Kandy Hotels 1938 : Quarterly Financial Report 31-03-2022

Interim Condensed Financial Statements Twelve Months Ended 31st March 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

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
		Three Months Ended 31st		Twelve Months Ended 31st	Three Months Ended 31st		Twelve Months Ended 31st	Variance
		March			March		March			March
		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		75,906		71,343		179,405		145,045	75,906		71,343		179,405			145,045	24
Cost of sales		(28,870)		(25,989)		(79,192)		(77,797)	(28,869)		(25,989)		(79,192)			(77,797)	2
Gross profit		47,036		45,354		100,213		67,248	47,037		45,354		100,213			67,248	49
Administrative expenses		(44,333)		(28,873)		(150,852)		(126,774)	(220,740)		(28,867)		(327,119)			(126,676)	19
Selling & distribution expenses		(3,865)		(4,964)		(6,214)		(8,327)	(3,865)		(4,964)		(6,214)			(8,327)	(25)
Results from operating activities		(1,162)		11,517		(56,853)		(67,853)	(177,568)		11,523		(233,120)			(67,755)	(16)
Finance expenses		(20,878)		(25,158)		(62,078)		(72,346)	(20,878)		(25,158)		(62,078)			(72,346)	(14)
Finance income		21,194		27,047		78,875		87,182	21,194		27,047		78,875			87,182	(10)
Net finance income		316		1,889		16,797		14,836	316		1,889		16,797			14,836	13
Share of loss of Joint venture		(40,651)		(52,669)		(107,984)		(114,525)	-		-		-			-	(6)
Loss before taxation		(41,497)		(39,263)		(148,040)		(167,542)	(177,252)		13,412		(216,323)			(52,919)	(12)
Income tax		(1,023)		11,984		(22)		(154)	(1,023)		11,984		(22)			(154)	85
Profit / (Loss) for the period
	(42,520)		(27,279)		(148,062)		(167,696)	(178,275)		25,396		(216,345)			(53,073)	(12)
Other comprehensive income
Items that will never be reclassified to profit or loss
Revaluation of Property, Plant and Equipment		1,171,601		-		1,171,601		-	1,171,601		-		1,171,601			-
Deferred tax effect on Revaluation of Property,		(164,024)		-		(164,024)			(164,024)		-		(164,024)
Plant and Equipment					-					-
Actuarial gains/(losses) on defined benefit plans		-		(705)		-		(705)	-		(705)		-			(705)
Deferred tax effect on actuarial loss		-		99		-		99	-		99		-			99
Share of other comprehensive income of joint		-		88		-		88	-		-		-			-
venture
Total other comprehensive income		1,007,577		(518)		1,007,577		(518)	1,007,577		(606)		1,007,577			(606)
Total comprehensive income for the period, net
of tax		965,057		(27,797)		859,515		(168,214)	829,302		24,790		791,232			(53,679)
Earnings / (Losses) per share for the period (Rs.)		(0.07)		(0.05)		(0.26)		(0.29)	(0.31)		0.04		(0.37)			(0.09)
		(148,064)		(167,696)

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

Note : The above figures for the twelve months ended 31st March 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 FINANCIAL POSITION

	Group			Company
As at
31.03.2022			31.03.2021		31.03.2022		31.03.2021
	Rs. '000'			Rs. '000'		Rs. '000'		Rs. '000'
ASSETS
Non Current Assets
Property, plant & equipment	8,555,575			7,461,021		8,555,575		7,461,021
Intangible assets	12,086			16,777		12,086		16,777
Investment in subsidiary				-		176,421		352,843
Investment in joint venture				107,984				-
Investment in equity securities	600,000			525,000		600,000		525,000
	9,167,661			8,110,782		9,344,082		8,355,641
Current Assets
Inventories	33,623			33,589		33,622		33,589
Trade and other receivables	56,741			36,133		56,741		36,133
Amounts due from related parties	1,171,582			1,073,576		1,171,582		1,073,576
Cash and cash equivalents	16,119			52,081		16,309		52,052
	1,278,065			1,195,379		1,278,254		1,195,350
TOTAL ASSETS	10,445,725			9,306,161		10,622,336		9,550,991
EQUITY AND LIABILITIES
Equity
Stated capital	16,750			16,750		16,750		16,750
Reserves	7,962,007			6,815,579		7,706,239		6,687,512
Retained earnings	697,518			909,469		1,130,323		1,282,855
Total Equity	8,676,275			7,741,798		8,853,312		7,987,117
Non-Current Liabilities
Interest bearing borrowings	527,787			547,616		527,787		547,616
Retirement benefit obligations	3,107			4,554		3,107		4,554
Deferred taxation	860,885			715,768		860,885		715,768
Government grants	3,414			3,414		3,414		3,414
	1,395,193			1,271,352		1,395,193		1,271,352
Current Liabilities
Interest bearing borrowings	245,966			163,894		245,966		163,894
Trade and other payables	88,290			90,874		88,112		90,632
Amounts due to related companies	15,476			15,397		15,228		15,150
Contract liabilities	8,400			4,726		8,400		4,726
Income tax payable	11,468			13,462		11,468		13,463
Government grants	4,657			4,657		4,657		4,657
Bank overdrafts	-			-		-		-
	374,257			293,010		373,832		292,522
TOTAL EQUITY AND LIABILITIES	10,445,725			9,306,161		10,622,336		9,550,991
Net Assets per Share (Rs.)	15.02			13.41		15.33		13.83

