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26 Financial and Operating Highlights (in Rufiyaa) Operations Revenue 281,152,337 19,158,605 Operating profit margin (%) 40% 27% Profit for the year 114,447,762 7,653,448 Earnings per share (Rf) Return on equity (%) 33% 4% Dividend paid (per Share) Cash from operations 425,162, ,305,847 Financial Position Cash 433,654, ,894,590 Total assets 1,754,812,589 1,392,219,646 Share Price Movements Closing Price Year High Year Low Market Capitalisation year end 661,302, ,332,420

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31 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC INCOME STATEMENT Year ended 31 December 2008 COMPANY GROUP Year ended Year ended Year ended Year ended Restated Restated Note Rf Rf Rf Rf Revenue 3 281,152,337 19,158, ,152,337 19,158,605 Cost of sales 7 (85,666,568) (5,780,838) (85,728,468) (5,780,838) Gross profit 195,485,769 13,377, ,423,869 13,377,767 Other income 4 49,326,268 5,690,700 49,387,316 6,065,415 Selling and distribution costs 9 (13,416,804) (194,004) (13,482,832) (228,551) Administrative expenses 8 (119,078,216) (13,634,389) (120,807,528) (14,084,308) Operating profit 6 112,317,017 5,240, ,520,825 5,130,323 Finance revenue 5 23,797,121 4,878,771 23,797,121 4,878,771 Finance cost 10 (21,666,376) (2,465,397) (21,666,376) (2,465,397) Profit for the year 114,447,762 7,653, ,651,570 7,543,697 Attributable to: Minority shareholders - - (96,803) (2,391) Equity holders of the parent 114,447,762 7,653, ,748,373 7,546, ,447,762 7,653, ,651,570 7,543,697 Earnings per share The accounting policies and notes on pages 6 through 21 form an integral part of the financial statements. 30 th April 2009 Male'

32 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC BALANCE SHEET As at 31 December 2008 COMPANY GROUP As at As at As at As at Restated Restated Note Rf Rf Rf Rf ASSETS Non-current assets Property, plant and equipment 12 39,075, ,625,675 39,969, ,625,675 Intangible assets 13 97,168 87, ,221 87,091 Investment property ,974, ,974,483 - Investments in subsidiary ,000, ,400, ,009,146, ,112, ,224, ,712,766 Current assets Inventories 16-10,461,346-10,461,346 Trade ad other receivables ,011, ,750, ,120, ,750,944 Cash and bank balances ,654, ,894, ,582, ,899, ,665, ,106, ,703, ,111,678 TOTAL ASSETS 1,754,812,589 1,392,219,646 1,656,927,190 1,140,824,444 SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Share capital ,750, ,797, ,750, ,797,750 Revaluation reserve 198,805, ,805,825 - Accumulated losses/profits (34,203,954) 2,397,304 (36,010,703) 2,289, ,352, ,195, ,545, ,087,694 Minority interests - - 5,500,806 5,597,609 Total equity 345,352, ,195, ,046, ,685,303 Non-current liabilities Interest bearing borrowings ,575, ,115, ,575, ,115,000 Current liabilities Interest bearing borrowings 19 70,675,000 14,135,000 70,675,000 14,135,000 Trade and other payables ,146, ,997, ,566, ,039,848 Amount due to related parties ,000, ,927, Bank overdraft ,064,019 57,849, ,064,019 57,849,293 1,158,885, ,909,592 1,057,305, ,024,141 TOTAL EQUITY AND LIABILITIES 1,754,812,589 1,392,219,646 1,656,927,190 1,140,824,444 The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by, Name of the Director Signature 1) Mohamed Mihad 2) Hassan Zareer The accounting policies and notes on pages 6 through 21 form an integral part of the financial statements. 30 th April 2009 Male'

