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ANNUAL

REPORT 2014/2015
A nilana , a name that evokes images of beauty,
tranquillity, and a touch of exclusivity. Our modern,
luxurious resorts are strategically placed in Sri Lanka’s
most pristine landscapes, which our loyal, ever growing
clientele is known to appreciate.

Our resorts have cleverly combined comfort with utility


and beauty with privacy; without foregoing the traditional
hospitality that Sri Lanka is renowned for. Anilana is a
place that provides rest and rejuvenation for even the
most weary traveller, a fact amply re-iterated by all our
satisfied and valued guests.

Luxurious holidays is our forte, combining impeccable


design with excellent service. Each of our resorts has
its own unique identity, but the common thread of
delectable cuisine, thoughtful service and comfortable,
stylish accommodations, bind us together as one entity.

We have one villa and two hotels in operation from 2013


to date. To further cement our presence in the hospitality
trade, we have two further hotels and several villas
currently under construction. Also, we are engaged in
numerous well-thought out development projects which
are currently underway, as we aim to be one of the key
players in Sri Lanka’s up-market tourist industry.
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Contents
Management Reviews
Chairman’s Message 08
Managing Director’s Message 10

Management Profiles
Board of Directors 12
Corporate Management Team 16

Anilana Properties
Anilana Pasikuda 18
Anilana Nilaveli 20
Anilana Craig Bank Nuwara Eliya 22
Accolades 24
Guest Feedback 25
Anilana Dambulla Country Club & Spa 26
Anilana Colombo 27
Anilana Panichchankerni 28
Anilana Selladiv Island 29
Anilana Blue Lagoon 30
Anilana Vakarai 31
Anilana Kalkuda 32

Integrated Management Discussion & Analysis


Management Discussion & Analysis 34
Operating Strategy & Review 38
Human Resources Development 42
Corporate Social Responsibility 46

Governance
Corporate Governance 48
Audit Committee Report 52
Remuneration Committee Report 53
Board of Directors on the Affairs of the Company 54

Financial Reports
Statement of Directors’ Responsibilities 56
Independent Auditor’s Report 58
Statement of Comprehensive Income 59
Statement of Financial Position 60
Statement of Changes in Equity 62
Cash Flow Statement 63
Notes to Financial Statements 64

Supplementary Information
Shareholder & Investor Information 88
Notice of Meeting 90
Form of Proxy 91

Corporate Information Inner


Back Cover

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Vision
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.

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Mission
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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in 2014, a 4.7% increase over the previous year.” It
continues to state that for the year 2015, international
tourism is expected to grow by 3% to 4%, which in
turn is expected to assist global economic recovery.
China has been the world’s largest outbound market
Chairman’s Message
since 2012, with outbound trips from China having
increased by 11 million in 2014 in comparison to the
previous year, whilst travel from Russia has decreased
6% in 2014.

International tourist arrivals in Asia and the Pacific


increased 5 % last year, bringing the total number
of regional travelers to 263 million. Even more
promisingly, in 2014, South Asia has recorded an
increase of 7% in international tourist arrivals.

Local tourism trends

There has been a rapid increase in tourist arrivals


in Sri Lanka in 2014 and this trend is expected to
continue in 2015, despite two consecutive elections
and a fast changing environment. There have been
over 1.52 million tourist arrivals recorded in 2014,
and the Government’s target of 2 million tourists for
2015 definitely seems to be within reach, as already
from January to July 2015 over 1 million international
travellers have visited our golden isle. When analysing
tourist arrivals further, the highest number of tourist
arrivals country-wise, both in 2014 and 2015, have
been from India, China and the United Kingdom. In
March 2015 the Sri Lanka Tourism Promotion Bureau
has launched an aggressive promotional campaign
amounting to Rs 1.2 billion, which is hoped to bring
in a further influx of international travellers, and in
accordance to the Chairman of the Tourism Promotions
Bureau, they wish to concentrate on attracting high-

A nilana has come to be known as a name to be


reckoned with in the hospitality industry. Our
commitment to consistent quality, and the impeccable
end travellers, a fact which indeed, bodes well for us
and our country.

service we provide across all our resorts, have


resulted in us garnering numerous accolades, which Opening of Nilaveli and commencement
we are indeed, proud of. Tourism in Sri Lanka has
outperformed the general economy over the past of Dambulla
year and aggressive promotional campaigns carried
out by the Sri Lanka Tourism Promotions Bureau is Anilana Nilaveli opened its doors in April 2014, and
expected to attract a further influx of travellers to the since then it has welcomed dignitaries, international
country. Taking all such factors into consideration, we, tourists and local customers with the warmth that
at Anilana, have taken some strategic decisions to true Sri Lankan hospitality encompasses. A luxurious
grow and further extend our presence in the hospitality resort with exemplary service placed in breathtaking
industry. surroundings, is a sure-fire recipe for success, as is
amply demonstrated by the accolades it has earned
in 2014/2015 which includes the TripAdvisors Award
for Service Excellence and the Bookings.com Award
Global tourism trends for Service Excellence, both of which we are indeed,
rightfully proud of.
The ITB Berlin’s World Travel Trends report of
2014/2015 states that “people around the world have We hope to commence our operations in Dambulla
kept travelling more than ever before this year, despite very soon and we are confident that it will be a
wars, terrorist attacks and a growing fear of pandemics resounding success from inception onwards. A
as well as diverging economic conditions.” spacious, luxurious resort, centred on the truly unique
concept of an equestrian theme, together with our
Similarly, in a report published by the World Tourism indisputably high quality of service; we know we can
Organization (UNWTO) in January 2015, says that capture the hearts of all our guests with alacrity. Its
“International tourist arrivals reached 1,138 million

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appeal will be further augmented by its strategic location,
as it is placed in the heart of the Cultural Triangle, in a
pivotal point that connects the East Coast of Sri Lanka with
its West.

Accolades and Awards

Modesty aside, our quest for perfection has indeed,


brought us very close to it, a fact that is amply re-iterated
by the numerous accolades we have garnered over the
period 2014/2015.

For example, we have been awarded:

Trip Advisor Awards


Award for Service Excellence – Anilana Nilaveli
Gold Award for Travellers’ Choice – Anilana Pasikuda

Agoda.com
Gold Circle – Anilana Pasikuda

Booking.com
Service Excellence- Anilana Pasikuda
Service Excellence- Anilana Nilaveli

National Geographic
Certificate of Appreciation from the National Geographic
recognizing Anilana Pasikuda for contributing towards
Geotourism.

Whilst appreciating the recognition awarded to our


commitment to quality and service, we will not be resting
on our laurels. Instead, it will motivate us to perform
even better in the future, which we believe is one of the
cornerstones of our success.

Acknowledgements

I extend my sincere appreciation to all those who made


Anilana the success it is today. The Board of Directors
for their vision and their strategic direction in guiding
the company forward, our Management Team for their
competence in making this vision a feasible reality, and our
valued staff for giving it your all; - your loyalty, commitment
and positive attitude, contributes to making Anilana what
it is; a force to be reckoned with in Sri Lanka’s hospitality
industry. I also wish to thank the tour operators for their
continuous support and partnership, our customers
who mean the world to us and whose appreciation is
what motivates us to reach even further heights, and
our esteemed shareholders for the trust and confidence
placed in the company; a responsibility which we indeed,
take very seriously.

Peter Amerasinghe
Chairman

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ur financial year 2014/2015 began on an auspicious
O note with the commencement of operations of Anilana
Nilaveli in April 2014, from which point we have moved
forward and upwards, creating an indelible presence in
the hearts and minds of all our stakeholders. Avoiding
the hiccups that start-up ventures usually face, Anilana
Nilaveli has proven her mettle time and time again, and
has been awarded the Trip Advisors Award for Excellence
of Service in 2014/2015 and the Bookings.com Award for
Service Excellence over the same period.

Our Sales & Marketing team has much to be lauded for, as


their untiring efforts have yielded admirable results, with an
ever growing clientele of satisfied customers. Their hands-
on approach in cementing the far-sighted vision of our
company, has led to the cultivation of positive relationships
across the travel trade. New contracts have been entered
into with numerous Travel Agents such as Jahn Reisen,
Thomas Cook and Trail Finders to name but a few, and
this will indeed, pave the way for us to reach even greater
heights.

Our achievements

We do not measure our success by awards, alone.


However, we are honoured to have been awarded a vast
array of accolades over the period 2014/2015, which is an
ample testimony to our ongoing commitment to excellence.
Anilana has also received a vast number of favourable
reviews on Trip Advisor, another flame that fuels our quest
for perfection and propels our staff to achieve even greater
heights.

Our plans for the future

Our plans for expansion are carried out in a well-thought-


out and systematic manner. Our 54 room hideaway in
Dambulla is nearing completion and we hope to commence
its commercial operations over the next 15 months. We
are confident that this too, will be a resounding success,
for it is placed at the very heart of the Cultural Triangle
and it cleverly combines the excellence of design with the
impeccable service that Anilana is now renowned for.

Our Panichchankerni project is currently well underway as


well. In fact, we are nearing completion of 4 villas there,
and set amidst breathtaking surroundings, these villas
will artfully complement the location it is placed in, without
detracting from the awe-inspiring beauty of the area.

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Managing Director’s Message
Our confidence

Sri Lankan Tourism is expected to experience an influx of


growth in the foreseeable future, and strategic development
projects are currently in place to ensure that our country
will be even more attractive to the destination traveller. We
recognize this and have taken positive measures to act
upon these opportunities and we are confident that our
investments in the hospitality sector will yield increasingly
profitable and sustainable results over the long haul.

Acknowledgements

I wish to thank our Management Team for their skill and


dedication in guiding Anilana in the correct direction. It is
they who cement the visionary ideas that unfold at Anilana,
and their contribution to our success is monumental.
I also wish to thank our valuable staff who are the very
foundation of our operations, and it is their tireless efforts,
their competence, and their loyal service, that enables us
to march forward boldly, overcoming whatever challenges
that come our way, knowing that success is inevitable.

Asanga Seneviratne
Managing Director

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Mr. Peter Amerasinghe is a Fellow Member of the Chartered
Board of Directors 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

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Mr. Asanga Seneviratne is the founder of Anilana Hotels & Properties

Board of Directors
PLC, 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
In addition to his many business achievements, Mr. Seneviratne has Managing Director
enjoyed a great passion for sports 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
the 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.

In addition to his role as an independent Non-Executive Director


of Anilana Hotels and Properties PLC, 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.

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.
Gamini G Wikramanayake He resigned from the Board of Anilana Hotels and Properties PLC with effect
Director from the 30th of March 2015.
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Joining the Board of Directors with effect from 22nd May 2013
Board of Directors as a Non Executive Director of Anilana Hotels and Properties
PLC, 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

A Member of the Chartered Institute of Management Accountants,


United Kingdom, and an accomplished finance professional of
more than 20 years, Mr. Perera is well experienced and equipped
for his role as Head of Finance and Compliance for the Anilana
Group of Companies. Before joining Anilana, he worked at
Richard Peries and Aitken Spence Printing where he was the
Finance Director.

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.

Mr Perera was appointed to the Board of Directors with effect


from 18th May 2015 as an Executive Director of Anilana Hotels
& Properties PLC.

Manjula Perera
Director
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Corporate Management Team

Shamila Philips Gihan De Zoysa


Sales & Marketing Manager Head Of Technical Services

Ms. Philips has played a significant role in promoting and Also an Associate Director of Anilana Hotels and Properties
positioning Anilana, providing solid sales experience to build PLC, in his role Mr. De Zoysa is responsible for managing
our customer base and develop strong brand awareness. the preopening construction budgets, construction schedules
and project management for hotels and properties under
Ms. Philips is actively pursuing new business opportunities on development.
behalf of the company, whilst building strong allegances with
operators and industry spercialists to develop existing business Working closely with the Managing Director, Architects,
levels of Anilana Hotels in both local and overseas markets. Consultants, Interior Designers, Construction companies
and Contractors, he is responsible for sourcing development
As part of our overall marketing strategy and product locations, coordinating construction schedules and budgets,
development, Ms. Philips has been deploying the overall coordination of project management issues and
necessary tactics to help develop an awareness of coordinating with service providers and surveyors.
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.

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Asanga Seneviratne Manjula Perera
Managing Director Head Of Finance & Compliance

Mr. Asanga Seneviratne is the founder of Anilana Hotels & A Member of the Chartered Institute of Management
Properties PLC and in his role as Managing Director; he spearheads Accountants, United Kingdom, and an accomplished finance
the company’s positioning, strategic direction and the professional of more than 20 years, Mr. Perera is well
overall development of the “Anilana” brand, which he owns. experienced and equipped for his role as Head of Finance
and Compliance for the Anilana Group of Companies. Before
The management team has been set up in a highly joining Anilana, he worked at Richard Peries and Aitken Spence
collaborative matrix structure with direct reporting Printing where he was the Finance Director.
relationships to the Managing Director. In his role Mr.
Seneviratne is the overall guiding influence within the In this role, he is responsible for creating detailed and accurate
company, overseeing the key functions of corporate financial reporting, maintaining strict internal controls, as well
development, investment and investor coordination, financial as a comprehensive framework of policies and procedures that
resourcing, resource allocation and the sustained growth of the ensure fiscal responsibility. This is key in allowing us to achieve
company. our goal of sustaining profitability. He is also responsible for
ensuring full corporate governance and compliance within the
company.

Mr Perera was appointed to the Board of Directors with effect


from 18th May 2015 as an Executive Director of Anilana Hotels
& Properties PLC.

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Pasikuda L ocated on 7 acres of prime land, in the East Coast of Sri
Lanka, approximately 35 kilometres North of Batticaloa,
is Anilana Pasikuda. Being in operation since 2013, we have
proves that Sri Lankan hospitality is indeed, something
to write home about! Being adjacent to the Ocean, fresh
seafood comes as no surprise but our talented chefs take it
made an indelible mark in Sri Lanka’s hospitality industry, to another level and bring about an array of mouth-watering
winning numerous accolades, including the TripAdvisors’ dishes to tempt even the most fastidious guest.
Travellers Choice Award for 2015 and the TripAdvisors’
Certificate of Excellence in 2014. We also received a Anilana Pasikuda brings a touch of paradise to our valued
Certificate of Excellence from the National Geographic, and content guests. This is a place that induces rest and
giving recognition to our contribution towards Geo tourism. relaxation and where the travails and routine of everyday
Quietly tucked away from the crowd on Pasikuda Bay, life can be left far behind. However peace does not
our secluded yet luxurious retreat carefully preserves the necessitate isolation, and via fibre optic technology, most
natural beauty of its surroundings. modern devises are functional here, be it cable tv, music or
high speed Wifi internet connectivity.
Breathtaking views of the Indian Ocean greet you from the
lobby, past the long swimming pool; and from each of our Hotel facilities has something for everyone; be it a beach
spacious and luxurious rooms. Modern design combined bar and restaurant for those who wish to bask in the sun,
with the natural elements used during construction gives a lobby bar and restaurant for those who prefer indoor
this retreat its own unique beauty, complemented by the comforts, a vast swimming pool for those who want to
stunning coral reefs and the pristine waters of the Indian enjoy a relaxing dip after day out in the tropical sun, and
Ocean lapping outside. 60 comfortable rooms including single, double and duplex
chalets.
Our friendly and courteous staff provide impeccable service,
and it is their attentive care and prompt service which

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Pasikuda
nilana Nilaveli began its operations in the first quarter
Nilaveli A of 2014, and it has fast become one of the front
runners in Sri Lanka’s hospitality industry. A fact readily
the tranquillity of your surroundings. However, at Anilana
Nilaveli you will not be cut away from the world-at-large
either, unless that is your wish of course; for we provide
apparent by the numerous accolades it has earned, access to high speed Wifi connectivity, cable tv, music,
including the TripAdvisors’ Travellers Choice Award videos and digital telephones, all delivered on one digital
for 2015 and as a nominee for the World Luxury Hotel IP platform.
Award in 2016.
Our service is exemplary, with our staff taking care
Along the East Coast, on the golden beaches of of each of our valued guests with courtesy, skill and
Irakkandai, Nilaveli, our hotel is sprawled amongst 7 attentiveness. We provide service with a smile and
acres, bringing comfort and luxury to even the most you will indeed feel at home here, with a few additional
discerning traveller. Snorkelling, deep sea fishing, creature comforts, of course.
sailing, water sports, whale and dolphin watching are
a few of the myriad activities this area is famed for. Our facilities include 70 spacious and comfortable rooms
However, those who prefer a more relaxing holiday, can & suites, a lobby restaurant & bar of the highest quality,
take a dip in either of our two enormous swimming pools, a large veranda for al fresco dining, two enormous
be pampered at our state-of-the-art spa, enjoy tropical swimming pools leading the way to an amazing beach
cocktails made by our skilled bartenders and savour restaurant & bar and a roof-top restaurant where you can
some of the delectable dishes that are on offer at any of take in the splendorous views of the Ocean, the pristine
our restaurants here. beach, and the surrounding environs in all its beauty.

We provide a haven, away from the hectic bustle of the


city; a place to recharge your batteries and to drink in

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Nilaveli
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Nuwara Eliya
Nuwara Eliya
N estled amidst the hills of the Central Province is Craig
Bank Nuwara Eliya, artfully placed on one acre of land,
it is a place that cleverly captures the romance of a bygone
Nuwara Eliya offers a diverse range of activities for visitors
and residents alike; be it golf, horse riding or trekking. Some
chose visit to the Haggala Botanical Gardens with its effusion
era, without foregoing the comforts and conveniences of the of flowers, whilst others opt to visit the Galway’s Land Bird
modern world. The unique charm of this particular villa maybe Sanctuary near Lake Gregory. Yet others use Nuwara Eliya as
partly attributed to its Art Deco style, traditional designs, and the a base to visit Horton Plains National Park, famed for its wildlife
numerous antiques that can be found here. and the renowned attraction “World’s End.” For those who
prefer to relax indoors, our villa offers Wifi facilities, cable tv in
Amidst the picturesque landscape of lush green tea estates, the TV room, and an assortment of board games ranging from
sloping hills and cascading waterfalls stands Craig Bank chess to backgammon and draughts.
Nuwara Eliya. Nuwara Elya is ofttimes referred to as “Little
England” mainly due to its cool, sub-tropical climate and the Facilities at Craig Bank Nuwara Eliya includes four large
flourishing growth of fruits, flowers and vegetables that are bedrooms and en-suite bathrooms, a drawing room cum
usually found in temperate Europe. In keeping with this colonial lounge with a cosy fire place, a TV room, a well equipped
backdrop, at Craig Bank Nuwara Eliya, you will find attentive kitchen and a laundry room. A veranda to enjoy pre-dinner
staff and a butler service to cater to your every whim. Our drinks or some afternoon tea, and ample parking, makes this
beautifully laid out garden with a profusion of vibrant, colourful a haven for guests who want to relax in an intimate, quiet yet
flowers is a feast for the eyes; whilst a very different kind of welcoming atmosphere, reminiscent of a more peaceful time in
gastronomical feast can be sampled in our dining room, thanks days gone by.
to our multi-talented cook.

