EDEN HOTEL LANKA PLC INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST MARCH 2017
STATEMENT OF FINANCIAL POSITION As at 31.03.2017 31.03.2016 31.03.2017 31.03.2016 Rs.'000' Rs.'000' Rs.'000' Rs.'000' (Unaudited) (Audited) (Unaudited) (Audited) Assets Non Current Assets Property, plant and equipment 4,844,958 4,905,422 2,962,461 2,995,510 Goodwill on acquisition - 67,685 - - Investments in subsidiaries - - 1,357,500 1,507,500 Investments in equity accounted investee 737,969 212,583 640,718 204,975 Loan due from related parties 175,000 175,000 282,118 282,118 Other financial assets 76,337 917 76,337 917 Total Non Current Assets 5,834,263 5,361,608 5,319,134 4,991,020 Current Assets Inventories 25,389 27,755 17,989 19,858 Trade and other current receivables 344,425 345,162 318,731 266,668 Current tax receivables 12,068 16,151 7,824 3,119 Cash and cash equivalents 153,435 161,634 77,959 158,414 Total Current Assets 535,317 550,702 422,503 448,060 Total Assets 6,369,580 5,912,310 5,741,637 5,439,080 Liabilities and Equity Equity Stated capital 1,584,000 528,000 1,584,000 528,000 Reserves 2,032,099 2,007,995 2,008,621 2,008,567 Retained earnings (392,816) (7,609) (147,493) 122,725 Equity Attributable to Shareholders 3,223,283 2,528,386 3,445,128 2,659,292 Non Controlling Interest - - - - Total Equity 3,223,283 2,528,386 3,445,128 2,659,292 Liabilities Non Current Liabilities Interest bearing borrowings 600,000 901,754 600,000 900,000 Retirement benefit obligations 18,982 19,191 14,388 14,912 Deferred tax liabilities 187,288 192,196 157,581 174,580 Total Non Current Liabilities 806,270 1,113,141 771,969 1,089,491 Current Liabilities Trade and other payables 1,888,055 1,283,620 1,308,950 907,065 Interest bearing borrowings 417,547 962,083 183,628 761,748 Current tax liabilities 15,516 4,917 13,054 4,058 Bank overdrafts 18,909 20,163 18,909 17,426 Total Current Liabilities 2,340,027 2,270,783 1,524,540 1,690,297 Total Liabilities & Equity 6,369,580 5,912,310 5,741,637 5,439,080 Net Assets per Share (Rs) 30.52 47.89 32.62 50.37 These Financial Statements have been prepared and presented in compliance with the requirements of the Companies Act No 07 of 2007. SGD (0) 0 Mrs. S.S. Kotakadeniya Chief Financial Officer- LOLC Group The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Approved and signed on behalf of the Board, SGD Mr. W.D.K. Jayawardena (Chairman) 23rd May 2017 Colombo SGD Mrs. K.U. Amarasinghe (Director)
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the period ended 31 March 2017 2016 Variance 2017 2016 Variance 2017 2016 Variance 2017 2016 Variance Rs.'000' Rs.'000' % Rs.'000' Rs.'000' % Rs.'000' Rs.'000' % Rs.'000' Rs.'000' % (Unaudited) (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) (Unaudited) (Audited) Revenue 457,325 447,970 2.09 1,083,018 886,531 22.16 334,813 359,377 (6.84) 845,726 770,295 9.79 Less: cost of sales (72,339) (73,156) (1.12) (235,425) (179,464) 31.18 (46,175) (45,815) 0.79 (171,931) (143,428) 19.87 Gross profit 384,986 374,814 847,593 707,067 288,638 313,562 673,796 626,867 Other income/(expenses) 7,875 11,015 (28.51) 16,822 16,805 0.10 6,675 10,618 (37.14) 10,825 14,563 (25.67) Profit before operating expenses 392,861 385,829 864,415 723,872 295,313 324,180 684,621 641,430 Operating expenses Personnel costs (69,507) (87,513) (20.58) (239,843) (208,804) 14.87 (48,790) (57,486) (15.13) (170,618) (148,193) 15.13 Depreciation and amortization (28,158) (28,776) (2.15) (115,598) (114,583) 0.89 (13,493) (18,202) (25.87) (77,533) (81,516) (4.89) Other operating expenses (293,965) (176,317) 66.73 (560,470) (409,198) 36.97 (316,050) (143,814) 119.76 (515,213) (327,416) 57.36 Share of profit/ (loss) of equity accounted investees (Net of income tax) Three Months Ended (19,595) 362 (>100) (22,997) (2,913) >100 Results from operating activities (18,365) 93,585 (74,494) (11,625) (83,020) 104,679 (78,743) 84,305 Net finance income/(cost) (83,511) (67,651) 23.44 (293,178) (218,243) 34.34 (54,031) (49,058) 10.14 (186,001) (172,118) 8.07 Profit/(loss) before income tax expense (101,875) 25,935 (367,672) (229,868) (137,051) 55,621 (264,744) (87,812) Income tax expense (19,273) 41,019 >100 (19,273) 41,019 >100 (7,053) 12,084 >100 (7,053) 12,084 >100 Profit/(loss) after tax (121,148) 66,954 (386,944) (188,848) (144,104) 67,705 (271,797) (75,728) Year Ended Three months ended Year Ended Statement of Other Comprehensive Income Profit/(loss) after tax (121,148) 66,954 (386,944) (188,848) (144,104) 67,705 (271,797) (75,728) Net change in fair value of AFS (22) (193) (88.58) 54 66 (18.33) (22) (193) (88.58) 54 66 (18.33) Defined benefit plan actuarial gains (losses) for the year 1,975 452 >100 1,975 452 >100 1,795 171 >100 1,795 171 >100 Revaluation of property, plant and equipment - 494,076 - - 494,076 - - 416,220 - - 416,220 - Reversal of previously recognized revaluation gain on building dismantled during the year - (81,041) - - (81,041) - - - - - - - Exchange gain/(loss) from translation of foreign operations 12,575 947 >100 24,051 11,886 >100 - - - - - - Tax on Other Comprehensive Income (237) (26,934) (>100) (237) (26,934) (>100) (215) (17,627) (>100) (215) (17,627) (>100) Total Comprehensive Income/(expenses) (106,857) 454,260 (361,102) 209,656 (142,546) 466,276 (270,164) 323,102 Profit/(loss) attributable to: Shareholders of the company (121,148) 66,954 (>100) (386,944) (188,848) >100 (144,104) 67,705 (>100) (271,797) (75,728) >100 Non Controlling Interest - - - - (121,148) 66,954 (386,944) (188,848) (144,104) 67,705 (271,797) (75,728) Total Comprehensive income/(expenses) attributable to: Shareholders of the company (106,857) 454,260 (>100) (361,102) 209,656 (>100) (142,546) 466,276 (>100) (270,164) 323,102 (>100) Non Controlling Interest - - - - (106,857) 454,260 (361,102) 209,656 (142,546) 466,276 (270,164) 323,102 Earnings/(loss) per share (Rs) (1.15) 1.27 (3.70) (3.58) (1.36) 1.28 (2.60) (1.43) 1) 2) 3) 4) 5) 6) 7) 8) Events occurring after the reporting date 8.1) Subsequent to the reporting date, the Company settled the loan obtained from Seylan bank amounting to Rs.783. Subsequent to the settlement, the Company obtained a new loan from Seylan Bank amounting to USD 7.5Mn. The proceeds of the term loan, amounting to USD 7.2Mn was invested in Bodufaru Beach Resort (Pvt) Limited. 8.2) 8.3) There are no material events occurring after the reporting date, that require adjustment to or disclosure in these Interim Financial Statements except for the disclosures above. 9) The Statement of Financial Position, the Statement of Comprehensive Income, Cash Flow Statement and Statement of Changes in Equity for the Group and the Company as at and for the year then ended 31stMarch 2017 are drawn up from unaudited accounts of the company and Its' subsidiary companies and provide information as required by Colombo Stock Exchange and LKAS 34, "Interim Financial Reporting". Further, provisions of the Companies Act No 7 of 2007 has been considered in preparing these interim financial statements. Accounting policies, significant judgment and estimates stated in the financial statements for the year ended 2015/16, are followed in preparation of these Interim Financial Statements. Comparative figures have been reclassified where necessary to conform with current period's presentation. Revenue includes accommodation sales for rooms occupied on daily basis, together with outlet sales and other income from hotel operations. Other income represents other sources of income not shown under revenue. All expenses related to management expenditure are fully provided for in these financial statements. In April 2016, the Company issued 52.8Mn ordinary shares at Rs 20.00 per share by way of a rights issue Subsequent to the reporting date, Board of Directors of Eden Hotel Lanka PLC, approved the acquisition of 51% stake in Sun and Fun Resorts Limited for a purchase consideration of Rs 255Mn and 100% stake in Green Paradise (Pvt) Limited for a purchase consideration of Rs 1,250Mn from Browns Investments PLC, which is a fellow subsidiary. There are no contingent liabilities as at the reporting date that require disclosure in these Interim Financial Statements.
