everyday is

everyday is
ASIAN HOTELS AND PROPERTIES PLC • Annual Report 2011/12

Contents
Corporate Mission 2
Business Values 3
Chairman’s Statement 6
Operational & Marketing Review 7
Board of Directors 14
Annual Report of the Board of Directors 16
Risk Management 20
Corporate Governance 23
Sustainability Report 34
Proud Moments 58
Human Resources 60
Statement of Directors’ Responsibility 65
Report of the Audit Committee 68
Independent Auditors’ Report 69
Balance Sheet 70
Income Statement 71
Statement of Changes in Equity 72
Cash Flow Statement 73
Notes to the Financial Statements 74
Consolidated Value Added Statement 92
Information to Shareholders & Investors 93
5 Year Financial Review of the Group 95
5 Year Financial Summary Cinnamon Grand Hotel 96
5 Year Financial Summary Property Development Division 97
Notice of Meeting 98
Form of Proxy 99
Corporate Information Back Inner Cover

Here at Asian Hotels and Properties
PLC, we ensure that every day is a new
experience, a new way to see the world
and a new way to taste the best that life
has to offer.
That is why our hotels and properties are
geared to cater to the varied needs and
requirements that make your everyday far
from the ordinary. Whether it’s through
creating a shopper’s paradise at Crescat
Boulevard or a relaxing moment at the
Angsana City Club and Spa, or even
waking up to a Colombo horizon at the
Monarch Residencies, we make every day
different and one to remember.
[
everyday is
]
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
1

[ corporate mission ]
To generate long-term, sustainable,
shareholder wealth by developing the
capacity to add value to land, buildings and
related investments and combine them uniquely
so that they complement and reinforce each
other.
Rs. Rs.
2.5bn
Group Profit after tax
[ group financial highlights of 2011/12 ]
Year ended 31st March 2012 2011
Rs.’000 Rs.’000
Revenue 8,861,173 7,457,325
Gross Profit 4,431,942 3,647,845
Net Profit After Tax Before Minority Interest 2,507,400 2,147,886
Shareholders’ Funds 14,981,064 13,719,226
Market Capitalisation 34,536,473 41,598,805
Earnings Per Share (Rs.) 4.86 4.01
Market Value Per Share (Rs.) 78.00 187.90
Debt Equity Ratio (%) 0.75 0.65
Current Ratio (Times) 2.47 2.22
Dividend Per Share (Rs.) 2.00 0.50
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
2
8.8bn
Group Revenue

[ business values ]
To provide a return on investment above the risk
free investment rate to shareholders. To increase
productivity of the workforce and provide training
in order to improve their knowledge, skills and
attitudes and to optimise the use of available
resources. To adhere to the highest levels of
integrity, transparency and ethical conduct.
Rs. Rs.
2.0bn
Company Profit after tax
[ financial calendar 2011/12 ]
Interim Reports
1st Quarter 25th July 2011
2nd Quarter 4th November 2011
3rd Quarter 3rd February 2012
Annual Reports
2010/11 26th May 2011
2011/12 25th May 2012
Meetings
17th Annual General Meeting 27th June 2011
18th Annual General Meeting 25th June 2012
Dividends
First & Final Dividend of Rs. 2/- per share
for the year 2010/11 was paid on 20th May 2011
Interim Dividend of Rs. 1/- per share
for the year 2011/12 was paid on 24th April 2012
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
3
6.4bn
Company Revenue

Changing the skyscape of the commercial city of
Colombo, while adding value to the entirety of
the condominium industry of Sri Lanka, Asian
Hotels and Properties PLC are pioneers in
transforming luxury apartment living. From
world class architectural finishes to infusing
state of the art technology into living
milieus and adding unmatched views
through artful designs, these properties
have set industry standards and added
value to the entirety of property
development in the country.

[ chairman’s statement ]
The consistent growth paradigms the Group has displayed reflects the
aggressive stance we embarked upon, especially in the last five years which
gained momentum post war. This stance saw us pursue the strong belief
that Sri Lanka as a country will undoubtedly enjoy an unprecedented growth
trajectory in which we can assuredly be key drivers.
Susantha Ratnayake
I am pleased to present to you the
Annual Report and Statement of
Accounts for the year ending 31st March
2012 for Asian Hotels and Properties
PLC.
The global tourism industry saw growth
of 5.7% in the first two months of 2012
compared to the comparative period in
2011 as detailed by the World Tourism
Organisation, indicative that demand
remained strong in both advanced and
emerging economy destinations. Arrivals
grew by 4.4% in 2011 and reached 980
Mn, which is an increase over the 2010
figure of 939 Mn. Similarly, Sri Lanka’s
tourism industry broke all records this
year with arrivals of 855,975 by end
2011 and the first three months of 2012
also reflecting similar trends. In total,
arrivals saw an increase of 31% in 2011.
Eastern Europe displayed the highest
arrivals growth, with a gain of 59% with
East Asia growing at 40.3% from April
2011 to March 2012. December 2011
saw the highest number of arrivals in a
month at 97,517 visitors. Average spend
increased to US $97 per night, which is
indicative that the tourist profile arriving
to Sri Lanka is transforming to a more
discerning one.
Performance Overview
Aligned to our Report’s theme this year,
‘Every Day is Different’, you will see that
the Group has continued to raise the
bar in both the property development
and leisure sectors. Our ethos is for our
customers to have delightful experiences
and therefore, each day is different, with
new experiences, new ideas and new
innovations to look forward to.
The Group exceeded its revenue base
by Rs. 1.4 Bn this year, with total
revenue of Rs. 8.8 Bn, a 19% growth
over last year’s revenue of Rs. 7.4 Bn.
PBT and PAT grew by 22% and 17%
respectively. PBT for the year under
review increased by Rs. 475 Mn to
Rs. 2.65 Bn, and PAT increased to
Rs. 2.5 Bn from Rs. 2.1 Bn. Earnings
Per Share (“EPS”) was Rs. 4.86, which is
a gain of 21%.
Cinnamon Lakeside was adjudged the
Best Five Star City Hotel at the Tourism
Awards this year, following in the
footsteps of Cinnamon Grand Colombo,
which won this award for three
consecutive years and gained entry into
the Tourism Hall of Fame.
Cinnamon Grand Colombo
Our undisputed flagship hotel under
the Cinnamon umbrella, Cinnamon
Grand Colombo has continued to set
benchmarks, with quality, standards,
innovations, products and service levels
seeing significant improvement across
the board. The hotel posted room
revenue of Rs. 1.9 Bn compared to last
year’s Rs. 1.4 Bn. Occupancy was at
an average 70.2%, a marginal decline
from 73% last year. 128,675 room
nights were sold, a room share that is
the highest among city hotels at 32%.
With thirteen F&B outlets and the largest
number of banquet rooms, it hosted the
largest number of F&B covers among
the city hotels during the year at over
906,000. This is despite three outlets
being closed for refurbishment for three
months of the year under review. Total
F&B revenue saw a 15% increase to
Rs. 1.6 Bn, with restaurant revenue
increasing 15% and exceeding the
Rs. 1 Bn mark and banquet revenue
gaining 16% to contribute Rs. 645 Mn.
Total revenue increased by 26% to
Rs. 3.8 Bn and PBT increased by 71%
to Rs.1.18 Bn.
Cinnamon Lakeside Colombo
Following its Rs. 500 Mn refurbishment
and rebranding exercise, Cinnamon
Lakeside saw PBT increasing to Rs. 748
Mn compared to last year’s Rs. 685 Mn,
which included an increase in fair value
of investment property of Rs. 99.8 Mn.
Occupancy was 55%, with 69,616 room
nights sold during the year. There was a
marked increase in the MICE customer
segment, which rose to 22% from last
year’s 14% and emerged as the highest
contributor in room share. From a
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
6
revenue perspective, the hotel retained
a city hotel revenue share of 17.7%,
generating Rs. 1.0 Bn.
A new General Manager was appointed
during the year, while the hotel also
launched a unique floating restaurant
on the Beira Lake, “8 Degrees” with a
maximum capacity of 100 pax.
Property Development
The year saw the completion and
handing over of Emperor, one of the
landmark projects under the Asian
Hotels and Properties PLC property
development umbrella. 162 of the 163
units in Emperor, the 35 storey luxury
apartment complex were sold, final
tranches received, apartments handed
over and the management given over to
a Council comprising unit owners. With
the completion of three property projects
within this site, the continuing revenue
streams for this sector in the short term
will be mainly from Crescat Mall.
Crescat Boulevard, achieved a
revenue of Rs. 218 Mn. A back-end
refurbishment saw an upgrading of the
services in this complex. The Boulevard
saw a footfall increase of 12% during
the year and continues to be a popular
shopping venue.
Conclusion
I would like to thank our clientele who
have remained immensely loyal to
us, our teams at Cinnamon Grand,
Cinnamon Lakeside and the property
division for their hard work and
commitment and the Board of Directors
and all our stakeholders for their support
during the year.
Susantha Ratnayake
Chairman
Asian Hotels and Properties PLC
25th May 2012