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Trip Advisor Awards
Accolades
Award for Service Excellence – Anilana Nilaveli
Gold Award for Travellers’ Choice – Anilana Pasikuda

Agoda.com
Gold Circle – Anilana Pasikuda

Booking.com
Service Excellence- Anilana Pasikuda
Service Excellence- Anilana Nilaveli

National Geographic
Certificate of Appreciation from the National Geographic
recognizing Anilana Pasikuda for contributing towards
Geotourism

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Anilana Nilaveli
“Excellent hotel, beach & staff”

Guest Feedback
We stayed here twice in four months and everything was great, we liked the food, room on the 3rd floor with great
views, the beach is great, almost white sand, no crowds or people selling sth. Most of all we liked the staff as they
were really open and kind, they are truly warm and ready to do anything to please guests, which is what we love and
sebastian909 appreciate. As long as the staff is nice, the premises and the room clean, the location perfect, everything is great.
Maribor, Slovenia

“Great place, very friendly staff”


I stayed at Anilana Nilaveli with some friends for two nights and we had a great stay. Lovely pools - and nice that there
were two, so you could choose the calmer one for swimming. Really attentive staff and just very nice people. The
room was spacious and modern. We only had great food here. The buffet was plentiful and the a la carte menu also
Johanne C
Frederiksberg had good options.The beach was lovely and spacious - there were not a lot of people on it. So all in all, a great place,
which I can only recommend.

Anilana Pasikuda
“Brilliant 5 nights stay”
We had a fantastic experience at anilana with very few if any problems or faults.

The rooms are spacious clean and well presented on arrival


The pool is great ,we enjoyed cooling off here on in the sea sebastian909
The food is very good, evening buffets have with a personal touch as chefs cook what they are offering how you like Maribor, Slovenia
it in front of you
Some people were saying there was issues with service due to undertrained staff but we felt the staff were very
competent and have either finished their training/had further training to help as all staff spoke good english, were
friendly and did everything we asked - we particularly liked the young waiter who worked on the bar. He made very
good cocktails.

“The best!”
The hotel was beautiful and the view was spectacular!The staff was so nice and friendly! Pasikuda is quite far from
Colombo, but when we got there we didn’t want to leave. The food was classy and delicious .The infinity pool and the
view was just the best. Can’t wait to visit again! Thank you for making my stay an enjoyable one!
devini j
Colombo, Sri Lanka

“A touch of paradise”
Stayed in this beautiful hotel for a short two days, everything about it was spot on! Beautiful views, rooms were
spacious, modern and great, food was excellent!
The infinity pool looking onto the sea was picture perfect!
Have recommended to many friends and if I ever have the chance, I will be back!!
Clomcg
Malaga, Spain

Anilana Craigbank Nuwara Eliya


“Old Colonial remembered!”
I don’ know how to praise this boutique. Hotel enough! During the day on our drive there our driver had a couple of
calls asking for our time of arrival. When we arrived at this stunning spot we realised why. They wanted us to decide
what we wanted for dinner! They then went off to market to buy all this lovely fresh food for dinner. We had to wait a
JanBenj
London, while but believe me it was well worth the wait. The food was absolutely fabulous. We had drinks by the cinnamon log
United Kingdom fire whilst we waited, no chore! Neill, who was the hotel manager at the time was utterly charming and the very best
host. Our rooms were very stylish and perfectly clean.

The family room is so quirky, I won’t tell the secret in case you stay there!. The gardens are stunning and beautifully
cared for. Sadly we just had one night there. When we left in the morning it was our wedding anniversary, the staff
lined up to say goodbye and when we got to our car it had been decorated with balloons and posters. They all waved
goodbye. Not enough time there.
25
Dambulla S ituated on the main road which connects Dambulla to
Colombo, this 39 acre property is a paradise for nature
lovers, for it is filled with fruit trees, a vibrant expanse of
a spa and a well equipped gymnasium. Two restaurants
and bars will provide some delectable dishes and

diverse plants and colourful flora. It is a haven for bird


watchers, for this fertile land attracts many species of our
feathered friends who have now made it their home.

It is strategically located, being just a few minutes’ drive


from the Dambulla city centre, which is 72 kilometres away
from Colombo, and which has the distinction of being a
pivotal spot that connects the East Coast of Sri Lanka
with the West. Dambulla is part of the Cultural Triangle
and boasts of World Heritage and Cultural sites and is
a base from where other ancient cities such as Sigiriya,
Polonnaruwa and Anuradapura can be explored with
ease. It is also short distance from the Knuckles mountain
range in Matale, which once again Is a UNESCO World
Heritage site and which is abound with a diverse range of
fauna and flora.

We are in the initial stages of developing the Anilana


Dambulla Country Club and plans are afoot to centre cocktails that are worth writing home about. As hitherto
it round an equestrian theme, which would include a mentioned, we also intend to have a stable filled with
professional horse riding school and show jumping, horses in keeping with our equestrian theme, a facility
which in turn would lend it a distinct and unique touch. As which is a rarity in Sri Lanka, especially in Dambulla and
horses are closely associated with the British aristocracy its environs.
and country living, we intend to design the main building The second phase of this project will include the
in keeping with an old English country manor, with large development of spacious, one-of-a kind villas, ranging
rooms and even larger suites. Apart from the main from 4 bedroom units to 8 bedroom units, all of which will
building, we intend to construct riverside chalets and split have spectacular views of the surrounding country side.
level lofts, through which we hope to attract a diverse Our goal is to sell these to individual investors or for it to
portfolio of visitors, be it large families or small groups. be part of the hotel inventory on a profit sharing basis.

The location of this site is indisputably beautiful, with lush As the third phase of this project, we intend to develop
vegetation and an ambling stream bordering the property. the road side frontage of the property, so that clean, high
This stream should provide ample water for the horses quality street food, beverages and retail opportunities will
and we propose to include a tasteful water feature which be available to travellers; and in-turn this should help us
would heighten its aesthetic appeal still further. The tall generate additional revenue whilst offering an opportunity
trees and the shrub jungle in the vicinity, with imposing for well-trained locals who reside nearby to be an active
yet breathtaking mountains further afield, will lend a part of our venture, as part of our larger plan to further our
certain authenticity to its country club ambience. promise of social responsibility.

Facilities at the resort include a main building, riverside


chalets totalling 54 rooms and suites, including 8 lofts
which are ideal for families. For those who come here for
rest and relaxation there will be two large swimming pools,

26
P erfectly situated with an 80 perches ideal central

Colombo
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.

27
Panichchankerni

N estled between Trincomalee and Batticaloa is Panichchankerni, a


small village in the North East coast of Sri Lanka. We have bought
several plots of stunning beachfront property in Panichchankerni,
Facilities at this resort would include exclusive villas and a main
building consisting of 70 rooms and suites, set in the midst of an
utopian village with a spa, health centre, gymnasium, beach club,
totalling a little over 17 acres, all adjacent to each other, in our bid to numerous restaurants, bars and outlets for retail shopping. For those
build an eco-friendly resort village. It will be an ideal getaway from the who wish to get married in paradise or others who wish to host a
hustle and bustle of city life, for its untouched, pristine beaches acts special celebration or even a memorable seminar, we offer a meeting
as a soothing balm for any weary soul. room and banqueting facilities. All this would be done in a tasteful,
eco-friendly manner that complements the extraordinary beauty of
Geographically this site acts as a bridge through which two separate the surrounding environs.
beaches are connected and it incorporates our Seladiv Island site, and
here we plan to build a number of luxury villas and an unique boutique
hotel with 70 spacious rooms. The central village will be designed
so as to incorporate an independent spa and water sports facility,
which will be the focal point of our community, and surrounding it will
be our own brand of utopia, with landscaped public areas, a main
street where high quality restaurants, bars and retail shopping would
be made possible to all our valued guests. The adjoining area of the
resort will be designed along the same lines, but it will have smaller,
more exclusive units which will be open for sale or rent on completion.

28
Selladiv Island
S et amidst Tricomalee and Batticaloa in Sri Lanka’s breathtaking
East Coast, our 10 acre Seladiv Islands site is part of our
Panchichankerni integrated resort project. However it will be a retreat
Facilities at this resort will include 24 spacious, exclusive water
bungalows, 10 expansive island suites, a lobby lounge with a cosy
restaurant and bar where fresh, delicious food will be prepared to
unto itself with luxurious water bungalows overlooking a living coral tempt even the most discerning traveller. A short, picturesque stroll
reef. In building this eco-friendly resort we will not disturb the natural on the main land will lead to a well equipped spa, water sports and
beauty of this island with its avid plant life and lush green mangroves. diving centre which would be part of the Panchichankerni integrated
The buildings and pathways will be constructed on an elevation, so as resort project.
to preserve this island’s scenic beauty and as a way to preserve the
fauna and flora of the surrounding environs.

Our resort will tastefully combine the concept of indoor and outdoor
living and in keeping with our eco-friendly design we will be using
natural materials wherever possible so as to complement the natural
beauty of the area. This is a place where the freedom of the vast
outdoors comes together with luxury and comfort of the indoors, and
where living with nature is indisputably a pleasure with the ocean
lapping at your feet and the golden sand at your doorstep, all under
a warm, tropical sun.

29
Blue Lagoon

L ocated on the North-East Coastal belt of Sri Lanka is


Trincomalee, a haven for holiday-makers; whether they be
sun-worshippers, nature lovers or water sports enthusiasts.
On Tricomalee’s golden shores, just a few kilometres away
from Anilana Nilaveli and the centre of Trincomalee’s city
centre, is 7 acres of prime, beachfront property, on which
Anilana Blue Lagoon will be developed. It would be under the
ownership of Blue Lagoon Resort (pvt) Ltd, a subsidiary of
South Asia Asset Management (pvt) Ltd, which in turn is a
fully owned subsidiary of Anilana Hotels & Properties PLC.

On one border of this picturesque property a tranquil river


ambles on to the pristine Indian Ocean, which beckons
invitingly from the other border. It is an ideal location for those
who wish to pursue an array of water sports, whilst those who
prefer a quieter holiday would certainly not be disappointed
either, as they can rest and relax in luxurious comfort at our
resort and enjoy the panoramic views on offer here.

Facilities would include a four storied hotel comprising of over


70 bedrooms, all of which would have breathtaking views of
the ocean. For those who prefer a more intimate setting, we
plan to construct spacious, well-designed villas with 4 to 8
bedrooms, again with spectacular views of the coastal waters.
A spa would also be in operation here, as a range medicinal
plants and tropical trees that form the base of Ayurvedic
healing, is found in abundance here.

30
S
Vakarai
ituated about 65 kilometres to the north of Batticaloa, on
the East Coast of Sri Lanka, will be Anilana Vakarai. With
over 21 acres of prime, beachfront land, it is an ideal holiday
getaway with its golden, unspoiled beaches, tropical climate
and the inviting waters of a clear blue ocean lapping nearby.

It will be a haven for water sports enthusiasts, as there will be


an array of water sports that guests can engage in here. It is
also an ideal place for those who wish to get away from the
hustle and bustle of city life, and its overwhelming beauty is
almost too much to take in, making it a gateway to paradise.
We are confident that this would be of great appeal to our
discerning, up-market clientele, who wish to enjoy exotic
holidays under a warm, tropical sun.

Facilities would include several luxurious villas, clusters of


eco-friendly beach homes, and a magnificent hotel with 80
to 90 spacious rooms. There would also be a state-of-the-
art spa, a well equipped gymnasium and sophisticated
restaurants and bars, making it a self contained and integrated
resort that cleverly combines the comforts of modernity with
the breathtaking landscape that nature has bestowed us with.

31
Kalkuda In Sri Lanka’s proverbial East coast, 35 kilometres Northwest
of Batticaloa, lies Kalkudah, a secret 34 acre hideaway, with
unspoilt beaches and pristine waters that must literally be seen to
be believed. The unique white sand and the balmy coconut fronds
lazily swaying to the rhythm of the ocean breeze, makes this place
akin to paradise. Our site is centrally located on Kalkudah bay,
and despite its proximity to other hotels and restaurants, it has a
certain intimate, secluded feel to it, which is bound to please even
the most world-weary traveller.

Anilana Kalkudah will be constructed as an eco-friendly, integrated


resort, with luxury, beauty and privacy being its forte. Plans are
also underfoot to construct several spacious villas with stunning
beach frontage, where the concept of indoor and outdoor living
will blend together effortlessly. Natural building materials will be
used wherever possible, and each unit will be designed to hold a
private swimming pool for the convenience of our guests.

Facilities would include the aforementioned environmentally -


friendly villas each with its own pool , several beach houses, a
hotel and a luxurious spa where our guests will made to feel like
royalty.

32
33
Management Discussion and Analysis W ith the end of the Civil war in 2009, there has
been a steep increase in the number of tourist
arrivals to Sri Lanka and the tourism industry expects
The travel and tourism industry needs to strategize
wisely, if they are to be even more successful. In fact
the Chairman of the Tourism Promotions Bureau has
this trend to continue in 2015. However a downturn in stated that “Sri Lanka must stop chasing visitor arrival
the global economy could take the edge off the surge numbers but focus on attracting the $250 per day
of arrivals in the latter part of this year. guests into the country if we are to make the industry
financially viable.”
According to the World Travel & Tourism Council
(WTTC), tourism in Sri Lanka has outperformed
the general economy, in 2014. In fact, in terms of
percentage, Sri Lanka has performed better than even
some of the big players in the travel industry, such as
China, India and Indonesia.

According to the Sri Lanka Tourism Development


Authority (SLTDA), overseas tourist arrivals rose
13.% on a comparative year-on-year basis for the
three month period ranging from January to March. As
at end July 2015, tourist arrivals have crossed the 1
million mark and if this trend is to continue, the country
is well on its way to exceed the 1.52 million tourist
arrivals recorded last year. Thereby, achieving the
Government’s target of attracting 2 million visitors for
2015, is almost a certainty.

China is a key player in our tourism sector; a fact amply


demonstrated by the increase in arrivals of Chinese
tourists by 84 % , ahead of all other nationalities; and
by the fact that their numbers in terms of arrivals have
more than doubled since 2014. In the first quarter of
2015, over 53,000 tourists arrived from China alone,
whilst travellers from India and the United Kingdom
have frequented our shores in formidable numbers,
too.

In order to capitalize on recent achievements, in


March 2015, the Sri Lanka Tourism Promotion Bureau
launched a Rs 1.2 billion promotional campaign that
will also focus on China, Germany, India and Italy, as
key growth areas for tourism. The aforementioned
campaign includes strategically placing advertisements
overseas, bringing delegations of travel agents to Sri
Lanka and improving brand awareness at various
trade shows across numerous destinations.

However, the recent surge in tourist arrivals is


expected to decrease marginally over the next few
months, due to the downturn in the global economy.
The shift in focus to the Chinese market comes as
arrivals from Russia have declined, with Russian
tourist arrivals declining 21% in the period January to
March, partly due to Western sanctions and in part
due to the economic recession.

Sri Lanka Tourism together with strategic sponsors are


encouraging travellers to explore our Eastern Belt with
promotional campaigns such as “Trinco comes Alive”
which was held from 31st July to 2nd August this year.
This event intended to showcase our multifaceted
island as a hip destination for the adventurous, young
at heart and for music lovers.

34
Tourist Arrivals in 2014/2015

Management Discussion and Analysis


Month 2014 2015** % change 2014/2015
January 146,575 156,246 6.6
February 141,878 165,541 16.7
March 133,048 157,051 18.0
April 112,631 122,217 8.5
May 90,046 113,529 26.1
June 103,175 115,467 11.9
July 133,971 175,804 31.2
August 140,319
September 105,535
October 121,576
November 119,727
December 178,672
Total 1,527,153
Up to July 861,324 1,005,855 16.8

** Provisional

Tourist Arrivals in 2014/2015

Source: Sri Lanka Tourism Development Authority

35
Management Discussion and Analysis Tourist Arrivals by Region 2013 & 2014

Tourist Arrivals by Country of Residence 2013 & 2014

Source: Sri Lanka Tourism Development Authority


** The figues as of 31st December 2013 & 2014

36
Tourist Arrivals in the East Coast in 2013

Management Discussion and Analysis


Month East Coast arrivals**
January 13,419
February 16,281
March 10,949
April 9,521
May 6,675
June 9,082
July 11,311
August 13,930
September 11,770
October 11,114
November 12,230
December 19,473
Total East Coast arrivals for the year 145,755

** East Coast arrivals are calculated based on foreign guest nights in graded hotels.
Source: Sri Lanka Tourism Development Authority

37
Everything we do begins and ends with
Operating Strategy & Review our guests

As meeting and exceeding customer expectations


is our primary focus, we have strategically built the
Anilana brand, to ensure that the quality and service on
offer at all our resorts, remain steadfastly consistent.
To this end, we have developed brand standards and
a strong human resource development plan, so that
the resorts presently in operation and the development
projects currently underway, are geared to sustain
future levels of profitability. We have identified our
primary customer base and have positioned ourselves
to meet their needs, in a fast changing environment.
We intend to attract new customers, whilst retaining
our existing customers whom we hold in high esteem.
We love what we do, and it is this passion for quality
and perfection that drives our highly motivated, trained
group of staff to excel in all that they do.

Corporate Structure

We have centralized several of our organization’s Centre, be it strategic planning, public relations,
functions so as to benefit from economies of scale, and advertising, collateral management, reservations,
to ensure that undue expenses are not passed onto to online marketing, business forecasting, contracting or
our valued customers. Thereby, at Anilana Centre, our sales & revenue management. We have set ourselves
Head Office, which is situated in Colombo; we handle challenging yet achievable sales targets, which we
a vast range of support services, such as project enthusiastically pursue, made easier by the fact that
management, finance, legal & compliance based we have identified our niche and our potential customer
work, marketing & sales, reservations, information base. We intend to focus mainly on high spending
technology, human resource management, technical international clients who mainly come from European
services and procurement, so as to minimize our on- countries such as the United Kingdom, Germany
site manning levels and to give them the freedom to and France, as well as our Asian counterparts from
do what they do best, which is providing unmatched China and India; whilst keeping our loyal, Sri Lankan
service to our guests. At Anilana Centre, we are geared customers close to our hearts.
to achieve the four cornerstones of our strategy, which
are sustaining profitability, developing our human We have a multi-pronged approach to pierce our sales
resource component, achieving brand clarity and targets, one of which is to develop and maintain strong,
maintaining the integrity and consistency of our brand. professional ties with both local and overseas based
Tour Operators and Travel Consultants. Another, is to
develop a formidable online presence, which we have
Design, planning and preparation of new done by investing in our own modern reservations
engine, cultivating strong relationships with companies
openings
that engage in online reservations such as Bookings.
com and Agoda.com, and by investing in a name
The Corporate Management team work tirelessly to
optimization program that lends us a preferential
ensure that all projects are viable, both financially
standing on Google Search, which in turn increases
and technically, and that they comply with our brand
brand awareness. We also place emphasis on
standards. They work hand in hand with a team of
cultivating and maintaining our reputation online, by
trusted professionals, each an expert in their field,
responding to queries, concerns and complements in
be they architects, contractors, interior designers or
a courteous and timely manner, be it on social media
specialist consultants. Together they arrive at a well
or on customer review sites such as Tripadvisor.com.
thought out action plan and come to a consensus on
Similarly, in order to gain and retain our local customer
appropriate design layouts, project costs, construction
base, from time to time, we offer them a host of
schedules, operating concepts, furniture & operating
privileges, be it special promotions or attractive rates.
equipment requirements, all of which are aimed at
taking Anilana to another realm of excellence.
“A touch of paradise” amply sums up our advertising

concept, as we promote Anilana as an inspirational
destination to our discerning international clientele
Marketing, Sales & Reservation and to the upwardly mobile local market. We
Management ensure that the pristine beauty of the east coast is
highlighted along with the intimate luxury that Anilana
All marketing activities are centralized at Anilana

38
is renowned for, in all our promotional campaigns. We curbing any undue expenditure. Financial reporting is
will be focusing mainly on attracting honeymooners, carried out, conforming to the guidelines set by the

Operating Strategy & Review


adventure seekers, promoters of lifetime experiences relevant accounting standards, making it a reliable
and all high yield clientele who are willing to pay a tad source of information for all. As per the statutory
more for high quality service, exclusivity and luxurious requirements, audits are mandatory and we do our
living facilities. utmost to ensure that it is carried out in a methodical
and timely manner.
Recruitment, manpower development and
succession planning Brand Clarity and Operating Standards

We believe that the foundation of our operations is For us, Brand Clarity encompasses having uniform
our people, and with this in mind we have centralized operating standards across all our ventures, which
all strategic human resource development activities share the common aim of ensuring that all our clients
at Anilana Centre, including recruitment & selection, experience the “memorable hospitality” that we are
development of training material, manpower planning renowned for. In our books, the Fundamentals of
and compensation planning, to name but a few. We Hospitality can be classified as:
have invested in recruiting highly trained professionals
who are extremely competent in their own sphere of • Defining and maintaining standards for comfort.
service and we have potential candidates of a similar • Defining and maintaining standards for cleanliness.
calibre lined up for projects that are currently at the • Awareness and implementation of safety related
development stage. protocols.
• Ensuring consistency for excellent service, in all
Tactical human resource requirements are also locations.
placed on a level of utmost priority, with performance
management, provision of employee services, training, At every point of service, we aim to sustain the integrity
counselling, evaluation and motivation, taking pride of of the Anilana brand, by ensuring that our product,
place, for we believe that satisfied employees pave service and delivery standards are in keeping with our
the way to obtaining and retaining even more satisfied dedication to excellence.
customers.  
Sustainability
As Anilana has several ambitious yet attainable plans
for expansion, the need to develop future leaders in
keeping with our pace of growth, is a matter that has
gained our attention. To do so, we will be focusing
on the specific competencies such leaders need to
posses, both at a strategic and tactical levels, and
we aim to foster such competencies, first by choosing
the correct person for the correct job, and then by
designing development programmes that will help
them master the required traits and skills that would
be essential to carrying the company forward.

