JOHN KEELLS HOTELS PLC

Interim Report
Nine months ended 31st December 2012

Contents
Consolidated Statement of Financial Position Consolidated Income Statement Consolidated Statement of Comprehensive Income Statement of Changes in Equity - Group Consolidated Statement of Cash Flows Company Statement of Financial Position Company Income Statement Company Statement of Comprehensive Income Company Statement of Cash Flows Statement of Changes in Equity - Company Operating Segments Notes To The Financial Statements Notes 1 2 3 4 5 6 7 8 9 10 11 12 28

Consolidated Statement of Financial Position

As at 31st December
Assets Non-current assets Property, plant and equipment Lease rentals paid in advance Intangible assets Other non-current financial assets Deferred tax assets Other non-current assets Current assets Inventories Trade and other receivables Other current assets Amounts due from related parties Tax recoverables Other investments Cash in hand and at bank Total assets Equity and liabilities Equity attributable to equity holders of the parent Stated capital Revenue reserves Other components of equity Non-controlling interests Total equity Non-current liabilities Interest bearing borrowings Deferred tax liabilities Retirement benefit liability Other deferred liabilities Other non-current liabilities Current liabilities Trade and other payables Other current liabilities Amounts due to related parties Income tax liabilities Current portion of interest bearing borrowings Bank overdrafts Total equity and liabilities Net assets per share Note: All values are in rupees thousands, unless stated otherwise. The above figures are subject to audit. I certify that the financial statements comply with the requirements of the Companies Act No. 07 of 2007.

2012

2011

As at 31st March 2012

As at 31st March 2011

11,403,498 8,835,891 670,407 25,063 85,527 21,020,386 200,769 889,369 508,880 152,247 13,914 185,817 361,972 2,312,968 23,333,354

8,892,493 8,486,512 670,407 25,063 44,461 18,118,936 171,757 741,152 395,282 167,470 20,258 295,000 508,923 2,299,842 20,418,778

9,918,258 9,386,494 670,407 25,063 34,143 20,034,365 171,481 820,522 424,746 199,870 21,695 1,140,134 547,136 3,325,584 23,359,949

6,585,581 8,605,476 670,407 25,063 37,978 9,073 15,933,578 118,541 804,178 499,001 183,568 33,232 10,938 314,429 1,963,887 17,897,465

9,500,247 2,424,175 1,779,918 13,704,340 65,714 13,770,054 5,427,980 49,243 90,469 1,679 83,386 5,652,757 771,580 603,822 130,416 199,766 1,241,169 963,790 3,910,543 23,333,354
Rs. 9.41

9,500,247 1,784,422 956,246 12,240,915 64,210 12,305,125 4,799,101 39,759 83,761 2,004 50,498 4,975,123 492,280 524,059 123,937 85,230 730,587 1,182,437 3,138,530 20,418,778 Rs. 8.41

9,500,247 2,482,461 1,791,313 13,774,021 67,725 13,841,746 5,809,814 49,337 84,677 1,923 57,392 6,003,143 826,718 299,271 120,722 250,185 1,005,220 1,012,944 3,515,060 23,359,949
Rs. 9.46

9,500,247 1,379,022 761,197 11,640,466 63,689 11,704,155 2,615,273 34,987 78,713 2,248 47,399 2,778,620 449,338 151,168 120,068 82,500 821,440 1,790,176 3,414,690 17,897,465 Rs. 7.99

D.A.R.C. Perera Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of these financial statements.

A. D. Gunewardene Director 22nd January 2013

J. R. F. Peiris Director

Interim Financial Statements

Consolidated Income Statement

Quarter ended 31st December 2012 2011 % change Revenue Cost of sales Gross profit Other operating income Administrative expenses Distribution expenses Other operating expenses Results from operating activities Finance costs Finance income Net finance costs Profit before tax Income tax expense Profit for the period Attributable to: Equity holders of the parent Non-controlling interests Nine months ended Year Ended 31st December 31.03.2012 2012 2011 % change

2,488,596 1,956,298 (767,653) (621,907) 1,720,943 1,334,391 25,926 27,785 (872,150) (611,558) (121,705) (87,169) (321,627) (255,509) 431,387 (165,022) 5,383 (159,639) 271,748 (48,850) 222,898
407,940 (61,649) (3,297) (64,946) 342,994 (56,032) 286,962

27 (23) 29 (7) (43) (40) (26) 6 (168) (263) (146) (21) 13 (22)

6,199,316 4,748,138 (2,060,819) (1,607,282) 4,138,497 3,140,856 84,330 69,644 (2,333,883) (1,664,748) (284,696) (204,547) (883,775) (672,191) 720,473 (357,183) 25,901 (331,282) 389,191 (11,774) 377,417
669,014 (189,006) 9,699 (179,307) 489,707 (82,007) 407,700

31 7,388,158 (28) (2,310,988) 32 5,077,170 21 116,162 (40) (2,291,066) (39) (311,162) (31) (977,290) 8 (89) 167 85 (21) 86 (7)

1,613,814 (264,628) 26,968 (237,660) 1,376,154 (265,354) 1,110,800

222,373 525 222,898

Rs. 0.15

285,963 999 286,962 Rs. 0.20

(22) (47) (22)

379,218 (1,801) 377,417

Rs. 0.26

407,179 521 407,700 Rs. 0.28

(7) 446 (7)

1,105,271 5,529 1,110,800

Rs. 0.76

Earnings per share

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions.

John Keells Hotels PLC

Consolidated Statement of Comprehensive Income

Nine months ended 31st December Year Ended 31.03.2012 2012 2011 % change
Profit for the period Other comprehensive income Exchange differences on translation of foreign operations Other comprehensive income for the period, net of tax Total comprehensive income for the period, net of tax Attributable to: Equity holders of the parent Non-controlling interests

377,417 (11,395) (11,395) 366,022 367,823 (1,801) 366,022

407,700 195,049 195,049 602,749 602,228 521 602,749

(7) 106 106 (39) (39) 446 (39)

1,110,800 1,030,116 1,030,116 2,140,916 2,135,387 5,529 2,140,916

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions.

