TAL LANKA HOTELS PLC

Statement of Comprehensive Income

(All amounts in Sri Lanka Rupees Thousands unless otherwise stated)

2017 2016

%

Change 2017 2016

%

Change

Revenue 2,830,443 2,664,068 6.2 698,577 695,479 0.4

Direct Costs (2,050,959) (1,957,877) 4.8 (503,957) (504,456) (0.1)

Gross profit 779,484 706,191 10.4 194,620 191,023 1.9

Other Income 24,823 18,451 34.5 6,202 4,512 37.5

Marketing expenses (123,936) (123,732) 0.2 (28,385) (35,705) (20.5)

Administrative expenses (349,446) (327,947) 6.6 (99,597) (95,124) 4.7

Operating profit /(loss) 330,924 272,962 21.2 72,841 64,707 12.6

Finance expenses (222,795) (383,217) (41.9) (69,619) (86,394) (19.4)

Profit /(Loss) before tax 108,130 (110,256) 198.1 3,221 (21,687) (114.9)

Income tax expense (4,414) (6,659) (33.7) (4,414) (6,659) (33.7)

Profit /(Loss) for the year 103,716 (116,914) 188.7 (1,193) (28,345) (95.8)

Other Comprehensive income/(expense),net of income tax

Items that will not be reclassified subsequently to profit or loss:

Gain on revaluation of building, net of tax 796,938 - 796,938 -

Actuarial loss on employee benefit obligation, net of tax (10,118) (2,970) (10,118) (2,970)

786,820 (2,970) 786,820 (2,970)

Items that may reclassified subsequently to profit or loss:

Net change in fair value on available for sale of financial assets 1,169 3,013 1,169 3,013

1,169 3,013 1,169 3,013

Other comprehensive income/(expense)for the year, net of tax 787,989 43 787,989 43

Total comprehensive income/(expense) for the year 891,705 (116,871) 786,796 (28,302)

Earning /(loss) per share- basic (Rs.) 0.74 (0.84) (0.01) (0.20)

Particulars

For the 12 Months Ended 31st March 4th Quarter Ended 31st March

TAL LANKA HOTELS PLC

Statement of Financial Position(All amounts in Sri Lanka Rupees Thousands unless otherwise stated)

As at 31st

March2017

As at 31st

March 2016

ASSETS

Non-current assets

Property, plant and equipment 3,906,458 3,267,542

Intangible assets 14,360 5,953

Leasehold property-right to use of land 831,030 844,221

Investments 47,284 43,999

Total Non-current assets 4,799,131 4,161,716

Current assets

Inventories 73,082 66,279

Trade and other receivables 210,836 173,977

Amounts receivable from related parties. 1,567 1,167

Deposits, prepayments and advances 77,864 87,295

Current tax asset 22,618 11,716

Cash and cash equivalents 161,013 151,180

Total current assets 546,980 491,613

Total assets 5,346,111 4,653,329

EQUITY AND LIABILITIES

Capital and reserves

Stated capital (139,637,494 Shares) 1,396,375 1,396,375

Revaluation reserve 2,126,820 1,421,324

Available for sale reserve 5,468 4,300

Accumulated losses (1,156,413) (1,341,453)

2,372,251 1,480,546

Non-current liabilities

Borrowings 1,721,660 2,054,806

Retirement benefit obligations 118,100 108,846

Deferred tax liability 240,520 126,348

Total Non-current liabilities 2,080,279 2,290,001

Current liabilities

Borrowings 404,009 464,682

Trade and other payables 348,440 318,712

Amounts payable to related parties. 141,132 99,388

Total current liabilities 893,581 882,782

Total liabilities 2,973,860 3,172,783

Total Equity and Liabilities 5,346,111 4,653,329

Net assets per share Rs. 17 11

Soumitra Ray

Area Financial Controller

Signed for and on behalf of the Board.

Vish Govindasamy - Director T.De Zoysa - Director

Date :- 17th May 2017 Date :- 17th May 2017

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Particulars

I certify that these financial statements comply with the requirements of the Companies Act No. 07 of

2007.

