Kandy Hotels 1938 : QUARTERLY FINANCIAL STATEMENTS FOR THE Q/E 31/12/2022

Interim Condensed Financial Statements Nine Months ended 31st December 2022

The Kandy Hotels Company (1938) PLC

A Member of the Galle Face Group

The Kandy Hotels Company (1938) PLC

CORPORATE INFORMATION

Stock Exchange Listing

The Ordinary Shares of the Company are listed on the

Colombo Stock Exchange of Sri Lanka

Directors

Sanjeev Gardiner - Chairman

Charitha Ratwatte

Lakshman Samarasinghe

Priyantha Maddumage

Ranjith Gunatilleke

Nahil Wijesuriya

Chandra Mohotti

Nilanga Dela

Shalike Karunasena (Alternate Director to Mr. Priyantha Maddumage)

Secretaries

Accounting Systems Secretarial Services (Pvt) Ltd

Level 03, No 11, Castle Lane, Colombo 04

Auditors

Ernst & Young

Chartered Accountants

No. 839/2, Peradeniya Road, Kandy

Registered Office

The Kandy Hotels Company (1938) PLC

No. 327, Union Place, Colombo 02

Company Registration No. PQ 201

Hotel Reservations

Ceylon Hotels Corporation PLC

Regency Wing - Galle Face Hotel

No. 02, Galle Road, Colombo 03

Tel: [phone] Fax : [phone]

Email : [e-mail]

Website : www.queenshotel.lk/www.hotelsuisse.lk

THE KANDY HOTELS COMPANY (1938) PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		Group					Company
GP	64%	93%		63%	70%	71%		93%		63%	70%
	Three Months Ended 31st		Nine Months Ended 31st	Three Months Ended 31st		Nine Months Ended 31st	Variance
	December		December	December			December	(YTD)
	2022	2021		2022	2021	2022		2021		2022	2021	Group
	Rs. '000'	Rs. '000'		Rs. '000'	Rs. '000'	Rs. '000'		Rs. '000'		Rs. '000'	Rs. '000'	%
Revenue	77,902	53,094		225,083	103,499	77,902		53,094		225,083	103,499	117
Cost of sales	(28,163)	(3,598)		(82,551)	(30,984)	(22,315)		(3,598)		(82,551)	(30,984)	166
Gross profit
49,739	49,496		142,533	72,516	55,588		49,496		142,533	72,516	97
Administrative expenses	(66,445)	(52,301)		(181,852)	(125,858)	(72,241)		(52,291)		(181,667)	(125,718)	44
Selling & distribution expenses	(3,103)	(1,290)		(8,801)	(2,349)	(3,103)		(1,290)		(8,801)	(2,349)	275
Results from operating activities
(19,809)	(4,095)		(48,121)	(55,691)	(19,756)		(4,085)		(47,935)	(55,552)	(14)
Finance expenses	(29,674)	(15,321)		(83,396)	(41,200)	(29,674)		(15,321)		(83,396)	(41,200)	102
Finance income	45,140	19,320		111,213	57,681	45,140		19,320		111,213	57,681	93
Net finance income/(cost)	15,467	3,999		27,818	16,481	15,467		3,999		27,818	16,481	69
Share of loss of Joint venture	-	(17,279)		(4,899)	(67,333)	-		-		-	-	(93)
Profit/(Loss) before taxation
(4,342)	(17,374)		(25,201)	(106,544)	(4,290)		(86)		(20,118)	(39,071)	(76)
Income tax	15,048	10,206		10,537	1,000	15,048		10,206		10,537	1,000	(954)
Profit/(Loss) for the period
10,706	(7,168)		(14,665)	(105,544)	10,759		10,120		(9,581)	(38,071)	(86)
Other comprehensive income	-	-		-	-	-		-		-	-
Fair Value gain on Investment in Equity Shares	131,741	-		131,741	-	131,741		-		131,741	-	100
Deferred Tax on Revaluation gain on Investment in Equity Shares	(39,522)	-		(39,522)	-	(39,522)		-		(39,522)	-	100
Deferred tax on Revaluation of land and buildings	(1,034,346)	-		(1,034,346)	-	(1,034,346)		-		(1,034,346)	-	100
Total comprehensive income for the period, net of tax
(931,421)	(7,168)		(956,792)	(105,544)	(931,368)		10,120		(951,708)	(38,071)	807
Earning per share for the period (Rs.)	0.02	(0.01)		(0.03)	(0.18)	0.02		0.02		(0.02)	(0.07)	86
	(14,665)	(105,545)