Interim Financial Statements

4
Attributable to Equity Holders of the Parent Stated Revaluation Exchange Capital Reserve Equalisation Reserve Revenue Reserves Total Noncontrolling Interest Total Equity

Statement of Changes in Equity - Group

John Keells Hotels PLC

Balance as at 1st April 2011 Profit for the period Other comprehensive income Total comprehensive income Direct cost on share issue Balance as at 31st December 2011 9,500,247 9,500,247 9,500,247 675,688 675,688 675,688 1,115,625 (11,395) 1,104,230 1,104,230 2,482,461 13,774,021 379,218 379,218 (11,395) 2,861,679 14,141,844 (436,844) (436,844) (660) (660) 2,424,175 13,704,340

9,500,247 9,500,247 9,500,247

675,688 675,688 675,688

85,509 195,049 280,558 280,558

1,379,022 11,640,466 407,179 407,179 195,049 1,786,201 12,242,694 (1,779) (1,779) 1,784,422 12,240,915

63,689 521 64,210 64,210

11,704,155 407,700 195,049 12,306,904 (1,779) 12,305,125 67,725 13,841,746 (1,801) 377,417 (11,395) 65,924 14,207,768 (436,844) (660) (210) (210) 65,714 13,770,054

Balance as at 1st April 2012 Profit for the period Other comprehensive income Total comprehensive income Final dividend paid - 2011/12 Direct cost on share issue Dividend paid to minority share holders Balance as at 31st December 2012

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions.

Consolidated Statement of Cash Flows

Nine months ended 31st December
Cash flows from operating activities Profit before tax Adjustments for Depreciation Provision for retirement benefit costs Amortisation of leasehold properties Finance costs Amortisation of grant received Loss/(profit) on disposal of property, plant and equipment Finance income Provision for deferred liabilities Operating profit before working capital changes (Increase)/decrease in inventories (Increase)/decrease in trade and other receivables (Increase)/decrease in other current assets (Increase)/decrease in amounts due from related parties Increase/(decrease) in amounts due to related parties Increase/(decrease) in other current liabilities Increase/(decrease) in trade and other payables Cash generated from/(used in) operations Finance costs paid Income tax paid Finance income received Payment of retirement benefit costs Net cash from/(used in) operating activities Cash flows from/(used in) investing activities Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment Net cash flows from/(used in) investing activities Cash flows from/(used in) financing activities Direct cost on share issue Long term interest bearing borrowings Dividend paid to equity holders of parent Repayment of long term interest bearing borrowings Proceeds/repayment of short term borrowings Dividend paid to minority share holders 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 period Cash and cash equivalents at the end of the period ANALYSIS OF CASH AND CASH EQUIVALENTS Other investments Cash in hand and at bank Bank overdraft

2012 389,191 444,750 10,688 503,181 357,183 (244) 10,958 (25,901) 25,994 1,715,800 (29,288) (10,506) (105,241) 47,623 9,694 311,059 (61,646) 1,877,495 (357,183) (105,890) 25,901 (4,896) 1,435,427 (1,991,273) 4,934 (1,986,339) (660) 648,804 (436,844) (750,505) (210) (539,415) (1,090,327) 674,326 (416,001) 185,817 361,972 (963,790) (416,001)

2011
489,707 333,732 10,749 377,406 189,006 (244) 13,611 (9,699) 3,099 1,407,367 (53,216) 54,986 103,718 16,098 3,869 372,891 42,941 1,948,655 (189,006) (68,014) 9,699 (5,701) 1,695,633 (2,603,172) 11,489 (2,591,683) (1,779) 2,855,456 (758,373) (112,959) 1,982,345 1,086,295 (1,464,809) (378,514) 295,000 508,923 (1,182,437) (378,514)

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions.
Interim Financial Statements

Company Statement of Financial Position

As at 31st December
Assets Non-current assets Investments in subsidiaries and joint ventures Other non-current financial assets Other non-current assets

2012

2011

As at 31st Mar-12

As at 31st Mar-11

9,456,741 13 9,456,754 3,751 12,391 605,900 3,001 6,289 631,332 10,088,086

9,317,661 13 9,054 9,326,728

9,328,573 13 9,328,586 1,706 8,747 459,500 500,000 4,266 974,219 10,302,805

9,301,873 13 8,630 9,310,516

Current assets Other current assets Amounts due from related parties Loans given to related parties Tax recoverables Other investments Cash in hand and at bank Total assets Equity and liabilities Equity attributable to equity holders of the parent Stated capital Revenue reserves Total equity Current liabilities Trade and other payables Amounts due to related parties Income tax liabilities Bank overdrafts Total equity and liabilities

1,590 11,755 470,650 100,000 43,301 627,296 9,954,024

13,362 12,398 643,146 6,407 1,403 676,716 9,987,232

9,500,247 384,419 9,884,666 12,883 1,459 5,943 183,135 203,420 10,088,086

Rs. 6.79

9,500,247 437,232 9,937,479

9,500,247 786,927 10,287,174 9,719 1,749 4,163 15,631 10,302,805

Rs. 7.06

9,500,247 421,872 9,922,119

13,660 859 2,026 16,545 9,954,024 Rs. 6.82

14,060 547 50,506 65,113 9,987,232 Rs. 6.81

Net assets per share

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. I certify that the financial statements comply with the requirements of the Companies Act No. 07 of 2007.

D.A.R.C. Perera Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of these financial statements.

