annual report 2013 / 2014

Transcription

ANNUAL REPORT 2013 / 2014
nilana is one of Sri Lanka’s youngest and newest brands, already
enjoying positive recognition from guests and dignitaries alike. Our
touch of paradise is a rare collection of unique and stylish resorts which
have been designed to present Sri Lanka at her most beautiful.
Dedicated to the concept of combining luxury, sensible design, discrete
service, intimate seclusion and rejuvenation, we hope you will take the
time to discover us and enjoy a new brand of traditional Sri Lankan
hospitality.
We operate as a luxury brand and focus on providing a memorable
service. Each of our resorts is designed to be unique and strives to
provide authentic and delicious food, a discrete and relaxing time, as
well as comfortable and luxurious accommodations.
With two hotels and one villa currently in operation, and two hotels and
several villas under construction, additional projects under development,
we continue with our mission to grow our brand. Our aspiration is to be
recognized as one of the top hospitality brands in the country.
Vision
(What we aspire to be)
A
nilana aspires to be recognised for stylish, contemporary and
comfortable properties, which provide high quality service standards,
gracious hospitality and focus on satisfying our guest’s needs.
Mission
(How we intend to get there)
W
e focus on originality and economically designing facilities to
provide services which both surprise and delight our guests,
whilst generating profitability for our shareholders.
Our aim is to become preferred: as an employer by our associates,
as a hotel by our guests and as a shrewd investment by our
shareholders.
Maintaining sustainable growth, we will provide excellent career
development opportunities, memorable service and above average
profitable returns to our shareholders, enhancing the value of
investments and the worth of the company.
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Anilana Annual Report 2013 / 2014
Contents
Management Reviews
Chairman’s Message
Chief Operating Officer’s Message
04
06
Management Profiles
Board of Directors
Corporate Management Team
08
10
Anilana Properties
Anilana Pasikuda
Anilana Nilaveli
Guest Feedback
Anilana Craig Bank Nuwara Eliya
Anilana Dambulla Country Club & Spa
Anilana Colombo
Anilana Panichchankerni
Anilana Selladiv Island
Anilana Blue Lagoon
Anilana Vakarai
Anilana Kalkuda
12
14
16
18
20
22
24
26
28
30
32
Integrated Management Discussion & Analysis
Management Discussion & Analysis
Operating Strategy & Review
Human Resources Development
Corporate Social Responsibility
34
38
44
48
Governance
Corporate Governance
Audit Committee Report
Remuneration Committee Report
Board of Directors on the Affairs of the Company
52
58
59
60
Financial Reports
Statement of Director’s Responsibilities
Independent Auditor’s Report
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Cash Flow Statement
Notes to Financial Statements
67
69
71
72
74
75
76
Supplementary Information
Shareholder & Investor Information
Notice of Meeting
Form of Proxy
100
102
103
Corporate Information
Inner
Back Cover
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Sri Lanka is truly positioned
as one of the most scenic tourist
hot spots in the world.
Anilana’s focus
remains the same
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4
Chairman’s Message
A
nilana continues to grow, garnering positive consumer feedback
and accolades for good service and high quality. For the past twelve
months, we have been consolidating a position as a rapidly emerging
new Sri Lankan brand, confident in the developing dynamics of the Sri
Lankan economy. We are in an industry that is one of the top foreign
exchange earners for the country, at a time when prospects for growth
in tourism and property development have never been more optimistic.
Recognised as one of the top 10 travel destinations in recent years, Sri
Lanka is truly positioned as one of the most scenic tourist hot spots in
the world.
Emerging global and regional trends
Now freed from civil conflict, Sri Lanka is positioned to reap the benefits
with continued robust growth in the tourism industry. Renewed support
from the traditional markets is the largest cross section of tourist
arrivals, with almost half a million from Western Europe during 2013,
representing approximately 37% of the 1,274,593 total tourist arrivals
reported in 2013. We anticipate even higher growth during 2014 as we
move towards achieving our targeted 2.5 million tourist arrivals in 2016.
We are delighted to see growth from neighboring countries in South
Asia, especially India which represents the highest number of arrivals
to Sri Lanka with an almost 20% market growth to 208, 795. The South
Asia market represents approximately 24% of our total tourist arrivals,
whilst as anticipated, we see that East Asia has also shown rapid
growth increasing by 26.7%, particularly China where numbers in 2013
increased by 96%. Eastern Europe is also increasing significantly, with
growth almost doubling year on year, especially from Russia and Poland,
the Ukraine market has dipped due to recent events, but we expect this
to recover quickly once resolved. The Australian market is also showing
healthy signs of growth, although smaller in percentage terms, increasing
numbers of tourist arrivals totaled over 55,000 during 2013.
These market trends have a significant impact on designs, product
offerings and how we do business. With the total Sri Lanka tourist arrivals
in 2013 exceeding our expected target of 1.2 million, this represents
a 26.7% increase over 2012 which is good reason for confidence.
Receipts from tourism continue to grow, now exceeding USD 1. 2 billion
which further strengthens the industry’s claim that it is a key area of
growth in the post-conflict economy. Given the strong growth outlook
for international tourism in the years ahead, the government has been
prudent in focusing on the development of infrastructure and stimulating
investment, construction and transportation.
Sri Lanka has targeted 2.5 million tourist arrivals by 2016, which will
generate annual revenues in excess of USD 3 billion; whereas at
present graded hotels can cater to approximately 900,000 guests with
approximately 15,000 rooms. So it is crucial for the industry to build
capacity of the quality that will attract the higher yielding tourist segments.
This presents interesting investment opportunities.
We are currently developing the Anilana Dambullla Country Club
which is in the advanced stages of construction. We will add a number
of custom designed private villas shortly to the hotel facilities that are
already under construction. We are also well underway with construction
in Panichchankerni, where several of fifty villas are currently nearing
completion. Acres of pristine curving coastline in many other locations
along the east coast of Sri Lanka await development plans, as we look
not just to build hotels, but entire communities. Each property is being
built using the best quality materials, featuring luxurious rooms and
spacious general areas, equipped with the latest technology. Anilana
aims to making each visitor feel special and is therefore committed to
developing our human resources to their fullest potential to achieve this.
Performance
With 130 rooms in operation in Pasikuda and Nilaveli, with an
additional 54 rooms coming on line shortly in Dambulla, Anilana is well
on its way to establishing and building its unique brand of hospitality
around the country, all in strategic locations. With the development in
Panichchankerni well under way, with plans to finalise the construction a
70 room hotel with 9 suites, we look forward optimistically to the future.
At time of writing, funding is now being finalised which will allow us to
break ground on the exciting Anilana Colombo project, which has been
brought forward in plans.
With our acquisition of new property and value addition from construction
of hotel facilities, total Assets have increased from LKR 4.9 billion in 2013
to LKR 5.5 billion in 2014. Anilana successfully listed its shares on the
Colombo Stock Exchange (CSE) through an oversubscribed IPO and
became the first to list in the last 2 years. The confidence placed in the
company and its vision by investors is indeed heartening and strengthens
our resolve to continue creating special places to stay in and around the
country.
Acknowledgements
I extend my sincere appreciation to the Board of Directors for remaining
faithful to executing the plans envisaged for the company. I wish to
place on record my appreciation of our management and staff for their
unstinting support, hard work, enthusiasm and skill in getting several new
properties ready to open our doors for business. Thank you also to our
customers for their patronage and kind comments, to tour operators for
their support and partnership. Finally, I thank you, our dear shareholders,
for the trust and confidence placed in the company to deliver the benefits
of Sri Lanka’s emerging potential in tourism and property development.
Anilana’s focus
Our focus remains the same with Anilana owning ten properties located in
some of the most picturesque locations around the island. We are aiming
to become an integral part of Sri Lanka’s bourgeoning destiny as a mustvisit holiday destination. Anilana Pasikuda took in its first guests in May
2013, with Anilana Nilaveli opening to the public in April 2014, both hotels
have received positive acclaim already, from industry specialists, local
community, international guests, diplomats, senior government officials
and even from members of European royal families who have enjoyed
their stay in our hotels.
Peter Amerasinghe
Chairman
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A new era of growth
W
ith two hotels now operating successfully on the east coast of Sri
Lanka and a third currently under construction in Dambulla; we have
been busy over the past year consolidating our position as one of Sri
Lanka’s youngest and newest hospitality brands. Together with Anilana
Craigbank Nuwara Eliya and the four exclusive Villas currently under
construction on our Panichchankerni site, growth within Anilana Hotels
& Properties PLC remains solid on target, consolidating our position as
a credible and professional hospitality brand. As we evolve, our core
value remains the same: everything we do either enhances or harms the
reputation of our young brand and we remain committed to enhancing our
products and the quality of our service delivery. We previously defined our
corporate strategy and goals which also remain the same, we want to be
preferred: as an employer by our associates, as a hotel by our guests and
as a shrewd investment by our shareholders.
Central to our marketing strategy, is focus on building our brand name.
Whilst our corporate strategy focuses on the development of the unspoiled
east coast, we recognize traditional marketing practices are changing,
with a broader base of buying choices, the way companies sell products
is evolving, especially with internet based business. Looking beyond
traditional markets, such as europe and India, we see great potential
from China and Russia. We are positioning our brand carefully, directing
ourselves to guests who are interested in quality accommodations,
delicious food and thoughtful services. Anilana Spas have been
carefully designed to provide luxurious and indulgent treatments which
compliments the image of our hotels. Interesting packages have been
developed to attract special interest travellers including themed weddings,
special events, cultural adventures, photosafari’s for nature lovers, ocean
activities such as luxury sailing, whale watching and diving expeditions to
augment the traditional sun worshipping trip.
Continuing to receive positive recognition from guests and dignitaries alike,
we were very proud to receive a highly prized “Certificate of Excellence
2014” for Anilana Pasikuda in only the first year of operation. This accolade
was awarded by Tripadvisor, the benchmark industry specialist in collating
consumer feedback. This was awarded for our consistently high guest
ratings which have been received for the hotel. Since winning this award,
guest feedback remains very encouraging, with a positive rating at slightly
less than 90% which is a tribute to the hard work and dedication of the
hotel team.
Anilana Nilaveli has also confidently entered the market, opening in April
2014. That hotel has already created a positive impression, earning high
ratings from customers who have experienced the warmth and friendliness
of the hotel team. Tripadvisor posts positive guest ratings exceeding 90%
at time of writing, with special recognition being given for design, food
quality and the hospitality of our hotel team. We know that our business
is about making people happy and we are delighted to be recognised for
this. Anilana strives to provide a positive “memorable experience”, whilst
consistently delivering high quality products which have been carefully
priced to allow a fair profit, but also a positive guest perception of cost
versus value. We have received some occasional negative feedback
concerning high menu pricing, but our use of organic, sustainable sourced
ingredients and fresh produce which has been picked at the peak of harvest
generally provides superior quality, which has also been commented upon
much more frequently.
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Our aim is to provide a positive, memorable experience for our guests, but
also positive growth for our company and above average profitability for
our shareholders.
The central theme of our corporate strategy remains the same, to exploit
our comparative advantage of owning large blocks of land in prime
beachfront locations, in addition to these properties, we also are looking
to develop our prestigiously located property in Colombo, which moves
forward in our growth planning. Other opportunities are also currently
under consideration for acquisition in several prestigious locations to
improve our distribution and potential for customised vacation packaging.
Our mission over the next five years is to continue building our network
of successful and competitive hotels, as well as to develop a range of
exclusive villas. Anilana highly prizes originality and our team focuses on
developing new ways of doing things, incorporating new technologies,
improving workflows, simplifying traditional systems and taking advantage
of opportunities which positively impact our bottom line. Dedicated to a
concept of combining luxury, sensible design, discrete service, intimate
seclusion and rejuvenation, we want to surprise and delight our guests,
whilst generating profitability for our shareholders.
As the recent global economic crisis recedes, opportunities for developing
international tourism remains strong for Sri Lanka, we continue to see
growth in the numbers of visitors to the island as well as increases in
their average spend. As the world continues to market exciting holiday
destinations, Sri Lanka remains an exotic and highly desirable option
for many, with increased interest from traditional european markets, but
also much increased interest from markets such as India, China and
Russia. We are fortunate that this happens to be one of the few remaining
opportunities to develop a new tourist destination around the Indian Ocean,
one of the world’s most attractive holiday locations. Anilana recognises a
strong need at the national level to position Sri Lanka as a “must visit
destination”. We want to create opportunities of “unique differentiation”
that would attract foreign national travellers who have attractive alternative
options when selecting their international tourist destination. Tourism in Sri
Lanka has matured considerably in recent years however it is clear that
the challenge ahead is to sustain and nurture this growth with a focused
national Tourism Plan designed to attract the more affluent segments of an
increasingly demanding international market.
Our commitment to shareholders remains strong, we are developing Brand
Anilana to become known as stylish, unique, contemporary and profitable.
When we combine these attributes with our unique blend of Sri Lankan
hospitality, we are confident this will distinguish us from our competitors.
Our team has proven capable of delivering consistent, gracious service
and providing warm and friendly hospitality for all our guests. We believe
our role to be about providing comfort, quality and a unique, memorable
experience, it makes the difference for our guests and we constantly strive
to serve our guests better.
TREVOR BURTON
Chief Operating Officer
As the recent global economic crisis
recedes, opportunities for developing
international tourism remains strong
for Sri Lanka
A new era of growth
Chief Operating Ofﬁcer
Message
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Mr. Peter Amerasinghe is a Fellow Member of the Chartered Management
Institute of United Kingdom. He is an accomplished professional with more
than 45 years of senior managerial experience that includes 15 years in
Plantation Management and 17 years as Chief Executive Officer of Lanka
Walltiles PLC from its inception. Mr. Amerasinghe is a founder Director of
Lanka Tiles Ltd, (now Lanka Floortiles PLC) ; and is on the Board of Directors
to date.
Mr. Amerasinghe is currently the Chairman of Aristons (Pvt) Ltd and is a
Consultant to Noritake Lanka Porcelain (Pvt) Ltd. He also established
Ceyquartz MBI (Pvt) LTD, a joint venture with Japanese collaboration, of which he is the Chairman and Managing Director. He has
considerable experience in the management of export oriented
manufacturing organizations and marketing of its products both locally and
internationally.
Peter Amerasinghe
Chairman
Ms. Manjula Seneviratne is co-founder of Anilana Hotels and Properties
Limited and has held the role as Non-Executive Director since the
company was formed. In addition to her Anilana role, Ms. Seneviratne serves as
Executive Director of Ceyquartz MBL (Pvt) Ltd, a joint venture she
co-founded with Japanese partnership in 1996, which was established as
a BOI Company. Ceyquartz is firmly established as an industry leader in
the production of high purity silica quartz for the semiconductor industry,
holds ISO 9001 certification and exports products to Japan, Singapore,
Malaysia, Thailand and Korea. The company has won numerous Export
Awards from the Natonal Chamber of Exporters, most recently receiving two
awards at the National Business Excellence Awards (2010).
Ms. Seneviratne completed her secondary education at Bishop's College,
Colombo (1977-1989), before successfully graduating with her GCE Advance
Level (Lon) at Colombo International School (1989-19991). To complete
her academic studies, Ms. Seneviratne accepted a place at the University
of Aberdeen in Scotland, where she became an MA Graduate (1995) in
Economics and Management Studies.
Manjula Seneviratne
Director
In addition to his role as an independent Non-Executive Director
of Anilana Hotels and Properties Limited, Mr. Gamini Benedict
Wikramanayake is a Fellow Member of the Chartered Institute of
Management Accountants of the United Kingdom (CIMA), and a
Fellow Member of the Chartered Association of Certified Accountants of
Sri Lanka. With an accomplished background of over 30 years senior
managerial experience, he has held positions as Managing Director of
Management Systems Ltd, Chairman and Managing Director of Three Acre
Farms Ltd, Chairman of Ceylon Oils & Fats Corporation and also as the
Director Management Services for the Ministry of Public Administration and
Government of Ceylon.
Gamini G Wikramanayake
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Director
Currently Mr. Wikramanayake is an active investor in the Sri Lankan Stock
Market. He holds a Masters Degree in Business Administration from
the University of Western Ontario, Canada and has previously held
a number of prestigious posts including: Chairman of the Bank of
Ceylon, elected President of the Sri Lanka Institute of Charted Accountants
(1976-1977), Management Consultant to the Maharaja Organization
(since September 1995), Secretary – Ministry of Public Administration,
Home Affairs & Local Government; Additional Secretary - Ministry of
Public Administration, Home Affairs & Local Government and Secretary –
Administration for the Ministry of Finance.
Board of Directors
Mr. Asanga Seneviratne is the founder of Anilana Hotels & Properties
Limited, spearheading the launch of the “Anilana” brand, which he owns. He
is also a Non-Executive Director of Nation Lanka Finance PLC.
Mr. Seneviratne was previously a director of Taru Villas Holdings (Pvt) Limited
where he was instrumental in developing the hotel chain of Taru Villas, as
well as being a Director and Chief Executive Officer of Asia Capital PLC,
a public quoted Company on the Colombo Stock Exchange (since 1994).
Mr. Seneviratne was previously Managing Director of Asia Securities (Pvt)
Ltd, and Chief Executive Officer of Asia Capital Ltd. He has also served as
Chairman of the Stock Brokers Association of Sri Lanka (2005/2006), and is
currently a Director of the Colombo Stock Exchange.
Mr. Seneviratne pioneered on-line trading in Sri Lanka through
Investor Access Asia (Pvt) Ltd with CDAX, the first on-line trading system in
Sri Lanka, enabling direct access to the Colombo Stock Exchange for the
first time, directly from the clients' personal computer.
He has been involved in key capital market and private investment
deals that have taken place in Sri Lanka over the last 20 years,
promoting many Direct Investments in Sri Lanka from large Foreign
Institutions such as Credit Agricole-Indosuez W.I.Carr, Regent
Fund Management, Auerbach Grayson & Company. As well as high
net-worth individuals such as Dr. Sena Yaddehige and S.K. Tiog
(Malaysia). He has been instrumental in promoting many investor
conferences in Sri Lanka. With more than 20 years of extensive finance
and investment experience with Asia Securities and Asia Capital, together
with his experience within the hospitality industry, Mr. Seneviratne is
well equipped to lead the emerging Anilana Group of Companies and
successfully achieve their progressive business and expansion stratergies,
building a new and profitable brand which is quality driven.
Asanga Seneviratne
Managing Director
In addition to his many business achievements, Mr. Seneviratne has
enjoyed a great passion for sport since his school days, when he studied
at St. Thomas' College Mt. Lavinia. Accomplishments include previously
captaining Sri Lanka's most famous Rugby Football Club; CR & FC (1987),
and serving as the National Coach for the Sri Lankan Rugby 7's team (2000
to 2003). Mr. Seneviratne also currently serves as President of the Sri
Lanka Rugby Football Union. In addition to his achievements in Rugby, he
also was Captain for the prestigious Colombo Cricket Club (1994-1996),
and has served as Vice President of the Sri Lanka Cricket Board. He also
represented Sri Lanka Rugby and Under 23 Cricket teams.
Joining the Board of Directors with effect from 22nd May 2013 as a Non
Executive Director of Anilana Hotels and Properties Limited, Mr. Ajahn
Punchihewa is also the Chief Executive Officer and a Board Director of
Nation Lanka Equities (Pvt) Ltd and a member of the Colombo Stock
Exchange.
Mr. Punchihewa pursued his higher studies in the UK, where he obtained
his BSC (Hons) in Finance, Accounting and Management graduating from
the University of Nottingham.
On his return to Sri Lanka Mr. Punchihewa worked for Asia Securities (Pvt)
Ltd, another leading investment bank, prior to forming TKS Securities (Pvt)
Ltd, a Malaysian owned licenced stockbrokering house in October 2010.
NLE formed a strategic alliance with foreign fund/wealth management
companies, world-renowned research/media firms and other local and foreign high net worth clientele.
Ajahn Gardiye Punchihewa
Director
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Corporate Management Team
Mr. Asanga Seneviratne is the founder of Anilana Hotels
& Properties PLC and in his role as Managing Director; he
spearheads the company’s positioning, strategic direction and the
overall development of the “Anilana” brand, which he owns.
The management team has been set up in a highly collaborative matrix
structure with direct reporting relationships to the Managing Director.
