Palm Garden Hotels : Interim Financial Statements as at 30/09/22

PALM GARDEN HOTELS PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

					GROUP										COMPANY
	Three months ended					Period ended				Three months ended					Period ended
For the period ended 30 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'	%
	(Unaudited)		(Unaudited)				(Unaudited)		(Unaudited)				(Unaudited)		(Unaudited)				(Unaudited)		(Unaudited)
Revenue	296,139	140,675	>100	751,531	472,735	59	-	-			-	-
Less: cost of sales	(128,178)		(38,354)	>100		(256,755)		(120,431)	>100		-		-				-		-
Gross profit	167,961	102,320			494,776	352,304			-	-			-	-
Other income/(expenses)	(9,291)		3,378	(>100)		53,829		6,255	>100		496		471	5		909		194	>100
Profit before operating expenses	158,670	105,698			548,605	358,558			496	471			909	194
Operating expenses
Personnel costs	(152,221)	(129,852)	17	(300,102)	(260,088)	15	(11)	-			(11)	-
Depreciation and amortization	(273,570)	(205,282)	33	(568,862)	(416,976)	36	-	-			-	-
Administration & other operating cost	(203,301)		(157,946)	29		(412,911)		(314,994)	31		(1,518)		(1,263)	20		(2,895)		(2,360)	23
Results from operating activities	(470,422)	(387,383)			(733,270)	(633,501)			(1,034)	(792)			(1,998)	(2,166)
Net finance costs	(1,524,567)	(397,416)	>100	(3,062,824)	(830,726)	>100	(451,719)	(123,992)	>100	(787,762)	(243,003)	>100
Profit/(loss) before income tax expense	(1,994,989)	(784,799)			(3,796,094)	(1,464,227)			(452,753)	(124,785)			(789,760)	(245,169)
Income tax expense	-		-				-		-				-		-				-		-
Profit/(loss) for the period	(1,994,989)	(784,799)			(3,796,094)	(1,464,227)			(452,753)	(124,785)			(789,760)	(245,169)

Other Comprehensive Income

Revaluation of property, plant and equipment

Exchange gain from translation of foreign operations

Total Comprehensive Income for the period Profit/(loss) attributable to:

	-			-			-			-
215,306	(84,802)	(>100)	4,602,023	71,252	>100	-	-	-	-
215,306		(84,802)		4,602,023		71,252		-		-		-		-
(1,779,683)	(869,601)		805,928	(1,392,975)		(452,753)	(124,785)	(789,760)	(245,169)

Equity holders of the company	(1,125,036)	(418,000)	>100	(2,141,784)	(787,146)	>100	(452,753)	(124,785)	>100	(789,760)	(245,169)	>100
Non Controlling Interests	(869,953)		(366,799)	>100	(1,654,310)		(677,081)	>100	-		-		-		-
	(1,994,989)	(784,799)		(3,796,094)	(1,464,227)		(452,753)	(124,785)		(789,760)	(245,169)
Total Comprehensive income attributable to:
Equity holders of the company	(1,009,037)	(463,434)	>100	329,385	(748,983)	(>100)	(452,753)	(124,785)	>100	(789,760)	(245,169)	>100
Non Controlling Interests	(770,646)		(406,167)	90	476,543		(643,992)	(>100)	-		-		-		-
	(1,779,683)		(869,601)		805,928		(1,392,975)		(452,753)		(124,785)		(789,760)		(245,169)
Earnings/(loss) per share based on PAT (Rs.)	(26.00)	(9.66)		(49.50)	(18.19)		(10.46)	(2.88)		(18.25)	(5.67)

