!;bm ;m m]...4 Aitken Spence Hotel Holdings PLC | Annual Report 2019/20 Realigning our Course...

1

Curve

Aitken Spence Hotel Holdings PLC | Annual Report 2019/202

CONTENT

3

Maldives Sri Lanka India

VISION

VALUES

Across the Region

Oman


Realigningour Course

We’re adap�ng to changing condi�ons by embarking on a new direc�on of con�nued momentum and progress.

About the Group

5

ABOUT THIS REPORT

Integrated Repor�ng

Financial Repor�ng

Non-Financial Repor�ng

About the Group | Management Discussion & Analysis | Governance | Financial Reports |

66 Aitken Spence Hotel Holdings PLC | Annual Report 2019/20

Financial Capital

Manufactured Capital Intellectual Capital

Capital

Natural Capital

Sustainable Development Goals (SDG) of the United

Na�ons General Assembly

Gender Parity Repor�ng Framework of CA

Sri Lanka

Repor�ng Standards

Sri Lanka Accoun�ng Standards (SLFRS/LKAS) issued by CA Sri Lanka

Companies Act No. 7 of 2007

Lis�ng Requirements of the Colombo Stock Exchange (CSE) and subsequent revisions

to date

Financial Repor�ng

GRI Standards published by the Global Repor�ng Ini�a�ve – ‘Core’ Op�on

of Repor�ng

ESG Repor�ng Guidelines issued by the Colombo Stock

Exchange

Sustainability Repor�ng

Lis�ng Rules of the Colombo Stock

Exchange (CSE) and subsequent revisions

to date

Corporate Governance

Code of Best Prac�ce on Corporate Governance issued by CA Sri Lanka

(2017)

Integrated Repor�ng (IR) Framework of the

Interna�onal Integrated Repor�ng Council

Narra�ve Report and Integrated Management

Discussion & Analysis

Human Capital

Feedback

ABOUT THIS REPORT

77

GROUP PERFORMANCE HIGHLIGHTS



OPERATIONAL HIGHLIGHTS

rooms

rooms

Capital Expenditure

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

202020192018

Rs.Mn

0

1

2

3

4

20202019

Rs. Bn

-900-600-300

0300600900

1,2001,5001,8002,100

20202019201820172016

Rs.Mn %

-6-4-202468

101214

9

Business Partners

Heritance Aarah - First

in the Maldives

0

3,000

6,000

9,000

12,000

15,000

18,000

55

57

59

61

63

65

67

20202019

Rs.Mn %

Payments to Suppliers Purchases from Community

Average Length of

Carbon Footprint

0

6,000

12,000

18,000

24,000

30,000

36,000

42,000

32

34

36

38

40

42

44

46

20202019

GHG Emissions (Scope 1 & 2)

GHG Emissions/Guest Night



CHAIRMAN’S REVIEW

We remain on high alert for developments

about the future, as multiple stakeholders have much at stake.

11

Support for the Sector

Performance

The Road Ahead



CHAIRMAN’S REVIEW

13

MANAGING DIRECTOR’S REVIEW

Decades of leading

differentiated offering that championed

in a strong position to lead the revival of the



MANAGING DIRECTOR’S REVIEW

Financial Performance

A People Business

15About the Group | Management Discussion & Analysis | Governance | Financial Reports |


BOARD OF DIRECTORS

Mr. C.H. Gomez

17

Deshamanya D.H.S. JayawardenaChairmanAppointed in May 2003

Deshamanya D.H.S. Jayawardena was appointed to the Board of Aitken Spence PLC, on 1st April 2000 and has been the Chairman of the Company since 25th April 2003.

A visionary with a good business acumen, he has led many enterprises in very diverse fields to achieve great success. He is the Founder Director and current Chairman/Managing Director of the Stassen Group of Companies, the Chairman of Lanka Milk Foods (CWE) PLC, Browns Beach Hotels PLC, Balangoda Plantations PLC, Madulsima Plantations PLC, Melstacorp PLC, Ambewela Livestock Company Ltd, Lanka Bell Ltd and the Chairman of the Distilleries Company of Sri Lanka PLC. He is also a Director of several other listed and privately held Companies in Sri Lanka and is a former Director of Hatton National Bank PLC, the largest listed bank in Sri Lanka.

Mr. Jayawardena has been sought after to lead large public sector institutions and is a former Chairman of Ceylon Petroleum Corporation and Sri Lankan Airlines.

He is presently the Honorary Consul for Denmark and on 9th February 2010, was knighted by Her Majesty the Queen of Denmark with the prestigious honour of ‘Knight Cross of Dannebrog’.

In 2005 Mr. Jayawardena was awarded the prestigious title, ‘Deshamanya’ in recognition of his services to the Motherland.

Dr. M.P. Dissanayake Managing DirectorAppointed in March 2019

Dr. Parakrama Dissanayake is the Managing Director of Aitken Spence Hotel Holdings PLC, with effect from 15th March 2019.

Prior to this appointment he was Secretary to the Ministry of Ports, Shipping and Southern Development.

He was appointed as the first non-British International President of the Institute of Chartered Shipbrokers UK founded in 1911 and Royal Charter conferred in 1920.

Dr. Dissanayake has also held positions in the past that include, Chairman – Sri Lanka Ports Authority (two stints), Chairman – Chartered Institute of Logistics and Transport (Sri Lanka), Board Director of Urban Development Authority and Board Director of Ceylon Shipping Corporation.

During the period June 2004 to May 2017, he served as a Director of Aitken Spence PLC and the Chairman and CEO of its Maritime and Freight Logistics Sector.

Dr. Dissanayake is an Alumni of the University of Sri Jayawardenapura, NORAD, JICA, Business Alumni of the University of Oxford (UK) and a Fellow of Harvard Business School (EEP).

He is also Chairman of Elpitiya Plantations PLC, Hon. Consul General of Fiji Islands and serves as a Professor in Maritime Studies (visiting) at Shanghai Maritime University and Dalian Maritime University.

Ms. D.S.T. Jayawardena Executive Director Appointed in July 2014

Ms. Stasshani Jayawardena joined the Aitken Spence Group in January 2010 as a Management Trainee. After gaining experience in several of its key Strategic Business Units and Group Companies, she was appointed to the Board of Aitken Spence PLC., in December 2013 and to the Board of Aitken Spence Hotel Holdings PLC., in July 2014. She was appointed as Chairperson of Aitken Spence Hotel Managements (Private) Limited in January 2016 and as Director of Aitken Spence Aviation (Pvt) Ltd. in July 2017. Ms. Jayawardena is overall responsible for the Tourism Sector of the Group that includes Hotels, Destination Management and Overseas Travel.

She’s also a Director of Stassen Group and Lanka Milk Foods (CWE) PLC, Chairperson of Splendor Media (Private) Limited (Subsidiary of Melsta Corp)

Ms. Jayawardena is also a member of the Executive Board of The Hotel Association of Sri Lanka (THASL) and was appointed to represent THASL at the Ceylon Chamber of Commerce committee meetings 2019/20 (Hotel Sector).

A graduate of St. James’ & Lucie Clayton College and Keele University in the United Kingdom, Ms. Jayawardena was the youngest intern to work under US Senator Hilary Rodham Clinton and the Former US President Bill Clinton in 2003. She was the Sri Lankan Ambassador for EY NextGen Club for 2017 to 2019.

At present Ms. Jayawardena leads a team of international professionals in strengthening the service foundations and formulating a strategic road map for the Tourism Sector of the Group. In 2017, Ms. Jayawardena was recognized with the Hotel & Hospitality Sector Gold Award at the Top 50 Professional & Career Women Awards in Sri Lanka.

Mr. C.M.S. JayawickramaExecutive Director Appointed in April 2005

Mr. Susith Jayawickrama is the Joint Managing Director of Aitken Spence Hotel Managements (Pvt) Ltd, which manages all hotels of the Group.

He serves on the Boards of most hotel companies in the Group including that of Aitken Spence Hotel Holdings PLC. He is a Fellow member of the Chartered Institute of Management Accountants UK and has substantial experience in senior management positions in the Group’s hotel division, counting three decades of exposure in the tourism industry in Sri Lanka and overseas.

Mr. Jayawickrama is a past Vice President of the Tourist Hotels Association of Sri Lanka (THASL).

Mr. J.M.S. BritoNon-Executive DirectorAppointed in July 2001

Mr. Brito joined the Board of Aitken Spence PLC. in April 2000, with a multi- discipline academic background and a wealth of experience from a career counting over 40 years that includes experience working with several international organisations. He was then appointed as the Managing Director of Aitken Spence PLC, in December 2001 and Deputy Chairman in April 2003 which position he held until his retirement on 15th March 2019. After retirement, Mr. Brito continues to be a Non-Executive Director of Aitken Spence Hotel Holdings PLC.