33 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC STATEMENT OF CHANGES IN EQUITY Year ended 31 December 2008 COMPANY Share Revaluation Accumulated Total capital Reserve Profits/(Losses) Restated Restated Rf Rf Rf Rf Balance as at 1 January ,797,750 - (4,646,103) 163,151,647 Share issue expenses - - (610,041) (610,041) Net profit for the year - - 7,653,448 7,653,448 Balance as at 31 December ,797,750-2,397, ,195,054 Issuance of share capital 12,952, ,952,800 Share issue expenses - - (31,045) (31,045) Dividend - - (151,017,975) (151,017,975) Revaluation reserve - 198,805, ,805,825 Net profit for the year ,447, ,447,762 Balance as at 31 December ,750, ,805,825 (34,203,954) 345,352,421 GROUP Share Revaluation Accumulated Total capital Reserve Profits/(Losses) Restated Restated Rf Rf Rf Rf Balance as at 1 January ,797,750 - (4,646,103) 163,151,647 Share issue expenses - - (610,041) (610,041) Net profit for the year - - 7,546,088 7,546,088 Balance as at 31 December ,797,750-2,289, ,087,694 Issuance of share capital 12,952, ,952,800 Share issue expenses - - (31,045) (31,045) Dividend - - (151,017,975) (151,017,975) Revaluation reserve - 198,805, ,805,825 Net profit for the year ,748, ,748,373 Balance as at 31 December ,750, ,805,825 (36,010,703) 343,545,672 The accounting policies and notes on pages 6 through 21 form an integral part of the financial statements. 30 th April 2009 Male'

34 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC CASH FLOW STATEMENT Year ended 31 December 2008 COMPANY GROUP As at As at As at As at Restated Restated Rf Rf Rf Rf Cash flows from operating activities Net profit for the year 114,447,762 7,653, ,651,570 7,543,697 Adjustment for, Depreciation 27,254,947 1,646,381 27,316,847 1,646,381 Amortisation of intangible assets 68,022 44,181 87,108 44,181 Amortisation of lease rent - 307, ,975 Interest income (23,797,121) (4,878,771) (23,736,073) (5,253,486) Finance cost 21,666,376 2,465,397 21,666,376 2,465,397 Reclassification of investment property (669,168,658) - (669,168,658) - Transfer of property, plant and equipment 839,583, ,583,668 - Loss on disposal of property, plant and - -equipment - 20,798 49,768 20, ,054,996 7,259, ,450,606 6,774,943 Working capital changes; Decrease/(Increase) in inventories 10,461,346 (10,461,346) 10,461,346 (10,461,346) Increase in trade and other receivables (143,260,655) (160,141,278) (137,841,875) (160,141,278) Increase in trade and other payables 261,713, ,863, ,092, ,377,963 Cash generated from operations 438,969, ,520, ,162, ,550,282 Finance cost paid (13,806,385) (214,352) (13,806,385) (214,352) Net cash from operating activities 425,162, ,305, ,355, ,335,930 Cash flows from investing activities Acquisition of property, plant and equipment (290,288,214) (415,348,203) (291,502,621) (415,348,203) Acquisition of intangible assets (78,099) (80,000) (71,665) (80,000) Share issue expenses (31,045) (610,041) (31,045) (610,041) Payment of dividend (151,017,975) - (151,017,975) - Interest received 23,797,121 4,878,771 23,736,073 5,253,486 Net cash used in investing activities (417,618,212) (411,159,473) (418,887,233) (410,784,758) Cash flows from financing activities Proceeds from interest bearing borrowings - 350,932, ,932,947 Proceeds from issuance of share capital - 14,613,700-20,213,700 Repayment of interest bearing borrowings - (154,404,572) - (154,404,572) Net cash from financing activities - 211,142, ,742,075 Net increase in cash and cash equivalents 7,544, ,288,449 10,468, ,293,247 Cash and cash equivalents at the- -beginning of the year 288,045, ,756, ,050, ,756,848 Cash and cash equivalents at the- -end of the year (Note 22) 295,590, ,045, ,518, ,050,095 The accounting policies and notes on pages 6 through 21 form an integral part of the financial statements. 30 th April 2009 Male'

