Eden Hotel Lanka : Interim Financial Statements as at 30/09/22

EDEN HOTEL LANKA PLC INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED

30TH SEPTEMBER 2022

EDEN HOTELS LANKA PLC
STATEMENT OF FINANCIAL POSITION
		GROUP				COMPANY
As at	30.09.2022	30.09.2021	31.03.2022		30.09.2022	30.09.2021	31.03.2022
	Rs.'000'	Rs.'000'	Rs.'000'		Rs.'000'	Rs.'000'	Rs.'000'
	(Un-audited)	(Un-audited)	(Audited)		(Un-audited)	(Un-audited)	(Audited)
Assets
Non Current Assets
Property, plant and equipment	54,420,276	30,789,859	47,459,346	5,305,121	3,458,049	4,957,139
Investment property	57,000	51,000	57,000	57,000	51,000	57,000
Right-of- use asset	6,936,079	4,249,934	5,874,014	-	-	-
Intangible assets	51,215	185,555	53,030	1,945	2,750	2,348
Investments in subsidiaries	-	-	-	5,955,604	6,110,604	5,955,604
Trading assets - fair value through profit or loss	2,633	5,805	3,474	2,633	5,805	3,474
Investment securities	163,915	365,304	156,815		36,161	237,957	29,061
Total Non Current Assets	61,631,118	35,647,458	53,603,679	11,358,464	9,866,165	11,004,626
Current Assets
Inventories	113,180	58,035	68,445	13,505	9,888	7,532
Loan due from related parties	419,027	396,250	419,790	646,744	623,966	647,506
Trade and other receivables	2,708,396	1,458,846	2,176,441	86,502	98,515	32,378
Current tax receivables	414,971	265,989	357,330	59,854	39,151	36,067
Cash and cash equivalents	2,397,956	747,793	838,301		65,486	91,097	80,760
Total Current Assets	6,053,530	2,926,913	3,860,307	872,091	862,617	804,243
Total Assets	67,684,648	38,574,371	57,463,986	12,230,555	10,728,782	11,808,869
Liabilities and Equity
Equity
Stated capital	5,808,000	5,808,000	5,808,000	5,808,000	5,808,000	5,808,000
Capital reserves	19,996,343	9,507,656	17,251,323	3,620,842	2,504,027	3,620,842
Revenue reserves	(9,759,722)	(5,941,883)	(7,385,141)		(6,437,369)	(4,097,997)	(5,048,892)
Equity Attributable to Shareholders	16,044,621	9,373,773	15,674,183		2,991,473	4,214,030	4,379,950
Non controlling interest	12,704,542	7,513,805	11,185,044		-	-
Total Equity	28,749,163	16,887,578	26,859,227	2,991,473	4,214,030	4,379,950
Liabilities
Non Current Liabilities
Loans and borrowings	15,130,619	9,249,421	12,188,123	527,232	527,232	527,232
Employee benefits	109,283	102,433	107,935	18,335	19,132	17,590
Deferred tax liabilities	4,822,001	2,993,230	4,318,137		604,500	404,732	604,500
Total Non Current Liabilities	20,061,904	12,345,084	16,614,195	1,150,067	951,096	1,149,323
Current Liabilities
Trade and other payables	14,597,737	8,295,554	11,140,363	6,497,638	4,826,509	5,162,667
Loans and borrowings	4,068,477	870,355	2,609,750	1,579,110	734,212	1,116,896
Current tax payables	100,912	101,534	97,205	570	2,935	34
Bank overdrafts	106,455	74,265	143,245		11,697	-	-
Total Current Liabilities	18,873,581	9,341,709	13,990,563	8,089,016	5,563,656	6,279,597
Total Liabilities & Equity	67,684,648	38,574,371	57,463,986	12,230,555	10,728,782	11,808,869
Net Assets per Share (Rs)	30.39	17.75	29.69	5.67	7.98	8.30

These Financial Statements have been prepared and presented in compliance with the requirements of the Companies Act No 07 of 2007.