A. D. Gunewardene Director 22nd January 2013

J. R. F. Peiris Director

John Keells Hotels PLC

Company Income Statement

Quarter ended 31st December 2012 2011 % Change Nine months ended 31st December 2012 2011 % Change Year Ended 31.03.2012

Revenue Cost of sales Gross profit Dividend income Other operating income Administrative expenses Other operating expenses Results from operating activities Finance costs Finance income Net finance / income Profit before tax Income tax expense Profit for the period

342,010 (23,910) (193) 317,907 (6,559) 62,650 56,091 373,998 (8,943) 365,055

(6,493) (36) (6,529) (1,121) 17,948 16,827 10,298 (2,883) 7,415

(4,946) (9) (4,955) (2,040) 15,188 13,148 8,193 (2,295) 5,898

31 300 32 (45) 18 26 26 26

12,713 (25,890) (440) (13,617) (1,121) 57,483 56,362 42,745 (8,409) 34,336

(18,268) (135) (18,403) (6,558) 46,295 39,737 21,334 (5,974) 15,360

(42) (226) (26) 83 24 42 100 (41) 124

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions.

Interim Financial Statements

Company Statement of Comprehensive Income

Nine months ended 31st December Year Ended 31.03.2012 2012 2011 % change
Profit for the period Other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the period, net of tax

34,336 34,336

15,360 15,360

124 124

365,055 365,055

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions.

John Keells Hotels PLC

Company Statement of Cash Flows

Nine months ended 31st December
Cash flows from operating activities Profit before tax Adjustments for Finance costs Dividend received Finance income Charge / (reversal) of impairment Operating loss before working capital changes (Increase)/decrease in other current assets (Increase)/decrease in amounts due from related parties (Increase)/decrease in amounts due to related parties (Increase)/decrease in trade and other payables Cash generated from/(used in) operations Finance cost paid Income tax paid Finance income Dividend Received Net cash from/(used in) operating activities Cash flows from/(used in) investing activities Investments in subsidiaries Net cash flows from/(used in) investing activities Cash flows from/(used in) financing activities Loans given to related parties Dividend paid 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 period Cash and cash equivalents at the end of the period ANALYSIS OF CASH & CASH EQUIVALENTS Other investments Cash in hand and at bank Bank overdrafts

2012

2011

42,745

21,334

1,121 (12,713) (57,483) 3,832 (22,498) (2,045) (3,644) (290) 3,164 (25,313) (1,121) (6,629) 57,483 12,713 37,133

6,558 (46,295) (18,403) 10,972 643 312 400 (6,076) (6,558) (48,047) 46,295 (14,386)

(132,000) (132,000)

(15,788) (15,788)

(146,400) (436,844) (583,244) (678,111) 504,266 (173,845)

172,072 172,072 141,898 1,403 143,301

3,001 6,289 (183,135) (173,845)

100,000 43,301 143,301

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions.

Interim Financial Statements

Statement of Changes in Equity - Company

Stated Capital Revenue Reserves Total Equity

Balance as at 1st April 2011 Profit for the period Other comprehensive income Total comprehensive income Balance as at 31st December 2011 Balance as at 1st April 2012 Profit for the period Other comprehensive income Total comprehensive income Final dividend paid - 2011/12 Balance as at 31st December 2012 Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions.

9,500,247 9,500,247 9,500,247 9,500,247 9,500,247 9,500,247

421,872 15,360 437,232 437,232 786,927 34,336 821,263 (436,844) 384,419

9,922,119 15,360 9,937,479 9,937,479 10,287,174 34,336 10,321,510 (436,844) 9,884,666

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John Keells Hotels PLC

The following tables present revenue, profit information and segment assets regarding the Groups operating segments.

Nine months ended 31st December 2,425,152 (6,204) 2,418,948

1,738,435 (9,485) 1,728,950 152,526 9,648 (39,288) 9,665 132,551 (28,920) 103,631 8,726,286 11,832,554 11,022,726 3,019,188 3,019,188 447,856 59,996 (149,718) 34 358,168 (53,087) 305,081 (1,012) (1,012) (1,012) (641)

Sri Lanka 2012 2011 2012 968 968 968 636,143 84,330 (357,183) 25,901 389,191 (11,774) 377,417 22,662,947 670,407 23,333,354 110

Maldives 2012 2011 2011 6,205,520 (6,204) 6,199,316

4,757,623 (9,485) 4,748,138 599,370 69,644 (189,006) 9,699 489,707 (82,007) 407,700 19,748,371 670,407 20,418,778

Others

Group Total 2012 2011

Operating Segments

Total Revenue Less: inter segment revenue Segment revenue

3,780,368 3,780,368 547,908 73,336 (113,094) 10 508,160 (14,574) 493,586

Segment operating profit/(loss) Other operating income Finance costs Finance income Profit/(loss) before taxation Taxation Profit/(loss) for the period

87,267 10,994 (244,089) 25,891 (119,937) 2,800 (117,137) 10,830,393

Assets Segment assets Goodwill Total assets

Liabilities Segment liabilities Total liabilities

5,598,350
3,472,256 4,691,397

3,964,950

9,563,300 9,563,300 -

8,163,763 8,163,763

Others Purchase of property, plant and equipment

1,767,630
2,537,169 150,689 2,555 10,749

223,643 162,382 500,551 -

66,003 183,043 374,851 -

1,991,273 1,991,273 -

2,603,172 2,603,172

Depreciation

282,368 2,630 10,688

444,750 444,750 503,181 503,181 10,688 10,688

333,732 333,732 377,406 377,406 10,749 10,749

Amortisation of leasehold properties

Interim Financial Statements

Provision for retirement benefit costs

11

Note: All values are in rupees thousands, unless otherwise stated. The above figures are subject to audit. Figures in brackets indicate deductions. In addition to Segment revenue/segment result, other segment data is disclosed for better presentation

Notes to the Financial Statements

1 CORPORATE INFORMATION John Keells Hotels PLC, is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The registered office and the principal place of business of the Company is located at 130, Glennie Street, Colombo 02.