Corporate governance, government


liaison, licensing and legal matters

It is the Corporate Management team that is


responsible for upholding financial transparency and
legal accountability, which is then perused by our
Board of Directors. We feel that it is our integrity in
this regard, that helps us further the trust placed in
us by our shareholders, directors, associates, clients
and all other stakeholders. The development of well
defined procedures for all work processes; and the
clear, accurate documentation of it, paves the way
for reliable internal controls, good governance and
complicity in keeping with both internal and external
audit standards. Sustainability is something we at Anilana, fully
endorse, be it our legal and moral obligations, or our
Along with the implementation of corporate policies ethical responsibility to society at large. We believe
and procedures, we monitor compliance on an almost that we need to respect our natural environment in
daily basis, so that a tight control is kept at all times, all circumstances, as either directly or indirectly, it
in keeping with the aim of protecting our assets and is the very cornerstone of our success. We believe

39
that man and nature can co-exist peacefully, and we
Operating Strategy & Review act in a manner that is beneficial to both, as is amply
demonstrated by the decisions we take and in the
way in which we fulfil our social, ethical and economic
requirements.
We are aware that man in his quest for development
sometimes works in a manner that is detrimental to
nature. However, we realize that this outlook is a very
short-sighted one, and so we endeavour to protect our
natural resources, be it water, energy or the natural
environment, not only for its beauty and diversity, but
for the well-being of us and our future generations.
With this objective in mind, we have devised a five
point plan, in order to walk the talk; that being:

1. Environment

We respect all environmental regulations, ordinances


and laws that are put in place to safeguard our health,
our people and our natural resources. We have
invested in high quality equipment and state-of-the-art
computerized monitoring systems that facilitates the
efficient use of resources. Ambassador Mr. Heinz Walker-Nederkoorn, First
Secretary Ms. Kay-Nina Forrer, NGO Representatives
We incorporate environmental sustainability at each of the Deutsche Internationale Zusammenarbeit (GIZ)
stage of our operations. For instance, at the design and Ms. Senaratne of the Vocational Training Authority
and development stage, we incorporate effective (VTA) of Sri Lanka. The meeting was held to gauge
water management systems that help us eliminate the how Anilana Nilaveli can further assist and contribute
excessive use of water; whilst at the operational stage to the local community by training interested youth in
we use a natural filtration process that enables our vocations related to the hospitality trade.
guests to have access to cool, clean drinking water;
and in the same vein, water is used efficiently and To date, almost 70% of our staff are highly trained
economically across all our functions, be it for laundry, locals, who are given ample opportunity to grow in
culinary or gardening requirements. the hospitality industry, armed with the progressive
training and the development opportunities provided.
Similarly, we opt to conserve energy in an efficient, For example, Mr Kodish, a local resident, was
economical and sustainable manner, and to that end, employed by Anilana Pasikudah three years ago, and
we use LED powered lights and solar energy in over was recently promoted to the position of Assistant
80% of our lighting requirements. Most of our air Housekeeping Supervisor. Similarly, most of our
conditioning units operate on solar power, too, and hot kitchen trainees at Anilana Nilaveli are recruited from
water is obtained using solar energy for the most part, the Vocational Training Authority in Trincomalee, whilst
which minimizes our reliance on boilers and suchlike hiring Kitchen, F&B and Housekeeping trainees are
equipment. recruited from the National Apprentice and Industrial
Training Authority in Trincomalee and Kantale.
Most of our projects which are currently under
development will also be using natural materials for We also tend to source our food locally wherever
construction, wherever possible; and high ceilings possible, be it seafood, meat, vegetables or dairy
will be incorporated in some of our structures at products. Through this, we ensure that the freshest
the construction stage itself, so as to minimize the produce reach our kitchens every day, while helping
reliance on artificial cooling systems. We will also local farmers, fishermen and vendors to obtain a
bestow the utmost respect to the natural beauty of the substantial living allowance through these sales. We
environment and promote it at all possible times. promote sustainable fishing methods and organic
  food, in our bid to inculcate environmentally friendly
2. Community practices in all our stakeholders.

Most of our resorts ( and prospective development In Nilaveli, we have commenced providing lunch
projects ) are situated in Sri Lanka’s East Coast, a packets every month to trishaw drivers, Navy and
place where the impact of a long drawn out civil war Police life savers, counter staff working at Wildlife
spanning over two decades was keenly felt; and to ticketing, and to boatmen, a thoughtful gesture that
where travel was practically unthinkable before 2009. has indeed, fostered goodwill in the community.
This has impacted the locals in a manner where hitherto
training and development opportunities were scarce, With our commitment to sports, we organized a cricket
which is something we aim to rectify. To this end, we match in Vakarai this year, and sponsored several
have carried out initial discussions with the Swiss items of cricket gear, that would enable residents to

40
indulge in a game of cricket whenever they feel up to customers, and we take it upon ourselves to provide

Operating Strategy & Review


it and to enjoy some fun in the sun. and maintain optimal standards of comfort and
hygiene, safety and consistency, in all that we do
Yet another contribution we make towards the across the board, in all our resorts.
wellbeing of the community, lies in the manner whereby
we encourage our guests to visit local markets and At Anilana we believe that our customers share the
shop there, whenever possible. For example, at same passion for the environment that we do; and in
Anilana Pasikudah, we provide our guests with free turn we promote sustainable local produce whenever
transfers to Vallachennai, where they can purchase possible, attempt to minimize waste and excessive
items of clothing and replenish their day-to-day basic energy consumption, and pay heed to the conservation
shopping requirements, without much ado. of water. In our endeavour to help save our forests, we
  have computerized most of our functions and we try
3. Associates to minimize the use of paper, in all our operations. We
also ensure that our food does not compromise the
At Anilana, we believe that our people are the key to our wellbeing of any protected species, and thereby our
success, and that keeping them happy and motivated, guests are assured that turtles, shark fins and dolphins
whilst developing their skills, would naturally lead are certainly not part of our menu plan, and that we
to personal growth, and to the betterment of our do not even use seafood obtained by environmentally
organization, where excellence is a way of life. destructive processes, such as dynamite fishing, to be
a part of our culinary adventures.
We provide both internal and external training  
opportunities, ranging from customer service to
on-the-job training; and we facilitate development 5. Sustainable Profitability
programs where English language training and
Computer skills are specifically fostered. Our well thought out approach to develop and maintain
the integrity of our brand, centres mainly around our
Our Management Development Training program has strategy to achieve Sustainable Profitability. Through
met with much success and is an essential tool in our this, we hope to attract investors, who would derive
armour for future development projects, as it targets a certain pride in being associated with us as market
the development of competent, skilled managerial leaders in the hospitality trade, and as prudent yet
level employees who are groomed to take our savvy mangers of the company’s assets and its
operations to the next plateau. bottom line.

In order for our staff to glean an even better We aim to maintain our margins by ensuring that prior
understanding of the hospitality trade, we bring in both to the incurrence of any expenditure, it will be carefully
local and international trainers, who rank amongst the scrutinized and strategically aligned to its current and
best in their chosen field, to provide valuable on-the- future potential to generate additional revenue, in
job and off-the-job training. keeping with our long term goals.

We have an Internal Performance Management & We will focus on opportunities to improve our revenue,
Personal Development plan in place, which helps us foster growth and minimize expenditure, wherever
monitor performance, motivate staff, and give due possible. Effective materials management and a
recognition to accomplishments. This also helps centralized procurement function lead to economies
identify the strengths of our personnel, and just as of scale, whilst effective water & energy conservation
importantly, the areas open to improvement, which we programs and the minimizing of waste, is the
then begin to work on promptly. Using this as base, we cornerstone of our cost effective asset management
identify those deserving rewards and promotions, for programme.
we firmly believe in the concept of “development from
within,” where we first try to promote existing staff to
desirable positions before looking to external market
to meet our needs.

We work closely on a collaborative basis with hotel


schools and the National Apprentice and Industrial
Training Authority (NAITA), through which the Anilana
Skills and Development Programme was launched,
whereby those who wish to pursue a career in the
hospitality trade can obtain the necessary skills that
are required to stand out in the hotel trade, both locally
and internationally.

4. Customers

Frankly speaking, our world revolves around our

41
Human Resource Development A t Anilana, we believe that our people are our
strength, and it is our investment in human
resources that enables us to offer unparalleled service
pressure, remaining flexible at all times in order to
ensure the common objective of customer satisfaction,
whilst being open to challenges in a fast changing
and the warmth of true Sri Lankan hospitality, to our environment, are the cornerstones of our trademark
valued guests. We invite young, talented, enthusiastic hospitality.
individuals to be a part of our team, for we believe that  
with a can-do attitude, anything is possible. It is this
positivity and the genuine care we display towards our Anilana Team
guests and towards one another, that sets us apart
from our competitors. A key element in our organization’s business strategy
is to be renowned as a preferred employer, which help
us recruit, develop and retain skilled, competent staff,
Vision, Mission & Goals at all levels. To this end, we have developed well-
thoughtout performance standards, so as to assess,
Against the backdrop of Anilana’s comfortable, modern recognize and motivate our employees, whilst several
and luxurious properties, we aspire to provide infallible internal and external training programs are put in
service and gracious hospitality, with the ultimate aim place to bring out the best in our associates, which
of maximizing customer satisfaction. By maintaining in turn facilitates both personal and organizational
sustainable growth, we aim to provide profitable growth. With effective feedback geared to identify,
returns to both owners and shareholders alike, whilst motivate and reward successes and rectify any
enhancing investments, and increasing the net worth shortcomings and with several career advancement
of the organization. opportunities and prospects for internal growth being
readily available, we at Anilana, believe that jobs pave
At Anilana, we concentrate on constructing cost the way to careers.
effective and eco-friendly structures, each with its own
unique identity. The glue that binds these separate We have with us, a highly talented, motivated set of
entities together would be the consistency of service employees, each a professional in his/her own field of
and the uniformity of standards that is faithfully work, a valued asset in our arsenal. We have with us
inculcated across the Anilana brand. a multi-pronged approach to balance the needs of all
stakeholders, such as luxurious yet functional design,
Our vision statement, mission, goals, culture and values safe yet cost effective construction, environmentally
form a cohesive whole, and it is the amalgamation sound practices, an effective marketing campaign,
of all these that provide us with strategic direction. competent financial management and a sound human
We make a conscious effort to involve our staff in resource development program set well in place,
planning activities as well as the operational, for it is so that we are geared to deliver a high return on
they who can give us useful insight into the best ways investment (ROI) to our investors.
of optimizing service and suggest new techniques
to enhance customer satisfaction. We believe that
highly motivated employees perform at their best, and
a hands-on approach to service across the board, is
pivotal in attaining our mission.

Core Values & Internal Culture

We are proud to say that we have a strong internal


culture, based on shared values of respect,
commitment, integrity, honesty and creativity We
believe that our people are at the heart of our success,
and fostering skills development and personal growth,
is beneficial to Anilana, both at its current level of
operations, and as it ventures onto new avenues of
growth in the not too distant future. Growth will be
fostered by our vision and goals, and by our internal
culture and values. Each of these is unique in its own
right, but at the same time interdependent too, and
each plays an essential part in our quest to create and
maintain sustainable value for our share-holders over
the long haul.

Members of the management team give focus and


direction to the internal culture of our organization,
and they ensure that the same courtesy bestowed
upon our clients is prevalent in our interactions
with each other, too. Demonstrating initiative under
42
Training & Development

Human Resource Development


We aim to bring out the best in our staff, and to this end
we have invested heavily in several effective training
& development programs, with our primary focus
being on increasing English language and computer
related aptitude, service training, improving culinary
production standards, and internal management
development.

• We aim to recruit the best, and with the idea of


providing new recruits with the necessary level of
skill and competence required to perform their tasks
effectively, we have commenced discussions with
the Swiss Ambassador to Sri Lanka and relevant
personnel from the Vocational Training Authority (VTA)
of Sri Lanka, so as to set in place an optimal method of
training locals, who wish to be a part of the hospitality
industry.

• We believe in being an equal opportunities employer,


and to this end,we commenced discussions with the
VTA on how to increase female representation in our
staff numbers.

• We provide extensive computer related training, as


most of our systems, whether it be inventory control,
financial reporting, billing or reservations management,
is done via the computer, in our bid to achieve fast,
efficient and a mostly paperless operation wherever
possible.

• We have a sequence of service and standards of


performance developed across all our resorts, which
enables us to train our staff effectively and which gives
them the necessary tools to perform their tasks in an
exemplary manner. Focused training also improves
our productivity and minimizes recruitment costs. Payroll Management & Employee Benefits

• We have a number of internal promotion opportunities In our bid to align manpower related expenditure to
set well in place, including our valued employee, Mr the volume of revenue generated over a given period,
Kodish, who has been with us for three years and who we have set procedures in place to improve cost
was recently promoted to the mid-managerial position effectiveness without hampering customer satisfaction.
of Assistant Housekeeping Supervisor. In times of low demand, we tend to make significant
changes to our operational structure, with review of
contracts and outsourcing of backup activities coming
into play; while in times of increasing demand we
focus on managing our expenditure effectively, with a
no-tolerance policy on waste and excess.

We believe our employees are our strength, and so


in addition to government stipulated benefits such
as EPF and ETF, we have developed a performance
based salary scheme aimed at recognizing and
motivating talented staff, whilst bonus plans, medical
insurance, hospitalization cover and remunerable
business expenses are part of our strategy to keep
our employees loyal and satisfied. Also, being realists,
we know that life can throw a sudden curveball at
its people, and so we have developed a competitive
compensation plan to ensure that our employees are
well remunerated and cared for at all times.

43
Equal Opportunity and Diversity
Human Resource Development Anilana provides an equal opportunity to all those who
meet minimum educational and age requirements
to join the organization and do not discriminate with
regards to gender, race, age or religious beliefs. The
company values diversity in the team. Hence, the
company employs staff from different ethnicities and
has fluent speakers of Sinhala, Tamil and English. We
also do not engage in child labour and ensures that
children below 18 years of age are not employed.

Working conditions and relationship


management

We ensure that the company adheres to the


country’s prescribed labour laws and regulations to
provide employees with humane working conditions.
In addition, the company strives to maintain a
harmonious relationship based on common values,
mutual understanding and trust. The company has
an open door policy to address work place issues and Occupational Health and Safety
encourages employees to voice any grievances to
prevent small problems becoming formal disputes. In order to ensure a healthy workforce is maintained
and to create a safe working environment for the
employees, the organization offers a comprehensive
in-house medical insurance scheme for permanent
employees at all levels. The company has taken various
measures to ensure a safe working environment and
that employees do not suffer from work place injuries.

44
45
Human Resource Development - Testimonials
Corporate Social Responsibility W e at Anialna, believe that the good that we
do will always make a positive difference, in
ourselves, our stakeholders and in the community at
However, we minimize the wastage of water by
carrying out our functions carefully, in a well-thought-
out manner, by gaining an in-depth understanding of
large. We believe in conserving our natural resources local water conditions, treatment methods and optimal
for the benefit of our future generations, promoting storage conditions.
health and well-being in our customers by opting for
organic produce wherever possible, encouraging We also believe in energy conservation, and with this
the implementation of sustainable farming practices in mind nearly 80% of our light fittings use LED or solar
amongst our suppliers, and fostering a better quality powered lighting. Our air-conditioning units are solar
of life in the local community. powered for the most part, and hot water is dispersed
as a by-product, which in turn helps us minimize the
utilization of boilers. Despite such methods yielding a
Environmental Matters higher initial investment cost, it has found to be cost
effective in the long run, whilst being environmentally
beneficial too.

We are indeed committed to recycling concepts, and


we ensure that proper transportation, treatment and
disposal methods are used when it comes to dealing
with toxic substances.

Going forward, we plan to tastefully incorporate the


concept of indoor cum outdoor living which lessens
our dependence on artificial lighting and cooling
systems, which in turn reduces energy consumption.
High ceilings and vast spaces provide natural cooling,
and lessens are reliance on air-conditioning units. To
this same end, we will be using water features and
fountains, which in turn will provide cooling, whilst
being aesthetically appealing, too.

We will also be using natural materials in our design


and construction, wherever possible. For instance, we
use natural thatching for roofs, indigenous wood for
floors and stairways, to name but a few examples.

Engaging the Local Community

We believe in giving back to the local community, and


We honour all statutory requirements, regulations and making a lasting impression on the people whose lives
ordinances that are put in place by the government and we touch.
local authorities, in order to protect the environment
around us. However, we do not rest on our laurels by At Anilana Nilaveli, we have commenced giving out
doing so, and instead we take eco-consciousness to the lunch to nearby trishaw drivers, Navy and Police life
next level, by ensuring that each stage of operations, savers, Wild Life ticketing counter staff and boatmen,
be it design, construction or implementation, is carried each month. This has earned us a host of goodwill and
out in a sustainable and cost effective manner. We made a positive impact in the local community, too.
are proud to state that the National Geographic has
recognized our efforts in this regard, and presented
Anilana Pasikudah with a Certificate of Appreciation
for its contribution to Geo tourism.