About the Group | Management Discussion & Analysis | Governance | Financial Reports | Supplementary Information


Mr. C.H. Gomez

BOARD OF DIRECTORS

19

CORPORATE MANAGEMENT TEAM

Mr. Rohitha Rajaratne Mr. Bjorn van der HorstMr. Darell De Crusz

Mr. Dimuthu KumarasingheMs. Dinali Alexander


Mr. Srinith De Silva


Mr. Srinith De Silva

Mr. Rohitha Rajaratne

Mr. Darell De Crusz

Mr. Bjorn Van Der Horst

CORPORATE MANAGEMENT TEAM

21

Ms. Dinali Alexander

Mr. Dimuthu Kumarasinghe



ABOUT THE GROUP

Our Brands

- -

- -Total

1,303

261

236

750

140 150Managed

Owned

23

AWARDS AND RECOGNITION

Corporate

Excellence

Overall

Sustainable Tourism



GROUP STRUCTURE

60%

51%

100%

51%

Aitken Spence Hotel Holdings PLC


MILESTONES

1973

1978

1994

1995

2000

2006

1996

1997 2005

1981

1986

1994

27

2007

2009

2011

2015

2013

2017

2019

2008

2010

2014

2016

2018 2020

2012



Revolu�onisingthe Future

We’re transforming the face of hospitality to circumvent obstacles and journey beyond surrounding constraints.

Management Discussion & Analysis

29

OPERATING ENVIRONMENT

Global Economic Environment Global Economic Growth

0

1

2

3

4

5

Wor

ldO

utpu

t

Adva

nced

Ec

onom

ies

Euro

Are

a

Emer

ging

M

arke

t and

D

evel

opin

g Ec

onom

ies

2017 2018 2019

%

GDP Growth - Sri Lanka

0

1

2

3

4

5

%

20202019201820172016

Interest Rate Trends

6

7

8

9

10

11

12

13

%

AWPLR 1 Year TB Rate

Apr

-19

May

-19

Jun-

19Ju

l-19

Aug

-19

Sep-

19O

ct-1

9N

ov-1

9D

ec-1

9Ja

n-20

Feb-

20M

ar-2

0



Global Tourism

World Tourist Arrivals

0

200

400

600

800

1,000

1,200

1,400

1,600

-25

-20

-15

-10

-5

0

5

10

15

20202019201820172016

Mn %

World Tourist Arrivals Growth (YoY)

Sri Lanka Tourism

Monthly Tourist Arrivals - Sri Lanka

0

50,000

100,000

150,000

200,000

250,000

300,000

Rs.Mn

2018/19 2019/20

April

May

June July

Augu

st

Sept

embe

r

Oct

ober

Nove

mbe

r

Dece

mbe

r

Janu

ary

Febr

uary

Mar

ch

Arrivals by Source Markets - Sri Lanka

India

UK

China

Germany

Australia

France

Russia

USA

Others

%

19

10

9

75544

37

Maldives

OPERATING ENVIRONMENT

31

Maldives - Room Supplyand Occupancy

0

10,000

20,000

30,000

40,000

50,000

60

61

62

63

64

65

20202019201820172016

No.

of B

eds

Occ

upan

cy

Occupancy Rate

Oman

India



GLOBAL TRENDS IN TOURISM

Demographics and Travel Trends

36%

38%

48%

>77%

>55%

Eco Travel

55%

73%

33

OPPORTUNITIES AND CHALLENGES

WeaknessesStrengths

Threats



VALUE CREATION MODEL

Rs. 20.6 Bn

3,235

372,105 GJ

753,155 m3

Activities

Housekeeping

Food and Beverage

Maintenance

Finance

Hotel Support Services

Branding and Corporate

Corporate Housekeeping

Corporate Food and Beverages

Central Purchasing and Merchandising

Engineering & Projects

Corporate Finance

Corporate Learning and Development

Other Group Support Services

A Unique Collection

of Properties

Brands and ArchitectureSharpening Our Competitive Edge through

Underpinned

Commitment ToManagement

Robust Corporate

VISION

Rs. 52.6 Bn

140

3,623

800

35

At Generating Shared Value

Expansion and Upgrade

Excellence

Developing Our Talent Pool

2e

Rs. 22.9 Mn

Outputs/Impacts

Impacts

Outcomes Linked To Stakeholder Value

Shareholders

Government

Business Partners

Customers



MATERIAL TOPICS


RISK MANAGEMENT

Approach to Risk Management

2nd Line of Defence

Business Management Units

Group Strategic Risk Unit

Internal Audit

Risk Governance

39

Board of Directors

Managing Director

Corporate Management

General Managers

Internal Audit

Risk Management Process

Risk Management Process



Principal Risks

Assessment

Assessment

Assessment

Assessment

RISK MANAGEMENT

41

Assessment

Assessment

Indicators

Assessment



Indicators

Assessment

Assessment

Risk Heat Map

4

RISK MANAGEMENT

43

PeopleDemand



STRATEGIC VISION


USD 1.24 Mn

Omani Rial 0.82 Mn

Key Performance Indicators:

Capital Expenditure

0

500

1,000

1,500

2,000

2,500

3,000

0

2,000

4,000

6,000

8,000

10,000

12,000

20202019201820172016

Rooms Rs.Mn

Operational Rooms Capital Expenditure

25%

Short to medium-term:

Long-term:

45

Rs. 515 Mn

Rs. 326 Mn


Average Customer Review Score (GRI )

90.6

90.8

91.0

91.2

91.4

91.6

20202019

%

+ 42%


Long-term:


3,235

Rs. 22.9 Mn

Rs. 3.8 Bn


Training Record

0

20,000

40,000

60,000

80,000

5

10

15

20

25

202020192018

Hours Rs.Mn

Total Training Hours

Investment in Training

20%


Long-term:



Rs. 18.6 Mn


Carbon Footprint

0

6,000

12,000

18,000

24,000

30,000

36,000

42,000

32

34

36

38

40

42

44

46

202020192018

Carbon Footprint Carbon Intensity

62%

42%


Long-term:

47

BRANDS AND ARCHITECTURE

Architecture and Design

Heritance Adaaran

For Further Information Refer to



92

member

229

Milestones

49

OmanMaldives India

+31% +54% +20% +110%


Channels to Market%

7317

10


DISTRIBUTION AND MARKETING

Sri Lanka

4


E-Business

Target Target

C

TargetTarget

CRM

DIGITISATION

51

Business Ethics

Environmental Management

Human Resources

Integrated Sustainability Policy



Governance Structure

53

SUSTAINABLE TOURISM DASHBOARD

Emission

Protected Areas

Contribution

Economic ImpactTotal Value Added

Overall 10%

Female

193 acres

128 SpeciesBirds: 183 SpeciesNatural Streams: 11

19 SpeciesMammals: 17 Species

64 Species

Rs. 3.8 Bn

Rs. 22.9 Mn

216

1,064

Rs. 811 Mn

Compliance


42%

62%

Trees Planted

Coral

in Maldives: 2 area

Reef Carbon Footprint

0

6,000

12000

18,000

24,000

30,000

36,000

42,000

32

34

36

38

40

42

44

46

202020192018

Carbon Footprint

Carbon Footprint/Guest Night

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000

Energy Consumption (GJ)

Water Consumption (Litres)

2018/19 2019/20



Strategic Focus

Way Forward

Sri Lanka

Capital Expenditure Footprint

Financial Capital


Capital

Natural Capital

Human Capital

55

Performance - Sri Lanka

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

202020192018

Rs.Mn Rs.Mn

Revenue

-400

-200

0

200

400

600

800

1,000



Strategic Focus

Way Forward

South Asia and Middle East

Rs. 2.9 Bn Capital Expenditure Footprint

Financial Capital


Capital

Natural Capital

Human Capital

57

Performance - South Asia and Middle East

0

3,000

6,000

9,000

12,000

15,000

202020192018

Rs.Mn Rs.Mn

Revenue

-400

0

400

800

1,200

1,600



CAPITAL MANAGEMENTFinancial Capital

Highlights 2019/20 Challenges Way Forward

in ensuring sustainable returns to shareholders. Financial

Financial Capital

Rs. 20.6 Bn Rs. 30.1 Bn Rs. 3.3 Bn

59

Financial Performance

RevenueRevenue Trends

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

-30

-20

-10

0

10

20

30

40

50

20202019201820172016

Rs. MnYoYGrowth%

Sri Lankan Sector South Asian Sector

Growth - Sri Lankan Sector

Growth - South Asian & Middle East Sector

-7,000

-3,500

0

3,500

7,000

10,500

14,000

17,500

21,000

Rs.Mn

A B C D E F G H

A. Net RevenueB. Other Income/(Expenses)

2018/19 2019/20



EBITDA

0

1,000

2,000

3,000

4,000

5,000

15

20

25

30

35

40

20202019201820172016

Rs.Mn %

EBITDA EBITDA Margin

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Sri Lankan Sector South Asian Sector