sgd

Mrs. S.S. Kotakadeniya

Chief Financial Officer- LOLC Group

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

Approved and signed on behalf of the Board,

sgd	sgd
(Director)	(Director)
14th November 2022
Colombo

EDEN HOTELS LANKA PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

			GROUP						COMPANY
	Three months ended			Six months ended			Three months ended			Six months ended
For the period ended 30th September	2022	2021	Variance		2022	2021	Variance		2022	2021	Variance		2022	2021	Variance
	Rs.'000'	Rs.'000'	%		Rs.'000'	Rs.'000'	%		Rs.'000'	Rs.'000'	%		Rs.'000'	Rs.'000'	%
	(Un-audited)	(Un-audited)			(Un-audited)	(Un-audited)			(Un-audited)	(Un-audited)			(Un-audited)	(Un-audited)
Revenue	296,181	140,675	>100		751,531	472,735	59%		866	18,343	-95%		1,588	120,557	-99%
Cost of sales	(128,178)	(38,354)	(>100)		(256,755)	(120,431)	(>100)		(146)	(3,254)	-96%		(472)	(22,471)	-98%
Gross profit	168,003	102,321			494,776	352,304			720	15,089			1,116	98,087
Other income/(expenses)	(22,702)	1,826	(>100)		60,283	7,065	>100		582	3,956	(>100)		1,587	5,562	-71%
Profit before operating expenses	145,301	104,146			555,059	359,369			1,302	19,044			2,703	103,649
Operating expenses
Personnel costs	(152,209)	(129,852)	-17%		(300,090)	(260,088)	-15%		(30,140)	(26,918)	-12%		(59,119)	(50,977)	-16%
Depreciation and amortization	(273,370)	(205,233)	-33%		(568,462)	(416,876)	-36%		(29,250)	(22,623)	-29%		(45,000)	(45,216)	0%
Other operating expenses	(183,944)	(154,347)	-19%		(408,493)	(311,172)	-31%		(20,238)	(44,835)	55%		(43,398)	(90,131)	52%
Results from operating activities	(464,223)	(385,286)			(721,987)	(628,768)			(78,326)	(75,331)			(144,815)	(82,675)
Net finance income/(cost)	(1,041,342)	(273,357)	(>100)		(2,281,128)	(587,585)	(>100)		(558,514)	(125,575)	(>100)		(1,243,663)	(257,564)	(>100)
Profit/(loss) before income tax expense	(1,505,564)	(658,643)			(3,003,115)	(1,216,353)			(636,840)	(200,906)			(1,388,477)	(340,238)
Tax expense	-	-			-	-			-	-			-	-
Profit/(loss) after tax	(1,505,564)	(658,643)			(3,003,115)	(1,216,353)			(636,840)	(200,906)			(1,388,477)	(340,238)
Statement of Other Comprehensive Income
Profit/(loss) after tax	(1,505,564)	(658,643)			(3,003,115)	(1,216,353)			(636,840)	(200,906)	(>100)		(1,388,477)	(340,238)	(>100)
Other Comprehensive Income									-
Exchange gain/(loss) on translation of foreign operations	215,306	(84,803)	(>100)		4,602,022	71,252	(>100)						-
Total Comprehensive Income/(expenses)	(1,290,258)	(743,446)			1,598,907	(1,145,102)			(636,840)	(200,906)			(1,388,477)	(340,238)
Profit/(loss) attributable to:
Shareholders of the company	(1,207,028)	(492,755)	(>100)		(2,439,826)	(895,244)	(>100)		(636,840)	(200,906)	(>100)		(1,388,477)	(340,238)	(>100)
Non Controlling Interest	(298,537)	(165,887)	-80%		(563,289)	(321,110)	-75%		-	-			-	-
	(1,505,564)	(658,643)			(3,003,115)	(1,216,353)			(636,840)	(200,906)			(1,388,477)	(340,238)
Total Comprehensive income/(expenses) attributable to:
Shareholders of the company	(1,078,773)	(543,383)	-99%		305,193	(852,703)	(>100)		(636,840)	(200,906)	(>100)		(1,388,477)	(340,238)	(>100)
Non Controlling Interest	(211,486)	(200,063)	-6%		1,293,714	(292,399)	(>100)		-	-			-	-
	(1,290,258)	(743,446)			1,598,907	(1,145,102)			(636,840)	(200,906)			(1,388,477)	(340,238)
Earnings/(loss) per share (Rs)	(2.29)	(0.93)			(4.62)	(1.70)			(1.21)	(0.38)			(2.63)	(0.64)
	-	-						-	-