We at Anilana, have invested in state-of-the-art,


modern equipment and effective computerized
monitoring systems that maximizes the efficient use
of resources.

We believe that water is a precious commodity and by


incorporating an effective water management system
and natural filtration programme we ensure that we
have access to clean water supplies at all times, which
is adequate to fulfil all our operational requirements.

46
We provide free transfers to Vallachennai, in

Corporate Social Responsibility


our bid to promote local markets to our guests,
who can then shop for apparel or items to satisfy
their day-to-day needs when the need to do so
arises; which in turn will benefit the traders of the
area, who aim to carve out their livelihoods in this
manner.

At Anilana, we also take a keen interest in the


development of sports, be it cricket, rugby or
tennis. In fact, we recently we organized a cricket
match in Vakarai and sponsored some cricket
gear; an act that the locals truly appreciated.

Sponsorship

We give priority to recruiting locals and encourage them


to be a part of our growing team. We do this, by working
closely with local hotel schools and the Vocational
Training Authority (VTA) of Sri Lanka. To elaborate further,
Anilana is a significant contributor to the
we promote the recruitment of trainees for our kitchens
development of sport, particularly for Rugby,
from the Vocational Training Authority in Trincomalee,
Cricket and Tennis. Over the past years we
and we prefer to hire Kitchen, Food and Beverage and
have provided regular financial support,
House Keeping trainees from the National Apprentice and
sponsorship and have commissioned corporate
Industrial Training Authority in Trincomalee and Kantale.
advertisements to promote Anilana as well as
sponsoring teams and tournaments.
We believe in being an equal opportunities employer, and
to this end, we aim to recruit more women to be a part of
our operations. In fact we have commenced discussions
with the VTA on how to further hire qualified female cadre
to be a part of the Anilana family.

We purchase most of our produce, be it seafood, meat,


vegetables or dairy, from local farmers, who are encouraged
to grow organic produce and fish in a sustainable manner.

47
Corporate Governance C orporate Governance is the system by which
Companies are directed, managed and controlled
by the management in the best interest of the
Committee, each of which consists of three Non-
Executive Directors. Reports of the Remuneration
Committee and the Audit Committee are set out in the
Shareholder. pages 53 and 52 respectively of the Annual Report.

The Board of Directors is responsible for the


Governance of the Company whilst the Shareholders ‘ Company Secretaries
role in Governance is to appoint the Directors and the
Auditors and to satisfy themselves that an appropriate Corporate Advisory Services (Private) Limited, who
governance structure is in place. were appointed with effect from 19th May 2010,
provides Corporate Secretarial Services to the
Company. The Company Secretaries advise the
Compliance with the Code of Best Practice Board on matters relating to the Companies Act,
and Listing Rules the Colombo Stock Exchange regulations and other
applicable rules and regulations in order to ensure
The Company currently complies with key areas of that the best governance practices are adopted by the
the Code of Best Practice for Corporate Governance Board and its Committees.
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 Compliance with Legal Requirements
Exchange.
All Directors have access to the Financial and
Management Information of the Company. The
Board of Directors Directors make every endeavor to ensure that the
Company complies with laws and regulations and
The Board of Directors takes responsibility for good to exercise due diligence in managing the affairs of
governance of the Company. The Company’s Board the Company. Additionally, checks and controls are
consists of 5 Directors, the names of the members in place to ensure that the policies of the Board are
of the Board appear under Corporate Information on complied with.
the inner back cover of this Report. One Third of the
Directors retire by rotation at each Annual General
Meeting and those eligible are recommended for re- The manner and the extent to which the Company has
election. applied the principles of good Corporate Governance
practices during the period under review is set out in
The Directors collectively possess a wide range of the table below.
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 four (4) 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 56 of this
Report.

Board Sub- Committees

The Board 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-

48
Rule No Subject Applicable requirement Compliance Details
Status
7.10.1 Non Executive Directors At least 1/3 of the total number of Directors should Complied 4 out of 5 Directors are Non-
be Non-Executive Directors Executive Directors
7.10.2 Independent Directors 2 or 1/3 of Non-Executive Directors, which is Complied 2 off 4 Non-Executive
higher should be independent Directors are independent.

Each Non Executive Director should submit a Complied Non-Executive Directors have
declaration of Independence/ Non Independence submitted the Declarations.
in the prescribed format.

7.10.3 Disclosure relating to (a) Names of Independent Directors should be Complied Please refer information
Directors disclosed in the Annual Report pertaining to the Directors and
Board Sub Committees on
page 12 of the Annual Report
7.10.5 Remuneration Committee A listed Company shall have a Remuneration Complied Board had established a
Committee Remuneration Committee
(a) Composition of the
Remuneration Committee The Remuneration Committee shall comprise of Complied The Remuneration Committee
Non-Executive Directors and majority of which has 3 members 2 of whom are
(b) Factions of the can be independent independent.
Remuneration Committee
The Remuneration Committee shall recommend Complied Please refer to the
(c) Disclosure in the the remuneration of the Key Management Remuneration Committee
Annual Report relating to Personnel and Executive Directors Report on page 53 of the
Remuneration Committee The Annual Report should set out: Annual Report.

a) Names of Directors comprising the Complied Please refer Directors


Remuneration Committee information on page 12 of the
Annual Report.
b) Statement of Remuneration Policy Complied
Please refer the Remuneration
c) Aggregate Remuneration paid to Executive and Complied Committee Report on page 53
Non -Executive and Non- Executive Directors for a brief statement of policy

Please refer Notes to the


Accounts on page 71.
7.10.6 Audit Committee The Company shall have an Audit Committee Complied The Board has constituted an
Audit Committee.
(a) Composition of Audit a) Shall Comprise of Non-Executive Directors a Complied
Committee majority of whom shall be independent Audit Committee consists of
3 Directors of which 2 are
(b) Audit Committee b) The Chairman of the Audit Committee or one Complied independent.
Functions member should be a member of a professional
accounting body Chairman of the Audit
(c) Disclosure in the Annual Committee is member of a
Report relating to the Audit Should be as outlined in the section 6 of the Complied Professional Accounting Body
Committee Listing Rules
Please refer page 52
a) Names of the Directors comprising the Audit Complied
Committee Please refer Information of
the Board of Directors and the
b) The Audit Committee shall make a Complied Board Sub Committees on
determination of the independence of the Auditors page 12 of the Annual Report
and disclose such determination
Please refer to Audit
c) The Annual Report shall contain a Report of Complied Committee Report on page 52
the Audit Committee setting out the manner of of the Annual Report
compliance of the functions
Please refer to Audit
Committee Report on page 52
Of the Annual Report

7.6 (v) Statement of Directors and A Statement of each Director’s holding and Complied Please refer page 54
Chief Executive Officers Chief Executive Officer’s holding in shares of the
Shareholding Company at the beginning and end of the financial
year

49
Other Policies and Practices Relationship with shareholders
Corporate Governance Obtaining Independent Professional Advice The Annual Report and the Annual General Meeting
form the principal means of communication with the
The Board in discharging its duties seeks independent shareholders quarterly financial statements of the
professional advice from external parties when company and that of the Group have been uploaded
necessary, at the company’s expenses. to the CSE website within the stipulated time frame.

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 policies 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

There was no remuneration paid to the Directors during


the year. 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 in page 53.

50
51
Role of the Audit Committee b. The Committee reviewed the periodic internal
Audit Committee Report audit reports. The internal audits are done to
The Audit Committee is a sub-committee of the main improve process performance and control.
Board to which it is accountable. The primary function
of the Audit Committee is to assist the Board in its c. The Committee reviewed the external auditors’
oversight of the integrity of the financial statements report and management letter for the last year.
of the Company, to assess the qualifications, the All recommendations proposed by the external
independence and the performance of the Company’s auditors were discussed and recommendations
external auditor and review compliance of the proposed were duly carried out by the
Company with legal and regulatory requirements. management. In addition, the Audit Committee
reviewed the engagement partner’s relationships
Composition of the Audit Committee with the Company, and assessed that the external
auditors are independent.
The Audit Committee comprises of the following
three Non-Executive Directors of Anilana Hotels & d. The Audit Committee in conjunction with the
Properties PLC of which two are independent. Managing Director and Head of Finance of the
Company reviewed the Company’s disclosure
Mr. Gamini Benedict Wikremanayake controls and procedures and internal control over
Chairman of the Audit Committee financial reporting.

Mrs. Manjula Cleone Seneviratne e. The Audit Committee reviewed the Company’s
Committee Member policies and practices with respect to risk
assessment and risk management, including
Mr. Ajahn Gardiye Punchihewa discussing with management the Company’s
Committee Member major financial risk exposures and the steps that
have been taken to monitor and control such
The Managing Director and the Head of Finance attend exposures.
meetings at the invitation of the Audit Committee. The
Board Secretary functions as the Secretary to the
Audit Committee. Representatives of external auditors Conclusion
and internal auditors also attend Audit Committee
meetings by invitation. The Audit Committee is satisfied that the Company’s
accounting policies, independence of the auditors
The Audit Committee Chairman has the required and risk management are adequate for the Company.
expertise in Finance and Business Management to The Audit Committee has also accomplished
deliberate Audit Committee matters and recommend responsibilities and functions that are delegated to it
necessary action to be taken. by the Board.

Meetings

The Audit Committee met 03 times during the year. Signature


The attendance of the members at the meeting is as Mr Gamini Benedict Wikremaratne
follows. Chairman- Audit Committee
28th August 2015
Mr. Gamini Wikremanayake 3/3
Mrs. Manjula Cleone Seneviratne 3/3
Mr. Ajahn Gardiye Punchihewa 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 2014/15 and
the Annual Report of 2014/15. 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.

52
Role of the Remuneration Committee relevant and benchmarking specific categories

Remuneration Committee Report


where required.
The Committee reviews the performance of the
executive staff against the set objectives and goals, c. Ensuring internal equity and fairness in and
and determines the compensation policy of the between the various pay categories and building
Company for all levels of employees. The Committee incentives in the cost of employment structure to
supports and advises the Board on remuneration and encourage and reward excellent performance,
remuneration related matters and makes decisions on objectively defined criteria.
under delegated authority with a view to aligning the
interests of employees and shareholders. d. Ensuring that staff costs are within the budget set
by the Board, and are sustainable over time.

Composition of the Remuneration Committee


Conclusion
The Remuneration Committee is a sub-committee
of the Main Board, to which it is accountable. The The Committee is satisfied that it has completed the
Remuneration Committee comprises of the following responsibilities that were delegated to it by the Board
three Non-Executive Directors of Anilana Hotels & for the year under review and the necessary objectives
Properties PLC of which two are independent. were achieved for the year under review.

Mr. Gamini Benedict Wikremanayake


Chairman of the Remuneration Committee

Mrs. Manjula Cleone Seneviratne


Committee Member

Mr. Ajahn Gardiye Punchihewa Signature


Committee Member Gamini Benedict Wikremanayake
Chairman- Remuneration Committee
28th August 2015
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

53
Annual Report of the Board of Directors on the Affairs of the Company The Directors take pleasure in presenting their report
together with the Audited Financial Statements for the Directors’ interests in shares
year ended 31st March, 2015.
The Directors’ interests in shares as at 31st March, 2015
Principal activities were as follows:

The Company’s principal activity is constructing and As at As at


managing hotels. The company also maintains a separate 31.03.2015 31.03.2014
property portfolio as investment. Asanga Chandana Seneviratne 126,579,839 98,282,123
Manjula Cleone Seneviratne 20,000,001 20,000,001
Directorate
Peter Lucien Amerasinghe 966,667 966,667
The Directors of the Company during the year under Ajahn Gardiye Punchihewa 40,000 40,000
review are as follows: Gamini Benedict Wikramanayake - -
Wahalathanthrige Manjula Viraj - -
Asanga Chandana Seneviratne Perera
Manjula Cleone Seneviratne
Peter Lucien Amerasinghe
Ajahn Gardiye Punchihewa
Director’s interests in contracts
Gamini Benedict Wikramanayake (Resigned with effect
from 30th March 2015)
In accordance with the provisions of the Companies Act
Wahalathanthrige Manjula Viraj Perera (Appointed
No. 7 of 2007, the Directors have made declarations
with effect from 18th May 2015 )
relating to their interests. These have been entered
into the Interest Register which is maintained by the
Directors meetings Company.

At each Board meeting, performance to date is reviewed


Director’s remuneration
and compared with targets. Presentations are made
covering all aspects of operations, including productivity.
The Directors remuneration is disclosed on page 53.
The Board is constantly seeking to optimize resources
and manage costs.
Board sub committees
The financial positions monitored against budgets.
During the year under review, an Audit Committee was
Comprehensive papers are presented on the financial
appointed by the Board. The Audit Committee approved
position of the Company for the month under review and
an Audit Charter which describes the role and the
the year to date. Comparisons are also made with the
functions of the Committee.
previous years’ figures and with the macro environment,
to detect trends and the impact of outside influences.
Review of business
Where necessary, decisions are taken by circular
resolutions, to expedite action. Cessation of the civil conflict has opened up high
potential tourist destinations for development within Sri
Lanka. Developing infrastructure is assisting fast access
Re-election of Directors
to previously inaccessible locations on the east coast
enhancing the value of land over the long term.
To re-elect Mrs Manjula Cleone Seneviratnewho retires
by rotation at the Annual General Meeting in terms of
Details on the Company’s performance for the year
Article 81 of the Company’s Articles of Association.
under review can be found in the statements of the
Chairman and the Managing Director (found on pages
To re-appoint as a Director, Mr. Peter Lucien Amerasinghe
8 to 11)
who is 71 years of age and who vacates his office in
terms of Section 210 of the Companies Act 7 of 2007.
Directors’ responsibility for financial reporting
Notice is hereby given of the undernoted Ordinary
Resolution in relation to Mr. Peter Lucien Amerasinghe’s The Directors are responsible for the preparing of
re-appointment to be passed in compliance with Section Financial Statements of the Company. The Directors
211 of the Companies Act No. 7 of 2007. believe that the Financial Statements (appearing on
page 56) have been prepared in accordance with the
“RESOLVED THAT Mr. Peter Lucien Amerasinghe who requirements of the Sri Lanka Accounting Standards,
is 71 years of age be and is hereby re-appointed a the Companies Act No. 7 of 2007, and that they reflect
Director of the Company and it is hereby declared as a true and fair view of the state of Companies affairs for
provided for in section 211 of the Companies Act No. the year under review.
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.”

54
Responsibility statements Statutory Payments

Annual Report of the Board of Directors on the Affairs of the Company


The Directors responsibility statement appears on For the year under review, all known statutory payments
page 56. have been made and all retirement gratuities have
been provided for. Further, all management fees and
Going concern payments to related parties for the year under review
have been reflected in the accounts. Details are given
The Directors are of the view that the Company is in a in Note no 6 page 71.
position to continue its operations in the foreseeable
future. Accordingly, the financial statements are
prepared on the basis that the Company is a going Number of Employees
concern.
The number of employees as at 31st March 2015 was
Financial Statements 194

The Financial Statements are given on pages 58 to 87


Stated Capital
Financial Results
The stated capital of the Company is Rs. 3,863,261,648
The financial results for the year ended 31st March made up of 493,308,514 Ordinary Shares.
2015.
The shareholding structure is given on pages 88 to 89
2015 2014 together with the 20 largest shareholders.
Rs.’000 s Rs.’000 s
During the year, the share price ranged from Rs. 5.40
Revenue 218,612 76,742 to Rs.8.50. As at the end of trading on 31st March
Net Loss Before Taxation 456,743 308,164 2015 the share price was Rs. 5.60.
Less: Taxation 111 900
Net Loss After Taxation 456,854 309,064
Equitable treatment of shareholders
Auditors The Directors have made every endeavour to ensure
the equitable treatment of all shareholders, and are
To re-appoint the retiring Auditors M/s Amarasekera
committed to maximizing shareholder wealth.
& Co, Chartered Accountants to hold office until
the conclusion of the next Annual General Meeting
All Notices of Shareholders’ Meetings are sent out
and to authorize the Directors to determine their
in accordance with the provision of the Company’s
remuneration.
Articles of Association. Any shareholder unable to
attend is still able to indicate his/her consent or dissent
The Auditors have confirmed that they have had no
on any decision, by completing and returning the two
interest in or relationship with the Company other than
way proxy provided with the Notice.
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.
Notice of Meeting

The Notice of Meeting is found on page 90 If you are


During the year under review, the Auditors were paid
unable to be present, please complete and return the
Rs. 601,816.00 as audit fees.
Form of Proxy (page 91 enclosed).
Auditors Report
BY ORDER OF the Board of Directors
The Auditors report appears on page 58.
of ANILANA HOTELS & PROPERTIES PLC

Significant accounting policies

The significant accounting polices adopted when Peter Amerasinghe Asanga Seneviratne
preparing thee Financial Statements and any changes Chairman Managing Director
thereto (if applicable) are given on pages 64 to 70

Corporate Advisory Services (Pvt) Ltd.


Secretaries

55
The Directors are responsible under the companies
Statement of Directors’ Responsibilities Act No.07 of 2007, to ensure compliance of the
requirements set out therein to prepare financial
Compliance Report

statements for each financial year giving true and fair The Directors confirm that to the best of their knowledge
view of the state of the affairs of the Company as at and belief that all statutory payments in relation to
the Balance sheet date and the profit of the company regulatory and statutory authorities that were due
for the financial year. in respect of the company and its subsidiaries as at
the balance sheet date have been duly paid where
relevant provided for.
The Directors accept the responsibility for the integrity
and objectivity of the financial statements presented.
The Directors confirm that the financial statements By order of the Board
have been prepared; Anilana Hotels & Properties PLC

• using appropriate accounting policies which have


been selected and applied in a consistent manner, and
material departures, if any have been disclosed and Corporate Advisory Services (Pvt) Ltd.
explained: and
Secretaries to the Company
• presented in accordance with the Sri Lanka
Accounting Standards; and that 29th August 2015

• 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.