20202019201820172016

Rs.Mn

Finance Expenses


Finance Expense

0

350

700

1,050

1,400

1,750

2,100

0

2

4

6

8

10

12

20202019201820172016

Rs.Mn Times

Finance Expense Interest Cover


-900-600-300

0300600900

1,2001,5001,8002,100

20202019201820172016

Rs.Mn %

-6-4-202468

101214


Balance Sheet Strength

2020

2019

2018

Rs.Bn

PPE, Right-of-use assets,

Other Non Current Assets Non-Controlling Interests

015 5 525 1535 2545 3555 4565 5575 7565

Assets


Capital Expenditure & Investments

0

2,000

4,000

6,000

8,000

10,000

20202019201820172016

Rs.Mn

Gearing and Capital Structure

Gearing

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

0

7

14

21

28

35

42

49

56

20202019201820172016

Rs.Mn D/(D+E)

Debt Equity D/(D+E)

LKR

USD

EUR

OMR

5

64

26

4

%

63

Economic Value Added

Total Investment Capital

- - - -

Adjusted Investment Capital

Economic Value Added




CAPITAL MANAGEMENTManufactured Capital

Manufactured Capital

Rs. 74.3 Bn 2,343 497

65

Oman

Maldives Sri Lanka

India

4

•

• •

•



Heritance Ahungalla Heritance Kandalama


67

Heritance Negombo

Heritance Aarah



Adaaran Select Meedhupparu

Adaaran Select Hudhuran Fushi

Adaaran Club Rannalhi


69

Al Falaj Hotel

Hotel RIU Sri Lanka



Earl’s Regent

Desert Nights Camp - Al Wasil

Sur Plaza Hotel - Sur

Al Wadi Hotel - Sohar


71

Room Inventory

0

500

1,000

1,500

2,000

2,500

20202019201820172016

Rooms

Owned Rooms Managed Rooms

Digital Infrastructure:


Capacity Enhancement

Product Enhancement

Operational Capex

%

46

27

27

Asset Strategy 2019/20



CAPITAL MANAGEMENTHuman Capital


22.9

-

49

Human Capital

3,235 10% 74,904

73

Managing our Human Capital

Recruitment Policy

Employees by Contract and Gender

0

500

1,000

1,500

2,000

TemporaryPermanent

No.

Male Female

Employees by Contract and Region

0

500

1,000

1,500

2,000

India MaldivesSri Lanka Oman

No.

Permanent Temporary

New Recruits by Age

<35 Years

36-45 Years

46-55 Years

>56 Years

%

83

133 1

New Recruits by Gender

Male

%

11

89

Female

New Recruits by Region

Sri Lanka

Oman

India

Maldives

%

28

64

26

Our Team




Strategy 2019/20

0

1,000

2,000

3,000

4,000

2.5

2.8

3.0

3.5

3.9

20202019

Number Rs.Mn

Employees Value Addition

75

Adopted at Our

-

Learning and Development

L&D Top 1 L&D Top 2 L&D Top 3 L&D Top 4 L&D Top 5




Rs. 22.9 Mn (+49%)

(+4%)

(-20%)

Training Record

0

20,000

40,000

60,000

80,000

5

10

15

20

25

202020192018

Hours Rs.Mn

Total Training Hours

Investment in Training

77

Sri Lanka

A Diverse Workforce

Non-Executives

Executives

Managers & Above

Female Male

10

90

7

93

25

75

%


Turnover by Age

<35 Years

36-45 Years

46-55 Years

>56 Years

%

16

4 3

77

Turnover by Gender

Male

%

9

91

Female

Turnover by Region

Sri Lanka

Oman

India

Maldives

%

6 1

46

47


CAPITAL MANAGEMENTIntellectual Capital


hotel brands are also an important aspect of the Group’s intellectual capital.

-

Intellectual Capital


Group Support Services: Brands



Structured Training Programmes

Employees by Years of Service

5-10 Years

11-15 Years

16-20 Years

21-25 Years

Above 25 Years

%

5

51

10

26

8



Corporate Awards

Property & Brand


CAPITAL MANAGEMENTSocial and Relationship Capital


42

+850,000 3,623 800


Engaging Stakeholders

StakeholderUniverse

Customers

Interest)

Business Partners and

High Interest)

Regulators

Interest)

Interest)

Shareholders

Interest)

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

Employees

Stakeholder

61%



Customers

Guests by Source Markets

2019/202018/19

Western Europe

Eastern Europe

Americas

Sri Lankan

Asia/Middle East & Africa

Oceania

21

23

5 817

1217

22

3127

9

8

%

TM TM TM

Booking.com; Traveller Review Award for 14 HolidayCheck Award

Hotels.com; Loved by Guests Award for 5

- -


HERITANCE AHUNGALLA 91.6% GRITM

HERITANCE NEGOMBO 91.8% GRITM

Pleased guests!

HERITANCE KANDALAMA 92.3% GRITM

HERITANCE AARAH 96.7 GRITM

91% GRITM

ADAARAN PRESTIGE VADOO 96.60 GRITM

Ramesh A from



Measures and SOPs

Channel Partners


Suppliers



F & B Suppliers

Design Services

ITEquipment

Linen Suppliers

Furniture Suppliers

Chain

Local Community Purchasing:

Local Procurement and Indirect


Skill Development


CAPITAL MANAGEMENTNatural Capital


sustainable tourism and preserving the natural environment,

ee

Natural Capital

+4% -20%


Managing Environmental Impacts

Plan Do Check Act


3)

- -

- -

Total

0

200,000

400,000

600,000

800,000

1,000,000

800

820

840

860

880

900

202020192018

m3

Litersperguestnight

Total Water Consumption

Water Consumption Per Guest Night

0

80,000

160,000

240,000

320,000

400,000

200

250

300

350

400

450

202020192018

GJ

MJ perguestnight

Total Energy Consumption

Energy Consumption Per Guest Night


Reject

Reduce

Reuse

Reclaim

Replace

Repair



- - -

Carbon Footprint

e

Carbon Footprint

0

6,000

12,000

18,000

24,000

30,000

36,000

42,000

32

34

36

38

40

42

44

46

202020192018

GHG Emissions (Scope 1 & 2)

GHG Emissions/Guest Night


Reflec�ngour Principles

We’re geared to achieve a complete turnaround in performance, while mirroring the values upon which we are founded.

Governance


CORPORATE GOVERNANCE

The Board of

Directors

of the Board


Age

30-45 Years

46-65 Years

66-75 Years

>76 Years

4522

2211

%

Executive Directors

Non-Independent Non-Executive Directors

Independent Non-Executive Directors

45

22

33

%

0

10

20

30

40

50

%

Busin

ess L

eade

rshi

p

Acco

untin

g & Fi

nanc

e

Tour

ism

Inve

stm

ent &

Ban

king

Econ

omist

& Sc

ientis

t

Gender Diversity

Male

11

89

Female

%

Tenure of Service

0

5

10

15

20

25

30

35

%

< 5

Year

s

< 10

Year

s

< 15

Year

s

> 20

Year

s


Directors



Mr. C.H. Gomez



- - -- - - -- - - -- - -

- -- -

-- - - -

4



External Auditors

2019/20

Winner -

Governance Disclosures

Best Integrated Report - Hotels & Travel Sector -


168 (1) (a)

168 (1) (b)

168 (1) (c)

168 (1) (d)

168 (1) (e)

168 (1) (f)

168 (1) (g)

168 (1) (h)

168 (1) (i)

168 (1) (j)

168 (1) (k)

7.6 i)

7.6 ii)

7.6 iii)

7.6 iv)

7.6 v)



7.6 vi)

7.6 vii)

7.6 viii)

7.10.1(a)

7.10.2(a)

7.10.2(b)

7.10.3(a)


7.10.3(b)

7.10.3(c)

7.10.3(d)

7.10.5

7.10.5(a)

7.10.5(b)

7.10.5(c)

7.10.6

7.10.6(a)

7.10.6(b)



7.10.6(c)