In his role Mr. Seneviratne is the overall guiding influence within the
company, overseeing the key functions of corporate development,
investment and investor coordination, financial resourcing, resource
allocation and the sustained growth of the company.
Asanga Seneviratne
Managing Director
Also an Associate Director of Anilana Hotels and Properties
Limited, in his role Mr. De Zoysa is responsible for managing the
preopening construction budgets, construction schedules and project
management for hotels and properties under development.
Working closely with the Managing Director, Chief Operating Officer,
Architects, Consultants, Interior Designers, Construction companies
and Contractors, he is responsible for sourcing development
locations, coordinating construction schedules and budgets, overall
coordination of project management issues and coordinating with
service providers and surveyors.
Gihan De Zoysa
Head Of Technical Services
As an Associate Director Mr. Jayatileke provides guidance in
managing logistics, materials management, human resources
activities, hotel security and safety as well as playing a key role in
government liaison.
Mr. Jayetileke is an accomplished and retired Wing
Commander of the Sri Lanka Air Force, who retired after a
distinguished career of 22 years of service to the nation, he joined
the private sector in 2007.
Nalin Jayetileke
Associate Director
10
Mr. Trevor Burton is an established and committed hotel veteran with
global hospitality experience in operations throughout Asia. He is
responsible for the day to day management of the company and
focuses on design and operations.
Mr. Burton is the principal arctitect of Anilana’s hotel planning,
conceptualization, design, product development, operating standards
and service delivery. His focus permits Anilana to maintain brand
clarity and preserve standards once established. Besides overseeing
the planning and preparation of hotel openings and operations, Mr.
Burton guides marketing, sales, human resources management and
overall product and brand development.
Trevor Burton
Chief Operating Officer
A Member of the Chartered Institute of Management Accountants,
United Kingdom, and an accomplished finance professional of more
than 15 years, Mr. Perera is well experienced and equipped for his
role as Head of Finance & Compliance for the Anilana Group of
Companies.
In this role, he is responsible for creating detailed and accurate
financial reporting, maintaining strict internal controls, as well as a
comprehensive framework of policies and procedures that ensure
fiscal responsibility. This is key in allowing us to achieve our goal
of sustaining profitability. He is also responsible for ensuring full
corporate governance and compliance within the company.
Manjula Perera
Head Of Finance & Compliance
Ms. Philips has played a significant role in promoting and positioning
Anilana, providing solid sales experience to build our customer base
and develop strong brand awareness.
Ms. Philips is actively pursuing new business opportunities on behalf
of the company, whilst building strong allegances with operators and
industry spercialists to develop existing business levels of Anilana
Hotels in both local and overseas markets.
As part of our overall marketing strategy and product development,
Ms. Philips has been deploying the necessary tactics to help
develop an awareness of Anilana destinations and promoting our
brand, with a particular focus on the importance of the emerging
east coast as a major tourist destination. Passionate about
marketing, Ms. Philips is focusing on the pristine coastline of the east
coast of Sri Lanka, to new and emerging markets, especially to the
needs of the more up market traveller.
Shamila Philips
Sales & Marketing Manager
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Pasikuda
A
lready in operation since May 2013, Anilana Pasikuda has received positive accolades from guests and dignitaries alike, a winner of
TripAdvisors Certificate of Excellence 2014, the hotel has firmly positioned itself with a reputation as a consistent, high quality and friendly
hotel. This hidden gem is discretely located away from the crowd on Pasikuda Bay, the beach leads to shallow, pristine waters that are
surrounded by a coral reef making this a safe place for children and families who can wade out into the ocean for 200 meters in safety.
Dramatic views from the main entrance through the lobby, past the long swimming pool and to the ocean provides a strong design statement
from your arrival. Carefully designed as a secluded, intimate and luxurious retreat we have used natural elements during construction to merge
modern design with the natural beauty of the environment. All of our stylish, oversized rooms have breathtaking views of the Indian Ocean
and we encourage guests to laze around our pool whilst enjoying our thoughtful and attentive service, permitting them to relax and rejuvenate.
Taking time to enjoy the exhilarating freedom of doing whatever they want, whenever they want, we project Anilana Pasikuda as a tropical
heaven, a “touch of paradise”.
Our Chefs take advantage of the abundant fresh seafood to create tantalising dishes for guests to taste, whilst Bartenders prepare tropical
drinks and cocktails to cool and refresh. Our warm and friendly service team work hard to make sure those who prefer a quiet retreat or a
lively holiday all leave with a smile and fond memories of Anilana hospitality. The Anilana Pasikuda team are dedicated to providing attentive,
thoughtful service for guests of Anilana so they can experience and enjoy Sri Lankan hospitality; whilst our technical team have created a future
proofed infrastructure that ensures our guests can enjoy use of their modern devices through our state of the art, fibre optic delivered technology.
Resident guests enjoy complimentary high speedwifi internet connectivity, cable TV, music, video and digital telephones all delivered on one
digital IP platform. Our systems have been designed to ensure our guests can keep up with news, stay up to date, remain in touch with the
outside world and watch movies and live sport, of course they could also simply turn it all off and get back to some serious relaxation.
Facilities at the resort include 60 rooms including single, double & duplex chalets, a hotel lobby bar and restaurant, a beach bar and restaurant,
with an extensive spa & gymnasium currently nearing completion.
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Anilana
Pasikuda
13
Nilaveli
O
pen since April 2014, Anilana Nilaveli is located on the quietest part of one of the best beaches in the world. This stylishly designed resort is an intimate and luxurious
escape for guests to relax and enjoy luxury, good food and the natural beauty of the surrounding environment.
All of our rooms and suites are comfortably furnished and have breathtaking views of our tropical gardens, swimming pools or directly of the Indian Ocean. We encourage
guests to laze around one of our two swimming pools, enjoy thoughtful and attentive service, take in wonderful views from our roof top bar or simply take some time to relax,
breathe and enjoy. A large Anilana Spa is currently nearing completion and will open shortly with treatment rooms, hydrotherapy, steam and sauna and a gymnasium to work
off the calories consumed in the restaurants.
This is a tropical paradise retreat, where our Chefs create tantalising dishes taste, comfort food or fine dining options are readily available and the abundance of fresh seafood
allows us to provide something extra special. Cheerful and skilled bartenders prepare cocktails and tropical drinks to cool and delight, whilst our warm, friendly and attentive
service team work hard to make sure those who prefer a quiet retreat or a lively holiday all leave with a smile and fond memories of Anilana hospitality.
Resident guests enjoy complimentary high speedwifi internet connectivity, cable TV, music, video and digital telephones all delivered on one digital IP platform. Our systems
have been designed to ensure our guests can keep up with news, stay up to date, remain in touch with the outside world and watch movies and live sport, of course you can
also simply turn it all off and get back to some serious relaxation.
Facilities at the resort include 70 rooms & suites, a lobby restaurant & bar, an intimate and high quality grill room restaurant, large verandah for al fresco dining, 2 large
swimming pools leading to a casual beach bar & restaurant and on the roof we have our Roof top restaurant with amazing views of the Indian Ocean and surrounding areas.
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Nilaveli
Anilana
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“amazing staff and great food”
We stayed at Anilana Nilaveli during it’s soft open period in May 2014 . It was a fantastic stay!
Even though the resort was not fully operational at that point the staff were so attentive to our
every need. The food - personalised by the chef and his staff- was also amazing, creating all
kinds of delicious sri lankan meals for us ( the best of our trip actually). The pools were also
nice - a little warm but long enough to do laps in of a morning
themindfultraveller
Sydney, Australia
“a touch of paradise....”
Our Stay in Anilana Nilaveli was very, very great. We came here traveling with our backpacks and wanted to stay for
7 days because we wanted to relax at the beautiful Nilaveli beach. (we stayed longer cause we didnt want to leave).
At first i have to thank the staff for beeing so kind and helpful all the time!
The guys from the service team are really great and do a really good job. They are always friendly and kind, even if
they are in a hurry, they ll also do the best that everyones stay is completely perfekt. Also the poolboys are working
very hard, they keep the whole area clean and also managed to bring the people fresh towels, and arrange the
sunbeds individual how the people wanted them and they are always friendly too. The housekeeping staff was
always very discrete and clean, always got enough water and towels The guys from the reseption where very kind
too. Nothing was a problem to arrange and they tried to figure out the best deal for their guests.
Angelika B
Bludenz, Austria
The Hotel itself is very modern, very clean but also cozy and stylish. The suites are very big and the sleeping comfort
is amazing! Bathrooms are new and very cool, the whole room is cleaned twice a day. The food is really tasty and
you can have anything you want. The chef came to us and asked us if we had a special wish when we arrived. There
is always a great choice of food and beverages. (great ICE TEA) The whole area is stunning. The pools are very cool
and at the beach there is a area with sunbeds. very cozy. The beach is simply perfect for bathing and long walks.
For snorkeling they do trips to pidgeon island ( takes 5 minutes by boat to get there)
We thank the whole staff for giving this very cool place a touch of paradise :)
One of the best places to relax !
“Best holidays in years”
We stayed as a family for 3 night at this amazing resort and loved every bit of it. Spa is under
renovation but as per them its due to open in august.That would be a lovely addition to the
resort.
The beach is one of the best beaches in the world that i have seen.
Staff are very friendly from check in to the resort, the food was muahh !!!
steven b
London, United Kingdom
Thank you Anilana !!!!
91%
Ranked #1
of 3 hotels in Nilaveli
16
Nilaveli
Anilana
“Top class hotel and staff”
We stayed at the Anilana for 4 days in August. The hotel, food,rooms, pools and gardens are first class. All the staff
are very attentive and the Hotel Manager, Operations Manager and the Head Chef were very active in ensuring
guests were having a good time and were happy.
The beach is fine really, the broken coral is not a massive problem, and if you use the walkway you can get to swim
in the sea without treading on any sharp coral.
Overall, a fantastic hotel made all the better because of the senior management commitment to their guests.
garycoyle
Kent
“First time on the east coast but not the last time!”
The warmest of welcomes, and faultless service and attention to detail from the 2 managers,
Apinash and Tushara. All the staff were extremely friendly with the children, indeed they were
treated like little princes. The hotel has an intimate feel as there are not 100s of rooms, so
access to the pool and sun beds is not an issue.
kandelama
Luxembourg
The loft room was ideal for our family of 4 (kids need to be age on stairs) We had cooking
lessons. Pizza for the boys and pork curry and aubergine curry for us. Great fun. Sailing trip to
elephant rock is also to be recommended. The ocean is warm and full of fish.
All in all this is what we expected and even more. The warm greeting you get from the managers
& team , restaurant chef and his team are making this a truly exceptional experience we hope
to find again when we come back.
A big thank you to anilana.
“Good option in Passikudah”
I stayed here for two nights. The room was over looking the beach. It was very peaceful and a really good size. The
pool is beautiful with a great view over the sea. It is true that the beach isn’t great with quite a lot of coral around but it
is still possible to go swimming. The staff were really friendly and went out their way to make sure we had everything
we needed. I would recommend staying here.
Katie G
Geneva, Switzerland
Pasikuda
Anilana
17
Craig Bank Nuwara Eliya
L
ocated on the borders of the historic Nuwara Eliya Golf Course is Anilana Craigbank Nuwara Eliya, our most intimate retreat. Situated in
the heart of the town, this romantic and secluded four bedroomed villa is a rare and memorable throwback to a bygone era. Designed with
Art Deco style features, this comfortable private residence provides a welcome retreat from everyday life. Our dedicated staff provide warm,
friendly and bespoke butler-style service, pampering our guests and ensuring all the comforts of home. Within spacious gardens, the villa enjoys
wonderful views and is very private. It’s colonial feel and art deco style ensure the villa is intimate and special treat to enjoy. The true luxury we
offer at Anilana Craig Bank Nuwara Eliya is a peaceful, stress free time and your our space to recharge and rejuvenate.
Facilities at the resort include four spacious bedrooms, each with king sized beds and private bathrooms, a drawing room/lounge with open
fireplace, private TV room, elegant dining room and a large well equipped kitchen with adjoining laundry room. Our spacious gardens & large
verandah provide an insight into plantation style living and there is ample car parking available. Gin & Tonic our labrador retrievers welcome
you and enjoy your company.
18
Anilana
Nuwara Eliya
19
Dambulla
T
his large and beautiful property is a site of almost 40 acres complete with flourishing flora, fruit orchards and an abundance of tropical plant
life. This fertile land is a sanctuary for many species of Sri Lanka’s bird life and is situated directly on the main Road connecting Dambulla to
Colombo. Wonderfully located only a few minutes drive from the centre of Dambulla, the hub connecting the west and east coast, the property
is within thirty minutes drive to Sigiriya, a world heritage site. It is also only a short distance further, from cultural cities such as Anuradhapura
and Pollonnaruwa. The Knuckles mountain range of Matale is only a short distance from the town center of Dambulla, which makes this an
interesting cultural triangle destination in its own right, as well as being a crucially important mid point for travelers, journeying between the
western and eastern coasts, which is important from Anilana’s perspective.
Anilana Dambulla Country Club and Spa will follow an equestrian theme, featuring horses, show jumping and a professional riding school.
The main building is designed as an old English style country manor with large rooms and larger suites. In the surrounding buildings, we have
secluded riverside chalets and split level family lofts, which will make this a highly flexible hotel for small groups and large families.
Phase two of development includes development of custom designed large and unique villas ranging from compact 4 bedroom units to spacious
and sophisticated 8 bedrooms units all with magnificent views and which will be sold to individual investors. These can become part of the hotel
inventory on a profit share basis if preferred. The site is boarded with a stream running along a thick green reservation providing ample water
supplies for maintaining horses and the terrain of the site provides various spatial impressions which will be developed to hold impressive water
feature and spatial tropical gardens. The shrub jungle and the shady trees make aforeground for the mighty mountains at the background which
will provide a genuine country club ambience and the roadside border of the site will be developed to become high quality roadside food and
beverage and retail opportunities. Facilities at the resort include a main building and river side chalets totalling 54 rooms & suites, including
eight lofts idea for families. Our two swimming pools, spa and gymnasium provide relaxing options to work off the calories consumed in two
high quality restaurants & bars. With our own stables and horses, the equestrian lovers can enjoy country club riding activities fatherly available
in Sri Lanka.
The third and final phase of development of this property includes road front retail, shopping and restaurant development.
20
Anilana
Dambulla
21
Colombo
P
erfectly situated with an ideal central location on Galle Road Colombo,
this will be a multi purpose, high rise building with a unique, top floor
lobby providing stunning city and ocean views.
The sleek glass façade of the building will contain high quality retail shopping,
busy and stylish restaurants, multi purpose banqueting facilities and several
floors of corporate office space. The hotel component will be designed to
feature rooms and suites with diffrent room configurations which will appeal
to both business and lesiure travellers.
The development will also include a city spa, banquet facilites, meeting
rooms and modern style restaurants which feature authentic asian, western
and international cuisines. The sky bar will provide stunning views of the city.
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Anilana
Colombo
23
Panichchankerni
I
nitially consisting of several different, adjoining plots of land, Anilana has purchased these and consolidated them into one large, incredibly
beautiful, prime beachfront location, which will become Anilana’s largest and most ambitious project to date: a totally integrated eco-friendly
resort village.
Geographically connecting two separate beaches and incorporating Anilana’s beautiful Selladiv Island site, this community will be developed
in several phases, eventually incorporating a collection of elegant, custom designed luxury villas as well as a 70 room boutique hotel with well
designed, oversized rooms. An independent residential Spa and watersports facility will be a main feature of the central village, which will be
designed to be the focal point of the community, consisting of landscaped public areas, water features, a village main street with restaurants, bars,
a large delicatessen and essential shopping. On an adjoining area of the resort will be a collection of smaller, but equally well-designed units built
and equipped to five star standard which will be for sale and for rental. This village will also feature additional restaurants, bars and public areas
for the residents to enjoy.
Located within easy travelling distance from both Trincomalee and Batticola this idealic location is un-tapped and will provide an ideal getaway
from the commercial capital of Colombo. Our designs are being developed to ensure we are respectful of the outstanding natural environment and
this will be a totally eco-friendly resort. Facilities at the resort include a main building with 70 rooms & 8 suites, exclusive residential villas, a village
concept containing restaurants, bars & retail, a large and luxurious spa facility, health centre, gymnasium, beach club & resort activities centre.
This will also include a small meeting room and banqueting facilities to cater for wedding and special occasions.
24
Anilana
Panichchankerni
25
Selladiv Island
This island site of lush green mangroves is surrounded by a living coral reef and will be developed as part of the Panichchankerni
integrated resort. It will however, be an exclusive level component with a stand alone collection of world-class water bungalows
which have been positioned over the reef without disturbing its natural environment. Designed to appeal to international tourists
interested in eco-friendly holidays in natural surroundings, these units will be large, feature indoor, combined with outdoor living and
be very stylish, appealing to a highly lucrative market.
Buildings and pathways on the island will be raised, in order to minimize the disturbance to our natural surroundings and to preserve
and protect the fauna and flora. These bungalows have been designed with luxurious indoor areas as well as spacious outdoor
living spaces, to enable residents to feel close to the environment and enjoy the ocean and tropical weather.
Materials used for construction will consist of natural materials to a high degree and will allow us to blend man made structures with
nature. Facilities at the resort will include 24 exclusive, oversized water bungalows, 10 luxurious island suites, a Lobby lounge with
a private restaurant and island bar. Spa facilities, water sports & diving center will be a short walk away on the main land, as part
of the Panichchankerni integrated resort development.
26
Anilana
Selladiv Island
27
Trincomalee Blue Lagoon
W
onderfully positioned, this superb property has been blessed with an ideal location. Featuring a large, wide and
scenic beachfront with perfect white sand and pristine waters, overlooking the Indian Ocean with a spacious fresh
water border connecting the beachfront with banks of a scenic river. This is the site for the future Anilana Blue Lagoon, a
hotel, spa and villa complex which will maximize the advantages of almost 12 acres of prime land. Owned by Blue Lagoon
Resort (Pvt)Ltd, a subsidiary of South Asia Asset Management (Private) Limited, which is a fully owned subsidiary of
Anilana Hotels & Properties PLC. This property was acquired in January 2006.
Situated a short distance from Anilana Nilaveli and only a few kilometers from the centre of Trincomalee town, this site
includes a wealth of fully grown trees, valuable in aryevedic medicine which provides the inspiration for a large, luxury
Spa. Plans include a 70 + bedroom hotel, built up over four floors to ensure fabulous ocean views from every room.
Residential villas will be developed, ranging from 4 to 8 bedrooms, with unobstructed ocean views and surrounded with
tropical gardens to provide privacy and intimacy.
An ideal location for river and sea sports, the design concept of this hotel will be to attract those wanting a healthy,
relaxing luxurious retreat, with convenient access and will appeal to families, as well as those who are interested in active
and indulgent beach and water sports.
28
Anilana
Blue Lagoon
29
Vakarai
O
ur Vakarai property is one of Sri Lanka’s most beautiful beach locations.
Anilana Vakarai will be positioned on approximately 24 acres of prime
beachfront land and will be configured to ensure that all rooms and villas enjoy
magnificent views of the Indian Ocean. With a pristine, unspoiled and totally
secluded beach, this is rated as one of the most beautiful and desirable natural
locations on the east coast of Sri Lanka.
This perfect setting will become Anilana Vakarai a stunning, luxurious multi
purpose development which includes several spacious and well designed
beachfront villas, clusters of environmentally friendly beach homes and a
sophisticated beach hotel with bars, restaurants and 80 to 90 spacious rooms.
The completion of a luxurious spa and gymnasium complex will complete the
resort to ensure this is a complete, self contained and integrated resort, which
focuses on blending modern comforts, with the great natural beauty of the
surroundings.
Attracting those discerning, high spend guests who are looking for new exotic
upmarket destinations, plans for a marina and ocean oriented activities may
appeal to those who expect more than is usually available, and for marine
adventure seekers.
30
Anilana
Vakarai
31
Kalkuda
T
his is a long stretching bay which is totally secluded, unspoiled and unbuilt up. The beach has a rare, fine white sand with clear
waters. The surrounding plantations of mature coconuts provide an ideal peaceful ambience for a tropical beach hotel. Located
close by to the more built up Pasikuda Bay this location provides a more secluded, exclusive and upmarket retreat, but still retains the
advantages of its close proximity to surrounding hotels and restaurants. Our beach front property is situated at the most prominent
location of the bay and this is truly, one of Sri Lanka’s most beautiful beaches.