56
57
58
Independent Auditor’s Report
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
(Expressed in Sri Lankan Rupees)

Group Company
FOR THE YEAR ENDED 31 MARCH 2015 2014 2015 2014
Note
Revenue 3 218,611,905 76,741,863 112,641,079 -

Cost of Sales (56,965,585) (34,456,841) (35,663,388) -

Gross Profit 161,646,320 42,285,022 76,977,691 -

Other Income 4 2,822,261 2,092,552 2,772,698 2,092,552

Administrative Expenses (408,456,996) (262,116,403) (247,532,252) (123,453,457)

Business Promotion Expenses (9,175,155) (16,073,585) (5,771,648) (12,058,071)

Profit / (Loss) from Operation (253,163,570) (233,812,414) (173,553,510) (133,418,977)

Net Gain / (Loss) from Financial Assets at Fair Value through Profit or Loss
836,570 50,415,799 1,036,572 50,469,132

Finance Income 5 713,400 4,840,392 678,267 4,834,084

Finance Cost 5 (205,129,614) (129,607,993) (162,137,973) (39,052,887)

Profit / (Loss) Before Taxation 6 (456,743,215) (308,164,216) (333,976,643) (117,168,648)

Income Tax Expense 7 (110,790) (900,000) (103,248) (900,000)

Profit / (Loss) for the Year (456,854,005) (309,064,216) (334,079,891) (118,068,648)

Attributable to - Equity holders of the Parent (456,853,973) (309,064,208) (334,079,891) (118,068,648)

Attributable to - Non-Controlling Interest (32) (8) - -


(456,854,005) (309,064,216) (334,079,891) (118,068,648)

Basic Earnings / (Loss) Per Share (Rs.) 8 (1.09) (0.83) (0.80) (0.32)

Profit / (Loss) for the Year (456,854,005) (309,064,216) (334,079,891) (118,068,648)

Other Comprehensive Income / (Expense)


Net Acturial Gain on Retirement Benefit Obligations 147,979 5,014,748 (101,825) 3,943,654

Total Comprehensive Income / (Expense) for the Year (456,706,026) (304,049,468) (334,181,716) (114,124,994)

Attributable to - Equity holders of the Parent (456,705,994) (304,049,460) (334,181,716) (114,124,994)

Attributable to - Non-Controlling Interest (32) (8) - -


(456,706,026) (304,049,468) (334,181,716) (114,124,994)

Audit Report on Page 58


Figures in brackets indicate deductions
Notes to the Financial Statements on Pages 64 to 87 form an integral part of these Financial Statements.
59
Statement of Financial Position

60
(Expressed in Sri Lankan Rupees)
Group Company
AS AT 31 MARCH
Note 2015 2014 2015 2014

ASSETS

Non-Current Assets

Audit Report on Page 58


Property, Plant and Equipment 9 5,114,103,816 5,050,114,111 2,074,822,595 2,029,252,157
Intangible Assets 10 3,389,018 4,776,636 3,389,018 4,776,636

Figures in brackets indicate deductions


Leasehold Land 11 32,227,556 33,559,556 - -
Investment in Subsidiaries 12 - - 1,263,373,960 1,263,373,960
Available-for-Sale (AFS) Financial Assets 14 12,000,000 12,000,000 12,000,000 12,000,000
Total Non-Current Assets 5,161,720,390 5,100,450,303 3,353,585,573 3,309,402,753

Current Assets
Inventories 15 40,720,807 28,247,450 22,510,868 -
Financial Assets at Fair Value through Profit or Loss
16 12,561,016 98,032,271 11,814,352 97,085,604
(FVTPL)
Trade and Other Receivables 17 192,090,049 250,943,072 1,277,936,079 1,159,456,156
Other Non-Financial Assets 18 6,830,575 3,874,219 4,322,164 1,645,736
Cash and Cash Equivalents 19 13,935,221 7,825,794 8,835,735 2,178,334
Total Current Assets 266,137,668 388,922,805 1,325,419,199 1,260,365,830

Notes to the Financial Statements on Pages 64 to 87 form an integral part of these Financial Statements.
Total Assets 5,427,858,058 5,489,373,109 4,679,004,772 4,569,768,583

EQUITY AND LIABILITIES

Equity
Stated Capital 20 3,863,261,648 3,095,892,850 3,863,261,648 3,095,892,850
Revaluation Reserve 717,115,313 717,115,313 231,490,273 231,490,273
Retained Earnings (at debit) (1,167,285,515) (710,579,521) (766,784,030) (432,602,314)
Attributable to Equityholders of the Parent 3,413,091,446 3,102,428,642 3,327,967,891 2,894,780,809
Non - Controlling Interest (1,091) (1,060) - -
Total Equity 3,413,090,355 3,102,427,582 3,327,967,891 2,894,780,809
Statement of Financial Position
(Expressed in Sri Lankan Rupees)

Group Company
AS AT 31 MARCH
Note 2015 2014 2015 2014

Non - Current Liabilities


Borrowings - (Non-Current Potion) 21 1,201,314,990 1,481,568,563 655,289,429 868,599,439

Audit Report on Page 58


Retirement Benefit Obligations 22 2,724,048 1,567,406 2,285,960 1,168,901
Total Non - Current Liabilities 1,204,039,038 1,483,135,969 657,575,389 869,768,340

Figures in brackets indicate deductions


Current Liabilities
Trade and Other Payables 23 281,991,117 516,768,354 234,802,372 462,032,165
Borrowings - (Current Potion) 21 417,178,239 294,514,443 352,185,750 251,692,443
Other Non-Financial Liabilities 24 5,642,640 4,167,199 2,955,739 3,135,264
Bank Overdrafts 19 105,916,669 88,359,563 103,517,631 88,359,563
Total Current Liabilities 810,728,665 903,809,558 693,461,492 805,219,435
Total Equity and Liabilities 5,427,858,058 5,489,373,109 4,679,004,772 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.

………………………
M. V. Perera

Notes to the Financial Statements on Pages 64 to 87 form an integral part of these Financial Statements.
Head of Finance

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,

.................................................... ……...............................................
A. C. Seneviratne A. Punchihewa
Director Director

Date : 28 August 2015.
Colombo.

61
Statement of Changes in Equity for the Year Ended 31st March 2015
(Expressed in Sri Lankan Rupees)
Attributable to Equityholders of the Parent
Retained Non-Con-
Revaluation
Group Stated Capital Earnings trolling Total Equity
Reserve
(at debit) Interest

Balance as at 01 April 2013 2,601,483,250 717,115,313 (406,530,060) (1,052) 2,912,067,452

Issuance of Shares 494,409,600 - - - 494,409,600

Loss for the Year - - (309,064,209) (8) (309,064,217)

Other Comprehensive Income - - 5,014,748 - 5,014,748

Balance as at 31 March 2014 3,095,892,850 717,115,313 (710,579,521) (1,060) 3,102,427,582

Issuance of Shares 767,368,798 - - - 767,368,798

Loss for the Year - - (456,853,973) (32) (456,854,005)

Other Comprehensive Income /


- - 147,979 - 147,979
(Expense)

Balance as at 31 March 2015 3,863,261,648 717,115,313 (1,167,285,515) (1,091) 3,413,090,355

Company
Stated Capital Revaluation Retained Total Equity
Reserve Earnings Attributable to
(at debit) Equityholders
of Parent

Balance as at 01 April 2013 2,601,483,250 231,490,273 (318,477,320) 2,514,496,203

Issuance of Shares 494,409,600 - - 494,409,600

Loss for the Year - - (118,068,648) (118,068,648)

Other Comprehensive Income - - 3,943,654 3,943,654

Balance as at 31 March 2014 3,095,892,850 231,490,273 (432,602,314) 2,894,780,809

Issuance of Shares 767,368,798 - - 767,368,798

Loss for the Year - - (334,079,891) (334,079,891)

Other Comprehensive Income /


- - (101,825) (101,825)
(Expense)

Balance as at 31 March 2015 3,863,261,648 231,490,273 (766,784,030) 3,327,967,891

Audit Report on Page 58


Figures in brackets indicate deductions
Notes to the Financial Statements on Pages 64 to 87 form an integral part of these Financial Statements.
62
Statement of Cash Flows for the Year Ended 31st March 2015
(Expressed in Sri Lankan Rupees)

Group Company
2015 2014 2015 2014

Cash Flows from Operating Activities


Profit / (Loss) Before Taxation (456,743,215) (308,164,217) (333,976,643) (117,168,648)

Adjustments for;
Depreciation 149,977,053 71,357,349 75,223,836 3,224,824
Amortization of Intangible Assets 1,387,619 1,080,728 1,387,619 1,080,728
Amortization of Leasehold land 1,332,000 1,332,000 - -
Gratuity Charge for the Year 1,304,621 1,391,545 1,015,234 1,000,421
Net Gain / (Loss) from Financial Assets at Fair Value through Profit (836,570) (50,415,799) (1,036,572) (50,469,132)
or Loss
Loss on Disposals of Shares 5,312,485 - 5,312,485 -
Interest Expenses 205,129,614 129,607,993 162,137,973 39,052,887
Interest Income (713,400) (4,840,392) (678,267) (4,834,084)
Operating Loss Before Working Capital Changes (93,849,793) (158,650,792) (90,614,337) (128,113,003)

Changes in Working Capital


Inventories (12,473,357) (28,247,450) (22,510,868) -
Trade and Other Receivables 58,853,023 29,102,957 (118,479,924) (189,907,975)
Other Non-Financial Assets (3,067,146) (2,514,293) (2,779,676) (445,059)
Other Non-Financial Liabilities (234,777,236) 1,352,841 (179,525) 906,132
Trade and Other Payables 1,475,441 53,667,591 (227,229,793) 57,886,164
Cash Generated from / (used in) Operations (283,839,068) (105,289,146) (461,794,123) (259,673,742)

Interest Paid (176,793,020) (129,607,993) (142,452,379) (39,052,887)


Net Cash Flow from / (used in) Operating Activities (460,632,088) (234,897,139) (604,246,502) (298,726,629)

Cash Flows from Investing Activities


Acquisition of Property, Plant and Equipment / Incurred on WIP (213,966,758) (632,417,311) (120,794,274) (443,167,520)
Investments In Shares - (10,941,820) - (10,941,820)
Proceeds from Disposal of Shares 80,995,340 - 80,995,340 -
Investment in Subsidiaries - - - (10)
Interest Received 713,400 4,840,392 678,267 4,834,084
Net (Investments in) / Withdrawal of Fixed Deposits - 34,721,212 - 34,721,212
Net Cash Flow from / (used in) Investing Activities (132,258,018) (603,797,528) (39,120,666) (414,554,054)

Cash Flows from Financing Activities


Term Loans Obtained 3,271,690 545,542,504 - 421,109,961
Settlements of Term Loan (189,176,918) - (132,481,153) -
Lease Rentals Paid (21,144) - (21,144) -
Issuance of Shares 767,368,798 494,409,600 767,368,798 494,409,600
Net Cash Flow from Financing Activities 581,442,426 1,039,952,104 634,866,501 915,519,561

Net Changes in Cash and Cash Equivalents During the Year (11,447,680) 201,257,437 (8,500,667) 202,238,878

Cash and Cash Equivalents at Beginning of the Year (80,533,769) (281,791,206) (86,181,229) (288,420,107)

Cash and Cash Equivalents at End of the Year (91,981,449) (80,533,769) (94,681,896) (86,181,229)

Audit Report on Page 58


Figures in brackets indicate deductions
Notes to the Financial Statements on Pages 64 to 87 form an integral part of these Financial Statements.
63
1 CORPORATE INFORMATION 2.1.1 New accounting standards, amendments and
Notes to the Financial Statements 1.1 Reporting Entity
interpretations issued and adopted in 2015.
The following standards have been adopted by the
Group for the first time with effect from financial year
Anilana Hotels & Properties PLC is a Company
incorporated and domiciled in Sri Lanka. The Registered beginning on 1 January 2014.
office of the Company was located at 14, Reid Avenue,
Colombo 07. I. SLFRS 10 ‘Consolidated Financial Statements’, builds
on existing principles by identifying the concept of control
The consolidated financial statements of the company as the determining factor in whether an entity should be
as at and for the year ended 31 March 2015 comprise included within the consolidated financial statements of
the Company and its Subsidiaries. The group has eight the parent company. The standard provides additional
(8) subsidiaries and sub-subsidiaries. guidance to assist in the determination of control where
this is difficult to assess.
1.2 Nature of Operations and Principal Business
Activities II. SLFRS 12 ‘Disclosure of Interests in Other Entities’,
The Company’s and subsidiaries of the group Principal includes the disclosure requirements for all forms of
Activities are Developing and Managing Hotels and interests in other entities, including joint arrangements,
Properties. associates, special purpose vehicles and other off
balance sheet vehicles.
There were no significant changes in the nature of the
principal activities of the company and group during the III. SLFRS 13 ‘Fair Value Measurement’, aims to improve
financial year under review. consistency and reduce complexity by providing a
precise definition of fair value and a single source of
1.3 Date of Authorization for Issue fair value measurement and disclosure requirements for
The Financial Statements of Anilana Hotels & Properties use across Sri Lanka Accounting Standards.
PLC for the year ended 31 March 2015 was authorized
for issue in accordance with a resolution of the Board of
directors on 28 August 2015. Other than the above changes, the amendments made
to the other standards do not have a significant effect to
the group financial statements.
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES 2.1.2 Sri Lanka Accounting Standards (SLFRS/
LKAS) issued but not yet effective
2.1 Basis of Preparation Standards issued but not yet effective up to the date
The consolidated financial statements of Anilana Hotels of issuance of the financial statements are listed below.
and Properties Limited have been prepared in accordance The group intends to adopt those standards when they
with Sri Lanka Accounting Standards (SLFRSs). The become effective.
preparation of financial statements in conformity with Sri
Lanka Accounting Standards (SLFRSs) requires the use I. SLFRS 9-Financial Instruments: SLFRS 9, issued
of certain critical accounting estimates. It also requires in 2014, replaces the existing guidance in LKAS 39
management to exercise its judgment in the process Financial instruments; Recognition and Measurement.
of applying the group accounting policies. The areas SLFRS 9 includes revised guidance on the classification
involving a higher degree of judgments or complexity, or and measurement of financial instrument, including
areas where assumptions and estimates are significant a new expected credit loss model for calculating
to the financial statements are disclosed in note 2.23. impairment on financial assets, and the new general
hedge accounting requirements. It also carries forwards
The consolidated financial statements have been the guidance on recognition of financial instrument from
prepared on the historical cost basis and apply LKAS 39.Effetive date of IFRS 9 is 1 January 2018.
consistently with no adjustments been made for
inflationary factors affecting the financial statements, II. SLFRS 15 – Revenue from contracts with customers:
except for the following material items in the statement SLFRS 15 establish a comprehensive framework for
of financial position: determining whether, how much and when revenue
is recognized. It replace existing revenue recognition
I. Lands are measured at revalued amounts. guidance, including LKAS 18 Revenue and LKAS 11
II. Fair Value through Profit & Loss – Financial Assets construction Contracts. SLFRS 15 is effective for annual
measured at fair value reporting period beginning on or after 1 January 2017.
III. Defined benefit obligation are measured at its present
values, based on the projected unit credit method. The Company is assessing the potential impacts on its
financial statements resulting from the application of
These financial statements have been prepared on the SLFRS 15 / SLFRS 9.
basis that the company and the Group would continue
as a going concern for the foreseeable future. 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
64 Notes to the Financial Statements continued
indicated. at fair value.
The presentation and classification of the consolidated Inter-entity transactions, balances, income and expenses
financial statements of the previous year have been on transactions between group entities are eliminated.
amended, where relevant, for better presentation and to Profits and losses resulting from Inter-entity transactions
be comparable with those of the current year. that are recognized in assets are also eliminated.

2.3 Foreign Currency Translation Goodwill is initially measured at cost, being the excess
2.3.1 Functional and Presentation Currency of the aggregate of the consideration transferred and the
Transaction and balances included in the financial amount recognized for non-controlling interest over the
statements of the Group are measured using the currency net identifiable assets acquired and liabilities assumed.
of the primary economic environment in which the entity If the fair value of the net assets acquired is in excess
operates. The financial statements are presented in Sri of the aggregate consideration transferred, the gain
Lanka Rupees (LKR), which is the company’s presentation is recognized in profit or loss. After initial recognition,
currency. goodwill is measured at cost less any accumulated
impairment losses. For the purpose of impairment testing,
2.3.2 Transactions and Balances goodwill acquired in a business combination is, from the
Foreign currency transactions are translated into the acquisition date, allocated to each of the Group’s cash
functional currency using the exchange rates prevailing at generating units.
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 Non-controlling Interest
of monetary assets and liabilities denominated in
foreign currencies are recognized in the statement of Non-controlling interest which represents the portion
comprehensive income. of profit or loss and net assets not held by the Group,
Translation differences related to changes in amortized are shown as a component of profit for the year in
cost are recognized in the statement of comprehensive the consolidated income statement and statement of
income. comprehensive income and as a component of equity in
the consolidated statement of financial position, separately
2.4 Basis of Consolidation from equity attributable to the shareholders of the parent.
2.4.1 Consolidation / Subsidiaries
Subsidiaries are investees that are controlled by the The Group elects the proportionate share of the recognized
Company. The Company ‘controls’ an investee if it is amount of the identifiable net assets, at the acquisition
exposed to, or has rights to, variable returns from its date to measure non-controlling interest.
involvement with the investee and has the ability to affect
those returns through its power over the investee. The Changes in the Group’s interest in a subsidiary that do not
Company reassess whether it has control if there are result in a loss of control are accounted for as transactions
changes to one or more of the elements of control. with owners in their capacity as owners. Adjustments to
non-controlling interests are based on a proportionate
There are no significant restrictions on the ability of amount of the net assets of the subsidiary
subsidiaries to transfer funds to the Company (The Parent)
in the form of cash dividend or repayment of loans and 2.4.2 General
advances. Adjustments required to the accounting policies of
subsidiaries have been changed where ever necessary to
Consolidation of a subsidiary begins when the Group align them with the policies adopted by the group.
obtains control over the subsidiary and ceases when the
Group loses control of the subsidiary. Assets, liabilities, The Financial Statements of all subsidiaries in the Group
income and expenses of a subsidiary acquired or disposed have a common financial year which ends on March 31.
of during the year are included in the consolidated financial
statements from the date the Group gains control until the 2.5 Property, Plant and Equipment
date the Group ceases to control the subsidiary. 2.5.1 Recognition and Measurement
All the item of property, plant and equipment are initially
Profit or loss and each component of other comprehensive recorded at cost. Where items of property, plant and
income (OCI) are attributed to the equity holders of the equipment are subsequently revalued, the entire class
parent of the Group and to the non-controlling interests, of such assets is revalued. Revaluations are made with
even if this results in the non-controlling interests having a sufficient regularity to ensure that their carrying amounts
deficit balance. do not differ materially from their fair values at the reporting
date.
A change in the ownership interest of a subsidiary,
without a loss of control, is accounted for as an equity Cost includes expenditure that is directly attributable to
transaction. If the Group loses control over a subsidiary, the acquisition of the asset. The cost of self- constructed
it derecognizes the related assets (including goodwill), assets includes the following.
liabilities, non-controlling interest and other components of
equity while any resultant gain or loss is recognized in the
income statement. Any investment retained is recognised