[ operational & marketing review ]
Management Discussion & Analysis
We have just completed a year of great
performance for both our property
development and hotel sectors. Under
Asian Hotels and Properties PLC, it is
an underlying ethos that ‘Every Day is
Different’ because the products and
services we offer under both these
sectors are designed to continually
improve on the benchmarks we have
set. Each day, our benchmarks are set
higher as the experience we want to give
our customers is built on excellence.
Excellence to us is a bar that continues
to move upwards and onwards; and
hence, our team has to strive to achieve
these hallmarks of excellence, each day,
in a different way. This can be done only
if we treat each day differently, where
we bring in new ideas, new innovations
and new concepts to the fore, shape
and develop them to meet our goals,
while using them to etch our leadership
status. This then forms the foundation
of indelible memories that will continue
to improve with each passing day.
Operating Environment
Globally, the hospitality industry
continued to gain momentum
despite the Eurozone Crisis, the Arab
Spring, Occupy Wall Street and even
catastrophic natural disasters not
imposing a negative on the psyche of
the global traveller. As detailed in the
World Tourism Barometer published by
UNWTO, international tourism hit new
records, seeing arrivals grow by 4.4%
to 980 million. Dispelling all theories of
the Eurozone crisis having a negative
effect on international travel, by region,
Europe emerged the best performer
with 6% growth and 503 million tourist
arrivals into Europe, surpassing the
half a billion mark. Unlike in other
years, higher growth was also seen in
advanced economies and emerging
markets, which stood at 5% and 3.8%
respectively. Asia and the Pacific
saw arrivals top 11 million, reaching
a total of 216 million tourists with
both South Asia and South East Asia
gaining massive advantages of huge
intra-regional demand. The Americas
saw an increase of 4%, an increase of
6 million arrivals reaching 156 million,
with South America showing consistent
gains with 10% increase for the second
consecutive year. Africa maintained
arrivals at 50 million, offset by the losses
in North Africa which declined by 12%.
The Middle East also lost an estimated
5 million arrivals totaling 55 million
although, some destinations including
Saudi Arabia, the UAE and Oman
sustained steady growth.
The positive trend in arrivals was
augmented with the tourism receipts
in 2011 which exceeded US $1 Tn for
the first time, inclining 3.8% from US
$928 Bn in 2010. It was posted at US
$1,030 Bn by end 2011. Of the top
ten tourist destinations, Hong Kong’s
earnings topped a 25% growth, while
the USA had 12% and Spain 9%. From
a regional perspective, the Americas
saw its receipts gain 5.7% the largest
increase in receipts, followed by Europe
with 5.2% and Asia and the Pacific by
4.3%. Only the Middle East as a region
posted negative growth which was
detailed at a 14% decline.
Further augmenting the paradigms,
encouraging results were seen across
the globe in the first two months of 2012
when international tourist arrivals grew
by 5.7%, surpassing the 131 million
mark in the comparable period of the
105,000
90,000
75,000
60,000
45,000
30,000
15,000
0
January
February
March
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
April
7
May
June
first two months of 2011, with demand
remaining strong in both advanced
and emerging economies. This further
strengthens the belief that the year
can expect sustained growth despite
challenging economic conditions, well
exampled by Europe, which performed
well above expectations, showcasing
growth of 5% buoyed by strong growth
in arrivals to Central and Eastern Europe.
With the exception of the Middle East,
which however bettered its arrival
numbers to stand at only 1% negative
growth, all regions showed an incline
with South East Asia and South Asia
leading growth in the sub-region with a
10% increase. It is strongly believed,
that international tourist arrivals will
remain on this positive even keel and
increase by 4% in 2012 and reach the
one billion mark for the first time in
history.
In Sri Lanka, according to the
Development Policy Framework
launched by the Government, a
sustainable Tourism Development
Strategy was established, encompassing
a target of attracting 2.5 million highend
tourists by 2016 onto the shores
of the country. The five year master
plan, conceptualised by the Ministry
of Economic Development addresses
a range of issues and objectives that
require focus to achieve the set targets.
Tourist Arrivals by Months (Source : Sri Lanka Tourism)
2010
2011
July
August
September
October
November
December

[ operational & marketing review
contd.... ]
Among the key objectives, the strategy
intends to construct foundations within
the industry that will attract US $3,000
Mn as FDIs, increase tourism related
employment to 500,000 while expanding
tourism based industries and services
around the country, distribute economic
benefits ensuing from the industry to
a larger cross section of society and
integrate tourism into the real economy.
This also includes increasing foreign
exchange earnings to US $2.75 Bn and
positioning Sri Lanka as the world’s
most treasured island for tourism.
With the demand earmarked at 2.5
million tourists, there will be a need of
at least 45,000 hotel rooms to cater
to this need and according to the Sri
Lanka Tourism Development Authority.
The shortfall is now being expressly
addressed by the industry with most
current facilities being refurbished and
upgraded and wherever possible,
and expansion taking place. This was
seen in both the resort and city hotel
milieu in the last year with nearly all
five star city hotels as well as resorts
around the country undertaking
numerous refurbishment and capacity
enhancement initiatives, some of
which are on-going, in a bid to improve
the product offering and expand
accommodation capabilities.
Total tourist arrivals into the country
in 2011 exceeded forecasts to see
the country hosting 855,975 visitors
reaping in a total of US $ 830 Mn in
earnings, while the first three months of
2012 also exceeded expectations with
a total of 260,525 arrivals. December
topped arrivals with 97,517, while
in a new trend discerned, March of
2012 saw a high of 91,102. From a
regional perspective, Western Europe
brought in a total of 315,210 tourists,
a significant increase from 256,861
arrivals, with the UK, despite being
within the embattled Eurozone, being a
large arrivals contributor with 106,082
arrivals until end 2011. Continuing the
paradigm of longer stay tourists coming
in from Western Europe, guests stayed
an average of 10.3 nights, although, this
seemed to be the germane trend among
North America, (10.4 nights’ stay), the
Middle East (10.2 nights) and Eastern
Europe (10.1 nights) with Australasia
comprising primarily Australia and New
Zealand seeing a high of 10.5 nights per
guest.
South Asia too contributed handsomely
to the arrivals counter seeing a marked
increase from 175,694 to 237,647.
India, as it has for the last few years,
brought in the largest number from this
region, topping 171,374, compared
to 126,882 last year. The country
expects to exceed the one million arrival
milestone this year and is well on its way
to doing so, given the paradigms seen
thus far.
City hotels in Sri Lanka meanwhile
collated a total of 404,006 rooms with
an annual occupancy rate of 56.5%.
Group Overview
For AHPPLC Group, it has been a
noteworthy year of accomplishment and
achievement. Group Revenue increased
by Rs 1.4 Bn, a YOY change of 19%,
posted at Rs 8.8 Bn, a significant gain
from Rs 7.4 Bn of last year. Similar
trends were seen in Profit Before Tax
which increased 22% to Rs 2.6 Bn from
the last year figure of Rs 2.1 Bn. This
Rs. ‘000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Group Revenue Vs. NPBT
2007/08
2008/09
2009/10
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
2010/11
Revenue
Profit after Tax
8
2011/12
was also reflected in the Profit After Tax
YOY standing, which saw growth of
17%, increasing Rs 359 Mn to Rs 2.5
Bn from Rs 2.1 Bn.
With Cinnamon Lakeside also being
crowned Best Five Star City Hotel at
the Tourism Awards, it gives AHPPLC
a sense of pride that both city hotels
under our umbrella now have the status
of Best Five Star City Hotel in Sri Lanka.
This is certainly an achievement given
that Sri Lanka’s five star city hotel
milieu does have international hotel
chains operational and this indigenous
brand has gained leadership in a highly
competitive environment.
This strong performance therefore was
amply reflected when the Group’s EPS
saw a notable gain of 21% to Rs 4.86
per share.
Cinnamon Grand Colombo
Continuing to set trends and
benchmarks, improving quality and
standards as a matter of course to
ensure it remains the leader in the
city hotels milieu, Cinnamon Grand
Colombo was this year, in a mode of
consolidation. Having already won the
prestigious Presidential Awards as the
Best Five Star City Hotel thrice and the
Hall of Fame Award, amidst numerous
other kudos, the macro environment
warranted the hotel to take stock, reflect
on the envisaged competition, focus on
its sustainability footprint and establish
further rudiments to achieve its vision.
However, this did not deter it from
achieving its KPIs and in most cases
exceeding it, proving that it continued
to retain its market leadership in this five
star city hotel sector.
Total revenue showed considerable
growth of 26% to top Rs 3.8 Bn
compared to Rs 3.0 Bn for 2010/11,
while Profit Before Tax gained quite
a momentous incline of 71%, to be
showcased at Rs 1.1 Bn from last year’s
Rs 696 Mn. This is doubly momentous
as Cinnamon Grand is the very first hotel
under the John Keells Leisure umbrella
to surpass the milestone of Rs. 1 Bn in

