the lighthouse hotel plc company registration number - … · earnings per share for the 2.23 2.89...
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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
THE LIGHTHOUSE HOTEL PLC
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.
THE LIGHTHOUSE HOTEL PLC
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
THE LIGHTHOUSE HOTEL PLC
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
THE LIGHTHOUSE HOTEL PLC
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
to Statement of Profit or Loss in subsequent periods :
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
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/(Loss) for the period 137,454 137,268 102,601 95,610
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
to Statement of Profit or Loss in subsequent periods :
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
THE LIGHTHOUSE HOTEL PLC
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
THE LIGHTHOUSE HOTEL PLC
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
THE LIGHTHOUSE HOTEL PLC
Page 8 of 13
Unaudited Audited Unaudited Audited
12 months 12 months 12 months 12 months
ended ended ended ended
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)
THE LIGHTHOUSE HOTEL PLC
STATEMENT OF CASH FLOWS
COMPANYGROUP
Page 9 of 13
THE LIGHTHOUSE HOTEL PLC
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 LIGHTHOUSE HOTEL PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED 31 MARCH 2019
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
THE LIGHTHOUSE HOTEL PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED 31 MARCH 2019
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
THE LIGHTHOUSE HOTEL PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED 31 MARCH 2019
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