Notes to the Financial Statements continued 65


• The cost of materials and direct labour property, plant and equipment less their estimated residual
• Any other costs directly attributable to bringing the assets values using the straight- line basis over their estimated
to a working condition for their intended use; useful lives. Depreciation is recognized in profit or loss.
• When the group has an obligation to remove the asset or Leased assets are depreciated over the shorter of the
restore the site, an estimate of the cost of dismantling and lease term and their useful lives unless it is reasonably
removing the items and restoring the site on which they certain that the Group will obtain ownership by the end of
are located; and the lease term. Land is not depreciated.
• Capitalized borrowing costs
The estimated useful lives for the current year of property,
When parts of an item of property, plant and equipment plant and equipment are as follows.
have different useful lives, they are accounted for as
separate items (major components) of property, plant and Assets Number of Years Rates (%)
equipment.
Buildings 5 – 50 2 - 20
Subsequent to the initial recognition of the assets at cost, Land Development Cost (in
30 3.33
the revalued property, plant and equipment are carried at Leasehold Land)
revalued amounts less accumulated depreciation thereon Road Ways 10 10
and accumulated impairment losses. The Group applies Plant and Machinery 5 - 20 5 - 20
revaluation model to freehold Lands and cost model to
Computer & IT Equipment 4 - 20 5 - 25
the remaining assets under property, plant and equipment
which are stated at historical cost less accumulated Pool Complex 10 - 25 4 - 10
depreciation less accumulated impairment losses, if any. Curtains and Fabrics 5 20
Kitchen Equipment 5 20
2.5.2 Revaluation of Freehold Properties
Office / Electric Equipment 4 - 10 10 - 25
The freehold Lands of the Group are carried at revalued
amounts. Revaluation of these assets are carried out at Furniture & Fittings 4-5 20 - 25
least once in five (5) years in order to ensure the book value Motor Vehicles 5 20
every year reflect the realizable value of such assets.
Depreciation of an asset begins when it is available for use
When an asset is revalued, any increase in the carrying whereas depreciation of an asset ceases at the earlier of
amount is credited directly to a revaluation surplus unless the date that the asset is classified as held for sale and the
it reverses a previous revaluation decrease relating to date that the asset is derecognized.
the same asset, which was previously recognized as
an expense. In these circumstances the increase is Depreciation methods, useful lives and residual values are
recognized as income to the extent of the previous write reviewed at each reporting date and adjusted if appropriate.
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 2.5.5 Disposal
to the asset, in which case it is charged against any related The gains or losses arising on disposal or retirement of
revaluation surplus, to the extent that the decrease does an item of property, plant and equipment are determined
not exceed the amount held in the evaluation surplus in by comparing the proceeds from disposal with the
respect of that same asset. Any balance remaining in the carrying amount of the property, plant and equipment
revaluation surplus in respect of an asset, is transferred are recognized within other income in the statement of
directly to accumulated profits on retirement or disposal of comprehensive income. When revalued assets are sold,
the asset. the amounts included in the revaluation reserve are
transferred to retained earnings.
2.5.3 Subsequent costs
Subsequent costs are included in the asset’s carrying 2.5.6 Capital Work-in-Progress
amount or recognised as a separate asset, as appropriate, Capital work-in-progress represents the accumulated
only when it is probable that future economic benefits cost of materials and other costs directly related to the
associated with the item will flow to the Company and the construction of an asset. Capital in progress is transferred
Group and the cost of the item can be measured reliably. to the respective asset accounts at the time it is substantially
The carrying amount of the replaced part is derecognized. completed and ready for its intended use.
All other repairs and maintenance are charged to the
statement of comprehensive income during the financial 2.6 Intangible Assets
period in which they are incurred. Acquired computer software is capitalized on the basis of
the costs incurred to acquire and bring to use the specific
2.5.4 Depreciation software and systems. Intangible assets acquired are stated
Items of property, plant and equipment are depreciated at cost less accumulated amortization and accumulated
from the date they are available for use or, in respect of impairment losses. These costs are amortized over their
self-constructed assets, from the date that the asset is estimated useful lives, as follows:
completed and ready for use.
Computer Software 05 Years
Depreciation is calculated to write off the cost of items of
Notes to the Financial Statements continued
66
Costs associated with maintaining computer software are in an active market. Loans and receivables are included
recognized as an expense as incurred. in current assets, except for maturities greater than 12
months after the end of the reporting period, which are
2.7 Leasehold Land classified as non-current assets.
Land held under leases is initially measured at the total
amount paid on lease term plus any initial direct cost III. Available for sale (AFS) Financial Assets
incurred at the inception and subsequently the leasehold Available-for-sale financial assets are non-derivatives that
land is measured at amortized cost. The value of leasehold are either designated in this category or not classified in any
land is amortized over the lease period. of the other categories. They are included in non-current
assets unless the investment matures or management
Rate intends to dispose of it within 12 months of the end of the
Leasehold land 30 Years 3.33% reporting period.

2.8 Impairment on Non-Financial Assets The classification of the financial assets under above
At each end of reporting period, the Group reviews the categories is given in Note 29 to the financial statements.
carrying amounts of its property, plant and equipment
and intangible assets to determine whether there is any (b) Recognition and Initial Measurement
indication that those assets have impaired. If any such Financial assets classified as loans and receivables are
indication exists, the recoverable amount of the asset recognized on the date on which the group originates the
is estimated in order to determine the extent of the transaction. Other financial assets are recognized on the
impairment loss (if any). Where it is not possible to estimate trade-date on which the group becomes a party to the
the recoverable amount of an individual asset, the Group contractual provisions of the financial instrument.
determines the cash-generating unit and estimates the
recoverable amount of the cash-generating unit to which A financial asset is measured initially at fair value plus, in
the asset belongs. the case of assets not at fair value through profit or loss,
directly attributable transaction costs. In case of financial
Recoverable amount is the higher of fair value less costs assets at fair value through profit or loss, transaction costs
to sell and value in use. In assessing value in use, the attributable are recognized in profit or loss as incurred.
estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current Financial assets are derecognized when the rights to
market assessments of the time value of money and the receive cash flows from the financial assets have expired
risks specific to the asset for which the estimates of future or have been transferred and the company has transferred
cash flows have not been adjusted. substantially all risks and rewards of ownership of the
financial assets.
If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the (c) Subsequent Measurement
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss is I. Financial assets at fair value through profit or loss
recognized immediately in the statement of comprehensive (FVTPL)
income.
Subsequent to initial recognition, the financial assets
2.9 Financial Assets are re-measured at fair value. Changes in fair value are
recorded in gain or losses from financial asset at FVTPL in
(a) Classification the Statement of Comprehensive Income.
The group determines the classification of its financial
assets at initial recognition and classifies its financial II. Loans and receivables
assets as follows: Subsequent to initial recognition, loans and receivables
are measured at amortized cost using the effective interest
I. Financial assets at fair value through profit or loss method, less provision for impairment.
(FVTPL)
II. Loans and Receivables
III. Available for sale (AFS) Financial Assets III. Available for sale (AFS) Financial Assets

I. Financial assets at Fair Value through Profit or Loss After initial recognition, quoted equity investment classified
(FVTPL) as AFS financial asset is measured at fair value. Changes
Financial assets at FVTPL include financial assets that are in the fair value of AFS financial asset are recognized in
either classified as held for trading or that meet certain other comprehensive income and presented as available
conditions and are designated at FVTPL upon initial for sale reserve in the statement of changes in equity.
recognition. Investments bought with the intention to sell Unquoted equity investments, which are group’s strategic
in the near future are classified as held for trading. investments are measured at cost less any Impairment
losses, as currently its fair value cannot be estimated
II. Loans and Receivables reliably.
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted
Notes to the Financial Statements continued
67
2.10 Impairment of financial assets
Consumables are stated at cost. Cost is determined on a
Assets carried at amortized cost weighted average basis. Consumables are comprised of
The group assesses at the end of each reporting period linen, stationeries and other general items which are used
whether there is objective evidence that a financial asset for consumption for operation not for re-sale.
is impaired. A financial asset is impaired and impairment
losses are incurred only if there is objective evidence of 2.12 Cash and Cash Equivalents
impairment as a result of one or more events that occurred In the consolidated statement of cash flows, cash and
after the initial recognition of the asset (a ‘loss event’) and cash equivalents includes cash in hand, deposits held at
that loss event (or events) has an impact on the estimated call with banks, other short-term highly liquid investments
future cash flows of the financial asset that can be reliably with original maturities of three months or less.
estimated.
2.13 Financial Liabilities
For loans and receivables carried at amortized cost, the The group classifies financial liabilities into other financial
amount of the loss is measured as the difference between liabilities. The other financial liabilities are recognized
the asset’s carrying amount and the present value of initially at fair value plus any directly attributable
estimated future cash flows (excluding future credit losses transaction costs. Subsequent to initial recognition, these
that have not been incurred) discounted at the financial financial liabilities are measured at amortized cost using
asset’s original effective interest rate. The carrying amount the effective interest method.
of the financial assets is reduced and the amount of the
loss is recognized in the statement of comprehensive The group derecognizes a financial liability when its
income. contractual obligations are discharged, cancelled or
If, in a subsequent period, the amount of the impairment expired. The items of the financial liabilities are given in
loss decreases and the decrease can be related objectively Note 30 to the financial statements.
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.
2.14 Trade Payables
Available-for-Sale (AFS) Financial Assets Trade payables are obligations to pay for goods or services
The group assesses at the end of each reporting period that have been acquired in the ordinary course of business
whether there is objective evidence that a financial from suppliers. Trade payables are classified as current
asset is impaired. For quoted equity investments, a liabilities if payment is due in the normal operating cycle
significant or prolonged decline in the fair value of the of the business (within one year or less). If not, they are
investments below its cost is also evidence that the classified as non -current liabilities.
assets are impaired. If any such evidence exists for the
quoted investments, the cumulative loss measured as the Trade payables are recognized initially at fair value
difference between the acquisition cost and the current fair (transaction price) and subsequently measured at the
value, less any impairment loss previously recognized in transaction price as they are expected to pay in the normal
profit or loss is reclassified from equity to profit or loss as a operating cycle of the business.
reclassification adjustment. Impairment losses recognized
in profit or loss for an investment in an equity instrument 2.15 Borrowings
classified as available for sale are reversed through profit Borrowings are recognized initially at fair value, net of
or loss. The amount of reversal is recognized in the other transaction costs incurred. Borrowings are subsequently
comprehensive income. carried at amortized cost using the effective interest
method.
For unquoted equity investments, a significant or prolonged
decline in the value of the investments below its cost is Borrowing Cost
also evidence that the assets are impaired. If any such Borrowing costs directly attributable to acquisition,
evidence exists for the unquoted investments, the amount construction of qualifying assets, which are assets that
of the impairment loss is measured as the difference necessarily take a substantial period of time to get ready for
between the carrying amount of the financial asset and the their intended use, are added to the cost of those assets,
present value of estimated future cash flows discounted until such time as the assets are substantially ready for
at the current market rate of return for a similar financial their intended use.
asset. Such impairment losses are not reversed.
All other borrowing costs are recognized in the statement
2.11 Inventories of comprehensive income in the period in which they are
Inventories are stated at the lower of cost and net realizable incurred.
value. Cost is determined using weighted average cost
method. The cost of finished goods and work in progress 2.16 Current and Deferred Tax
comprises raw materials, direct labour, other direct costs Current Tax in respect of the profits and Income of the
and related production overheads computed based on Company is exempted for a period of fifteen (15) years
normal operating capacity. Net realizable value is the reckoned from the year in which the Company commences
estimated selling price in the ordinary course of business, to make profits or any year of assessment not later than
less the costs of completion and selling expenses. two (02) year reckoned from the date of commencement

68 Notes to the Financial Statements continued


of commercial activities or whichever year is earlier, as Actuarial gains and losses arising from experience
specified in BOI agreements dated 12 January 2012. adjustments and changes in actuarial assumptions are
charged or credited to equity in other comprehensive
As per the BOI agreements subsidiaries namely Eastern income in the period in which they arise.
Development Enterprises (Pvt) Ltd and Dambulla Hotel
Resort and Country Club (Pvt) Ltd are exempted from The group will remeasure the define benefit obligation
income tax for the period of fifteen (15) years and nine when the amounts recognized in the financial statements
(9) years respectively. All other subsidiaries are liable for will differ materially from the amount that would be
income tax as per the Inland Revenue Act, No. 10 of 2006 determine at the end of the reporting period.
and subsequent amendments thereto.
Past service costs are recognized immediately in the
Deferred tax is recognized on temporary differences arising statement of comprehensive income.
between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. Deferred tax The retirement benefits obligation is not externally funded.
is not accounted for if it arises from initial recognition of
an asset or liability in a transaction other than a business c) Short-term employee benefit
combination that at the time of the transaction affects Short-term employee benefit obligations are measured on
neither accounting nor taxable profit nor loss. Deferred tax an undiscounted amount expected to be paid for related
is determined using tax rates that have been enacted at services provided by the employee.
the reporting period end date and are expected to apply
when the related deferred tax asset is realized or the 2.18 Contingent Liability and Contingent Assets
deferred income tax liability is settled. A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
Deferred tax assets are recognized only to the extent that occurrence or non-occurrence of one or more uncertain
it is probable that future taxable profit will be available future events beyond the control of the company or a
against which the temporary differences can be utilized. present obligation that is not recognized because it is not
probable that an outflow of resources will be required to
Deferred tax assets and liabilities are offset when there settle the obligation.
is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred tax A contingent liability also arises in extremely rare cases
assets and liabilities relate to income taxes levied by the where there is a liability that cannot be measured reliably.
same taxation authority. The Group does not recognize a contingent liability but
discloses its existence in the Financial Statements.
Deferred taxation has not been recognized due to
realization of the related future tax benefits / liabilities are A contingent asset is a possible asset that arises from past
insignificant and also not in near future. events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events
2.17 Employee Benefits beyond the control of the company. The company does
The group has both defined benefit and defined contribution not recognize contingent assets but discloses its existence
plans. where inflows of economic benefits are probable, but not
virtually certain.
a) Defined Contribution plan
A defined contribution plan is a post employment benefit 2.19 Revenue Recognition
plan under which the group pays fixed contributions into Revenue is measured at the fair value of the consideration
a separate entity. The group has no legal or constructive received or receivable, and represents amounts receivable
obligations to pay further contributions. The contributions for services rendered, stated net of Value Added Taxes
are recognized as employee benefit expense when they (VAT), Nation Building Tax (NBT) and Tourist Board
are due. Levy (TDL) (if liable for revenue taxes). The company
recognizes revenue when the amount of revenue can
The group contributes 12% on gross emoluments of be reliably measured and when it is probable that future
employee to Employee Provident Fund (EPF) and 3% on economic benefits will flow to the company.
gross emoluments of employee to Employee Trust Fund
(ETF). The group applies the revenue recognition criteria set out
below to each identifiable major types of revenue.
b) Defined benefit plan
The group obligation in respect of defined benefit plan (a) Accommodation, Food & Beverage Sales
is the present value of the defined benefits obligation Accommodation revenue is recognized on the rooms
at the end of the reporting period. The defined benefits occupied on a daily basis, and food and beverage are
obligation is calculated by independent actuaries using accounted for at the time of sales.
the projected unit credit method. The present value of the (b) Rendering Services
defined benefits obligation is determined by discounting Revenue arises from services rendered is recognized in
the estimated future benefit that employee have earned the period in which the services are rendered based on
in return for their services in the current and prior period. completion of services and assessed on the basis of the
actual services rendered.
Notes to the Financial Statements continued
69
(c) Interest income 2.23.1 The following are significant judgments in applying
Interest income is recognized using effective interest the accounting policies that have most significant effect on
method for all interest bearing financial assets. the financial statements.
(d) Gain and Losses on Disposal of Property,
Plant and Equipment (a) Recognition of Deferred Tax Assets
Gains and losses on disposals are determined by The extent to which deferred tax assets can be recognized
comparing the proceeds with the carrying amount and are is based on an assessment of the probability of the future
recognized in the statement of comprehensive income. taxable income against which the deferred tax assets can
(e) Other income be utilized.
Other income is recognized on accrual basis.
2.23.2 Information about estimates and assumptions
that have the most significant effect on recognition and
2.20 Expenses measurement of assets, liabilities, income and expenses
All expenditure incurred in the running of the operation is provided below:
has been charged to income in arriving at the profit for the
reporting period. (a) Useful life time of Depreciable Assets
Management reviews its estimate of the useful life time of
2.21 Events Occurring after the Reporting Period depreciable assets at each reporting date, based on the
All material events after the reporting period have been expected economic utility of the assets. Uncertainties in
considered and where appropriate adjustments or these estimates relate to technical obsolescence that may
disclosures have been made in the respective notes to the change the utility of certain software and IT equipment.
financial statements.
(b) Defined benefit plan
2.22 Commitments The present value of the defined benefit plan obligations
All material commitments at the reporting period end have depends on a number of factors that are determined on
been identified and disclosed in the notes to the financial actuarial valuation method using a number of assumptions.
statements. The assumptions are used in determining the net cost and
obligation for defined benefit plan including the discount
2.23 Significant Accounting Estimates and Judgments rate disclosed in the note 22. Any changes in these
When preparing the financial statements, management assumptions will impact the carrying amount of defined
undertakes a number of judgments, estimates and benefit obligation.
assumptions about the recognition and measurement of
assets, liabilities, income and expenses.

Notes to the Financial Statements continued

70
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
Group Company
FOR THE YEAR ENDED 31 MARCH
2015 2014 2015 2014
3 Revenue
Accommodation 143,467,549 48,114,457 85,232,049 -
Food 50,293,451 22,711,342 13,622,659 -
Beverage 11,254,758 1,988,663 8,582,848 -
Other 13,596,147 3,927,402 5,203,523 -
218,611,905 76,741,863 112,641,079 -

4 Other Income
Dividend Income 2,768,753 2,092,552 2,768,753 2,092,552
Exchange Gain 53,509 - 3,945 -
2,822,261 2,092,552 2,772,698 2,092,552

5 Finance Cost
Interest Income
From Call Deposits and Repo's 713,400 4,840,392 678,267 4,834,084
713,400 4,840,392 678,267 4,834,084
Interest Expenses
On Lease 16,637 22,894 16,637 22,894
On Loan 191,705,071 110,371,525 148,781,629 20,211,972
On Overdraft 13,407,906 19,213,574 13,339,708 18,818,021
205,129,614 129,607,993 162,137,973 39,052,887
204,416,214 124,767,602 161,459,706 34,218,803

6 Profit Before Taxation


Profit Before Taxation is arrived at after charging all expenses including the following.

Auditors' Remuneration 601,816 588,699 347,902 405,824


Staff Costs 128,950,164 87,134,102 92,889,539 64,630,153
Defined Contribution Plan Costs - EPF / ETF 11,288,603 8,821,848 8,062,374 5,890,121
Defined Benefit Plan Cost - Retiring Gratuity 1,406,446 1,000,421 1,117,059 1,000,421
Depreciation 149,977,053 71,357,349 75,223,836 3,224,824
Amortization of Leasehold Lands 1,332,000 2,992,012 - -
Amortization of Intangible Assets 1,387,619 1,080,728 1,387,619 1,080,728

Figures in brackets indicate deductions


Notes to the Financial Statements continued

71
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)

Group Company
FOR THE YEAR ENDED 31 MARCH
2015 2014 2015 2014
7 Income Tax Expense 129,839 900,000 123,445 900,000
Current Tax Expense on Ordinary Activities for the (19,049) - (20,197) -
Year
(Over) / Under Provision for Previous Years 110,790 900,000 103,248 900,000

7.1 Reconciliation Between the Current Tax Expense and the Product of Accounting Profit.

Accounting Profit Before Taxation (456,743,215) (308,164,216) (333,976,643) (117,168,648)


Aggregate of Disallowable Expenses 162,435,152 83,437,161 85,802,996 13,014,583
Aggregate of Allowable Expenses (358,218,123) (142,901,771) (216,824,026) (1,674,281)
Other / Exempted Income / Adjustment to Accounting
(1,787,807) (56,080,716) (4,483,592) (57,395,768)
Losses
Adjusted Business Profit / (Loss) (654,313,993) (423,709,542) (469,481,265) (163,224,115)
Other Income Liable for Tax 713,400 4,840,391 678,267 4,834,084
Statutory Income 713,400 4,840,391 678,267 4,834,084
Tax Losses Utilized (249,690) (1,694,137) (237,394) (1,691,929)
Assessable Income / Taxable Income 463,711 3,146,254 440,874 3,142,155
Income Tax on Statutory Tax Rate of 28% 129,839 880,951 123,445 879,803
Adjustment to Provision - 19,049 - 20,197
Current Tax on Ordinary Activities for the Year 129,839 900,000 123,445 900,000

Tax Losses
Loss Brought Forward 650,099,926 227,934,901 378,731,158 217,198,973
Loss Incurred During the Year 654,313,992 423,859,162 469,481,265 163,224,115
Loss Utilized (249,690) (1,694,137) (237,394) (1,691,929)
Loss Carried forward 1,304,164,229 650,099,926 847,975,030 378,731,158

7.1 Deferred Taxation


The unidentified deferred tax assets at the reporting
dates are;
The Category of the Temporary Differences Group Company
2015 2014 2015 2014

Arising from Carried Forward Tax Losses (from Tax Charged


Companies)
365,165,984 182,027,979 237,433,008 106,044,724
Arising from Retirement Benefits Obligation 762,733 438,874 640,069 327,292
365,928,717 182,466,853 238,073,077 106,372,017

Figures in brackets indicate deductions


Notes to the Financial Statements continued

72
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)

FOR THE YEAR ENDED 31 MARCH Group Company


2015 2014 2015 2014
8 Basic Earnings / (Loss) Per Share (Rs.)