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44 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December REVENUE COMPANY GROUP Year ended Year ended Year ended Year ended Rf Rf Rf Rf Sub lease income 281,152,337 19,158, ,152,337 19,158,605 4 OTHER INCOME Herathera revenue 46,628,375-46,628,375 - Herathera pre-opening revenue - 528, ,587 Other operating income - 3,272,615 61,048 3,647,330 MNSL claim received - 1,782,063-1,782,063 Sale of scrap - 17,435-17,435 Bid document application fee 59,565 82,275 59,565 82,275 Bid cancellation income 2,570,000-2,570,000 - Exchange gain Miscellaneous income 68,328 7,068 68,328 7,068 49,326,268 5,690,700 49,387,316 6,065,415 5 FINANCE REVENUE Interest income 23,797,121 4,878,771 23,797,121 4,878,771 6 PROFIT FROM OPERATING ACTIVITIES Stated after charging, Audit fees 322,150 57, ,255 77,100 Provision for impairment of receivable -Herathera 10,638,746-10,638,746 - Professional fees 584, , , ,864 Depreciation of property, plant and equipment 27,254,947 1,646,381 27,316,847 1,646,381 Amortisation of intangible assets 68,022 44,181 87,108 44,181 Loss of construction materials - 117,094 49, ,094 Directors' remuneration 1,047, ,896 1,113, ,896 Advertising expenses 13,416, ,004 13,482, ,551 Compensation to tour operators 37,368,448-37,368,448 - Compensation for repairs 446, ,640 - Staff costs (Note 6.1) 23,172,527 1,824,172 23,614,486 1,844, Staff costs Salaries and wages 15,947,451 1,460,948 16,370,710 1,481,749 Staff food and accommodation 5,539, ,657 5,539, ,657 Staff welfare 2,985-7,685 - Staff training 53,094 45,094 57,094 45,094 Ramazan allowances 1,040,000-1,050,000 - Staff medical 126,367 4, ,367 4,646 Work permit and visa 207,335 3, ,335 3,000 Recruitment expenses 255,982 75, ,982 75,826 23,172,527 1,824,172 23,614,486 1,844,972

45 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC DETAILED STATEMENT OF EXPENSES Year ended 31 December COST OF OPERATING SUPPLIES COMPANY GROUP Year ended Year ended Year ended Year ended Restated Restated Rf Rf Rf Rf Operating lease rent 47,696,523 3,737,640 47,696,523 3,737,640 Operating equipment and supplies 10,715, ,817 10,715, ,817 Depreciation of property, plant and equipment 27,254,947 1,646,381 27,316,847 1,646,381 85,666,568 5,780,838 85,728,468 5,780,838 8 ADMINISTRATIVE EXPENSES Directors' remuneration 894, , , ,500 Provision for impairment of receivable -Herathera 10,638,746-10,638,746 - Staff costs 23,172,527 1,824,172 23,614,486 1,844,972 Bank charges 296,802 67, ,802 67,398 Electricity charges 11,580,824 91,570 11,608,219 91,570 Secretary fees 80,500 84,000 80,500 84,000 Insurance 687,257 36, ,257 36,684 Board meeting expenses 10, ,449 10, ,449 Company formation expenses , ,497 Telephone and communication 882,124 91, ,302 91,359 Office rent 612, , , ,238 Printing and stationery 523, , , ,382 Auditor's remuneration 322,150 57, ,255 77,100 Professional fees 584, , , ,864 Preoperational expenses - 5,888,910-5,888,910 Water charges 116,059 5, ,973 5,940 Postage 3,088 1,526 31,218 1,708 Repair and maintenance 1,352, ,616 1,391, ,616 Cleaning supplies 2,047,481 68,415 2,047,481 68,415 Amortisation of intangible assets 68,022 44,181 87,108 44,181 Travelling and transport 9,102, ,947 9,139, ,947 Legal fees 212, , , ,752 License and registration fees 64, ,210 82, ,210 Subscription fee 541,652 1, ,652 1,100 Office expenses 1,180,071 14,952 1,193,172 14,952 Other operating expenses - Herathera 8,021,985 2,148,932 8,021,985 2,148,932 Directors' travelling expenses 153, , , ,396 Equipment rent - 1,305-1,305 Loss of construction materials - 117,094 49, ,094 Inauguration expenses 158, ,231 - Annual general meeting expenses 257, ,728 - Survey and designing ,498 Compensation to tour operators 37,368,448-37,368,448 - Herathera channel dragging 7,501,077-7,501,077 - Compensation for repairs 446, ,640 - Sundry expenses 195,252 78, ,023 78, ,078,216 13,634, ,807,528 14,084,308 9 SELLING AND MARKETING EXPENSES Advertising and promotion 12,389, ,004 12,455, ,551 Marketing expenses 1,027,242-1,027,242-13,416, ,004 13,482, , FINANCE COST Interest on short term loan 21,666,376 2,465,397 21,666,376 2,465,397