INTERIM CONDENSED FINANCIAL STATEMENTS The financial statements for the period ended 31 December 2012, includes the Company referring to John Keells Hotels PLC, as the holding company and the Group referring to the companies whose accounts have been consolidated therein.

APPROVAL OF FINANCIAL STATEMENTS The interim condensed financial statements of the Group and the Company for the 9 months ended 31 December 2012 were authorised for issue by the Board of Directors on 22nd January 2013.

BASIS OF PREPARATION The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard (SLAS) LKAS 34 - Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2012, including the changes to the accounting policies as given in Note 6 to the financial statements. For all periods up to and including the year ended 31 March 2012, the group prepared its financial statements in accordance with SLAS which were effective up to 31 December 2011. The financial statements for the quarter ended 30 September 2012 are the first financial statements prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS/LKAS) immediately effective from 1 January 2012. These SLFRS/LKASs have materially converged with the International Financial Reporting Standards (SLFRS) as issued by the International Accounting Standards Board (IASB). The effect of the transition to SLFRS/LKAS on previously reported financial positions, financial performances and cash flows of the Group is given Note 9 to the financial statements. The interim condensed financial statements have been prepared on a historical cost basis, except for investment properties, land and buildings and certain financial instruments. The interim condensed financial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand except when otherwise indicated.

BASIS OF CONSOLIDATION The interim condensed consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at each balance sheet date. Effective from 1st April 2012 the basis of consolidation will include the following changes;

5.1 Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance. 5.2 A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

12

John Keells Hotels PLC

5.3 If the Group loses control over a subsidiary, it: - Derecognises the assets (including goodwill) and liabilities of the subsidiary - Derecognises the carrying amount of any non-controlling interest - Derecognises the cumulative translation differences, recorded in equity - Recognises the fair value of the consideration received - Recognises the fair value of any investment retained - Recognises any surplus or deficit in profit or loss - Reclassifies the parents share of components previously recognised in other comprehensive income to profit or loss or retained earnings, as appropriate. 5.4 The Group measures goodwill at the acquisition date as the fair value of the consideration transferred including the recognised amount of any non-controlling interests in the acquiree, less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. The Group elects on a transaction-by-transaction basis whether to measure non-controlling interests at fair value, or at their proportionate share of the recognised amount of the identifiable net assets, at the acquisition date. Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. 5.5 In a business combination achieved in stages, the Group remeasures its previously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss. 5.6 Upon loss of joint control measures and recognises its remaining investment at its fair value. Any difference between the carrying amount of the former joint controlled entity upon loss of joint control and the fair value of the remaining investment and proceeds from disposal are recognised in profit or loss. When the remaining investment constitutes significant influence, it is accounted for as investment in an associate. 5.7 Upon loss of significant influence over the associate, the Group measures and recognises any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognised in profit or loss.

SIGNIFICANT ACCOUNTING POLICIES The changes to accounting policies set out below have been applied consistently to all periods presented in these interim condensed financial statements and in preparing the opening SLFRS/LKAS statement of financial position as at 1 April 2011 for the purpose of the transition to SLFRS/LKAS, unless otherwise indicated. The presentation and classification of the financial statements of the previous year have been amended, where relevant, for better presentation and to be comparable with those of the current year. Finance income and finance costs Finance income comprises interest income on funds invested (including available-for-sale financial assets), dividend income, gains on the disposal of available-for-sale financial assets, fair value gains on financial assets at fair value through profit or loss, gains on the remeasurement to fair value of any pre-existing interest in an acquiree, and gains on hedging instruments that are recognised in profit or loss.

Interim Financial Statements

13

Notes to the Financial Statements Contd...

Interest income is recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised in profit or loss on the date that the Groups right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date. Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, losses on disposal of available-for-sale financial assets, fair value losses on financial assets at fair value through profit or loss, impairment losses recognised on financial assets (other than trade receivables), and losses on hedging instruments that are recognised in profit or loss. Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position. Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date, whether fulfillment of the arrangement is dependent on the use of a specific asset or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. At inception or upon reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate the payments reliably, then an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the Groups incremental borrowing rate. Financial assets Initial recognition and measurement Financial assets within the scope of LKAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets, as appropriate and determines the classification of its financial assets at initial recognition. All financial assets are recognised initially at fair value plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. The group accounts for the fair value changes between trade date and settlement date. The financial assets include cash and short-term deposits, trade and other receivables, loans and other receivables, quoted and unquoted financial instruments and derivative financial instruments. Subsequent measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss includes financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial assets at fair value through profit and loss are carried in the statement of financial position at fair value with changes in fair value recognised in the income statement. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate method (EIR), less impairment. Amortised cost is calculated

14

John Keells Hotels PLC

by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the income statement. The losses arising from impairment are recognised in the income statement. Held-to-maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to-maturity when the Group has the positive intention and ability to hold it to maturity. After initial measurement, held-to-maturity investments are measured at amortised cost using the effective interest method, less impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the income statement. The losses arising from impairment are recognised in the income statement in finance costs. The Group did not have any held-to-maturity investments during any period. Available-for-sale financial investments Available-for-sale financial investments include equity and debt securities. Equity investments classified as available-for-sale are those, which are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those which are intended to be held for an indefinite period of time and which may be sold in response to needs for liquidity or in response to changes in the market conditions. After initial measurement, available-for-sale financial investments are subsequently measured at fair value with unrealised gains or losses recognised as other comprehensive income in the available-for-sale reserve until the investment is derecognised, at which time the cumulative gain or loss is recognised in other operating income, or determined to be impaired, at which time the cumulative loss is reclassified to the income statement in finance costs and removed from the available-for-sale reserve. Derecognition A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised when: The rights to receive cash flows from the asset have expired The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of it, the asset is recognised to the extent of the Groups continuing involvement in it. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. Impairment of financial assets The Group assesses at each reporting date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset and that loss event has an impact on the estimated future