STATEMENT OF CHANGES IN EQUITY Capital Retained Non Controlling Stated capital Total equity reserve earnings interest Rs.'000' Rs.'000' Rs.'000' Rs.'000' Rs.'000' Balance as at 1st April 2015 528,000 1,609,888 180,841-2,318,729 Comprehensive income for the period Net profit/(loss) for the period (188,848) (188,848) Net change in fair value of available-for-sale financial assets (net of tax) 66 66 Revaluation of property, plant and equipment 494,076 494,076 Deferred tax on revaluation (26,880) (26,880) Defined benefit plan actuarial gains (losses) (net of tax) 398 398 Reversal of previously recognized revaluation gain on building dismantled during the year (81,041) (81,041) Exchange gain/(loss) from translation of foreign operations 11,886 11,886 Total comprehensive income for the year 528,000 2,007,995 (7,609) - 2,528,385 Transfer from Reserves Dividend paid Balance as at 31 st March 2016 528,000 2,007,995 (7,609) - 2,528,385 Balance as at 1st April 2016 528,000 2,007,995 (7,609) - 2,528,385 Comprehensive income for the period Net profit/(loss) for the period (386,944) (386,944) Net change in fair value of available-for-sale financial assets (net of tax) 54 54 Defined benefit plan actuarial gains (losses) (net of tax) 1,738 1,738 Exchange gain/(loss) from translation of foreign operations 24,051 24,051 Total comprehensive income for the year - 24,104 (385,207) - (361,102) Issue of new shares 1,056,000 1,056,000 Dividend paid Balance as at 31 st March 2017 1,584,000 2,032,099 (392,816) - 3,223,283 Capital Retained Stated capital Total equity reserve earnings Rs.'000' Rs.'000' Rs.'000' Rs.'000' 528,000 1,609,888 198,302 2,336,190 Balance as at 1st April 2015 Comprehensive income for the period (75,728) (75,728) Net profit/(loss) for the period Net change in fair value of available-for-sale financial assets (net of tax) 66 66 Revaluation of property, plant and equipment 416,220 416,220 Deferred tax on revaluation (17,606) (17,606) Defined benefit plan actuarial gains (losses) (net of tax) 151 151 Total comprehensive income for the year 528,000 2,008,567 122,725 2,659,292 Transfer from reserves Dividends paid during the period Balance as at 31 st March 2016 528,000 2,008,567 122,725 2,659,292 Balance as at 1st April 2016 528,000 2,008,567 122,725 2,659,292 Comprehensive income for the period Net profit/(loss) for the period (271,797) (271,797) Net change in fair value of available-for-sale financial assets (net of tax) 54 54 Defined benefit plan actuarial gains (losses) (net of tax) 1,580 1,580-53.66 (270,217.47) (270,163.82) Total comprehensive income for the year Issue of new shares 1,056,000 1,056,000 - Dividends paid during the period Balance as at 31 st March 2017 1,584,000 2,008,621 (147,493) 3,445,128
STATEMENT OF CASH FLOWS For the year ended 31March 2017 2016 2017 2016 Rs.'000' Rs.'000' Rs.'000' Rs.'000' CASH FLOW FROM OPERATING ACTIVITIES Profit before income tax expense (367,672) (229,868) (264,744) (87,812) Adjustment for: (Profit)/Loss on sale of property, plant and equipment 15 497-497 Depreciation and amortization 115,598 114,583 77,533 81,516 Provision for gratuity 4,125 3,802 3,184 2,914 Interest cost 323,755 248,847 233,878 220,164 Interest income (29,504) (30,604) (47,877) (48,047) Share of profit/ (loss) of equity accounted investees (Net of income tax) 22,997 2,913 - Dividend Income (53) (41) (53) (41) Rent Income (3,231) (1,909) (1,949) (1,369) Impairment of trade receivable 4,092 3,768 124 1,064 Impairment of equity accounted investee - 2,516-2,477 Impairment of investments 