Pegasus Hotels of Ceylon : - Interim Financials 30 June 2022

Pegasus Hotels of Ceylon PLC

A Carson Cumberbatch Company

Interim report for the three months ended 30th June 2022

PEGASUS HOTELS OF CEYLON PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - GROUP (All figures are in Sri Lankan Rupees Thousands)

Three months ended

30th June

	2022	2021	%
Revenue	169,184	55,977	202
Direct costs	(131,887)	(69,759)	89
Gross profit / (loss)	37,297	(13,782)	(371)
Other income	1,647	1,020	61
Administrative expenses	(52,551)	(37,184)	41
Loss from operations	(16,573)	(52,357)	(68)
Finance income	6,380	1,778	259
Finance costs	(7,858)	(4,150)	89
Net finance income / (cost)	(1,478)	(2,372)	(38)
Loss before taxation	(18,051)	(54,729)	(67)
Income tax expenses	-	(395)	(100)
Deferred taxation	1,905	8,529	(78)
Loss for the period	(16,146)	(46,595)	(65)
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gain / (loss) from valuation of employee benefits	-	-	-
Related tax	-	-	-
	-	-	-
Total comprehensive income / (expense) for the period	(16,146)	(46,595)	(65)
Earnings / (loss) per share (Rs.)	(0.53)	(1.53)

Change % represents the percentage change in current period's results compared to the comparative period of previous year.

Figures in brackets indicate deductions.

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PEGASUS HOTELS OF CEYLON PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - COMPANY (All figures are in Sri Lankan Rupees Thousands)

	Three months ended
		30th June	Change
	2022	2021
	%
Revenue	148,561	46,958	216
Direct costs	(113,209)	(58,030)	95
Gross profit / (loss)	35,352	(11,072)	(419)
	945	350	170
Selling and promotional expenses	(2,508)	(2,022)	24
Administrative expenses	(44,138)	(31,329)	41
Loss from operations	(10,349)	(44,073)	(77)
	6,353	1,647	286
Finance costs	(2,714)	(1,581)	72
Net finance income / (cost)	3,639	66	5,414
Loss before taxation	(6,710)	(44,007)	(85)
Income tax expenses	-	(395)	(100)
Deferred taxation	459	7,028	(93)
Loss for the period	(6,251)	(37,374)	(83)
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gain / (loss) from valuation of employee benefits	-	-	-
Related tax	-	-	-
Other comprehensive income / (expense) for the period	-	-	-
Total comprehensive income / (expense) for the period	(6,251)	(37,374)	(83)
Earnings / (loss) per share (Rs.)	(0.21)	(1.23)
Dividend per share (Rs.)	-	-

Change % represents the percentage change in current period's results compared to the comparative period of previous year.

Figures in brackets indicate deductions.

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PEGASUS HOTELS OF CEYLON PLC

STATEMENT OF FINANCIAL POSITION

(All figures are in Sri Lankan Rupees Thousands)

	Group	Company
As at	30.06.2022	31.03.2022	30.06.2022	31.03.2022
(Adjusted)	(Adjusted)
ASSETS
Non-current assets
Property, plant and equipment	2,679,698	2,699,883	2,346,071	2,363,151
Right-of-use assets	5,573	5,624	-	-
Intangible assets	924	1,008	-	-
Investment in subsidiary	-	-	60,451	60,451
Compensation receivable	24,759	24,759	24,759	24,759
Current assets
Inventories	36,695	22,778	31,558	18,361
Investment in fixed deposits	21,063	36,276	21,063	36,276
Trade and other receivables	51,810	57,500	41,568	46,751
Tax receivable	1,668	1,668	1,134	1,134
Cash and cash equivalents	101,887	79,920	100,402	77,915
Total current assets	214,335	211,140	196,897	193,396
Total assets	2,925,289	2,942,414	2,628,178	2,641,757
EQUITY AND LIABILITIES
Equity
Stated capital	515,170	515,170	515,170	515,170
Capital reserves	1,790,805	1,790,805	1,594,889	1,594,889
Revenue reserves	(128,717)	(112,571)	(4,243)	2,008
Total equity	2,177,258	2,193,404	2,105,816	2,112,067
Non-current liabilities
Deferred tax liability	265,341	267,246	250,702	251,161
Loans and borrowings	206,931	176,982	84,819	73,177
Lease liability	9,565	9,505	-	-
Current liabilities
Trade and other payables	145,917	146,824	101,197	105,014
Current tax liabilities	1,359	2,717	1,359	2,717
Lease liability	585	573	-	-
Total current liabilities	251,153	279,548	175,412	193,187
Total equity and liabilities	2,925,289	2,942,414	2,628,178	2,641,757
Net assets per share (Rs.)	71.64	72.17	69.29	69.50

The Statement of Financial Position as at 30th June 2022 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the period then ended as disclosed in pages 1 to 5 have been drawn up from unaudited financial statements.