TAL LANKA HOTELS PLC

Statement of Changes in Equity(All amounts in Sri Lanka Rupees thousands)

Stated Revaluation Accumulated Total

Capital reserves losses

Balance at 01st April 2015 1,396,375 1,512,794 1,287 (1,313,038) 1,597,418

Profit/ (Loss) for the year - - - (116,914) (116,914)

Total comprehensive expense for the year

Other comprehensive expense - - 3,013 (2,970) 43

Total comprehensive income/(expense) for the period - - 3,013 (2,970) 43

Depreciation transfer - (102,144) - 102,144 -

- 10,674 - (10,674) -

Balance as at 31st March 2016 1,396,375 1,421,324 4,300 (1,341,453) 1,480,546

Balance at 01st April 2016 1,396,375 1,421,324 4,300 (1,341,453) 1,480,546

Profit/ (Loss) for the year - - - 103,716 103,716

Total comprehensive income for the year

Other comprehensive expense - - 1,169 (10,118) (8,949)

Revaluation gain during the year - 905,612 - - 905,612

Deferred tax relating to revaluation of building - (108,673) - - (108,673)

Total comprehensive income/(expense) for the period - 796,938 1,169 93,598 891,705

Depreciation transfer - (102,113) - 102,113 -

- 10,671 - (10,671) -

Balance as at 31st March 2017 1,396,375 2,126,820 5,468 (1,156,413) 2,372,251

Particulars Available-for-

sale reserve

Reversal of deferred tax on additional depreciation during the

year on revaluation

Reversal of deferred tax on additional depreciation during the

year on revaluation

TAL LANKA HOTELS PLC

Cash Flow Statement(All amounts in Sri Lanka Rupees thousands)

2017 2016

Operating activities

Profit/(Loss) before tax 108,130 (110,256)

Adjustments for:

Gain on disposals of property plant and equipment (5,111) (32)

Depreciation on property, plant and equipment 421,992 412,128

Amortisation of intangible asset 2,481 1,838

Amortisation of leasehold property 13,191 13,191

Write off of Property ,Plant & Equipments 1,120 10,687

Interest income (3,352) (2,108)

Interest expense 141,340 142,507

Provision for defined benefit plans 18,839 17,523

Impairment of trade receivables 1,578 6,210

Impairment of Inventories 479 783

Unrealized exchange loss on loans 71,856 244,717

Operating Profit before working capital changes 772,543 737,188

(Increase )/Decrease in inventories (7,283) 4,717

(Increase )/Decrease in trade and other receivables (38,438) 31,516

(Increase )/Decrease in amounts receivable from related companies (400) 971

(Increase )/Decrease in deposits ,prepayments and advances. 9,431 (27,761)

Increase /(Decrease) in trade and other payables. 29,727 5,992

Increase /(Decrease) in amounts payable to group companies 41,745 (64,761)

Cash flow generated from Operations 807,325 687,862

Taxes Paid (10,902) (6,712)

Retirement benefits paid (18,620) (8,117)

Net cash flow generated from operating activities 777,804 673,032

Cash flow from investing activities

Net Proceeds from disposal of property, plant and equipment 5,111 33

Purchase of property, plant and equipment (160,580) (241,765)

Acquisiton of intangible assets (6,722) (2,897)

Investment in fixed deposits (1,081) (25,000)

Interest received 2,317 2,108

Net cash used in investing activities (160,955) (267,521)

Cash Flow from Financing activities

Proceeds from bank loans and borrowings - 213,550

Repayments on bank loans and borrowings (463,675) (440,204)

Payments on lease liability (2,000) (2,000)

Interest paid (141,340) (142,507)

Net cash generated/(used in) financing activities (607,015) (371,161)

Net Increase/(Decrease) in cash and cash equivalents 9,834 34,349

Movement in cash and cash equivalents

At start of period 151,180 116,831

(Decrease)/Increase 9,834 34,349

At end of period 161,013 151,180

For the 12 Months ended

31st MarchParticulars

TAL LANKA HOTELS PLC

Notes to the financial statements

(In the notes all amounts are shown in Sri Lanka Rupees Thousands unless otherwise stated)

1) Turnover

2016/17

Rs.

2015/16

Rs.

Accommodation 1,655,401 1,586,849

Food and Beverage 1,044,670 979,842

Shop rentals 43,491 38,178

Others 86,880 59,199

Total 2,830,443 2,664,068

2) Statistics

2016/17

Rs.

2015/16

Rs.

Highest Market Price per Share 27.00 25.90

Lowest Market Price per Share 20.00 20.00

Closing Price on 31st March 21.00 23.40

.

