Nuwara Eliya Hotels Company PlcCSELK: NEH.N0000

Interim Financial Statements as at 31-03-2025

· Issued by Nuwara Eliya Hotels Company Plc

Company

Group

Unaudited

Audited

Unaudited

Audited

31.03.2025

Rs. '000

31.03.2024

Rs. '000

31.03.2025

Rs. '000

31.03.2024

Rs. '000

3,962,254

-18,544

1,984

444,996

380,970

3,220,309

-20,834

4,660

444,996

335,888

4,696,487

4,000

18,631

1,984

-380,970

3,890,812

5,200

21,090

4,660

-335,888

4,808,748

4,026,687

5,102,072

4,257,650

54,052

9,488

199,655

32,421

58,323

2,408,500

90,025

60,353

18,031

132,825

44,892

41,908

2,059,529

56,138

60,171

10,244

202,192

35,048

58,323

2,672,565

106,446

66,410

20,245

133,842

47,157

41,908

2,266,688

79,366

2,852,464

2,413,676

3,144,989

2,655,616

7,661,212

6,440,363

8,247,061

6,913,266

335,210

2,051,664

89,707

3,675,429

-

335,210

1,730,428

65,523

2,908,361

-

335,210

2,221,206

89,707

3,701,199

222,718

335,210

1,858,197

65,523

2,908,652

199,292

6,152,010

5,039,522

6,570,040

5,366,874

1,002,011

55,868

860,287

43,773

1,143,710

60,117

977,292

47,380

1,057,879

904,060

1,203,827

1,024,672

11,807

224,070

31,330

184,116

24,560

242,105

40,732

189,384

15,166

240,243

31,776

186,009

24,560

262,362

41,236

193,562

451,323

496,781

473,194

521,720

7,661,212

6,440,363

8,247,061

6,913,266

THE NUWARA ELIYA HOTELS COMPANY PLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION As At ASSETS Non Current Assets

Property, Plant and Equipment Right-of-use assets

Intangible Assets

Biological Assets Investment in Subsidiary

Non-Current Financial Assets

Current Assets

Inventories

WHT Recoverable

Trade and Other Receivables Prepayments

Other Current Financial Assets

Short-Term Investments - Fixed Deposits Cash and Cash Equivalents

Total Assets EQUITY AND LIABILITIES Equity

Stated Capital Revaluation Reserve

Fair value reserve of financial assets at FVOCI

Retained Earnings

Non Controlling Interest

Non Current Liabilities

Deferred Taxation

Retirement Benefit Obligations

Current Liabilities

Bank Overdraft

Trade and Other Payables Contract Liability

Tax Liability

Total Equity and Liabilities

Net Asset per Share (Rs.) 2,814 2,305 2,904 2,364

The above figures are provisional and subject to audit.

The Notes 1 to 8 form an integral part of these Financial Statements.

It is certified that the Financial Statements have been prepared in compliance with the requirement of the Companies Act No.7 of 2007

J P K Karunarathna Financial Controller Gerard G. Ondaatjie T.J. Ondaatjie Deputy Chairman Director 27th May 2025 THE NUWARA ELIYA HOTELS COMPANY PLC (Company)

Company

FOR THE TWELVE MONTHS ENDED

FOR THE THREE MONTHS ENDED

31.03.2025

31.03.2024

Variance

31.03.2025

31.03.2024

Variance

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

2,182,883

(428,607)

1,965,776

(458,301)

217,107

29,694

740,394

(117,224)

665,787

(133,091)

74,607

15,867

1,754,276

1,507,475

246,801

623,170

532,696

90,474

19,266

21,899

(2,633)

4,561

3,702

859

(418,770)

(366,086)

(52,684)

(109,323)

(100,663)

(8,660)

(170,079)

(171,390)

1,311

(48,368)

(55,301)

6,933

(255,206)

(327,627)

72,421

(45,717)

(92,661)

46,944

929,487

664,271

265,216

424,323

287,773

136,550

(129,706)

(117,130)

(12,577)

(35,209)

(29,943)

(5,267)

223,822

280,795

(56,973)

47,738

63,447

(15,709)

(680)

(967)

287

(218)

(185)

(33)

1,022,923

826,969

195,953

436,634

321,093

115,541

(296,263)

(246,005)

(50,258)

(87,894)

(91,710)