We plan to develop Anilana Kalkuda as a luxurious, eco-friendly intergrated resort, designed to focus on comfort, seclusion and privacy.
There is plenty of surrounding area for the development of spacious villas with panaromic beachfront opportunities, which will have the
advantages of the hotel services and social support. Villas will be designed to combine indoor and outdoor living. With high ceilings and
the use of natural building materials these will be sophsitcated, modern but also naturally cooled, with indoor/outdoor living spaces,
eco-friendly systems and equipment and individual swimming pools.
In another area of the resort, clusters of environmentally friendly beach homes will be designed with the showpiece of the site being a
sophisticated and luxurious hotel and spa.
This highly desirable destination of pristine, unspoiled and totally secluded beach will become one of the highest rated and most
exclusive holiday destinations on the east coast of Sri Lanka. Plans include the possible development for yachts and boats, attracting
those discerning, high spend guests who are looking for new exotic upmarket destinations and ocean oriented activities.
32
Anilana
Kalkuda
33
Management Discussion & Analysis
34
L
ast year some significant measures taken by the Government have
helped the tourism industry at large. With the country continuing to reap
the benefits of the peace dividend, several strategic investments in terms
of infrastructure development and leisure came into Sri Lanka triggering a
considerable boom in the leisure sector, pushing the stakeholders to expand,
initiate new ventures, and launch mega promotional campaigns. As a result,
significant numbers of tourists arrived in Sri Lanka during 2013/14.
Tourist arrivals in 2013 surpassed the initial target of 1.2 million to record 1.27
million arrivals, a growth of 26.7 per cent over the previous year, Central Bank
of Sri Lanka quantified in its recent annual report. In addition, developments
in infrastructure facilities such as ‘Pura Neguma’ and the Katunayake
expressway have helped improve the first impression of tourists who arrive
into the country.
The Sri Lanka Tourism Development Authority (SLTDA) and other relevant
state institutions stepped up efforts last year aiming to reach the target of 2.5
million tourists by 2016. Promoting tourism development zones in Kalpitiya,
Kuchchaveli, and Yala were in the limelight opting for fresh investment with
a view to develop tourism on different themes and not forgetting the market
differentiation. Ippantive, Vellai and Uchchamuni islands were leased to three
investors and approval was granted by the Coast Conservation Department
to construct four water bungalows in Vellai Island as a pilot project.
Shangri-La Asia Limited, one of Asia Pacific’s luxury hotel chains as well as several other international hotel chains such as the Hyatt,
Movenpick, Marriott and Sheraton were under construction during the year and are expected to commence operations in Sri Lanka in the
near future.
Shangri-La Asia Limited, an investment holding company, which owns and operates hotels and associated properties worldwide. It operates
through three segments: Hotel Operations, Hotel Management, and Property Rentals. The company also provides hotel management,
marketing, consultancy, reservation, and related services; and owns and leases office properties, commercial properties, and serviced
apartments/residences. In addition, it is involved in real estate development and operation activities; operation of staff training academy;
ownership and operation of golf clubs; and property investment and office management activities. The company operates hotels under the
Shangri-La, Traders, Rasa, Summer Palace, Kerry, and Shang Palace brand names. As of December 31, 2013, it had equity interest in 62
operating hotels comprising 28,392 guest rooms.
During the 2013, Government granted the approval for 36 new hotel projects consisting of 2,547 rooms. All-in-all these projects are
estimated to exceed US dollars 372 million investment. Moving forward to promote the lesser known sites with potential for tourism
development areas Ampara, Gampaha and Puttalam districts were also identified. During the next few months these sites are expected
to be promoted in order to attract more tourists to the country, encourage more investment and generate direct and indirect employment
opportunities.
Rather concentrating mainly on the infrastructure development or adding more and more rooms fresh initiatives including the visits to
communities, and activities relating to farming, fishing, festivals, religious and cultural programmes, sports, bird watching and wildlife got
actively promoted. These were attracting more tourists
than conventional areas of leisure, which is offered
competitively in other parts of the world.
Sri Lanka Tourism the foremost authority in the island with
the ambition to promote tourism conducted important
promotional activities both locally and in different parts
of the world. During this period Sri Lanka’s first ever
mega joint promotional campaign, with the involvement
of public and private sectors named ‘Get SriLankan’ed’,
was launched in India followed by a high profile media
conference as well as B2B meetings bringing in travel
and trade under one roof. According to Sri Lankan
tourism authorities, the main aim of this campaign
was to position Sri Lanka as the most preferred travel
destination in emerging markets.
In addition, promotion campaigns were held in Russia
and other CIS countries as well as in emerging high
potential markets such as China.
35
The Sri Lanka Tourism Promotion Bureau participated in 35 travel fairs and exhibitions abroad during the year together with representatives
from the travel and tourism industry. Further, 72 media familiarisation tours were organised for journalists from 30 countries under the ‘Visiting
Journalists Programme’, which has proved successful in promoting the country. In addition, the private sector continued its promotional activities
by participating in international tourism fairs and hosting 33 finalists of the Miss France 2014 contest. Further, an exhibition titled ‘Reflection of Sri
Lanka’ and several organised tours were arranged for visitors to the CHOGM, enabling them to get an exposure of locations, attractions and Sri
Lankan traditions and culture, as per the Central Bank analysis.
Hence, all these programs and campaigns are expected to generate interest among conference organisers to consider Sri Lanka as a venue for
hosting international events and promote the country as a tourist destination among commonwealth countries. The way forward in the tourism
sector is to diversify the range of products to cater to different segments of the market.
Tourist Arrivals in 2013/14
Month
2013
2014*
% Cha. 2013/14
January
110,543
146,575
32.6
February
113,968
141,878
24.5
March
113,208
133,048
17.5
April
80,737
112,631
39.5
May
74,838
90,046
20.3
June
90,279
103,175
14.3
July
107,016
133,971
25.2
August
123,269
September
90,339
October
107,058
November
109,420
December
153,918
861,324
24.7
Total
1,274,593
Up to July
690,589
Tourist Arrivals & Occupancy
Tourist Arrivals & Occupancy
180,000
160,000
Number of visitors
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Source – SLTDA
36
2013
2014*
Tourist Arrivals by Region 2012 & 2013
Tourist Arrivals by Region 2012 & 2013
Europe
WesternWestern
Europe
421,037
373,063
Asia
SouthSouth
Asia
326,556
247,559
East Asia
East Asia
183,097
132,730
Europe
EasternEastern
Europe
125,695
72,401
North America
North America
65,616
59,236
Australasia
Australasia
2013
2012
60,836
57,776
MiddleMiddle
EastEast
80,509
56,169
AfricaAfrica
8,081
5,045
Latin America
Latin America
3,166
1,626
-
Source – SLTDA
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Tourist Arrivals by Country of Residence
2012 & 2013
Tourist Arrivals by Country of Residence - 2012 & 2013
TopFifteen
Fifteen
Countries
Top
Countries
250,000
Tourist Arrivals
200,000
150,000
2012
100,000
2013
50,000
0
Country of Residence
Source – SLTDA
37
Everything we do begins and ends
with our guest
We have developed a strategy which has been built on
providing clarity to our brand, maintaining consistency
between hotels (by developing brand standards),
equipping and organising ourselves to sustain future
levels of profitability and developing a strong manpower
development plan. We have positioned ourselves to focus
on the needs of our customer and provide the right products
services and delivery to targeted customer groups.
Anilana will sustain our anticipated growth, ensure brand
integrity and preserve our profitability, whilst working and
adapting in a changing market. Our aim is to consistently
deliver on our brand promise, attract new customers and
retain our current customers. To do this effectively we will
acquire, retain, develop and engage a motivated team of
professionals who are united in spirit and attitude, sharing
our passion for hospitality.
Corporate Structure
To ensure economies, we have centralised several of our
business functions in Anilana Centre, our corporate office
located in Colombo. This includes project management,
finance, compliance, legal, information technology,
reservations, sales & marketing, human resources,
technical services and purchasing; allowing us to minimize
our on site manning levels. On site hotel operational
teams directly focus on providing hospitality and satisfying
the needs of our resident customers. The role of Anilana
Centre has been aligned for us to support our four core
strategic needs of sustaining profitability, developing a
pipeline of trained manpower, brand clarity and maintain
the integrity of our brand.
Design, planning and preparation of
new openings
The senior management team takes a hands-on approach
to ensure that the technicality of the project is fundamentally
viable and that it is in compliance with our brand standards.
These specialists work in close liaison with architects,
specialist consultants, contractors and interior designers
to agree suitable layouts, project costs, constructions
schedules, design standards, operating concepts, interior
designs, furnishing requirements, operating concepts and
operating equipment requirements.
Operating Strategy & Review
38
Marketing, Sales & Reservations Management
All marketing related activities are centrally managed from Anilana Centre,
including our strategic planning, advertising, pubic relations activities,
collateral management, business forecasting, internet based marketing, rate
& revenue management, reservations, qualification of sales prospects, sales
management and contracting. We have clearly identified our markets and
have established aggressive sales targets. We are gradually building a strong
and diverse base, including high yield international customers from traditional
markets such as the United Kingdom, Italy and Germany as well as emerging
markets such as China and Russia. We are also careful to cultivate and foster
positive relationships within our local markets offering special corporate and
local leisure rates to entice regular, repeat guests from within the local market.
Whilst we wish to maintain strong and professional relationships with local
and international Travel Specialists and Tour Operators, we are making a
significant investment in our internet based communications and business
capability. We have developed our own powerful reservations engine and
have focused on developing strong relationships with professional on-line
booking companies such as Agoda.com and Booking.com. With a strong
name optimisation programme in place, we have been able to increase on
line awareness of our brand, and gain preferential standing in Google search.
Paying careful attention to our on-line reputation in both social media and
customer experience sites such as Tripadvisor, we monitor and respond to
guest feedback concerning our products, which helps us to cultivate strong
brand loyalty and improve our product image for future potential guests who
utilise these sites before finalizing their reservations.
Our advertising concept promotes Anilana as “a touch of paradise”, an aspirational destination for the high yield experiential traveller in the
international market, as well as for the upwardly mobile local market. These advertisements are image building and promote the exclusivity and
tranquility of the east coast, beautiful and secluded beaches, areas of great natural beauty and a service intensive hotel experience.
During the soft opening phases of our hotel opening, Introductory rates have been successfully applied to entice first time users and special groups
to experience the Anilana product; this has been very successful at promoting the brand and building initial awareness. We are now focusing on
building our rates, which are positioned at the high end of the market through prudent partnerships with luxury tour operators and promoters in
both established and emerging markets. Focus will be on the luxury F.I.T. traveller and special guests such as honeymooners, those seeking once
in a lifetime experiences and small, more personalised high yield incentive groups.
Recruitment, manpower development and succession planning
All strategic human resources activities are centrally conducted, including
recruitment and selection, compensation planning, development of training
materials, deployment and manpower planning to ensure a future manpower
pipeline is sourced and organized to ensure that sufficient leadership, specialists
and employees are prepared to assume the positions when needed.
Tactical human resources activities such as provision of employee services,
motivation, performance management, service training, counseling and
evaluation are coordinated on property. Our people are a critical component
to delivering on our brand promise and ultimately the guest experience. Our
growth strategy is heavily dependent on ensuring we have the right people, in
the right place at the right time, who have been equipped to provide Anilana’s
brand of hospitality to a clearly defined standard.
Our challenge comes in developing our future leaders at the rate needed to
satisfy requirement at our rate of growth. We will focus on developing our
future leaders by determining the specific strategic and tactical competencies
required, designing development programmes to be built around these specific
competencies. We have already launched our Management Development
Programme, which will provide our future emerging leaders with the education,
tools and confidence to hold leadership positions.
39
Corporate governance, government liaison, licensing and legal matters
With the oversight role and accountability to our Board of Directors, the management team will continue its pursuit of efforts related to
upholding fiscal and legal accountability. Given its far reaching implications on the level of integrity on our relationships with associates,
guests, directors and stockholders; sound corporate governance has a vital role in our aspirations to be the preferred hospitality brand.
Our compliance efforts include the accurate documentation of our work processes and the development of detailed procedures for the
implementation of sound internal control procedures, conduct of internal and external audits and the continued improvement of our
processes to address any internal control issues and recommendations.
Thorough and effective implementation of corporate polices & procedures is a critical issue, with regular monitoring of compliance on a
day to day basis (including approvals and reviews), to ensure we exercise control and close oversight of expenses and company assets.
Strict financial reporting efforts are made to ensure the adaptation of proper accounting standards, and fulfillment of internal and external
financial reporting requirements. Identification and establishment of efficient tax structures and ensuring that transactions are occurring
with validated parties and in compliance with tax regulations is a crucial role of the Head of Finance and Compliance. Audits as stipulated
by statutory requirements are mandatory.
Brand Clarity and Operating Standards
Our hotels share a common definition of “memorable hospitality” to ensure
a common understanding of our operating standards which provides us
with “Brand Clarity”, establishing and maintaining clear service standards
for our guests. We have defined the fundamentals of Hospitality as:
•
•
•
•
Providing Comfort (defining and maintaining standards)
Maintaining Cleanliness (defining and maintaining standards)
Safety (awareness, discipline and actions)
Ensuring Consistency (attentively providing consistent, excellent service)
We will sustain the integrity of our brands by applying brand, product
and service delivery standards at every touch point with our guest to
ensure that the brand experience is consistently delivered in every guest
interaction.
Sustainability
Anilana is very conscious of our ethical, moral and legal obligations relating to sustainability, which we interpret as a simple principle:
Everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. Sustainability
creates and maintains the conditions under which humans and nature can exist in productive harmony, permitting and fulfilling the social,
economic and ethical requirements of present and future generations.
Strategies relating to sustainability have emerged in recent times as a result of increasingly significant concerns regarding unintended
social, environmental, and economic consequences of the rapid population growth, economic growth and consumption of our natural
resources. It has become very important for us to take an active role in protecting our water supplies, materials, energy and resources to
protect future human health and welfare as well as protecting the beauty and diversity of our environment. Our efforts can be characterized
in five dimensions:
1. Environment
We are careful to ensure that we honor the various
laws, ordinances and regulations relating to human
health requirements and environmental protection,
making significant investment in efficient equipment and
computerized monitoring systems which allow us to operate
both responsibly and efficiently, whilst respecting the
environment.
40
During our design and construction phases, Anilana
worked closely with professional consultants to ensure
our water management systems were carefully planned,
environmentally friendly and were constantly monitored to
enable us to reduce wastage and minimize water loss wherever possible in order to conserve supplies. We have invested in purchasing
sophisticated pumps and natural filtration systems for our water whilst producing high quality supplies for guest use, efficient laundry
operations, kitchen utilization, automatic garden water management and efficient sewage treatment with minimum environmental impact.
It makes good business sense to minimize our energy costs and to ensure prudent energy management. We have invested significantly in
our internal and external lighting requirements ensuring that more than 80% of our light fittings are either solar powered or LED. In addition
to our lighting strategies, the majority of our air-conditioning is solar powered, which also provides as a by-product hot water, reducing
reliance on boilers to provide hot water.
2. Community
Our hotels are located in locations previously effected by civil conflict, reducing training and development opportunities for local staff
for many years. Since opening one of our central recruitment
strategies has been to employ approximately 70% of our staff from
surrounding areas. This enables us to provide career prospects to
previously unavailable local talent and provide economic growth
to their families.
These efforts have been acknowledged and appreciated by
our guests, who have not only provided a significant amount of
supportive feedback but have also contributed to local schools
and institutions to assist in the growth of local talent. Whilst skills
are still being developed and training requirements have been
significant we see tremendous growth and improvement in our
young and motivated team of service-oriented professionals.
In addition to our support for the local youth, we also favor
sourcing our products and food items from local farmers and
fishermen, we encourage sustainable fishing methods and the
production organic food items, picked at the peak of the harvest to ensure high quality and ensure a consistent product line to our hotels
as well as to stimulate economic growth.
With the introduction of the Anilana Scholarship Programme, we are selecting gifted and motivated children in the area, and provide
academic support for them to become the best that they can be. We hope that this programme will be successful and popular. In addition,
we have donated significant numbers of school books, sporting equipment and other resources with the intent to enrich the lives of
underprivileged children in the local area. Besides academic support, we have financed the completion of a high quality Cricket pitch in
Pannicachankerni, to allow children to increase their passion and enthusiasm towards the game to provide some enjoyment between
studies.
Anilana has been an integral part of local beach cleaning programmes, restoring Tsunami effected beaches in collaboration with government
and military efforts, also working closely with the Sri Lanka Tourism Development Authority (SLTDA).
Frequent sponsorship is provided for events hosted in the area, including sponsoring the Vallechcheni Muslim School for their Annual Sports
Meet and support of religious festivals held at Vallechcheni Temple. Our support rendered to the Mano Chanmugan Music Foundation
and commissioning our hotel artwork programs to exclusively feature the works of up and coming Sri Lankan artists, demonstrates our
contribution towards the development of local arts and aesthetics.
3. Associates
At Anilana, we realize that it is our people who make the difference. Hence,
we give prominence in taking care of our colleagues so that they will reach
their full potential. We believe in personal growth and consider training as a
key driver in achieving sustainable business excellence.
Frequent internal and external training opportunities are provided, to
enhance current skill levels, including customer service training, on the job
training and product knowledge, English Language training and Computer
skills.
41
Over the past year, Anilana has sponsored several managers for advanced training programmes
and has extended our successful Management Development Training Programme which
was designed to provide a pipeline for our future management requirements internally. In
addition, highly qualified international trainers have provided on-the job and off the job training
opportunities in enable our team members to enhance their comprehension and practiced
hospitality standards. Internal Performance Management & Personal Development Plans
are in place to enable us to monitor and reward performance and provide development
opportunities to overcome current weaknesses or areas for improvement.
This feeds into our internal promotion plan, enhancing our “development from within”
programme. Working in collaboration with hotel schools such as Batticaloa, Rathmalana
and National Apprentice Industrial Training Authority, Trincomalee (NAITA), we provide
opportunities for students to attend the Anilana Skills for Employment Programme, which we
have designed to meet NAITA standards and the international hospitality expectations of our
guests. During their attachment with Anilana, students are guided and montored by in Trainers
to ensure an effective and professional transfer of skills are enhanced through on the job
training in operational departments.
4. Customers
The reason we are here is to provide hospitality; everything we do begins and
ends with our customers. It is our responsibility to provide comfort, hygiene
standards, safety and consistency. We understand that like ourselves,
customers are equally concerned about sustainability and the welfare of the
environment. They require assurances that we are addressing their concerns
and meeting their expectations. We demonstrate our commitment by offering
sustainable food items on menus, maintaining cost efficient consumption of
energy, treating laundry and housekeeping in an environmentally friendly
manner, maintaining a healthy and practical approach towards water
management and ensuing our communications with guests are in an efficient
and as far as possible paper free manner. We also have an optional room
cleaning programme providing guests with a choice to decide on the frequency
of cleaning and replenishment of supplies and materials in their rooms.
Conscious of endangered species, we do not provide food items that includes
endemic species such as turtles, shark’s fin, dolphins, dynamite fishing etc
5. Sustainable Profitability
To attract investment and support our brand integrity, we have adopted a
strategy of “sustainable profitability”, which governs our financial performance,
with an aim of being recognized as industry leaders and excellent financial
managers of assets.
We demonstrate strong and consistent growth in RevPAR and total revenue for
continued growth and improvement in our portfolio’s profitability. Our goal has
been and will be, to deliver targeted financial performance, balancing support for
future growth vis-à-vis EBIDTA flow through.
Margins will be maintained by ensuring that expenses, and particularly those
related to initiatives in support of our strategic goals, are aligned with their
current and future revenue generating potential. We will continually evaluate
our business models to ensure they meet the needs of an expanding portfolio.
Focusing on growing our revenue growth opportunities and managing cost
structures such as workforce costing, materials management, maintaining a
centralized approach to purchasing, energy consumption management and
prudent asset management.
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43
44
Human Resources Development
A
t Anilana, we realise that it is our people who make the difference. Our
human resources goals focus on constructing and motivating a team of
young, enthusiastic and well-trained individuals who are united in providing a
warm, friendly and efficient service for our guests. We want our guests to enjoy
a memorable stay and only a motivated team of professionals can make that
happen. Our emphasis on caring for colleagues, training and internal development
ensures that those who demonstrate their commitment, positive attitude and
abilities can grow and develop within Anilana to reach their full potential. We focus
on providing careers, not jobs.