3) Basis of preparation and summary of significant accounting policies

3.1) Basis of preparation

3.2) Significant accounting policies

- Investment in non-quoted equity investments

- Revised presentation of financial statements

These interim financial statements for the quarter ended 31st March 2017 have been prepared in accordance with the

requirements of LKAS - 34 Interim Financial Reporting and the Statement of Recommended Practices as laid down by

the Institute of Chartered Accountants of Sri Lanka and the Companies Act No.7 of 2007.

The accounting policies adopted in preparation of these interim financial statements are consistent with those followed in

the preparation of the company’s annual financial statements for the year ended 31st March 2016, except for the

adoption of new Sri Lanka Accounting Standards (SLFRSs). The effect of transition to SLFRSs are summarised below.

The interim financial statements do not include all the information and disclosures required in the annual financial

statements, and should be read in conjunction with the company’s annual financial statements as at 31st March 2016.

In accordance with, LKAS 1 - Presentation of Financial Statements , the company elected to present single

statement of comprehensive income and the comparative information have been re-arranged or re-grouped where

ever necessary.

Under the previous Sri Lanka Accounting Standards (SLASs), the company measured the investment in non-quoted

equity investments at cost . On adoption of SLFRSs, the company categorised this investment as available for sale in

accordance with LKAS 39 - Financial Instruments: Recognition and Measurement. This investment was measured at

the fair value using the net assets based valuation model.

TAL LANKA HOTELS PLC

Notes to the financial statements

(In the notes all amounts are shown in Sri Lanka Rupees Thousands unless otherwise stated)

4) Contingencies

5) Events after the Balance Sheet Date

6) Management Fee Payable to TAL Hotels & Resorts Ltd

2016/17

Rs.

2015/16

Rs.

Basic fee Payable 40,320 20,180

Incentive fee Payable 47,882 22,614

88,202 42,794

There have been no material events occurring after the balance sheet date that require adjustment to or

disclosure in the financial statements.

The company has no material contingent liabilities or assets as at the reporting date.

TAL Lanka Hotels PLC has entered in to a Hotel Operating agreement with TAL Hotels & Resorts Ltd. The

details of fees payable to TAL Hotels & Resorts Ltd under the agreement as at 31st March 2017 is as follows .

Notes to the financial statements

7)

Serial Shares

1 81,181,580

2 34,375,640

3 7,437,832

4 2,070,000

5 1,305,884

6 901,658

7 587,000

8 522,333

9 447,400

10 343,029

11 260,270

12 215,000

13 212,390

14 163,000

15 137,165

16 122,000

17 114,432

18 100,000

19 100,000

20 98,500

130,695,113

Others 8,942,381

Total Shares 139,637,494 100.00

6.40

Sub Total 93.60

MR.SITHAMPALAM ABISHEK 0.07

0.09

SENKADAGALA FINANCE COMPANY PLC 0.08

NEGOMBO HOTELS LIMITED 0.07

MRS. - BINANTHI SHAMANI RASANAYAGAM

0.07

0.15

0.12

ASHAN DE ZOYSA AND COMPANY PVT LIMITED 0.15

MR. - NAWALAGE JOSEPH HIRAN MAHINDA COORAY 0.10

SAMPATH BANK PLC/MR.ARUNASALAM SITHAMPALAM 0.42

SEYLAN BANK LTD / GOVINDASAMY RAMANAN 0.37

MRS. - NAFEESA HAMZAALLY ABDUL HUSEIN

0.19

BANK OF CEYLON NO. 1 ACCOUNT 0.32

0.25

COMMERCIAL BANK OF CEYLON PLC A/C NO. 04

MOUGIN INVESTMENT COMPANY LIMITED 1.48

ASSOCIATED ELECTRICAL CORPORATION LTD 0.94

E.W. BALASURIYA & CO. (PVT) LTD 0.65

%

TAL HOTELS & RESORTS LTD 58.14

IHOCO B.V 24.62

EMPLOYEES PROVIDENT FUND 5.33

HALLSVILLE TRADING GROUP INC

PEOPLE'S LEASING & FINANCE PLC/L.P.HAPANGAMA

MASCONS (PVT) LIMITED

TAL LANKA HOTELS PLC

TOP 20 SHARE HOLDERS AS AT 31ST MARCH 2017

Name

Notes to the financial statements

8)

Number of

Share Holders

%

11,234 100.00%

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

81,181,580

34,375,640 82.76%

11,232 17.24%

Total Shares 100.00%139,637,494

IHOCO BV 115,557,220

Public share holding 24,080,274

Entities , Single share holders or Single share holders Jointly or severally

holding 10% or More .

