the lighthouse hotel plc company registration number - … · earnings per share for the 2.23 2.89...

TWELVE MONTHS ENDED 31ST MARCH 2019

THE LIGHTHOUSE HOTEL PLCCompany Registration Number - PQ 73

INTERIM REPORT

Fourth Quarter

NAME OF COMPANY The Lighthouse Hotel PLC

Company Number PQ 73

LEGAL FORM A Quoted Public Company with

Limited Liability incorporated

in Sri Lanka in 1994

BOARD OF DIRECTORS N.J.H.M.Cooray - Chairman

R.A.E.Samarasinghe - Managing Director

N.T.M.S.Cooray (Ms)

N.Wadugodapitiya

C.S.R.S.Anthony

Ranil de Silva

E.P.A.Cooray

A.M.Ondaatjie (Ms)

C.Pathiraja (Dr)

T.Nadesan

A.T.P.Edirisinghe

SECRETARIES Corporate Services (Pvt) Ltd

216, De Saram Place

Colombo 10.

Phone : 4718200

AUDITORS Messrs Ernst & Young

Chartered Accountants

201, De Saram Place

Colombo 10.

HOTEL OPERATION & MARKETING Jetwing Hotels Ltd

"Jetwing House"

46/26, Nawam Mawatha

Colombo 2.

Phone : 4709400

E-mail : [email protected]

Web : www.jetwinghotels.com

REGISTERED OFFICE "Jetwing House"

46/26, Nawam Mawatha

Colombo 2.

THE LIGHTHOUSE HOTEL PLC

CORPORATE INFORMATION

Page 1 of 13

Market Value of Shares 31.03.2019 31.03.2018

(Rs.) (Rs.)

Closing price on 25.60 39.80

Highest price recorded for the twelve months ending 42.00 58.00

Lowest price recorded for the twelve months ending 25.00 36.00

Highest price recorded for the three months ending 38.80 45.00

Lowest price recorded for the three months ending 25.00 36.00

Market Capitalisation (Rs.Mn.) 1,178 1,831

Ratios

Net assets per share 64.44 62.29

Share trading for the twelve months ended

Number of transactions 485 514

Number of shares traded 65,074 141,480

Value of shares traded (Rs.) 2,029,656 6,045,711

Twenty Largest Shareholders as at 31st March, 2019

Name of Shareholder No of Shares as at %

31.03.2019

01. JETWING HOTELS MANAGEMENT SERVICES (PVT) LTD 18,970,440 41.24

02. MERCANTILE INVESTMENTS AND FINANCE PLC 7,736,677 16.82

03. EMPLOYEES PROVIDENT FUND 5,084,800 11.05

04. BANK OF CEYLON- A/C NO - 2 4,474,620 9.73

05. MRS. A.M.J. COORAY 1,211,784 2.63

06. NATIONAL SAVINGS BANK 1,175,667 2.56

07. JETWING TRAVELS (PRIVATE) LIMITED 840,200 1.83

08. MS N.T.M.S. COORAY 789,803 1.72

09. MR. N.J.H.M. COORAY 748,803 1.63

10. DEE INVESTMENTS (PVT) LTD 658,791 1.43

11. JETWING ECO HOLIDAYS (PVT) LTD 595,984 1.30

12. THE NUWARA ELIYA HOTELS COMPANY PLC 520,123 1.13

13. MR. D.J. DE SILVA WIJEYERATNE 347,200 0.75

14. CONFIFI MANAGEMENT SERVICES (PRIVATE) LTD 275,900 0.60

15. CONFIFI INVESTMENTS (PVT) LTD 250,000 0.54

16. FERN HOLDINGS (PRIVATE) LIMITED 238,119 0.52

17. MISS. A.M. WIKRAMANAYAKE 105,754 0.23

18. MR. S. MENDIS 100,000 0.22

18. MRS. C.A.D.S. WOODWARD 100,000 0.22

18. MR. I.A.R. PERERA 100,000 0.22

TOTAL 44,324,665 96.36

There were no non voting shares as at 31st March, 2019

Directors' shareholding.