Rs. ‘000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2007/08
Cinnamon Grand
Revenue Vs. NPBT
2008/09
2009/10
2010/11
Revenue
NPBT
profitability. There are two dimensions
to the raison d’etre for this extraordinary
profitability rise. Firstly, that the minimum
rate increased to US $125 from the
floor rate of US $75 and secondly, the
free float of the dollar having a positive
impact on earnings capacity.
The hotel sold a total of 128,675 rooms
for the period under review, a marginal
decline from 133,524, which was also
reflected in occupancy average of
70.2%, a slight drop from 73% last year.
This decline in city hotel room nights
sold is seen across the board with
the market displaying a 4% negative
growth over last year’s figure of 421,657,
which this year stands at 404,006 room
The country’s only Five Star South Indian restaurant, Chutneys at Cinnamon Grand
2011/12
nights. However, room revenue was
unprecedented as the hotel posted Rs
1.9 Bn in revenue, a definite increase
of 35% from Rs 1.42 Bn last year. This
is attributed to the minimum room rate
policy being stringently applied and
considerable value additions augmenting
Rs.
12,000
10,000
8,000
6,000
4,000
2,000
0
Rev PAR Comparison
2010/11
CG
City
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
2011/12
the hotel’s product and service offerings.
Room Rev PAR hence saw a significant
increase of Rs 10,482, compared to
last year’s Rs 7,796 and is the highest
among Five Star City Hotels. It is
interesting that across the five star city
hotels, there was an increase in the
business/corporate segment which
saw a gain of 7%, with Cinnamon
Grand, also echoing similar paradigms
but commanding a higher percentage
of 11% than the industry average.
9
Business/corporate travellers accounted
for 67,984 stays, while other sectors like
Leisure, MICE and Crew all had slight
declines.
Cinnamon Grand continues to hold
top market share of 32% among city
hotels in room share, mirrored similarly,
in revenue share of 32.6%. The Yield
Premium stands at 127% for the year,
50% Room Revenue Share
2010/11
49%
Cinnamon Grand
Cinnamon Lake
Other City Hotels
Room Revenue Share
2011/12
Cinnamon Grand
Cinnamon Lake
Other City Hotels
18%
18%
32%
33%

a marginal increase from last year’s
126.3%, while penetration also gained a
percentage to stand at 124%.
Of the thirteen F&B outlets located within
the hotel, three underwent refurbishment
which began at the beginning of
2012. Despite revenue streams being
somewhat curbed due to this, total
Rs. Mn
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
[ operational & marketing review
contd.... ]
2007/08
F&B Revenue Growth
2008/09
2009/10
2010/11
2011/12
F&B revenue (comprising Banquets and
Restaurants & Bars) saw a growth of
15% to Rs 1.65 Bn from Rs 1.43 Bn.
Restaurants & Bars serviced a total of
704,010 covers and gained earnings of
Rs 1.0 Bn, while banquets contributed
Rs 645 Mn in revenue servicing 202,424
covers. The hotel continued being the
only city hotel to have a ‘Seven Day
Indulgence Menu’ with each day of the
22%
F&B Covers
2011/12
Restaurants
Banquets
78%
week earmarked to promote an outlet
with a unique promotional feature,while
also being the city hotel to have the
highest number of buffet options on a
Sunday.
This extraordinary performance also
saw the hotel’s service charge levels
continuing its sustained trend of being
above industry average. While average
service charge from April 2011 to March
2012 across the city hotels was Rs
25,486, average service charge paid
by Cinnamon Grand was Rs 28,871
per month per associate. It is also
significant that the hotel gives the same
rate of service charge to every single
Rs.
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2008/09
Service Charge
2009/10
2010/11
associate with no differentiation of grade
or standing, a practice that is unique to
this hotel. While December 2011 saw
the highest payout of Rs 37,134, March
2012 was next with Rs 34,205.
Cinnamon Grand continued to be the
preferred host hotel for a number of
high profile international events as
well as being the official host for the
Sri Lankan Cricket Team when they
play tournaments in Colombo. For the
Australian Cricket Tour this year, besides
being the official host hotel for both
teams, the hotel also provided ground
catering services at the match venues in
Colombo.
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
10
2011/12
Sri Lanka’s tourism potential, not only for
leisure but as an investment destination
saw the hotel host a number of high
powered delegations from diverse
industries across the globe. It is also
pertinent to note that despite the brand
being an indigenous one and global
hotel chains being present in Sri Lanka,
Cinnamon Grand has truly become the
preferred host hotel for international
conventions and workshops. This
year, it hosted the International Tea
Convention, MESA Partners Conference
organised by KPMG, The South Asian
Conference on Sanitation under the
Ministry of Water Supply & Drainage, the
South Asian Federation of Obstetrics
and Gynecologists Conference, the IBM
International Regional Summit, the 37th
Kiwanis Asia Pacific Annual Convention,
Asia Pacific Consulting Engineers’
Conference and the MENASA Learning
Providers Conference organised
by the Association of Chartered
Certified Accountants. Our prowess
was even further evidenced, when
Cinnamon Grand was selected by the
Commonwealth Games Committee
of Sri Lanka as the official hospitality
partner which included the organisation
of a banquet for international dignitaries
at the Marriott Hotel, St. Kitts.
With the last year earmarked as one of
consolidation, there was a concerted
effort in ensuring that apt leadership was
established to drive the processes and
systems that are needed to succeed
in the new competitive milieu. There
was an astute process of restructuring
among the Heads of Department
heading key areas, where roles and
responsibilities were reviewed, analysed
and redirected towards the objectives
being mapped out. In tandem, systems
and processes were reviewed as were
the thought processes that were needed
to ensure that Cinnamon Grand remains
on the trajectory chartered. There was
and continues to be heavy concentration
on training and development, while
product development is continually
reviewed as well, which set into motion
the refurbishment initiative of the
Breeze Bar, Taprobane and London Grill
restaurants.

