Waskaduwa Beach Resort : Interim Financial Statement for the Quarter ended 30.06.2022

Waskaduwa Beach Resort PLC

Interim Financial Statements For the Quarter Ended 30th June 2022

WASKADUWA BEACH RESORT PLC

CEO MESSAGE

Dear Shareholders,

It is with great pleasure that I share with you the interim financial statements of Waskaduwa Beach Resort PLC for the quarter ending 30th June 2022.

Overall, the Company recorded a revenue of Rs. 132 Mn (YoY 84%), Gross profit of Rs. 82 Mn (YoY 55%) and Loss After Tax Rs. 135 Mn for the quarter ending 30th June 2022. The hotel recorded 35% occupancy during the said quarter.Previous year's first quarter the hotel operated as a Intermediary care centre (ICC) in colloboration with Kings Hospitals Colombo and recorded a occupancy of 39 %.

However with the crisis situation in the country, most of the expenses and cost have increased sharply compared to previous year. Almost all food and beverage items increased over 300% and this has directly caused lower margins we had previously enjoyed since no major increase in selling price as we were unable to pass on most of the increases to the Srilankan travelers. Due to the lack of foreigners the company was not able to get the benefit of a higher exchange rate. Also with the continuous power cuts and shortage of fuel and also the increase in fuel prises, the hotel had to incur significant cost increase as generators had to be used on a daily basis for times ranging from 3 to 10 hours.

These factors have directly effected to the P&L of the Company hence Gross Profit margins dropped and at the same time operational expenses increasesd significantly for the quarter under review compared to previous year. Finance cost of the Company also increased drastically with the increase in interest rates over 100% compared to previous year.

Future Outlook

Eventhough inquiries for winter season is evident in the market most of our local and international agents are skeptical to confirm these bookings due to the current challengers faced by the industry stakeholders. Solutions need to be found to be addressed the fuel shortage immediately to convince international guests to decide travelling to srilanka. The Industry is expecting political stability in the country to ensure shortages of essencial commodities do not occur in the immediate future.

Thank You

Chandana Talwatte

Group CEO

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WASKADUWA BEACH RESORT PLC

STATEMENT OF COMPREHENSIVE INCOME

	Quarter Ended 30th June	Year Ended
	2022	2021	Increase /	31st March
	Unaudited	Unaudited	(Decrease)	Unaudited
	Rs.	Rs.	%	Rs.
Revenue from contract with customers	132,389,447	71,840,549	84%	350,847,137
Cost of sales	(49,919,053)	(18,560,933)	169%	(111,063,242)
	82,470,394	53,279,616	55%	239,783,895
Gross profit
Other income and gains	473,944	4,279,495	-89%	9,883,725
Administrative expenses	(68,659,381)	(57,911,384)	19%	(238,709,552)
Operating expenses	(64,185,992)	(33,916,944)	89%	(182,496,818)
Selling and marketing expenses	(3,293,450)	(720,386)	357%	(6,434,909)
	(53,194,485)	(34,989,603)	52%	(177,973,659)
Operating loss
Finance income	345,763	769,529	-55%	2,003,489
Finance expenses	(83,031,986)	(36,031,505)	130%	(159,009,019)
	(135,880,708)	(70,251,579)	93%	(334,979,189)
Loss before tax
Income tax expenses	(82,983)	(185,710)	-55%	(572,997)
	(135,963,691)	(70,437,289)	93%	(335,552,186)
Net loss for the period
Other comprehensive income/ (loss)
Other comprehensive income (loss) not to be
reclassified to profit or loss in subsequent periods:
Revaluation gain on land & building	-	-		-
Deferred tax effect on revaluation of land and building	-	-		-
Actuarial loss on defined benefit plan	-	-		(1,114,341)
Income tax effect on actuarial loss	-	-		156,008
Other comprehensive income for the year, net of tax	-	-		(958,333)
Total comprehensive loss for the year, net of tax	(135,963,691)	(70,437,289)		(336,510,519)
Basic/diluted loss per share	(0.24)	(0.13)		(0.60)

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WASKADUWA BEACH RESORT PLC

STATEMENT OF FINANCIAL POSITION

As at	30.06.2022	31.03.2022
			Unaudited	Unaudited
ASSETS	Rs.	Rs.
Non current assets	4,104,037,020
Property, plant and equipment	4,135,724,655
Intangible assets	222,640	312,641
			4,104,259,660	4,136,037,296
Current assets			32,771,474
Inventories			19,618,132
Trade and other receivables	22,056,332	28,755,477
Advance and prepayments	9,416,255	18,488,035
Tax receivables	5,649,917	5,732,900
Cash and cash equivalents	26,492,387	26,581,767
			96,386,365	99,176,311
Total assets			4,200,646,025	4,235,213,607
EQUITY AND LIABILITIES
Capital and reserves	2,901,702,750
Stated capital	2,901,702,750
Revaluation reserve	1,068,531,931	1,068,531,931
Accumulated losses	(2,319,309,489)	(2,183,345,798)
Total equity			1,650,925,192	1,786,888,883
Non-current liabilities	1,705,916,314
Interest bearing loans and borrowings	1,808,998,458
Other Payable - Related Parties	47,038,187	28,561,494
Deferred tax liability	172,930,180	172,930,180
Retirement benefit obligation	11,545,461	11,099,398
			1,937,430,142	2,021,589,530
Current liabilities	230,663,734
Trade and other payables	240,266,486
Interest bearing loans and borrowings	360,081,493	173,692,806
Contract liability	21,545,464	12,775,902
			612,290,691	426,735,194
Total equity and liabilities			4,200,646,025	4,235,213,607

These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

………..…………………

D. C. A. Sanadanayake Group Finance Manager

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

Signed for and on behalf of the Board by,

………..…………………	………..…………………
E.P.A.Cooray	S. A. Ameresekere
Director	Director
15th August 2022
Colombo

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WASKADUWA BEACH RESORT PLC

STATEMENT OF CHANGES IN EQUITY

		Stated Capital	Revaluation	Retained	Total
			Reserve	Earnings
		Rs.	Rs.	Rs.	Rs.
Balance as at 01 April 2021	2,901,702,750	1,068,531,931	(1,846,841,546)	2,123,393,135
Loss for the period	-	-	(70,437,289)	(70,437,289)
Balance as at 30	June 2021	2,901,702,750	1,068,531,931	(1,917,278,835)	2,052,955,846
Balance as at 01	April 2022	2,901,702,750	1,068,531,931	(2,183,345,798)	1,786,888,883
Loss for the period	-	-	(135,963,691)	(135,963,691)
Balance as at 30	June 2022	2,901,702,750	1,068,531,931	(2,319,309,489)	1,650,925,192
Note

The above figures are not audited

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