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PALM GARDEN HOTELS 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'
	(Unaudited)		(Unaudited)		(Audited)	(Unaudited)		(Unaudited)		(Audited)
Assets
Non Current Assets
Property, plant and equipment	63,570,905	38,565,151	55,750,413			-	-	-
Investment property	57,000	51,000	57,000			3,503,000	3,333,000	3,503,000
Intangible assets	33,779	97,714	35,593			-	-	-
Right to use assets	6,939,940	4,254,295	5,878,275			-	-	-
Investments in subsidiaries	-	-	-			4,194,018	4,194,018	4,194,018
Trading assets - Fair Value Through Profit or Loss	2,878	6,116	3,720			245	311	245
Investment securities	164,135		583,605		157,035			220		218,300		220
Total Non Current Assets	70,768,637	43,557,881	61,882,036			7,697,483	7,745,629	7,697,483
Current Assets
Inventories	112,543	58,035	68,445			-	-	-
Trade and other receivables	2,803,524	1,608,421	2,355,306			1,755	2,947	1,005
Current tax recoverable	429,290	280,309	371,649			13,367	13,367	13,367
Cash and cash equivalents	2,442,359		752,914		857,966			17,344		2,578		18,691
Total Current Assets	5,787,716		2,699,679		3,653,366			32,466		18,892		33,063
Total Assets	76,556,353	46,257,560	65,535,402			7,729,949	7,764,521	7,730,546
Liabilities and Equity
Equity
Stated capital	2,436,091	2,436,091	2,436,091			2,436,091	2,436,091	2,436,091
Reserves	18,197,378	10,131,797	15,726,208			1,769,503	1,912,208	1,769,503
Accumulated losses	(10,082,410)		(6,955,931)		(7,974,722)			(2,533,453)		(1,565,947)		(1,743,693)
Equity Attributable to equity holders	10,551,059		5,611,957		10,187,577			1,672,141		2,782,352		2,461,901
Non Controlling Interest	15,380,322		9,505,588		14,646,845			-		-		-
Total Equity	25,931,381	15,117,545	24,834,422			1,672,141	2,782,352	2,461,901
Liabilities
Non Current Liabilities
Loans and borrowings	16,233,769	8,818,172	9,911,450			-	-	-
Employee benefits	109,283	102,433	107,935			-	-	-
Deferred tax liabilities	4,885,047		2,993,230		4,381,183			63,046		-		63,046
Total Non Current Liabilities	21,228,099	11,913,835	14,400,568			63,046	-	63,046
Current Liabilities
Trade and other payables	24,605,400	16,382,253	19,848,002			5,268,869	3,730,569	3,985,433
Loans and borrowings	4,557,286	2,667,484	6,211,257			725,250	1,250,957	1,219,523
Current tax payable	101,555	102,178	97,908			643	643	643
Bank overdrafts	132,632		74,265		143,245			-		-		-
Total Current Liabilities	29,396,873		19,226,180		26,300,412			5,994,762		4,982,169		5,205,599
Total Liabilities & Equity	76,556,353		46,257,560		65,535,402			7,729,949		7,764,521		7,730,546
Net Assets per Share (Rs)	243.86	129.71	235.46			38.65	64.31	56.90

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 for and on behalf of the Board.

Sgd.	Sgd.
(Director)	(Director)
14 November 2022

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PALM GARDEN HOTELS PLC

STATEMENT OF CHANGES IN EQUITY

		Stated capital		Reserves		Retained		Non controlling		Total equity
				earnings		interest
GROUP		Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'
Balance as at 1 April 2021	2,436,091	10,093,634	(6,168,785)	10,149,581	16,510,521
Total comprehensive income for the year
Profit/(loss) for the period	-	-	(787,146)	(677,081)	(1,464,227)
Other comprehensive income
Revaluation of property, plant and equipment	-	-	-	-	-
Foreign currency translation differences of foreign operations		-		38,163		-		33,089		71,252
Balance as at 30 September 2021		2,436,091		10,131,797		(6,955,931)		9,505,589		15,117,546
Balance as at 1 April 2022	2,436,091	15,726,208	(7,974,723)	14,646,847	24,834,423
Total comprehensive income for the year
Profit/(loss) for the period	-	-	(2,141,784)	(1,654,310)	(3,796,094)
Other comprehensive income
Foreign currency translation differences of foreign operations	-	2,471,170	-	2,130,853	4,602,023
Other movements in equity
Investment in subsidiaries by NCI	-	-	-	291,029	291,029
Changes in ownership that do not resulted in change in control		-		-		34,097		(34,097)		-
Balance as at 30 September 2022	2,436,091	18,197,378	(10,082,410)	15,380,322	25,931,380
				Stated capital		Reserves		Retained		Total equity
						earnings
COMPANY				Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'
Balance as at 1 April 2021			2,436,091	1,912,207	(1,320,781)	3,027,517
Total comprehensive income for the year
Profit/(loss) for the period				-		-		(245,169)		(245,169)
Balance as at 30 September 2021				2,436,091		1,912,207		(1,565,950)		2,782,348
Balance as at 1 April 2022			2,436,091	1,769,503	(1,743,693)	2,461,901
Total comprehensive income for the year
Profit/(loss) for the period				-		-		(789,760)		(789,760)
Balance as at 30 September 2022			2,436,091	1,769,503	(2,533,453)	1,672,141

