Impact of Green Reporting for Business Valuation: Study of Rubber Manufacturing SME in Sri Lanka

Sri Lankan Journal of Real Estate Department of Estate Management and Valuation, University of Sri Jayewardenepura (2015)

15 Pages Posted: 13 Mar 2017

See all articles by Sampath Dayaratne

Sampath Dayaratne

University of Sri Jayewardenepura

G.H. Wickremathillake

Ace Property & Business Consultants (Pvt.) Ltd.

Kennedy Gunawardana

University of Sri Jayewardenepura

Date Written: 2015

Abstract

Key economic players of Small and Medium Scale Industries are eager to provide final products to meet the market demand. But they are not considering the environmental impact on the manufacturing process. This has resulted in climate change which led to global warming. Several researches have been carried out in this regard and mitigation measures have been introduced, but there is not a semblance of implementation of measures in minimization global disposition through green reporting of carbon dioxide emission level. Hence, this research has been carried out considering how green reposting can lead to derive fair business valuation, by doing a case study in the sphere of rubber manufacture. This case study is carried out by applying the net asset value method. Findings have revealed that, energy consumption is associated at the rubber mill itself and emissions connected to productivity of kW/H of energy consumption and emissions from the production of rubber band amounting 1.67 ton CO2-eq/ton product. There is a vital finding from this research — mainly there is no record of environmental impact due to manufacturing process to derive fair business valuation. Any business valuer could directly benefit from these findings in order to derive fair business valuation methods of price to earnings ratio, net asset value and net present value through green reporting to minimize global warming potential. Also policy makers can develop processes to promote the green reporting as a mandatory requirement for business valuation.

Keywords: Business Valuation, Green Reporting, Energy-Efficiency

Suggested Citation

Dayaratne, Sampath and Wickremathillake, G.H. and Gunawardana, Kennedy, Impact of Green Reporting for Business Valuation: Study of Rubber Manufacturing SME in Sri Lanka (2015). Sri Lankan Journal of Real Estate Department of Estate Management and Valuation, University of Sri Jayewardenepura (2015). Available at SSRN: https://ssrn.com/abstract=2931979

Sampath Dayaratne

University of Sri Jayewardenepura ( email )

Nugegoda
Gandodawila
Gangodawila, Nugegoda 10250
Sri Lanka

G.H. Wickremathillake

Ace Property & Business Consultants (Pvt.) Ltd.

No. 192, Leesa, Dummaladeniya West
Wennappuwa
Sri Lanka

Kennedy Gunawardana (Contact Author)

University of Sri Jayewardenepura ( email )

Nugegoda
Gandodawila
Gangodawila, Nugegoda 10250
Sri Lanka

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