Vision, Mission & Goals
Anilana aspires to be recognised for stylish, contemporary and comfortable
properties and for providing high quality service standards, gracious hospitality
and a focus on satisfying our guest’s needs. Maintaining sustainable growth,
we will provide above average profitable returns to owners and shareholders,
enhancing the value of investments and the worth of the company. We focus
on originality, economically designing facilities and providing consistent services,
which both surprise and delight our guests, whilst generating profitability for our
shareholders.
Our vision, mission, goals, values and internal culture are interdependent,
together they influence our strategic direction. Our efforts to engage associates
in our planning activities to determine how we can better serve our fellow
associates, guests and shareholders contributes to their commitment to genuine
service, which is the first step to achieving high levels of guest satisfaction. In
our view, motivating our associates to become personally involved in serving and
demonstrating loyalty to our guests is central to fulfilling our mission.
Core Values & Internal Culture
We foster a common purpose and strong internal culture within Anilana through
the shared values of mutual respect, commitment to serve, honesty, integrity,
humility, creativity and originality. We believe our people will be the key to our
success in the years ahead so our growth therefore needs to be consistent with
our ability to develop our associates. They must be confident in their skills and
properly equipped to serve our guests with the grace and hospitality that Anilana
wish to present.
Growth needs to be balanced and driven by our strategies and goals, but also
by our shared values and internal culture. These are each interdependent and
must be mutually beneficial and positively managed as this is a key component of
creating sustainable long-term shareholder value. Management team members
are the drivers of internal culture at Anilana, they ensure that all members of
our team practice the fundamentals of our hospitality towards both our guests
and their colleagues. These fundamentals include demonstrating initiative when
working under pressure, remaining flexible to satisfy the needs of our guests and
taking the opportunity to demonstrate they are valuable (and valued) members
within the team. Providing consistency and memorable standards of hospitality
are integral to our success and we believe this to be a cornerstone when building
a strong, dedicated and happy team.
45
Anilana Team
One of our prime concerns is the acquisition, development and retention
of our associates at all levels, we realize that it is only through our people
that we will be able to deliver high levels of hospitality. Fundamental to our
business strategy, is to earn a reputation as a preferred employer. To help
us build this belief, we provide detailed and well-structured performance
standards, training opportunities, feedback, guidance and career advice. We
have spent considerable attention assembling an internationally experienced
and like-minded team of professionals, each well established in their fields
of endeavor. Now, with solid experience in design, construction, marketing,
service delivery, human resources management and financial responsibility,
we are able to meet the challenge of balancing the needs of our guests,
whilst delivering higher than average return on investment to shareholders.
Training & Development
A significant investment has been made in the training and development of
all levels of staff within Anilana, particularly in the development of computer
skills, pre-opening service training, food production standards and internal
management Development.
•
Significant investment has been made in computer systems to allow us to efficiently implement modern standards of
management, inventory control, cost management, financial reporting, guest billing and reservations management. To ensure
our team members were properly equipped to handle these systems, highly qualified international systems trainers provided
on-the job and off the job training and support to enable us to provide the desired service standards and operational capabilities.
•
Sequences of service and standards of performance were developed and used to train our team members in the desired
service standards expected for them to correctly perform their roles within the team. These resources assisted us to reduce
our hiring schedule times and minimize payroll costs. Short periods of focused training improve our productivity and minimize
preopening costs. This training approach will feature prominently during the future openings of each of our hotels.
•
Our hiring schedules for hotels include orientation training periods, to enable us to effectively transfer skills to newly hired team
members who can learn “the Anilana way” on the job, before being expected to perform themselves.
•
Clear culinary and food production standards have been created with detailed Anilana recipes, well-defined plate presentations
and internationally acceptable hygiene standards so that our food production is authentic, cost effective and delicious.
•
We have already celebrated a number of internal promotions, including our first internal Resort Manager appointment. Our
commitment to the internal development of our employees and management will continue, as we plan to appoint future senior
management internally.
•
We have already launched the Anilana Management Development Programme, with the recent appointment of talented young
graduates returning to Sri Lanka following graduation from international education.
Payroll Management & Employee Benefits
We strive to align staffing and payroll expenses with business demand without
compromising our commitment to hospitality and high levels of guest satisfaction.
During periods of declining demand for our products and services we make significant
changes in operations, including staff reductions, outsourcing services, review of
contracts to improve pricing and modification of certain product standards to reduce
costs without significantly impacting quality. As demand improves, we remain
focused on actively managing expenses. A competitive compensation plan has been
developed to ensure employees are well remunerated and cared for. They receive
appropriate reimbursements for business, and are protected from the contingencies
of life. These include a well-defined performance based salary structure, bonus
plans, business related reimbursable expenses, medical Insurance, hospitalisation
plan as well as the government stipulated mandatory benefits such as EPF and ETF.
We are proud of the contributions and the commitment of our people and are
motivated by the promise they offer towards Anilana’s future.
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47
48
Corporate Social Responsibility
A
t Anilana, we realise our efforts really do make a difference. We take our corporate
social responsibility very seriously and are committed to making a positive and lasting
impact in our community by demonstrating a strong commitment to preserving our natural
environment and by giving back to the local communities in which we operate, especially
towards children and sport. We do this through the use of locally produced organic food
items, support for local farmers and fishermen, the use of sustainable food products,
sponsorship and through the volunteer services of our associates.
Environmental Matters
We are careful to ensure we honor the various laws, ordinances and regulations relating to
environmental protection and have made significant investment in equipment and systems
that allow us to operate responsibility and efficiently, whilst respecting the environment.
This is not only our environmental responsibility, but is also good business as we can
reduce costs whilst protecting our environment.
We have played close attention in particular our water management, waste management
and energy consumption with careful planning in each area, allowing us to harness and
benefit from modern technology.
•
With growing concerns towards prudent water management, it has been important
to ensure we are responsible in water management and delivery without permitting
undue wastage. This requires a thorough understanding of local water conditions,
treatment methods, storage, recycling and filtration systems to maintain high
quality water for guests, laundry and culinary requirements. Anilana has been
working closely with professional consultants to ensure this is carefully planned
and constantly monitored to minimise wastage and conserve water wherever
possible. We have sophisticated pumps and filtration systems for guest use,
efficient laundry and kitchen utilization, automatic garden water management and
sewage treatment.
•
Significant investment has gone into internal and external lighting requirements
with approximately 80% of our light fittings being either solar powered or LED
lighting. Despite higher initial investment, this has helped us to reduce energy costs
over time and demonstrates our commitment to prudent energy management. We
also ensure that a high percentage of our air-conditioning units are solar powered,
which has the additional benefit of providing hot water as a by-product, minimizing
our dependence on boilers.
•
In both architectural and in interior design programmes, Anilana have been keen
to incorporate high proportions of natural materials in our designs. Design features
include high ceiling lobbies to naturally cool spaces rather than air-conditioning
them, the use of indigenous wood for our floor, decking and stair finishes, natural
thatching for roofing and the use of water features and fountains which irrigate and
provide cooling.
•
Anilana are committed to the proper disposal or treatment of hazardous or toxic
substances and the correct transportation of such substances.
49
Engaging the local community
At Anilana, we play a role in supporting and engaging with our local community, especially in our efforts to enrich the lives of underprivileged
children. We offer our time, resources and financial support to causes that we consider important, some recent examples include:
•
•
•
•
•
Playing a key role in financing and the completion of a high quality Cricket pitch in Pannicachankerni, to allow children to enjoy this
national a pastime and develop their skills at the crease.
Purchasing and distributing some much needed school books for children to use at school in Pannichchankerni
Supporting the Mano Chanmugan Music Foundation
Our hotel artwork programmes have been commissioned to exclusively feature the works of up and coming Sri Lankan artists
Complimentary products and services have been provided to selected organisations and schools, to be used at auction to raise funds
that benefit children and the needy.
Sponsorship
Anilana is a significant contributor to the development of sport, particularly for Rugby, Cricket and Tennis. Over the past years we have provided
regular financial support, sponsorship and have commissioned corporate advertisements to promote Anilana as well as sponsoring teams and
tournaments.
50
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52
Corporate Governance
53
C
orporate Governance is the system by which Companies are directed, managed and controlled by the management in the best interest of the
Shareholder.
The Board of Directors is responsible for the Governance of the Company whilst the Shareholders role in Governance is to appoint the Directors
and the Auditors and to satisfy themselves so that an appropriate governance structure is in place.
Compliance with the Code of Best Practice and Listing Rules.
The Company currently complies with key areas of the Code of Best Practice for Corporate Governance issued by the Institute of Chartered
Accountants of Sri Lanka and the Rules on Corporate Governance contained in the Listing Rules of the Colombo Stock Exchange.
Board of Directors
The Board of Directors takes responsibility for good governance of the Company. The Company’s Board of consists of 5 Directors, the name of
the members of the Board appear under Corporate Information on the Inner back cover of this Report. One Third of Directors retire by rotation at
each Annual General Meeting and those eligible are recommended for re-election.
The Directors collectively possess a wide range of aptitude, skill, knowledge and experience in managing Companies.
The Board Meets regularly to review matters of importance and also the performance of the Company. The Directors retain full and effective
control of the Company and provide strategic direction to the Company, monitors operational and management performance, periodically reviews
the effectiveness of the Company’s risk management and internal control systems and ensures that there is compliance with all relevant laws,
regulations and codes of business practice. The Board had met three times during the year under review.
The Directors are responsible for preparing and presenting the financial statements which are prepared in accordance with the Sri Lanka Accounting
Standards and in accordance with the requirements of the Colombo Stock Exchange. A Statement of Directors’ Responsibilities for the preparation
of Financial Statements is set out on page 67 of this Report.
Board Sub- Committees
The Board’s sub-committees scrutinize and analyze the areas under their purview and ensure application of strict control over the affairs of the
Company. The Sub committees make recommendations to the Board on necessary adjustments and modifications to the internal systems of the
Company. The Board has constituted an Audit sub-Committee and Remuneration sub-Committee, each of which consists of three Non-Executive
Directors. Reports of the Remuneration Committee and the Audit Committee are set out in the pages 59 and 58 of the Annual Report, respectively.
Company Secretaries
Corporate Advisory Services (Private) Limited, who were appointed with effect from 19th May 2010, provides Corporate Secretarial Services to
the Company. The Company Secretaries advise the Board on matters relating to the Companies Act, the Colombo Stock Exchange regulations
and other applicable rules and regulations in order to ensure that the Best Governance practices are adopted by the board and its Committees.
Compliance with Legal Requirements
All Directors have access to the Financial and Management Information of the Company. The Directors makes every endeavor to ensure that the
Company complies with Laws and Regulations and to exercise due diligence in managing the affairs of the Company. Additionally, checks and
controls are in place to ensure that the policies of the Board are complied with.
The manner and the extent to which the Company has applied the principles of good Corporate Governance practices during the period under
review is set out in the table below.
54
Rule
No.
7.10.1
7.10.2
Subject
Non Executive Directors
Independent Directors
Applicable requirement
Compliance /
Status
Details
At least 1/3 of the total number of Directors should be
Non-executive Directors
Complied
3 Out of 5 directors are Non-executive
Directors
2 or 1/3 of non-executive Directors, which is higher
should be independent
Complied
2 of 3 Non-executive Directors are
independent.
Each non executive Director should submit a declaration
of independence/ Non independence in the prescribed
format.
Complied
Non-Executive Directors have submitted the
Declarations.
7.10.3
Disclosure relating to
Directors
(a) Names of Independent Directors should be disclosed
in the Annual Report
Complied
Please refer information pertaining to the
Directors and Board sub Committees on page
8 of the Annual Report
7.10.5
Remuneration Committee
A listed Company shall have a Remuneration Committee
Complied
Board had established a Remuneration
Committee
(a) Composition of the
The Remuneration Committee shall comprise of
Non-executive Directors and majority of which can be
independent
Complied
The Remuneration Committee has 3
members 2 of whom are independent.
(b) Factions of the Remuneration Committee
The Remuneration Committee shall recommend the
remuneration of the Key Management Personnel and
Executive Directors
Complied
Please refer to the Remuneration Committee
Report on Page 59 of the Annual Report.
a) Names of Directors comprising the Remuneration
Committee
Complied
Please refer Directors information on Page 8
Of the Annual Report
b) Statement of Remuneration policy
Complied
Please refer the Remuneration Committee
Report on Page 59 for a brief statement of
policy
c) Aggregate Remuneration paid to Executive and Non
-Executive and Non- Executive Directors
Complied
Please refer Notes to the Accounts on Page
85
Audit Committee
The Company shall have an Audit Committee
Complied
The Board has constituted an Audit
Committee
(a) Composition of Audit
Committee
a) Shall Comprise of non-executive Directors a majority of
whom shall be independent
Complied
Audit Committee consists of 3 Directors 2 of
whom are independent.
b) The Chairman of the Audit Committee or one member
should be a member of a professional accounting body
Complied
Chairman of the Audit Committee is member
of a Professional Accounting Body
(b) Audit Committee
Functions
Should be as outlined in the section 6 of the Listing Rules
Complied
Please refer Page 58
(c) Disclosure in the
Annual Report relating to
the Audit Committee
a) Names of the Directors comprising the Audit Committee
Complied
Please refer Information of the Board of
Directors and the Board-sub Committees on
page 8 of the Annual Report
b) The Audit Committee shall make a determination of
the independence of the Auditors and disclose such
determination
Complied
Please refer to Audit Committee Report on
c) The Annual Report shall contain a Report of the Audit
Committee setting out the manner of compliance of the
functions
Complied
Please refer to Audit Committee Report on
A Statement of each Director’s holding and Chief Executive Officer’s holding in shares of the Company at the
beginning and end of the financial year
Complied
Please refer page 63
(c) Disclosure in the
Annual Report relating to
7.10.6
7.6 (v)
Statement of Directors and
Chief Executive Officers
Shareholding
The Annual Report should set out:
55
Other Policies and Practices
Obtaining Independent Professional Advice
The Board in discharging its duties seeks independent professional advice from external parties when necessary, at the company’s expenses.
Internal Controls and Risk Management
The Board has introduced adequate internal controls and risk management systems to safeguard the shareholder investments and the Company’s assets. The Board is fully aware that internal controls have inherent limitations and do not provide absolute assurance against fraud and
error.
Dedication to matters of the Board and the Company
The Board of Directors devotes adequate time to the fulfillment of its duties and Directors of the Company. The Board has delegated the day to
day operations of the Company and of the group to the Management Committee. The Management Committee comprises the Managing Director and a professional team of senior managers of the Company.
Division of Responsibilities between the Chairman and the Managing Director
The functions of the Chairman and the Managing Director are clearly segregated. The Chairman is responsible for the leading and ensuring the
effective functioning of the Board.
The Managing Director is responsible for the Management of the business, monitoring its progress and implementing the strategies of the Company within the framework of the polices formulated by the Board.
The role of the Chairman
The Chairman ensures that Board Meetings are conducted efficiently by encouraging and ensuring the effective contribution to the deliberations
by all directors. Their individual contributions and concerns are objectively assessed before major decisions are made. The Chairman also satisfies himself that the Directors are provided with sufficient information so as to facilitate their effective contribution at Board Meetings.
Directors Remuneration
The total remuneration of Directors is disclosed in Note 6 to the Financial Statements. The Board has delegated powers to the Remuneration
Committee to oversee implementation of policies with regard to the Remuneration of Executive Directors and Executive Employees.
The Names of the Remuneration Committee are disclosed on page 59
Relationship with shareholders
The Annual Report and the Annual General Meeting form the principal means of communication with the shareholders quarterly financial statements of the company and that of the Group have been uploaded to the CSE website within the stipulated time frame.
56
Ready for your arrival
a touch of paradise
57
Audit Committee Report
Role of the Audit Committee
The Audit Committee is a sub-committee of the main Board to which it is accountable. The primary function of the Audit Committee is to assist
the Board in its oversight of the integrity of the financial statements of the Company, to assess the qualifications, the independence and the
performance of the Company’s external auditor and review compliance of the Company with legal and regulatory requirements.
Composition of the Audit Committee
The Audit Committee comprises of the following three Independent, Non-Executive Directors of Anilana Hotels & Properties PLC
Mr. Gamini Benedict Wikremanayake
Mrs. Manjula Cleone Seneviratne
Mr. Ajahn Gardiye Punchihewa
Chairman of the Audit Committee
Committee Member
Committee Member
The Managing Director and the Head of Finance attend meetings at the invitation of the Audit Committee. The Board Secretary functions as the
Secretary to the Audit Committee. Representatives of external auditors and internal auditors also attend Audit Committee meetings by invitation.
The Audit Committee, whose Chairman has the required expertise in Finance and Business Management to deliberate Audit Committee matters
and recommend necessary action to be taken.
Meetings
The Audit Committee met 03 times during the year. The attendance of the members at the meeting is as follows.
Mr. Gamini Wikremanayake
3/3
3/3
3/3
Functions performed by the Audit Committee
a. The Committee reviewed the provisional financial statements for the three quarters that were published for financial year 2013/14 and
the Annual Report of 2012/13. It appraised the preparation, presentation and adequacy of disclosures in the financial statements of the
Company, in accordance with Sri Lanka Accounting Standards and SLFRS. It also reviewed the Company’s compliance with financial
reporting requirements, information requirements of the Companies Act and other relevant financial reporting related regulations and
requirements.
b. The Committee reviewed the periodic internal audit reports. The internal audits are done to improve process performance and control.
c. The Committee reviewed the external auditors’ report and management letter for the last year. All recommendations proposed by the external
auditors were discussed and recommendations proposed were duly carried out by the management. In addition, the Audit Committee
reviewed the engagement partner’s relationships with the Company, and assessed that the external auditors are independent.
d. The Audit Committee in conjunction with the Managing Director and Head of Finance of the Company reviewed the Company’s disclosure
controls and procedures and internal control over financial reporting.
e. The Audit Committee reviewed the Company’s policies and practices with respect to risk assessment and risk management, including
discussing with management the Company’s major financial risk exposures and the steps that have been taken to monitor and control such
exposures.
Conclusion
The Audit Committee is satisfied that the Company’s accounting policies, independence of the auditors and risk management are adequate for the
Company. The Audit Committee has also accomplished responsibilities and functions that are delegated to it by the Board.
Signature
Mr Gamini Benedict Wikremaratne
Chairman- Audit Committee
14th August 2014
58
Remuneration Committee Report
Role of the Remuneration Committee
The Committee reviews the performance of the executive staff against the set objectives and goals, and determines the compensation policy
of the Company for all levels of employees. The Committee supports and advises the Board on remuneration and remuneration related matters
and makes decisions under delegated authority with a view to aligning the interests of employees and shareholders.
Composition of the Remuneration Committee
The Remuneration Committee is a sub-committee of the main Board, to which it is accountable. The Remuneration Committee comprises of the
following three Independent Non-Executive Directors of Anilana Hotels & Properties PLC.
Mr. Gamini Benedict Wikremanayake
Chairman of the Remuneration Committee
Committee Member
Committee Member
The Managing Director attends the Committee meeting by invitation and serves as the secretary of the Committee.
The Committee members possess vast experience in the fields of Business Management, Human Resources Management, Labour Relations
and Labour Law. Hence, the Committee has adequate expertise in remuneration policy and management to deliberate and propose necessary
changes, improvements to meet the roles and responsibility of the Committee.
Meetings
The Remuneration Committee met once for the year where all members participated.
Functions performed by the Remuneration Committee
a. Ensuring that the Board complies with the Companies Act in relation to Directors remunerations, especially the requirements of section
216. And it also ensures that employees are adequately compensated based on their performance and contribution for the period under
review and future potential.
b. Constructing a specific cost of employment structure that enables Company to attract and retain a quality and representative staff in its
operations and do this inter alia with reference to appropriate market rates where these are relevant and benchmarking specific categories where required.
c. Ensuring internal equity and fairness in and between the various pay categories and building incentives in the cost of employment structure
to encourage and reward excellent performance, on objectively defined criteria.
d. Ensuring that staff costs are within the budget set by the Board, and are sustainable over time.