Interim Financial Statements

15

Notes to the Financial Statements Contd...

cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence or other financial reorganisation and where observable data indicate that there is a measurable decrease in the difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy of impairment may include indications that the debtors or a group of debtors is experiencing significant financial estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults. Financial liabilities Initial recognition and measurement Financial liabilities within the scope of LKAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives as appropriate and determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable transaction costs. The financial liabilities include trade and other payables, bank overdrafts, loans and borrowings, financial guarantee contracts, and derivative financial instruments. Subsequent measurement The measurement of financial liabilities depends on their classification as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Gains or losses on liabilities held for trading are recognised in the income statement. The Group has not designated any financial liabilities upon initial recognition as at fair value through profit or loss. Borrowings After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in the income statement when the liabilities are derecognised as well as through the effective interest rate method (EIR) amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the income statement. Financial guarantee contracts Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the best estimate of the expenditure required to settle the present obligation at the reporting date and the amount recognised less cumulative amortisation.

16

John Keells Hotels PLC

Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. Fair value of financial instruments The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations, without any deduction for transaction costs. For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include using recent arms length market transactions; reference to the current fair value of another instrument that is substantially the same; a discounted cash flow analysis or other valuation models. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the income statement. Financial risk management objectives and policies The Groups principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Groups operations and to provide guarantees to support its operations. The Group has loan and other receivables, trade and other receivables, and cash and short-term deposits that arrive directly from its operations. The Group also holds available-for-sale investments and enters into derivative transactions. The Group is exposed to market risk, credit risk and liquidity risk. The Groups senior management oversees the management of these risks. The Groups senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Group. The financial risk committee provides assurance to the Groups senior management that the Groups financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with group policies and group risk appetite. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Groups policy that no trading in derivatives for speculative purposes shall be undertaken. Defined benefit plan - gratuity All actuarial gains and losses at 1 April 2011, the date of transition to SLFRS/LKASs, were recognised in retained earnings. The Group recognises all actuarial gains and losses arising subsequently from defined benefit plans in other comprehensive income and expenses related to defined benefit plans in personnel expenses in income statement. Operating Segment An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Groups other components. All operating segments operating results are reviewed regularly by the Groups CEO to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.

Interim Financial Statements

17

Notes to the Financial Statements Contd...

Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Companys headquarters), head office expenses, and income tax assets and liabilities. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill.

Standards issued but not yet effective Standards issued but not yet effective up to the date of issuance of the Groups interim financial statements are listed below. This listing of standards and interpretations issued are those that the Group reasonably expects to have an impact on disclosures, financial position or performance when applied at a future date. The Group intends to adopt these standards when they become effective. SLFRS 10-Consolidated Financial Statements SLFRS 10 replaces the portion of LKAS 27 Consolidated and Separate Financial Statements that addresses the accounting for consolidated financial statements. It also includes the issues raised in SIC-12 Consolidation Special Purpose Entities. SLFRS 10 establishes a single control model that applies to all entities including special purpose entities. The changes introduced by SLFRS 10 will require management to exercise significant judgement to determine which entities are controlled, and therefore, are required to be consolidated by a parent, compared with the requirements that were in LKAS 27. This standard becomes effective for annual periods beginning on or after 1 January 2013. SLFRS 11-Joint Arrangements SLFRS 11 replaces LKAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities Nonmonetary Contributions by Venturers. SLFRS 11 removes the option to account for jointly controlled entities (JCEs) using proportionate consolidation. Instead, JCEs that meet the definition of a joint venture must be accounted for using the equity method. The application of this new standard will impact the financial position of the Group. This is due to the cessation of proportionate consolidating the joint venture in Showers Limited (see note 6) to equity accounting for this investment. This standard becomes effective for annual periods beginning on or after 1 January 2013. SLFRS 12-Disclosure of Interests in other entities SLFRS 12 includes all of the disclosures that were previously in LKAS 27 related to consolidated financial statements, as well as all of the disclosures that were previously included in LKAS 31 and LKAS 28. These disclosures relate to an entitys interests in subsidiaries, joint arrangements, associates and structured entities. A number of new disclosures are also required. This standard becomes effective for annual periods beginning on or after 1 January 2013. SLFRS 13-Fair Value Measurement SLFRS 13 establishes a single source of guidance under SLFRS for all fair value measurements. SlFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under SLFRS when fair value is required or permitted. The Group is currently assessing the impact that this standard will have on the financial position and performance. This standard becomes effective for annual periods beginning on or after 1 January 2013. The group has not adopted IFRIC 15 which is related to recognition of revenue of construction of real estate. The group has deferred application of this IFRIC based on the ruling issued by CA Sri Lanka. SLFRS 2 Share-based Payment has not been applied to equity instruments in share-based payment transactions that were granted on or before 1 January 2012.