The year ahead will be busy with
Cinnamon Grand already earmarked
to host the Commonwealth
Parliamentarians Conference and
the World Cup T20 teams among
other high profile events. The Leisure
customer segment however may not
see growth going forward, but there
is immense potential in the corporate/
business customer segment for which
the appropriate marketing avenues are
already in place.
Angsana City Club & Spa
The complex which truly commands
leadership as the most sought after gym
and spa complex in the city, currently
has a total of nearly 700 members,
all of whom enjoy world class options
in holistic wellness. The international
product and service mix offered by
this largest club and spa complex in
the country, is operated by globally
renowned spa operator Angsana and
managed by Banyan Tree Resorts.
Given that the complex has reached the
maximum membership capacity, there
is no intention to increase membership
as the current mix works well and it is
prudent to remain within manageable
numbers which ensures that members
gain optimum advantages and benefits
from the services and products on offer.
Crescat Boulevard & Shopping Mall
This year, total footfall at the Crescat
Boulevard and Shopping Mall increased
by 13% from 1,846,267 to 2,077,488, a
definite attestation that the promotional
and marketing initiatives coupled with
The epitome of luxury, Cinnamon Grand’s Presidential Suite
a healthy mix of retail shopping, health
and beauty services, multi-cuisine food
court and modern supermarket have all
borne fruition to increasing business for
the outlets within. Crescat Boulevard
continues adding to the Group’s bottom
line with a steady Rs 133 Mn.
This premier shopping mall is now highly
sought after by high end brands, with
more new branded stores opening
during year under review. Given the
heavy footfall and natural wear and
tear that ensues within the precincts,
refurbishments were effected with
minimal hassle to shoppers and outlets.
This year, the mechanical and electrical
services were upgraded.
The Emperor
It was gratifying for the Property
Development Sector to complete its
third apartment project, The Emperor
under the AHPPLC umbrella. The 35
storey luxury residential apartment
tower comprising 163 units was
completed and with 162 sold and final
tranches received, AHPPLC has handed
this complex over to the Council of
Management comprising owners.
Cinnamon Lakeside Colombo
Having gained the crowning title of
Best Five Star City Hotel presented by
Sri Lanka Tourism this year, Cinnamon
Lakeside Colombo posted a year that
was quite remarkable, given that it
completed its refurbishment initiatives
begun in August 2010 on time by
October 2011, sold 69,616 room nights
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
11
at an average of US $130 and thus
generated revenue of Rs 1.0 Bn. It was
a year when twenty years of international
experience in the hotel industry was
imbibed through the newly appointed
General Manager, who is earmarked to
augment the journey that this city hotel
has already embarked on. Average
occupancy at the hotel remained at
55%, staying somewhat below industry
average due to the closure of 346
rooms resulting in a loss of room nights,
especially during the peak month of
August 2011.
To ensure that our guests were
minimally inconvenienced or rewarded
in various ways due to inconveniences
resulting from refurbishment, the hotel
compensated with value additions
including upgrades and complimentary
meals and in some cases, channeling
corporate guests to the sister property,
Cinnamon Grand Colombo. The
business segment displayed gains
similar to industry trends taking
approximately 59% of room nights, while
leisure posted 18%, crew at 12% and
MICE 11%.
While marketing is now in the process of
re-establishing some of these customer
relationships that may need added focus
due to the challenges faced during
refurbishment, the rooms that were
refurbished are now in a position to
command higher rates due to the ‘look
and feel’ being more sophisticated and
value additions being introduced into the
rooms. The number of premium rooms

[ operational & marketing review
contd.... ]
increased from 19% to 39%, with a rate
increase to US $135 from the standard
minimum rate of US $125, leveraging a
premium of US $10 per room. Post the
refurbishment, the hotel now comprises
room categories of 164 Superior, 133
Premium, 29 Executive Floor and 20
Suites collated to generate better
revenue. Room Rev PAR for the year
was Rs 8,298, a comparable increase
from Rs 6,448 last year. Room share
due to the refurbishment challenges et
al saw a marginal percentage decline
from 18% to 17%, while Revenue Share
also declined marginally from 18.3% to
17.7%. Penetration and Yield Premium
both saw declines, showcased at 98%
from 104% and 101% from 105%
respectively.
F&B revenues meanwhile are posted at
Rs. 1.0Bn, with banquets contributing
Rs. 480.5Mn. The highest grossing
dining venue this year was “The Dining
Room” with a contribution of Rs.
162.9Mn into F&B revenues. Total F&B
covers stood at 589,809, compared
to last year’s 578,591, while banquets
which last year hosted 165,967 pax, this
year is detailed at 175,293.
1,000
800
600
400
200
Room Revenue Vs. Occupancy
Rs. Mn %
1,200
70
0 0
2007/08
2008/09
2009/10
2010/11
Room Revenue
Occupancy
2011/12
60
50
40
30
20
10
To augment our F&B options which
comprises a total of ten dining and bar
venues, the hotel launched its unique
floating restaurant, named 8 Degrees
on the Lake, towards the latter end
of 2011. With the country gearing for
high-end tourists and planning products
and services aligned to this vision,
Cinnamon Lakeside set a benchmark in
offering a unique setting for a maximum
of 100 diners who will cruise the Beira
Lake on this two storeyed catamaran.
“Dishes to Guests” was also launched at
The Dining Room as a Sunday special
allowing guests to enjoy signature dishes
served to their tables, as was ‘Amuse
Bouche’ at Royal Thai serving authentic
Thai finger foods, while there are plans
to extend the Executive Lounge to cater
to the increasing executive guest staying
at the hotel and relaunch Long Feng
47%
47%
12%
Segmental Revenue
2010/2011
Rooms
Foods & Beverages
Others
12%
Segmental Revenue
2011/2012
Rooms
Foods & Beverages
Others
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
12
41%
41%
restaurant with extensive menu options
which will include Cantonese, Schezuan
and Mediterranean cuisine.
Transition to SLFRS and LKAS
Institute of Chartered Accountants of Sri
Lanka implemented SLFRS and LKAS
on specified business enterprises for
financial years beginning on or after 1st
January 2012. In keeping with ICASL
decision to adopt SLFRS and LKAS,
John Keells Group initiated a Group wide
project to implement the new accounting
standards. Accordingly, a GAP analysis
was carried out and diagnostic reports
were prepared. Based on the outcome,
systems were redesigned and solutions
developed. The first financial year under
the new standards will commence
from 1st April 2012. The impact to the
consolidated financials of Asian Hotels
and Properties PLC is identified as
insignificant as per the requirements of
SLFRS 1 – First time adoption.

The Crescat Boulevard Colombo’s sleekest shopping mall adjoining Cinnamon Grand Colombo
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
13

[ board of directors ]
Susantha Ratnayake |
Chairman-CEO
Susantha Ratnayake was appointed
as the Chairman and CEO of John
Keells Holdings PLC in January 2006
and has served on the JKH Board
since 1992/93. He is also the Chairman
of many of the listed and un-listed
companies within the Group. He is
a council member of the Employers’
Federation of Ceylon, serves on various
clusters of the National Council of
Economic Development (NCED) and is
the Chairman of the Ceylon Chamber
of Commerce. He has over 34 years of
management experience, all of which is
within the John Keells Group.
Ajit Gunewardene |
Deputy Chairman
Ajit Gunewardene is the Deputy
Chairman of John Keells Holdings PLC
and has been a member of their Board
for over 19 years. He is a Director of
many companies in the John Keells
Group and is the Chairman of Union
Assurance PLC. He is a member of
the board of SLINTEC, a Company
established for the development of
nanotechnology in Sri Lanka under
the auspices of the Ministry of Science
and Technology. He has also served
as the Chairman of the Colombo
Stock Exchange. Ajit has a degree in
Economics and brings over 30 years of
management experience.
Ronnie Peiris |
Group Finance Director
Appointed to the John Keells Holdings
PLC Board during 2002/03, Ronnie
Peiris has overall responsibility for
the Group’s Finance and Accounting
including Taxation, the Information
Technology function and Group
Initiatives. He was previously the
Managing Director of Anglo American
Corporation (Central Africa) Limited
in Zambia. Ronnie has over 40 years
of finance and general management
experience in Sri Lanka and abroad.
He is a Fellow of the Chartered Institute
of Management Accountants, UK;
Association of Chartered Certified
Accountants UK and the Society of
Certified Management Accountants,
Sri Lanka and holds an MBA from the
University of Cape Town, South Africa.
He is a member of the committee of
the Ceylon Chamber of Commerce,
Chairman of its Taxation Sub Committee
and also serves on its Economic, Fiscal
and Policy Planning Sub Committee.
He is a Director of several companies in
the John Keells Group, is Chairman of
Nations Trust Bank PLC and is currently
the President of the Sri Lanka Institute of
Directors.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
14
Cholmondeley Pinto | Director
Pinto was appointed as a non-Executive
Director and as the chairman of the
Board Audit Committee of AHPL in July
2011. He is a Fellow of the Institute of
Chartered Accountants of Sri Lanka with
40 years of post-qualifying experience,
in the profession and in industry. Before
returning to Sri Lanka in 2006 after a
spell of 32 years abroad, he worked for
SAB Miller Plc for 23 years, the world’s
second largest multinational breweries
group, holding CFO positions in its listed
subsidiaries in several countries. He
currently works as a beverage industry
consultant and is semi-retired. He is also
a non-Executive Director of Asian Hotels
and Properties PLC.