Entire profit and total comprehensive income is attributable to equity holders of the parent

Note : The above figures for the nine months ended 31st December 2022 are provisional and subject to Audit.

Figures in brackets indicate deductions.

All values are in Rupees Thousands unless otherwise stated.

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THE KANDY HOTELS COMPANY (1938) PLC

STATEMENT OF CHANGES IN EQUITY

Period ended 31st December 2022

Group	Stated		FVOCI		Revaluation		Retained		Total
	Capital		Reserve		Reserves		Earnings		Equity
	Rs. '000'		Rs. '000'		Rs. '000'		Rs. '000'		Rs. '000'
Balance as at 01st April 2021	16,750		(75,000)		6,890,579		909,470		7,741,799
Profit / (Loss) for the period	-		-		-		(105,544)		(105,544)
Total comprehensive income							(105,544)		(105,544)
Transfer to retained earnings	-		-		(46,251)		46,251		-
Dividends-(15% Cumulative preference shares)							(38)		(38)
Balance as at 31st December	16,750		(75,000)		6,844,327		850,139		7,636,217
Balance as at 01st April 2022	16,750		-		7,834,303		818,040		8,669,094
Profit / (Loss) for the period	-		-		-		(14,665)		(14,665)
Total comprehensive income							(14,665)		(14,665)
Deferred tax effect on revaluation of PPE	-		-		(1,034,346)		-		(1,034,346)
Net change on equity instruments designated at fair value through OCI	-		131,741		-		-		131,741
Deferred tax effect on FV Gain on Investment in equity shares			(39,522)						(39,522)
Transfer to retained earnings	-		-		(55,280)		55,280		-
Dividends-(15% Cumulative preference shares)							(75)		(75)
Balance as at 31st December2022	16,750		92,219		6,744,677		858,581		7,712,227
Company
Stated		FVOCI		Revaluation		Retained		Total
	Capital		Reserve		Reserves		Earnings		Equity
	Rs. '000'		Rs. '000'		Rs. '000'		Rs. '000'		Rs. '000'
Balance as at 01st April 2021	16,750		(75,000)		6,762,512		1,282,855		7,987,117
Loss for the period	-		-		-		(38,071)		(38,071)
Total other comprehensive income for the year net of tax	-		-		-		-		-
Total comprehensive income	-		-		-		(38,071)		(38,071)
Transfer to retained earnings	-		-		(46,251)		46,251		-
Dividends-(15% Cumulative preference shares)	-		-		-		(38)		(38)
Balance as at 31st December 2021	16,750		(75,000)		6,716,261		1,290,997		7,949,008
Balance as at 01st April 2022	16,750		-		7,706,237		1,123,185		8,846,172
Loss for the period	-		-		-		(9,581)		(9,581)
Total other comprehensive income for the year net of tax	-		-		-		-		-
Total comprehensive income	-		-		-		(9,581)		(9,581)
Deferred tax effect on revaluation of PPE	-		-		(1,034,346)		-		(1,034,346)
Net change on equity instruments designated at fair value through OCI	-		131,741		-		-		131,741
Deferred tax effect on FV Gain on Investment in equity shares	-		(39,522)		-		-		(39,522)
Transfer to retained earnings	-		-		(55,280)		55,280		-
Dividends-(15% Cumulative preference shares)	-		-		-		(75)		(75)
Balance as at 31st December 2022	16,750		92,219		6,616,611		1,168,810		7,894,389

Note : The above figures for the six months ended 31st December 2022 are provisional and subject to Audit.

Figures in brackets indicate deductions.

All values are in Rupees Thousands unless otherwise stated.

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