Note : The above figures for the date of 31st March 2022 are provisional and subject to Audit. All values are in Rupees Thousands unless otherwise stated.

I certify that the Financial Statements comply with the requirements of the Companies Act No 07 of 2007.

(Sgd.)

…………………………….

Nilani De Silva

Financial Controller

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Approved & signed for and on behalf of the Board,

	(Sgd.)	(Sgd.)
	…………………………	………………………………….
Sanjeev Gardiner	Lakshman Samarasinghe
Chairman	Director
31st May 2022

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THE KANDY HOTELS COMPANY (1938) PLC

STATEMENT OF CHANGES IN EQUITY

Period ended 31st March 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 2020	16,750		(75,000)		6,954,430		1,013,870		7,910,050
Loss for the period	-		-		-		(167,696)		(167,696)
Other comprehensive income
Actuarial gain/(loss) on retirement benefit obligation net of tax	-		-		-		(606)		(606)
Share of other comprehensive income attributable to joint venture	-		-		-		88		88
Total comprehensive income/(loss) for the period	-		-		-		(168,214)		(168,214)
Transaction with owners of the company
Transfer to retained earnings	-		-		(63,851)		63,851		-
Dividends-(15% Cumulative preference shares)	-		-		-		(38)		(38)
Total transaction with owners of the company	-		-		(63,851)		63,813		(38)
Balance as at 31st March 2021	16,750		(75,000)		6,890,579		909,469		7,741,798
Balance as at 01st April 2021	16,750		(75,000)		6,890,579		909,469		7,741,798
Loss for the period	-		-		-		(148,062)		(148,062)
Other comprehensive income
Revaluation of property , plant and equipment	-		-		1,171,601		-		1,171,601
Deferred tax effect on revaluation of property , plant and equipments	-		-		(164,024)		-		(164,024)
Changes in equity instruments designated at FVTOCI	-		75,000		-		-
Total comprehensive loss for the period	-		75,000		1,007,577		(148,062)		859,515
Transaction with owners of the company
Transfer to retained earnings	-		-		63,851		(63,851)		-
Dividends-(15% Cumulative preference shares)	-		-		-		(38)		(38)
Total transaction with owners of the company	-		-		63,851		(63,888)		(38)
Balance as at 31st March 2021	16,750		-		7,962,007		697,518		8,601,276
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 2020	16,750		(75,000)		6,826,363		1,272,721		8,040,834
Loss for the period	-		-		-		(53,073)		(53,073)
Other comprehensive income									-
Actuarial gain/(loss) on retirement benefit obligation net of tax	-		-		-		(606)		(606)
Total comprehensive loss for the period	-		-		-		(53,679)		(53,679)
Transaction with owners of the company
Transfer to retained earnings	-		-		(63,851)		63,851		-
Dividends-(15% Cumulative preference shares)	-		-		-		(38)		(38)
Total transaction with owners of the company	-		-		(63,851)		63,813		(38)
Balance as at 31st March 2021	16,750		(75,000)		6,762,512		1,282,855		7,987,117
Balance as at 01st April 2021	16,750		(75,000)		6,762,512		1,282,855		7,987,117
Loss for the period	-		-		-		(216,345)		(216,345)
Other comprehensive income
Revaluation of property , plant and equipment	-		-		1,171,601		-		1,171,601
Deferred tax effect on revaluation of property , plant and equipments	-		-		(164,024)		-		(164,024)
Changes in equity instruments designated at FVTOCI			75,000						75,000
Total comprehensive loss for the period	-		75,000		1,007,577		(216,345)		866,232
Transaction with owners of the company
Transfer to retained earnings	-		-		(63,851)		63,851		-
Dividends-(15% Cumulative preference shares)	-		-		-		(38)		(38)
Total transaction with owners of the company	-		-		(63,851)		63,813		(38)
Balance as at 31st March 2021	16,750		-		7,706,239		1,130,323		8,853,312

Note : The above figures for the twelve months ended 31st March 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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