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PALM GARDEN HOTELS PLC

STATEMENT OF CASH FLOWS

	GROUP		COMPANY
For the period ended 30 September	2022	2021	2022	2021
	Rs.'000'		Rs.'000'		Rs.'000'		Rs.'000'
CASH FLOW FROM OPERATING ACTIVITIES
Profit before income tax expense	(3,796,094)	(1,464,227)	(789,760)	(245,169)
Adjustment for:
(Profit)/Loss on sale of property, plant and equipment	(500)	3	-	-
(Profit)/Loss on sale of intangible assets	-	814	-	-
Depreciation and amortization	584,195	416,976	-	-
Provision for gratuity	8,070	5,800	-	-
Investment income	-	(135)	-	-
Finance cost	3,158,191	879,658	787,788	243,012
Interest income	(95,366)	(48,526)	(30)	(11)
(Gain)/loss on FVTPL assets	(3,720)	(603)	-	728
Impairment of trade receivable	-		(2,406)		-		-
Operating profit before working capital changes	(145,224)	(212,646)	(2,001)	(1,440)
Working capital changes
(Increase)/decrease in accounts receivables & others	(505,859)	(16,898)	(749)	151
(Increase)/decrease in inventories	(44,098)	4,301	-	-
Increase/(decrease) in accounts payables	4,757,398		315,936		1,373		(1,931)
Cash generated from operations	4,062,218	90,693	(1,377)	(3,220)
Interest paid	(2,412,294)	(363,885)	-	-
Income tax paid	(3,473)	(1,849)	-	-
Gratuity paid	(6,720)		(4,680)		-		-
Net cash from /(used in) operating activities	1,639,731	(279,721)	(1,377)	(3,220)
CASH FLOW FROM INVESTING ACTIVITIES
Issue of shares by subsidiaries to NCI	291,029	-	-	-
Acquisition of property, plant and equipment	(1,872,641)	(340,558)	-	-
Proceed from the sale of property, plant and equipment	500	4,333	-	-
Sale proceeds from FVTPL asset	-	2,137	-	2,137
Interest received	95,366	48,526	30	11
Investment income received	-		135		-		-
Net cash flow from investing activities	(1,485,746)	(285,427)	30	2,148
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from interest bearing loans and borrowings	1,398,219	71,992	-	-
Repayment of interest bearing loans and borrowings	(822,546)	(311,918)	-	-
Fund transfers from/(to) ultimate parent	865,350		732,394		-		1,000
Net cash generated from financing activities	1,441,023		492,468		-		1,000
Net increase/(decrease) in cash & cash equivalents during the perio	1,595,008	(72,680)	(1,347)	(72)
Cash & cash equivalents at the beginning of the period	714,720		751,329		18,691		2,650
Cash & cash equivalents at the end of the period	2,309,728	678,649	17,344	2,578
Analysis of cash & cash equivalents at the end of the period
Cash at bank and in hand	2,442,359	752,914	17,344	2,578
Bank overdraft	(132,632)		(74,265)		-		-
	2,309,728	678,649	17,344	2,578

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