3,816

726,660

580,964

145,695

348,740

229,383

119,357

726,660

580,964

145,696

348,740

229,382

119,358

-

-

-

-

726,660

580,964

145,696

348,740

229,382

119,358

24,185

80,706

(56,521)

(52,356)

13,269

(65,625)

(6,553)

(8,379)

1,827

(6,553)

(8,379)

1,826

1,966

2,514

(548)

1,966

2,514

(548)

523,188

-

523,188

523,188

-

523,188

(156,956)

-

(156,956)

(156,956)

-

(156,956)

-

-

-

-

-

-

385,830

74,841

310,990

309,289

7,404

301,885

1,112,490

655,805

456,685

658,029

236,787

421,242

1,112,490

655,805

456,685

658,029

236,787

421,242

-

-

-

-

-

1,112,490

655,805

456,685

658,029

236,787

421,242

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Revenue

Cost of Sales

Gross Profit

Other Income

Administrative Expenses

Selling and Distribution Expenses

Other Operating Expenses

Profit /(Loss) from Operations

Depreciaton & Amortization

Finance Income

Finance Cost

Profit /(Loss) Before Tax

Income Tax Reversal/(Expenses)

Profit/(Loss) for the Period

Profit /(Loss) Attributable to :

Owners of the Company

Non Controlling Interest

Profit/ (Loss) For the Period

Other Comprehensive Income /(Loss)

Gain/(Loss) on Equity Instruments Designated at FVTOCI

Actuarial Gain/(Loss) on Retirement Benefit Obligation

Income Tax Effect on Actuarial Gain (Loss)

Revaluation of Land & Building

Income Tax Effect on Revaluation of Land & Building

Income Tax Rate Effect on Revaluation of Land & Building

Other Comprehensive Income/ (Loss) for the Period

Total Comprehensive Income /(Loss)

Total Comprehensive Income/(Loss) Attributable to :

Owners of the Company

Non Controlling Interest

Total Comprehensive Income /(Loss) for the Period

Basic Earnings per Share

332.41

265.66

159.53

104.83

Dividend per Share

-

36.50

-

-

Revenue & Profit (Company) for the Twelve Months Ended 31st March 2025

2500

2,183

2000

1,966

1500

1000

883

581

727

500

0

312

66

(39)

-500

21/22

22/23

Revenue

23/24

Net Profit

24/25

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

Rs in .Mn

The Notes 1 to 8 form an integral part of these Financial Statements.

THE NUWARA ELIYA HOTELS COMPANY PLC (GROUP)

Group

FOR THE TWELVE MONTHS ENDED

FOR THE THREE MONTHS ENDED

31.03.2025

31.03.2024

Variance

31.03.2025

31.03.2024

Variance

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

2,355,665

(453,304)

2,132,295

(484,837)

223,370

31,533

787,413

(123,432)

719,872

(139,956)

67,541

16,524

1,902,361

1,647,458

254,903

663,981

579,916

84,065

20,210

21,948

(1,738)

5,456

3,349

2,107

(466,800)

(408,389)

(58,411)

(121,921)

(111,495)

(10,426)

(190,306)

(192,007)

1,701

(51,509)

(61,825)

10,317

(295,481)

(374,223)

78,742

(57,648)

(106,610)

48,962

969,984

694,787

275,197

438,359

303,335

135,025

(140,454)

(129,623)

(10,832)

(37,535)

(31,419)

(6,117)

245,482

313,732

(68,250)

51,564

71,936

(20,372)

(794)

(1,358)

564

(237)

(242)

5

1,074,218

877,538

196,680

452,151

343,610

108,541

(313,202)

(296,232)

(16,970)

(97,009)

(102,436)

5,427

761,016

581,306

179,710

355,142

241,174

113,968

752,140

581,218

170,922

353,488

238,128

115,360

8,876

88

8,788

1,654

3,046

(1,392)

761,016

581,306

179,710

355,142

241,174

113,968

24,185

80,706

(56,521)

(52,356)

13,269

(65,625)

(6,558)

(8,709)

2,151

(6,557)

(8,709)

2,152

1,967

2,580

(613)

1,967

2,580

(613)

593,592

-

593,592

593,592

-

593,592

(171,037)

-

(171,037)

(171,037)

-

(171,037)

-

(21,378)

21,378

-

196

(196)

442,149

53,199

388,950

365,609

7,336

358,273

1,203,165

634,505

568,660

720,751

248,510

472,241

1,179,739

640,008

539,731

704,546

245,482

459,064

23,426

(5,502)