Sanjiva Senanayake | Director
Senanayake was appointed to the Board
of Asian Hotels and Properties PLC as
an Independent Director in September
2009. He has served in several key
positions in national and international
organisations.
Senanayake joined IFC in June 1998
and held the position of Country
Manager for Sri Lanka and Maldives
until April 2006 when he was appointed
as the Head of Financial Markets
Investments – West Africa. He held
this position until his retirement in April
2009. Prior to joining IFC he served as
the Assistant General Manager-Treasury
and Investment Banking at National
Development Bank of Sri Lanka and
as Consultant-Treasury and Business
Development at Commercial Bank of
Ceylon.
Prior to that he held several key
positions in the Citibank group in Sri
Lanka and overseas. Senanayake
holds a BSc degree in Electronic and
Electrical Engineering from King’s
College, University of London and an
MSc in Communication Engineering
from the Imperial College of Science
and Technology, University of London.
He is also a Director of Sampath
Bank, Hemas Power PLC, and Hemas
Pharmaceuticals Ltd.
Shirani Jayasekara | Director
Shirani Jayasekara was appointed as a
Director in September 2009. She has
over 30 years experience combining;
Finance, IT, Audit and Risk Management
in Sri Lanka, Zambia and Bahrain.
She is currently employed by Carson
Cumberbatch PLC, with oversight of the
Group Internal Audit Function, covering
group interests in Sri Lanka, Indonesia
and Malaysia.
She has been selected to serve on
various committees of the Institute of
Chartered Accountants of Sri Lanka
such as; the Annual Report awards
Committee (Sustainability Reporting) and
Audit Committee of the Institute. She is
also an external independent Director
at LB Finance. She is a Fellow of the
Institute of Chartered Accountants of
Sri Lanka and a Fellow of the Chartered
Institute of Management Accountants
UK.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
15
Rohan Karunarajah | Director
Rohan Karunarajah joined the John
Keells Group in 2003 as General
Manager for the Colombo Plaza, and
was appointed a Director in March 2005.
A career Hotelier counting over two
decades in the international hospitality
industry, he currently holds the position
of General Manager, Cinnamon Grand
and, Senior Vice President, John
Keells Holdings PLC., having served as
General Manager for the Bristol Marriott
and the Marriott Marble Arch, London.
He read for his Masters in Hospitality
and Business Studies from the Thames
Valley University, London.
Suresh Rajendra | Director
Rajendra was appointed as a Director in
January 2006. He is President, Property
Group of John Keells Holdings PLC.
He also serves as a Director in many
companies of the John Keells Group.
He has over 18 years of experience in
the fields of finance, travel and tourism,
and business development acquired
both in Sri Lanka and overseas. Prior to
joining the Group, he was the head of
commercial and business development
for NRMA Motoring & Services in
Sydney, Australia, Director/General
Manager of Aitken Spence Hotel
Managements (Pvt) Ltd. and also served
on the Boards of the hotel companies
of the Aitken Spence Group. Suresh is
a Fellow of the Chartered Institute of
Management Accountants, UK.

[ annual report of the board of
directors ]
The Directors have pleasure in
presenting to members their Report
together with the Audited Financial
Statements for the year ended 31st
March 2012 to be presented at the
18th Annual General Meeting of the
Company.
Principal Activities
The Company is engaged in
Hoteliering and Property Development/
Management. Trans Asia Hotels PLC
(Cinnamon Lakeside) is a Subsidiary of
the Company and its principal activity is
Hoteliering. There has been no material
change to the activities of the Company
or of the Subsidiary during the period
under review.
Business Review
A review of the Company’s performance
during the financial year is given in the
Chairman’s Statement on page 6 and
Operational and Marketing Review on
pages 7 to 13. These reports form an
integral part of this report and provide
a true and fair view of the Company’s
performance for the financial year
2011/2012.
Future Developments
The Chairman’s Statement provides a
review of the future developments of the
Company.
Financial Statements and Auditors’
report
The complete Financial Statements duly
signed by the Directors and the Auditors
Report thereon for the financial year
ended 31st March 2012 are attached to
this report.
Segment Reporting
Segment Reporting is explained in Note
36 to the Financial Statements on page
90.
Turnover
The Total Turnover of the Company and
the Group, net of Tax was Rs. 6.4 Bn
and Rs. 8.8 Bn for the year under review
as against Rs. 5.4 Bn and
Rs. 7.4 Bn during the previous year,
respectively.
Group Profits
Accounting policies
Details of the accounting policies have
been discussed in pages 74 to 79 of the
Financial Statements. There have been
no changes in the accounting policies
adopted by the group during the year
under review.
Dividends
A First and Final Dividend of Rs. 2/- per
share (before the subdivision) for the
financial year ended 31st March 2011,
was paid during the current financial
year on 20th May 2011 to those
shareholders in the register as of 06th
May 2011, resulting in a total cash pay
out amounting to Rs. 442 Mn.
The Board of Directors, declared an
Interim Dividend of Rs.1/- per share
for the year ended 31st March 2012,
amounting to Rs. 442 Mn in April 2012.
The Board of Directors, has declared a
Final Dividend of Rs. 3/- per share on
25th May 2012 for the financial year
ended 31st March 2012.
As required by Section 56 (2) of the
Companies Act No. 7of 2007, the Board
of Directors have confirmed that the
Company satisfies the Solvency Test
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
16
2011/12
Rs. ‘000
2010/11
Rs.‘000
Net Profit for the year after providing for
expenses including Depreciation on
Property, Plant and Equipment was: 2,659,453 2,184,258
From which Income Tax has been deducted of: (152,053) (36,372)
Leaving thereafter a Net Profit After Tax of:
The amount attributable to Minority Interest which
2,507,400 2,147,886
has been deducted is: (356,828) (373,365)
Leaving a Profit Available to the Group of: 2,150,572 1,774,521
The Brought Forward Profit is: 5,109,517 3,500,332
Transferred to Revenue Reserve of: 33,215 56,052
Final Dividends paid (442,775) (221,388)
Interim Dividends Paid
Leaving an un-appropriated balance to be
(442,775) -
Carried Forward of: 6,407,754 5,109,517
in accordance with Section 57 of the
Companies Act No. 7 of 2007 and have
obtained a certificate from the Auditors,
prior to declaring the above dividends.
Stated capital
The share sub division of two ordinary
shares for every one share held
increasing the number of shares in issue
in the Company from 221,387,650 to
442,775,300 was effected on 10th
May 2011 subsequent to a shareholder
approval at the Extraordinary General
Meeting.
The Stated Capital of the Company as
at 31st March 2012 is Rs. 3,345 Mn
(2011 – Rs.3,345 Mn) comprising of
442,775,300 Ordinary Shares.
Reserves
The movements during the year relating
to Capital Reserves and Revenue
Reserves are disclosed in Notes 21
and 22 to the Financial Statements
respectively on page 85.
Related Party Transactions
There were no related party transactions
required to be disclosed under the
Listing Rules of the Colombo Stock
Exchange other than as disclosed under
Note 35 to the Financial Statements.

