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Introduction
The Palm Garden Hotel PLC is located on the south west coast of Sri Lanka, which is 96 km
from Bandaranaike International Airport. The hotel is situated along the golden sandy beaches
on the outskirts of the city of Beruwela which is just 55 km from Colombo. The hotel have 140
rooms with the magnificent gardens and romantic beaches which has a beautiful ambience to
make our vacation much more memorable. The Palm Garden Hotel PLC has attractive
accommodation and a fun club atmosphere which will charm every visitor, making it a joy to visit
and a very pleasant introduction to Sri Lanka. There is a games room, a children's playground
and a discotheque. Further facilities that are offered by the hotel included a bar, a restaurant,
conference facilities and room and laundry services. All of the rooms have their own private
balcony with ocean views. All of the rooms are en suite and features a direct dial telephone, a
TV and individually regulated air conditioning units. Facilities that are provided by the hotel
includes a large swimming pool with a children's pool, a hot tub, a sauna, a steam room and
massage treatments. Palm Garden Hotel PLC also provides a tennis court with floodlights, a
squash court, a volleyball court, a badminton court, table tennis, darts, billiards, folklore and
other entertainments. It also provides a varieties of cuisines and drinks, the resort has a coffee
shop, an Italian restaurant, a Sri Lankan restaurant, a pool side grill and barbecue, a bar, a
garden and pool bar for the customers to enjoy.
Chairman’s Review
In Sri Lanka, tourism is the third-largest export earner in the economy, and during the past five
years, there has been an unprecedented growth in the industry. However, tourism in Sri Lanka
has much more untapped potential; thereby, the sector is poised to generate a range of growth
and investment opportunities. However, as a result of the terrorist attack in April 2019 followed
by the COVID 19 pandemic, the leisure sector is experiencing a rapid and sharp drop in
demand at global level, which resulted a significant drop in tourism sector earning in Sri Lanka.
Sector earned USD 3.5Bn in 2019, compared to Rs 4.4Bn in 2018.
As one of the main drivers of Sri Lanka’s economy, the immediate effect of Covid has been
devastating for all levels in the industry, scaling from higher level to middle and lower levels.
However, government and the Sri Lanka Tourism Development Authority is in the process of
taking steps to reform the industry. “Tourism Strategic Action Plan 2020- 2022” was presented
in August 2020, aiming a two-year strategy to streamline the industry, keeping in line with
President’s National Policy Framework.
The management has considered the short term to medium term strategies for all the operating
properties and has offered these properties for repatriation hotels which will support cashflows.
With the intended design changes which are to be taken place, construction work of Riverina
Resorts (Pvt) Limited, a fully owned subsidiary of Palm Garden Hotels PLC is expected to
commence in the coming months.
Eden Hotel Lanka PLC, subsidiary of Palm Garden Hotels PLC was rewarded with many
accolades during the year under review. The Company was able to win a merit award in the
National Business Excellence Award 2019 under the Hospitality and Tourism Sector. Apart from
that, all the operating hotels are enjoying higher rankings from the reputed booking engines.
Objectives of the study
As at 31st March
%
2020 2019 change
(Rs.) (Rs.)
Assets
Non-Current Assets
20,345,891,92 17,847,456,83
Property, plant and equipment 3 9 14%
Investment property 48,500,000 37,632,000 29%
Right of use asset 3,666,610,933
Prepaid lease rentals on leasehold properties 665,909,367 -100%
Intangible assets 89,554,980 85,597,113 5%
Investment in subsidiaries
Trading assets - fair value through profit or loss 2,550,936 5,265,206 -52%
Investment securities 303,114,934 176,791,843 71%
24,456,223,70 18,818,652,36
Total Non-Current Assets 6 8 30%
Current Assets
Inventories 32,952,840 38,309,160 -14%
Trade and other receivables 2,046,615,201 1,650,379,916 24%
Current tax receivables 178,731,675 135,865,248 32%
Cash and cash equivalents 475,903,846 315,255,536 51%
Total Current Assets 2,734,203,562 2,139,809,860 28%
27,190,427,26 20,958,462,22
Total Assets 8 8 30%
Equity and Liabilities
Stated capital 2,436,090,770 2,436,090,770 0%
Reserves 3,886,500,013 3,225,788,861 20%
Accumulated losses -5,275,093,192 -3,724,690,628 42%
Equity attributable to equity holders 1,047,497,591 1,937,189,003 -46%
Non-controlling interests 2,476,811,228 2,984,407,095 -17%
Total equity 3,524,308,819 4,921,596,098 -28%
Liabilities
Non-Current Liabilities
Loans and borrowings 6,826,372,057 1,088,772,555 527%
Employee benefits 30,079,780 28,159,460 7%
Deferred tax liabilities 811,541,906 785,450,283 3%
Total Non-Current Liabilities 7,667,993,743 1,902,382,298 303%
Current Liabilities
13,672,606,49 12,191,421,03
Trade and other payables 3 3 12%
Loans and borrowings 2,259,170,015 1,722,807,454 31%
Current tax payables 12,497,427 53,325,765 -77%
Bank overdrafts 53,850,771 166,929,580 -68%
Total Current Liabilities 15,998,124,70 14,134,483,83 13%
6 2
27,190,427,26 20,958,462,22
Total Liabilities and Equity 8 8 30%
Ratio Analysis
Current Liabilities
15,998,124,706
14,134,483,832
Net Sales
856,020,981
1,125,112,814
27,190,427,268
20,958,462,228
3,524,308,819
(2019) = (953,392,318) = (0.193) = (19.37%)
4,921,596,098
3,524,308,819
4,921,596,098
27,190,427,268
20,958,462,228
EPS =