46 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December EARNINGS PER SHARE Earnings per share is calculated by dividing the net profit for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. The weighted average number of ordinary shares outstanding during the year are adjusted for events that have changed the number of ordinary shares outstanding, without a corresponding change in the resources. The following reflects the income and share data used in the earnings per share computation. COMPANY GROUP Amount used as the numerator: Rf Rf Rf Rf Net profit for the year 114,447,762 7,653, ,651,570 7,543,697 Number of ordinary shares used as- Number Number Number Number -denominator: Weighted average number of ordinary shares in issue applicable to earnings per share 1,807,506 1,671,888 1,807,506 1,671, PROPERTY, PLANT AND EQUIPMENT COMPANY 12.1 At cost Balance Additions / Reclassifications Balance as at Revaluation and disposals as at during the year during the year Rf Rf Rf Rf Building - 735,938, ,938,775 - Machineries 1,757,127 47,173,219 48,930,346 - Office equipment 244, , , ,365 Other equipment 217,456 10,404,918 10,598,888 23,486 Furniture, fittings and equipment 1,129,979 39,763,958 40,503, ,454 Motor vehicles 2,892,550 1,694,258 4,586,808 - Vessels 1,279,860 (90,528) 1,189,332 - Computer equipment 693,583 10,556,879 10,620, ,245 Electrical equipment 117,108 15,048,064 15,165,172 - Communication equipment 114,563 21,577 11, ,254 Total cost 8,446, ,887, ,974,483 1,359, In the course of construction Balance Incurred during Reclassified/ Balance as at the year Transferred as at during the year Rf Rf Rf Rf Civil work in progress 608,823,945 38,224, ,823,945 38,224,830 Total gross carrying value 608,823,945 38,224, ,823,945 38,224, Depreciation Balance Charge Reclassifications Balance as at for the and disposals as at year during the year Rf Rf Rf Rf Building - 7,924,628 7,924,628 - Machineries 724,536 2,906,193 3,630,729 - Office equipment 35,033 58,519 41,802 51,750 Other equipment 37,683 8,820,829 8,852,942 5,570 Furniture, fittings and equipment 145,167 1,770,358 1,794, ,980 Motor vehicles 352, , ,539 - Vessels 147,973 49, ,528 - Computer equipment 142, , , ,113 Electrical equipment 31,920 4,085,713 4,117,633 - Communication equipment 27, , ,979 24,947 Total Depreciation 1,645,228 27,254,947 28,390, ,360 (Continued)