18

John Keells Hotels PLC

First time adoption of SLFRS/LKAS The interim condensed financial statements, for the period ended 30 June 2012, are the first financial statements prepared in accordance with SLFRS/LKAS. Previously for periods up to and including the year ended 31 March 2012, the Group prepared its financial statements in accordance with Sri Lanka Accounting Standards which were effective up to 31 December 2011. In preparing these financial statements, the opening statement of financial position was prepared as at 1 April 2011, the date of transition to SLFRS/LKAS. This note summarises and explains the principal adjustments made in restating its SLAS statement of financial position as at 1 April 2011, 31 March 2012 and its previously published SLAS financial statements as at and for the period ended 30 September 2012. Exemptions applied SLFRS 1 First-Time Adoption of Sri Lanka Financial Reporting Standards allows first-time adopters certain exemptions from the retrospective application of certain SLFRS/LKAS. The Group has applied the following optional exemptions: SLFRS 3 Business Combinations has not been applied to acquisitions of subsidiaries, which are considered businesses for SLFRS/LKAS, or of interests in associates and joint ventures that occurred before 1 April 2011. The Group has not applied LKAS 21 retrospectively to fair value adjustments and goodwill from business combinations that occurred before the date of transition to SLFRS/LKAS. Such fair value adjustments and goodwill are treated as assets and liabilities of the parent rather than as assets and liabilities of the acquiree. Therefore, those assets and liabilities are already expressed in the functional currency of the parent or are non-monetary foreign currency items and no further translation differences occur. Use of this exemption means that the SLAS carrying amounts of assets and liabilities, which are required to be recognised under SLFRS/LKAS, are stated at their deemed cost at the date of the acquisition. After the date of the acquisition, measurement is in accordance with SLFRS/LKAS. Assets and liabilities that do not qualify for recognition under SLFRS are excluded from the opening SLFRS statement of financial position. SLFRS 1 also requires that the SLAS carrying amount of goodwill must be used in the opening IFRS statement of financial position (apart from adjustments for goodwill impairment and recognition or derecognition of intangible assets). In accordance with SLFRS 1, the Group has tested goodwill for impairment at the date of transition to SLFRS/LKAS. Freehold land and buildings, other than investment property, were carried in the statement of financial position prepared in accordance with SLAS on the basis of valuations performed prior to 31 March 2012. The Group has elected to regard those values as deemed cost at the date of the revaluation since they were broadly comparable to fair value. The Group has applied the following mandatory exceptions: Significant accounting judgment, estimates and assumptions Significant accounting judgment, estimates and assumptions at 1 April 2011 and at 31 March 2012 are consistent with those made for the same dates in accordance with SLAS effective up to 31 December 2011 (after adjustments to reflect any differences in accounting policies). The estimates used by the Group to present these amounts in accordance with SLFRS/LKAS effective from 1 January 2012 reflect conditions at 1 April 2011, the date of transition to SLFRS/LKAS effective from 1 January 2012 and as of March 31, 2012.

Explanations for transition to SLFRS/LKASs In preparing SLFRS/LKAS statement of financial position for previously reported financial periods, required adjustments have been made in accordance with the respective SLFRS/LKASs. The effect of the transition from SLASs to SLFRS/LKASs has been presented in the reconciliation statements.
Interim Financial Statements

19

Notes to the Financial Statements Contd...

9.1 RECONCILIATION - CONSOLIDATED INCOME STATEMENT
For the nine months ended 31st December 2011

As per As per SLAS Remeasurements SLFRS/LKAS

Revenue Cost of sales Gross profit Dividend income Other operating income Distribution expenses Administrative expenses Other operating expenses Finance costs Finance income Profit before tax Tax expense Profit for the period Note: All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 4,748,138 (1,607,282) 3,140,856 79,343 (204,547) (1,664,748) (672,191) (189,006) 489,707 (82,007) 407,700 (9,699) 9,699 4,748,138 (1,607,282) 3,140,856 69,644 (204,547) (1,664,748) (672,191) (189,006) 9,699 489,707 (82,007) 407,700

20

John Keells Hotels PLC

9.2 RECONCILIATION - CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the nine months ended 31st December 2011

As per As per SLAS Remeasurements SLFRS/LKAS

Profit for the period Exchange differences on translation of foreign operations Other comprehensive income for the period, net of tax Total comprehensive income for the period, net of tax Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 407,700 407,700 195,049 195,049 195,049 407,700 195,049 195,049 602,749

Interim Financial Statements

21

9.3
Equity as at 31st December 2011 Equity as at 31st March 2012 As at 1st April 2011 (date of transition to SLFRS/LKAS)

RECONCILIATION - CONSOLIDATED STATEMENT OF FINANCIAL POSITION

22
As per As per SLAS Remeasurements SLFRS/LKAS As per SLAS Remeasurements As per SLFRS/LKAS As per As per SLAS Remeasurements SLFRS/LKAS
8,892,493 8,486,512 670,407 25,063 44,461 18,118,936 9,918,258 9,386,494 670,407 25,063 34,143 20,034,365 9,918,258 9,386,494 670,407 25,063 34,143 20,034,365 8,892,493 8,486,512 670,407 25,063 44,461 18,118,936 6,585,581 8,605,476 670,407 25,063 37,978 9,073 15,933,578 6,585,581 8,605,476 670,407 25,063 37,978 9,073 15,933,578 171,757 1,136,434 167,470 20,258 295,000 508,923 2,299,842 20,418,778 171,481 1,245,268 199,870 21,695 1,140,134 547,136 3,325,584 23,359,949 (424,746) 424,746 547,136 171,481 820,522 199,870 21,695 424,746 1,140,134 314,429 3,325,584 23,359,949 (395,282) 395,282 171,757 741,152 167,470 20,258 395,282 295,000 508,923 2,299,842 20,418,778 118,541 1,303,179 183,568 33,232 10,938 1,963,887 17,897,465 (499,001) 499,001 118,541 804,178 183,568 33,232 499,001 10,938 314,429 1,963,887 17,897,465 9,500,247 956,246 1,784,422 12,240,915 64,210 12,305,125 9,500,247 1,791,313 2,482,461 13,774,021 67,725 13,841,746 5,809,814 49,337 84,677 1,923 57,392 4,799,101 39,759 83,761 2,004 50,498 4,975,123 4,799,101 39,759 83,761 2,004 50,498 4,975,123 (956,246) 956,246 9,500,247 1,784,422 956,246 12,240,915 64,210 12,305,125 (1,791,313) 1,791,313 9,500,247 2,482,461 1,791,313 13,774,021 67,725 13,841,746 5,809,814 49,337 84,677 1,923 57,392 6,003,143 9,500,247 761,197 1,379,022 11,640,466 63,689 11,704,155 2,615,273 34,987 78,713 2,248 47,399 2,778,620 (761,197) 761,197 9,500,247 1,379,022 761,197 11,640,466 63,689 11,704,155 2,615,273 34,987 78,713 2,248 47,399 2,778,620

Notes to the Financial Statements Contd...