Directors Directors' Direct

Share holding

as at 31st March, 2019

Ms. N.T.M.S. Cooray 789,803

Mr. N.J.H.M. Cooray 748,803

Mr. R.A.E.Samarasinghe 50,000

Mr. R.de Silva 10,000

Mr. C.S.R.S.Anthony 1,000

Mr. A.T.P. Edirisinghe 1,000

There has been no change in the Directors' direct shareholding during the 12 months ended 31st March, 2019

INVESTOR INFORMATION


31.44% of the issued capital of the Company was held by the public, comprising of 1,184 shareholders and a float

adjusted market capitalisation of LKR 370,237,440/- as at 31st March 2019. In terms of Rule 7.13.1.(b) of the Listing

Rules of the Colombo Stock Exchange, the Company qualifies under option 2 of the minimum public holding

requirement.

Page 2 of 13

Unaudited Audited Unaudited Audited

As at 31.03.2019 31.03.2018 31.03.2019 31.03.2018

Rs.'000 Rs.'000 Rs.'000 Rs.'000

ASSETS

Non - Current Assets

Property, Plant and Equipment 3,115,583 3,185,405 2,836,043 2,896,395

Prepaid Lease Rent 2,273 2,303 2,273 2,303

Intangible Assets 1,060 1,304 242 219

Investment in Subsidiary - - 175,000 175,000

Other Non-Current Financial Assets 86,714 87,287 86,714 87,287

3,205,630 3,276,299 3,100,272 3,161,204

Current Assets

Inventories 27,459 28,964 26,389 28,435

Trade and Other Receivables 136,301 139,488 130,592 130,443

Cash at Bank and in Hand 42,142 12,903 40,124 12,469

205,902 181,355 197,105 171,347

Total Assets 3,411,532 3,457,654 3,297,377 3,332,551

EQUITY AND LIABILITIES

Equity Attributable to equity holders of the Parent

Stated Capital 460,001 460,001 460,001 460,001

Reserves 2,075,887 2,076,460 2,066,183 2,066,756

Retained Earnings 428,430 328,702 481,970 347,346

2,964,318 2,865,163 3,008,154 2,874,103

Non Controlling Interest - - - -

Total Equity 2,964,318 2,865,163 3,008,154 2,874,103

Non-Current Liabilities

Post-Employment Benefit Liability 37,396 31,618 36,976 31,499

Interest Bearing Loans & Borrowings 108,627 99,955 4,710 6,372

Deferred Tax Liabilities 125,709 122,704 122,398 122,248

271,732 254,277 164,084 160,119

Current Liabilities

Trade and Other Payables 131,827 142,147 119,759 127,467

Current portion of Interest-bearing Loans & Borrowings 39,937 192,034 1,662 166,829

Income Tax Payable 3,718 4,033 3,718 4,033

175,482 338,214 125,139 298,329

Total Liabilities 447,214 592,491 289,223 458,448

Total Equity and Liabilities 3,411,532 3,457,654 3,297,377 3,332,551

C.S.R.S. Anthony

Director

Director Director

09th May 2019

Colombo

The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by.

The Statement of Financial Position as at 31st March 2019, the Statement of Profit or Loss, Statement of Comprehensive Income, Statement of Changes

in Equity and Cash Flow Statement for the twelve months then ended as well as the Statement of Profit or Loss and the Statement of Comprehensive

Income for the three months are drawn up from the unaudited financial statements of the Group/Company and they provide the information required

by the Colombo Stock Exchange.

It is certified that the financial statements have been prepared in compliance with the requirements of the Companies Act No.7 of 2007.


STATEMENT OF FINANCIAL POSITION

Group Company

Page 3 of 13

Variance Variance

Favourable Favourable

Unaudited Audited (Unfavourable) Unaudited Unaudited (Unfavourable)

2019 2018 2019 2018

Rs.'000 Rs.'000 Rs.'000 Rs.'000

Revenue 850,118 836,005 2% 304,989 299,063 2%

Cost of Sales (157,851) (154,961) -2% (46,728) (47,254) 1%

Gross Profit 692,267 681,044 2% 258,261 251,809 3%

Other Income & Gains 8,002 1,059 656% 6,501 413 1474%

Marketing & Promotional Expenses (26,994) (30,438) 11% (11,848) (10,978) -8%

Administrative Expenses (517,899) (486,308) -6% (141,457) (138,775) -2%

Finance Cost (21,790) (16,864) -29% (3,765) (4,200) 10%

Finance Income 759 600 27% 228 414 -45%

Exchange Gain/(Loss) from Conversion (12,095) (495) -2343% 3,971 - -

of Foreign Currency Loan

Profit/(Loss) Before Tax 122,250 148,598 -18% 111,891 98,683 13%

Income Tax Expenses (19,692) (15,880) -24% (9,223) (5,697) -62%

Net Profit/(Loss) for the Period 102,558 132,718 -23% 102,668 92,986 10%

Attributable to:

Equity holders of the Parent Company 102,558 132,718 102,668 92,986

Non-controlling Interest - - - -

102,558 132,718 102,668 92,986

Earnings per share for the 2.23 2.89 2.23 2.02

period (Basic)-Rs.