1. The Statement of Financial Position, the Statement of Profit or Loss and Other Comprehensive Income , Cash Flow Statement and Statement of Changes in Equity for the Group and the Company as at and for the period then ended 30th September 2022 are drawn up from unaudited accounts of the company and Its subsidiary companies and provide information as required by Colombo Stock Exchange and LKAS 34, "Interim Financial Reporting". Further , provisions of the Companies Act No 7 of 2007 has been considered in preparing these interim financial statements.
   The interim financial statements are presented in Sri Lanka Rupees (LKR) and all values are rounded to the nearest thousand except when otherwise indicated
   The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be comparable with those of the current period.
2. Accounting policies and methods of computation as stated in the Financial Statements for 2021/22 are followed in the preparation of these Interim Financial Statements.
3. Revenue includes accommodation sales for rooms occupied on daily basis, together with outlet sales and other income from hotel operations.
4. Other income represents other sources of income not shown under revenue.
5. All expenses related to management expenditure are fully provided for in these financial statements.
6. Valuation of financial assets and liabilities

		Group				Company
	Level 1	Level 2	Level 3		Level 1	Level 2	Level 3
	Rs.'000'	Rs.'000'	Rs.'000'		Rs.'000'	Rs.'000'	Rs.'000'
Fair Value hierarchy
As at 30th September 2022
Trading assets - Fair Value Through Profit or Loss	2,633			2,633
Investment securities		163,915				36,161
	2,633	163,915	-		2,633	36,161	-

Fair Value hierarchy

As at 30th September 2021

Trading assets - Fair Value Through Profit or Loss Investment securities

Group

Level 1	Level 2	Level 3
Rs.'000'	Rs.'000'	Rs.'000'
5,805
	365,304
5,805	365,304	-

Company

Level 1	Level 2	Level 3
Rs.'000'	Rs.'000'	Rs.'000'
5,805
	237,957
5,805	237,957	-

1. Going concern and macro-economic Impact
   In determining the basis of preparing the financial statements for the period ended 30th September 2022, based on available information, the management has formed reasonable judgement that the Group companies have adequate resources to continue its business operations for the foreseeable future monitoring its business performance and continuity by adopting risk mitigation initiatives at each company level.
2. Subsidiary Rights Issue
   Dolphin Hotels PLC, a subsidiary of Eden Hotel Lanka PLC, concluded its Rights Issue in the month of September 2022, raising Rs 632,429,540 additional capital, issuing 31,621,477 new shares at Rs 20 per share
   Hotel Sigiriya PLC, a subsidiary of Eden Hotel Lanka PLC, concluded its Rights Issue in the month of September 2022, raising Rs 351,540,000 additional capital, issuing 11,718,000 new shares at Rs 30 per share
3. There has been no material events occurring after the reporting date that require adjustment to or disclosure in these Interim Financial Statements except for followings
   Rights Issue - Serendib Hotels PLC
   With the view of strengthening the financial position while reducing the entity level debts, Serendib Hotels PLC, a subsidiary of Eden Hotel Lanka PLC, obtained the regulatory and shareholder approval for a Rights Issue
   Serendib Hotels PLC will issue three (03) new ordinary voting shares and three (03) new ordinary non-voting shares for every -one (01) existing ordinary voting share and non -voting share. With the expectation of raising additional capital of Rs 2,017,942,170, the Company will issue 226,544,214 new voting shares at Rs 7 per share and 108,033,168 new non-voting shares at Rs 4 per share. After the rights issue, Stated Capital of Serendib Hotels PLC will increase to Rs 2,931,063,864 with 302,058,952 voting shares and 144,044,244 non-voting odinary shares.

1. There is no contingent liabilities as at the reporting date that require disclosures in these Interim Financial Statements