9.3.2


AUDIT COMMITTEE REPORT

MEMBERS

60

40

Independent Non-Executive

Non-Independent Non-Executive

%

0

2

4

6

8

10

12

No. ofMeetings

A B C D E

A Mr. R.N. AsirwathamB Mr. G.C. WickremasingheC Mr. C.H. GomezD Mr. N.J. de Silva Deva Aditya/ Mr. A.L. Gooneratne (Alternate Director to Mr. N.J. de Silva Deva Aditya)E Mr. J.M.S. Brito (Appointed w.e.f. 23.05.2019)


of the Audit

AUDIT COMMITTEE REPORT


Re-Appointment of External Auditors - M/S KPMG, Chartered Accountants

R.N. Asirwatham


REMUNERATION COMMITTEE REPORT

MEMBERS

G.C. Wickremasinghe


NOMINATION COMMITTEE REPORT

MEMBERS

Directors

G.C. Wickremasinghe


COMMITTEE REPORT

MEMBERS

Related Party

0

1

2

3

4

No. of

A B C D E


R.N. Asirwatham


STATEMENT OF DIRECTORS’ RESPONSIBILITIES

Aitken Spence Corporate Finance (Private) Limited


ANNUAL REPORT OF THE BOARD OF DIRECTORS

4.4. Dividends


Date



Directors

9. Human Resources



Deshamanya D.H.S. Jayawardena

Dr. M.P. Dissanayake

Aitken Spence Corporate Finance (Private) Limited


THE BOARD OF DIRECTORS’ STATEMENT ON INTERNAL CONTROLS

Internal Audit

Policies, Procedures and Budgets Going Concern

Risk Management

Annual Report


Deshamanya D.H.S. Jayawardena

Dr. M.P. Dissanayake

R.N. Asirwatham

THE BOARD OF DIRECTORS’ STATEMENT ON INTERNAL CONTROLS


FINANCIAL CALENDAR

Interim Financial Statements Calendar - 2019/2020 (In terms of Rule 7.4 of the CSE)

Interim Financial Statements for the three months ended on 30th June 2019 Approved on 08th August 2019

Interim Financial Statements for the six months ended on 30th September 2019 Approved on 14th November 2019

Interim Financial Statements for the nine months ended on 31st December 2019 Approved on 10th February 2020

Interim Financial Statements for the twelve months ended on 31st March 2020 Approved on 21st May 2020

Audited Financial Statements Calendar

Audited Financial Statements for the year ended 31st March 2020 Approved on 29th May 2020

Interim Financial Statements Calendar - 2020/2021

Interim Financial Statements for the three months ended on 30th June 2020 1st week of August 2020

Interim Financial Statements for the six months ended on 30th September 2020 1st week of November 2020

Interim Financial Statements for the nine months ended on 31st December 2020 1st week of February 2021

Interim Financial Statements for the twelve months ended on 31st March 2021 4th week of May 2021

Highlights | Management Discussion & Analysis | Governance | Financial Reports 125

Independent Auditor’s Report 126

Primary Financial Statements

Notes to the Financial Statements

Notes to the Financial Statements - General

Notes to the Financial Statements - Income Statement

21 Intangible Assets 180

22 Investment in Subsidiaries 182

34 Reserves 194

204

Notes to the Financial Statements - Other Disclosures

44 Financial Instruments 209

INDEX TO THE FINANCIAL STATEMENTS


INDEPENDENT AUDITOR’S REPORT

management has described how they plan to deal with these events and

downside scenarios together with reasonably plausible changes to the


• Reading a sample of contracts to assess whether leases have been

The carrying amount of each investments in subsidiary and investments in

with indicators of impairment and determined their recoverable amounts based

business growth with reference to the internally and externally derived sources including Group budgetary process and reasonableness of historical


INDEPENDENT AUDITOR’S REPORT

other purposes and our knowledge of the business gained from other

instrument and details of the risk that is being hedged and the way in which

reclassifying gains and losses from reserves to the income statement and


Those charged with governance are responsible for overseeing the

Statements

in order to design audit procedures that are appropriate in the

We also provide those charged with governance with a statement

29th May 2020


STATEMENT OF PROFIT OR LOSS AND OTHER

Group Company

2020 2019 2020 2019

Notes Rs. ’000 Rs. ’000

Revenue 8

Revenue taxes

Net revenue

9

10

11

12

Finance income

Finance expense

13

23

14


Group Company

2020 2019 2020 2019

Notes Rs. ’000 Rs. ’000

accounted investees 23

Income tax on other comprehensive income

Net movement in fair value reserve 23

Total comprehensive income for the year net of tax


STATEMENT OF FINANCIAL POSITION

Group Company

As at

Notes Rs. ’000 Rs. ’000

18

19

20

Intangible assets 21

Investment in subsidiaries 22

23

24

Deferred tax assets

Inventories

Trade and other receivables

Amounts due from holding company 28

29

Deposits and prepayments

20

30

31

32

Total Assets

Stated capital 33

Reserves 34

Retained earnings


Group Company

As at

Notes Rs. ’000 Rs. ’000

38

39

Trade payables

40

Amounts due to holding company

41

31

29th May 2020


Grou

pSt

ated

Ca

pita

lGe

nera

lFa

ir Va

lue

Curre

ncy

Reta

ined

Tota

lNo

n -

Inte

rest

s

Tota

l

Note

s R

s. ’0

00

Rs.

’000

R

s. ’0

00

Rs.

’000

R

s. ’0

00 R

s. ’0

00 R

s. ’0

00 R

s. ’0

00 R

s. ’0

00 R

s. ’0

00

Balan

ce as

at 0

1st A

pril 2

018

net o

f tax

Rest

ated

bala

nce

as at

01s

t Apr

il 201

8

Tota

l com

preh

ensiv

e in

com

e fo

r the

year

subs

idiar

ies

Balan

ce as

at 3

1st M

arch

201

9

Rest

ated

bala

nce

as at

01s

t Apr

il 201

9

Tota

l com

preh

ensiv

e in

com

e fo

r the

year

subs

idiar

ies

Balan

ce as

at 3

1st M

arch

202

0


Com

pany

Stat

edCa

pita

lGe

nera

lRe

tain

edTo

tal

Note

s R

s. ’0

00

Rs.

’000

R

s. ’0

00

Rs.

’000

R

s. ’0

00

Balan

ce as

at 0

1st A

pril 2

018

Rest

ated

bala

nce

as at

01s

t Apr

il 201

8

Tota

l com

preh

ensiv

e in

com

e fo

r the

year

Balan

ce as

at 3

1st M

arch

201

9

Tota

l com

preh

ensiv

e in

com

e fo

r the

year

Balan

ce as

at 3

1st M

arch

202

0


STATEMENT OF CASH FLOWS

Group Company

2020 2019 2020 2019

Notes Rs. ’000 Rs. ’000

12

12

12

12

investees 12

12

Interest expense 13

Interest income 13

9

9

39

23

9

Interest expenses paid

39

Income taxes paid


Group Company

2020 2019 2020 2019

Notes Rs. ’000 Rs. ’000

Purchase of intangible assets 21Proceeds from disposal of investments

Interest received

Proceeds from long term bank borrowings

Dividend paid to shareholders of non controlling interest

Short term depositsShort term bank borrowings

31


NOTES TO THE FINANCIAL STATEMENTS

public limited liability company incorporated and domiciled

1.2. Consolidated Financial Statements

as at and for the year ended 31st March 2020 comprise

investment holding company and hoteliering and the subsidiary companies are also engaged in the business of hoteliering and auxiliary services and there has been no

2.1. Statement of compliance

2.2. Components of Financial Statements The consolidated Financial Statements include the following

in shareholders’ funds during the year under review for

for the year ended 31st March 2020 were approved and authorised for issue by the Board of Directors on 29th May