Donations
Total Donations made by the Company
during the year amounted to Rs 6.9
Mn and donations made by the group
amounted to Rs.10.6 Mn (31st March
2011- Company Rs. 2.6 Mn/Group Rs.
4.8 Mn)
Property, Plant and Equipment
Land
Total Freehold Land available - Asian
Hotels and Properties PLC A08.R00.
P05.08 Total Leasehold Land available -
Trans Asia Hotels PLC A07.R01.P24.80
The Land and Buildings of the Group
were revalued in March 2008 by M/s
A.Y. Daniel & Son, an Independent
Certified Valuer.
Details of Land and Buildings with net
book values including details of Property,
Plant and Equipment of the Group and
their movements are given in Note 8 to
the Financial Statements on page 80.
Investment Properties
In accordance with SLAS 40 -
Investment Property (2005), the net
book value of properties held to earn
rental income, and properties held for
capital appreciation have been classified
as Investment Properties. The details of
Investment Properties are explained in
Note 10 to the Financial Statements on
page 82.
Long Term Loans
A summary of movement of debt during
the year under review, is explained in
Note 23 to the Financial Statements on
pages 85 and 86.
Investment in Subsidiary
Company No. %
of Shares Holding
Trans Asia
Hotels PLC
(Quoted) 86,823,028 43.41
Corporate Governance
Corporate Governance practices
and principles with respect to the
management and operations of the
Company are set out on pages 23 to 31
of this report.
The Directors confirm that the Company
is in compliance with the relevant Rules
on Corporate Governance contained in
the listing rules of the Colombo Stock
Exchange.
Risk Management
The Board confirms that there is
an ongoing process for identifying,
evaluating and managing any significant
risks faced by the Company. The
details of the Risk Report and Risk
Management Process are set out on
pages 20 to 22 of this report.
Directorate
The Board of Directors of the Company,
as at date, is setout under Corporate
Information on the back inner cover of
the Report.
The Directors of the Company who held
office during the year under review are
set out below.
Mr.S.C.Ratnayake - Chairman
Mr. A.D. Gunewardene - Managing
Director
Mr. J.R.F. Peiris
Mr. R.J. Karunarajah
Mr. S. Rajendra
Mr. A.R.Gunasekara
Mr. S.K.G. Senanayake
Mrs. S.A.Jayasekara
Mr. C.J.L. Pinto
Mr. A. R. Gunasekara resigned from the
Board with effect from 29th June 2011.
Mr. C.J.L. Pinto was appointed to the
Board with effect from 1st July 2011.
Mr. J.R.F. Peiris retires by rotation in
terms of Article 84 of the Articles of
Association of the Company and being
eligible is recommended by the Board
for re-election.
Mr. C.J.L. Pinto retires in terms of Article
91 of the Articles of Association and
being eligible is recommended by the
Board for re-election.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
17
The Directors of Trans Asia Hotels PLC
[Subsidiary] who held office during the
year under review are set out below:
Mr. S.C.Ratnayake - Chairman
Mr. A.D. Gunewardene
Mr. J.R.F. Peiris
Mr. D.S.J. Pelpola
Mr. N.L. Gooneratne
Mrs. R.L. Nanayakkara
Mr. A.R. Gunasekara
Mr. C.J.L. Pinto
Mr. A. R. Gunasekara resigned from the
Board with effect from 29th June 2011.
Mr. C.J.L Pinto was appointed to the
Board with effect from 1st July 2011.
Directors’ Remuneration
Details of the remuneration and other
benefits received by the Directors of the
Company and the Group are setout in
Note 31 to the Financial Statements on
Page 87.
Interests Register
The Company has maintained an
Interests Register as contemplated by
the Companies Act No 7 of 2007. In
compliance with the requirements of
the Companies Act No. 7 of 2007, this
Annual Report also contains particulars
of entries made in the interests register
of the subsidiary which is a Public
Company.
Interests in contracts
The Directors have all made a general
disclosure to the Board of Directors
as permitted by Section 192 (2) of the
Companies Act No 7 of 2007 and no
additional interests have been disclosed
by any Director.

[ annual report of the board of
directors contd.... ]
Indemnities and Remuneration
The Board approved the payment to Mr.
R.J. Karunarajah and Mr. S. Rajendra,
Executive Directors, of
• An increment from 1st July
2011 based on the individual
performance rating obtained by the
Executive Directors in terms of the
Performance Management system
of the John Keells Group; and
• Short term variable incentive
based on individual performance,
organisation performance and role
responsibility based on the results of
the financial year 2010/2011, paid in
July 2011; and
• Long Term Incentive in the nature
of ESOP in John Keells Holdings
PLC dependant on the aforesaid
performance rating, organisational
rating and role responsibility granted
in December 2011.
As recommended by the Human
Resources & Compensation Committee
of John Keells Holdings PLC the holding
Company of Asian Hotels and Properties
PLC in keeping with the Group
Remuneration Policy, the Non-Executive
Directors of Asian Hotels and Properties
PLC received an increment in fees
with effect from 1st August 2011, as
recommended by the Human Resources
& Compensation Committee of John
Keells Holdings PLC (being its holding
Company and as permitted by the Rules
of the Colombo Stock Exchange) which
increase is commensurate with the
market and complexities of the business
of the Company. The fees payable to
Non-Executive nominees of John Keells
Holdings PLC are paid to John Keells
Holdings PLC and not to individual
directors.
Particulars of entries in interests
register of subsidiary
Trans Asia Hotels PLC
Indemnities and remuneration
Changes to the Remuneration paid to
the Directors of Trans Asia Hotels PLC
for the financial year ended 31st March
2012, are setout in Note 31 to the
Financial Statements of page 87.
Further to the appointment of Mr. C.
J.L. Pinto as a Non-Executive Director
of Trans Asia Hotels PLC with effect
from 1st July 2011 the Board approved
the payment to Mr. C.J.L. Pinto of the
standard Non-Executive fees approved
by the Board for Non-Executive
Directors which fees are commensurate
with the market complexities of the
Company.
The Non-Executive Directors of
Trans Asia Hotels PLC received an
increment in fees with effect from 1st
August 2011, as recommended by
the remuneration Committee of John
Keells Holdings PLC (being its holding
Company and as permitted by the Rules
of the Colombo Stock Exchange) which
increase is commensurate with the
market and complexities of the business
of the Company. The fees payable to
Non-Executive nominees of John Keells
Holdings PLC are paid to John Keells
Holdings PLC and not to individual
directors.
Directors’ interests in shares;
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
18
Share dealings
Name of
Director
Director Shareholding As at
31.03.2012
Nature of Share
Dealing
N.L. Gooneratne Sale of 10,600
shares before
subdivision and
29,800 after sub
division
Annual Report
The Board of Directors approved the
Consolidated Financial Statements on
25th May 2012. The appropriate number
of copies of this Report will be submitted
to the Colombo Stock Exchange and to
the Sri Lanka Accounting and Auditing
Standards Monitoring Board.
Events Subsequent to the Balance
Sheet Date
Except for the matters disclosed in Note
39 to the Financial Statements on Page
91 there are no material events which
require adjustment or disclosure in the
Financial Statements.
Statutory Payments
The Directors confirm that to the best
of their knowledge, all taxes, duties
and levies payable by the Company
and its Subsidiary, all contributions,
levies and taxes payable on behalf of,
and in respect of the employees of the
Shareholding as at
31. 03.2011
Mr. S.C. Ratnayake 20,000 10,000
Mr. A.D. Gunewardene NIL NIL
Mr. J.R.F. Peiris NIL NIL
Mr. R.J. Karunarajah 200 100
Mr. S. Rajendra NIL NIL
Mr. A.R. Gunasekara NIL NIL
Mr. S.K.G. Senanayake NIL NIL
Mrs. S.A. Jayasekara NIL NIL
Mr. C.J.L. Pinto 7,800 NIL