EDEN HOTELS LANKA PLC

STATEMENT OF CHANGES IN EQUITY

							Foregin		Retained
	Stated capital		Revaluation		Fair Value		currency			Non Controlling		Total equity
					earnings
GROUP			reserve		reserve		translation			interest
	Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'
Balance as at 01st April 2021	5,808,000	8,048,034	142,531	1,274,550	(5,046,639)	7,806,204	18,032,680
Comprehensive income for the period
Net profit/(loss) for the period								(895,244)	(321,110)	(1,216,354)
Other comprehensive income
Exchange gain/(loss) on translation of foreign operations						42,541			28,711	71,252
Total Comprehensive Income	-		-		-		42,541		(895,244)		(292,399)		(1,145,102)
Balance as at 30th September 2021	5,808,000	8,048,034	142,531	1,317,091	(5,941,883)	7,513,805		16,887,578
Balance as at 01st April 2022	5,808,000	11,654,369	(200)	5,597,154	(7,385,141)	11,185,044	26,859,227
Comprehensive income for the period
Net profit/(loss) for the period								(2,439,826)	(563,289)	(3,003,115)
Other comprehensive income
Exchange gain/(loss) on translation of foreign operations						2,745,020			1,857,003	4,602,022
Total Comprehensive Income	-		-		-		2,745,020		(2,439,826)		1,293,714		1,598,907
Investments in subsidiary by NCI										291,029	291,029
Changes in ownership that do not resulted in change in control									65,245		(65,245)
Balance as at 30th September 2022	5,808,000	11,654,369	(200)	8,342,174	(9,759,722)	12,704,542	28,749,163
	Stated capital		Revaluation		Fair Value		Retained		Total equity
COMPANY		Reserve		reserve		earnings
	Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'
Balance as at 01st April 2021	5,808,000	2,361,496	142,531	(3,757,759)	4,554,268
Comprehensive income for the period
Net profit/(loss) for the period						(340,238)	(340,238)
Total comprehensive income for the year
-		-		-		(340,238)		(340,238)
Balance as at 30th September 2021	5,808,000		2,361,496		142,531		(4,097,997)		4,214,030	-
Balance as at 01st April 2022	5,808,000	3,621,042	(200)	(5,048,892)	4,379,950
Comprehensive income for the period
Net profit/(loss) for the period						(1,388,477)	(1,388,477)
Total comprehensive income for the year
-		-		-		(1,388,477)		(1,388,477)
Balance as at 30th September 2022	5,808,000		3,621,042		(200)		(6,437,369)		2,991,473

EDEN HOTELS LANKA PLC

STATEMENT OF CASH FLOWS

	GROUP	COMPANY
For the period ended 30th September	2022	2021	2022	2021
	Rs.'000'	Rs.'000'	Rs.'000'	Rs.'000'
CASH FLOW FROM OPERATING ACTIVITIES
Profit before income tax expense	(3,003,115)	(1,216,353)	(1,388,477)	(340,238)
Adjustment for:
Depreciation and amortization	568,462	416,876	45,002	45,216
Provision for gratuity	8,070	2,712	1,080	1,080
Interest cost	2,473,104	687,298	1,268,596	281,296
Interest income	(191,976)	(99,713)	(24,933)	(23,733)
(Gain)/loss on fair valuation of Other FVTPL instruments	841	(4,480)	841	(4,480)
Operating profit before working capital changes	(144,614)	(213,660)	(97,891)	(40,859)
Working capital changes
(Increase)/decrease in accounts receivables & others	(414,690)	(18,496)	(77,148)	(27,879)
(Increase)/decrease in inventories	(44,735)	4,301	(5,973)	2,494
Increase/(decrease) in accounts payables	377,806	508,076	65,887	(46,497)
Cash generated from operations	(226,234)	280,221	(115,126)	(112,741)
Interest paid	(40,824)	(106,101)	(40,824)	(13,767)
Gratuity paid	(6,721)	(4,682)	(336)	(246)
Net cash from /(used in) operating activities	(273,778)	169,438	(156,285)	(126,754)
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(1,006,409)	(342,612)	(392,582)	(1,864)
Interest received	17,833	894	17,833	894
Issue of shares by Subsidiaries to NCI	291,029	-
Net cash flow from investing activities	(697,546)	(341,718)	(374,748)	(970)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds/(Repayments) of long term loans	575,672	19,926	79,847	(5,500)
Funds received from/payment made to ultimate parent company	1,992,098	79,058	424,215	79,058
Net cash generated from financing activities	2,567,771	98,985	504,062	73,559
Net increase/(decrease) in cash & cash equivalents during the period	1,596,446	(73,297)	(26,971)	(54,165)
Cash & cash equivalents at the beginning of the period	695,055	746,824	80,760	145,262
Cash & cash equivalents at the end of the period	2,291,501	673,527	53,789	91,097
Analysis of cash & cash equivalents at the end of the period
Cash at bank and in hand	2,397,956	747,793	65,486	91,097
Unfavourable Bank Balances used for cash management purposes	(106,455)	(74,265)	(11,697)	-
	2,291,501	673,527	53,789	91,097