This report marks our 14th year of integrated reporting, covering Teejay’s performance for the financial year that ended on 31 March 2025. It offers a holistic overview of our operations, encompassing our financial strength, governance practices, risk management strategies, and our dedication to environmental and social stewardship.

In addition to showcasing the achievements of Teejay’s 25th year in business, this report sets out our vision for the future. It explores Teejay’s proactive measures to remain competitive with emerging trends, including our location strategy, and how we address business impacts and changing stakeholder expectations. Furthermore, it chronicles our continuous sustainability efforts, as we refine our reporting to accurately reflect Teejay's performance and future potential.

Since Teejay Lanka's inception, we have used the United States Dollar as our functional currency. This accurately reflects the primary economic environment in which our Group operates, thereby providing a contextualised representation of our performance and progress towards achieving financial and growth objectives. To fulfil the listing requirements of the Colombo Stock Exchange (CSE), benchmark our performance within the Sri Lankan capital market, and offer insights into shareholder returns, the financial statements presented in this report are translated into Sri Lanka Rupees.

REPORTING SCOPE AND BOUNDARY

This report covers the consolidated operations of Teejay Lanka PLC and its subsidiaries (the Group) in Sri Lanka and India, for the financial year from 1 April 2024 to 31 March 2025, aligning with our annual reporting cycle for both financial and sustainability performance and excluding financials pertaining to Nubian threads Private Limited & Teejay’s other strategic locations are not applicable to 204/25 as the new strategic locations have a negligible level of materiality level. It primarily focuses on the Group's overall performance and position, particularly within our core fabric manufacturing and printing operations. Unless otherwise stated, all non-financial and operational information relates to this same period and scope.

We confirm there have been no material restatements of financial or operational information, nor any significant changes to our Group structure or supply chain during this reporting period. Where applicable, any changes to the presentation of performance or progress are detailed in the relevant sections of this Report.

OUR COMMITMENT TO TRANSPARENCY

At Teejay, we believe in transparent and accountable corporate reporting. We achieve this by strictly following internationally recognised frameworks and all established local standards, ensuring our financial statements and sustainability disclosures are comparable, consistent and reliable.

TAGS – Bronze Award for Manufacturing Sector

• Certificates of Recognition in Sustainability Reporting
• Certificates of Recognition in Integrated Reporting
• Certificates of Recognition in Corporate Governance Disclosure and Non-Financial Services

Financial Statement Alignment

Our financial statements in this report comply with both the Sri Lanka Financial Reporting Standards (SLFRS) and the Sri Lanka Auditing Standards (SLAuSs).

Corporate Governance Overview

This report offers a comprehensive view of Teejay's corporate governance practices and performance. We align with the statutes, regulations, and guidance set forth by the Companies Act, the Colombo Stock Exchange (CSE), the Securities and Exchange Commission of Sri Lanka (SEC), and The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka).

• Laws and regulations of Companies Act No. 07 of 2007
• Listing Rules of the Colombo Stock Exchange (revisions to date)
• Code of Best Practice on Corporate Governance (2023) issued by The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka)
• Code of Best Practice on Corporate Governance (2013) issued jointly by CA Sri Lanka and the Securities and Exchange Commission of Sri Lanka (SEC)
• Code of Best Practices on Related Party Transactions (2013) advocated by SEC, SEC Act No. 19 of 2021, including directives and circulars

Sustainability Reporting Framework

This report incorporates topic-specific standards from the Global Reporting Initiative (GRI) – GRI Standards, informed by our identified material topics. Teejay Lanka PLC has reported in accordance with these GRI Standards for the period 1 April 2023 to 31 March 2024. For a complete list of disclosures referenced, please see the GRI Content Index on page Gri Content Index.

Beyond reporting our sustainability impacts in line with GRI Standards, the Group has also aligned its investor-focused sustainability disclosures with IFRS S1 and S2 reporting requirements. This alignment follows a double materiality approach and the identification of sustainability-related risks and opportunities (SRROs) stemming from our material impacts. Consequently, our disclosures also include indicators from the SASB Standards, principles of integrated reporting (including capital accounting and value creation), and recommendations from the Task Force on Climate-related Financial Disclosures (TCFD). Collectively, these frameworks provide a comprehensive structure for reporting on environmental, social and governance (ESG) topics, ensuring our disclosures are comparable, consistent, and reliable.

