Hotel Sigiriya : Interim Financial Statements as at 31st March 2024

Hotel Sigiriya PLC

Year ended 31 March 2024

Contents	Page No.
Financial Statements
Statement of Financial Position	2
Statement of Profit or Loss	3
Statement of Changes in Equity	4
Statement of Cash Flows	5
Notes to the Financial Statements	6-7
Investor Information	8-9

Hotel Sigiriya PLC

STATEMENT OF FINANCIAL POSITION

As at	31.03.2024	31.03.2023
	Unaudited	Audited
	Rs.	Rs.
ASSETS
Non-current assets
Property, plant and equipment	613,977,311	636,423,730
Right-of-Use Assets	43,982,744	48,272,390
Intangible assets	1,521,427	576,463
Other financial assets	2,682,567	1,957,382
	662,164,049	687,229,965
Current assets
Inventories	13,429,136	12,180,613
Trade and other receivables	238,923,241	14,365,989
Taxation recoverable	2,802,975	-
Cash and cash equivalents	321,660,796	355,239,262
	576,816,148	381,785,864
Total Assets	1,238,980,197	1,069,015,829
EQUITY AND LIABILITIES
Equity
Stated capital	449,190,000	449,190,000
Revaluation reserve	319,638,483	319,638,483
Fair value reserve	(1,317,434)	(2,042,618)
Retained earnings	160,407,847	59,105,615
Total equity	927,918,896	825,891,480
Non-current liabilities
Interest Bearing loans & borrowings	15,701,286	21,099,711
Deferred tax liabilities	108,118,830	90,951,023
Employee benefit obligations	10,404,711	10,044,793
	134,224,827	122,095,527
Current liabilities
Trade and other payables	146,751,182	107,171,688
Income tax liability	-	41,498
Interest bearing loans and borrowings	2,640,726	2,640,726
Bank overdraft	27,444,566	11,174,910
	176,836,474	121,028,822
Total Equity and Liabilities	1,238,980,197	1,069,015,829
Net Assets Per Share (Rs.)	52.79	46.99

These Financial Statements are in compliance with the requirements of the Companies Act No.07 of 2007.

Sgd.

Mrs. S.S Kotakadeniya

Chief Financial Officer - LOLC Group

The Board of Directors is responsible for these financial statements.

Signed for and on behalf of the board by,

Sgd.	Sgd.
Director	Director

Colombo

30 May 2024

2

Hotel Sigiriya PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	03 Months		03 Months				Year	Year
	Ended		Ended			Variance	Ended	Ended	Variance
	31.03.2024	31.03.2023	%	31.03.2024	31.03.2023	%
	Unaudited		Unaudited				Unaudited	Audited
	Rs.		Rs.				Rs.	Rs.
Revenue	162,475,160	80,882,577	>100%	491,954,945	245,493,758	100%
Cost of sales	(42,667,141)	(24,285,477)	-76%	(134,945,420)	(75,424,169)	-79%
Gross profit	119,808,019		56,597,100			>100%	357,009,525	170,069,589	>100%
Other Operating Income	204,960	(385,773)	->100%	255,757	487,227	->100%
Personnel Costs	(26,120,710)	(17,199,511)	-52%	(95,497,710)	(84,481,365)	-13%
Depreciation and Amortization	(11,673,413)	(11,267,656)	-4%	(47,325,698)	(41,789,114)	-13%
Other Operating Expenses	(44,914,892)	(24,669,541)	-82%	(153,633,096)	(89,872,747)	-71%
Operating Profit / (Loss)	37,303,964	3,074,620	>100%	60,808,778	(45,586,410)	>100%
Net Finance Income	15,919,356	14,918,552	7%	57,670,898	16,985,383	>100%
Profit / (Loss) before tax	53,223,320	17,993,172	196%	118,479,676	(28,601,027)	>100%
Tax (Expense) / Reverse	(17,170,698)	25,001,132	->100%	(17,170,698)	25,001,132	->100%
Profit / (Loss) for the period	36,052,622	42,994,304	-16%	101,308,978	(3,599,895)	>100%
Earnings / (Loss) per share (Rs.)	2.05	2.45				5.76	(0.29)

3

Hotel Sigiriya PLC

STATEMENT OF COMPREHENSIVE INCOME

	03 Months
	Ended
	31.03.2024
	Unaudited
	Rs.
Profit / (Loss) for the Period	36,052,622
Other Comprehensive Income
Actuarial Gain/(Loss) on Defined Benefit Plan	(9,637)
Deferred Tax Attributable to Actuarial (Gain)/Loss	2,891

03 Months	Variance	Year
Ended	%	Ended
31.03.2023		31.03.2024
Audited		Unaudited
Rs.		Rs.
42,994,304	-16%	101,308,978
14,342,887	->100%	(9,637)
(4,302,866)	100%	2,891

Year Variance

Ended % 31.03.2023

Audited

Rs.

