Tal Lanka Hotels : Interim financial statements for the quarter ended 30th June 2022

TAL LANKA HOTELS PLC

Statement of Profit or Loss and Other Comprehensive Income

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

	1st Quarter Ended 30th June
Particulars
	2022	2021	% Change
Revenue	325,215	128,133	154
Direct Cost	(396,451)	(275,825)	44
Gross profit / (loss)	(71,237)	(147,692)	(52)
Other Income	654	19	3,340
Marketing Expenses	(23,683)	(12,228)	94
Administrative Expenses	(134,604)	(61,217)	120
Profit/(Loss) from operations	(228,870)	(221,118)	4
Finance Income	15,955	2,845	461
Finance expenses	(796,425)	(37,012)	2,052
Net Finance Expense	(780,470)	(34,167)	2,184
Loss Before Tax	(1,009,340)	(255,285)	295
Income Tax Expense	-	-	-
Loss for the period	(1,009,340)	(255,285)	295
Other Comprehensive income/(expense),net of income tax
Items that will not be reclassified subsequently to profit or loss:
Equity investments at FVOCI - net change in fair value, net of tax	-	-	-
Other comprehensive income for the year, net of tax	-	-	-
Total comprehensive expense for the period	(1,009,340)	(255,285)	295
Loss per share- basic (Rs.)	(7.23)	(1.83)

TAL LANKA HOTELS PLC

Statement of Financial Position

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

Particulars	As at 30th June	As at 30th June	As at 31st
2022	2021	March 2022
ASSETS
Non-current assets
Property, plant and equipment	3,920,905	3,636,548	4,002,574
Intangible assets	614	2,781	873
Leasehold property-right to use of land	761,778	774,969	765,076
Equity Securities designated as at FVOCI	18,695	15,821	18,695
Investments in Fixed Deposits	1,014,953	283,228	808,128
	5,716,944	4,713,347	5,595,345
Current assets
Inventories	91,461	55,809	63,960
Trade and other receivables	51,083	64,148	137,694
Amounts receivable from related parties	42	1,267	42
Deposits, prepayments and advances	59,850	108,209	80,689
Current tax asset	6,284	13,953	6,284
Cash and cash equivalents	84,150	12,375	192,196
	292,870	255,761	480,864
Total assets	6,009,814	4,969,108	6,076,209
EQUITY AND LIABILITIES
Capital and reserves
Stated capital (139,637,494 Shares)	1,396,375	1,396,375	1,396,375
Revaluation reserve	1,837,416	1,438,929	1,894,366
Fair value reserve	4,146	1,560	4,146
Accumulated losses	(4,113,467)	(1,815,474)	(3,161,077)
Total Equity	(875,530)	1,021,390	133,810
Non-current liabilities
Loans and borrowings	4,391,869	2,023,875	3,676,884
Retirement benefit obligation	42,879	85,654	38,078
Deferred tax liability	566,520	420,459	566,520
	5,001,268	2,529,988	4,281,482
Current liabilities
Loans and borrowings	1,234,162	611,674	947,081
Trade and other payables	501,938	421,553	504,478
Amounts payable to related parties	121,518	125,023	108,130
Bank Overdraft	26,459	259,481	101,228
	1,884,077	1,417,730	1,660,917
Total liabilities	6,885,344	3,947,718	5,942,399
Total Equity and Liabilities	6,009,814	4,969,108	6,076,209
Net asset value per share Rs.	(6.27)	7.31	0.96

I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act No. 7 of 2007.

Paras Puri

Area Financial Controller- Sri Lanka , Maldives , Malaysia &

Director of Finance - Taj Samudra , Colombo

The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed for and on behalf of the Board of Directors of TAL Lanka Hotels PLC.