2.6. Basis of measurement

Item Basis of Measurement

Measured at cost at

revalued amounts which are the fair values at the

Financial assets

value through other comprehensive income

24

Measured at the present value of

39


using the currency of the primary economic environment

rounded to the nearest thousand except where otherwise

currency and items included in the Financial Statements of

Company Country of Currency

Maldives USD

Maldives USD

Maldives USD

Maldives USD

Aitken Spence Resorts Riyal

Aitken Spence Hotel India Indian Rupees

Aitken Spence Hotel Services India Indian Rupees

India Indian Rupees

India Indian Rupees

Company Country of Currency

Hongkong USD

IslandUSD

Aitken Spence Hotel USD

Aitken Spence Hotels USD

Aitken Spence Global USD

based on historical experience and various other factors

or circumstances arising that are beyond the control of the



Notes to the Financial Statements are presented in a

comparability of Financial Statements of the Group and the

2020 and rightly the stringent measures taken by the

temporary closure of all the Group’s hotels except the city

management considered a number of severe but plausible

businesses considering a wide range of factors such as


Goodwill disposed of in this circumstance is measured based

applicable to outside shareholders of subsidiary companies

The interest of the minority shareholders in the net assets

and therefore no goodwill is recognised as a result of such

has rights to variable returns from its involvement with the

with the investee

amount of the investor’s returns

consider the purpose and design of the investee in order

it may be clear that an investee is controlled by means of

circumstances in assessing whether it has power over an

*The contractual arrangement with the other vote holders of the investee

*Rights arising from other contractual arrangements

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to

control over the subsidiary and ceases when the Group

subsidiary of the company are also treated as subsidiaries of

when necessary to align them with the policies adopted by


Joint ventures are arrangements in which the Group

when there is contractually agreed sharing of control of the

the investment is increased or decreased to recognise the

received from an investee reduces the carrying amount of

interest in the investee arising from changes in investee’s

When the Group’s share of losses exceeds its interest in

venture the Group recognises its share of any changes when

venture and its carrying values and then recognises the

accounts for the investment in accordance with the Group’s

and fair value of the retained investment and proceeds from

gains and losses or income and expenses arising from

eliminated against the investment to the extent of the



are measured in terms of historical cost are translated using

currency using the exchange rate that was prevailing on the

following items are recognized in the other comprehensive

value through other comprehensive income

losses are reported on a net basis in the income

comprehensive income and presented in the foreign

Foreign exchange gains or losses arising from a monetary

the foreseeable future and which in substance is considered

are recognised in other comprehensive income in the foreign

when the Group becomes a party to the contractual

on the principal amount outstanding


whether management’s strategy focuses on earning

and

held for trading or are managed and whose performance is

Financial assets –Assessment whether contractual cash

money and for the credit risk associated with the principal

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount


Financial assets at

Financial assets at

foreign exchange gains and losses and




Debt investments at

losses and impairment are recognized

unless the dividend clearly represents a recovery of part of the cost of the

and gains and losses

Interest expense and foreign exchange gains and losses are

Financial assets

transferred or in which the Group neither transfers nor

Financial instruments and contract assets

The Group recognises allowances for expected credit losses

the Group’s historical experience and informed credit


the maximum contractual period over which the Group is

impaired’ when one or more events that have a detrimental

• a breach of contract such as a default or being more

• the restructuring of a loan or advance by the Group on

• it is probable that the borrower will enter bankruptcy or

cost are deducted from the gross carrying amount of the

asset is 180 days past due based on historical experience

Group individually makes an assessment with respect to the

year at the

The recoverable amount of an asset is the greater of its

are grouped together into the smallest group of assets that

An impairment loss is recognized if the carrying amount

that the asset’s carrying amount does not exceed the

gains and losses on either the hedged item or the hedging

period in order to record the economic substance of the



the nature of the risk being hedged and how the Group

and accounted for separately if the host contract is not a

changes in foreign exchange rates and interest rates and

hedges of foreign exchange risk on a net investment in a

If the hedge no longer meets the criteria for hedge

the hedging reserve and the cost of hedging reserve are

Dividends thereon are recognized as interest expense in

items and restoring the site on which they are located and

The Group recognizes land owned by them in the statement

would be determined using fair values at the end of each

comprehensive income except to the extent that the surplus


received to sell an asset or paid to transfer a liability in

is not taken into account in arriving at the gain or loss on

use and ceases at the earlier of the date that the asset is

of the lease term and their useful lives unless it is reasonable certain that Group will obtain ownership by the end of the

Policy applicable from 1 April 2019

a lease if the contract conveys the right to control the use

• As a lessee

leases of property the Group has elected not to separate



and remove the underlying asset or to restore the underlying

of the underlying asset to the Group by the end of the lease

the lease payments that are not paid at the commencement

The Group determines its incremental borrowing rate by

• variable lease payments that depend on an index or a

• amounts expected to be payable under a residual value

change in future lease payments arising from a change in an

the amount expected to be payable under a residual value

the lease payments associated with these leases as an

• As a lessor

the contract to each lease component on the basis of their

all of the risks and rewards incidental to ownership of

The Group recognises lease payments received under


Policy applicable before 1 April 2019

•

lower of its fair value and the present value of the minimum

The Group recognises intangible assets if it is probable that

The cost of an internally generated intangible asset arising

new technical knowledge and understanding is expensed in

The useful economic life of an intangible asset is assessed to

Goodwill is measured at cost less accumulated impairment

amount of goodwill is included in the carrying amount of

measured and it is probable that they will lead to future

it is probable that this expenditure will enable the asset to

assessed standards of performance and this expenditure can



Inventories are measured at the lower of cost and net

weighted average principle and includes expenditure

Trade and other receivables are stated at the amounts

are repayable on demand and form an integral part of the Group’s cash management are included as components of

income at fair value when there is a reasonable assurance that it will be received and the Group will comply with the


Grants that compensate the Group for expenses incurred are

compensate the Group for the cost of an asset is recognised

All Maldivian employees of the Group are members of the

statement in the periods during which services are rendered

Group companies in India contribute a sum of 12% of the

The Group recognizes all actuarial gains and losses arising

computed based on half month’s basic salary for each year

employee who has been in employment for less than one

A liability is provided for employees in India bsed on a

undiscounted basis and are expensed as the related service

as a result of past service rendered by the employee and the

Group revenue represents sales to customers outside the

determining whether how much and when revenue

Group revenue is recognise when a customer obtains control



o Apartment revenue is recognised for the rooms occupied

the customer and matched with the related expenditure where they simultaneously receive and consumes the

o Restaurant revenue includes the revenue recognized on

o Spa is operated by a third party and invoices are

earned from providing excursions to customers that represents sea plane and boat transfers services provided to customers who enter into contacts with

the services provided to customers which are implied

o Management fee represents the fees for managing

The Group has a customer loyalty program whereby

the points issued is deferred and recognised as revenue

extensive disclosure regarding the loyalty programme as the

• Rent and shop income represents the rental income

• Dividend income is recognised when the right to receive dividends is established which is generally when the

All expenditure incurred in the running of the business and

Finance income comprises interest income on funds

under fair value through other comprehensive income

Interest income is recognised as it accrues in income

Income tax expense comprises both current and deferred

except to the extent that it relates to items recognised

statement of comprehensive income or statement of

current and prior periods exceeds the amount due for those


Provision for current tax for companies incorporated in Sri

Provision for current tax for companies incorporated outside

Deferred tax is recognised in respect of temporary

Deferred tax is measured at the tax rates that are expected

A deferred tax asset is recognised for unused tax losses and

companies within the Group are disclosed separately as

companies in the Group have complied with the arm’s length

The Group presents basic and diluted earnings per share

shareholders of the company by the weighted average

average number of ordinary shares outstanding for the



about resources to be allocated to the segment and assess

The Group in the hospitality industry and cannot segment

The primary segment is considered to be the geographical segments based on the Group’s management and internal

Fair value is the price that would be received to sell an

If inputs used to measure the fair value of an asset or liability

same level of the fair value hierarchy as the lowest level

Fair values have been determined for measurement and

The fair value used by the Group in the measurement of

takes place either in the principal market for the asset or

advantageous market that is accessible by the Group for the

The fair value of an asset or a liability is measured using

observable inputs and minimising the use of unobservable

early adopted the new or amended standards in preparing

• increasing the prominence of stewardship in the


other comprehensive income should be recycled where

the standards and to clarify certain aspects of the term

primary users of general purpose Financial Statements make

The Group shall apply these amendments to business



Rs. ’000

Assets

Deferred tax assetsDeposits and prepaymentsTotal Assets

Retained earnings

As at 01st April 2019Rs ‘000



Soth

Asia

and

Mid

dle

East

Sect

or

Gro

up

Grou

p R

esor

ts &

Hote

ls O

ther

s To

tal

201

8/20

19

201

8/20

19

201

8/20

19

201

8/20

19

201

8/20

19

Rs.

’000

Rs.

’000

Rs.

’000

Rs.

’000

Rs.