(3,599,895) >100%

14,342,887 ->100%

(4,302,866) 100%

Fair Value Loss on Fair Value Through OCI Investments		725,184	85,085	>100%		725,184	85,085	>100%
Deferred Tax Attributable to Revaluation (Gain)/Loss		-	(61,500,181)	-100%		-	(61,500,181)	-100%
Other Comprehensive Income for the Period, Net of Tax
	718,438		(51,375,075)	0%		718,438		(51,375,075)	>100%
Total Comprehensive Income for the Period, Net of Tax
	36,771,060		(8,380,771)	>100%		102,027,416		(54,974,970)	>100%

4

Hotel Sigiriya PLC

STATEMENT OF CHANGES IN EQUITY

	Stated Capital	Revaluation Reserve	Fair Value	Retained Earnings	Total
	Reserve
	Rs.	Rs.	Rs.	Rs.	Rs.
Balance as at April 01, 2023	97,650,000	381,138,664	(2,127,703)	52,665,490	529,326,451
Net loss for the period	-	-		(3,599,895)	(3,599,895)
Other comprehensive income
Deferred Tax on revaluation surplus	-	(61,500,181)	-	-	(61,500,181)
Actuarial Gain on Defined Benefit Plan	-	-	-	14,342,887	14,342,887
Deferred Tax Attributable to Actuarial Gain	-	-	-	(4,302,866)	(4,302,866)
Fair Value Loss on Fair Value Through OCI Investments	-	-	85,085	-	85,085
Total comprehensive income for the period	-	(61,500,181)	85,085	6,440,125	(54,974,970)
Issue of Shares	351,540,000	-	-	-	351,540,000
Balance as at March 31, 2023	449,190,000	319,638,483	(2,042,618)	59,105,615	825,891,480
Balance as at April 1, 2023	449,190,000	319,638,483	(2,042,618)	59,105,615	825,891,480
Net profit for the period	-	-	-	101,308,978	101,308,978
Other comprehensive income
Actuarial Loss on Defined Benefit Plan	-	-	-	(9,637)	(9,637)
Deferred Tax Attributable to Actuarial Loss	-	-	-	2,891	2,891
Fair Value Loss on Fair Value Through OCI Investments	-	-	725,184	-	725,184
Total comprehensive income for the period	-	-	725,184	101,302,232	102,027,416
Balance as at March 31, 2024	449,190,000	319,638,483	(1,317,434)	160,407,847	927,918,896

5

Hotel Sigiriya PLC

STATEMENT OF CASH FLOWS

			Year	Year
			Ended	Ended
			31.03.2024	31.03.2023
			Unaudited	Audited
			Rs.	Rs.
Cash Flows generated from Operating Activities
Net		Profit / (Loss) before Income Tax	118,479,676	(28,601,027)
Adjustments for
		Depreciation	42,312,447	36,558,977
		Amortisation of intangible assets	723,605	723,605
		Amortisation of leasehold property	4,289,646	4,289,646
		Finance income	(58,861,073)	(52,458,307)
		(Gain)/loss on disposal of Intangible Assets	(1,668,569)	-
		Gain on Retirement of Property, Plant & Equipment	2,705,743	-
		Finance costs	-	35,472,924
		Exchange Loss	1,190,175	353,593
		Provision for defined benefit plans	2,123,656	3,963,765
			111,295,306	303,176
Working capital adjustments
		Decrease in inventories	(1,248,522)	(4,263,398)
		(Increase) / Decrease in trade and other receivables	(164,547,496)	41,956,500
		Increase / (Decrease) in trade and other payables	36,776,509	(107,100,539)
Cash generated used in operations	(17,724,202)	(69,104,261)
		Interest paid	(1,190,175)	(32,475,578)
		Defined benefit obligation paid	(1,773,375)	(895,195)
		Income tax paid	-	(335,221)
Net cash generated used in operating activities	(20,687,752)	(102,810,255)
Cash Flows From / (Used in) Investing Activities
		Purchase of property, plant & equipment	(27,463,293)	(39,360,092)
		Purchase of intangible assets	-	1,292,849
		Proceeds from sale of Property, Plant & Equipment	4,891,523	56,994,784
		Interest received	-	41,868,020
Net cash flows from / (used in) investing activities	(22,571,770)	60,795,561
Net	Cash Flows From / (Used in) Financing Activity
		Proceeds from issuance of share capital	-	351,540,000
		Repayment of Lease Liability	(6,588,600)	(2,108,663)
		Repayment of interest bearing loans & borrowings	-	(2,499,990)
Net cash flows (used in) / from financing activity	(6,588,600)	346,931,347
Net increase / (decrease) in cash and cash equivalents	(49,848,122)	304,916,653
Cash and cash equivalents at the beginning of the period	344,064,352	39,147,699
Cash and cash equivalents at the end of the period	294,216,230	344,064,352
Analysis of Cash & Cash Equivalents
Cash at Bank and in hand	321,660,796	355,239,262
Bank Overdraft	(27,444,566)	(11,174,910)
			294,216,230	344,064,352

