday, 26 September 2023 at 3.30pm as an online audio-
visual meeting, centred from the Registered Office of the 
Company at No. 35, Balapokuna Road, Colombo 06 for the 
following purposes:
1.	
ORDINARY BUSINESS
1.1	
To receive and consider the Annual Report of the 
Board of Directors on the affairs of the Company and 
its subsidiaries and the Statement of Accounts for the 
year ended 31 March 2023 and the Report of the 
Auditors thereon.
1.2	
To pass the ordinary resolution set out below to re-
appoint Mr. A R Rasiah who is over 70 years of age, as 
a Director of the Company;
	
“IT IS HEREBY RESOLVED THAT the age limit 
stipulated in Section 210 of the Companies Act, No. 
07 of 2007 shall not apply to Mr. A R Rasiah who is 
over 70 years of age and that he be and is hereby 
re-appointed a Director of the Company in terms of 
Section 211 of the Companies Act No. 07 of 2007 up 
to the next Annual General Meeting of the Company.”
1.3	
To elect Mr. Shlomo Doron as a Non-Executive 
Director in accordance with Article No. 27 (2) of the 
Articles of Association of the Company;
1.4	
To elect Mr. Shesan Khan as a Non-Executive Director 
in accordance with Article No. 27 (2) of the Articles of 
Association of the Company;
1.5	
To re-appoint Messrs PricewaterhouseCoopers, 
Chartered Accountants, the retiring Auditors and to 
authorise the Directors to determine their remuneration.
1.6	
To authorise the Directors to determine donations for 
the year ending 31 March 2024 and up to the date of 
the next Annual General Meeting.
2.	
SPECIAL BUSINESS
2.1	
Amendments To The Articles Of Association  
	
To adopt the following resolution as a special resolution 
for the amendment of the Articles of Association 
of the Company, for the purpose of (i) correcting a 
typographical error in paragraph (4) of Article 19, (ii) 
authorizing the chairperson/director and secretary of the 
Company to issue certified copies of meeting minutes 
and resolutions, (iii) allowing one director together with 
the company secretary to execute documents that are 
required by law to be in writing and be notarially attested, 
and (iv) removing the reference to a common seal, in the 
method of contracting:
	
“IT IS HEREBY RESOLVED THAT the Articles of 
Association of the Company be and are hereby 
amended as follows:
1.	 Paragraph (4) of Article 19 be deleted in the 
entirety and the following new paragraph be 
inserted in substitution thereof:
“(4)	 No proxy is effective in relation to a meeting, 
unless a copy of the notice of appointment is 
given to the Company not less than forty-eight 
(48) hours before the start of the meeting.”
2.	 The following new paragraph, numbered as 
paragraph (3), be inserted to Article 20 immediately 
after the existing paragraph (2) thereof:
“(3)	 The chairperson/Director and the secretary 
of the Company is authorized to issue a 
copy of such minutes or any resolution of 
shareholders signed as duly certified and 
such certified copy shall be deemed to 
be a document duly authenticated by the 
Company.”
3.	 Paragraph (2) of Article 29 be deleted in the 
entirety and the following new paragraph be 
inserted in substitution thereof:
“(2)	 An obligation which if entered into by a 
natural person is required by law to be 
in writing signed by that person and be 
notarially attested, such obligation may be 
entered into by the Company by:
(a)	
two (2) directors of the Company;
(b)	
if there be only one (01) director, by that 
Director; 
(c)	
one (01) or more attorneys appointed by 
the Company; or
(d)	
one (01) Director and the secretary of 
the Company.”
4.	 Paragraph (3) of Article 29 be deleted in the entirety.
5.	 The following new paragraph, numbered as 
paragraph (3), be inserted to Article 41 immediately 
after the existing paragraph (2) thereof:
“(3)	 The chairperson/Director and the secretary of 
the Company is authorized to issue a copy of 
such minutes or any resolution of the Board 
signed as duly certified and such certified 
copy shall be deemed to be a document duly 
authenticated by the Company.”
By Order of the Board,
HELA APPAREL HOLDINGS PLC
(Ms) J Kuhanesan
Company Secretary 
04 September 2023 
At Colombo
Notes: 	
1)	
A shareholder entitled to attend and vote at the 
Meeting is entitled to appoint a Proxy who need not be 
a shareholder, to attend and vote instead of him/her. 
2) 	
A Form of Proxy is enclosed in this Report.
3) 	
The completed Form of Proxy should be sent by email 
to hela_agm@helaclothing.com by 3.30 pm on 24 
September 2023.

Annual Report 2022/23 | Hela Apparel Holdings PLC  255
Form of Proxy
HELA APPAREL HOLDINGS PLC
*I/We ......................................................................................................................................................................................................................... of
............................................................................................................................................................................................................................ being a
*Shareholder / Shareholders of Hela Apparel Holdings PLC, hereby appoint ............................................................................................of
.................................................................................................................  or failing him/her
Mr. A R Rasiah	
or failing him
Mr. P L D Jinadasa	
or failing him
Mr. G P Gunawardana	
or failing him
Ms. T Peries	
or failing her
Mr. P Schleiffer	
or failing him
Dr. A J Alderton	
or failing him
Mr. S Doron	
or failing him
Mr. S Khan 	
or failing him
as *my/our proxy to vote for me/us on my/our behalf for/against the resolution and/or speak at the Second Annual General 
Meeting of the Company to be held on 26 September 2023 at 3.30pm as a virtual AGM and at any adjournment thereof.
For
Against
1.
ORDINARY BUSINESS
1.1 
To pass the ordinary resolution set out in the Notice of Meeting under item 1.2 for the re-
appointment of Mr. A R Rasiah
1.2
To elect Mr. Shlomo Doron as a Non-Executive Director in accordance with Article No. 27 (2) of 
the Articles of Association of the Company
1.3
To elect Mr. Shesan Khan as a Non-Executive Director in accordance with Article No. 27 (2) of 
the Articles of Association of the Company
1.4
To re-appoint Messrs PricewaterhouseCoopers, Chartered Accountants, the retiring Auditors and 
to authorise the Directors to determine their remuneration
1.5
To authorise the Directors to determine donations for the year ending 31 March 2024 and up to 
the date of the next Annual General Meeting
2.
SPECIAL BUSINESS
2.1
To pass the special resolutions set out in the Notice of Meeting under item 2.1
 	