John Keells Hotels PLC

6,003,143
1,125,989 120,722 250,185 1,005,220 1,012,944 23,359,949 1,016,339 123,937 85,230 730,587 1,182,437 3,138,530 20,418,778 (524,059) 524,059 492,280 123,937 85,230 524,059 730,587 1,182,437 3,138,530 20,418,778

ASSETS Non-current assets Property, plant and equipment Lease rentals paid in advance Intangible assets Other non-current financial assets Deferred tax assets Other non-current assets

Current assets Inventories Trade and other receivables Amount due from related parties Tax recoverables Other current assets Other investments Cash in hand and at bank

Total assets

EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Stated capital Capital reserves Revenue reserves Other components of equity

Non-controlling interests Total equity

Non-current liabilities Interest bearing borrowings Deferred tax liabilities Employee benefit liabilities Other deferred liabilities Other non-current liabilities

Current liabilities Trade and other payables Amounts due to related parties Income tax liabilities Other current liabilities Current portion of interest bearing borrowings Bank overdrafts

Total equity and liabilities

3,515,060

(299,271) 299,271 -

826,718 120,722 250,185 299,271 1,005,220 1,012,944 3,515,060 23,359,949

600,506 120,068 82,500 821,440 1,790,176 3,414,690 17,897,465

(151,168) 151,168 -

449,338 120,068 82,500 151,168 821,440 1,790,176 3,414,690 17,897,465

Note :

All values are in Rupees 000s, unless otherwise stated. The above figures are not audited.

9.4 RECONCILIATION - COMPANY INCOME STATEMENT For the nine months ended 31st December 2011 As per As per SLAS Remeasurements SLFRS/LKAS
Revenue Cost of sales Gross profit Dividend income Other operating income Administrative expenses Other operating expenses Finance costs Finance income Profit before tax Tax expense Profit for the period Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 46,295 (18,268) (135) (6,558) 21,334 (5,974) 15,360 (46,295) 46,295 (18,268) (135) (6,558) 46,295 21,334 (5,974) 15,360

Interim Financial Statements

23

Notes to the Financial Statements Contd...

9.5 RECONCILIATION - COMPANY STATEMENT OF COMPREHENSIVE INCOME
For the nine months ended 31st December 2011

As per As per SLAS Remeasurements SLFRS /LKAS

Profit for the period Other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the period, net of tax Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 15,360 15,360 15,360 15,360

24

John Keells Hotels PLC

9.6 RECONCILIATION - COMPANY STATEMENT OF FINANCIAL POSITION

Equity as at 31st December 2011 Equity as at 31st March 2012 As at 1st April 2011 (date of transition to SLFRS/LKAS)

As per As per SLAS Remeasurements SLFRS/LKAS

As per As per SLAS Remeasurements SLFRS/LKAS

As per As per SLAS Remeasurements SLFRS/LKAS

ASSETS Non-current assets Investments in subsidiaries and joint ventures Other non-current financial assets Other non-current assets 9,317,661 13 9,054 9,326,728 9,317,661 13 9,054 9,326,728

9,328,573 13 9,328,586
9,301,873 13 8,630 9,310,516

9,328,573 13 9,328,586

9,301,873 13 8,630 9,310,516

Current assets Trade and other receivables Amounts due from related parties Other current financial assets Tax recoverables Other current assets Assets classified as held for sale Other investments Cash in hand and at bank 1,590 11,755 470,650 100,000 43,301 627,296 9,954,024 (1,590) 1,590 11,755 470,650 1,590 100,000 43,301 627,296 9,954,024

Total assets

1,706 8,747 459,500 500,000 4,266 974,219 10,302,805

(1,706) 1,706 -

0 8,747 459,500 1,706 500,000 4,266 974,219 10,302,805

13,362 12,398 643,146 6,407 1,403 676,716 9,987,232

(13,362) 13,362 -

(0) 12,398 643,146 6,407 13,362 1,403 676,716 9,987,232

EQUITY AND LIABILITIES Stated capital Revenue reserves Total equity 9,500,247 437,232 9,937,479 9,500,247 437,232 9,937,479

9,500,247 786,927 10,287,174

9,500,247 786,927 10,287,174

9,500,247 421,872 9,922,119

9,500,247 421,872 9,922,119

Current liabilities Trade and other payables Amounts due to related parties Income tax liabilities Bank overdrafts 13,660 859 2,026 16,545 9,954,024 13,660 859 2,026 16,545 9,954,024

Interim Financial Statements

Total equity and liabilities

9,719 1,749 4,163 15,631 10,302,805

9,719 1,749 4,163 15,631 10,302,805

14,060 547 50,506 65,113 9,987,232

14,060 547 50,506 65,113 9,987,232

Note :

All values are in Rupees 000s, unless otherwise stated. The above figures are not audited.

25

Notes to the Financial Statements Contd...