Notes

1. Operating profit/(loss) is after Charging following

Depreciation 96,486 94,650

2. Stated Capital

Issued and fully paid

46,000,000 Ordinary Shares 460,001 460,001

3. Figures in brackets indicate deductions


STATEMENT OF PROFIT OR LOSS - GROUP

12 months ended 31st

March

3 months ended 31st

March

Page 4 of 13

Variance Variance

Favourable Favourable

Unaudited Audited (Unfavourable) Unaudited Unaudited (Unfavourable)

2019 2018 2019 2018

Rs.'000 Rs.'000 Rs.'000 Rs.'000

Revenue 810,688 821,239 -1% 289,590 286,346 1%

Cost of Sales (151,761) (152,622) 1% (45,344) (45,389) 0%

Gross Profit 658,927 668,617 -1% 244,246 240,957 1%

Other Income & Gains 7,997 1,044 666% 6,496 398 1532%

Marketing & Promotional Expenses (24,017) (29,180) 18% (10,788) (9,842) -10%

Administrative Expenses (478,461) (472,725) -1% (130,495) (127,931) -2%

Finance Cost (10,902) (14,083) 23% (713) (2,059) 65%

Finance Income 747 600 25% 223 414 -46%

Exchange Gain/(Loss) from Conversion - (495) 100% - - -

of Foreign Currency Loan

Profit/(Loss) Before Tax 154,291 153,778 0% 108,969 101,937 7%

Income Tax Expenses (16,837) (16,510) -2% (6,368) (6,327) -1%

Net Profit/(Loss) for the Period 137,454 137,268 0% 102,601 95,610 7%

Notes

1. Operating profit/(loss) is after Charging following

Depreciation 85,075 90,959

2. Stated Capital

Issued and fully paid

46,000,000 Ordinary Shares 460,001 460,001

3. Figures in brackets indicate deductions


STATEMENT OF PROFIT OR LOSS - COMPANY

3 months ended 31st

March

12 months ended 31st

March

Page 5 of 13

Unaudited Audited Unaudited Unaudited

Year Year 3 months 3 months

ended ended ended ended

31.03.19 31.03.18 31.03.19 31.03.18

Rs.'000 Rs.'000 Rs.'000 Rs.'000

Net Profit for the period 102,558 132,718 102,668 92,986

Other Comprehensive Income

Other Comprehensive Income to be reclassified

to Statement of Profit or Loss in subsequent periods :

Loss on Available for Sale-Financial Instruments - (115) - (115)

Other Comprehensive Income not to be reclassified


Loss on Fair Value Through Other Comprehensive Income (573) - (573) -

Financial Instruments

Actuarial Gain/(Loss) on Post-Employment Benefit Liabilities (3,291) 3,784 (3,291) 3,784

Deferred Tax attributable to Post Employment Benefit Liability 461 (454) 461 (454)

Revaluation Surplus of Freehold Land - 113,614 - 113,614

Deferred Tax attributable to Revaluation Surplus - (121,723) - (121,723)

Other Comprehensive Income/(Loss) for the Period (3,403) (4,894) (3,403) (4,894)

Total Comprehensive Income/(Loss) for the Period 99,155 127,824 99,265 88,092

Attributable to:

Equity holders of the Parent Company 99,155 127,824 99,265 88,092

Non-controlling Interest - - - -

99,155 127,824 99,265 88,092

Unaudited Audited Unaudited Unaudited

Year Year 3 months 3 months


31.03.19 31.03.18 31.03.19 31.03.18

Rs.'000 Rs.'000 Rs.'000 Rs.'000

Net Profit/(Loss) for the period 137,454 137,268 102,601 95,610

Other Comprehensive Income

Other Comprehensive Income to be reclassified


Loss on Available for Sale-Financial Instruments - (115) - (115)

Other Comprehensive Income not to be reclassified


Loss on Fair Value Through Other Comprehensive Income (573) - (573) -

Financial Instruments

Actuarial Gain/(Loss) on Post-Employment Benefit Liabilities (3,291) 3,784 (3,291) 3,784