Profit / (Loss) Attributable to Ordinary Shareholders ( Rs.) (456,853,973) (309,064,209) (334,079,891) (118,068,648)

Number of Ordinary Shares used as the Denominator


Weighted Average Number of Ordinary Shares 418,523,844 374,428,330 418,523,844 374,428,330

Basic Earnings / (Loss) Per Share (Rs.) (1.09) (0.83) (0.80) (0.32)

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 2015.

Figures in brackets indicate deductions


Notes to the Financial Statements continued

73
Notes to the Financial Statements

74
(Expressed in Sri Lankan Rupees)
FOR THE YEAR ENDED 31 MARCH
9 Property, Plant and Equipment
Group
Cost / Valuation Land Building Land Devel- Plant and Computers Pool Complex Motor Vehicles Furniture & Fittings Total
opment and Machinery and IT Equip- / Curtains and / Office / Electric
Roadways ment Fabrics / Kitchen Equipment
Equipment

Balance as at 01 April 2014 2,332,542,253 738,282,065 45,219,306 43,159,144 29,408,611 76,634,356 8,522,860 117,354,240 3,391,122,835
Additions - - - - - 186,310 1,500,000 2,910,747 4,597,057
Transferred form WIP - 1,237,304,874 15,449,940 40,381,325 19,836,052 163,314,739 - 91,248,986 1,567,535,917
Balance as at 31 March 2015 2,332,542,253 1,975,586,939 60,669,246 83,540,469 49,244,663 240,135,405 10,022,860 211,513,973 4,963,255,809

Depreciation

Balance as at 01 April 2014 29,360,386 4,283,123 2,555,773 3,109,274 10,673,328 4,132,576 21,125,226 75,239,685
Charge for the Year 69,401,213 2,483,909 6,111,427 3,625,184 30,657,956 1,704,572 35,992,791 149,977,053
Balance as at 31 March 2015 98,761,599 6,767,032 8,667,200 6,734,458 41,331,284 5,837,148 57,118,017 225,216,738

Net Carrying Values 2015 2014


Land 2,332,542,253 2,332,542,253
Building 1,876,825,340 708,921,679
Land Development and Road- 53,902,214 40,936,183
ways
Plant and Machinery 74,873,269 40,603,371
Computers and IT Equipment 42,510,205 26,299,337
Pool Complex / Curtains and 198,804,121 65,961,028
Fabrics /Kitchen Equipment
Motor Vehicles 4,185,712 4,390,284
Furniture & Fittings / Office / Elec- 154,395,956 96,229,014
tric Equipment
4,738,039,071 3,315,883,150
Capital Work-in-Progress (Note 9.1) 376,064,745 1,734,230,961
5,114,103,816 5,050,114,111

Figures in brackets indicate deductions


Notes to the Financial Statements continued
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)

FOR THE YEAR ENDED 31 MARCH


9 Property, Plant and Equipment Cont.…
Company
Land Building Land Devel- Plant and Machin- Computers Pool Complex Motor Vehi- Furniture and Total
opment and ery and IT Equip- / Curtains and cles Fittings/Office/
Cost / Valuation
Roadways ment Fabrics / Kitchen Electric Equipment
Equipment

Balance as at 01 April 2014 563,042,253 - - - - - 8,522,860 6,446,646 578,011,759


Additions - - - - - 1,500,000 1,592,742 3,092,742
Transferred from WIP - 1,237,304,874 15,449,940 40,381,325 19,836,052 163,314,739 - 91,248,986 1,567,535,917
Balance as at 31 March 2015 563,042,253 1,237,304,874 15,449,940 40,381,325 19,836,052 163,314,739 10,022,860 99,288,374 2,148,640,418

Depreciation

Balance as at 01 April 2014 - - - - - 4,132,576 2,950,074 7,082,650


Charge for the Year 34,311,065 617,998 3,247,872 1,917,395 19,014,264 1,704,572 14,410,670 75,223,836
Balance as at 31 March 2015 34,311,065 617,998 3,247,872 1,917,395 19,014,264 5,837,148 17,360,744 82,306,485

Net Carrying Values 2015 2014


Land 563,042,253 563,042,253
Buildings 1,202,993,809 -
Land Development and Roadways 14,831,943 -
Plant and machinery 37,133,453 -
Computer and IT Equipment 17,918,657 -
Pool Complex / Curtains and Fabric /
144,300,475 -
Kitchen Equipment
Motor Vehicles 4,185,712 4,390,284
Furniture and Fittings / Office / Electric
81,927,630 3,496,572
Equipment
2,066,333,932 570,929,109
Capital Work-in-Progress (Note 9.1) 8,488,663 1,458,323,048
2,074,822,595 2,029,252,157

Figures in brackets indicate deductions


Notes to the Financial Statements continued

75
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
FOR THE YEAR ENDED 31 MARCH
9.1 Capital Work-in-Progress-Buildings Group Company

Balance as at 01 April 2014 1,734,230,961 1,458,323,048


Additions 209,369,701 117,701,532
Transferred (1,567,535,917) (1,567,535,917)
Balance as at 31 March 2015 376,064,745 8,488,663

10 Intangible Assets Computer Hotel Property Accounting Total


Software Management System
Group / Company System

Cost
Balance as at 01 April 2014 1,364,677 2,439,501 3,133,916 6,938,094
Additions - - - -
Balance as at 31 March 2015 1,364,677 2,439,501 3,133,916 6,938,093

Amortization

Balance as at 01 April 2014 494,963 968,180 698,314 2,161,457


Charge for the Year 272,935 487,900 626,783 1,387,619
Balance as at 31 March 2015 767,898 1,456,080 1,325,097 3,549,076

Net Carrying Values 2015 2014

Computer Software 596,779 869,714


Hotel Property Management System 983,421 1,471,320
Accounting System 1,808,819 2,435,602
3,389,018 4,776,636

11 Prepaid Leasehold Land


Group
Cost

Balance as at 01 April 2014 40,000,000 40,000,000


Additions - -
Balance as at 31 March 2015 40,000,000 40,000,000

Amortization

Balance as at 01 April 2014 6,440,444 5,108,444


Amortization 1,332,000 1,332,000
Balance as at 31 March 2015 7,772,444 6,440,444

Net Carrying Value 32,227,556 33,559,556

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.
Figures in brackets indicate deductions

76
Notes to the Financial Statements continued
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
FOR THE YEAR ENDED 31 MARCH Company
2015 2014
12 Investment in Subsidiaries
No. of Shares % of Holding
South Asia Asset Management (Pvt) Ltd 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
Eastern Development Enterprises (Pvt) Ltd 1 100 10 10
Anilana Resorts (Pvt) Ltd 100,000 100 1,000,000 1,000,000
Panichchankerni Hotels Ltd 1 100 10 10
1,263,373,960 1,263,373,960

14 Available-for-Sale (AFS) Financial Assets Group / Company


2015 2014
Unquoted Shares (Note 14.1) 12,000,000 12,000,000

14.1 Investments Made in Unqouted Shares


Nation lanka Promotions Ltd 12,000,000 12,000,000
12,000,000 12,000,000

AFS unquoted investments comprise group’s strategic investments which are measured at cost less impairment since, its fair value
cannot be reliably measured.

15 Inventories Group Company


2015 2014 2015 2014
Food and Beverage 4,689,279 2,404,781 2,344,258 -
House Keeping 21,927,581 11,709,366 11,057,708 -
Others 14,103,947 14,133,303 9,108,903 -
40,720,807 28,247,450 22,510,868 -

16 Financial Assets at Fair Value through Group Company


Profit or Loss (FVTPL)
2015 2014 2015 2014

Investments in Quoted Shares (Note 16.1) 12,561,016 98,032,271 11,814,352 97,085,604

16.1 Analysis of the Investments


Balance as at 01 April 98,032,271 12,549,531 97,085,604 11,549,531
Additions During the Year - 10,941,820 - 10,941,820
Transferred form Unquoted Shares - 24,125,120 - 24,125,120
Disposals (86,307,825) - (86,307,825) -
Fair Value Adjustment 836,570 50,415,799 1,036,572 50,469,132
Balance as at 31 March 12,561,016 98,032,271 11,814,352 97,085,604

Figures in brackets indicate deductions

77
Notes to the Financial Statements continued
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
FOR THE YEAR ENDED 31 MARCH Group Company
2015 2014 2015 2014
17 Trade and Other Receivables
Trade Receivables 2,618,133 945,348 - -
Deposits and Advances (Note 17.1) 10,715,436 17,091,552 3,414,001 17,091,552
Amounts Due from Related Parties (Note 17.2) 168,218,268 218,387,124 1,264,026,366 1,127,957,062
Others 10,538,212 14,519,049 10,495,712 14,407,541
192,090,049 250,943,073 1,277,936,079 1,159,456,156

17.1 Deposits and Advances


Refundable Deposits 2,245,800 1,911,250 1,911,250 1,911,250
Rent - 4,080,000 - 4,080,000
Others Advances 8,469,636 11,100,302 1,502,751 11,100,302
10,715,436 17,091,552 3,414,001 17,091,552

17.2 Amounts Due from Related Parties


Subsidiaries
Anilana Resort (Pvt) Ltd - - 125,855,778 126,408,655
Eastern Development Enterprises (Pvt) Ltd - - 813,973,275 686,574,278
Blue Lagoon Hotel (Pvt) Ltd - - 1,046,075 842,989
East Wind Resort (Pvt) Ltd - - 337,877 260,387
Dambulla Hotels & Country Club (Pvt) Ltd - - 96,645,540 72,479,999
Vakarei Hotel (Pvt) Ltd - - 2,314,294 2,195,527
South Asia Asset Management (Pvt) Ltd - - 154,725 91,082
Panichchankerni Hotels Ltd - - 60,152,156 25,369,022
- - 1,100,479,719 914,221,940
Other Related Parties
Asia Fort Asset Management (Pvt) Ltd 42,451,993 452,000 41,999,993 -
Ceylinco Investments Corporation Ltd (59,271) 107,863,160 (59,271) 107,863,160
Leader Holdings (Pvt) Ltd. 26,186,406 26,186,406 21,986,406 21,986,406
Nation lanka Promotion Ltd 1,938,747 1,938,747 1,938,747 1,938,747
Anilana Security Ltd 79,680 279,680 79,680 279,680
Keraton International Ltd 65,173 43,329 54,251 43,329
Luma Plus Ltd 64,071 46,671 55,371 46,671
Tropical Foliage Ltd 6,156,854 6,156,854 6,156,854 6,156,854
Anilana Tropical Foliage Ltd 91,200 91,200 91,200 91,200
Moghul Fund (Pvt) Ltd 69,779,589 69,779,590 69,779,589 69,779,589
AIO Investment (Pvt) Ltd 21,049,486 1,049,486 21,049,486 1,049,486
Nation Lanka Equities Ltd 414,339 4,500,000 414,339 4,500,000
168,218,268 218,387,123 163,546,646 213,735,123
168,218,268 218,387,123 1,264,026,366 1,127,957,062

18 Other Non-Financial Assets


Prepaid Expenses 4,324,806 1,528,187 1,975,644 -
Value Added Tax (VAT) 1,636,206 541,047 1,636,206 -
Withholding Tax (WHT) 869,564 1,804,985 710,315 1,645,736
6,830,575 3,874,219 4,322,164 1,645,736

19 Cash and Cash Equivalents


Favorable Balances
Cash at Bank 13,146,951 7,309,704 8,298,535 1,888,334
Cash in Hand 788,270 516,090 537,200 290,000
13,935,221 7,825,794 8,835,735 2,178,334
Unfavorable Balances
Bank Overdrafts (105,916,669) (88,359,563) (103,517,631) (88,359,563)
Total for the Purposes of Cash Flow Statement (91,981,449) (80,533,769) (94,681,896) (86,181,229)

Figures in brackets indicate deductions


Notes to the Financial Statements continued

78
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)

Stated Capital
Issued and Fully Paid,
Group / Company No. of Shares Value
2015 2014 2015 2014
Balance as at 01 April 383,684,400 342,483,600 3,095,892,850 2,601,483,250
Issuance of Ordinary
109,624,114 41,200,800 767,368,798 494,409,600
Shares
Balance as at 31 March 493,308,514 383,684,400 3,863,261,648 3,095,892,850

Borrowings Group Company


2015 2014 2015 2014
Borrowings - Non-Current Potion
Bank Borrowings (Note 21.1) 1,201,221,561 1,481,479,261 655,196,000 868,510,137
Lease Obligations (Note 21.2) 93,429 89,302 93,429 89,302
1,201,314,990 1,481,568,563 655,289,429 868,599,439
Borrowings - Current Potion
Bank Borrowings (Note 21.1) 417,081,932 294,409,502 352,089,443 251,587,502
Lease Obligations (Note 21.2) 96,307 104,941 96,307 104,941
417,178,239 294,514,443 352,185,750 251,692,443
1,618,493,229 1,776,083,006 1,007,475,179 1,120,291,882

21.1 Bank Borrowings


Movement of Borrowings
Balance as at 01 April 1,775,888,763 1,230,358,582 1,120,097,639 699,000,000
Obtained During The Year 3,271,690 545,530,181 - 421,097,639
Settlements Made (189,176,918) - (132,481,153) -
Accrued Interest 28,319,957 - 19,668,957
Balance as at 31 March 1,618,303,493 1,775,888,763 1,007,285,443 1,120,097,639

Non-Current Potion 1,201,221,561 1,481,479,261 655,196,000 868,510,137


Current Potion 417,081,932 294,409,502 352,089,443 251,587,502
1,618,303,493 1,775,888,763 1,007,285,443 1,120,097,639

21.2 Finance Lease Payables Group / Company


2015 2014
Analysis of Finance Obligation by the Year of Re-payments
Current Potion 96,307 104,941
Non-Current Potion 93,429 89,302
189,736 194,243
Current Potion
Lease Creditors 105,720 121,578
Interest Allocated to Future
(9,413) (16,637)
Periods
96,307 104,941
Non-Current Potion
Lease Creditors 95,148 100,434
Interest Allocated to Future
(1,719) (11,132)
Periods
93,429 89,302

Figures in brackets indicate deductions


Notes to the Financial Statements continued

79
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
21.3 Assets Pledged as Securities
Assets pledged as securities by the company and the subsidiary companies are as follows;

Type of Loan Facility / Interest and Repayments Outstanding as


Lending Institution Securities
Facility Limit / Utilised at 31 March 2015

Company
Sampath Bank PLC Term Loan / AWPLR + 2% Rs 750 Mn Rs 734 Mn Primary, Secondary and Tertiary mortgage
bond for Rs 680 Mn over freehold land owned
1st 12 Intl. Rs. 4 Mn
by Anilana Hotels & Properties Ltd together with
Next 59 Intl. Rs. 11.677 Mn buildings thereon with the extent of 7A:2R:31P
Final Intl. Rs. 11.641 Mn at Nilaveli.
People’s Bank Term Loan Rs 200 Mn Rs 108Mn Primary mortgage over 02 properties situated in
Panichankerni. Corporate guarantee of Eastern
Development Enterprises (Pvt) Ltd.
Peaple's Leasing & Term Loan / 18.75% p.a Rs. 100 Mn Rs. 100 Mn Mortgage over 12,000,000 shares of Millenium
Finance PLC Housing Developers Ltd. Personnel guarantee
Term Loan / 18% p.a Rs. 35 Mn Rs. 25 Mn by company director.

Settled within one year


Sampath Bank PLC Term Loan Rs 491 Mn Rs 458 Mn Primary mortgage bond for Rs 216 Mn and
Secondary and Tertiary mortgage bond for Rs
225 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 Term Loan Rs 350 Mn Rs 142 Mn Primary mortgage for Rs 350 Mn over free
Bank PLC hold land owned by Dambulla Hotel Resorts &
Country Club (Pvt) Ltd together with buildings
thereon with extent 39A:2R:5.25P at Dambulla.

Figures in brackets indicate deductions


Notes to the Financial Statements continued

80
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
FOR THE YEAR ENDED 31 MARCH 2015

22 Retirement Benefits Obligation Group Company


2015 2014 2015 2014

Balance as at 01 April 1,567,406 5,190,609 1,168,901 4,112,134


Expenses Recognized in Comprehensive Income (Note 22.1) 1,304,621 1,391,545 1,015,234 1,000,421

Actuarial (Gain) / Losses Recognized in Other Comprehensive Income


(147,979) (5,014,748) 101,825 (3,943,654)
Balance as at 31 March 2,724,048 1,567,406 2,285,960 1,168,901

22.1 Recognized in Comprehensive Income


Current Service Cost 148,904 898,437 111,046 609,768
Interest Cost for the Year 1,155,717 493,108 904,188 390,653
1,304,621 1,391,545 1,015,234 1,000,421

23.2 The Principal Actuarial Valuation Assumptions used are as fol- Group / Company
lows;
2015 2014
Discount Rate [%] 9.5 9.5
Salary Escalation Rate [%] 10 10
Retirement Age [Yrs] 55 55
Staff Turnover Factor [%] - up to 50 Years 8 and thereafter 8 and thereafter
Zero 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 [%]


Sensitivity of the Present Value of the Obligation Increase in 1% Decrease 1% Increase in 1% Decrease 1%
Company (7.52) 8.55 8.88 (7.94)
Group (7.86) 8.96 9.29 (8.29)

23 Trade and Other Payables


Trade Payable 23,900,644 22,722,754 4,121,881 -
Other Payables
Advance Received 33,230,312 166,830,469 27,649,479 159,569,904
Retention 19,307,583 37,129,945 14,359,586 29,552,801
Construction Payable 169,755,897 148,816,693 142,858,602 121,919,397
Amounts Due to Related Parties (Note 23.1) 20,556,655 120,088,151 31,829,933 138,886,087
Others 15,240,026 21,180,372 13,982,890 12,103,976
258,090,473 494,045,630 230,680,490 462,032,165
281,991,117 516,768,384 234,802,372 462,032,165

23.1 Amounts Due to Related Parties

Asia Fort Asset Management (Pvt) Ltd - 31,794,165 - 31,794,165

Nation Lanka Finace PLC 10,941,820 10,941,820 10,941,820 10,941,820

Asia Financial Management Ltd 2,813,739 48,700,000 2,813,739 48,700,000


Investor Access Equities (Pvt) Ltd 6,231,125 28,507,353 18,074,374 47,450,102
Ceyquartz MBI Ltd 425,160 - - -
Directors' Current Accounts 144,810 144,813 - -

20,556,655 120,088,151 31,829,933 138,886,087

Figures in brackets indicate deductions


Notes to the Financial Statements continued

81
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
FOR THE YEAR ENDED 31 MARCH Group Company
2015 2014 2015 2014
24 Other Non-Financial Liabilities
Accrued Expenses 4,217,161 3,267,199 2,955,739 2,235,264
Value Added Tax (VAT) 1,417,937 - - -
Current Tax Payable 7,542 900,000 - 900,000
5,642,640 4,167,199 2,955,739 3,135,264

25 Commitments
Details of capital commitments as at 31 March 2015
are as follows;
Description Estimated Cost Cost incurred in Cost incurred Cost to be
Prior Periods During the Incurred
Period

Group
Hotel Construction at Dambulla 831,000,000 204,130,603 26,403,944 600,465,453
Villa Construction at Panichchnkerni 140,000,000 51,526,790 34,668,240 53,804,970
Hotel Construction at Passikuda - (Spa and Gym) 65,000,000 20,250,520 30,595,985 14,153,495
1,036,000,000 275,907,913 91,668,169 668,423,918

Description Estimated Cost Cost incurred in Cost incurred Cost to be


Prior Periods During the Incurred
Period
Company

Hotel Construction at Nilaweli 20,000,000 - 8,488,663 11,511,337

Other Commitments
There were no material commitments, financial or otherwise contracted or consented by the Board of Directors as at 31 March
2015 other than disclosed above.