Conclusion
The Committee is satisfied that it has completed the responsibilities that were delegated to it by the Board for the year under review and the
necessary objectives were achieved for the year under review.
Signature
Gamini Benedict Wikremanayake
Chairman- Remuneration Committee
14th August 2014
59
60
Annual Report of the Board of Directors
on the Affairs of the Company
61
Annual Report of the Board of Directors
on the Affairs of the Company
T
he Directors take pleasure in presenting their report together with the audited Financial Statements for the year ended 31st March,
2014.
Principal activities
The Company’s principal activity is constructing and managing hotels. The company also maintains a separate property portfolio as investment.
Directorate
The Directors of the Company during the year under review are as follows:
Asanga Chandana Seneviratne
Manjula Cleone Seneviratne
Peter Lucien Amerasinghe
Gamini Benedict Wikramanayake
Directors Meetings
At each Board meeting, performance to date is reviewed and compared with targets. Presentations are made covering all aspects of
operations, including productivity. The Board is constantly seeking to optimize resources and manage costs.
The financial positions is monitored against budgets. Comprehensive papers are presented on the financial position of the Company
for the month under review and the year to date. Comparisons are also made with the previous years’ figures and with the macro
environment, to detect trends and the impact of outside influences.
Where necessary, decisions are taken by circular resolutions, to expedite action.
Re-election of Directors
To re-elect Mr Ajahn Gardiye Punchihewa who retires by rotation at the Annual General Meeting in terms of Article 81 of the Company’s
Articles of Association.
To re-appoint as a Director, Mr. Gamini Benedict Wikramanayake who is 81 years of age and who vacates his office in terms of Section
210 of the Companies Act 7 of 2007.
Notice is hereby given of the undernoted Ordinary Resolution in relation to Mr. Gamini Benedict Wikramanayake’s re-appointment to be
passed in compliance with Section 211 of the Companies Act No. 7 of 2007.
“RESOLVED THAT Mr. Gamini Benedict Wikramanayake who is 81 years of age be and is hereby re-appointed a Director of the
Company and it is hereby declared as provided for in section 211 of the Companies Act No. 07 of 2007, that the age limit of 70 years
referred to in Section 210 of the said Companies Act shall not apply to the said Mr. Gamini Benedict Wikramanayake.”
To re-appoint as a Director, Mr. Peter Lucien Amerasinghe who is 70 years of age and who vacates his office in terms of Section 210 of
the Companies Act 7 of 2007.
Notice is hereby given of the undernoted Ordinary Resolution in relation to Mr. Peter Lucien Amerasinghe’s re-appointment to be passed
in compliance with Section 211 of the Companies Act No. 7 of 2007.
“RESOLVED THAT Mr. Peter Lucien Amerasinghe who is 70 years of age be and is hereby re-appointed a Director of the Company
and it is hereby declared as provided for in section 211 of the Companies Act No. 07 of 2007, that the age limit of 70 years referred to in
Section 210 of the said Companies Act shall not apply to the said Mr. Peter Lucien Amerasinghe.”
62
Directors’ Interest in shares
The Directors interests in shares as at 31st March, 2014 were as follows:
As at 31.03.2014
As at 31.03.2013
Asanga Chandana Seneviratne
98,282,123
98,282,123
Manjula Cleone Seneviratne
20,000,001
20,000,001
966,667
666,667
Peter Lucien Amerasinghe
Gamini Benedict Wikramanayake
-
-
40,000
40,000
Director’s interests in contracts
In accordance with the provisions of the Companies Act No. 7 of 2007, the Directors have made declarations relating to their interests.
These have been entered into the Interest Register which is maintained by the Company.
Director’s remuneration
The Directors remuneration is disclosed on page 85
Board sub committees
During the year under review, an Audit Committee was appointed by the Board. The Audit Committee approved an Audit Charter which
describes the role and the functions of the Committee.
Review of business
Cessation of the civil conflict has opened up high potential tourist destinations for development within Sri Lanka. Developing infrastructure
is assisting fast access to previously inaccessible locations on the east coast enhancing the value of land over the long run.
Details on the Company’s performance for the year under review can be found in the statements of the Chairman and the Chief Operating
Officer (found on pages 4 to 7 )
Directors’ responsibility for financial reporting
The Directors are responsible for the preparation of the Financial Statements of the Company. The Directors believe that the Financial
Statements (appearing on page 67 ) have been prepared in accordance with the requirements of the Sri Lanka Accounting Standards, the
Companies Act No. 7 of 2007, and that they reflect a true and fair view of the state of the Company’s affairs for the year under review.
Responsibility statements
The Directors Responsibility Statement appears on page 67.
Going concern
The Directors are of the view that the Company is in a position to continue its operations in the foreseeable future. Accordingly, the
financial statements are prepared on the basis that the Company is a going concern.
Financial Statements
The Financial Statements are given on pages 69 to 99.
63
Financial Results
The financial results for the year ended 31st March 2014.
Revenue
Net Loss Before taxation
Less: taxation
Net Loss after taxation
2014
Rs.’000 s
2013
Rs. ‘000 s
76,742
1,504
308,164
163,546
900
909
309,064
164,455
Auditors
To re-appoint the retiring Auditors M/s Amarasekera & Co, Chartered Accountants to hold office until the conclusion of the next Annual
General Meeting and to authorize the Directors to determine their remuneration.
The Auditors have confirmed that they have had no interest in or relationship with the Company other than that of Auditors. They have also
confirmed that they are independent in accordance with the code of ethics of the Institute of Chartered Accountants of Sri Lanka.
During the year under review, the Auditors were paid Rs 588,699.00 as audit fees.
Auditors Report
The Auditors report appears on page 70
Significant Accounting Policies
The significant accounting polices adopted when preparing thee Financial Statements and any changes thereto (if applicable) are given on
pages 76 to 84
Statutory Payments
For the year under review, all known statutory payments have been made and all retirement gratuities have been provided for. Further, all
management fees and payments to related parties for the year under review have been reflected in the accounts. Details are given in Note
no 6 Page 85
Number of Employees
The number of employees as at 31st March 2014 was 140.
Stated Capital
The stated capital of the Company is Rs. 3,095,892,850 made up of 383,684,400 Ordinary Shares.
The shareholding structure is given on pages 100 to 101 together with the 20 largest shareholders.
During the year, the share price ranged from Rs. 13.50 to Rs. 6.70. As at the end of trading on 31st March 2014 the share price was Rs. 7.10.
64
Equitable treatment of shareholders
The Directors have made every endeavour to ensure the equitable treatment of all shareholders, and are committed to maximizing
shareholder wealth.
All Notices of shareholders’ Meetings are sent out in accordance with the provision of the Company’s Articles of Association. Any shareholder
unable to attend is still able to indicate his/her consent or dissent on any decision, by completing and returning the two way proxy provided
with the Notice.
Notice of Meeting
The Notice of Meeting is found on page 102 If you are unable to be present, please complete and return the Form of Proxy (page 103
enclosed).
BY ORDER OF the Board of Directors
of ANILANA HOTELS & PROPERTIES PLC
Peter Amerasinghe
Chairman
Asanga Seneviratne
Managing Director
Corporate Advisory Services (Pvt) Ltd.
Secretaries
65
66
Statement of Directors’
Responsibilities
The Director are responsible under the companies Act No.07 of 2007, to ensure compliance of the
requirements set out therein to prepare financial statements for each financial year giving true and fair
view of the state of the affairs of the Company as at the Balance sheet date and the profit of the company
for the financial year.
The Directors accept the responsibility for the integrity and objectivity of the financial statements presented.
The Directors confirm that the financial statements have been prepared;
• Using appropriate accounting policies which have been selected and applied in a consistent manner,
and material departures, if any have been disclosed and explained: and
• Presented in accordance with the Sri Lanka Accounting Standards; and that
• Reasonable and prudent judgments and estimates have been made so that the form and substance of
transactions are properly reflected. And
• Provides the information required by and otherwise comply with the Companies Act.
The directors confirm that the financial statements have been prepared on a going concern basis and are
of the view that sufficient funds and other resources are available within the company and its subsidiaries
to continue its operations and to facilitate planned future expansions and capital commitments.
Further, the Directors ensure that the Company maintains sufficient accounting records to disclose, with
reasonable accuracy the financial position of the Company.
The Directors are also responsible for taking reasonable steps to safeguard the assets of the company and
in this regard to give proper consideration to the establishment of appropriate internal control systems with
a view to preventing and detecting fraud and other irregularities.
The directors are required to prepare the financial statements and to provide the auditors with every
opportunity to take whatever steps and undertake whatever inspections that maybe considered being
appropriate to enable them to give their audit opinion.
The Directors are of the view that they have duly discharged their responsibilities as set out in this statement.
Compliance Report
The Directors confirm that to the best of their knowledge and belief that all statutory payments in relation to
regulatory and statutory authorities that were due in respect of the company and its subsidiaries as at the
balance sheet date have been duly paid where relevant provided for.
By order of the Board
Anilana Hotels & Properties Ltd
Corporate Advisory Services (Pvt) Ltd.
Secretaries to the Company
29th August 2014
67
68
69
70
Statement of Comprehensive Income
(Expressed in Sri Lankan Rupees)
Group
FOR THE YEAR ENDED 31 MARCH
Revenue
Note
3
Cost of Sales
Gross Profit
Other Income
4
Administrative Expenses
Business Promotion Expenses
Profit / (Loss) from Operation
2014
Company
2013
2014
2013
76,741,863
1,504,087
-
-
(34,456,841)
(488,639)
-
-
42,285,022
1,015,448
-
-
2,092,552
1,490,634
2,092,552
1,490,634
(262,116,403)
(109,974,632)
(123,453,457)
(97,546,508)
(16,073,585)
(2,901,505)
(12,058,071)
(2,901,505)
(233,812,414)
(110,370,054)
(133,418,977)
(98,957,379)
50,415,799
(3,349,532)
50,469,132
(3,349,532)
Net Gain / (Loss) from Financial Assets at Fair Value through Profit
or Loss
Net Finance Cost
5
(124,767,602)
(49,826,187)
(34,218,803)
(47,839,210)
Profit / (Loss) Before Taxation
6
(308,164,217)
(163,545,773)
(117,168,648)
(150,146,120)
Income Tax Expense
7
(900,000)
(908,552)
(900,000)
(700,000)
(309,064,217)
(164,454,325)
(118,068,648)
(150,846,120)
(309,064,209)
(164,452,232)
(118,068,648)
(150,846,120)
Profit / (Loss) for the Year
Attributable to - Equity holders of the Parent
Attributable to - Non-Controlling Interest
Basic Earnings / (Loss) Per Share (Rs.)
Profit / (Loss) for the Year
Other Comprehensive Income
Net Acturial Gain on Retirement Benefits Obligation
Total Comprehensive Income / (Expense) for the Year
Attributable to - Equity holders of the Parent
Attributable to - Non-Controlling Interest
8
(8)
(2,093)
-
-
(309,064,217)
(164,454,325)
(118,068,648)
(150,846,120)
(0.83)
(0.49)
(0.32)
(0.45)
(309,064,217)
(164,454,325)
(118,068,648)
(150,846,120)
5,014,748
-
3,943,654
-
(304,049,469)
(164,454,325)
(114,124,994)
(150,846,120)
(304,049,461)
(164,452,232)
(114,124,994)
(150,846,120)
(8)
(2,093)
-
-
(304,049,469)
(164,454,325)
(114,124,994)
(150,846,120)
Audit Report on Page 70
Figures in brackets indicate deductions
Notes to the Financial Statements on Pages 76 to 99 form an integral part of these Financial Statements.
71
72
10
11
12
14
Intangible Assets
Leasehold Land
Investment in Subsidiaries
Available-for-Sale (AFS) Financial Assets
Total Equity
Non - Controlling Interest
Attributable to Equityholders of the Parent
Retained Earnings (at debit)
Revaluation Reserve
Stated Capital
Equity
EQUITY AND LIABILITIES
Total Assets
21
20
Cash and Cash Equivalents
Total Current Assets
18
19
17
Trade and Other Receivables
Other Non-Financial Assets
16
Financial Assets at Fair Value through Profit or Loss
(FVTPL)
Other Financial Assets
15
Inventories
Current Assets
Total Non-Current Assets
9
Note
Property, Plant and Equipment
Non-Current Assets
ASSETS
AS AT 31 MARCH
3,102,427,582
(1,060)
3,102,428,642
(710,579,521)
717,115,313
3,095,892,850
5,489,373,109
388,922,805
7,825,794
-
3,874,219
250,943,072
98,032,271
28,247,450
5,100,450,303
12,000,000
-
33,559,556
4,776,636
5,050,114,111
2014
Group
2,912,067,452
(1,052)
2,912,068,503
(406,530,060)
717,115,313
2,601,483,250
4,904,407,633
338,479,445
9,802,752
34,721,212
1,359,926
280,046,024
12,549,531
-
4,565,928,189
36,125,120
-
34,891,556
5,857,365
4,489,054,148
2013
2,894,780,809
-
2,894,780,809
(432,602,314)
231,490,273
3,095,892,850
4,569,768,583
1,260,365,830
2,178,334
-
1,645,736
1,159,456,156
97,085,604
-
3,309,402,753
12,000,000
1,263,373,960
-
4,776,636
2,029,252,157
2014
Company
2,514,496,203
-
2,514,496,203
(318,477,320)
231,490,273
2,601,483,250
3,914,859,350
1,020,193,453
3,173,851
34,721,212
1,200,677
969,548,181
11,549,531
-
2,894,665,896
36,125,120
1,263,373,950
-
5,857,365
1,589,309,461
2013
73
23
Retirement Benefits Obligation
24
25
20
Trade and Other Payable
Other Non-Financial Liabilities
Bank Overdrafts
5,489,373,109
903,809,558
88,359,563
4,167,199
516,768,354
294,514,443
1,483,135,969
1,567,406
1,481,568,563
2014
Group
4,904,407,633
946,009,608
291,593,958
1,914,353
463,100,758
189,400,538
1,046,330,574
5,190,609
1,041,139,965
2013
Date : 06 August 2014.
....................................................
M. C. Seneviratne
Director
……...............................................
A. C. Seneviratne
Director
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,
………………………
M. V. Perera
Head of Finance
805,219,435
88,359,563
3,135,264
462,032,165
251,692,443
869,768,340
1,168,901
868,599,439
2014
827,874,629
291,593,958
1,329,132
404,146,001
130,805,538
572,488,517
4,112,134
568,376,383
2013
3,914,859,350
Company
4,569,768,583
I Certify that these Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 07 of 2007.
Total Equity and Liabilities
Total Current Liabilities
22
Borrowings - (Current Portion)
Current Liabilities
Total Non - Current Liabilities
22
Note
Borrowings - (Non-Current Portion)
Non - Current Liabilities
AS AT 31 MARCH
Statement of Changes in Equity for the Year Ended 31st March 2014
Attributable to Equityholders of the Parent
Stated Capital
Revaluation
Reserve
Retained
Earnings
(at debit)
Non-Controlling
Interest
Total Equity
2,470,058,250
717,115,313
(242,077,828)
1,041
2,945,096,776
131,425,000
-
-
-
131,425,000
-
-
(164,452,232)
(2,093)
(164,454,324)
2,601,483,250
717,115,313
(406,530,060)
(1,052)
2,912,067,452
494,409,600
-
-
-
494,409,600
Loss for the Year
-
-
(309,064,209)
(8)
(309,064,217)
-
-
5,014,748
-
5,014,748
3,095,892,850
717,115,313
(710,579,521)
(1,060)
3,102,427,582
Group
Balance as at 01 April 2012
Issuance of Shares
Loss for the Year
Balance as at 31 March 2013
Issuance of Shares
Stated Capital
Revaluation
Reserve
2,470,058,250
231,490,273
(167,631,200)
2,533,917,323
131,425,000
-
-
131,425,000
-
-
(150,846,120)
(150,846,120)
2,601,483,250
231,490,273
(318,477,320)
2,514,496,203
494,409,600
-
-
494,409,600
Loss for the Year
-
-
(118,068,648)
(118,068,648)
-
-
3,943,654
3,943,654
3,095,892,850
231,490,273
(432,602,314)
2,894,780,809
Company
Issuance of Shares
Loss for the Year
Issuance of Shares
Retained
Earnings
(at debit)
74
Total Equity
Attributable to
Equityholders
of Parent
Statement of Cash Flows for the Year Ended 31st March 2014
Group
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
2014
Company
2013
2014
2013
Cash Flows from Operating Activities
Profit / (Loss) Before Taxation
(308,164,217)
(163,545,773)
(117,168,648)
(150,146,120)
71,357,349
2,838,411
3,224,824
2,813,901
Amortization of Intangible Assets
1,080,728
1,080,728
1,080,728
1,080,728
Amortization of Leasehold land
1,332,000
1,332,000
-
-
Adjustments for;
Depreciation
Gratuity Charge for the Year
1,391,545
4,019,705
1,000,421
2,941,230
Net Gain / (Loss) from Financial Assets at Fair Value through Profit
or Loss
(50,415,799)
3,349,532
(50,469,132)
3,349,532
Interest Expenses
129,607,993
28,315
39,052,887
28,315
(4,840,392)
(4,067,514)
(4,834,084)
(4,067,514)
(158,650,792)
(154,964,596)
(128,113,003)
(143,999,928)
Interest Income
Operating Loss Before Working Capital Changes
Changes in Working Capital
(28,247,450)
-
-
-
Inventories
29,102,957
408,125,462
(189,907,975)
(119,682,486)
(2,514,293)
148,422
(445,059)
148,435
Other Non-Financial Liabilities
Cash Generated from / (used in) Operations
Taxes Paid
Interest Paid
Net Cash Flow from / (used in) Operating Activities
1,352,841
861,931
906,132
526,710
53,667,591
311,068,181
57,886,164
309,648,774
(105,289,146)
565,239,400
(259,673,742)
46,641,506
-
(208,552)
-
-
(129,607,993)
-
(39,052,887)
-
(234,897,139)
565,030,848
(298,726,629)
46,641,506
(632,417,311)
(1,639,409,342)
(443,167,520)
(813,463,783)
(10,941,820)
15,257,284
(10,941,820)
15,257,284
-
(1,358,464)
-
(1,358,464)
Cash Flows from Investing Activities
Acquisition of Property, Plant and Equipment / Incurred on WIP
Net Proceeds from Investments In Shares
Acquisition of Intangible Assets
Interest Received
Net (Investments in) / Withdrawal of Fixed Deposits
Net Cash used in Investing Activities
-
-
(10)
-
4,840,392
4,067,514
4,834,084
4,067,514
34,721,212
(3,622,609)
34,721,212
(3,622,609)
(603,797,528)
(1,625,065,617)
(414,554,054)
(799,120,057)
334,000,000
Cash Flows from Financing Activities
Net Proceeds from Loans
545,542,504
649,358,582
421,109,961
Lease Rentals Paid
-
(58,146)
-
(58,146)
Issuance of Shares
494,409,600
131,425,000
494,409,600
131,425,000
1,039,952,104
780,725,436
915,519,561
465,366,854
201,257,437
(279,309,333)
202,238,878
(287,111,697)
(281,791,206)
(2,481,874)
(288,420,107)
(1,308,409)
(80,533,769)
(281,791,206)
(86,181,229)
(288,420,107)
Net Cash Flow from Financing Activities
Net Changes in Cash and Cash Equivalents During
the Year
Cash and Cash Equivalents at Beginning of the Year
Cash and Cash Equivalents at End of the Year
(Note 20)
75
Notes to the Financial Statements
for the Year Ended 31 March 2014
1 CORPORATE INFORMATION
1.1 Reporting Entity
Anilana Hotels & Properties PLC is a Company incorporated and domiciled in Sri Lanka. The Registered office of the Company is located at
14, Reid Avenue, Colombo 07.
The consolidated financial statements of the company as at and for the year ended 31 March 2014 comprise the Company and its Subsidiaries.
The group has eight (8) subsidiaries and sub-subsidiaries.
1.2 Nature of Operations and Principal Business Activities
The Company’s Principal Activities are Developing Hotels and Properties.