28,928

16,204

3,029

13,175

1,203,165

634,505

568,660

720,750

248,510

472,240

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Revenue

Cost of Sales

Gross Profit

Other Income

Administrative Expenses

Selling and Distribution Expenses

Other Operating Expenses

Profit / (Loss) from Operations

Depreciaton & Amortization

Finance Income

Finance Cost

Profit /(Loss) Before Tax

Income Tax Reversal/(Expenses)

Profit/(Loss) for the Period

Profit /(Loss) Attributable to :

Owners of the Company

Non Controlling Interest

Profit/ (Loss) For the Period

Other Comprehensive Income /(Loss)

Gain/(Loss) on Equity Instruments Designated at FVTOCI

Actuarial Gain/(Loss) on Retirement Benefit Obligation

Income Tax Effect on Actuarial Gain (Loss)

Revaluation of Land & Building

Income Tax Effect on Revaluation of Land & Building

Income Tax Rate Effect on Revaluation of Land & Building

Other Comprehensive Income/ (Loss) for the Period

Total Comprehensive Income /(Loss)

Total Comprehensive Income/(Loss) Attributable to :

Owners of the Company

Non Controlling Interest

Total Comprehensive Income /(Loss) for the Period

Basic Earnings per Share

344.06

265.78

161.70

108.83

Dividend per Share

-

37.00

-

-

Revenue & Profit (Group) for the Twelve Months Ended 31st March 2025

2,500

2,356

2,132

2,000

1,500

995

1,000

581

761

500

360

74

-

(45)

(500)

21/22

22/23

Revenue

23/24

Net Profit

24/25

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

Rs. in Mn

The Notes 1 to 8 form an integral part of these Financial Statements.

THE NUWARA ELIYA HOTELS CO. PLC

STATEMENT OF CHANGES IN EQUITY

For the period ended 31th March 2025

COMPANY

Stated

Revaluation

Fair value reserve of Financial Assets at FVOCI

Retained

Total

Capital

Reserve

Earnings

Equity

Rs '000

Rs '000

Rs '000

Rs '000

Rs '000

Balance as at 1st April 2023

335,210

1,775,423

(15,183)

2,368,269

4,463,719

Profit/(Loss) for the Period

-

-

-

580,964

580,964

Other Comprehensive Income

Gain (Loss) on Equity Instruments Designated at FVTOCI

-

-

80,706

-

80,706

Actuarial Gain/(Loss) on Retirement Benefit Obligation

-

-

-

(8,379)

(8,379)

Income Tax Effect on Actuarial Gain (Loss)

-

-

-

2,514

2,514

Total Comprehensive Income /(Loss)

-

-

80,706

575,099

655,805

Transactions with Owners of the Company, Recognized

Directly in Equity

Transferred to Retained Earnings

(44,995)

44,995

-

Preference Dividend

(212)

(212)

Ordinary Dividend

(79,790)

(79,790)

Total Transactions with Owners of the Company

-

(44,995)

-

(35,007)

(80,002)

Balance as at 31st March 2024

335,210

1,730,428

65,523

2,908,360

5,039,522

Balance as at 1st April 2024

335,210

1,730,428

65,523

2,908,360

5,039,522

Profit/(Loss) for the Period

-

-

-

726,660

726,660

Other Comprehensive Income

Surplus on Revaluation of Land & Building

523,186

523,186

Income Tax Effect on Surplus on Revaluation of Land and Buildings

-

(156,956)

-

(156,956)

Gain (Loss) on Equity Instruments Designated at FVTOCI

-

-

24,185

-

24,185

Actuarial Gain/(Loss) on Retirement Benefit Obligation

-

-

-

(6,553)

(6,553)

Income Tax Effect on Actuarial Gain (Loss)

1,966

1,966

Total Comprehensive Income /(Loss)

-

366,230

24,185

722,073

1,112,488

Transactions with Owners of the Company, Recognized

Directly in Equity

Transferred to Retained Earnings

-

(44,995)

-

44,995

-

Total Transactions with Owners of the Company

-

(44,995)

-

44,995

-

Balance as at 31th March 2025

335,210

2,051,663

89,708

3,675,428

6,152,010

GROUP

Attributable to the Equity Holders of the Parent Company

Stated

Revaluation

Fair value reserve of Financial Assets at FVOCI

3,675,428

Total

Non Controlling

Total

Capital

Reserve

Earnings

Interest

Equity

Rs '000

Rs '000

Rs '000

Rs '000

Rs '000

Rs '000

Rs '000

Balance as at 1st April 2023

335,210

1,919,046

(15,183)