47 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December PROPERTY, PLANT AND EQUIPMENT (Continued) Net book value Rf Rf At cost 850,444 6,801,730 In the course of construction 38,224, ,823,945 39,075, ,625,675 GROUP 12.5 At cost Balance Additions / Reclassifications Balance as at Revaluation and disposals as at during the year during the year Rf Rf Rf Rf Building - 735,938, ,938,775 - Machineries 1,757,127 47,173,219 48,930,346 - Office equipment 244, , , ,458 Other equipment 217,456 10,404,918 10,598,888 23,486 Furniture, fittings and equipment 1,129,979 39,955,896 40,555, ,068 Motor vehicles 2,892,550 1,694,258 4,586,808 - Vessels 1,279,860 (90,528) 1,189,332 - Computer equipment 693,583 10,705,611 10,620, ,977 Electrical equipment 117,108 15,048,064 15,165,172 - Communication equipment 114,563 41,342 19, ,554 Total cost 8,446, ,345, ,034,272 1,758, In the course of construction Balance Incurred during Reclassified/ Balance as at the year Transferred as at during the year Rf Rf Rf Rf Civil work in progress 608,823,945 38,778, ,823,945 38,778,570 Total gross carrying value 617,270, ,124,427 1,476,858,217 40,537, Depreciation Balance Charge Reclassifications Balance as at for the and disposals as at year during the year Rf Rf Rf Rf Building - 7,924,628 7,924,628 - Machineries 724,536 2,906,193 3,630,729 - Office equipment 35,033 68,810 41,802 62,041 Other equipment 37,683 8,820,829 8,852,942 5,570 Furniture, fittings and equipment 145,167 1,791,130 1,797, ,597 Motor vehicles 352, , ,539 - Vessels 147,973 49, ,528 - Computer equipment 142, , , ,432 Electrical equipment 31,920 4,085,713 4,117,633 - Communication equipment 27, , ,410 27,034 Total depreciation 1,645,228 27,316,847 28,394, , Net book value Rf Rf At cost 1,190,869 6,801,730 In the course of construction 38,778, ,823,945 39,969, ,625, As per understanding reached certain machineries and equipment owned by Mr.Hussain Afeef, the Chairman of the Board of Directors, have been used at "Herathera" construction site free of charge. Only costs incurred on operating and maintaining the same are borne by the Company as part of cost of work-in-progress.

48 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December INTANGIBLE ASSETS 13.1 Gross carrying value - At cost Balance Additions Balance as at during the as at year Company Rf Rf Rf Computer software 131,272 78, ,371 Total - Company 131,272 78, ,371 Subsidiary Computer software - 202, ,139 Total - Group 131, , , Accumulated amortisation and impairment Balance Charge for Balance as at the year as at Company Rf Rf Rf Computer software 44,181 68, ,203 Total - Company 44,181 68, ,203 Subsidiary Computer software - 19,086 19,086 Total - Group 44,181 87, , Net carrying value Company 87,091 97,168 Group 87, , INVESTMENT PROPERTY COMPANY GROUP Rf Rf Rf Rf Value as at 31/12/ ,168, ,168,658 - Fair value gain transfer to reserve 198,805, ,805,825 - Fair value as at 31/12/ ,974, ,974,483 - Investment properties are stated at fair value, which has been determined based on valuations performed by Maldives Valuers Private Limited. An accredited independent valuer, as at 22nd May The Maldives Valuers Private Limited is an industry specialist in valuing theses types of investment properties. The fair value represents the amount at which the assets could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction at the date of valuation, in accordance with International Valuation Committee standards. 15 INVESTMENT IN SUBSIDIARY COMPANY GROUP % Holding Rf Rf Rf Rf Fathuru Maldives PLC 94.80% 102,000, ,400, Maldives Tourism Development Corporation Plc to be expected to settle this amount against future sublease rent receivables from Fathuru Maldives Plc.

49 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December INVENTORIES COMPANY GROUP Rf Rf Rf Rf Inventories - 10,461,346-10,461, TRADE AND OTHER RECEIVABLES Trade receivables 207,732,068 4,069, ,732,068 4,069,605 Less: Provision for impairment (10,638,746) - (10,638,746) - 197,093,322 4,069, ,093,322 4,069,605 Advances paid to suppliers 102,559,810 47,440, ,559,810 47,440,677 Deposits and prepayments 292,871 99,525, ,313 99,525,465 Other receivables - Related parties 134, Others 11,930,997 17,715,197 11,930,997 17,715, ,011, ,750, ,120, ,750, SHARE CAPITAL 18.1 Authorised share capital The authorised share capital comprises 100,000,000 Ordinary shares at a par value of Rf 100/- each Issued and fully paid share capital 2,645,210 and 2,499,073 Ordinary shares of Rf 100/- each as at 01 st January As at As at Rf Rf 264,521, ,907,300 Shares issued during the year - 14,613,700 ( ,137 Ordinary shares of Rf 100/- each) Uncalled share capital (83,770,450) (96,723,250) (In ,705 and In ,233 Ordinary shares of Rf 100/- each) Issued and fully paid share capital - As at 31 st December 180,750, ,797, Voting power The holders of ordinary shares confer their rights to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. 19 INTEREST BEARING BORROWINGS Amount Amount Total Total repayable repayable As at As at within 1 Year after 1 Year Rf Rf Rf Rf 19.1 Bank of Maldives - Term loan 70,675, ,575, ,250, ,250,000 Total borrowings of the company 70,675, ,575, ,250, ,250,000 Total borrowings of the group 70,675, ,575, ,250, ,250,000 Balance as at Loans Loans Balance as at obtained repayments Rf Rf Rf Rf 19.2 Term Loan - BML (19.3) 321,250, ,250,000 Total borrowings of the company 321,250, ,250,000 Total borrowings of the group 321,250, ,250,000 (Continued)