1.3 Date of Authorization for Issue
The Financial Statements of Anilana Hotels & Properties PLC for the year ended 31 March 2014 was authorized for issue in accordance with
a resolution of the Board of directors on 06 August 2014.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of Preparation
The consolidated financial statements of Anilana Hotels and Properties PLC have been prepared in accordance with Sri Lanka Accounting
Standards (SLFRSs). The preparation of financial statements in conformity with Sri Lanka Accounting Standards (SLFRSs) requires the use
of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the group accounting
policies. The areas involving a higher degree of judgments or complexity, or areas where assumptions and estimates are significant to the
financial statements are disclosed in note 2.23.
The consolidated financial statements have been prepared on the historical cost basis and apply consistently with no adjustments been
made for inflationary factors affecting the financial statements, except for the following material items in the statement of financial position:
• Lands are measured at revalued amounts.
• Fair Value through Profit & Loss – Financial Assets measured at fair value
• Defined benefit obligation are measured at its present values, based on the projected unit credit method.
These financial statements have been prepared on the basis that the company and the Group would continue as a going concern for the
foreseeable future.
2.1.1 New accounting standards, amendments and interpretations issued and adopted in 2013.
Amendments to LKAS 19, ‘Employee Benefit’, the Company and the Group adopted the amendment to LKAS 19 which is effective from the
financial year beginning on or after 1 January 2013.
Amendments include additional disclosures to explain the characteristics of the Company’s and the Group’s defined benefit plans, the
amounts recognized in the financial statements and the risks arising from defined benefit plans as disclosed in note 23 to the financial
statements.
2.1.2 Sri Lanka Accounting Standards (SLFRS/LKAS) issued but not yet effective
Standards issued but not yet effective up to the date of issuance of the financial statements are listed below. The group intends to adopt
those standards when they become effective.
a. SLFRS 9-Financial Instruments: SLFRS 9 as issued reflects the replacement of LKAS 39 and applies to recognition, classification and
measurement of financial assets and financial liabilities as defined in LKAS 39. The standard is effective for annual periods beginning on or
after 1 January 2015.
b. SLFRS 10-Consolidated Financial Statements: SLFRS 10 replaces the portion of LKA 27 consolidated and separate financial statements
that addresses the accounting for consolidated financial statements. SLFRS 10 will require management to exercise significant judgment to
determine which entities are controlled, and therefore are required to be consolidated by a parent, compared with the requirements that were
in LKAS 27. This standard becomes effective for annual periods beginning on or after 1 January 2014.
Notes to the Financial Statements continued
76
c. SLFRS 12 Disclosure of Interests in Other Entities: SLFRS 12 includes all of the disclosures that were previously in LKAS 27 related
to consolidated financial statements, as well as all of the disclosures that were previously included in LKAS 31 and LKAS 28. These
disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates. This standard becomes effective for annual periods
beginning on or after 1 January 2014.
d. SLFRS 13-Fair Value Measurement: SLFRS 13 establishes guidance for all fair value measurements and disclosures. The group is
currently assessing the impact that this standard will have on the financial position and performance. This standard becomes effective for
annual periods beginning on or after 1 January 2014.
2.2 Changes in Accounting Policies
The changes in accounting policies set out below have been applied consistently to the periods presented in the condensed financial
statements unless otherwise indicated. The presentation and classification of the consolidated financial statements of the previous year
have been amended, where relevant, for better presentation and to be comparable with those of the current year.
2.3 Foreign Currency Translation
2.3.1 Functional and Presentation Currency
Transaction and balances included in the financial statements of the Group are measured using the currency of the primary economic
environment in which the entity operates. The financial statements are presented in Sri Lanka Rupees (LKR), which is the company’s
presentation currency.
2.3.2 Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates
of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of comprehensive income.
Translation differences related to changes in amortized cost are recognized in the statement of comprehensive income.
2.4 Basis of Consolidation
2.4.1 Business Combination
The Business combinations are accounted for using the acquisition method as at the acquisition date – i.e. when control is transferred to the
Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing
control, the Group takes into consideration potential voting rights that are currently exercisable.
When the group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date when control is lost,
with the change in carrying amount recognized in profit or loss. In addition, any amounts previously recognized in other comprehensive
income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities are reclassified to
profit or loss.
Subsidiaries
Subsidiaries are entities controlled by the group. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases. In the Company’s financial statements, investments in
subsidiaries are carried at directors’ valuation less impairment if any.
Non-controlling Interest
The Group elects the proportionate share of the recognized amount of the identifiable net assets, at the acquisition date to measure noncontrolling interest.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as transactions with owners in their
capacity as owners. Adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary
2.4.2 Transactions Eliminated on Consolidation
Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in
preparing the Consolidated Financial Statements. Unrealized gains arising from transactions with equity accounted investees are eliminated
against the investment to the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized
gains, but only to the extent that there is no evidence of impairment.
77
2.4.3 General
Adjustments required to the accounting policies of subsidiaries have been changed where ever necessary to align them with the policies
adopted by the group.
The Financial Statements of all subsidiaries in the Group have a common financial year which ends on March 31.
Investments in subsidiaries in the separate financial statements of the group are accounted at deemed cost less impairment as elected
and optional exemption at the date of transition. Deemed cost is adjusted to reflect changes in consideration arising from contingent
consideration amendments. Cost also includes directly attributable costs of investment.
2.5 Property, Plant and Equipment
2.5.1 Recognition and Measurement
All the item of property, plant and equipment are initially recorded at cost. Where items of property, plant and equipment are subsequently
revalued, the entire class of such assets is revalued. Revaluations are made with sufficient regularity to ensure that their carrying amounts
do not differ materially from their fair values at the reporting date.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self- constructed assets includes the
following.
• The cost of materials and direct labour
• Any other costs directly attributable to bringing the assets to a working condition for their intended use;
• When the group has an obligation to remove the asset or restore the site, an estimate of the cost of dismantling and
removing the items and restoring the site on which they are located; and
• Capitalized borrowing costs
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment.
Subsequent to the initial recognition of the assets at cost, the revalued property, plant and equipment are carried at revalued amounts less
accumulated depreciation thereon and accumulated impairment losses. The Group applies revaluation model to freehold Lands and cost
model to the remaining assets under property, plant and equipment which are stated at historical cost less accumulated depreciation less
accumulated impairment losses, if any.
2.5.2
Revaluation of Freehold Properties
The freehold Lands of the Group are carried at revalued amounts. Revaluation of these assets are carried out at least once in five (5) years
in order to ensure the book value every year reflect the realizable value of such assets.
When an asset is revalued, any increase in the carrying amount is credited directly to a revaluation surplus unless it reverses a previous
revaluation decrease relating to the same asset, which was previously recognized as an expense. In these circumstances the increase is
recognized as income to the extent of the previous write down. When an asset’s carrying amount is decreased as a result of a revaluation,
the decrease is recognized as an expense unless it reverses a previous increment relating to the asset, in which case it is charged against
any related revaluation surplus, to the extent that the decrease does not exceed the amount held in the evaluation surplus in respect of
that same asset. Any balance remaining in the revaluation surplus in respect of an asset, is transferred directly to accumulated profits on
retirement or disposal of the asset.
2.5.3 Subsequent costs
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the Group and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the statement of
comprehensive income during the financial period in which they are incurred.
2.5.4 Depreciation
Items of property, plant and equipment are depreciated from the date they are available for use or, in respect of self-constructed assets,
from the date that the asset is completed and ready for use.
78
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straightline basis over their estimated useful lives. Depreciation is recognized in profit or loss. Leased assets are depreciated over the shorter of
the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land
is not depreciated.
The estimated useful lives for the current year of property, plant and equipment are as follows.
Assets
Number of Years
Rates (%)
5 – 50
2 - 20
Land Development Cost (in Leasehold Land)
30
3.33
Road Ways
10
10
Plant and Machinery
5 - 20
5 - 20
Computer & IT Equipment
4 - 20
5 - 25
Pool Complex
Buildings
10 - 25
4 - 10
Curtains and Fabrics
5
20
Kitchen Equipment
5
20
Office / Electric Equipment
4 - 10
10 - 25
Furniture & Fittings
4-5
20 - 25
5
20
Motor Vehicles
Depreciation of an asset begins when it is available for use whereas depreciation of an asset ceases at the earlier of the date that the asset
is classified as held for sale and the date that the asset is derecognized.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
2.5.5 Disposal
The gains or losses arising on disposal or retirement of an item of property, plant and equipment are determined by comparing the proceeds
from disposal with the carrying amount of the property, plant and equipment are recognized within other income in the statement of
comprehensive income. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings.
2.5.6 Capital Work-in-Progress
Capital work-in-progress represents the accumulated cost of materials and other costs directly related to the construction of an asset. Capital
in progress is transferred to the respective asset accounts at the time it is substantially completed and ready for its intended use.
2.6 Intangible Assets
Acquired computer software is capitalized on the basis of the costs incurred to acquire and bring to use the specific software and systems.
Intangible assets acquired are stated at cost less accumulated amortization and accumulated impairment losses. These costs are amortized
over their estimated useful lives, as follows:
Computer Software and Systems 05 Years
Costs associated with maintaining computer software are recognized as an expense as incurred.
2.7 Leasehold Land
Land held under leases is initially measured at the total amount paid on lease term plus any initial direct cost incurred at the inception and
subsequently the leasehold land is measured at amortized cost. The value of leasehold land is amortized over the lease period.
79
Rate
Leasehold land 30 Years 3.33%
2.8 Impairment on Non-Financial Assets
At each end of reporting period, the Group reviews the carrying amounts of its property, plant and equipment and intangible assets to
determine whether there is any indication that those assets have impaired. If any such indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of
an individual asset, the Group determines the cash-generating unit and estimates the recoverable amount of the cash-generating unit to
which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of
the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the statement of
comprehensive income.
2.9 Financial Assets
(a) Classification
The group determines the classification of its financial assets at initial recognition and classifies its financial assets as follows:
I. Financial assets at fair value through profit or loss (FVTPL)
II. Loans and Receivables
III. Available for sale (AFS) Financial Assets
I. Financial assets at Fair Value through Profit or Loss (FVTPL)
Financial assets at FVTPL include financial assets that are either classified as held for trading or that meet certain conditions and are
designated at FVTPL upon initial recognition. Investments bought with the intention to sell in the near future are classified as held for trading.
II. Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans
and receivables are included in current assets, except for maturities greater than 12 months after the end of the reporting period, which are
classified as non-current assets.
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.
They are included in non-current assets unless the investment matures or management intends to dispose of it within 12 months of the end
of the reporting period.
The classification of the financial assets under above categories is given in Note 30 to the financial statements.
(b) Recognition and Initial Measurement
Financial assets classified as loans and receivables are recognized on the date on which the group originates the transaction. Other financial
assets are recognized on the trade-date on which the group becomes a party to the contractual provisions of the financial instrument.
A financial asset is measured initially at fair value plus, in the case of assets not at fair value through profit or loss, directly attributable
transaction costs. In case of financial assets at fair value through profit or loss, transaction costs attributable are recognized in profit or loss
as incurred.
Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and
the company has transferred substantially all risks and rewards of ownership of the financial assets.
80
(c) Subsequent Measurement
I. Financial assets at fair value through profit or loss (FVTPL)
Subsequent to initial recognition, the financial assets are re-measured at fair value. Changes in fair value are recorded in gain or losses
from financial asset at FVTPL in the Statement of Comprehensive Income.
II. Loans and receivables
Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, less provision
for impairment.
After initial recognition, quoted equity investment classified as AFS financial asset is measured at fair value. Changes in the fair value of
AFS financial asset are recognized in other comprehensive income and presented as available for sale reserve in the statement of changes
in equity. Unquoted equity investments, which are group’s strategic investments are measured at cost less any Impairment losses, as
currently its fair value cannot be estimated reliably.
2.10 Impairment of financial assets
Assets carried at amortized cost
The group assesses at the end of each reporting period whether there is objective evidence that a financial asset is impaired. A financial
asset is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that
occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash
flows of the financial asset that can be reliably estimated.
For loans and receivables carried at amortized cost, the amount of the loss is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at
the financial asset’s original effective interest rate. The carrying amount of the financial assets is reduced and the amount of the loss is
recognized in the statement of comprehensive income.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring
after the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in the statement of
comprehensive income.
The group assesses at the end of each reporting period whether there is objective evidence that a financial asset is impaired. For quoted
equity investments, a significant or prolonged decline in the fair value of the investments below its cost is also evidence that the assets are
impaired. If any such evidence exists for the quoted investments, the cumulative loss measured as the difference between the acquisition
cost and the current fair value, less any impairment loss previously recognized in profit or loss is reclassified from equity to profit or loss as
a reclassification adjustment. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available
for sale are reversed through profit or loss. The amount of reversal is recognized in the other comprehensive income.
For unquoted equity investments, a significant or prolonged decline in the value of the investments below its cost is also evidence that
the assets are impaired. If any such evidence exists for the unquoted investments, the amount of the impairment loss is measured as the
difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current
market rate of return for a similar financial asset. Such impairment losses are not reversed.
2.11 Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using weighted average cost method. The cost of
finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads computed
based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less the costs of
completion and selling expenses.
Consumables are stated at cost. Cost is determined on a weighted average basis. Consumables are comprised of spare parts, stationeries
and other general items which are used for consumption not for re-sale.
81
2.12 Cash and Cash Equivalents
In the consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with banks, other shortterm highly liquid investments with original maturities of three months or less.
2.13 Financial Liabilities
The group classifies financial liabilities into other financial liabilities. The other financial liabilities are recognized initially at fair value plus any
directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the
effective interest method.
The group derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired.
The items of the financial liabilities are given in Note 30 to the financial statements.
2.14 Trade Payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade
payables are classified as current liabilities if payment is due in the normal operating cycle of the business (within one year or less). If not,
they are classified as non -current liabilities.
Trade payables are recognized initially at fair value (transaction price) and subsequently measured at the transaction price as they are
expected to pay in the normal operating cycle of the business.
2.15 Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost using
the effective interest method.
Borrowing Cost
Borrowing costs directly attributable to acquisition, construction of qualifying assets, which are assets that necessarily take a substantial
period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready
for their intended use.
All other borrowing costs are recognized in the statement of comprehensive income in the period in which they are incurred.
2.16 Current and Deferred Tax
Current Tax in respect of the profits and Income of the Company is exempted for a period of fifteen (15) years reckoned from the year in which
the Company commences to make profits or any year of assessment not later than two (02) year reckoned from the date of commencement
of commercial activities or whichever year is earlier, as specified in BOI agreements dated 12 January 2012.
As per the BOI agreements subsidiaries namely Eastern Development Enterprises (Pvt) Ltd and Dambulla Hotel Resort and Country Club
(Pvt) Ltd are exempted from income tax for the period of fifteen (15) years and nine (9) years respectively. All other subsidiaries are liable for
income tax as per the Inland Revenue Act, No. 10 of 2006 and subsequent amendments thereto.
Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the
financial statements. Deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred tax is determined using
tax rates that have been enacted at the reporting period end date and are expected to apply when the related deferred tax asset is realized
or the deferred income tax liability is settled.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary
differences can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities
and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority.
Deferred taxation has not been recognized due to realization of the related future tax benefits / liabilities are insignificant and also not in near
future.
82
2.17 Employee Benefits
The group has both defined benefit and defined contribution plans.
a) Defined Contribution plan
A defined contribution plan is a post employment benefit plan under which the group pays fixed contributions into a separate entity. The group
has no legal or constructive obligations to pay further contributions. The contributions are recognized as employee benefit expense when
they are due.
The group contributes 12% on gross emoluments of employee to Employee Provident Fund (EPF) and 3% on gross emoluments of employee
to Employee Trust Fund (ETF).
b) Defined benefit plan
The group obligation in respect of defined benefit plan is the present value of the defined benefits obligation at the end of the reporting period.
The defined benefits obligation is calculated by independent actuaries using the projected unit credit method. The present value of the defined
benefits obligation is determined by discounting the estimated future benefit that employee have earned in return for their services in the
current and prior period.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in
other comprehensive income in the period in which they arise.
The group will remeasure the define benefit obligation when the amounts recognized in the financial statements will differ materially from the
amount that would be determine at the end of the reporting period.
Past service costs are recognized immediately in the statement of comprehensive income.
The retirement benefits obligation is not externally funded.
c) Short-term employee benefit
Short-term employee benefit obligations are measured on an undiscounted amount expected to be paid for related services provided by the
employee.
2.18 Contingent Liability and Contingent Assets
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because
it is not probable that an outflow of resources will be required to settle the obligation.
A contingent liability also arises in extremely rare cases where there is a liability that cannot be measured reliably. The Group does not
recognize a contingent liability but discloses its existence in the Financial Statements.
A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of
one or more uncertain future events beyond the control of the company. The company does not recognize contingent assets but discloses its
existence where inflows of economic benefits are probable, but not virtually certain.
2.19 Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for services rendered,
stated net of Value Added Taxes (VAT), Nation Building Tax (NBT) and Tourist Board Levy (TDL) (if liable for revenue taxes). The company
recognizes revenue when the amount of revenue can be reliably measured and when it is probable that future economic benefits will flow to
the company.
83
The group applies the revenue recognition criteria set out below to each identifiable major types of revenue.
(a) Apartment, Food & Beverage Sales
Apartment revenue is recognized on the rooms occupied on a daily basis, and food and beverage are accounted for at the time of sales.
(b) Rendering Services
Revenue arises from services rendered is recognized in the period in which the services are rendered based on completion of services
and assessed on the basis of the actual services rendered.
(c) Interest income
Interest income is recognized using effective interest method for all interest bearing financial assets.
(d) Gain and Losses on Disposal of Property, Plant and Equipment
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statement
of comprehensive income.
(e) Other income
Other income is recognized on accrual basis.
2.20 Expenses
All expenditure incurred in the running of the operation has been charged to income in arriving at the profit for the reporting period.
2.21 Events Occurring after the Reporting Period
All material events after the reporting period have been considered and where appropriate adjustments or disclosures have been made in the
respective notes to the financial statements.
2.22 Commitments
All material commitments at the reporting period end have been identified and disclosed in the notes to the financial statements.
2.23 Significant Accounting Estimates and Judgments
When preparing the financial statements, management undertakes a number of judgments, estimates and assumptions about the recognition
and measurement of assets, liabilities, income and expenses.
2.23.1 The following are significant judgments in applying the accounting policies that have most significant effect on the financial statements.
(a) Recognition of Deferred Tax Assets
The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against
which the deferred tax assets can be utilized.
2.23.2 Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets,
liabilities, income and expenses is provided below:
(a) Useful life time of Depreciable Assets
Management reviews its estimate of the useful life time of depreciable assets at each reporting date, based on the expected economic utility of
the assets. Uncertainties in these estimates relate to technical obsolescence that may change the utility of certain software and IT equipment.
(b) Defined benefit plan
The present value of the defined benefit plan obligations depends on a number of factors that are determined on actuarial valuation method
using a number of assumptions. The assumptions are used in determining the net cost and obligation for defined benefit plan including the
discount rate disclosed in the note 23. Any changes in these assumptions will impact the carrying amount of defined benefit obligation.
84
Group
2014
Company
2013
2014
2013
3 Revenue
Accommodation
48,114,457
1,477,112
-
-
Food
22,711,342
26,975
-
-
Beverage
1,988,663
-
-
-
3,927,402
76,741,863
1,504,087
-
-
2,092,552
1,490,634
2,092,552
1,490,634
4,840,392
4,067,514
4,834,084
4,067,514
4,840,392
4,067,514
4,834,084
4,067,514
On Lease
22,894
28,315
22,894
28,315
On Loans
110,371,525
25,766,614
20,211,972
25,766,614
Other
4 Other Income
Dividend Income
5 Net Finance Cost
Interest Income
From Call Deposits and Repo's
Interest Expenses
On Overdraft
19,213,574
28,098,772
18,818,021
26,111,794
129,607,993
53,893,701
39,052,887
51,906,724
124,767,602
49,826,187
34,218,803
47,839,210
6 Profit Before Taxation
Profit Before Taxation is arrived at after charging all expenses including the following.