2,368,502

4,607,575

204,795

4,812,370

Profit/(Loss) for the Period - - - 581,218 581,218 88 581,306

-

Other Comprehensive Income

Income Tax Effect on Surplus on Revaluation of Land and Buildings (15,855) (15,855) (5,522) (21,377) Gain (Loss) on Equity Instruments Designated at FVTOCI - - 80,706 - 80,706 - 80,706

Actuarial Gain/(Loss) on Retirement Benefit Obligation - - (8,624) (8,624) (85) (8,709)

Income Tax Effect on Actuarial Gain (Loss) - - 2,563 2,563 17 2,580

Total Comprehensive Income /(Loss) - (15,855) 80,706 575,157 640,008 (5,502) 634,506 Transactions with Owners of the Company, Recognized

Directly in Equity

Transferred to Retained Earnings - (44,995) - 44,995 - - -

Preference Dividend - - - (212) (212) - (212)

Ordinary Dividend - - - (79,790) (79,790) - (79,790)

Total Transactions with Owners of the Company - (44,995) - (35,007) (80,002) - (80,002) Balance as at 31st March 2024 335,210 1,858,197 65,523 540,150 5,167,581 199,292 5,366,875

Balance as at 1st April 2024

335,210

1,858,197

65,523

2,908,652

5,167,581

199,292

5,366,874

Profit/(Loss) for the Period

-

-

752,140

752,140

8,876

761,016

Other Comprehensive Income

Surplus on Revaluation of Land & Building

575,404

575,404

18,188

593,592

Income Tax Effect on Surplus on Revaluation of Land and Buildings

-

(167,399)

-

-

(167,399)

(3,638)

(171,037)

Gain (Loss) on Equity Instruments Designated at FVTOCI

-

-

24,185

-

24,185

-

24,185

Actuarial Gain/(Loss) on Retirement Benefit Obligation

-

-

-

(6,557)

(6,557)

(1.3)

(6,558)

Income Tax Effect on Actuarial Gain (Loss)

1,967

1,967

0.3

1,967

Total Comprehensive Income /(Loss)

-

408,005

24,185

747,550

1,179,739

23,426

1,203,165

Transactions with Owners of the Company, Recognized

Directly in Equity

Transferred to Retained Earnings

-

(44,995)

-

44,995

-

-

-

-

(44,995)

-

44,995

-

-

-

Balance as at 31th March 2025

335,210

2,221,206

89,708

3,701,197

6,347,321

222,718

6,570,040

The Notes 1 to 8 form an integral part of these Financial Statements.

THE NUWARA ELIYA HOTELS CO. PLC CONSOLIDATED CASH FLOW STATEMENT

Company

Group

Unaudited

Audited

Unaudited

Audited

31.03.2025

31.03.2024

31.03.2025

31.03.2024

Rs.'000

Rs. '000

Rs.'000

Rs. '000

1,022,923

826,969

1,074,218

877,538

126,808

115,545

137,429

127,868

2,898

2,412

3,026

2,582

952

(391)

952

(391)

-

-

1,200

1,135

(39)

(559)

(39)

(559)

17,155

9,850

18,287

11,099

30

371

30

648

(207,407)

(274,195)

(229,067)

(307,132)

(4,960)

(2,759)

(4,960)

(2,759)

2,521

9,061

2,521

9,061

(2,516)

(4,827)

(2,516)

(4,827)

(16,415)

(6,600)

(16,415)

(6,600)

(218)

(2,221)

(218)

(2,221)

941,731

672,656

984,448

705,442

6,301

(1,028)

6,239

(764)

(45,816)

(137,220)

(46,240)

(139,563)

(9,402)

20,301

(9,460)

19,145

(17,996)

119,700

(22,079)

122,118

874,818

674,409

912,908

706,378

(339,070)

(31,103)

(347,680)

(36,480)

(30)

(371)

(30)

(647)

(5,060)

(2,796)

(5,555)

(4,215)

530,658

640,139

559,643

665,035

(346,672)

(126,756)

(350,576)

(128,926)

-

2,221

-

2,281

(575)

(12,831)

(575)

(12,831)

