GALADARI HOTELS (LANKA) PLC

INTERIM FINANCIAL STATEMENTS

For the 9 months ended 30th September 2016

GALADARI HOTELS (LANKA) PLC
STATEMENT OF FINANCIAL POSITION

As at 30th September 2016 2015 31.12.2015

Rs. Rs. Rs.
ASSETS
NON CURRENT ASSETS
Property, Plant & Equipment 6,571,300,216 6,995,815,791 6,709,871,078
Leasehold property 1,488,744,593 1,510,292,206 1,504,415,581
8,060,044,809 8,506,107,997 8,214,286,659
CURRENT ASSETS
Inventories 44,781,486 38,724,215 49,291,640
Trade and other receivables 236,792,296 225,344,292 199,272,755
Investments 1,735,069,246 1,273,389,696 1,356,393,880
Cash and cash equivalents 65,255,876 19,242,015 90,282,029
2,081,898,904 1,556,700,219 1,695,240,304
TOTAL ASSETS 10,141,943,713 10,062,808,216 9,909,526,963

EQUITY & LIABILITIES

CAPITAL & RESERVES
Stated capital 8,988,239,455 8,988,239,455 8,988,239,455
Revaluation reserve 8,735,564,242 8,949,310,018 8,735,564,242
AFS Reserve (4,152,313) 169,304 (814,554)
Reserve for replacement of furniture,
fittings and equipments 423,167,004 337,994,646 360,213,423
Accumulated losses (8,754,375,328) (9,222,954,021) (8,921,002,574)
TOTAL EQUITY 9,388,443,060 9,052,759,402 9,162,199,992

NON - CURRENT LIABILITIES

Deferred tax liabilities 143,333,705 400,678,242 143,333,705
Retirement benefit obligations 69,815,798 76,276,329 78,988,267
213,149,503 476,954,571 222,321,972
CURRENT LIABILITIES
Trade and other payables 343,158,782 297,788,638 343,316,130
Provisions 175,674,134 169,154,964 171,123,401
Current tax payables 21,518,234 16,632,430 10,565,468
Bank overdraft - 49,518,210 -
540,351,150 533,094,242 525,004,999
TOTAL LIABILITIES 753,500,653 1,010,048,814 747,326,971
TOTAL EQUITY & LIABILITIES 10,141,943,713 10,062,808,216 9,909,526,963

Net assets per share 18.75 18.08 18.29

The above figures are provisional and subject to audit.

These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

(Sgd.)
M.G.U.Perera
Financial Controller

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

(Sgd.) (Sgd.)
Dr. J. A. S. Felix L. R. De Silva
Director Director
10th November 2016
GALADARI HOTELS (LANKA) PLC
STATEMENT OF COMPREHENSIVE INCOME

3 months ended 3 months ended 9 months ended 9 months ended 12 months ended
30.09.16 30.09.15 30.09.16 30.09.15 31.12.'15
(Audited)
Rs. Rs. Rs. Rs. Rs.

Revenue 447,614,875 404,154,493 1,216,074,788 1,105,066,083 1,537,418,293

Cost of Sales (183,598,969) (165,679,981) (500,704,065) (458,515,094) (645,074,001)

Gross Profit 264,015,906 238,474,512 715,370,723 646,550,989 892,344,292

Other Income 874,478 295,246 2,133,810 1,571,562 6,312,430

Marketing Expenses (6,695,896) (6,361,111) (20,787,975) (21,571,043) (24,807,733)

Administrative Expenses (103,548,672) (97,319,040) (284,597,331) (278,625,123) (374,717,700)

Other Operating Expenses (80,308,085) (87,342,830) (245,404,725) (255,738,723) (338,631,195)

Results From Operating Activities 74,337,731 47,746,777 166,714,502 92,187,662 160,500,094

Finance Income 37,572,349 16,268,505 90,366,325 47,083,839 76,672,251

Profit Before Income Tax 111,910,080 64,015,282 257,080,827 139,271,501 237,172,345

Income Tax Expense (11,000,000) (11,050,287) (27,500,000) (23,455,242) (25,992,258)

Profit For The Period 100,910,080 52,964,995 229,580,827 115,816,259 211,180,087

Other Comprehensive income

Items that will never be reclassified to profit or loss

Change in revaluation surplus of Property, Plant & Equipment - - - - (242,892,927)

Remeasurements of Defined Benefit Liability - - - - 4,865,528

Related taxes - - - - 28,563,288

- - - - (209,464,111)

Items that are or may be reclassified to profit or loss

Net loss on re measuring Available For Sale Financial Assets (1,057,289) 684,131 (3,337,759) 169,304 (837,384)

Related taxes - - - - 111,075

(1,057,289) 684,131 (3,337,759) 169,304 (726,309)