For the nine months ended 31st December 2012

10

Share Information

10.1 Public share holdings The percentage of the shares held by the public as at 31st December 2012 was 19.64% (30th September 2012 - 19.64%). 10.2 Directors share holdings The number of shares held by the Board of Directors are as follows: As at As at 31-Dec-12 30-Sep-12
S. C. Ratnayake - Chairman A. D. Gunewardene - CEO J. R. F . Peiris J. E. P. Kehelpannala R. T. Wijesinha A. Omar A. Cabraal N. B. Weerasekera B. J. S. M. Senanayake

550,311 74,806 Nil Nil Nil Nil Nil Nil Nil

550,311 74,806 Nil Nil Nil Nil Nil Nil Nil

10.3 Twenty largest shareholders of the Company are as follows.

As at 31st December 2012 No. of Shares % 30th September 2012 No. of Shares %

John Keells Holdings PLC 1,169,598,478 Sri Lanka Insurance Corporation Ltd. - Life Fund 72,747,800 Employees Provident Fund 61,322,359 Mercantile Investments PLC 13,000,000 Seylan Bank PLC - A/C No. 3 7,274,500 Mr. D. J. M. Blackler 7,114,760 Employees Trust Fund Board 4,216,700 Mercantile Fortunes (Pvt) Ltd 3,800,000 National Savings Bank 3,473,800 Phoenix Ventures Ltd. 2,801,000 Bank of Ceylon - No. 2 A/C 2,725,266 Mr. R. T. Jinasena/Ranjith Tissaweera 2,516,765 Mr. T. R. Jinasena/Tissaweera Rohan 2,351,568 Mr. U. G. Madanayake/Upali Gotabhaya 2,000,000 Merrill J Fernando & Sons Pvt. Ltd 1,911,573 Waldock Mackenzie Limited/Mr. L.P. Hapangama 1,497,679 Mrs N. Weerasinghe/Neetha 1,419,853 Mr. A.A.V. Amarasinghe/Ahintha Anthony Viswajith 1,287,800 Mr. C.N.H. Liyanage/Chanaka Nalinda Howpe 1,250,000 Mr. P.N.N. Fernando/Paiyagalage Neil nandasena 1,163,280

80.32% 1,169,598,478 5.00% 72,747,800 4.21% 55,266,415 0.89% 13,000,000 0.50% 7,274,500 0.49% 7,114,760 0.29% 4,216,700 0.26% 3,800,000 0.24% 3,473,800 0.19% 2,801,000 0.19% 2,725,266 0.17% 2,516,765 0.16% 2,351,568 0.14% 2,000,000 0.13% 1,911,573 0.10% 1,497,679 0.10% 1,419,853 0.09% 1,287,800 0.09% 1,250,000 0.08% 1,363,280

80.32% 5.00% 3.80% 0.89% 0.50% 0.49% 0.29% 0.26% 0.24% 0.19% 0.19% 0.17% 0.16% 0.14% 0.13% 0.10% 0.10% 0.09% 0.09% 0.09%

26

John Keells Hotels PLC

10.4 Stated capital Stated capital is represented by number of shares in issue as given below: Number of Shares as at , 31.12.2012 31.03.2012 31.12.2011
Ordinary shares

1,456,146,780

1,456,146,780

1,456,146,780

10.5 Net assets per share Net assets per share has been calculated, for all periods, based on the number of shares in issue as at 31st December 2012. 10.6 Market price per share For the quarter ended 31st December

2012 Rs.

2011 Rs. 16.70 12.30 13.50

Highest (for the period) Lowest (for the period) Last traded price (for the period)

14.60 13.00 13.80

For the nine months ended 31st December 2012

11

Contingencies, capital and other commitments

11.1 As at 31st December 2012, the Group had capital commitments contracted but not provided in the financial statements amounting to Rs.233 Mn ( 31st March 2012 Rs. 693.5 Mn). 11.2 Contingencies of the Company as at 31st December 2012 on account of guarantees issued on behalf of subsidiary companies in respect of short term loan facilities has decreased by Rs. 579 Mn from that disclosed on 31st March 2012. 11.3 There have been no significant change in the nature of the contingent liabilities, which were disclosed in the annual report for the year ended 31st March 2012. 12 Dividends paid A final dividend of Rs. 0.30 per share for the financial year ended 31 March 2012 was paid on 15 June 2012. In September 2012 John Keells Hotels PLC invested a sum of 132 Mn in Ahungalle Holiday Resorts (Pvt) Ltd in order to acquire a land. Post balance sheet events There have been no significant events subsequent to the Balance Sheet date, which require disclosure in the interim financial statements. All values included in these financial statements are in Rupees thousands, unless stated otherwise .

13

14

15

Interim Financial Statements

27

Notes

28

John Keells Hotels PLC

Corporate Information
Name of Company John Keells Hotels PLC Legal Form Public Limited Liability Company Incorporated in Sri Lanka on 1 Oct 1979 Stock Exchange Listing The issued Shares of John Keells Hotels PLC are listed on the Colombo Stock Exchange Company Registration No. PQ 8 Directors S C Ratnayake Chairman A D Gunewardene J R F Peiris J E P Kehelpannala M A Omar R T Wijesinha D A Cabraal N B Weerasekera B J S M Senanayake Secretaries and Registrars Keells Consultants (Pvt) Ltd 130, Glennie Street Colombo 2 Auditors Ernst & Young Chartered Accountants P.O. Box 101 Colombo Head Office & Registered Office of the Company 130, Glennie Street, Colombo 2 Telephone : (94-11) 2421101-15, (94-11) 2306000 Facsimile : ( 94-11) 2439046 E-mail : htlres@keells.com Web : www.johnkeellshotels.com Bankers Bank of Ceylon Deutsche Bank A.G Hongkong and Shanghai Banking Corporation Nations Trust Bank Hatton National Bank Commercial Bank

Hotel Reservations Keells Hotel Management Services Ltd 130, Glennie Street, Colombo 2 Telephone : (94-11) 2306600, (94-11) 2439049-51, Facsimile : (94-11) 2320862 E-mail : htlres@keells.com Web : www.cinnamonhotels.com www.chaayahotels.com

www.johnkeellshotels.com