Deferred Tax attributable to Post Employment Benefit Liability 461 (454) 461 (454)

Revaluation Surplus of Freehold Land - 105,865 - 105,865

Deferred Tax attributable to Revaluation Surplus - (120,638) - (120,638)

Other Comprehensive Income/(Loss) for the Period (3,403) (11,558) (3,403) (11,558)

Total Comprehensive Income/(Loss) for the Period 134,051 125,710 99,198 84,052


STATEMENT OF COMPREHENSIVE INCOME - GROUP

STATEMENT OF COMPREHENSIVE INCOME - COMPANY

Page 6 of 13

GROUPStated Revaluation Available Fairvalue Special Retained Total Non Total

Capital Reserve for Sale Reserve of Reserve Earnings Controlling Equity

Reserve Financials Interest

Assets at

FVOCI

Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

-

Balance as at 01st April 2017 460,001 758,875 138 - 1,325,671 307,654 2,852,339 - 2,852,339

Profit for the Period - - - - 132,718 132,718 - 132,718

Other Comprehensive Income - (8,109) (115) - - 3,330 (4,894) - (4,894)

Total Comprehensive Income - (8,109) (115) - - 136,048 127,824 - 127,824

Dividends 2017/2018 - Rs 2.50 per share - - - - (115,000) (115,000) (115,000)

Balance as at 31st March 2018 460,001 750,766 23 - 1,325,671 328,702 2,865,163 - 2,865,163

Effect of adapting new Accounting Standard - - (23) 23 - - - - -

Balance as at 1st April 2018 - Restated 460,001 750,766 - 23 1,325,671 328,702 2,865,163 - 2,865,163

Profit/(Loss) for the Period - - - - - 102,558 102,558 - 102,558

Other Comprehensive Income - - - (573) - (2,830) (3,403) - (3,403)

Total Comprehensive Income/(Loss) - - - (573) - 99,728 99,155 - 99,155

Balance as at 31st March, 2019 460,001 750,766 - (550) 1,325,671 428,430 2,964,318 - 2,964,318


STATEMENT OF CHANGES IN EQUITY

..…...…….…………..Attributable to Equity Holders of parent………………………

Page 7 of 13

COMPANYStated Revaluation Available Fairvalue Special Retained Total

Capital Reserve for Sale Reserve of Reserve Earnings

Reserve Financials

Assets at

FVOCI

Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000

Balance as at 01st

April 2017 460,001 755,835 138 - 1,325,671 321,748 2,863,393

Profit for the Period - - - - - 137,268 137,268

Other Comprehensive Income - (14,773) (115) - - 3,330 (11,558)

Total Comprehensive Income - (14,773) (115) - - 140,598 125,710

Dividends 2017/2018 - Rs 2.50 per share - - - - - (115,000) (115,000)

Balance as at 31st March 2018 460,001 741,062 23 - 1,325,671 347,346 2,874,103

Effect of adapting new Accounting Standard - - (23) 23 - - -

Balance as at 1st April 2018 - Restated 460,001 741,062 - 23 1,325,671 347,346 2,874,103

Profit/(Loss) for the Period - - - - - 137,454 137,454

Other Comprehensive Income - - - (573) - (2,830) (3,403)

Total Comprehensive Income/(Loss) - - - (573) - 134,624 134,051

Balance as at 31st March, 2019 460,001 741,062 - (550) 1,325,671 481,970 3,008,154

STATEMENT OF CHANGES IN EQUITY


Page 8 of 13

Unaudited Audited Unaudited Audited

12 months 12 months 12 months 12 months


31.03.2019 31.03.2018 31.03.2019 31.03.2018

Rs.'000 Rs.'000 Rs.'000 Rs.'000

Cash Flows from Operating Activities

Profit/(Loss) before Tax 122,250 148,598 154,291 153,778

Adjustments for

Depreciation 96,486 94,650 85,075 90,959

Amortization of Prepaid Lease Rental 30 30 30 30

(Income) from Investments-Interest Income (759) (600) (747) (600)

(Profit)/Loss on Disposal of Property Plant & Equipment 1,331 (1,378) 1,347 (1,378)

Finance Costs 21,790 16,864 10,902 14,083

Provision for Defined Benefit Plans 6,431 6,283 6,129 6,180

Allowance for Doubtful Debts 1,198 382 1,198 382

Amortization of Intangible Assets 505 482 211 410

Exchange (Gain)/Loss from conversion of foreign currency loans 12,095 1,049 - 495