Company and its Subsidiary, and all
other known statutory dues as were
due and payable by the Company and
its Subsidiary as at the Balance Sheet
date have been paid or, where relevant
provided for.
Employees and Industrial Relations
There have been no material issues
pertaining to employees and industrial
relations of the Company and the Group
during the Financial Year.
Stock Market Information
An Ordinary Share of the Company
was quoted on the Colombo Stock
Exchange at Rs. 78.00 as at 31st March
2012 [31st March 2011 - Rs. 187.90].
Information relating to earnings,
dividends, net assets and market value
per share is given in the “Information to
Shareholders and Investors” on pages
93 and 94. The Company endeavors at
all times to ensure equitable treatment to
all shareholders.
Substantial Shareholdings
The names of the twenty largest
shareholders, the number of shares
held and the percentage held are given
on page 94 of the Annual Report. The
distribution schedule of the shareholders
and Public Holding are found in pages
93 and 94 of the Annual Report.
Going Concern
The Directors are satisfied that the
Company and its Subsidiary have
adequate resources to continue in
operational existence for the foreseeable
future, to justify adopting the Going
Concern basis in preparing these
Financial Statements.
Environmental Protection
The Company is conscious of the
impact, direct and indirect, on the
environment due to its business
activities. Every endeavor is made to
minimise the adverse effects on the
environment to ensure sustainable
continuity of our resources. The
Company’s sustainable practices are
detailed on pages 34 to 57.
Internal Controls
The Directors acknowledge their
responsibility for the Company’s systems
of internal controls. The statements of
Corporate Governance on pages 26
and 27 set out in detail the Company’s
system of internal controls.
Auditors
The retiring Auditors KPMG
(Previously known as KPMG Ford,
Rhodes, Thornton & Co.), Chartered
Accountants, have expressed their
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
19
willingness to continue in office. The
Audit Committee at a meeting held
on 24th of May 2012 recommended
that they be re-appointed as Auditors.
Resolution to re-appoint them and to
authorise the Directors to determine their
remuneration will be proposed at the
Annual General Meeting to be held on
25th June 2012.
The Independent Auditors’ Report to the
shareholders is given on page 69.
The Audit Committee reviews the
appointment of the Auditor, its
effectiveness, independence and its
relationship with the Company, including
the level of audit and non - audit fees
paid to the Auditor.
The Auditors do not have any
relationship [other than that of an
Auditor] with the Company or its
Subsidiary.
Notice of Meeting
The Notice of Meeting relating to the
18th Annual General Meeting appears
on page 98 of the Annual Report.
This Annual Report is signed for and on
behalf of the Board of Directors by;
Director Director
By Order of the Board
KEELLS CONSULTANTS (PRIVATE) LIMITED
Secretaries
Colombo
25th May 2012

[ risk management ]
Asian Hotels and Properties Risk
management process is designed to
analyse the exposure on various risks,
by identifying vulnerability and the
probability of occurrence along with
its impact to the business operation.
Thereafter action that should be taken to
mitigate the impact of such risks to the
business, are discussed at various level
of the Company and corrective actions
are implemented promptly.
Company have recognised the Risk
Management process as an essential
component of both the investment
management process for the investors
in our products and in our approach to
maintaining high quality sustainability
business for our shareholders. This
framework is designed to balance
corporate oversight with well-defined
Risk Management processes.
Enhancements have continued to
be made to the Risk Management
framework throughout 2011/12
based on the guiding principles of the
Enterprise Risk Management (ERM)
process recommended by John Keells
Group Sustainability and Enterprise Risk
Management Division.
The Group Management Committee of
the Hotel and Property divisions along
with the Audit Committee work closely
with the Board of Directors, who are in
turn responsible for:
� Establishing core standards for the
management, measurement and
reporting of risk;
� Identifying, assessing,
communicating and monitoring risks
on a Company wide basis;
� Engaging with senior management
on a frequent basis on material
matters with respect to risktaking
activities in the businesses
and related Risk Management
processes.
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Annual Report 2011/12
20
Risk Management Process
The Risk Management Process is carried
out in order to identify risk events and
rank each risk by assigning a risk rating
through assessment of the likelihood
of occurrence [Probability] and the level
of impact to the Company. Risk reviews
are carried out quarterly to monitor and
manage the status of risks mitigation
activities. The process is reviewed by
the Group Management Committee
and the Group Executive Committee of
John Keells Holdings PLC. The Audit
Committee oversees the process on
behalf of the Board.
Accordingly, an assessment of the risk
portfolio of Asian Hotels and Properties
PLC after taking into consideration
the implementation progress made
on identified action plans and other
mitigation activities and control
measures are set out below.
Risk Category and Description Control Measures and Action Plans to Mitigate Risks
Strategic risks
Business Risk
� The performance of the Company could be adversely
affected due to intense competition, unfavourable economic
conditions and new entrants.
Operational Risks
Commercial Relationship risk
� Both business units of Asian Hotels and Properties PLC,
the Property division and the Hotel division benefits from
close commercial relationships with a number of key
customers and suppliers. The disruption of this can have
negative consequences.
� The Company closely monitor competitor’s activities and
strategies. This process includes review of competitor’s
market share and performance. Where necessary new
strategies are formulated or existing strategies are revised
to counter the actions of competitors.
� The Company devotes significant resources to carry out
regular training programs to upgrade its levels of care in
supporting these relationships.
� From time to time the Company undertakes surveys of
customer satisfaction which are reviewed on a continuous
basis.

Risk Category and Description Control Measures and Action Plans to Mitigate Risks
Human Resource Risk
� The Company’s Human Resources are the backbone of
the business, holding the Company together. The growth
of the Company is heavily dependent on the talents and
efforts of the highly skilled individuals that Company is able
to attract and retain. The recruitment and retention of the
employees is a constant challenge.
Brand and Reputation Risk
� Company’s success depends on the continued strength
and recognition of the Brand on a local and regional basis.
� The “Cinnamon” name is primary to its business as well
as to the implementation of its strategy for expanding its
businesses. This will depend largely on the success of its
ability to provide high-quality product and services to all its
clients.
Liquidity and Credit risk
� The economic instability, high inflation rates, adverse foreign
currency fluctuations and the global monetary crisis could
affect the Company in recovering the cash installments from
the prospective purchasers of Property or clients of the
hotel.
� The Property division credit risk will be limited only to the
rental income from the Crescat Boulevard as the balance
payments from the apartment sales will be recovered in full
before 31st March 2013.
Interest Rate Risk
� Drop in interest rates will lead to a lower interest income
and as a result the Company would have an impact on its
other Income.
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ASIAN HOTELS AND PROPERTIES PLC
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� As part of the performance appraisal process carried out
in the Company, a clear vision has been set out on career
development and succession plans enabling the Company
to retain its employees.
� Regular training in both Local and overseas are carried
out in order to infuse motivation, commitment and
empowerment among the staff.
� Recruitment of high caliber staff, effective induction to
the Groups’ corporate culture, having transparency in
Management actions, effective communication lines
are developed in the Company’s culture to foster good
employee relationships.
� Regular brand Audits of the “Cinnamon” brand is carried
out.
� Both the Hotel Division and the Property division ensures
that its employees are the most sought after and qualified
staff to hold high Managerial positions (in the different
hierarchies), continuous attention is focused on the
environment and health & safety concerns by complying
with HACCP and other quality certifications.
� The brand of “Cinnamon” with emphasis on maintaining
Minimum Quality Standards and Standards of Performance
carries out ongoing reviews of guest comments in order to
exceed customer expectations
� The Company carries out actively, trade debtor balance
reviews with review meetings held on a continuous basis.
� The Company Follows a cash policy basis for the apartment
sales in the Property Division where by the Deed of Transfer
is executed only upon receiving the full settlement of the
Purchase Price.
� The Company makes every endeavor to handle majority of
its transactions on a cash basis. Progress payments for the
apartments are collected on the project completion basis as
per the pre-defined project plans.
� The Hotel Transactions are predominantly based on cash
terms and through established and reputed Travel Agents
and Tour Operators.
� The Company has taken measures to maximise the interest
Income with the assistance and guidance of the JKH Group
Treasury Department.
21

[ risk management contd.... ]
Risk Category and Description Control Measures and Action Plans to Mitigate Risks
Fraud Risk
� The risk due to corruption and employees abusing
entrusted power for private gain and misappropriation of
assets, have a risk on Company reputation.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
� All major procurement decisions are taken on a collective
basis inclusive of Consultants/ Project Managers and the
Management.
� Internal auditors are appointed to conduct regular reviews
of the areas which are susceptible to misappropriation and
fraud.
� Authority limits, segregation of the responsibilities and
duties have been implemented for the critical functions of
the Company.
� Company has taken Insurance covers in order to mitigate
this risk factor.
22

