HUNAS FALLS HOTELS PLC

Company Registration Number PQ 72

Interim Report - 04th Quarter Year Ended 31st March 2013.

HUNAS FALLS HOTELS PLC

STATEMENT OF FINANCIAL POSITION

Unaudited As at 31.03.2013 Rs'000 ASSETS Non-Current Assets Property, Plant & Equipment CURRENT ASSETS Inventories Trade & Other receivables Prepayments Tax Recoverable Cash and Bank Balances

Audited as at 31.03.2012 Rs.'000

Audited as at 01.04.2011 Rs.'000

339,838

308,870

310,883

3,613 10,261 5,704 68 14,804 34,450 374,288

3,841 7,039 1,011 334 28,302 40,527 349,397

4,259 4,235 877 291 5,424 15,086 325,969

Total Assets EQUITY AND LIABILITIES Capital and Reserves Stated Capital Revaluation Reserves Retained Earnings Total Equity Non-Current Liabilities Deferred Tax Liability Employee Benefit Obligation Grant & Subsidies

82,500 38,310 197,402 318,212

82,500 36,957 178,504 297,961

82,500 36,957 164,540 283,997

26,012 2,378 1,062 29,452

25,203 2,816 1,244 29,263

24,547 3,012 1,426 28,985

Current Liabilities Trade and Other payables Non Refundable Deposits Income Tax payable Unclaimed Dividends Bank Overdraft

19,107 5,845 1,616 56 26,624

13,221 5,037 673 3,242 22,173 349,397 -

7,622 5,184 13 168 12,987 325,969 -

Total Equity and Liabilities

374,288 -

The Statement of Financial Position as at 31 st March 2013 and The Statement of Comprehensive Income, Statement of Changes in Equity and cash flow Statement for the year then ended are drawn up from the audited Financial Statements of the company,and they provide the information reguired 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.

Aruna Dikkumbura Finance Manager- Amaya Leisure PLC. The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board by ;

A.M. Pandithage Chairman 13th May, 2013. Colombo.

L.T. Samarawickrama Managing Director

HUNAS FALLS HOTELS PLC

STATEMENT OF COMPREHENSIVE INCOME

Unaudited year ended 31.03.13 Rs'000 Revenue Cost of Sales Gross Profit Other Income Marketing & Promotional Expenses Administrative Expenses Finance Cost Finance Income Profit before Tax Income Tax Expenses Net Profit for the year 137,958 (32,062) 105,896 4,720 (4,406) (84,420) (2) 2,796 24,584 (2,873) 21,711

Audited year ended 31.03.12 Rs'000 119,812 (32,003) 87,809 3,590 (3,144) (73,023) 1,128 16,360 (2,397) 13,963

Other comprehensive income Changes in revaluation surplus Other comprehensive income for the year, net of tax Total comprehensive income for the year, net of tax 1,353 1,353 23,064 13,963

Earnings per Share for the period - (Basic) Rs. Notes 1 Operating Profit /(Loss) is after charging following Depreciation 2 Stated Capital Issued & Fully Paid 5,625,000 Ordinary Shares

3.86

2.48

12,842

12,366

82,500

82,500

3 First time adoption of SLFRS These financial statements, for the year ended 31 March 2013, are the first the Company has prepared in accordance with SLFRS/LKAS. For periods up to and including the year ended 31 March 2012, the Company prepared its financial statements in accordance with Sri Lanka Accounting Standards (SLAS).

Accordingly, the Company has prepared financial statements which comply with SLFRS/LKAS applicable for periods ending on or after 31 March 2013, together with the comparative period data as at and for the year ended 31 March 2012,In preparing these financial statements, the Companys opening statement of financial position was prepared as at 1 April 2011, the Company's date of transition to SLFRS/LKAS. This note explains the principal adjustments made by the Company in restating its SLAS statement of financial position as at 1 April 2011 and its previously published SLAS financial statements as at and for the year ended 31 March 2012.