Auditors' Remuneration
588,699
599,250
405,824
323,676
Directors' Remuneration
-
275,000
-
275,000
Staff Costs
87,134,102
60,131,003
64,630,153
54,359,327
Defined Contribution Plan Costs - EPF / ETF
8,821,848
5,228,094
5,890,121
5,112,332
Defined Benefit Plan Cost - Retiring Gratuity
1,000,421
4,019,705
1,000,421
2,941,230
Depreciation
70,161,700
2,828,411
3,224,824
2,813,901
Amortization of Leasehold Lands
2,992,012
1,332,000
-
-
Amortization of Intangible Assets
1,080,728
1,080,728
1,080,728
1,080,728
900,000
908,552
900,000
700,000
7 Income Tax Expense
Charge / Provision for the Year
Reconciliation between the taxable profit / (loss) with the accounting profit / (loss) has not been provided as the difference between the accounting
profit / (loss) and the taxable profit / (loss) is not significant. The above current tax provision is for tax liable other income of the group.
7.1 Deferred Taxation
The unrecognised deferred tax assets at the reporting dates are;
The Category of the Temporary Differences
Group
2014
Arising from Carried Forward Tax Losses
Arising from Retirement Benefits Obligation
Company
2013
2014
2013
106,551,464
23,844,757
106,507,782
60,815,712
438,874
1,453,370
327,292
1,151,398
106,990,338
25,298,127
106,835,074
61,967,110
85
8 Basic Earnings / (Loss) Per Share (Rs.)
Group
2014
Amount used as the Numerator
Profit / (Loss) Attributable to Ordinary Shareholders ( Rs.)
Number of Ordinary Shares used as the
Denominator
Weighted Average Number of Ordinary Shares
Basic Earnings / (Loss) Per Share (Rs.)
2013
Company
2014
2013
(309,064,209)
(164,452,232)
(118,068,648)
(150,846,120)
374,428,330
335,750,429
374,428,330
335,750,429
(0.83)
(0.49)
(0.32)
(0.45)
The calculation of Basic Earnings / (Loss) per share has been done based on profit / (Loss) after tax attributable to the equity shareholders of
the parent company for the year divided by the weighted average number of ordinary shares in issues as at 31 March 2014.
86
87
-
-
-
2,345,699,401
4,390,284
96,229,014
3,315,883,150
Motor Vehicles
Furniture & Fittings / Office / Electric
Equipment
Capital Work-in-Progress
2,826,564
65,961,028
Pool Complex / Curtains and Fabrics /
Kitchen Equipment
2,143,354,747
4,489,054,148
1,734,230,961
5,050,114,111
6,094,856.33
-
2,176,728
-
2,059,000
-
2,332,542,253
2013
75,239,685
71,357,349
3,882,336
3,391,122,835
980,468,407
61,072,691
2,349,581,737
Total
26,299,337
2,332,542,253
2014
21,125,226
20,421,966
703,260
117,354,240
104,485,592
9,338,824
3,529,824
Furniture & Fittings
/ Office / Electric
Equipment
40,603,371
(Note 9.1)
4,132,576
1,704,572
2,428,004
8,522,860
-
-
8,522,860
Motor Vehicles
Computers and IT Equipment
10,673,328
10,673,328
-
76,634,356
74,561,742
2,072,614
Pool Complex
/ Curtains and
Fabrics / Kitchen
Equipment
Plant and Machinery
3,109,274
2,358,201
751,073
29,408,611
1,984,444
24,496,367
2,927,800
Computers and
IT Equipment
40,936,183
2,555,773
2,555,773
-
43,159,144
41,970,497
1,188,647
Plant and
Machinery
Land Development and Roadways
4,283,123
4,283,123
-
45,219,306
38,848,718
4,311,588
2,059,000
Land
Development
Land Roadways
708,921,679
29,360,386
29,360,386
-
738,282,065
718,617,414
19,664,651
Buildings
Buildings
Land
Net Carrying Values
Charge for the Year
Depreciation
2,332,542,253
-
-
Transferred form WIP
2,332,542,253
Land
Additions
Cost
Group
9 Property, Plant and Equipment
88
Capital Work-in-Progress
Land and Roadways
Computer
Motor Vehicles
Furniture and Fittings
Office Equipment
Net Carrying Values
Charge for the Year
Depreciation
Additions
Cost
Land
-
563,042,253
563,042,253
9 Property, Plant and Equipment Cont.…
Company
751,073
792,725
1,543,798
2,927,800
262,800
3,190,600
Computers and
IT Equipment
2,428,004
1,704,572
4,132,576
8,522,860
8,522,860
Motor Vehicles
(Note 9.1)
295,341
312,991
608,332
1,564,956
1,564,956
Furniture and
Fittings
563,042,253
2,176,728
6,094,856
1,269,615
1,262,539
573,845,991
1,015,463,471
1,589,309,461
2013
2014
563,042,253
1,646,802
4,390,284
956,624
893,146
570,929,109
1,458,323,048
2,029,252,157
3,857,825
3,224,824
7,082,650
577,703,816
307,943
578,011,759
Total
383,408
414,536
797,944
1,645,947
45,143
1,691,090
Office Equipment
FOR THE YEAR ENDED 31 MARCH 2014
9.1
Capital Work-in-Progress-Buildings
Group
Additions
Transferred
10
Intangible Assets
Computer Hotel Property
Software
Management
System
Company
2,143,354,747
1,015,463,471
571,344,620
442,859,577
(980,468,406)
-
1,734,230,961
1,458,323,048
Accounting
System
Total
3,133,916
6,938,093
Group / Company
Cost
Additions
1,364,677
2,439,501
-
-
-
-
1,364,677
2,439,501
3,133,916
6,938,093
247,481
484,090
349,157
1,080,728
247,481
484,090
349,157
1,080,728
494,963
968,180
698,314
2,161,457
2014
2013
869,714
1,117,195
Amortization
Charge for the Year
Net Carrying Values
Computer Software
11
Hotel Property Management System
1,471,320
1,955,411
Accounting System
2,435,602
2,784,759
4,776,636
5,857,365
Prepaid Leasehold Land
Group
2014
2013
40,000,000
40,000,000
-
-
40,000,000
40,000,000
5,108,444
3,776,444
Cost
Balance as at 01 April
Addition
Balance as at 31 March
Amortization
Charge for the year
Net Carrying Value
1,332,000
1,332,000
6,440,444
5,108,444
33,559,556
34,891,556
The Subsidiary Company (Eastern Development Enterprises (Pvt) Ltd) entered into an Agreement (No. 47 dated 25/06/2009) with Tourism
Development Authority of Sri Lanka to acquire a Land on lease terms. The land was allocated to the Company for a lease period of 30 years
commencing from 01 June 2009 and ending on 31 May 2039. Therefore, the initial cost (Rs. 40,000,000/-) of the land is amortized over the
lease period of 30 years at the rate of 3.33% per annum.
89
12
Company
2013
No. of Shares
South Asia Asset Management (Pvt) Ltd
% of Holding
9,000,001
100
661,930,120
661,930,120
Vakarei Hotel (Pvt) Ltd
36,800,000
100
368,000,000
368,000,000
Dambulla Hotel & Country Club (Pvt) Ltd
23,244,382
49
232,443,820
232,443,820
1
100
10
10
100,000
100
1,000,000
1,000,000
1
100
Eastern Development Enterprises (Pvt) Ltd
Anilana Resorts (Pvt) Ltd
Panichchankerni Hotels Ltd
14
2014
10
-
1,263,373,960
1,263,373,950
Group / Company
(Note 14.1)
Unquoted Shares
2014
2013
12,000,000
36,125,120
-
24,125,120
12,000,000
12,000,000
12,000,000
36,125,120
14.1 Investments Made in Unqouted Shares
Millennium Housing Development Ltd
Nation lanka Promotions Ltd
AFS unquoted investments comprise group’s strategic investments which are measured at cost less impairment charges since, its fair
value cannot be reliably measured.
15
Inventories
Group
2014
2013
2,404,781
-
House Keeping
11,709,366
-
Consumables
14,133,303
Food and Beverage
28,247,450
16
Financial Assets at Fair Value through Profit or Loss
(FVTPL)
Investments in Quoted Shares
(Note
16.1)
Group
-
Company
2014
2013
2014
2013
98,032,271
12,549,531
97,085,604
11,549,531
12,549,531
43,156,347
11,549,531
42,156,347
16.1 Analysis of the Investments
Additions
10,941,820
-
10,941,820
-
Transferred form Unquoted shares
24,125,120
-
24,125,120
-
-
(27,257,284)
-
(27,257,284)
Net Changes in Fair Values
50,415,799
(3,349,532)
50,469,132
(3,349,532)
98,032,271
12,549,531
97,085,604
11,549,531
Disposals
90
17
Trade Receivables
Deposits and Advances
Amounts Due from Related Parties
Others
17.1 Deposits and Advances
Refundable Deposits
Rents
Others
Group
2014
(Note 17.1)
(Note 17.2)
2013
Company
2014
2013
945,348
17,091,552
218,387,123
14,519,049
250,943,072
9,801,614
258,219,869
12,024,541
280,046,024
17,091,552
1,127,957,062
14,407,541
1,159,456,156
9,243,081
948,280,558
12,024,541
969,548,181
1,911,250
4,080,000
11,100,302
17,091,552
1,911,250
1,680,000
6,210,364
9,801,614
1,911,250
4,080,000
11,100,302
17,091,552
1,911,250
1,680,000
5,651,831
9,243,081
107,863,160
452,000
26,186,406
1,938,747
279,680
43,329
46,671
6,156,854
91,200
69,779,589
1,049,486
4,500,000
218,387,123
109,188,160
50,523,591
22,286,406
79,680
43,329
46,671
5,222,958
69,779,589
1,049,486
258,219,869
107,863,160
842,989
686,574,278
126,408,655
91,082
2,195,527
72,479,999
21,986,406
1,938,747
279,680
43,329
46,671
6,156,854
91,200
260,387
69,779,589
1,049,486
4,500,000
25,369,022
1,127,957,062
109,188,160
803,300
562,471,864
124,086,878
31,717,842
55,100
2,152,690
23,309,056
18,086,406
79,680
43,329
46,671
5,222,958
187,550
69,779,589
1,049,486
948,280,558
1,528,187
541,047
1,804,985
3,874,219
1,359,926
1,359,926
1,645,736
1,645,736
1,200,677
1,200,677
-
34,721,212
-
34,721,212
7,825,794
7,825,794
9,802,752
9,802,752
2,178,334
2,178,334
3,173,851
3,173,851
(88,359,563)
(291,593,958)
(88,359,563)
(291,593,958)
(80,533,769)
(281,791,206)
(86,181,229)
(288,420,107)
17.2 Amounts Due from Related Parties
Ceylinco Investments Corporation Ltd
Blue Lagoon Hotel (Pvt) Ltd
Eastern Development Enterprises (Pvt) Ltd
Anilana Resort (Pvt) Ltd
Investor Access Equities (Pvt) Ltd
Asia Fort Asset Management (Pvt) Ltd
South Asia Asset Management (Pvt) Ltd
Vakarei Hotel (Pvt) Ltd
Dambulla Hotels & Country Club (Pvt) Ltd
Leader Holdings (Pvt) Ltd.
Nation lanka Promotion Ltd
Anilana Security Ltd
Keraton International Ltd
Luma Plus Ltd
Tropical Foliage Ltd
Anilana Tropical Foliage Ltd
East Wind Resort (Pvt) Ltd
Moghul Fund (Pvt) Ltd
AIO Investment (Pvt) Ltd
Nation Lanka Equities Ltd
Panichchankerni Hotels Ltd
18
19
20
Prepaid Expenses
Value Added Tax (VAT)
Withholding Tax (WHT)
Other Financial Assets
Fixed Deposits
Favorable Balances
Cash at Bank and in Hand
Unfavorable Balances
Bank Overdrafts
Total for the Purposes of Cash Flow
Statement
91
21
Stated Capital
Issued and Fully Paid,
Group / Company
Issuance of Ordinary Shares
22
No. of Shares
2014
2013
342,483,600
329,341,100
41,200,800
13,142,500
383,684,400
342,483,600
2014
2,601,483,250
494,409,600
3,095,892,850
2013
2,470,058,250
131,425,000
2,601,483,250
2014
Group
2013
2014
Company
2013
Long-Term Borrowings
Value
Borrowings - Non-Current Portion
Bank Borrowings
Lease Obligations
(Note 22.1)
(Note 22.2)
1,481,479,261
89,302
1,481,568,563
1,040,998,582
141,383
1,041,139,965
868,510,137
89,302
868,599,439
568,235,000
141,383
568,376,383
Borrowings - Current Portion
Bank Borrowings
Lease Obligations
(Note 22.1)
(Note 22.2)
294,409,502
104,941
294,514,443
1,776,083,007
189,360,000
40,538
189,400,538
1,230,540,503
251,587,502
104,941
251,692,443
1,120,291,882
130,765,000
40,538
130,805,538
699,181,921
1,230,358,582
545,530,181
1,775,888,763
581,000,000
699,358,582
(50,000,000)
1,230,358,582
699,000,000
421,097,639
1,120,097,639
365,000,000
384,000,000
(50,000,000)
699,000,000
1,481,479,261
294,409,502
1,775,888,763
1,040,998,582
189,360,000
1,230,358,582
868,510,137
251,587,502
1,120,097,639
568,235,000
130,765,000
699,000,000
22.1 Bank Borrowings
Movement of Borrowings
Obtained During The Year
Settlements Made
Non-Current Portion
Current Portion
22.2 Finance Lease Payables
Group / Company
Analysis of Finance Lease Obligation by the Year of Re-payments
Current Portion
Non-Current Portion
Current Portion
Lease Creditors
Interest Allocated to Future Periods
Non-Current Portion
Lease Creditors
Interest Allocated to Future Periods
22.3
2013
104,941
89,302
194,243
40,538
141,383
181,921
121,578
(16,637)
104,941
63,432
(22,894)
40,538
100,434
(11,132)
89,302
169,152
(27,769)
141,383
Assets Pledged as Securities
Assets Pledged as Securities by the company and the subsidiary companies are as follows.
Lending Institution
Company
Sampath Bank PLC
PAN Asia Bank PLC
People’s Bank
92
2014
Type of
Loan Facility
Facility Limit
Utilised / Outstanding
Term Loan
Rs 750 Mn
Rs 750 Mn
Term Loan
Rs 57 Mn
Rs 57 Mn
Term Loan
Rs 200 Mn
Rs 108Mn
Securities
Primary mortgage bond for Rs 315 Mn over freehold land owned by Anilana
Hotels & Properties Ltd together with buildings thereon with the extent of
5A:0R:3P at Nilaveli.
Mortgage over free hold property for Rs 100 Mn owned by Blue Lagoon Hotel
Resort (Pvt) Ltd.
Primary mortgage over 02 properties situated in Panichankerni. Corporate
guarantee of Eastern Development Enterprises (Pvt) Ltd.
Assets Pledged as Securities Contd…
Lending Institution
Type of Loan Facility
23
Facility Limit
Utilized / Outstanding
Securities
Subsidiaries
Sampath Bank PLC
Term Loan
Rs 491 Mn
Rs 491 Mn
Primary mortgage bond for Rs 216 Mn and Secondary mortgage
bond for Rs 100 Mn over lands in extent of 6 Acres depicted in
Plan No. 3380 and 6 Acres depicted in Plan No. 3371 situated at
Passikudah Estate, Batticaloa together with buildings thereon.
National Development Bank PLC
Term Loan
Rs 350 Mn
Rs 142 Mn
Primary mortgage for Rs 350 Mn over free hold land owned by
Dambulla Hotel Resorts & Country Club (Pvt) Ltd together with
buildings thereon with extent 39A:2R:5.25P at Dambulla.
Retirement Benefits Obligation
Group
2014
Expenses Recognized in Comprehensive Income
Actuarial (Gain) / Losses Recognized in
(Note 23.1)
23.1 Recognized in Comprehensive Income
Current Service Cost
Interest Cost for the Year
(Gain) / Loss Arising from Changes in the
Assumptions
23.2
Company
2013
2014
2013
5,190,609
1,391,545
1,170,904
4,019,705
4,112,134
1,000,421
1,170,904
2,941,230
(5,014,748)
1,567,406
5,190,609
(3,943,654)
1,168,901
4,112,134
898,437
493,108
-
2,676,907
111,236
1,231,562
609,768
390,653
-
1,598,432
111,236
1,231,562
1,391,545
4,019,705
1,000,421
2,941,230
The Principal Actuarial Valuation Assumptions used are as follows
Group / Company
2014
2013
Discount Rate [%]
Salary Escalation Rate [%]
Retirement Age [Yrs]
Staff Turnover Factor [%] - up to 50 Years
9.5
10
55
8 and thereafter
Zero
-
In addition to the above, demographic assumptions such as mortality, withdrawal and disability are considered for the actuarial valuation. The 2007 mortality table issued by the London Institute
of Actuaries (A 1967/70 mortality table) has also been used in the valuation.
23.3
The sensitivity of the present value of retirement benefits obligation to changes in the weighted principal assumptions by 1% are:
Discount Rate [%]
Salary Escalation Rate [%]
Group
Increase in 1%
Decrease 1%
(8.91)
8.53
8.81
(9.43)
Company
Increase in 1%
Decrease 1%
(8.38)
8.05
8.33
(8.88)
23.4 Maturity profile of the defined benefit obligation
Weighted Average Duration of the retirement benefit obligation is 7.09 years and average time to payout is 7.88 years.
The distribution of the timing of benefit payments is;
Over 2 years and Less than or equal 5 Year
Over 5 years and Less than or equal 10 Year
Over 10 years
Group
Company
413,001
951,201
203,204
1,567,406
397,131
615,399
156,371
1,168,901
The group has changed its basis used to measure the retirement benefits obligation to projected unit credit method using qualified actuarial consultant for the reporting period 2014 in compliance with LKAS 19 'Employee Benefit".
The present value of the retirement benefits obligation of previous reporting period have been determined using the projected unit credit method (by using gratuity formula method).
93
Group
Company
2014
2013
2014
2013
24 Trade and Other Payable
Trade Payable
Other Payables
Advance Received
Retention
Construction Payable
Amounts Due to Related Parties
Others
(Note 24.1)
24.1 Amounts Due to Related Parties
Asia Fort Asset Management (Pvt) Ltd
Nation Lanka Finace PLC
Asia Financial Management Ltd
Investor Access Equities (Pvt) Ltd
Directors' Current Accounts
25 Other Non-Financial Liabilities
Accrued Expenses
Current Tax Payable
22,722,754
-
-
-
166,830,439
37,129,945
148,816,693
120,088,151
21,180,372
494,045,599
516,768,354
186,893,591
43,750,157
135,778,501
96,361,815
316,693
463,100,758
463,100,758
159,569,904
29,552,801
121,919,397
138,886,087
12,103,976
462,032,165
462,032,165
186,051,642
29,552,801
135,778,501
52,446,363
316,693
404,146,001
404,146,001
31,794,165
10,941,820
48,700,000
28,507,353
144,813
120,088,151
2,794,363
500,000
48,700,000
44,367,452
96,361,815
31,794,165
10,941,820
48,700,000
47,450,102
138,886,087
3,246,363
500,000
48,700,000
52,446,363
3,267,199
900,000
4,167,199
1,914,353
1,914,353
2,235,264
900,000
3,135,264
1,329,132
1,329,132
Estimated Cost
Cost incurred in
Prior Periods
1,490,000,000
948,360,639
50,000,000
2,488,360,639
1,015,463,471
147,422,870
1,162,886,341
Estimated Cost
Cost incurred in
Prior Periods
1,490,000,000
1,015,463,471
26 Commitments
Details of capital commitments as at 31 March 2014 are as follows;
Description
Group
Hotel Construction at Nilaweli
Hotel Construction at Dambulla
Hotel Construction at Passikuda - (Spa and Gym)
Description
Cost incurred DurCost to be Incurred
ing the Period
428,235,658
56,707,733
20,250,520
505,193,911
46,300,871
744,230,036
29,749,480
820,280,387
Cost incurred Dur- Cost to be Incurred
ing the Period
Company
Hotel Construction at Nilaweli
428,235,658
46,300,871
Other Commitments
There were no material commitments, financial or other contracted or consented by the Board of Directors as at 31 March 2014 other than disclosed above.
27 Events Occurring after Reporting Period
There are no material events after the reporting period that require adjustments to or disclosure in financial statements.
28 Contingent liabilities
There were no material Contingent Liabilities as at the Reporting
period end.
29 Related Party Disclosure
Related Party Disclosures are as follows;
Transaction with Key Management Personnel
The key Management Personnel of the group are the members of Board of Directors.