V.Govindasamy - Director

T.De Zoysa - Director

Date :- 14th July 2022

TAL LANKA HOTELS PLC

Statement of Changes in Equity

(All amounts in Sri Lanka Rupees thousands)

Particulars	Stated	Revaluation	Fair value reserve	Accumulated	Total
Capital	reserve	losses
Balance as at 01st April 2021	1,396,375	1,472,378	1,560	(1,593,638)	1,276,675
Total comprehensive income/(expense) for the period
Loss for the period	-	-	-	(255,285)	(255,285)
Other comprehensive income/(expense)
Equity investments at FVOCI -net change in fair value , net of tax	-	-	-	-	-
Total Other comprehensive income/(expense),net of tax	-	-	-	-	-
Total comprehensive income/(expense)for the period	-	-	-	(255,285)	(255,285)
Transfer of depreciation	-	(33,449)	-	33,449	-
Balance as at 30th June 2021	1,396,375	1,438,929	1,560	(1,815,474)	1,021,390
Balance as at 01st April 2022	1,396,375	1,894,366	4,146	(3,161,077)	133,810
Total comprehensive income/(expense) for the period
Loss for the period	-	-	-	(1,009,340)	(1,009,340)
Other comprehensive income/(expense)
Equity investments at FVOCI -net change in fair value , net of tax	-	-	-	-	-
Total Other comprehensive income/(expense),net of tax	-	-	-	-	-
Total comprehensive income/(expense)for the period	-	-	-	(1,009,340)	(1,009,340)
Transfer of depreciation	-	(56,950)	-	56,950	-
Balance as at 30th June 2022	1,396,375	1,837,416	4,146	(4,113,467)	(875,530)

TAL LANKA HOTELS PLC

Statement of Cash Flows

(All amounts in Sri Lanka Rupees thousands)

	For the 03 months ended
Particulars	30th June
	2022	2021
Cash flows from Operating activities
Loss before tax	(1,009,340)	(255,285)
Adjustments for:
Gain on disposals of property plant and equipment	(600)	-
Depreciation on property, plant and equipment	98,617	87,876
Amortisation of intangible asset	259	846
Amortisation of Right of use assets	3,298	3,298
Interest income	(15,955)	(2,845)
Interest expense	85,420	26,361
Provision for defined benefit plans	6,924	3,984
Economic service charge write off	-	1,845
Unrealized exchange loss	745,111	10,338
Operating profit/(loss)before working capital changes	(86,266)	(123,582)
(Increase )/Decrease in inventories	(27,502)	(600)
(Increase )/Decrease in trade and other receivables	86,611	(28,868)
(Increase )/Decrease in amounts receivable from related companies	-	(183)
(Increase )/Decrease in deposits ,prepayments and advances	20,839	(22,687)
Increase /(Decrease) in trade and other payables	(2,540)	20,614
Increase /(Decrease) in amounts payable to related companies	13,388	5,636
Cash (Used in)/generated from operations	4,530	(149,669)
Income taxe Paid	-	-
Net Retirement benefits receipt from fund	12	-
Investments in plan asset	-	-
Interest paid	(22,080)	(5,451)
Net cash (Used in) /generated from operating activities	(17,537)	(155,120)
Cash flows from investing activities
Net proceeds from disposal of property, plant and equipment	600	(4,206)
Purchase of property, plant and equipment	(16,949)	-
(Investment) / Withdrawal in fixed deposits	-	(139,440)
Interest received	609	88
Net cash Used in investing activities	(15,739)	(143,558)
Cash flows from Financing activities
Re Payment of Loans	-	139,440
Payments on lease liability	-	(2,000)
Net cash generated from /(used in) financing activities	-	137,440
Net increase /(decrease) in cash and cash equivalents	(33,277)	(161,238)
Cash & cash equivalents at the beginning of the year	90,968	(85,868)
Cash & cash equivalents at the end of the period	57,691	(247,106)
Cash and cash equivalents at the end of the period
Cash and cash equivalents	57,691	(247,106)
	57,691	(247,106)