3.1 Notes to the Reconciliation of Equity as at 31 March 2011 and 31 March 2012 and Total Comprehensive Income for the Year Ended 31 March 2012

a. Property, Plant & Equipment were carried in the statement of financial position prepared in Accordance with Sri Lanka Accounting Standards on the basis of cost, on 01 April 2011 most except land. Land has been carried at fair value. b. Under SLAS, the Company has categorized Receivables, Advances and Prepayments as "Trade and Other Receivables". Under SLFRS, Prepayments do not fall within the definition of Financial Assets as defined in LKAS 39. Prepayments has therefore been disclosed separately in the Statement of Financial Position as such presentation would facilitate a better understanding of the entity's financial position. c. Under SLFRS 01, the Company has used Revaluation as Deemed Cost of Property, Plant and Equipment except Land based on the revaluation made on the date of transition d. Under SLFRS 01, the Company has used Revaluation as Deemed Cost of Property, Plant and Equipment based on the revaluation made on the date of transition to SLFRSs. Thereby, the resulting impact on deferred tax liability has been quantified and recognized as appropriately. e. Under SLAS, the Company has categorized Payables, and Non refundable deposits as "Trade and Other Payables". Under SLFRS, non refundable deposits do not fall within the definition of Financial Assets as defined in LKAS 39. Non refundable deposits have therefore been disclosed separately in the Statement of Financial Position as such presentation would facilitate a better understanding of the entity's financial position. f. The Deprecation effect an fair valuation of Plant and Equipment at the date of transition has been adjusted to the administration expenses of the assets have revalued and elected to regard those values as deemed cost

4 There has not been a significant changes in the nature of the contingent liabilities, which were disclosed in the Annual Report for the year ended 31.03.2013 5 Figures in brackets indicate deductions. 6 Where necessary, comparative figures have been re - classified to conform with the current period's presentation. 7 There are no distinguishable components to be identified as segments for the Company. 8 No Circumstances have arisen since the balance sheet date, which would require adjustments to or disclosure in the Financial Statements.

HUNAS FALLS HOTELS PLC

STATEMENT OF CHANGES IN EQUITY

Stated Capital Rs.'000 Balance as at 1st April 2011-Prior to remeasurement Adjustments on the Transition date Adjusted Balance as at 1st April 2011 Profit for the year Balance as at 31st March 2012 82,500 82,500 82,500

Capital Reserve Rs.'000 1,295 (1,295) -

Revaluation Reserve Rs.'000 36,957 36,957

Retained Earnings Rs.'000 (10,874) 175,415 164,541

Total Rs.'000 72,921 211,077 283,998 13,963 297,961

13,963
36,957 178,504

Revaluation Profit for the year Dividend for the year 2011/2012 Balance as at 31st March 2013 82,500 -

1,353 21,711 (2,813) 38,310 197,402

1,353 21,711 (2,813) 318,212 -

HUNAS FALLS HOTELS PLC

CASH FLOW STATEMENT

Audited year ended 31.03.13 Rs'000 Cash Flows From Operating Activities Profit Before Tax Adjustments for Depreciation (Profit)/Loss on Disposal of Property, Plant & Equipment Finance Cost Provision For Defined Benefit Plan Dividend Write Off Amortization of Grant Operating Profit before Working Capital Changes (Increase)/Decrease in Inventories (Increase)/Decrease in Trade & Other Receivables Increase/(Decrease) in Trade and other Payables Cash Generated from Operations Dividend paid Income Tax Paid Defined Benefit Plan Cost Paid net of transfers Net Cash flows From/ (Used in) Operating Activities Cash Flows from / (Used in) Investing Activities Finance Cost Acquisition of Property, Plant & Equipment Proceeds from sale of Property,Plant & Equipment Net Cash Flows (Used in) Investing Activities Cash Flows from / (Used in) financing Activities Loan Repayment Net Cash Flows from (Used in) Financing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at the beginning of the Year Cash and Cash Equivalents at the end of the period Analysis of Cash and Cash Equivalents at the end of the period Cash & Bank Balances Bank Over draft 24,584