TAL Hotels & Resorts Limited

Any party acting in concert with the parties set out in 1,2,3 and 4. Nil

Nil

Nil

Key Management personnel & their close family members . Nil

Directors of the entity & their close family members . Nil

Chief Executice officer & his close family members . Nil

Parent , Subsidiary or associate entities or any subsidiary or associates of Its Nil

Parent Entity.

PUBLIC SHARE HOLDING AS OF 31ST MARCH 2017

TAL LANKA HOTELS PLC

Issued Share Capital. 139,637,494

Number of Shares

Shares that have been allotted to employees, whereby the shares of the

Entity are, directly or indirectly controlled by the management or the

majority shareholder of the Entity.

Shares that are in a locked account with the CDS due to statutory or

regulatory requirement other than the shareholders exempted under (8)

below.

Notes to the financial statements

9)

Names of the Directors CDS NON CDS

MR . RAKESH KUMAR SARNA NIL NIL

MR. B K CHAUDHARY NIL NIL

MR. TILAK DE ZOYSA NIL NIL

MR. P. VERMA NIL NIL

DR. G SUNDARAM NIL NIL

MR.V.GOVINDASAMY NIL NIL

MR. R K CHAUDHARY NIL NIL

MR. U. NARAIN NIL NIL

MR. N. I. R. DE MEL NIL NIL

TAL LANKA HOTELS PLC

DIRECTORS' SHAREHOLDING AS AT 31ST MARCH 2017

M r . S a r a b j e e t S i n g h , A r e a D i r e c t o r - S r i L a n k a & M a l d i v e s a n d G e n e r a l M a n a g e r - T a j S a m u d r a , s e n i o r m o s tE x e c u t i v e o f t h e C o m p a n y , d o e s n o t h o l d a n y s h a r e s i n T A L L a n k a H o t e l s P L C a n d i s n o t a D i r e c t o r o n t h e B o a r d o ft h e C o m p a n y .

Notes to the financial statements

10)

(LOCAL : FOREIGN)

FOREIGN LOCAL FOREIGN LOCAL FOREIGN LOCAL

1 To 1000 54 10,007 24,376 2,100,444 0.02% 1.50%

1001 To 10,000 27 995 129,997 3,323,087 0.09% 2.38%

10,001 To 100,000 7 127 272,903 3,390,074 0.20% 2.43%

100,001 To 1,000,000 1 11 343,029 3,682,648 0.25% 2.64%

1,000,001 & Above 3 2 117,627,220 8,743,716 84.24% 6.26%

92 11,142 118,397,525 21,239,969 84.79% 15.21%

TAL LANKA HOTELS PLCANALYSIS OF SHAREHOLDERS ACCORDING TO THE NO OF SHARES AS AT 31ST MARCH 2017

NO OF SHARES

TOTAL

GRAND TOTAL 100%

NO. OF TOTAL PERCENTAGE

SHAREHOLDERS HOLDINGS

11,234 139,637,494

Notes to the financial statements

11)

(COMPANY: MEMBER )

COMPANIES MEMBERS COMPANIES MEMBERS COMPANIES MEMBERS

1 To 1000 100 9,961 32,567 2,092,253 0.02% 1.50%

1001 To 10,000 50 972 228,107 3,224,977 0.16% 2.31%

10,001 To 100,000 37 97 1,282,140 2,380,837 0.92% 1.71%

100,001 To 1,000,000 9 3 3,603,512 422,165 2.58% 0.30%

1,000,001 & Above 5 - 126,370,936 - 90.50% -

201 11,033 131,517,262 8,120,232 94.18% 5.82%TOTAL

GRAND TOTAL 11,234 139,637,494 100%

TAL LANKA HOTELS PLCANALYSIS OF SHAREHOLDERS ACCORDING TO THE NO OF SHARES AS AT 31ST MARCH 2017

NO OF SHARES

NO. OF TOTAL PERCENTAGE

SHAREHOLDERS HOLDINGS