50 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December INTEREST BEARING BORROWINGS (Continued) 19.3 Bank of Maldives PLC This term loan facility agreement has been entered into with Bank of Maldives Plc by Maldives Tourism Development Corporation amounting to US$ 25,000,000/-. The interest agreed for the facility is 3.5% per annum plus 3 months LIBOR with a minimum of 8.5% p.a. By 31 December 2007, the Company has withdrawn full amount of this loan. The repayment period of this loan is 10 year including 2 years grace, starting from December 2008 and the loan has to be repaid in 32 equal quarterly installments as per the following manner: Months 1 to 24 (2 years) - Quarterly payments equivalent to the total accrued interest for the preceding period. Months 25 to 120 (8 years) - Quarterly payments of US$ 1,100,000/- (Rf 14,080,000) Properties mortgaged (among other properties) in respect of the above loan are as follows: Leasehold rights of the Borrower over the "Land" at Herathera, Addu Atoll and all immovable assets form time to time situated on or forming part of the Resort, and, all the movable assets of the Resort amounting to USD 67,546,652/-. (Rf.864,597,146/-) Affirmative covenant: Until the project is completed and achieves debt service coverage of 1.5:1 for two consecutive six month period, there shall be no change of the Chairman and Managing Director of the Borrower at its next AGM and following AGM. In case there is a change of the Borrower's Chairman or Managing Director before project completion, there shall be no further disbursement of loan and the bank will have the right to request for a letter of undertaking from the Government shareholder to ensure the on going operations of the resort so that the Borrower will be able to meet its obligations under the sanction letter. 20 TRADE AND OTHER PAYABLES COMPANY GROUP Year ended Year ended Year ended Year ended Rf Rf Rf Rf Trade payables-related parties - 1,529,681-1,529,681 - Other 10,897,378 46,331,975 10,897,378 46,331,975 Other payables 1,304, ,122 1,686, ,065 Accruals 49,594, ,209,357 49,633, ,209,586 Staff payables 7,552 1,325,541 7,552 1,325,541 Lease rent payable 52,787,272-52,787,272 - Advance from sublease 733,555, ,555, ,146, ,997, ,566, ,039, AMOUNT DUE TO RELATED PARTIES Relationship Fathuru Maldives Plc- Subsidiary 102,000, ,927, CASH AND CASH EQUIVALENTS IN CASH FLOW STATEMENT Cash in hand 65, ,931 70, ,160 Cash at bank 25,620, ,991,944 28,544, ,996,514 Fixed deposit 407,967, ,724, ,967, ,724, ,654, ,894, ,582, ,899,388 Bank overdraft (138,064,019) (57,849,293) (138,064,019) (57,849,293) 295,590, ,045, ,518, ,050, CAPITAL COMMITMENTS 23.1 Capital expenditure commitments The Group has purchase commitments for acquisition of property, plant and equipment and to construct the "Herathera" resort as at 31 December, as follows; COMPANY GROUP Rf Rf Contracted but not provided for - 2,005,552 (Continued)