Audited year ended 31.03.12 Rs'000 16,360

12,842 (193) 2 764 (182) 37,817 228 (7,649) 6,694 37,090 (2,756) (1,148) (1,202) 31,984

12,366 615 (168) (182) 28,991 418 (2,938) 5,520 31,991

(1,123) (810) 30,058

(2) (42,560) 322 (42,240)

(10,422) (10,422)

(10,256) 25,060 14,804

19,636 5,424 25,060

14,804 14,804

28,302 (3,242) 25,060

Hunas Falls Hotels PLC

3.1 RECONCILITION OF TOTAL COMPREHENSIVE INCOME FOR THE Y/E 31/03/2012 Year Ended 31 March
Note SLAS Rs'000 As at 31/03/2012 Remesurement Rs'000 SLFRS/LKAS Rs'000

Revenue Cost of Sales Gross Profit Other Income Marketing and Promotional Expenses Administrative Expenses Finance Cost Finance Income Profit before Tax Income Tax Expense Profit for the Year f

119,812 (32,003) 87,809 3,590 (3,144) (66,723) 1,128 22,660 (3,162) 19,498

(6,300) (6,300) 765 (5,535)

119,812 (32,003) 87,809 3,590 (3,144) (73,023) 1,128 16,360 (2,397) 13,963

Earnings Per Share

- Basic

3.47

2.48

Hunas Falls Hotels PLC

3.1 RECONCILITION OF EQUITY AS AT 31/03/2012 As at 31 March
As at 31/03/2012 Note SLAS Rs'000 ASSETS Non-Current Assets Property, Plant and Equipment Current Assets Inventories Trade Receivables Prepayments Tax Recoverable Cash and Bank Balances Total Assets b b 3,841 8,050 334 28,302 40,527 120,867 (1,011) 1,011 228,530 3,841 7,039 1,011 334 28,302 40,527 349,397 a 80,340 228,530 308,870 Remesurement Rs'000 SLFRS/LKAS Rs'000

EQUITY AND LIABILITIES Capital and Reserves Stated Capital Reserves Retained Earnings Revaluation reserves Total Equity Non-Current Liabilities Deferred Tax Liability Employee Benefit Liability Grants and Subsidies d 2,214 2,816 1,244 6,273 Current Liabilities Trade and Other Payables Non Refundable Deposits Income Tax Payable Bank Overdraft Total Equity and Liabilities e e 18,259 674 3,242 22,174 120,867 (5,037) 5,037 228,530 13,222 5,037 674 3,242 22,174 349,397 22,989 22,989 25,203 2,816 1,244 29,262 c c 82,500 1,295 8,624 92,419 (1,295) 169,880 36,957 205,541 82,500 178,504 36,957 297,960

Hunas Falls Hotels PLC

3.1 RECONCILITION OF EQUITY AS AT 01/04/2011 As at 01 April
As at 01/04/2011 Note SLAS Rs'000 Remesurement Rs'000 SLFRS/LKAS Rs'000

ASSETS Non-Current Assets Property, Plant and Equipment Current Assets Inventories Trade Receivables Prepayments Tax Recoverable Cash and Bank Balances Total Assets b b 4,259 5,112 291 5,424 15,086 91,139 (877) 877 234,830 4,259 4,235 877 291 5,424 15,086 325,969 a 76,053 234,830 310,883