’000

Geog

raph

ical s

egm

ent a

nalys

is of

Gro

up re

venu

e

Tota

l rev

enue

Fina

nce i

ncom

eFi

nanc

e cos

t

280

Geog

raph

ical s

egm

ent a

nalys

is of

Gro

up as

sets

and

Tota

l ass

ets

Tota

l

Net a

sset

s

Tota

l


Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Total Revenue

Revenue excluding intra group revenue

Net Revenue

Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Revenue from contracts with customers

Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Apartment

Restaurant

Bar

Spa related

420

Telephone 18

Management fees

Rent and shop income

Total



Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

is represented in the Apartment Revenue reported

segment is recognised on the rooms occupied on

Due within 30 days from the date of

Provision of food and beverages The following services are rendered under this Due within 30 days from the date of


and boat transfers are provided to customers to reach the Hotels and back as part of the contracts

provision of service and invoice to the customers

Due within 30 days from the date of

These services are provided to customers as they

Management fees

management services are mainly rendered



Group Company

As at

Rs. ’000 Rs. ’000

Trade receivables

Group Company

As at

Rs. ’000 Rs. ’000

in the contract liability balance at the beginning of the period

period


Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

932

Insurance claims received *

Sundry income

Total

Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Repairs and maintenance

Management fees

Total



Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Directors fees and emoluments 29

982

Fees paid to Auditors for non audit services 410

128

Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Finance income

Finance expenses

Net Finance expense


Group Company

Rs. ’000 Rs. ’000

Total Impact



Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

yearsWithholding tax on dividends paid by subsidiaries

Total

14.8.1 Group

2018/2019

Before Tax Taxexpense

Net of Tax 2019/2020 Taxexpense

Rs. ’000 Rs. ’000 Rs. ’000

or loss

Share of other comprehensive income of

or loss

Net movement in fair value reserve

Total


14.8.2 Company

2018/2019

Before Tax Taxexpense

Net of Tax 2019/2020 Taxexpense

Rs. ’000 Rs. ’000 Rs. ’000

or loss

Total

Group

Before Tax Tax

income

Net of Tax Before Tax Tax

income

Net of Tax



Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Income not liable for income tax

Aggregate disallowed expenses

Taxable Income

Income Tax charged at

499

years

Withholding tax on dividends paid by subsidiaries


Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Tax losses carried forward

Total

Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Tax losses brought forward

forward and tax losses arising during the year

Total



Group Company

2018/2019 2018/2019

Rs. Rs.

Amounts used as numerator

holders of the company

Number of ordinary shares used as the denominator

Weighted Avearge number of ordinary shares in issue

Company

2018/2019

Rs. ’000

Final Dividends declared and paid

Preference Dividend

Preference dividend paid

Final ordinary dividend paid

Final ordinary dividends proposed

Preference dividends proposed


17.1

G

roup

(Fre

ehold

) (F

reeh

old)

Plan

t M

achin

ery &

M

otor

Ve

hicles

Fu

rnitu

re

&

Cap

ital

Tota

l

Rs.

’000

Rs.

’000

Rs.

’000

Rs.

’000

Rs.

’000

Rs.

’000

Rs.

’000

Rs.

’000

Trans

fers

Disp

osals

Disp

osals

17.1

.1

17.1

.2

17.1

.4

17.1

.6

17.1

.7



17.2

Co

mpa

ny

(Fre

ehol

d)

(Fre

ehol

d)

Pla

nt

Mac

hine

ry &

M

otor

V

ehic

les

Fur

nitu

re

&

Tot

al

Rs.

’000

R

s. ’0

00

Rs.

’000

Rs.

’000

R

s. ’0

00

Rs.

’000

Rs.

’000

Disp

osal

s

Disp

osal

17.2

.1

17.2

.2


Com

pany

date

amou

ntas

at

surp

lus

amou

ntat

cost

Rs.

’000

Rs.

’000

"Her

itanc

e Ahu

ngall

a"

Mee

ralad

uwa I

sland

29A

2R 9

P

Beru

wala

Galle

Roa

d Ah

unga

lla

Aitk

en S

penc

e Ho

tel M

anag

emen

t

Tota

l



As atamount

Total

Group

As at

Rs. ’000

Total

The following commitments for capital expenditure approved by the Directors as at 31st March 2020 have not been provided for in

Group

As at

Rs. ’000

Approximate amount approved but not contracted for

Approximate amount contracted for but not accounted

Total


Group

As at Total

Rs. ’000 Rs. ’000

Balance as at 01st April 2019

Balance as at 31st March 2020


Balance as at 31 st March 2020

As at 31st March 2020

As at 31st March 2019



Group

As at

Rs. ’000

Balance as at 01 st April

Balance as at 31 st March



Group

As at

Rs. ’000






21.1 Group

As at Computer Total

Rs. ’000 Rs. ’000





21.1.1

21.1.2

Net carrying value of goodwill

The weighted average growth rate used is consistent with the forecast included in industry



21.2 Company

As at Computer Total

Rs. ’000




Impairment during the year


21.2.1

21.2.2


Country of Company Group

of Shares Rs. ’000

Hong Kong

Maldives

01

India

Maldives 01

Maldives 01

Maldives 01

01

01

01

Net carrying amount of investments in subsidiaries –



Country of Group

of Shares Rs. ’000

Maldives

MaldivesMaldivesIndia

India

Maldives

India

India


Name Principle place of

As at As at

49% 49%

40% 40%

Republic of Maldives South Asian Sector 40% 40%



Aitken Spence Hotel Management South India India South Asian Sector

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Revenue

Total comprehensive income

Net Assets



Group Company

Rs. ’000 Rs. ’000

Recognised in the income statement

comprehensive income

Group Company

As at

Notes Rs. ’000 Rs. ’000

at 31st March


Group Company

As at No. of Group No. of Company

Shares Rs. ’000 Shares Rs. ’000

Investments made during the year

Net book value as at 31st March

Group Company

As at No. of Group No. of Company

Shares Rs. ’000 Shares Rs. ’000

Investments made during the yearNet book value as at 31st March

impairment

Investments made during the yearNet book value as at 31st March



Name Principle place of Business /Group interest %

March 2020

Fair Value of

interest (if listed)

Rs.’000

Provides Management Services

Provides Human Resources to all overseas hotels

2018/2019 2018/2019 2018/2019

Rs. ’000 Rs. ’000 Rs. ’000

Revenue

Total comprehensive income

Net Assets

Groups interest in net assets of investee at the beginning of the yearInvestments made during the year

Group's interest in net assets of investee at the end of the year


Group Company

As at

Note Rs. ’000 Rs. ’000

Group Company

As at

Rs. ’000 Rs. ’000

Balance brought forward

Disposals

Balance carried forward

Group Company

As at

Rs. ’000 Rs. ’000

Secured redeemable debentures

Unsecured loans

unsecured loans



Group Company

As at

Rs. ’000 Rs. ’000


32


Group Company

As at

Rs. ’000 Rs. ’000


Net deferred tax assets


Balance as at Recognised Recognised in other

comprehensive income

Recognised Balance as at

Deferred Tax Asset

143


Net deferred tax assets

2018/2019

Balance as at 01.04.2018 in other

income

Balance as at

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Deferred Tax Asset


32

32

122

122

Net deferred tax assets 32



Group Company

As at

Rs. ’000 Rs. ’000

Food

Beverage

Maintenance

House keeping

Ayurveda Stocks

Total

Group Company

As at

Rs. ’000 Rs. ’000

Trade receivables

Provision for impairment

Non trade receivables

Taxes receivable

Total


Group Company

As at

Rs. ’000 Rs. ’000

Short term investments

Total

Group Company

As at

Rs. ’000 Rs. ’000

19

83

138 83

29

42 33

214

232 32

Total

Group Company

As at

Rs. ’000 Rs. ’000

Bank deposits

Total



Group Company

As at

Rs. ’000 Rs. ’000

Short term deposits less than 90 days

Group Company

As at

Rs. ’000 Rs. ’000

Company

As at

Rs. ’000

Issued during the year

Issued during the year

Total


Group Company

As at

Notes Rs. ’000 Rs. ’000

General reserve

Fair value reserve

Total


during the year

interest due to changes in % holding in subsidiaries

Movement in fair value reserve




Group Company

Rs. ’000 Rs. ’000

terms balance loan is repayable in 9

instalments commencing from January

Guarantee from Aitken Spence Hotel

mortgage over the Hotel property for

outstanding as at 31st March 2020 is



Group Company

Rs. ’000 Rs. ’000

instalments commencing from December

and indemnity from Aitken Spence Hotels

over sub lease of Adaaran Select Huduranfushi Resort has been provided


instalments commencing from November 2020 for which a mortgage over head lease of Aarah Island Resort and Meedhupparu Island Resort has been



Group Company

Rs. ’000 Rs. ’000

instalments commencing from November


instalments commencing from December

Peoples Bank

instalments commencing from August

n

instalments and one bullet payment

loan instalments will commence in July

loan

monthly instalments commencing from


Group Company

Rs. ’000 Rs. ’000

instalments commencing from November

Aarah Island Resort has been provided as

corporate guarantee from Aitken Spence



Group Company

As at

Rs. ’000 Rs. ’000



Interest accrued during the period

Interest capitalised during the period

Interest paid during the period

Total

Group Company

As at

Rs. ’000 Rs. ’000

United States dollars

Indian rupees

Total


Group Company

As at

Rs. ’000 Rs. ’000

Payable within one year

Payable between one and two years

Total

Group Company

As at

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Interest expense charged to income statement