Other comprehensive income for the period (1,057,289) 684,131 (3,337,759) 169,304 (210,190,420)

Total Comprehensive Income for the period 99,852,791 53,649,126 226,243,068 115,985,563 989,667

Basic Earnings Per Share 0.20 0.11 0.46 0.23 0.42

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

GALADARI HOTELS (LANKA) PLC
CASH FLOW STATEMENT

For the 9 months ended 30.09.2016 30.09.2015 31.12.2015

Rs. Rs. Rs.
Cash Flows From Operating Activities (Audited)

Profit before tax 257,080,827 139,271,501 237,172,345

Adjustments for
Allowance for impairment of Bad and doubtful debts 1,350,000 1,350,000 1,250,053
Reversal of Provision for Slow Moving Inventory - - (32,225)
Depreciation and amortisation 172,572,420 175,095,235 234,415,604
Provision for employee benefits 3,759,713 5,905,310 13,000,484
Provision for interest for litigation settlement 4,550,733 3,606,099 7,873,747
Interest Income (90,366,325) (45,392,178) (74,097,774)

Operating profit before working capital changes 348,947,368 279,835,967 419,582,234

Decrease / (Increase) in inventories 4,510,154 1,396,530 (9,138,670)
(Increase) /Decrease in Trade & Other Receivables (38,869,541) 24,733,351 45,655,415
(Decrease) / Increase in Trade & Other Payables (157,351) (43,826,823) 1,700,668

Cash Generated from operations 314,430,631 262,139,026 457,799,647

Gratuity paid (12,932,179) (3,487,495) (5,304,414)

Current taxes paid (16,547,235) (21,410,000) (28,910,000)
Net Cash generated from operating activities 284,951,217 237,241,530 423,585,233

Cash flows from Investing Activities

Acquisition of Property, Plant & Equipment (18,330,570) (64,779,582) (75,171,540)
Net investment of Treasury Bills and Reverse Repos (382,013,125) (316,055,581) (417,115,511)
Withdrawal of fixed deposits - - 16,960,813
Interest Received 90,366,325 45,392,178 74,097,774
Net Cash flows Used in Investing Activities (309,977,370) (335,442,985) (401,228,464)

Net (Decrease)/ Increase in Cash & Cash Equivalents (25,026,154) (98,201,455) 22,356,769

Cash & cash equivalents at the beginning of the period 90,282,029 67,925,260 67,925,260
Cash & cash equivalents at the end of the period ( Note 1) 65,255,876 (30,276,195) 90,282,029

Note 1
Cash in Hand 1,190,000 1,240,000 1,190,000
Cash at Bank 64,065,876 18,002,015 89,092,029
Bank Overdraft - (49,518,210) -
65,255,876 (30,276,195) 90,282,029

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

GALADARI HOTELS ( LANKA ) PLC
STATEMENT OF CHANGES IN EQUITY

Reserve for
replacement of
Furniture,
Stated Revaluation Fittings Available for sale Accumulated
Capital Reserve & Equipment Reserve Losses Total
Rs. Rs. Rs. Rs. Rs. Rs.

Balance as at 1st January 2015 8,988,239,455 8,949,310,018 282,582,248 (88,245) (9,283,357,882) 8,936,685,594

Profit for the period - - - - 115,816,259 115,816,259

Other comprehensive income

Net change in fair value of available for

sale financial assets - - - 257,549 - 257,549

Total comprehensive income for the year - - - 257,549 115,816,259 116,073,808

Transactions with owners of the company, recognized directly in equity

Provision for Reserve of Replacement of
Furniture Fittings & Equipment - - 57,724,860 - (57,724,860) -

Replacement of Furniture,
Fittings & Equipment - - (2,312,462) - 2,312,462 -

Total transactions with owners of the company - - 55,412,398 - (55,412,398) -

Balance as at 30th September 2015 8,988,239,455 8,949,310,018 337,994,646 169,304 (9,222,954,021) 9,052,759,402

Restated Balance as at 1st January 2015 8,988,239,455 8,949,310,018 282,582,248 (88,245) (9,058,833,151) 9,161,210,325

Profit for the year - - - - 211,180,087 211,180,087

Other comprehensive income

Surplus on Revaluation of Property,
Plant & Equipment - (242,892,927) - - - (242,892,927)
Deferred tax adjustment on revaluation 29,147,151 29,147,151

Net change in fair value of available for

sale financial assets - - - (837,384) - (837,384)

Acturial loss from valuation of employee benefits - - - - 4,865,527 4,865,527

Related Taxes 111,075 (583,862) (472,787)

Total comprehensive income for the year - (213,745,776) - (726,309) 215,461,752 989,667