26 Events Occurring after Reporting Period


There are no material events after the reporting period that require adjustments to or disclosure in financial statements.

27 Contingent liabilities
There were no material Contingent Liabilities as at the Reporting period end.

28 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 its Board of Directors.

Key Management Personnel Compensation Group Company


2015 2014 2015 2014

Short-Term Employee Benefits - Directors' Remuneration Nil Nil Nil Nil

Director's Current Accounts 144,810 144,813 - -

Transaction with Related Parties


Transactions with related parties are carried out in the ordinary course of the business. Outstanding current account balances at
year end are unsecured, interest free and settlement occurs in cash.

Figures in brackets indicate deductions


Notes to the Financial Statements continued

82
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
FOR THE YEAR ENDED 31 MARCH
28 Related Party Disclosure Contd…
Non-recurrent Related Party Transactions
There were no other non-recurrent Related Party Transactions, except the following which in aggregate value exceeds 10% of the equity or 5% of the
total assets which ever is lower of the Company as per as per 31 March 2014 audited financial Statements, which required additional disclosures in the
financial statements of the year 2014/15 under Colombo Stock Exchange listing Rule 9.3.2 and Code of Best Practices on Related Party Transactions
under the Security Exchange Commission Directive issued under Section 13(c) of the Security Exchange Commission Act.

Significant Non-Recurrent Related Party Transactions

Recurrent Related Party Transactions


Name of the Company Relationship Nature of Transactions Value (Rs.) Terms and Conditions of the
Transactions.
Asia Fort Asset Management (Pvt) Ltd Common Directors Right isuues of Shares 35,112,777 Settlement of Outstanding
Investor Access Equities (Pvt) Ltd Common Directors Right isuues of Shares 38,934,875 Settlement of Outstanding

Recurrent Related Party Transactions


There were no other recurrent related party transactions, except the following which in aggregate value exceeds 10% of the consolidated revenue of the
Group as per 31 March 2014 audited financial Statements, which required additional disclosures in the financial statements of the year 2014/15 under
Colombo Stock Exchange listing Rule 9.3.2 and Code of Best Practices on Related Party Transactions under the Security Exchange Commission Directive
issued under Section 13(c) of the Security Exchange Commission Act.

Significant Recurrent Related Party Transactions


Recurrent Related Party Transactions
Name of the Company Relationship Nature of Transactions Value (Rs.) Terms and Conditions of the
Transactions.

Eastern Development Enterprises (Pvt) Ltd Subsidiary Fund Transfers 71,900,000 Short-term Working capital
requirements
Fund Received (14,550,000)
Expenses Incurred 70,048,997

Dambulla Hotels & Country Club (Pvt) Ltd Subsidiary Fund Transfers 24,165,541 Short-term Working capital
requirements

Panichchankerni Hotels Ltd Subsidiary Fund Transfers 34,688,239 Short-term Working capital
requirements
Expenses Incurred 94,895

Asia Fort Asset Management (Pvt) Ltd Common Directors Expenses Incurred
onbehalf of the company
(3,318,619) Short-term Working capital
requirements
Fund Transfers 42,000,000

Ceylinco Investments Corporation Ltd Common Directors Fund Transfers 1,500,000 Short-term Working capital
requirements
Fund Received (106,422,430)

AIO Investment (Pvt) Ltd Common Directors Fund Transfers 20,000,000 Short-term Working capital
requirements

Asia Financial Management Ltd Common Directors Expenses Incurred (10,727,000) Short-term Working capital
onbehalf of the company requirements
Fund Transfers 56,613,261

Investor Access Equities (Pvt) Ltd Common Directors Expenses Incurred (9,559,147) Short-term Working capital
onbehalf of the company requirements

Figures in brackets indicate deductions


Notes to the Financial Statements continued
83
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)

28 Related Party Disclosure Contd…


Other Recurrent Related Party Transactions (Aggregated)
Transaction Category Name of the Common Relationship Nature of Transactions Value (Rs.) Amount Due
Directors' from / (to)

Transaction with Subsidiries Mr. A.C.Seneviratne Subsidiary Recovery of Outstanding 552,877 125,855,778
Mr. M.C. Seneviratne Settlement of Capital Expenses 462,985 3,852,970
Mr. P.L.Amerasinghe

Transaction with Other Mr. A.C.Seneviratne Related Through Recoveries of Receivables 4,266,039 (10,338,180)
Related Entities the Common
Directors

29 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 Company


Note 2015 2014 2015 2014
Available-for-Sale (AFS) Financial Assets
Unquoted Shares 14 12,000,000 12,000,000 12,000,000 12,000,000

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)


Quoted Shares 16 12,561,016 98,032,271 11,814,352 97,085,604

FVTPL investments are stated at fair value based on active market quoted price.

Loans and Receivables


Trade and Other Receivables 17 192,090,049 250,943,072 1,277,936,079 1,159,456,156
Cash and Cash Equivalents 19 13,935,221 7,825,794 8,835,735 2,178,334
206,025,270 258,768,866 1,286,771,814 1,161,634,490

The loans and receivables are stated at carrying values as their carrying value approximates the fair value.

TOTAL FINANCIAL ASSETS 230,586,286 368,801,137 1,310,586,166 1,270,720,094

FINANCIAL LIABILITIES
Other Financial Liabilities
Borrowings 21.1 1,618,303,493 1,775,888,763 1,007,285,443 1,120,097,639
Trade and Other Payables 23 281,991,117 516,768,354 234,802,372 462,032,165
Bank Overdrafts 19 105,916,669 88,359,563 103,517,631 88,359,563

The financial liabilities are stated at amortized cost using the effective interest method.

TOTAL FINANCIAL LIABILITIES 2,006,211,279 2,381,016,680 1,345,605,446 1,670,489,366

Figures in brackets indicate deductions


Notes to the Financial Statements continued

84
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
29 Financial Instruments and Risk Management Contd….
Risk Management

29.1 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:

a Safety and security of guests, employees and other third parties
b The conceptual strengths supported by operational excellence in risk management at all hotels and corporate locations;
and
c 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 effectively. 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.
29.2 Financial Risk Factors
The group has exposure to the following risks from its use of financial instruments.

01 Credit Risk
02 Liquidity Risk
03 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 and overdrafts). 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 /
most of the 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 2015.

Group Company
Risk Exposure to Financial Assets
2015 2014 2015 2014
Cash and Cash Equivalents 13,146,951 7,309,704 8,298,535 1,888,334
Trade and Other Receivables 192,090,049 250,943,072 1,277,936,079 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.

Figures in brackets indicate deductions


Notes to the Financial Statements continued

85
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
29 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 2015 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


Carrying 6 Month or 6 - 12 1-2 2-5 More than
Financial Assets and Liabilities
Amount (Rs.) Less Months Years Years 5 Years
Financial Assets
Available-for-Sale (AFS) Financial Assets 12,000,000 - - - - 12,000,000
Financial Assets FVTPL 11,814,352 11,814,352 - - - -
Trade and Other Receivables 1,277,936,079 1,277,936,079 - - - -
Cash and Cash Equivalents 8,835,735 8,835,735 - - - -
Total Undiscounted Financial Assets 1,310,586,166 1,298,586,166 - - - 12,000,000
Financial Liabilities
Trade and Other Payables 234,802,372 234,802,372 - - - -
Borrowings 1,007,285,443 66,622,807 149,662,636 111,000,000 198,000,000 482,000,000
Bank Overdrafts 103,517,631 103,517,631 - - - -
Total Undiscounted Financial Liabilities 1,345,605,446 404,942,810 149,662,636 111,000,000 198,000,000 482,000,000

Net Undiscounted Financial Assets / (35,019,280) 893,643,356 (149,662,636) (111,000,000) (198,000,000) (470,000,000)
(Liabilities)

Group

Carrying 6 Month or 6 - 12 1-2 2-5 More than
Financial Assets and Liabilities
Amount (Rs.) Less Months Years Years 5 Years
Financial Assets
Available-for-Sale (AFS) Financial Assets 12,000,000 - - - - 12,000,000
Financial Assets FVTPL 12,561,016 12,561,016 - - - -
Trade and Other Receivables 192,090,049 192,090,049 - - - -
Cash and Cash Equivalents 13,935,221 13,935,221 - - - -
Total Undiscounted Financial Assets 230,586,286 218,586,286 - - - 12,000,000
Financial Liabilities
Trade and Other Payables 281,991,117 281,991,117 - - - -
Borrowings 1,618,303,493 85,273,807 159,959,214 182,558,936 357,797,556 832,713,980
Bank Overdrafts 105,916,669 105,916,669 - - - -
Total Undiscounted Financial Liabilities 2,006,211,279 473,181,594 159,959,214 182,558,936 357,797,556 832,713,980

Net Undiscounted Financial Assets / (Liabilities) (1,775,624,994) (254,595,308) (159,959,214) (182,558,936) (357,797,556) (820,713,980)

Figures in brackets indicate deductions


Notes to the Financial Statements continued

86
Notes to the Financial Statements
(Expressed in Sri Lankan Rupees)
29.2 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 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 / by the management to ensure that the operations of these
companies are met the expected industry standards, and thereby the returns.

3.3 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.

29.3 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 2015 and 2014.

Group Company
Class of Capital
2015 2014 2015 2014
Total Borrowings 1,724,409,898 1,864,442,569 1,110,992,810 1,208,651,445
Total Equity 3,413,090,355 3,102,427,582 3,327,967,891 2,894,780,809
Gearing Ratio (%) 50.52% 60.10% 33.38% 41.75%

30. Review on Pre / Post Operation Losses and Future Strategies

Group incurred a net loss of Rs. 456,854,005/- and Rs. 309,064,216/- for the financial years ended 31 March 2015 & 2014 respectively as the group had
to incur substantial expenses in the areas of  marketing, business promotions, customer service, training and recruitment. These are costs that needed to
be incurred upfront in order to be an established and preferred hotel in the industry. The other significant cost has been the interest payable on loans that
had been secured by the company to construct the hotels. These were initially at higher interest rates which have now being re-negotiated to be on par with
prevalent low rates.
Group Company
Cost Categories
2015 2014 2015 2014
Finance Cost 45 42 49 33
Depreciation (based on present low occupancy) 33 23 23 3

The Board of Directors of the group are confident and have no significant doubt on group’s ability to continue as a going concern as the group has already
taken steps to strengthen its Sales & Marketing and to maintain optimum capital structure. The marketing team has been strengthened and given higher
targets to achieve this year. This financial year (i.e. 2015/16) the company has witnessed a significant growth in the occupancy numbers when compared with
last year and is confident in achieving much better results than  last year. They have also identified the need to reduce the debt burden in order to reduce the
interest cost and is currently carrying out talks with potential investors to infuse cash into the company to reduce the debt obligations.

Figures in brackets indicate deductions


87
Shareholders & Investor Information
20 Major Shareholders as at 31st March 2015

Shareholding as at 31st March 2015 Shareholding as at 31st March 2014


Shareholder's name
No of Shares % No of Shares %
1 MR. A C SENEVIRATNE 91,782,123 23.921
120,079,839
FIRST CAPITAL MARKETS LIMITED / MR. A C SENEV1RATNE 6,500,000 126,579,839 25.659 6,500,000 1.694
2 HSBC INTL NOMINEES LTD-BBH-GMOEMERGING MARKETS FUND 85,883,101 17.410 43,935,867 11.451
3 FIRST CAPITAL MARKETS LlMITED / ASIA FORT ASSET MANAGEMENT (PVT) LTD 28,600,000 28,600,000 7.454
ASIA FORT ASSET MANAGEMENT (PVT) LTD 21,563,973 50,163,973 10.169 10,416,424 2.715
4 MR. U H DHARMADASA 16,666,667 26,666,667 6.950
PAN ASIA BANKING CORPORATION PLC / MR. U H DHARMADASA 10,000,000 26,666,667 5.406
5 INVESTOR ACCESS EQUITIES (PVT) LTD 24,829,566 5.033 19,267,441 5.022
6 MRS. M C AMERASINGHE 20,000,001 4.054 20,000,001 5.213
7 NATION LANKA FINANCE PLC 13,907,348 2.819 350,000 0.091
8 FIRST CAPITAL MARKETS LIMITED / ANILANA COLLECTION (PVT) LTD 10,000,000 10,000,000 2.606
ANILANA COLLECTION (PVT) LTD 3,714,285 13,714,285 2.780
9 MR. V R RAMANAN 13,242,500 2.684 13.142,500 3.425
10 PRIDELANDS LIMITED 11,798,000 2.392 15,114,667 3.939
11 MR. O E H KALVO 9,857,109 1.998 9,857,109 2.569
12 NATION LANKA FINANCE PLC / JEROME RADLEY JUDE EPHRAUMS 9,233,386 1.872 760,377 0.198
13 MAS CAPITAL (PRIVATE) LIMITED 8,498,271 1.723 6,666,667 1.738
14 SANDWAVE LIMITED 7,894,196 1.600
15 JANASHAKTHI LIMITED ACCOUNT NO.1 6,000,000 1.216 5,040,000 1.303
16 HINL-BBH-GMO FUNDS PLC 5,559,665 1.127 2,844,200 0.741
17 MR. H H A CHANDRASIRI 5,067,003 1.027 5,027,803 1.310
18 MRS S M SENEVIRATNE 4.533,333 0.919 4,533,333 1.182
19 AIO INVESTMENTS (PVT) LTD 4,466,667 0.905 1,800,000 0.469
20 PERSHING LLC S/A AVERBACH GRAUSON & CO. 4340.000 0.880 4,440,000. 1.157
452,235,710 91.673 326,705,179 85.148

41,072,804 8.327 56,949,221 14.148

Total 493,308,514 100.00 383,654,400 100.00

88
Distribution Of Shareholdings as at 31St March 2015
From To No. of Holders No. of Shares %

1 - 1,000 337 106,591 0.02


1,001 - 10,000 160 682,922 0.14
10,001 - 100,000 85 3,840,121 0.78
100,001 - 1,000,000 38 11,293,348 2.29
Over 1,000,000 35 477,385,532 96.77
Total 655 493,308,514 100.00

Analysis of shareholders as at 31st March 2015

Category No. of Shareholders No. of Shares %

Local Individuals 593 188,666,484 38.24


Local Institutions 48 161,889,011 32.82
Foreign Individuals 5 23,273,301 4.72
Foreign Institutions 9 119,479,718 24.22
Total 655 493,308,514 100.00

Directors’ holding in shares as at 31st March 2015


No. of Shares %

Mr. P L Amerasinghe 966,667 0.196


Mr. A C Seneviratne 120,079,839 126,579,839 25.659
First Capital Markets Ltd/Mr A C Seneviratne 6,500,000
Mrs. M C Seneviratne 20,000,001 4.054
Mr. G B Wikramanayake ( resigned on 30.03.2015 ) Nil Nil
Mr. A G Punchihewa 40,000 0.008

Market price per share

Highest during the period Rs.8.50 (01.12.2014) Rs 13.50 (17.07.2013 )


Rs.5.40 (31.03.2015)
Rs 6.70 (31.03.2014) &
Lowest during the period &
(24.09.2013)
(30.06.2014)
As at end of the period Rs.5.60 Rs 7.10

Public Holding
The percentage of shares held by the public as at 31st March 2015 is 28.064% comprising of 635

89
Notice of Meeting
NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of ANILANA HOTELS AND PROPERTIES
PLC will be held on the 29th of September 2015 at the Main Auditorium, The Institute of Chartered
Accountants of Sri Lanka, No.30 A, Malalasekera Mawatha, Colombo 07 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 2015 with the report of the Auditors thereon.

2. Directors

(i) To re-elect Mrs. Manjula Cleone Seneviratne 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. Peter Lucien Amerasinghe who is 71 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 71 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 71 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 2015

90
Form of Proxy
I/We* the undersigned …………………………….………………………………………………………………
………………………………of………………………………………………………………………………………
….…………………………………………………...….being a member/members of ANILANA HOTELS AND
PROPERTIES PLC hereby………………………………………………………………………………....................
of …………………………………………………………………………………………………………………………
………. or failing him/her

Mr. P L Amerasinghe (Chairman of the Company) of Colombo or failing him


Mr. A C Seneviratne (Managing Director) of Colombo or failing him
Mrs. M C Seneviratne (Director) of Colombo or failing her
Mr. W M V Perera (Director) of Colombo or failing him
Mr. A G Punchihewa (Director) of Colombo

as my/our* proxy to vote as indicated here under for me/us* and on my/our* behalf at the Annual General Meeting of the Company to be held on
29th of September 2015 at the Main Auditorium, The Institute of Chartered Accountants of Sri Lanka, No.30 A, Malalasekera Mawatha, Colombo
07 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 2015 with the Report of
the Directors and Auditors thereon.

2. Directors

(i) To re-elect Mrs. Manjula Cleone Seneviratne 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. P L Amerasinghe who is 71 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 ………….2015 ………………………………………


Signature

* Please delete the inappropriate words


Notes:

1. 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.
2. 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.
3. A Proxy holder need not be a member of the Company.
4. Instructions as to completion appear on the reverse hereof.

91
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 OR Proxy holder

NIC No./ Passport No. …………………… ……………………



Nationality …………………… ……………………

Share Certificate No. …………………… ……………………

No. of Shares: …………………… ……………………

92
Corporate Information

Name of the Company


Anilana Hotels & Properties PLC

Legal Form
Public Limited Company listed in July 2013 on the Colombo Stock Exchange. (Incorporated
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) (Resigned with effect from 30th March 2015)
Ajahn Gardiye Punchihewa (Director)
Wahalathanthrige Manjula Viraj Perera (Director) (Appointed with effect from 18th May 2015 )

Secretaries
Corporate Advisory Services (Pvt) Ltd
No.47, Alexandra Place, Colombo 07.
Tel: 94 11 2695782
Fax: 94 11 2695410
Email: desaram@desaram.com

Registered Office
No. 14, Reid Avenue, Colombo 07.
Tel: 94 11 2030900
Fax: 94 11 2673355
Email: info@anilana.com
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.
www.anilana.com