I certify that these financial statements are in compliance with the requirements of Companies Act, No. 7 of 2007. (Sgd).

V.R. Wijesinghe

Director - Finance

Carsons Management Services (Private) Limited

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Approved and signed on behalf of the Managers,	Approved and signed on behalf of the Board,
(Sgd).	(Sgd).	(Sgd).
A.P. Weeratunge	D.C.R. Gunawardena	K. Selvanathan
Director	Chairman	Director
Carsons Management Services (Private) Limited

10th August 2022

Colombo

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PEGASUS HOTELS OF CEYLON PLC STATEMENT OF CHANGES IN EQUITY

(All figures are in Sri Lankan Rupees Thousands)

Group		Capital	Revenue
	Stated capital	reserves	reserves	Total equity
Balance as at 1st April 2022 (Adjusted)	515,170	1,790,805	(112,571)	2,193,404
Loss for the period	-	-	(16,146)	(16,146)
Other comprehensive income / (expense) for the period	-	-	-	-
Total comprehensive income / (expense) for the period	-	-	(16,146)	(16,146)
Balance as at 30th June 2022	515,170	1,790,805	(128,717)	2,177,258
Balance as at 1st April 2021	515,170	1,390,298	76,290	1,981,758
Surcharge tax for the year of assessment 2020/21*	-	-	(2,717)	(2,717)
Balance as at 01st April 2021 (Adjusted)	515,170	1,390,298	73,573	1,979,041
Loss for the period	-	-	(46,595)	(46,595)
Other comprehensive income / (expense) for the period	-	-	-	-
Total comprehensive income / (expense) for the period	-	-	(46,595)	(46,595)
Balance as at 30th June 2021 (Adjusted)	515,170	1,390,298	26,978	1,932,446
Company		Capital	Revenue
	Stated capital	reserves	reserves	Total equity
Balance as at 1st April 2022 (Adjusted)	515,170	1,594,889	2,008	2,112,067
Loss for the period	-	-	(6,251)	(6,251)
Other comprehensive income / (expense) for the period	-	-	-	-
Total comprehensive income / (expense) for the period	-	-	(6,251)	(6,251)
Balance as at 30th June 2022	515,170	1,594,889	(4,243)	2,105,816
Balance as at 1st April 2021	515,170	1,219,111	99,155	1,833,436
Surcharge tax for the year of assessment 2020/21*	-	-	(2,717)	(2,717)
Balance as at 01st April 2021 (Adjusted)	515,170	1,219,111	96,438	1,830,719
Loss for the period	-	-	(37,374)	(37,374)
Other comprehensive income / (expense) for the period	-	-	-	-
Total comprehensive income / (expense) for the period	-	-	(37,374)	(37,374)
Balance as at 30th June 2021 (Adjusted)	515,170	1,219,111	59,064	1,793,345

Figures in brackets indicate deductions.

• As per the provisions of Surcharge Tax Act No. 14 of 2022, although Pegasus Hotels of Ceylon PLC, the Company, and it's subsidiary did not become liable to pay surcharge tax as stand-alone entities, the Company and the Group are liable for surcharge tax on the basis that the companies are part of the Carson Cumberbatch PLC group, of which the aggregate taxable income exceeded the threshold as stipulated in the aforesaid Act.

Accordingly, the Company/ Group was liable for a surcharge tax of Rs. 2,716,611/- out of the taxable income of

Rs. 10,866,445/- pertaining to the year of assessment 2020/21. The Company/ Group paid the surcharge tax liability in two equal installments on 18th April 2022 and 10th July 2022.

According to the Act, the surcharge tax shall be deemed to be an expenditure in the financial statements relating to the year of assessment commenced on 1st April 2020. The expense of surcharge tax is accounted in accordance with 'Statement of Alternative Treatment on Accounting for Surcharge Tax levied under the Surcharge Tax Act No. 14 of 2022' issued by the Institute of Chartered Accountants of Sri Lanka on 22nd April 2022.

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