Benefits to Stakeholders

This annual report offers significant benefits to all our stakeholders. Shareholders are offered deeper insights into our long-term sustainability and risk management, enabling more informed investment decisions. Employees can better understand our values and strategic direction, boosting purpose and motivation. Customers gain clarity on our commitment to ethical practices and social responsibility, which increases trust and brand loyalty. Suppliers are informed of our long-term vision and goals for shared value creation, fostering stronger alignment and collaboration. Communities can learn of our impact on the local environment and society, allowing them to evaluate our value as a corporate citizen. Finally, regulators and governments can confirm our responsible operations and compliance with regulations, promoting good corporate governance and sustainable practices.

DEFINING MATERIALITY

Our corporate disclosures are guided by the principles of Double Materiality, specifically incorporating both Impact Materiality and Financial Materiality. This approach allows us to report on the impacts of our business operations on our broader stakeholder groups, while providing sustainability-related information relevant to primary report users.

The Sustainability Integration section on Our Transformative Strategy page , details how Teejay identifies and addresses double materiality. We begin by identifying impact-based sustainability topics, which then lead to the identification of sustainability-related risks and opportunities (SRROs). This process also considers the dependencies of external factors on our Company. While our impacts are managed through our comprehensive ESG Management Framework, SRROs are managed by both the ESG Management Framework and the Enterprise Risk Management function. The in-depth Operational Review from page Supply Chain to Digital Transformation, further discusses the execution of Teejay’s strategies for managing both our impacts and SRROs.

BEYOND THE PRECAUTIONARY PRINCIPLE

Teejay's operational decisions are guided by the Precautionary Principle, prioritising resource consumption, environmental pollution, and climate change. At a minimum, we ensure full compliance with all applicable laws and regulations. However, we strive to exceed these statutory obligations by benchmarking industry standards and global best practices to maintain our leading position in the industry.

HOW THIS REPORT IS STRUCTURED

This report is structured to provide a cohesive picture of our operations.

The Overview (pages About Teejay Lanka to Performance Highlights ) offers background information on the report itself, describes the Group and the scope of its activities, and highlights our achievements and performance for the year.

The Strategic Review (pages Chairman's Statement to Our Transformative Strategy ) provides a summary of our financial performance within the context of the macroeconomic environment and Teejay’s strategic approach to building a sustainable business with a long-term view of value creation.

The Operational Review (pages Supply Chain to Digital Transformation) offers a comprehensive view of Teejay’s operational performance. This section considers material sustainability topics, stakeholder value, and business goals, incorporating the concept of capital accounting to ensure comparability, consistency, and connectivity. The following icons are used to indicate discussions surrounding our primary capitals.

EXTERNAL ASSURANCE AND OVERSIGHT

We ensure the transparency, accuracy, and credibility of our corporate reporting through a combined-assurance model. Our Financial Statements and their corresponding audits are externally assured by Deloitte Partners, Sri Lanka. Similarly, our Environmental, Social, and Governance (ESG) performance undergoes independent audit and assurance by Ernst & Young, Sri Lanka.

Concurrently, all financial, compliance-related, and operating controls are evaluated through the Group's management audit and system review, which forms part of our internal audit function. A crucial element of our internal controls is Board oversight: the Board Audit Committee actively oversees and monitors the effectiveness of both our financial reporting and internal control systems.

assurance was obtained in accordance with the GRI Standards and the Integrated Reporting Framework, confirming the accuracy and alignment of the reported disclosures.

AVAILABLE FROM

Teejay Lanka PLC
Annual Report 2024/25
Publication date: 5 June 2025

Available online in PDF at
https://www.teejay.com/investor/reports-announcements

Feedback

We are continuously enhancing our corporate reporting and disclosure, and value your feedback. Please share your thoughts, suggestions, and feedback by contacting:

Ms Renuja Selvanathan
Chief Financial Officer
Teejay Lanka PLC
Block D8-D14,
Seethawaka Export Processing Zone,
Avissawella, Sri Lanka.
Email: RenujaS@teejay.com