Introduction The Board of Directors present their Report

Introduction

The Kingsbury five star hotel is situated in the commercial
capital city of Sri Lanka. Formerly known as Ceylon Continental Hotel Colombo Incorporated
on 4th May 1969, is now a nine story building built by Mr. U.N
Gunasekara which is now a subsidiary of a Haley’s PLC. The Kingsbury was reconstructed
and re-opened in January 2013. (Anon., 2017)

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“The Kingsbury is
considered the culinary capital of Sri Lanka with renowned chefs around the
Globe creating culinary magic at its many restaurants to offer the world class
gourmet meals. Visitors to Colombo can certainly look forward to being pampered
with luxurious services that comes from genuine Sri Lankan warmth at The
Kingsbury”. (Anon., 2017)

The Group Structure

The
composition of the Executive and Non-Executive Directors satisfies the requirements
laid down in the Listing Rules of the Colombo Stock Exchange. As at 31st March
2017, the Board consisted of 11 Directors comprising of:

3 Executive
Directors (ED)

3
Non-Executive Directors (NED)

5
Non-Executive Independent Directors

(NED/ID)

 

AUDIT COMMITTEE

 

STOCK EXCHANGE LISTING

·        
The Ordinary shares of the Company are listed
with the

Colombo
Stock Exchange of Sri Lanka.

 

REIGISTERED OFFICE

·        
The Kingsbury Hotel Colombo

No. 48,
Janadhipathi Mawatha, Colombo 01, Sri Lanka.

 

 Annual Report

 

The Board of
Directors present their Report and the Audited Financial Statements of the
Company for the year ended 31st March 2017.The particulars provided in this
provide relevant information required by the Companies Act No. 07 of 2007 and
the Colombo Stock Exchange Listing rules and are guided by recommended best accounting
practices. The Annual Report contains the following sections:

 

Awards and
Recognitions
Financial Highlights
Chairman’s and Managing Director’s Review

Board of
Directors
Sustainability Report
Corporate Governance
Risk Management

Annual
Report of the Directors on the Affairs of the Company
Statement of Directors’ Responsibilities

Related
Party Transactions Review Committee Report
Audit Committee Report

Independent
Auditors’ Report
Financial Statement

Notes to the
Financial Statements
Information to Shareholders
Five Year Financial Summary and Key

Indicators
104 | Notice of Meeting 106 | Form of Proxy 107 | Corporate Structure – Inner
Back Cover

 

Directors Report

The
Directors are responsible for the governance of the Company including the
establishment and maintenance of the Company’s system of internal control. The
directors report confirmed that the Financial Statements have been prepared and
presented in accordance with the Sri Lanka Accounting Standards. The Director
Report covered the mentioned areas on the annual report. Such as, Review of the
year, Principal activity, Financial statements, Accounting policies, Directors’
emoluments, Donations, Insurance, Employment, Internal controls, Investments,
dividends etc. (Anon., 2017)

 

Audit Report

Internal Audit Report

The Audit
Committee comprises, three Independent Non-Executive Directors established by
the management to review and monitor the financial reporting process and the
management process of the Company.

The Audit
Committee chairman has confirmed that the internal audit committee is satisfied
with the Company’s accounting policies, operational controls and the affairs of
the Company are managed in accordance with the Company’s policies and the
Company assets are properly accounted for and adequately safeguarded. (Anon., 2017)

 

External
Audit Report

According to Earnst & Young charted Accountants the Financial Statements
give a true and fair

view of the
financial position of the Company as at 31 March 2017 and cashflow statement is
also prepared in accordance with Sri Lanka Accounting Standards. All the statements
comply with the requirements of section 151 of the Companies Act No. 07 of
2007.

 

 

Corporate
Governance

 

Corporate
governance is a set of process and policies by which a company is directed,
administered and controlled. It is a legal requirement and every PLC must
adhere to it.

Below are some of the best corporate governance practices
followed by The Kingsbury.

·        
The company is headed by an effective board with
collective responsibility.

·        
There is clear division between the chairman and
the chief executive.

·        
The roles of chairman and chief executive are
being performed by two separate individuals.

·        
There’s a balance between executive and non-executive
directors in the board.

·        
All directors are submitted for re-election at
regular intervals.

·        
There is a formal, rigorous and transparent
appointment of directors and remuneration of directors.

·        
The board maintains and reviews on Risk
management and internal control system.

·        
The board hold Annual General Meeting once a
year.

 

Accounting standards

 

IAS 1 – Presentation of financial Statements

IAS 1 states that the objective of financial statement is to
provide information about the financial position, performance and cash flow of
an enterprise that is useful in making economic decisions.

The
Financial Statements of the Company which comprise the Statement of Financial
Position, Income

Statement, Statement
of Other Comprehensive Income, Statement of Changes in Equity, Statement of
Cash Flows and Significant Accounting Policies and Notes has been prepared in
accordance with Sri Lanka Accounting Standards and in compliance with the
requirements of the Companies Act No. 07 of 2007. Financial statements provide
information about an entity’s assets, liabilities, equity, income and expenses,
including gains and losses.

That
information, along with other information in the notes, assists users of
financial statements in predicting the entity’s future cash flows and, in
particular, their timing and certainty.

 

 

 

The
Company’s management has made an assessment of its ability to continue as a Going
concern and

It has the resources to continue in business for the foreseeable
future. 

Management
is aware that there is no any material uncertainty and the company has the
ability to continue as a going concern. Financial statements are prepared on
the going concern basis and the accounting policies applied are consistent with
those used in the previous year.                    

 

 IAS 7 – Statement of
Cash flow

 

Cash flow statement is an integral part of primary financial
statements. It helps the users assess liquidity, solvency, financial
adaptability and future cash flows.

It is classified into operating activities, investing activities
and financing activities.

IAS 7 standard offers a choice of method for this part of the
statement of cash flows.

 

Direct Method –
Disclose major classes of gross cash receipts and gross cash payments.

Indirect Method – Net
profit or lost is adjusted for the effects of transactions of a non-cash
nature, any pre payments or accruals of past or future operating cash receipts
or payments and items of income or expense associated with investing or
financing cash flows.

 

 

 

 

                                                                                                                                                                                                               

 

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