Key Management Personnel Compensation
Group
2014
2014
2013
Short-Term Employee Benefits - Directors' Remuneration
-
275,000
-
275,000
Directors' Current Accounts
-
(44,367,452)
-
-
94
Company
2013
95
Mr. A.C.Seneviratne
Transaction With Other Related Entities
Mr. A.C.Seneviratne
Mr. M.C. Seneviratne
Mr. P.L.Amerasinghe
Name of the Common
Directors'
Transactions with Subsidiaries
Transaction Category
29 Related Party Disclosure Contd…
Related Through the
Common Directors
Subsidiary
Relationship
Recoveries of Receivables
Fund Transfers
Fund Received
Settlement of Expenses
Settlement of Capital Expenses
1,325,000
6,972,643
118,657,566
2,523,122
198,642,379
107,863,160
30,361,687
(90,186,087)
129,798,640
784,423,299
Nature of Transactions Value (Rs.) Amount Due from / (to)
30 Financial Instruments and Risk Management
The accounting classification of each category of financial instruments and their carrying amounts reported in the statement of financial
position are stated below.
The Carrying Values of Financial Assets and Liabilities.
Group
Note
Unquoted Shares
14
Company
2014
2013
2014
2013
12,000,000
36,125,120
12,000,000
36,125,120
12,549,531
97,085,604
11,549,531
250,943,072
7,825,794
280,046,024
34,721,212
9,802,752
1,159,456,156
2,178,334
969,548,181
34,721,212
3,173,851
258,768,866
324,569,988
1,161,634,490
1,007,443,244
The Available-for-Sale (AFS) investment is stated at cost as there is no active market for investments.
Financial Assets at Fair Value through Profit or Loss (FVTPL)
16
Quoted Shares
98,032,271
FVTPL investments are stated at fair value based on active market quoted price.
Loans and Receivables
Fixed Deposits
17
19
20
The loans and receivables are stated at carrying values as their carrying value approximates the fair value.
TOTAL FINANCIAL ASSETS
368,801,137
373,244,640
1,270,720,094
1,055,117,895
1,775,888,763
516,768,354
88,359,563
1,230,358,582
463,100,758
291,593,958
1,120,097,639
462,032,165
88,359,563
699,000,000
404,146,001
291,593,958
1,985,053,298
1,670,489,366
1,394,739,959
FINANCIAL LIABILITIES
Other Financial Liabilities
Borrowings
Bank Overdrafts
22.1
24
20
The financial liabilities are stated at amortized cost using the effective interest method.
TOTAL FINANCIAL LIABILITIES
96
2,381,016,680
30 Financial Instruments and Risk Management Contd….
Risk Management
30.1 Industry Risk
The group has an established risk management process and framework embedded in owned managed hotels in all locations. The long-term
strategic goals are aligned with the group’s core purpose identified as follows:
• Safety and security of guests, employees and other third parties
• The conceptual strengths supported by operational excellence in risk management at all hotels and corporate locations; and
• Maintenance and promotion of the brand strength and operation of the company
The group’s risk management strategy has been set to enable and support the decision makers, staff and corporate functions to manage risk
affectively. The risks are identified at hotel level through various means including quality audits, risk management assessments and internal audits.
Hotel management discusses issues at monthly safety meetings and action plans are developed. Risks are prioritized, assigned and improvement
actions are identified, progressed and monitored.
30.2 Financial Risk Factors
The group has exposure to the following risks from its use of financial instruments and the group applies various risk management strategies to
mitigate these risks from time to time.
1. Credit Risk
2. Liquidity Risk
3. Market Risk
The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development of the Group’s
business whilst managing these risks. The Group’s overall risk management strategy seeks to minimize adverse effects from the unpredictability of
financial markets on the Group’s financial performance. Mechanisms adopted by group in managing eventual impact of such risks are given below.
The financial instruments of the group comprise of listed / unlisted equity investments, investments in term deposits, cash and bank borrowings
(term loans, overdrafts and lease obligations). Certain companies in the group have trade receivables and payables from its core business
activities which are not significant in values at end of the reporting period. However, the major companies of the group has not been commenced
its operational activities during the year. The main purpose of investment in short-term deposits and borrowings is to raise and maintain liquidity
for construction and acquisition of capital assets. Investments in listed equity are held for trading purpose and investments in unlisted equity are
strategic investments.
1. Credit Risk
Credit risk is the risk of financial loss to the group if counterparty fails to meet its contractual obligations. Credit risk arises principally from deposits
held with banks and financial institutions, cash and cash equivalents (excluding cash in hand) and receivables from customers and related parties.
The maximum risk exposures of financial assets that are subject to credit risk are equal to their carrying amounts.
Following table depicts the maximum risk exposure of financial assets reported as at 31 March 2014.
Risk Exposure to Financial Assets
Cash and Cash equivalents
Group (Rs.)
Company (Rs.)
7,310,774
1,888,334
250,943,072
1,159,456,156
Credit risk arising from other financial assets of the group comprises deposits held with banks, cash and cash equivalents. The group’s exposure
to credit risk arises from default in meeting contractual obligations of contractual parties, with a maximum exposure equal to the carrying amount of
these financial instruments. The group manages its credit risks with regard to these financial instruments by mainly placing its funds with reputable
financial institutions with high credit ratings and no history of default.
97
30.2 Financial Risk Factors Contd…
2. Liquidity Risk
Liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due. The group’s approach to managing
liquidity is to ensure, as far as possible, that it will always have sufficient cash to meet its liabilities when due under both normal and
unexpected conditions without incurring unacceptable losses.
Groups actively managed its financing cash flows to ensure all refinancing, repayment and investment needs with regard to the construction
and acquisition of capital assets are satisfied.
The following table depicts the group’s financial assets and liabilities maturity analysis as at 31 March 2014 based on the remaining period
at the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows.
Company
Expressed in Sri Lankan Rupees
Financial Assets and
Carrying Amount
Liabilities
6 Months or
Less
6-12 Months
1-2 Years
More than 5
Years
2-5 Years
Financial Assets
AFS Financial Assets
12,000,000
-
-
-
-
12,000,000
Financial Assets at
Fair Value through
Profit or Loss
(FVTPL)
97,085,604
-
97,085,604
-
-
-
1,159,456,156
1,159,456,156
-
-
-
-
2,178,334
2,178,334
-
-
-
-
Interest Bearing
Borrowings
1,120,097,639
24,597,639
237,500,000
358,000,000
375,000,000
125,000,000
Trade and Other
Payables
462,032,165
432,032,165
-
-
-
-
88,359,563
88,359,563
-
-
-
-
Trade and Other
Receivables
Cash & Cash Equivalents
Financial Liabilities
Bank overdraft
Group
Financial Assets and
Liabilities
Expressed in Sri Lankan Rupees
Carrying Amount
6 Months or
Less
6-12 Months
1-2 Years
More than 5
Years
2-5 Years
Financial Assets
AFS Financial Assets
12,000,000
-
-
-
-
12,000,000
Financial Assets at
Fair Value through
Profit or Loss
(FVTPL)
98,032,271
-
98,032,271
-
-
-
250,943,072
250,943,072
-
-
-
-
7,825,794
7,825,794
-
-
-
-
Interest Bearing
Borrowings
1,775,888,763
60,673,181
237,500,000
569,119,527
691,679,291
216,916,764
Trade and Other
payables
516,768,354
516,768,354
-
-
-
-
88,359,563
-
88,359,563
-
-
-
Trade and Other
Receivables
Cash & Cash Equivalents
Financial Liabilities
Bank overdraft
98
30.2 Financial Risk Factors Contd…
3. Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates which will affect the group’s income or
the carrying value of holdings of financial instruments.
3.1 Currency Risk
The group has currency exposures arising from letter of credits (LC) and telegraphic transfer’s (TT) of US Dolor (USD) relating to construction
and acquisition of capital assets. A significant portion of costs incurred on capital work-in-progress are using LC’s and TT’s denominated in
USD.
As at end of the reporting date there are no outstanding balances of LC’s or TT’s.
3.2 Equity Price Risk
Please refer note 14 and 16 to the financial statements relating to the total assets base which is exposed to equity price risk.
Listed Equity
Management of the group monitors the mix of equity securities in its investment portfolio based on market indices, where concerned with the
timing of buy / sell decisions are well supported with structures in-house research recommendations. Major transactions within the portfolio
are subject to review and approval by the Board.
Unlisted Equity
Operations of these entities are subjected to continuous monitoring of the management to ensure that the operations of these companies are
met the expected industry standards, and thereby the returns.
3.2 Interest Risk
The group’s exposure to interest risk is the changes in market interest rates relate to the interest bearing borrowings with a fixed and floating
interest rate and bank deposits.
The group has bank balances including term deposits placed with reputable financial institutions with high credit ratings and no history of
default. The group monitors interest rate risk by actively monitoring interest rate movements.
30.3 Capital Management
The group manages its capital for safeguarding the group’s ability to continue as a going concern in order to provide maximum returns for
shareholders and to maintain an optimal capital structure to reduce the cost of capital. The group monitors capital structure on the basis of the
gearing ratio. The gearing ratio is calculated as total borrowings by total equity. Total borrowings include non-current and current borrowings as
shown in the statement of financial position. Following table depicts the group’s total borrowing and equity ratio as at 31 March 2014 and 2013.
Class of Capital
31 March 2014
Group
31 March 2013
Company
Group
Company
Total Borrowings
1,864,442,569
1,208,651,445
1,522,134,461
990,775,879
Total Equity
3,102,427,582
2,894,780,809
2,912,067,452
2,514,496,203
60%
41%
52%
39%
Gearing Ratio (%)
99
Shareholders & Investor Information
20 Major Shareholders as at 31st March 2014
Shareholder's name
No of Shares
%
MR. A C SENEVIRATNE
98,282,123
25.615
HSBC INTL NOMINEES LTD-BBH-GMOEMERGING MARKETS FUND
43,935,867
11.451
FIRST CAPITAL MARKETS LIMITED/ASIA FORT ASSET MANAGEMENT (PVT) LTD
28,600,000
7.454
MR. U H DHARMADASA
26,666,667
6.950
MRS. M C AMERASINGHE
20,000,001
5.213
INVESTOR ACCESS EQUITIES (PVT) LTD
19,267,441
5.022
PRIDELANDS LIMITED
15,114,667
3.939
MR. V R RAMANAN
13,142,500
3.425
ASIA FORT ASSET MANAGEMENT (PVT) LTD
10,416,424
2.715
FIRST CAPITAL MARKETS LIMITED/ANILANA COLLECTION (PVT) LTD
10,000,000
2.606
MR. O E H KALVO
9,857,109
2.569
MAS CAPITAL (PRIVATE) LIMITED
6,666,667
1.738
MR. H H A CHANDRASIRI
5,027,803
1.310
JANASHAKTHI LIMITED ACCOUNT NO.1
5,000,000
1.303
MRS. S M SENEVIRATNE
4,533,333
1.182
PERSHING LLC S/A AVERBACH GRAUSON & CO.
4,440,000
1.157
MR. A K M A KHAN
4,083,400
1.064
PAN ASIA BANKING CORPORATION PLC/MR. MOHOTTALLAGE
NIHAL RANASINGHE
4,000,000
1.043
PAN ASIA BANKING CORPORATION PLC/MR. HIYARE HEWAGE
ARUNA CHANDRASIRI
3,370,834
0.879
CEYQUARIZ MBI (PVT) LTD
3,333,400
0.869
Sub Total
332,404,836
86.635
Other Shareholders
51,279,564
13.365
383,684,400
100.00
GRAND TOTAL
100
Shareholding
Distribution Of Shareholdings as at 31St March 2014
From
To
No. of Holders
No. of Shares
%
1
-
1,000
268
92,200
0.02
1,001
-
10,000
158
742,372
0.20
10,001
-
100,000
81
3,732,463
0.97
100,001
-
1,000,000
58
19,097,614
4.98
33
360,019,751
93.83
598
383,684,400
100.00
Over 1,000,000
Analysis of shareholders as at 31st March 2014
Category
No. of Shareholders
No. of Shares
%
Local Individuals
535
180,267,775
46.98
Local Institutions
47
107,328,582
27.97
Foreign Individuals
6
25,923,609
6.76
Foreign Institutions
10
70,164,434
18.29
598
383,684,400
100.00
Total
Directors’ holding in shares as at 31st March 2014
No. of Shares
Mr. P L Amerasinghe
Mr. A C Seneviratne
First Capital Markets Ltd/Mr A C Seneviratne
91,782,123
6,500,000
Mrs. M C Seneviratne
Mr. G B Wikramanayake
Mr. A G Punchihewa
%
966,667
0.252
98,282,123
25.615
20,000,001
5.213
Nil
Nil
40,000
0.010
Market price per share
Highest during the period
Rs.13.50
(17.07.2013)
Lowest during the period
Rs.6.70
(31.03.2014)
As at end of the period
Rs.7.10
Public Holding
The percentage of shares held by the public as at 31st March 2014 is 27.578%
101
Notice of Meeting
NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of ANILANA HOTELS AND PROPERTIES PLC will be held on 25th September
2014 at The Ceylon Chamber of Commerce, No. 50, Navam Mawatha, Colombo 02 at 1.30 PM for the following purposes:
1. To receive and consider the Report of the Directors and the Statement of Accounts for the year ended 31st March 2014 with the report of
the Auditors thereon.
2. Directors
(i) To re-elect Mr Ajahn Gardiye Punchihewa who retires by rotation at the Annual General Meeting in terms of Article 81 of the Company’s
Articles of Association.
(ii) To re-appoint as a Director, Mr. Gamini Benedict Wikramanayake who is 81 years of age and who vacates his office in terms of Section
210 of the Companies Act No. 7 of 2007.
Notice is hereby given of the undernoted Ordinary Resolution in relation to Mr. Gamini Benedict Wikramanayake’s re-appointment to be passed
in compliance with Section 211 of the Companies Act No. 7 of 2007.
“RESOLVED THAT Mr. Gamini Benedict Wikramanayake who is 81 years of age be and is hereby re-appointed a Director of the Company and
it is hereby declared as provided for in section 211 of the Companies Act No. 07 of 2007, that the age limit of 70 years referred to in Section 210
of the said Companies Act shall not apply to the said Mr. Gamini Benedict Wikramanayake.”
(iii) To re-appoint as a Director, Mr. Peter Lucien Amerasinghe who is 70 years of age and who vacates his office in terms of Section 210 of
the Companies Act No. 7 of 2007.
Notice is hereby given of the undernoted Ordinary Resolution in relation to Mr. Peter Lucien Amerasinghe’s re-appointment to be passed in
compliance with Section 211 of the Companies Act No. 7 of 2007.
“RESOLVED THAT Mr. Peter Lucien Amerasinghe who is 70 years of age be and is hereby re-appointed a Director of the Company and it is
hereby declared as provided for in section 211 of the Companies Act No. 07 of 2007, that the age limit of 70 years referred to in Section 210 of
the said Companies Act shall not apply to the said Mr. Peter Lucien Amerasinghe.”
3. To re-appoint the retiring Auditors M/s Amarasekera & Co, Chartered Accountants to hold office until the conclusion of the next Annual
General Meeting and to authorize the Directors to determine their remuneration.
BY THE ORDER OF THE BOARD
ANILANA HOTELS AND PROPERTIES PLC
CORPORATE ADVISORY SERVICES (PRIVATE) LIMITED
SECRETARIES
Colombo
29th of August 2014
102
Form of Proxy
I/We* the undersigned..............................................................................................................................................................................Of
...................................................................................................being a member/members of ANILANA HOTELS & PROPERTIES PLC
hereby appoint.............................................................................................................of................................................................................
..........................................................or failing him/her
Mr. P L Amerasinghe (Chairman of the Company)
Mr. A C Seneviratne (Managing Director)
Mrs. M C Seneviratne (Director)
Mr. G B Wikramanayake (Director)
Mr. A G Punchihewa (Director)
of Colombo or failing him
of Colombo or failing her
of Colombo
as my/our* proxy to vote as indicated hereunder for me/us* and on my/our* behalf at the Annual General Meeting of the Company to be
held on 25th September 2014 at The Ceylon Chamber of Commerce, No. 50, Navam Mawatha, Colombo 02 at 1.30 PM and at any adjournment
thereof, and at every poll which may be taken in consequence thereof.
Please indicate your preference by placing an ‘X’ against the Resolution No.
FOR
AGAINST
1. To receive and consider the Report of the Directors and the Statement
of Accounts for the year ended 31st March 2014 with the Report of
the Directors and Auditors thereon.
2. Directors
(i) To re-elect Mr Ajahn Gardiye Punchihewa Director who
retires by rotation in terms of Article 81 of the Articles of
Association of the Company.
(ii) To pass the Ordinary Resolution set out in the Notice of Meeting
pertaining to re-appointment of Mr. G B Wikramanayake who
is 81 Years of age, as a Director of the Company,
(iii) To pass the Ordinary Resolution set out in the Notice of Meeting
pertaining to re-appointment of Mr. P L Amerasinghe who
is 70 Years of age, as a Director of the Company,
3. Re-appoint the retiring Auditors M/s Amarasekera & Company, Chartered
Accountants to hold office until the conclusion of the next Annual General
Meeting and to authorize the Directors to determine their remuneration.
Signed this ………………….. day of ………….2014
* Please delete the inappropriate words
Notes:
1.
2.
3.
4.
………………………………………
Signature
If you wish your Proxy to speak at the Meeting you should insert the words “ to speak and” in the place indicated with an asterisk and
initial such insertion.
Please indicate with an “x” in the space provided how your Proxy is to vote. If there is in the view of the Proxy holder doubt (by reason of
the way in which the instructions contained in the Proxy have been completed) as to the way in which the Proxy holder should vote, the
Proxy holder shall vote as he thinks fit.
A Proxy holder need not be a member of the Company.
Instructions as to completion appear on the reverse hereof.
103
Instruction for Completion of Form of Proxy
1.
Kindly complete the Form of Proxy by filling in legibly your full name and address, and your instructions as to voting, by signing in the space provided
and filling in the date of signature.
2.
Please indicate with an “X” in the cages provided how your proxy is to vote on the Resolution If no indication is given or if there is any doubt as to how
the Proxy should vote by reason of the manner in which the instructions are carried out, the proxy in his/her discretion may vote as he/she thinks fit
3.
The completed Form of Proxy should be deposited at the Registered Office of the Company at No 14, Reid Avenue, Colombo 7, not less than 48 hours
before the time appointed for holding the meeting.
4.
If the Form of Proxy is signed by an attorney, the relative power of attorney should accompany the completed form of proxy for registration, if such
power of attorney has not already been registered with the Company.
Note: If the shareholder is a Company or body Corporate, Section 138 of the Companies Act No. 7 of 2007 applies to corporate shareholders of Anilana
Hotels and Properties PLC
Please furnish the following information:
Shareholder
104
OR
Proxy holder
NIC No./ Passport No.
……………………
……………………
Nationality
……………………
……………………
Share Certificate No.
……………………
……………………
No. of Shares:
……………………
……………………
Corporate Information
Name of the Company
Anilana Hotels & Properties PLC
Legal Form
Public Limited Company listed in July 2013 on the Colombo Stock
Exchange. (Incorporate as a Private Limited Liability Company on 19th
May 2010 under the Companies Act No. 17 of 1982 and converted
to a Public Limited Liability Company on 13th November 2010)
Directors
Peter L. Amerasinghe (Chairman)
Asanga C. Seneviratne (Managing Director)
Manjula C. Seneviratne (Director)
Gamini B. Wikramanayake (Director)
Ajahn Gardiye Punchihewa (Director)
Secretaries
Corporate Advisory Services (Pvt) Ltd
No.47, Alexandra Place, Colombo 07.
Tel: 94 11 2695782
Fax: 94 11 2695410
Email: [email protected]
Registered Office
No. 14, Reid Avenue, Colombo 07.
Tel: 94 11 2030900
Fax: 94 11 2673355
Email: [email protected]
Web: www.anilana.com
Hotels
- Pasikuda
- Craig Bank Nuwara Eliya
- Nilaveli
Bankers
Sampath Bank PLC
Hatton National Bank
People’s Bank
Pan Asia Bank
NDB Bank
Auditors
Amerasekera & Co.
Chartered Accountants
No. 12, Rotunda Gardens. Colombo 03.
a touch of paradise
www.anilana.com

annual report 2013 / 2014

Transcription

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