67,685-150,000 - Operating profit before working capital changes 137,807 114,505 150,096 171,364 Working capital changes (Increase)/decrease in accounts receivables & others 6,438 (121,519) (4,740) (48,667) (Increase)/decrease in inventories 2,366 (4,422) 1,869 (721) Increase/(decrease) in accounts payables 155,254 462,552 127,155 294,719 Cash generated from operations 301,865 451,116 274,381 416,696 Interest paid (146,828) (224,131) (146,381) (221,843) Tax paid (33,482) (16,500) (28,973) (3,831) Gratuity paid (2,359) (1,984) (1,912) (1,264) Net cash from /(used in) operating activities 119,196 208,501 97,114 189,758 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment (55,135) (278,591) (44,485) (33,657) Acquisition of subsidiaries/associates (599,699) (69,698) (511,109) (69,698) Interest received 1,073 1,291 430 792 Dividend received 53 41 53 41 Rent received 3,231 1,909 1,949 1,369 Net cash flow from investing activities (650,476) (345,048) (553,161) (101,154) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from share issue 1,056,000-1,056,000 - Proceeds/(repayments) of long term loans (875,972) (490,400) (878,120) (490,400) Funds received from/(to) related parties 346,229 686,750 196,229 500,400 Repayment of finance lease obligations (1,922) (2,984) - Net cash generated from financing activities 524,335 193,366 374,109 10,000 Net increase/(decrease) in cash & cash equivalents during the period (6,945) 56,819 (81,938) 98,604 Cash & cash equivalents at the beginning of the period 141,471 84,652 140,988 42,384 Cash & cash equivalents at the end of the period 134,526 141,471 59,050 140,988 Analysis of cash & cash equivalents at the end of the period Cash at bank and in hand 153,435 161,634 77,959 158,414 Unfavourable Bank Balances used for cash management purposes (18,909) (20,163) (18,909) (17,426) 134,526 141,471 59,050 140,988
SHAREHOLDERS INFORMATION A. Names and the Number of Shares held by the 20 Largest Shareholders and the Percentage (%) as at 31.03.2017 20 MAJOR SHAREHOLDERS OF THE AS AT 31st MARCH 2017 NAME NO OF SHARES (%) 1 Palm Garden Hotels PLC 48,796,944 46.20 2 Browns Hotels & Resorts Limited 44,996,229 42.61 3 Employee Trust Fund Board 1,581,943 1.50 4 Mercantile Investments and Finance PLC 1,049,600 0.99 5 Bank of Ceylon No.01 Account 775,550 0.73 6 Mr. W C A Wimaladharma 296,052 0.28 7 Dee Investments (Pvt) Limited 290,427 0.28 8 Mrs. N H Abdul Husein 280,280 0.27 9 Mrs. B Wimaladharma 275,000 0.26 10 Mr. M I Raji 274,093 0.26 11 Union Investments (Private) Ltd 250,000 0.24 12 Merchant Bank of Sri Lanka A/C No 1 127,743 0.12 13 Union Bank of Colombo PLC/ Mr. Sithampalam Abishek 115,000 0.11 14 Malship Ceylon Ltd 111,637 0.11 15 Mr. H Abdul Husein 102,700 0.10 16 N. Vaitilingam & Company 102,324 0.10 17 Mr. M I Abdul Hameed 101,200 0.10 18 C M Holdings PLC 100,000 0.10 19 Mr. K C Vignarajah 97,000 0.09 20 Mr. V R A S Sovis 85,900 0.08 T O T A L 99,809,622 94.51 OTHERS 5,790,378 5.49 105,600,000 100.00 B. The Public Holding Percentage as at 31.03.2017 : 11.18% comprising of 5347 shareholders C. Directors Shareholding as at 31.03.2017: No of shares (%) Mr. W D K Jayawardena Nil Nil Ms. K U Amarasinghe Nil Nil Mr. D S K Amarasekera Nil Nil Mr. M T A Furkhan 1 - Mr. Stefan Furkhan 1 - Mr. J M Swaminathan Nil Nil D. Number of Shares representing the Company s Stated Capital 105,600,000 Ordinary Shares. E. Market price of shares recorded during the quarter ended 31.03.2017 31.03.2016 Rs Rs Highest Market Price 14.40 19.60 Lowest Market Price 10.00 11.60 Last Traded Price 10.90 16.00