Transactions with owners of the company, recognized directly in equity

Provision for Reserve of Replacement of - - 81,086,375 - (81,086,375) -

Furniture Fittings & Equipment

Replacement of Furniture, - - (3,455,200) - 3,455,200 -

Fittings & Equipment

Total transactions with owners of the company - - 77,631,175 - (77,631,175) -

Balance as at 31st December 2015 8,988,239,455 8,735,564,242 360,213,423 (814,554) (8,921,002,574) 9,162,199,992

Balance as at 1st January 2016 8,988,239,455 8,735,564,242 360,213,423 (814,554) (8,921,002,574) 9,162,199,992

Profit for the period - - - - 229,580,827 229,580,827

Other comprehensive income

Net change in fair value of available for
sale financial assets (3,337,759) (3,337,759)

Total comprehensive income for the year - 0 - (3,337,759) 229,580,827 226,243,068

Provision for Replacement of - - 65,439,697 - (65,439,697) -

Furniture Fittings & Equipment

Replacement of Furniture, - - (2,486,116) - 2,486,116 -

Fittings & Equipment
Balance as at 30th September 2016 8,988,239,455 8,735,564,242 423,167,004 (4,152,313) (8,754,375,328) 9,388,443,060

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

GALADARI HOTELS (LANKA) PLC
NOTES TO THE FINANCIAL STATEMENTS

1 Market Price of Share

30th September 2016 30th September 2015
Highest Market Value per Share Rs.11.90 (10.08.2016) Rs.13.60 (12.08.15)
Lowest Market Value per Share Rs.9.80 (08.07.2016) Rs.12.00 (30.09.15)
Closing Price Rs.10.70 (30.09.2016) Rs.12.00 (30.09.15)

2 The Interim Financial Statements of the Company has been prepared on the basis of the
same Accounting Policies and Methods applied for the year ended 31st December, 2015
and is in compliance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial
Reporting and the requirements of the Companies Act No 7 of 2007.

3 The presentation and classification of figures for the corresponding period of the previous
year have been amended, where relevant, to be comparable with those for the current period.

4 The number of shares included in the stated capital is 500,829,564.

5 There have been no material events subsequent to the Reporting Date, which require
disclosure in the Interim Financial Statements.

6 The Department of Inland Revenue had raised an assessment for additional income tax for the year of
assessment 2009/2010 amounting to Rs. 575 Million. The Company had lodged an appeal against the
assessment.

On 14th July 2014 the appeal for the assessment, was determined by the Commissioner General of Inland
Revenue against the Company.

Galadari Hotel decided to make an appeal to the Tax Appeals Commission and made the appeal on 25th
September 2014. On 18th October 2016 the case was determined in favour of the Company and no
additional tax to be paid to the Department of Inland Revenue.

There have been no significant Contingent Assets or Contingent Liabilities as at the Reporting Date other
than disclosed above which require disclosures in the Interim Financial Statements.

7 There are no funds raised through an IPO/Rights/Debenture issue.

8 There is no liablity to management fees or any other similar expenditure which has not been provided
for in the Interim Financial Statements.
GALADARI HOTELS (LANKA) PLC
NOTES TO THE FINANCIAL STATEMENTS

9 Major Shareholders as at 30th September 2016

Name of Shareholder No of Shares % holding

Galadari Brothers Co. (LLC) 318,395,504 63.57
Iceberg 2 Limited 29,510,817 5.89
Employees Provident Fund 23,712,200 4.73
Calgary Holdings S.A 18,146,303 3.62
Pershing LLC S/A Averbach Grauson & Co. 14,486,665 2.89
M. A. I. Galadari 9,810,017 1.96
I.A.L.I. Galadari 9,810,017 1.96
Suhail Abdul Latif Ebrahim Galadari 9,810,016 1.96
Sabah Abdul Rahim Galadari 8,865,064 1.77
Suaad Abdul Rahim Galadari 8,865,064 1.77
Samia Abdul Rahim Galadari 8,865,064 1.77
Dubai Bank Limited 6,760,390 1.35
Z.A.I. Galadari 4,905,000 0.98
S.A I.Galadari 4,905,000 0.98
F. E. Abdul Qader 3,166,094 0.63
F. N. M. Alam Khan 2,802,861 0.56
J Rudra 799,500 0.16
Mrs. N. H. Abdul Husein 496,000 0.10
S. Subramaniam 344,200 0.07
M. H. Haniffa 309,818 0.06

10 Public holding percentage

(ii) The percentage of Shares held by the Public as at 30th September, 2016 -12.57% in the hands of
11,135 Public Shareholders.

11 Directors' Shareholdings

Name 30.09.2016 30.09.2015

A S B M Belyoahah - -
M Y Kazi Meeran - -
Mr L R De Silva - -
Mr S M H A Khooray - -
Dr J A S Felix - -
Mr M H A W Al Garf - -
Mr. M Bhat - -