IntroductionThe Kingsbury five star hotel is situated in the commercialcapital city of Sri Lanka. Formerly known as Ceylon Continental Hotel Colombo Incorporatedon 4th May 1969, is now a nine story building built by Mr. U.NGunasekara which is now a subsidiary of a Haley’s PLC. The Kingsbury was reconstructedand re-opened in January 2013. (Anon.
, 2017)”The Kingsbury isconsidered the culinary capital of Sri Lanka with renowned chefs around theGlobe creating culinary magic at its many restaurants to offer the world classgourmet meals. Visitors to Colombo can certainly look forward to being pamperedwith luxurious services that comes from genuine Sri Lankan warmth at TheKingsbury”. (Anon., 2017)The Group Structure Thecomposition of the Executive and Non-Executive Directors satisfies the requirementslaid down in the Listing Rules of the Colombo Stock Exchange.
As at 31st March2017, the Board consisted of 11 Directors comprising of:3 ExecutiveDirectors (ED)3Non-Executive Directors (NED)5Non-Executive Independent Directors(NED/ID) AUDIT COMMITTEE STOCK EXCHANGE LISTING· The Ordinary shares of the Company are listedwith theColomboStock Exchange of Sri Lanka. REIGISTERED OFFICE· The Kingsbury Hotel ColomboNo. 48,Janadhipathi Mawatha, Colombo 01, Sri Lanka. Annual Report The Board ofDirectors present their Report and the Audited Financial Statements of theCompany for the year ended 31st March 2017.The particulars provided in thisprovide relevant information required by the Companies Act No. 07 of 2007 andthe Colombo Stock Exchange Listing rules and are guided by recommended best accountingpractices.
The Annual Report contains the following sections: Awards andRecognitionsFinancial HighlightsChairman’s and Managing Director’s ReviewBoard ofDirectorsSustainability ReportCorporate GovernanceRisk Management AnnualReport of the Directors on the Affairs of the CompanyStatement of Directors’ ResponsibilitiesRelatedParty Transactions Review Committee Report Audit Committee ReportIndependentAuditors’ ReportFinancial Statement Notes to theFinancial StatementsInformation to ShareholdersFive Year Financial Summary and KeyIndicators104 | Notice of Meeting 106 | Form of Proxy 107 | Corporate Structure – InnerBack Cover Directors ReportTheDirectors are responsible for the governance of the Company including theestablishment and maintenance of the Company’s system of internal control. Thedirectors report confirmed that the Financial Statements have been prepared andpresented in accordance with the Sri Lanka Accounting Standards. The DirectorReport covered the mentioned areas on the annual report. Such as, Review of theyear, Principal activity, Financial statements, Accounting policies, Directors’emoluments, Donations, Insurance, Employment, Internal controls, Investments,dividends etc. (Anon.
, 2017) Audit ReportInternal Audit Report The AuditCommittee comprises, three Independent Non-Executive Directors established bythe management to review and monitor the financial reporting process and themanagement process of the Company. The AuditCommittee chairman has confirmed that the internal audit committee is satisfiedwith the Company’s accounting policies, operational controls and the affairs ofthe Company are managed in accordance with the Company’s policies and theCompany assets are properly accounted for and adequately safeguarded. (Anon., 2017) ExternalAudit ReportAccording to Earnst & Young charted Accountants the Financial Statementsgive a true and fairview of thefinancial position of the Company as at 31 March 2017 and cashflow statement isalso prepared in accordance with Sri Lanka Accounting Standards. All the statementscomply with the requirements of section 151 of the Companies Act No. 07 of2007. CorporateGovernance Corporategovernance is a set of process and policies by which a company is directed,administered and controlled.
It is a legal requirement and every PLC mustadhere to it. Below are some of the best corporate governance practicesfollowed by The Kingsbury.· The company is headed by an effective board withcollective responsibility. · There is clear division between the chairman andthe chief executive.· The roles of chairman and chief executive arebeing performed by two separate individuals.
· There’s a balance between executive and non-executivedirectors in the board. · All directors are submitted for re-election atregular intervals. · There is a formal, rigorous and transparentappointment of directors and remuneration of directors. · The board maintains and reviews on Riskmanagement and internal control system. · The board hold Annual General Meeting once ayear. Accounting standards IAS 1 – Presentation of financial StatementsIAS 1 states that the objective of financial statement is toprovide information about the financial position, performance and cash flow ofan enterprise that is useful in making economic decisions. TheFinancial Statements of the Company which comprise the Statement of FinancialPosition, IncomeStatement, Statementof Other Comprehensive Income, Statement of Changes in Equity, Statement ofCash Flows and Significant Accounting Policies and Notes has been prepared inaccordance with Sri Lanka Accounting Standards and in compliance with therequirements of the Companies Act No.
07 of 2007. Financial statements provideinformation about an entity’s assets, liabilities, equity, income and expenses,including gains and losses. Thatinformation, along with other information in the notes, assists users offinancial statements in predicting the entity’s future cash flows and, inparticular, their timing and certainty. TheCompany’s management has made an assessment of its ability to continue as a Goingconcern and It has the resources to continue in business for the foreseeablefuture. Managementis aware that there is no any material uncertainty and the company has theability to continue as a going concern. Financial statements are prepared onthe going concern basis and the accounting policies applied are consistent withthose used in the previous year. IAS 7 – Statement ofCash flow Cash flow statement is an integral part of primary financialstatements. It helps the users assess liquidity, solvency, financialadaptability and future cash flows.
It is classified into operating activities, investing activitiesand financing activities. IAS 7 standard offers a choice of method for this part of thestatement of cash flows. Direct Method -Disclose major classes of gross cash receipts and gross cash payments. Indirect Method – Netprofit or lost is adjusted for the effects of transactions of a non-cashnature, any pre payments or accruals of past or future operating cash receiptsor payments and items of income or expense associated with investing orfinancing cash flows.