SECTION 2 -
Corporate Information

This section gives a description of the reporting entity, the principal activities of the Company and Group entities and the identification of Financial Statements and its authorisation.

2.1 Reporting Entity

Diesel & Motor Engineering PLC (the Company) is a limited liability Company listed on the Colombo Stock Exchange, incorporated and domiciled in Sri Lanka. The Company and its subsidiaries have the registered office at No. 65, Jetawana Road, Colombo 14. The ordinary shares of the Company are being traded in the Colombo Stock Exchange.

2.2 Consolidated Financial Statements

The Consolidated Financial Statements of Diesel & Motor Engineering PLC as at and for the year ended 31st March 2014 comprise the Company and its fully-owned subsidiaries (together referred to as the ‘Group’ and individually as ‘Group Entities’).

Diesel & Motor Engineering PLC does not have any identifiable parent of its own.

The Financial Statements of all companies in the Group are prepared to a common financial year, which ends on 31st March.

2.3 Principal activates and nature of operations

The principal activities of the Company and its subsidiaries are as follows:

Entity

Principal Business Activities

The Company

Diesel & Motor Engineering PLC

Import, sale and repair of passenger vehicles, commercial vehicles, material handling machinery, construction machinery, agri machinery, power tools, import & sale of vehicle spares, components, accessories, providing lighting solutions and storage systems.

Fully-owned Subsidiaries

Dimo (Pvt) Ltd.

Sale and after sales services of biomedical equipment, power engineering solutions, building technologies, generator sets, diesel engines for marine propulsion & rail traction, and fluid management systems.

Dimo Travels (Pvt) Ltd.

Provision of transportation facilities.

Dimo Industries (Pvt) Ltd.

Import and sale of tyres.

There were no significant changes in the nature of the principal activities of the Group and the Company during the financial year under review. Activities of the Group are described in more detail in the ‘Group Structure’.

All subsidiaries of the Company have been incorporated in Sri Lanka.

The Directors have made an assessment of the Group’s ability to continue as a going concern in the foreseeable future, and they do not intend to liquidate or to cease trading activities of any of Group entities.

2.4 Approval of Financial statements by the Board of Directors

The Financial Statements for the year ended 31st March 2014, were authorised for issue by the Board of Directors on 23rd May 2014.