51 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December CAPITAL COMMITMENTS (Continued) 23.2 Currently 102,000 ordinary shares at Rf1,000/- each have been allotted to MTDC to represent 51% of the shares to be issued. Therefore, MTDC's investment will subsequently reduce to reflect 102,000 shares (51% of 20000) at Rf 1,000/- each, Rf 102,000,000/-. 24 DIVIDEND PER SHARE Dividends payable are not accounted for until they have been ratified at the annual general meeting. A dividend has been declared in respect of 2007 of Rf 90/- per share amounting to a total of Rf 151,017,975. which will be accounted for in the shareholders' equity as an appropriation of retained earning in the year ending 31 December Due to the Declaration of dividends for the year ended the company's accumulated retained earnings will show a negative balance. However the directors of the company have made an assessment that the future profits the company will yield would be sufficient to cover up the deficit in accumulated retained earnings. 25 CONTINGENT ASSETS AND LIABILITIES There were no material contingent assets and liabilities as at the balance sheet date. 26 RELATED PARTY TRANSACTIONS For information regarding the outstanding related party balances at the year-end, refer to Note 15,17 and 21. Name of Related Party Relationship Nature of the Amounts for Transaction the Year 2008 Rf KASA Holdings Pvt Ltd. Common Directors 542,790 (1,060,607) Damas Company Pvt Ltd. Common Directors Purchase of goods/services 58,842 Amounts Settled (87,661) Meeru Island Resort (MIR) Owner of MIR is a Purchase of goods/services 1,180,769 Director of the Amounts Settled (1,608,075) Company Trans Maldivian Airways Common Directors Purchase of services 415,850 Amounts settled (673,894) Maldives Association of Tourism Common Directors Purchase of services 498,000 Industry (MATI) Amounts settled (579,000) STELCO Common Directors Purchase of services 225,714 Amounts settled (203,295) Fathuru Maldives Plc Subsidiary Company Reimbursable expenses 134,599 Non cash share investment 102,000,000

52 MALDIVES TOURISM DEVELOPMENT CORPORATION PLC NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December FINANCIAL INSTRUMENTS 27.1 Fair value of financial assets and financial liabilities Financial assets and liabilities (Short - term) The fair value of short-term financial assets and liabilities approximate their carrying value because of their immediate or short-term maturity. Long - term financial assets and liabilities Directors believe that the fair value of long-term financial assets and liabilities would not differ significantly from their carrying amount recorded in the balance sheet The following table sets out the carrying amount, by maturity of the Group s financial instruments that are exposed to interest rate risk: 2008 Effective Total Within 1 to 2 2 to 3 3 to 4 4 to 5 After 5 Interest 1 Year Years Years Years Years Years Rate Rf Rf Rf Rf Rf Rf Rf Term Loan - BML % or 3.5%+LIBOR 321,250,000 28,270,000 56,540,000 56,540,000 56,540,000 56,540,000 66,820,000 Bank Overdraft 8.50% 138,064, ,064, ,314, ,334,019 56,540,000 56,540,000 56,540,000 56,540,000 66,820, EVENTS OCCURRING AFTER THE BALANCE SHEET DATE During December 2008 Yacht Tours Maldives Pvt Ltd filed legal action against MTDC claming an amount of USD 64,458,104 with respect to the breach of sublease agreement dated 26th May 2008, entered between the two parties over Herathera Island Resort. However, the court has released their verdict on 28th April 2009 highlighting following points. 1. MTDC has not completed or fulfilled its obligation under clause 14 of the Sub Lease Agreement; 2. It has not been established that Yacht Tours Maldives Pvt Ltd suffered damages of USD 67,458,104 (revised to USD 46,261,242) as a result of breach of clause 14 by MTDC, and therefore the court has denied awarding the damages claimed by Yacht Tours Maldives Pvt Ltd. 3. Yacht Tours Maldives Pvt Ltd is benefiting by operating the property without paying the sub lease rent from 30th November 2008 including liquidated damages for non-payment of rent pursuant to clause 9 and 12 of the sub lease agreement, and as the court believes that Yacht Tours Maldives Pvt Ltd does not have any legal right anymore to receive the benefit of operating the resort without paying the sublease rent and liquidated damages, there is no legal reason to order MTDC that it cannot demand payment of the sub lease rent and liquidate damages there on from Yacht Tours Maldives Pvt Ltd.

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