Operating Profit before Working Capital Changes 261,357 266,360 258,436 264,339

(Increase)/Decrease in Inventories 1,505 3,487 2,046 4,016

(Increase)/Decrease in Trade and Other Receivables 1,989 (4,900) (1,347) (2,592)

Increase/(Decrease) in Trade and Other Payables (10,320) 4,849 (7,708) (7,406)

Cash Generated from Operations 254,531 269,796 251,427 258,357

Income Tax Paid (16,541) (13,960) (16,541) (13,960)

Finance Cost Paid (21,790) (16,864) (10,902) (14,083)

Defined Benefit Plan Costs Paid net of transfers (3,944) (968) (3,944) (984)

Net Cashflows from Operating Activities 212,256 238,004 220,040 229,330

Cash Flows from/(Used in) Investing Activities

Acquisition of Property, Plant & Equipment (28,268) (235,985) (26,295) (35,292)

Proceeds from Government Grants - 4,749 - 4,749

Proceeds from Sale of Property, Plant & Equipment 272 5,908 224 5,908

Interest Income 759 600 747 600

Investment in Unawatuna Properties (Pvt) Ltd - - - (75,000)

Acquisition of Intangible Assets (259) (1,157) (232) -

Net Cash Flows from/(Used in) Investing Activities (27,496) (225,885) (25,556) (99,035)

Cash Flows from/(Used in) Financing Activities

Proceeds from Interest Bearing Loans & Borrowings - 100,011 - 6,981

Repayment of Interest Bearing Loans & Borrowings (1,662) (66,104) (1,662) (66,104)

Dividends Paid - (115,000) - (115,000)

Net Cash Flows Used in Financing Activities (1,662) (81,093) (1,662) (174,123)

Net Increase/(Decrease) in Cash & Cash Equivalents 183,098 (68,974) 192,822 (43,828)

Cash and Cash Equivalents at the beginning of the period (177,469) (108,495) (152,698) (108,870)

Cash and Cash Equivalents at the end of the period 5,629 (177,469) 40,124 (152,698)

Cash and Bank Balance 42,142 12,903 40,124 12,469

Bank Overdraft (36,513) (190,372) - (165,167)

5,629 (177,469) 40,124 (152,698)


STATEMENT OF CASH FLOWS

COMPANYGROUP

Page 9 of 13


NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED 31 MARCH 2019

1. Principal Activities and Nature of Operations

The Company owns and operates Jetwing Lighthouse Hotel, which is targeted at the up market

leisure travelers.

The Fully owned subsidiary of the Company, Unawatuna Properties (Private) Limited which operates

Hotel J Unawatuna commenced commercial operation during the month of December 2017.

2. Basis of Preparation

The interim financial statements have been prepared in accordance with the Sri Lanka Accounting

Standard (LKAS) 34- Interim financial reporting.

3. Changes in Accounting Policies

These interim financial statements have been prepared in accordance with the accounting policies

set out in the Annual Report for the year ended 31.03.2018, except for the new standards adopted

as follows.

New and amended standards and interpretations

The following are the new significant accounting policies applied by the Group in preparing its

Financial Statements. Several other amendments and interpretations apply for the first time in

financial year 2018/19, but do not have an impact on the consolidated financial statements of the

Group. The Group has not early adopted any standards, interpretations or amendments that have

been issued, but are not yet effective.

A) SLFRS 15 Revenue from Contracts with Customers

SLFRS 15 replaced LKAS 18 Revenue and related Interpretations. SLFRS 15 established a five-step

model to account for revenue arising from contracts with customers and requires that revenue be

recognized at an amount that reflects the consideration to which an entity expects to be entitled in

exchange for transferring goods or services to a customer. SLFRS 15 required the Group to exercise

judgement, taking into consideration all of the relevant facts and circumstances when applying each

step of the model to contracts with their customers.

The Group adopted SLFRS 15 using the modified retrospective method of adoption with the date of

initial application of 1 April 2018. Under this method, the standard can be applied either to all

contracts at the date of initial application or only to contracts that are not completed at this date.

The Group elected to apply the standard to all contracts as at 1 April 2018. The cumulative effect of

initially applying SLFRS 15 is recognized at the date of initial application as an adjustment to the

opening balance of retained earnings. Therefore, the comparative information was not restated as

permitted, and continues to be reported under LKAS 18 and related Interpretations.