EQUITY AND LIABILITIES Capital and Reserves Stated Capital Reserves Retained Earnings Re valuation Reserves Total Equity Non-Current Liabilities Deferred Tax Liability Employee Benefit Liability Grants and Subsidies d 793 3,012 1,426 5,231 Current Liabilities Trade and Other Payables Non Refundable Deposits Income Tax Payable Unclaimed Dividends Total Equity and Liabilities e e 12,807 13 168 12,987 91,139 (5,185) 5,185 234,830 7,622 5,185 13 168 12,987 325,969 23,754 23,754 24,547 3,012 1,426 28,985 c c 82,500 1,295 (10,875) 72,921 (1,295) 175,415 36,957 211,076 82,500 164,540 36,957 283,997

HUNAS FALLS HOTELS PLC

INVESTOR INFORMATION

Market Value of shares

31.03.2013 (Rs) 52.50 70.00 49.10

31.03.2012 (Rs) 59.60 90.00 54.00 .

Closing Highest Lowest

Ratios Net Assets per share 56.57 52.97

Share trading for the Period ended. Number of transactions Number of Share traded Value of Share traded(Rs)

658 1,081,151 68,929,881

535 247,944 19,569,194

FIRST TWENTY SHAREHOLDERS AS AT 31.03.2013

Name of the Shareholder 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Carbotels (Private) Limited Amaya Leisure PLC Jetwing Hotels Management Services (Pvt) Ltd Negombo Hotels Limited Blue Oceanic Beach Hotel (Pvt) Ltd Mr.W.A.D.U.C.Perera Mr.S.C.Ganegoda St.Andrews Hotel Limited Dee Investments (Pvt) Ltd N J Cooray (Builders) ( Pvt) Ltd Jet Travels (Private) Limited Yala Safari Beach Hotel (Private) Limited Mr. K.N.Karunaratne The Nuwara Eliya Hotels Company PLC Mr.B.M.T.Fernando Mr.N.J.H.M.Cooray Mr.D.F.G.Dalpethado & Mrs.H.A.K.D.Dalpethado Mr.B.Thiyagendran Mr.S.A.Obeyesekere Mr.M.Gokulanath TOTAL No.of Shares as at 31.03.2013 2,824,820 899,000 281,720 206,736 152,799 98,900 87,415 76,399 52,300 46,298 45,839 31,018 17,100 16,000 15,600 15,279 14,524 13,282 12,584 12,436 4,920,049 % 50.22 15.98 5.01 3.68 2.72 1.76 1.55 1.36 0.93 0.82 0.81 0.55 0.30 0.28 0.28 0.27 0.26 0.24 0.22 0.22 87.47

There were no non voting shares as at 31 st March 2013 The percentage of shares held by public as per Colombo Stock Exchange Rules as at 31 st March 2013 was 32.22%

Directors Shareholding as at 31.03.2013

Name of Director Mr.S.C.Ganegoda

Total

No. of Shares as at 31.03.13 87,415

87,415

HUNAS FALLS HOTELS PLC

CORPORATE INFORMATION

NAME OF COMPANY

Hunas Falls Hotels PLC Company Number PQ 72

LEGAL FORM

A Quoted Public Company With Limited Liability incorporated in Sri Lanka in 1989

BOARD OF DIRECTORS

A.M Pandithage V.K Wickremasinghe S.C Ganegoda L.T Samarawickrama S.J. Wijesinghe C.J.Wickramasinghe D.E.Silva S.B.Rangamuwa J.P.Van Twest B.C.S.A.P.Gooneratne

Chairman (Retired w.e.f. 25.06.2012)

SECRETARIES

Hayleys Group Services (Private) Limited 400, Deans Road Colombo 10 Phone: 2627650

AUDITORS

Messrs Ernst & Young Chartered Accountants 201,De Saram Place Colombo 10

HOTEL OPERATION & MARKETING

Amaya Leisure PLC Level 27, East Tower World Trade Centre Echelon Square Colombo 01. Phone: 4767800

BANKERS

Commercial Bank of Ceylon PLC Sampath Bank PLC

REGISTERED OFFICE

400, Deans Road, Colombo-10