6

Hotel Sigiriya PLC

NOTES TO THE FINANCIAL STATEMENTS

1. The Statement of Financial Position, the Statement of Profit or Loss and Other Comprehensive Income , Cash Flow Statement and Statement of Changes in Equity for the Company as at and for the period ended 31 March 2024 that are drawn up from unaudited accounts of the company and provide information as required by Colombo Stock Exchange and LKAS 34, "Interim Financial Reporting". Furthermore, provisions of the Companies Act No 7 of 2007 has been considered in preparing these interim financial statements.
   The interim financial statements are presented in Sri Lanka Rupees (LKR).
   The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be comparable with those of the current period.
2. Accounting policies and method of computations as stated in the audited financial statements for the financial year ended 31 March 2023 are followed in the preparation of these Interim Financial Statements.
3. Revenue includes accommodation sales for rooms occupied on daily basis, together with outlet sales and other income from hotel operations.
4. Other income represent other sources of income not shown under revenue.
5. All expenses related to management expenditure are fully provided for in these financial statements.

6

	Level 1	Level 2	Level 3
	Rs.	Rs.	Rs.
Fair Value hierarchy
As at 31 March 2024	-	-	2,682,567
Other Financial Assets
	-	-	2,682,567

Fair Value hierarchy As at 31 March 2023 Other Financial Assets

7 Going concern

-	-	1,957,382
-	-	1,957,382

In determining the basis of preparing the interim financial statements for the year ended 31 March 2024, based on available information the management has formed reasonable judgement that the Company has adequate resources to continue its business operations for the foreseeable future monitoring its business performance and continuity by adopting risk mitigation initiatives at each company level.

1. There has been no material events occurring after the reporting date that require adjustment to or disclosure in these Interim Financial Statements.
2. There is no contingent liabilities as at the reporting date that require disclosures in these Interim Financial Statements.

6

Hotel Sigiriya PLC

INVESTOR INFORMATION

	31.03.2024	31.03.2023
Earnings / (Loss) per Share (Rs.)
5.76	(0.29)
Debt/Equity Ratio (%)	1.98	2.87
Interest Cover (Times)	100.55	(0.19)
Quick Asset Ratio (Times)	3.19	3.05
No. of shares representing Stated Capital	17,577,000	17,577,000
Market Price - Highest (Rs.)	59.00	36.00
- Lowest (Rs.)	50.20	29.00
- Last Traded (Rs.)	51.00	33.30

8

Hotel Sigiriya PLC

DIRECTORS' SHAREHOLDING

	31.03.2024
	No. of Shares
Mr. W.D.K. Jayawardena	NIL
Mrs. K.U. Amarasinghe	NIL
Mr. D.S.K. Amarasekera	NIL
Dr. J.M. Swaminathan	NIL
Mr. B.S.M. De Silva	19,500
Mr. Stefan Furkhan	NIL

LIST OF 25 MAJOR SHAREHOLDERS

	31.03.2024
Name	No. of Shares	%
Serendib Hotels Limited	11,300,770	64.29
Mr. S.R.S. De Saram	750,000	4.27
Guardian Insurance Brokers (Pvt) Ltd	449,319	2.56
Merchant Bank Of Sri Lanka & Finance Plc/S.A.A. Hasitha	349,735	1.99
Mr. S.P. Perera	303,127	1.72
Freudenberg Shipping Agencies Limited	212,090	1.21
Mr. K. Ratwatte	209,845	1.19
Dawi Investment Trust (Pvt) Ltd	181,712	1.03
Merchant Bank Of Sri Lanka Plc/Mr.Pathige Samantha Manesh Fernando	150,000	0.85
People's Leasing & Finance Plc/Dr.H.S.D.Soysa & Mrs.G.Soysa	132,235	0.75
Mrs. L.I. Perera	130,031	0.74
The Ceylon Investors Pvt Limited	124,650	0.71
Mrs. J.K.P. Singh	100,000	0.57
Thread Capital (Private) Limited	100,000	0.57
Mrs. L.K. Goonewardene	95,214	0.54
Mr. A.J.M. Jinadasa	90,000	0.51
Hatton National Bank Plc/Kandaiah Kanapathipillai Shujeevan	88,788	0.51
Dialog Finance Plc/Fors Investment (Private) Limited	79,505	0.45
Mr. A.M.E. Fernando	75,000	0.43
Mrs. J. De Soysa	70,000	0.40
Mr. M.C. Gamage	60,631	0.34
Guardian Equity Limited	56,000	0.32
Mr. N. Balasingam	52,100	0.30
Mr. P. Tillakaratne	50,000	0.28
Mr. E.F. Weerackoon	50,000	0.28
	15,260,752	89.67
Shares held by the balance shareholders	2,316,248	10.33
	17,577,000	100.00

MINIMUM PUBLIC HOLDING REQUIREMENT AS PER SECTION 7.13.1 (a) OF CSE LISTING RULES

Category	Float Adjusted Market	Public Holding	No. of	Option
	Capitalization(Rs.)	Percentage	Shareholders
Ordinary (Voting) Shares	896,427,000	35.60%	1256	5

9