-

-

-

(6,000)

4,960

2,759

4,960

2,759

180,095

363,627

195,683

406,951

2,561

3,131

2,561

3,131

(747,223)

(794,201)

(798,057)

(834,608)

422,836

41,890

422,836

41,890

(484,018)

(520,160)

(523,168)

(525,353)

-

(68,317)

-

(68,317)

-

(15,998)

-

(28,797)

-

(84,315)

-

(97,114)

46,640

35,664

36,475

42,568

31,577

(4,086)

54,805

12,238

78,218

31,578

91,280

54,806

90,025

56,139

106,446

79,366

(11,807)

(24,560)

(15,166)

(24,560)

78,218

31,578

91,280

54,806

For the period ended 31th March 2025 Cash Flows from Operating Activities

Profit/(Loss) Before Tax

Adjustments for:

Depreciation of Property, Plant and Equipment Amortization of Intangible Assets

Expected Credit Losses on Trade Debtors & Fixed Deposit (Net) Depreciation of Right-of-Use Assets

Write Back of Unclaimed Dividends Provision for Retirement Benefit Obligation Interest Expenses

Interest Income Dividend Income

Exchange (gain)/loss on USD Fixed Deposits Fair Value Gain on Biological Assets

(Gain)/ Loss on Equity Investments FVTPL

(Profit)/ Loss from Disposal of Property, Plant and Equipment

Operating Profit Before Working Capital Changes

Decrease/( Increase) in Inventories

Decrease/( Increase) in Trade and Other Receivable Increase/( Decrease) in Contract Liabilities Increase/( Decrease) in Trade and Other Payables

Cash Generated From Operations

Income Tax Paid Interest Paid

Retirement Benefit Obligation Paid

Net Cash from Operating Activities

Cash Flows from / (Used in ) Investing Activities

Purchase of Property, Plant & Equipment

Proceeds from Disposal of Property, Plant & Equipment Acquisition of Intangible Assets

Acquisition of Right of Use Asset Dividend Received

Interest Received

Sale of Biological Assets Investment in Fixed Deposits Upliftment of Fixed Deposits

Net Cash Flows Used in Investing Activities

Cash Flows from / (Used in ) Financing Activities

Dividend Paid Repayment of Bank Loan

Net Cash from /(Used) in Financing Activities

Net (Decrease) / Increase in Cash & Cash Equivalents Net Cash & Cash Equivalents at the Beginning of the Year Net Cash & Cash Equivalents at the End of the Period NET CASH AND CASH EQUIVALENTS Components of Cash and Cash Equivalents

Cash and Cash Equivalents Bank Overdraft

Net Cash & Cash Equivalents at the End of the Period

The Notes 1 to 8 form an integral part of these Financial Statements.

THE NUWARA ELIYA HOTELS CO. PLC

NOTES TO THE FINANCIAL STATEMENTS

1.

Corporate Information

The Nuwara Eliya Hotels Co. PLC is a public limited liability company incorporated and domiciled in Sri Lanka listed on the Colombo Stock Exchange. The Interim Financial Statements of the Company and the Group for the period of 03 months ended 31th March 2025 were authorised for issuing by the Board of Directors on 27th May 2025.

2.

Basis of Preparation

The Interim Financial Statements of the Company and the Group have been prepared on the basis of the same accounting policies and methods of computation applied for the year

ended 31st March 2025 are in compliance with the Sri Lanka Accounting Standard 34 - Interim Financial Reporting.

3.

Basis of Consolidation

The Group accounts comprise the consolidation of accounts of the Nuwara Eliya Hotels Co. PLC (the company) and the subsidiary, Fair View Hotel (Pvt) Ltd. Inter company balances,

transactions and any unrealized gains, arising from inter company transactions are eliminated in preparing the Consolidated Financial Statements.

4.

Equity Instruments Designated at Fair Value Through OCI

Equity Instrument Designated at Fair Value Through OCI, reflected under Non-Current Financial Assets is stated at market price as at 31th March 2025.

5.