Interest expense capitalised

Companyperiod as at

(No of years)

23

20

21

28



Group

2020

Group

2020

Group Company

As at

Rs. ’000 Rs. ’000


291


Group Company

As at

Rs. ’000 Rs. ’000


Balance as at 01st April

2019

Recognised Recognised in

Income

Recognised Balance as at 31 st March

2020


214

428

Total assets

2018/2019


2018 Other

Income

Balance as at

2019

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000


Total assets



2018/2019

Balance as at 31st March

2020

Recognised Recognised in

Income

Recognised in Balance as at 31st March

2019 Other

Income


2018

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

land

291


Total assets 291

291

Group Company

As at

Rs. ’000 Rs. ’000




Group Company

As at

Rs. ’000 Rs. ’000

Group Company

As at

Rs. ’000 Rs. ’000

Included in other comprehensive income



Group Company

As at

Rs. ’000 Rs. ’000

Interest cost

Group Company

As at

Rs. ’000 Rs. ’000

2018/2019

10%

2022

11%

2022

8%


2018/2019

* 20 years

* 30 years

* 40 years

* Above 40 years

income

increase Rs. ’000

employment

increase Rs. ’000

+1%

+1%



Group Company

As at

Rs. ’000 Rs. ’000

Within next 12 months 4009

4292

9.11

Group Company

As at

Rs. ’000 Rs. ’000

Accrued payables

Unclaimed dividends

Taxes and other miscellaneous payables and provisions

Total


Group Company

As at

Rs. ’000 Rs. ’000

211

893

48

30 108

134

29

Total

Company

As at

Rs. ’000

US Dollar

Indian Rupee

UK Pound



Financial Assets at Fair value

Financial Assets

cost

Financial Total

amount

Note

Financial assets

30Trade and other receivablesAmount due from holding company 28

2931

Trade payables 40

Amount due to holding company4131

Financial Assets Financial Assets

cost

Financial Total

amount

Note Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial assets

30Trade and other receivablesAmount due from holding company 28

2931

Trade payables 40



Financial Assets at Fair value

Financial Assets

cost

Financial Total

amount

Note

Financial assets

Trade and other receivablesAmount due from holding company 28

2931

Trade payables 40


Financial Assets Financial Assets

cost

Financial Total

amount

Note Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial Assets

Trade and other receivablesAmount due from holding company 28

2931

Trade payables 40




Financial Assets

Trade and other receivablesAmount due from holding company

Trade payables

Amount due to holding company

Group - 2018/19 Company - 2018/19

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial Assets

Trade and other receivablesAmount due from holding company

Trade payables



Financial Assets measured at fair value through other comprehensive income


Bank Deposits



Group Company

Total Total

Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Recurring fair value measurements

Assets for which fair values are disclosed

30


Group Company

Total Total

Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Assets measured at fair value

Assets for which fair values are disclosed

30

Freehold land

Group Company

As at

Rs. ’000 Rs. ’000


Shares disposed during the year




Assets

inputs

COVID - 19 impact

Market comparable method

price of a similar property within a reasonably recent period of

market price of similar assists

Price per perch of land would increase

There is no impact to the esitmated recoverable amount of the freehold land of the Group due to

No change to the agreed price due to

Assets COVID - 19 impact

The resultant increase in impairment provision in

unsecured loan as a result of

banks

leases

Assets

Not applicable


Group2020

% 2020

%

Financial Assets

3%

12% 48%

Bank deposits 1%

Trade and other receivables 22% 8%

Amount due from holding company 13% 2%

8% 8%

42%

Total credit exposure 100% 100%



Trade receivables

The Group’s maximum exposure to credit risk on trade receivables as at the year end based on the carrying value in the statement of

Group2020 2020

Note

Trade receivables

Total


Impairment losses

Group Company

Rs. ’000 Rs. ’000

The resultant increase in impairment provision in Trade receiivable as a result

Advances received

Group Company

Rs. ’000 Rs. ’000

Balance at the beginning of the year

Balance at the end of the year



Short term deposits

The Group’s maximum exposure to credit risk on term deposits as at the year end based on the carrying value in the statement of

Group % Company %

Rs. ’000 Rs. ’000

0%

100%

Total 100%

Group

AmountCurrent Non Current

demand

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Trade payables


Short term bank borrowings

Total


Company

AmountCurrent Non Current

demand

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Trade payables



Total



Group Company

Foreign currency denominated income

Foreign currency denominated expenses

Foreign currency denominated income

Foreign currency denominated expenses



Group Compnay

GPB OMR GPB


228

Trade payables


Hedged item –

Group Company

2020 2019 2020 2019

Rs. ’000 Rs. ’000

Balance at the beginning of the year

Balance at the end of the year



Financial Year 2019/20 Increase/ decrease

Group Company

Rs. ’000 Rs. ’000

+100

USD loans +10

+10

USD loans


Debt


Grou

pCo

mpan

y

Name

of th

e Rela

ted Pa

rtyVa

lueVa

lue

Rs

. ’000

Rs

. ’000

49.1.

1

Mark

et ter

ms

Mark

et ter

ms

Fees

paid

for s

ervice

s M

arket

terms

Mark

et ter

ms

49.1.

2

Subs

idiary

Man

agem

ent f

ees f

or m

anag

ing ov

ersea

s hot

elsPe

rcent

age o

f rev

enue

and

Subs

idiary

Man

agem

ent f

ees f

or m

anag

ing ov

ersea

s hot

elsPe

rcent

age o

f rev

enue

and

Mark

et ter

ms

Subs

idiary

Shor

t term

adva

nces

Shor

t term

Subs

idiary

Mark

et ter

ms

Intere

st on

adva

nces

Mark

et ter

ms

Subs

idiary

Shor

t term

adva

nces

Shor

t term

19

Subs

idiary

Shor

t term

adva

nces

Shor

t term

232



Gr

oup

Com

pany

Nam

e of t

he R

elate

d Pa

rtyVa

lueVa

lue

R

s. ’00

0 R

s. ’00

0

Ass

ocia

te

Shar

ehol

der l

oan

gran

ted

Mar

ket t

erm

s

Sale

of H

otel

Roo

ms

Mar

ket t

erm

s

Mar

ket t

erm

s 2

21

Mar

ket t

erm

s

Asso

ciate

Inte

rest

rece

ived

for s

hare

holde

r loa

nM

arke

t ter

ms

Sale

of H

otel

Roo

ms

Mar

ket t

erm

s

Mar

ket t

erm

s

unit

hand

ling

char

ges

Mar

ket t

erm

s 9

42

Purc

hase

of m

iner

al w

ater

Mar

ket t

erm

s

Asso

ciate

Man

agem

ent f

ees

for m

anag

ing

the

hote

lsPe

rcen

tage

of r

even

ue

unit

hand

ling

char

ges

Mar

ket t

erm

s

Mar

ket t

erm

s


Grou

pCo

mpa

ny

Nam

e of t

he R

elate

d Pa

rtyVa

lueVa

lue

R

s. ’00

0 R

s. ’00

0

49.1

.4Su

bsid

iary

of t

he

Sale

of H

otel

room

s in

the

ordi

nary

co

urse

of

busin

ess

Mar

ket t

erm

s

Purc

hase

of A

ir Ti

cket

s fo

r ov

erse

as

trav

elM

arke

t ter

ms

Subs

idiar

y of t

he

Purc

hase

of m

iner

al w

ater

Mar

ket t

erm

s

Subs

idiar

y of t

he

and A

nnua

l Re

ports

Mar

ket t

erm

s

Subs

idia

ry o

f the

Re

pairs

and

Mai

nten

ance

of H

otel

M

arke

t ter

ms

Subs

idiar

y of t

he

Purc

hase

of t

ea le

aves

Mar

ket t

erm

s

Subs

idiar

y of t

he

Mar

ket t

erm

s

Subs

idiar

y of t

he

Mar

ket t

erm

s 2

9

Subs

idiar

y of t

he

Purc

hase

of v

eget

able

sM

arke

t ter

ms

Subs

idiar

y of t

he

Mar

ket t

erm

s 1

34

Purc

hase

of

beve

rage

sM

arke

t ter

ms

Purc

hase

of

food

item

sM

arke

t ter

ms



Gr

oup

Com

pany

Nam

e of t

he R

elate

d Pa

rtyVa

lueVa

lue

Rs.

’000

Rs.