	
Signed this …………… day of ………………………. Two Thousand and Twenty Three
.........................................................................
Signature
1) 	 *Please delete the inappropriate words.
2) 	 Instructions as to completion are noted on the reverse thereof.

256  Hela Apparel Holdings PLC | Annual Report 2022/23
INSTRUCTIONS AS TO COMPLETION
1.	 The full name, National Identity Card number and the registered 
address of the shareholder appointing the Proxy and the relevant 
details of the Proxy should be legibly entered in the Form of 
Proxy which should be duly signed and dated. 
2.	 The Proxy Shall 
(a)	 In the case of an individual be signed by the shareholder or 
by his/her attorney, and if signed by an Attorney, a notarially 
certified copy of the Power of Attorney should be attached to 
the completed Proxy if it has not already been registered with 
the Company.
(b)	 In the case of a company or corporate / statutory body either 
be under its Common Seal or signed by its Attorney or by an 
Officer on behalf of the company or corporate / statutory 
body in accordance with its Articles of Association or the 
Constitution or the Statute (as applicable). 
3.	 Please indicate with a ‘X’ how the Proxy should vote on each 
resolution. If no indication is given, the Proxy in his/her discretion 
will vote as he/she thinks fit. 
4. 	 To be valid, the completed Form of Proxy should be emailed 
to hela_agm@helaclothing.com by or before 3.30 pm on 24 
September 2023.
Form of Proxy

Corporate Information
NAME OF COMPANY
Hela Apparel Holdings PLC
LEGAL FORM
Public Limited Liability Company
incorporated under the Companies Act No. 7 of 2007
DATE OF INCORPORATION
11 October 2018
COMPANY REGISTRATION NUMBER
PQ00205151
ACCOUNTING YEAR END
31 March 
PRINCIPAL ACTIVITY OF THE COMPANY
Providing consultancy and support services to group 
companies. 
REGISTERED OFFICE
35, Balapokuna Road,
Colombo 06, Sri Lanka
WEBSITE 
www.helaclothing.com
SECRETARY
Ms. Janseni Kuhanesan
47/12A, Sri Gnanendra Road
Ratmalana, Sri Lanka
AUDITORS
PricewaterhouseCoopers
100, Braybrooke Place,
Colombo 02, Sri Lanka
COMPANY REGISTRARS
SSP Corporate Services (Pvt) Ltd
101, Inner Flower Road,
Colombo 03, Sri Lanka
BANKERS 
Bank of Ceylon  
Commercial Bank of Ceylon PLC  
Commercial Bank of Ethiopia  
DFCC Bank PLC  
Equity Bank Kenya Limited  
Hatton National Bank PLC  
National Bank of Egypt  
National Development Bank PLC  
Nations Trust Bank PLC  
People’s Bank  
Sampath Bank PLC  
Standard Chartered Bank PLC  
Qatar National Bank 
Standard Chartered Bank Mauritius Limited
Abu Dhabi Islamic Bank
PRINCIPAL ACTIVITIES OF THE GROUP
Manufacture of apparel for export markets and  
provision of front-end services to foreign customers
DIRECTORS
A R Rasiah
P L D Jinadasa
G P Gunawardana
A Nanayakkara (resigned wef 31 August 2022)
T S Peries
P Schleiffer
A J Alderton
S R Khan (appointed wef 5 October 2022)
S Doron (appointed wef 5 October 2022)
AUDIT & RISK COMMITTEE
G P Gunawardana 
A J Alderton
T S Peries
P Schleiffer
A R Rasiah
REMUNERATION COMMITTEE
T S Peries 
A J Alderton
G P Gunawardana
A R Rasiah
S Khan
RELATED PARTY TRANSACTIONS REVIEW 
COMMITTEE
G P Gunawardana 
T S Peries
A J Alderton
P Schleiffer
A R Rasiah
NOMINATION COMMITTEE
A R Rasiah	
A J Alderton
P Schleiffer
T S Peries
DIRECT SUBSIDIARY
Hela Clothing (Private) Limited
INDIRECT SUBSIDIARIES
Foundation Garments (Private) Limited
F D N Sourcing (Private) Limited
Jinadasa Bennett (Private) Limited
Foundation Bennett (Private) Limited
Alpha Textiles (Private) Limited
Hela Investment Holdings Limited
Hela Indochine Apparel Private Limited Company
Hela Intimates EPZ Limited
Hela USA, Inc.
Hela Clothing Egypt SAE
JOINT VENTURES
Sumbiri Intimate Apparel Private Limited Company 
Safeguard Workwear EPZ Limited

35 Balapokuna Road, Colombo 6, Sri Lanka
www.helaclothing.com