EXPLANATORY NOTES: The LMD 50 is compiled from information contained in the Annual Reports of listed companies. Its principal ranking is based on turnover. Consolidated data for financial years ended during the 2006/07 fiscal year (i.e. 1 April 2006 to 31 March 2007) has been utilised for this purpose. Accordingly, comparative information relates to the previous (2005/06) fiscal year, but not including restated data – prior year’s rankings are not restated either. Respective year ends (e.g. M – March) are denoted in the chart above.

The term ‘Turnover’ is used for all companies. For banks, turnover is used to mean income; and for insurance companies, it is used to mean premiums. Turnover excludes related taxes, levies and intra-group sales. Profit After Tax is prior to adjustments for extraordinary items and minority interests. Total Assets comprises both fixed and current assets...

Shareholders’ Funds consists of issued capital, reserves and negative goodwill, but not minority interests nor long-term liabilities. Market Capitalisation

is the total market value of shares. It is based on values at the end of the fiscal year (i.e. not company financial-year ends). Chairman includes Chairwomen. Chief Executive refers to Deputy Chairpersons, Executive Chairpersons, Managing Directors, Chief Executive Officers or General Managers. Share Profiles are based on values, ratios and yields at the end of the fiscal year

(i.e. not company financial-year ends). Only Annual Reports that had been submitted to the Colombo Stock Exchange (CSE) by the stipulated deadline were utilised. The deadline for submission

of Annual Reports, according to CSE regulations, is six months after the date of a company’s financial year, plus a grace period of a further five days.

Turnover and profit after tax of companies with accounting periods in excess of 12 months are annualised. Companies whose dealings were suspended by the CSE at the date of compilation of The LMD 50 have not been considered. Where a subsidiary’s financial statements are, by and large, the same as its holding company’s accounts, it is not considered for ranking purposes. There is no disclosure of turnover-based taxes and/or levies (which are excluded from ‘Turnover’ for the purpose of compiling THE LMD 50), if any, in the financial statements of the following companies included in THE LMD 50: SLT, Lanka IOC, Dialog Telekom, Commercial Bank, HNB, Seylan Bank, Ceylinco Insurance, CIC, Sampath Bank, Tokyo Cement, Dipped Products, DFCC Bank, NDB Bank, Kuruwita Textiles, United Motors, Nations Trust Bank, Hayleys MGT, Eagle Insurance, Ceylon Grain Elevators, C. W. Mackie, The Ceylon Brewery.

SOURCES OF INFORMATION: The LMD 50 is compiled by Media Services (Private) Limited from information provided by the Colombo Stock Exchange and from Annual Reports.

The LMD 50 is published in December each year.

DISCLAIMER: This listing is published for information purposes only. It should not be regarded as a comprehensive guide for making business and/or investment decisions.