Page 10 of 13



The Group carried out an impact analysis of the possible impact from adoption of the SLFRS 15

across all the services offered by each Hotel in the Group.

After a detailed impact analysis, the Group concluded that the adoption of SLFRS 15 as at 1 April

2018 did not have a significant financial impact to the balances as at 1 April 2018.

B) SLFRS 9 Financial Instruments

SLFRS 9 Financial Instruments replaces LKAS 39 Financial Instruments: Recognition and

Measurement for annual periods beginning on or after 1 April 2018, bringing together all three

aspects of the accounting for financial instruments: classification and measurement, impairment,

and hedge accounting.

The Group applied SLFRS 9 retrospectively, with an initial application date of 1 April 2018. The Group

has not restated the comparative information, which continues to be reported under LKAS 39.

Differences arising from the adoption of SLFRS 9 have been recognized directly in retained earnings

and other components of equity.

The effect of adopting SLFRS 09 as at 1 April 2018 did not have a significant financial impact to the

balances as at 1 April 2018.

The nature of significant changes are described below

a) Classification and Measurement Under SLFRS 9 Debt instruments are subsequently measured at fair value through profit or loss, amortised cost, or fair value through OCI. The classification is based on two criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding. The assessment of the Group’s business model was made as of the date of initial application, 1 April 2018. The assessment of whether contractual cash flows on debt instruments are solely comprised of principal and interest was made based on the facts and circumstances as at the initial recognition of the assets. The Group continued measuring at fair value all financial assets previously held at fair value under LKAS 39. The following are the changes in the classification of the Group’s financial assets: Trade receivables and Other non-current financial assets classified as Loans and receivables as at 31 March 2018 are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. These are classified and measured as Debt instruments at amortised cost beginning 1 April 2018. Equity investments in non-listed companies classified as AFS financial assets as at 31 March 2018 are classified and measured as Equity instruments designated at fair value through OCI beginning

Page 11 of 13



from 1 April 2018. The Group elected to classify irrevocably its non-listed equity investments under this category at the date of initial application as it intends to hold these investments for the foreseeable future. There were no impairment losses recognised in profit or loss for these investments in prior periods. The Group has not designated any financial liabilities as at fair value through profit or loss. There are no changes in classification and measurement for the Group’s financial liabilities. b) Impairment The adoption of SLFRS 9 has fundamentally changed the Group’s accounting for impairment losses for financial assets by replacing LKAS 39’s incurred loss approach with a forward-looking expected credit loss (ECL) approach. SLFRS 9 requires the Group to recognise an allowance for ECLs for all debt instruments not held at fair value through profit or loss and contract assets. Upon adoption of SLFRS 9 the Group recognised has the following types of financial assets which are subject to SLFRS 9’s expected credit loss (ECL) model: Trade receivables and prepayments The adoption of SLFRS 9 has fundamentally changed the company’s accounting for impairment losses for financial assets replacing the LKAS 39’s incurred loss approach with a forward-looking expected credit loss (ECL) approach. Further company applied the simplified approach in calculating the expected credit loss of the trade receivables & prepayments. The company was required to revise its impairment methodology under SLFRS 9 for each of these classes of assets. The adoption of the ECL requirements of SLFRS 9 did not result in any material increases in impairment allowances of the company’s debt financial assets. No other significant changes in classification and measurement of fiancial assets and liabilities were derived due to the adoption.

4. Information published for the Twelve months to 31st March, 2018 has been reclassified to conform

with the current presentation where applicable.

5. There are no distinguishable components to be identified as segments for the Company.

6. No circumstances have arisen since the reporting date, which would require adjustments to or

disclosure in the Financial Statements.

Page 12 of 13



7. There are no significant contingencies as at the reporting date that require adjustments or

disclosure in the Financials Statements other than following:

– A local authority has claimed a fee amounting to 1% of turnover for the issuance of trade license

for the year 2018 from the Company in March 2018. The Company does not agree with such claim

as it has paid only 0.5% of turnover for the issuance of trade license for the year 2017. The

estimated contingent liability as at 31 March 2019 is LKR 8.3 Mn.

– Contingencies of the Company as at the reporting date on account of guarantees issued on behalf

of subsidiary company amounted to USD 600,000/- and LKR 190 Mn.

8. Operating lease agreement to operate Galle Heritage Villa by Jetwing in Galle Fort will be

terminated with effect from 30th September 2019.

Page 13 of 13

the lighthouse hotel plc company registration number - … · earnings per share for the 2.23 2.89...

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