Share Information

5.1

The Public Share Holders as at 31st March 2025 was 684 holding 10.76% - (31st March 2024 - 10.76%).The Company is compliant with the minimum public holding

requirement under option 2 of 7.13.1(b)

5.2

Float Adjusted Market Capitalisation as at 31st March 2025 was Rs. 514,127,533.00

5.3

Directors' Shareholding

As at

31.03.2025

Ordinary Shares

No. of Shares held

%

Mr. J H P Ratnayeke

327

0.01%

Mr. G G Ondaatjie

238,088

10.89%

Ms. A M Ondaatjie

219,737

10.05%

Mr. T J Ondaatjie

219,737

10.05%

Mr. M K K K B Galagoda

-

0.00%

Mr. S K Abeysundara

-

0.00%

Mr. G H R Fernando

-

0.00%

Mr. S M S S Bandara

-

0.00%

Ms. H M S Herath

-

0.00%

Mr. A M Iddamalgoda

-

0.00%

THE NUWARA ELIYA HOTELS CO. PLC

NOTES TO THE FINANCIAL STATEMENTS (Cont.)

As at

31.03.2025

No. of Shares held

%

Mercantile Investments and Finance PLC

571,068

26.12%

Nilaveli Beach Hotels (Pvt) Ltd

443,390

20.28%

G G Ondaatjie

238,088

10.89%

A M Ondaatjie

219,737

10.05%

T J Ondaatjie

219,737

10.05%

Tangerine Tours (Pvt) Ltd

150,230

0

6.87%

Security Ceylon (Pvt) Ltd

66,372

3.04%

Mercantile Fortunes (Pvt) Ltd

40,816

1.87%

D Grimshaw

27,797

1.27%

C G Senanayake

24,789

1.13%

The Ceylon Investors (Pvt) Ltd

24,646

1.13%

S R S de Saram

20,250

0.93%

J A de Silva & Co. Ltd

16,298

0.75%

G A G Punchihewa

12,860

0.59%

D P Navaratnam

8,745

0.40%

M P D Cooray

7,020

0.32%

A D Dadabhoy

5,646

0.26%

S Abishek

4,254

0.19%

D P Marasinghe

3,938

0.18%

N K Flemming

3,550

0.16%

5.5

Stated Capital

Stated Capital is represented by shares in issue as given below.

31.03.2025 31.03.2024

Number

Rs.

Number

Rs.

Ordinary Shares

2,186,040

335,151,740

2,186,040

335,151,740

7% Cumulative Participating Preference Shares

5,800

58,000 5,800 58,000

2,191,840

335,209,740

2,191,840

335,209,740

The holders of Preference shares are entitled to a fixed dividend of 7% per annum.

5.6

Net Assets per Share

Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 31st March 2025.

5.7

Earning per Share

Earnings per share has been calculated by dividing profit attributable to ordinary equity holders by the weighted number of ordinary shares outstanding during the year.

5.8

Market Price of The Nuwara Eliya Hotels Co. PLC for the Three Months Ended

31.03.2025

31.03.2024

Highest Market Value per Share

Lowest Market Value per Share

Closing Market Value per Share

Last Traded Market Price per Share

Rs.

2,329.00

Rs.

2,030.00

Rs.

2,185.75

Rs.

2,185.75

Rs.

1,998.75

Rs.

1,450.00

Rs.

1,725.75

Rs.

1,725.75

6.

Seasonality of Operation

There was no seasonality/cyclicality impact on the operations of the company which need to be disclosed.

7.

Contingent Liabilities

The Company has contingent liabilities in respect of legal claims arising in the ordinary course of business. Based on currently available information and legal advice,

the Directors believe that the ultimate resolution of these matters is unlikely to result in a material adverse impact on the Company's financial position, results of

operations, or liquidity Accordingly, no provision has been recognized in the financial statements as of 31 March 2025.

As at the reporting date, there were no material contingent liabilities other than those disclosed below:

Institution

Nature of the Claim

Labour Tribunal

Claim for reinstatement, unpaid salary, and compensation.

Labour Tribunal

Claim for unpaid salary and compensation.

Case Number

09/NE/08/2025

09/NE/20/2024

Although the outcomes of the above legal proceedings cannot be predicted with certainty, the Directors are of the opinion that no material liability is likely to arise.

In addition, the Municipal Council has made a claim amounting to 0.6% of the Company's turnover for the issuance of trade licenses for the financial years 2023

and 2024. The Company disputes this claim and legal proceedings are currently ongoing at the Nuwara Eliya magistrate Court. As of 31 March 2025, the estimated

contingent liability in respect of this matter is Rs. 27.1 million.

8.

Events Occurring After the Reporting Date

Subsequent to the date of financial position, no circumstances have arisen which would require adjustment to or disclosure in the Financial Statements.

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