’000

Purc

hase

of m

ilk p

owde

rM

arke

t ter

ms

Purc

hase

of f

ood

item

sM

arke

t ter

ms

Mar

ket t

erm

s

Purc

hase

of b

ever

ages

Mar

ket t

erm

s

Purc

hase

of f

ood

item

sM

arke

t ter

ms

Purc

hase

of g

oods

Mar

ket t

erm

s 8

10

Prov

ision

of i

nsur

ance

ser

vice

sM

arke

t ter

ms

Prov

ision

of

vehi

cle

mai

nten

ance

se

rvic

esM

arke

t ter

ms

801

Purc

hase

of f

ood

item

sM

arke

t ter

ms

Purc

hase

of m

ilk p

rodu

cts

Mar

ket t

erm

s

Purc

hase

of p

orce

lain

item

sM

arke

t ter

ms

431

Purc

hase

of m

ilk p

rodu

cts

Mar

ket t

erm

s


Name of the Related Party

entered into during

ending 31st March 2020

Value of the related party

Value of the related party

of total Assets.

49.2.1

Aitken Spence Hotel Managements South India

Subsidiary 2% Market Terms

49.2.2

Associate Interest earned from shareholder loan years with grace

Name of the Related Party

entered into during

ending 31st March 2020

Value of the related of the related party

Subsidiary of Parent Sale of Hotel rooms in the ordinary course of business

Market Terms



Group Company

2018/2019 2018/2019

Rs. ’000 Rs. ’000

Total


31st March

For the three months ended 2019 2019 2019 2020

Rs. ’000 Rs. ’000 Rs. ’000

Net Turnover

Finance income Finance expenses

Income tax expense

31st March

As at 2019 2019 2019 2020

Rs. ’000 Rs. ’000 Rs. ’000

Assets Non current assets

Total assets

As at 31st March

2019 2019 2019 2020

Rs. ’000 Rs. ’000 Rs. ’000

Net asset value per share Market price per share

Percentage of shares held by public Number of public shareholders


CONSOLIDATED INCOME STATEMENTS IN US $

2020 2019

Revenue

Revenue tax

Net revenue

Finance income 983

Finance expenses

Income tax expenses

Non controlling interests


INCOME IN US $

2020 2019

accounted investees 28 1

90

Income tax on other comprehensive income

Total comprehensive income for the year net of tax


CONSOLIDATED STATEMENT OF FINANCIAL POSITION IN US $

2020 2019

Intangible assets

Deferred tax assets 914

Inventories


Amounts due from holding company

302

Stated capital

Reserves

Retained earnings


2020 2019

Trade payables

Amounts due to holding company

390 318



Reconsolida�ngour Strengths

We’re relying on our collec�ve strengths to amplify our capabili�es; genera�ng a future of powerful, impac�ul change.

241241Highlights | Management Discussion & Analysis | Governance | Financial Reports |

Shareholders Shareholders % No.of

ShareholdersNo.of

Shareholders %

312

Shareholding % %

Shareholding % Shareholding %

Individuals

2018/19 2017/18 2016/17


Year End

Financial Year Rs. Rs. Rs.

2018/19 2017/18 2016/17

Share Yield

Year Rs. %

Stated Capital

Rs. %

243243

%

Company 2020 2019

Highlights | Management Discussion & Analysis | Governance | Financial Reports |


2020 2019

Total

2020 2019

% No.of Shares %

1

2

3

4

8

9

10

11

12

13

14

18

19

20

245245

Year IssueShares

Private Placement

Rights Issue

Rights Issue

Rights Issue

Rights Issue

Rights Issue

Bonus Issue

Bonus Issue

Rights Issue

Total as at 31st March 2020

Year IssueShares

Total as at 31st March 2020



2020 2019 2018 2017 2016 2014 2012 2011

Revenue

the parent

Stated capital Reserves and retained earnings Shareholders’ funds

Intangible assets Investments

Deferred tax assets

Total Assets

247247

No of Rooms No of

Freehold Buildings

Heritance Ahungalla Ahungalla 3

Meeraladuwa Island

Heritance Kandalama Dambulla 3

Heritance Tea Factory 4

Heritance Ayurveda Beruwala 3

Beruwala

Beruwala

109 Kalutara 20 Turyaa Kalutara

90 Kalutara 3 Turyaa Kalutara

Ahungalla 11

122 Maldives 43

Adaaran Select Meedhupparu 231 Maldives 122 Heritance Aarah Maldives 244

Adaaran Select Hudhuran Fushi Maldives 210

Maldives

Raafushi Island Maldives Maldives

Aitken Spence Hotel Managements

140 1

3



HOTELS

249249

The holding company and managing agent of Jetan Travel Services



HOTELS

251251

CORPORATE INFORMATION

Name

Chairman

Chairman

Chairman

Chairman

Chairman

KPMG

People’s Bank

Union Bank

Deutsche Bank



Material Aspects

GRI Indicator

Disclosure

General Disclosures

Across the Region 3

About the Group 22

Nature of ownership and legal form

Markets served Across the Region 3

About the Group 22

8

34

130

Notes to the Financial Statement 232

Supply chain 88

supply chainManaging Director's Review 13

Risk Management 38

81

81

10

Risk Management 38

behaviour121

Mechanisms for advice and concerns about ethics 121

Governance structure 98

the Board100

environmental and social topics the Board100

environmental and social topicsInvestor Feedback Form

98

100

body113

Report114

253253

Material Aspects

GRI Indicator

Disclosure

values and strategy100

the Board100

Annual Report of the Board of Directors

and social impacts104

Risk Management 38

topicsRisk Management 38

Highest governance body's role in sustainability 104

Annual Report of the Board of Directors

Investor Feedback Form

Report114

112

112

112

Stakeholders84

Stakeholders84

Approach to stakeholder engagementStakeholders

84

Key topics and concerns raisedStakeholders

84

statementsGroup Structure 24

Material Topics

About This Report

About This Report

Date of the most recent report About This Report

About This Report

About This Report

Standards

GRI content index



Material Aspects

GRI Indicator

Disclosure

Management Approach

Material Topics

The Management Approach and its components Material Topics

Material Topics

Performance

Direct economic value generated and distributed Group Performance Highlights

29

204

Market Presence

compared to local minimum wage

local community 88

Indirect Infrastructure investments and services supported

88

Procurement 88

38

policies and proceduresRisk Management 38

takenSustainable Tourism Dashboard

Behaviour

Sustainable Tourism Dashboard

MaterialsMaterials used by weight or volume 92

93

93

93

Water withdrawal by source 93

of water93

Water recycled and reused 93

255255

Material Aspects

GRI Indicator

Disclosure

Biodiversity biodiversity value outside protected areas

services on biodiversity

Habitats protected or restored

9

Waste by type and disposal method

Recycling94

93

91

New employee hires and employee turnover

204

Management changes

Health and

Training and Average hours of training per year per employee

Programs for upgrading employee skills and

Percentage of employees receiving regular performance and career development reviews

Diversity Diversity of governance bodies and employees

99

women to men



Material Aspects

GRI Indicator

Disclosure

HUMAN RIGHTS

taken

Freedom of

Bargaining

may be at risk

incidents of child labour

Forced or incidents of forced or compulsory labour

Human Rights Assessment

procedures

impact assessments and development programs88

88

Supplier Social Assessment

New suppliers that were screened using social criteria

Health and

Assessment of the health and safety impacts of product and service categories

and safety impacts of products and services

and labeling

customer privacy and losses of customer data

Socioeconomic social and economic areaSustainable Tourism Dashboard

257257Highlights | Management Discussion & Analysis | Governance | Financial Reports |

A

which they are earned or incurred regardless of whether cash is

plan.

The carrying amount of the asset value which

applicable on loans and advances granted by commercial banks to

D

Financial contracts whose values are derived from the

The percentage of earnings paid to

Dividend per share as a percentage of the

ordinary shareholders divided by the weighted average number of

F The price that would be received to sell an asset

Financial instruments that are held for trading and measured at fair value through other comprehensive


G

I This occurs when recoverable amount of an asset is

KKMP are those persons having

M The number of ordinary shares in issue

N Shareholders’ funds divided by the number of

An entry that is generally found

P

Market price per share divided by

R

Reserves considered as being available for

S

T

The value is distributed among the stakeholders and the balance

W

259259

NOTES



Directors together with the Financial Statements for the year

Secretaries

29th May 2020

compliance with the Health and Safety guidelines issued by the

or audio visual means

to the circular to shareholders and forward same

reach the Registrars so that the

The circular to the shareholders will be posted to all the

The shareholders are hereby advised that if they wish to raise

on +94 11 2308099 or by post to the registered address of the not less than

This is in order to

261261



INSTRUCTIONS AS TO COMPLETION

or

263263


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