[ corporate governance ]
Asian Hotels and Properties PLC,
remains committed to the Corporate
Values and written Code of Conduct
prevalent within the John Keells Group,
wherein the Board of Directors, Senior
Management and employees are
expected to strictly adhere and follow in
performing official duties, ensuring that
the Group image remains positive and
pragmatic.
The Company, holds itself accountable
to the highest standards of Corporate
Governance and public accessibility
to information about our Enterprise.
Effective Corporate Governance in line
with the highest international standards
is an important part of our identity. Our
system of Corporate Governance lays
the basis for responsible performanceoriented
management and control which
is geared towards sustainable value
creation. Most importantly, our efforts
go hand in hand with an unwavering
commitment to the accurate, clear
communication of our performance and
the facts of our business.
The Corporate Governance frame work
is founded on the following principles:
(i) Allegiance to John Keells Holdings
PLC (JKH) and the John Keells
Group, and upholding of Group
Values.
(ii) Compliance with the laws and
Company Rules and Regulations
applying in the territories that the
John Keells Group operates.
(iii) Conduct of business in an ethical
manner at all times and in line with
acceptable business practices.
(iv) Exercise of professionalism and
integrity in all business and “public”
personal transactions.
(v) Ensure that no one person has
unfettered powers of decision
making.
(vi) Opt, when practical, for early
adoption of best practices.
(vii) Encourage proactive discussions
with the relevant regulatory bodies
to facilitate the implementation of
matters of governance and other
business reforms in Sri Lanka.
(viii) Make business decisions and
resource allocations, in an
efficient and timely manner,
within a framework that ensures
transparent and ethical dealings
which are compliant with the laws
of the country and the standards
of governance that stakeholders
expect from the Company.
The Company is primarily guided by the
Code of Best Practices on Corporate
Governance issued by the Institute of
Chartered Accountants of Sri Lanka
and the Securities and Exchange
Commission of Sri Lanka, the listing
rules of the Colombo Stock Exchange.
This report sets out the Company’s
Corporate Governance processes with
reference to the extent of compliance
with same.
Board of Directors
The Board of Directors is the ultimate
governing body of the Company. It is
responsible for the ultimate supervision
of the Group. In all actions taken by the
Board, the Directors are expected to
exercise their business judgment in what
they reasonably believe to be the best
interests of the Company. In discharging
that obligation, Directors may rely on the
honesty and integrity of the Company’s
senior executives and its outside
advisors and auditors.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
23
Composition of the Board and
Directors’ Independence
As at 31 March 2012, the Board
consisted of 8 Directors comprising of:
� 2 Executive Directors (ED)
� 3 Non-Executive Non-Independent
Directors (NED)
� 3 Non-Executive Independent
Directors (NED/ID)
Independence of the Directors have
been determined in accordance
with CSE Listing Rules and the 3
independent Non-Executive members
have submitted signed confirmations of
their independence.
The Board members have a wide
range of expertise as well as significant
experience in diverse fields enabling
them to discharge their governance
duties in an effective manner.

[ corporate governance contd.... ]
Name of Director Executive
/ Non
Executive
Mr. S.C.Ratnayake
Chairman
Independent
/ Non
Independent
Non Executive Non
Independent
Involvement/
Interest in
Share holding
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
Involvement/
Interest in
Management
24
Continuously
served for 9
years
Yes No No No
Mr. A.D. Gunewardene Non Executive Non
Independent
No No No No
Mr. J.R.F. Peiris Non Executive Non
Independent
No No No No
Mr. R.J. Karunarajah Executive Non
Independent
Yes Yes No No
Mr. S. Rajendra Executive Non
Independent
No Yes No No
**Mr. C.J.L Pinto Non Executive Independent Yes No No No
*Mr. A.R. Gunasekara Non Executive Independent No No No No
Mr. S.K.G. Senanayake Non Executive Independent No No No No
Mrs. S.A. Jayasekera Non Executive Independent No No No No
*Mr. A. R. Gunasekara resigned from the Board with effect from 29th June 2011.
** Mr. C.J.L. Pinto was appointed to the Board with effect from 1st July 2011.
The Board is of the view that its present
composition ensures a right balance
between executive expediency and
independent judgment.
Directors that made up the Company
Board participate in defining goals,
vision, strategies and business targets.
All Directors are able to and willingly
add value and independent opinion on
the decision making process, which
is of immense benefit to the effective
functioning of the Board. The Details of
the current Board of Directors along with
a brief resume of each Director is found
on pages 14 and 15 of the report.
Transactions or events that have a
material bearing on the Company
are disclosed by way of circulars to
shareholders, announcements to the
Colombo Stock Exchange and media/
press releases. The Board is ready to
answer questions raised by shareholders
at general meetings and maintains an
appropriate dialogue with them.
The Independent Directors shall be
able to ensure the equal benefits of all
shareholders with independent views
and opinions. Directors will update
the Board with any new information
in relation to interests or relationships
relevant to independence.
The Board has developed a policy that
it uses to determine the independence
of its Directors. This determination is
carried out annually or at any other
time where the circumstances of a
Director change such as to warrant
reconsideration.
The Board is aware of the other
commitments of its Directors and is
satisfied that these do not conflict with
their duties as Directors of the Company.
All Non-Executive Directors are required
to notify the Chairman of changes in
their outside Board appointments, and
the Chairman carries out a review of all
such appointments in consultation with
the other Directors where necessary
to ascertain any possible conflicts of
interest.
Involvement/
Interest
in Supply
Contracts
Board responsibilities and decision
rights
At Asian Hotels and Properties PLC,
the businesses are conducted by its
employees, managers and officers,
under the direction of the Executive
Directors and the oversight of the Board,
to enhance the long-term value of the
Company for its shareholders.
The Board aims to fulfill its
responsibilities by creating value for
all stakeholders that is sustainable
and beneficial. Stakeholders include
shareholders, employees, customers,
the community and the environment.
Without limiting the Board’s function, its
specific responsibilities include:
� Approving objectives, strategies and
financial plans and monitoring the
Company’s performance against
these plans;
� Monitoring compliance with the
regulatory requirements, and
ensuring all Company employees
act with integrity and diligence in
the interests of the Company and
stakeholders;

� Reviewing and approving all
significant policies and procedures
across the Group;
� Exercise objective judgment on all
corporate matters independent from
executive management;
� Formulating short and long term
strategies as a basis for the
operational plans of the Company;
� Determining and recommending
interim and final dividends for the
approval of shareholders;
� Identifying the principal risks of the
business and periodically reviewing
the risk management systems in
place;
� Preparation and presentation of
financial statements, together with a
statement by the Auditors pertaining
to their reporting responsibilities;
Board meetings, Agenda and
Attendance
For the financial year 2011/2012 there
was a total of 5 Board meetings. During
the meetings, the Chairman of the Board
appropriately allocated time for Directors
to carefully review and discuss all relative
information. There were also written
minutes that were made available for
verification and approved by the Board.
All Directors have access to Keells
Consultants [Private] Limited who acts
as Company Secretaries for advice on
relevant matters.
The Board met on key matters of
importance to the Company, including
the approval of strategic and operating
plans, capital expenditure, approving
major investments and divestments,
annual budgets, financial statements
by giving due attention to accounting
standards and policies, ensuring
compliance with legal and ethical
standards, ensuring effective risk
management and audit systems and
performance monitoring and other
matters having a material effect on the
Company and the Group.
Board attendance during the subject period was;
Director Eligible to attend Attended
Mr.S.C. Ratnayake 5 5
Mr. A.D. Gunewardene 5 4
Mr. J.R.F. Peiris 5 5
Mr. A.R. Gunasekara* 2 2
Mr. R.J. Karunarajah 5 5
Mr. S. Rajendra 5 5
Mr. C.J.L. Pinto** 3 3
Mr. S.K.G. Senanayake 5 5
Mrs. S.A. Jayasekara 5 5
Mr. A.R. Gunasekara* resigned from the Board of Directors with effect from 29th June
2011.
Mr. C.J.L. Pinto** was appointed to the Board of Directors with effect from 1st July
2011.
Chairman and his role
The Chairman conducts Board Meetings
and ensures that the participation and
contribution of Executive and Non-
Executive Directors are encouraged
and their view on matters under
consideration is determined. The
Chairman maintains contact with all
Directors and has informal discussions
with the Non-Executive Directors as
necessary.
As Chairman, he is responsible for:
� ensuring that the principles and
processes of the Board are
maintained, including the provision
of accurate, timely and clear
information
� encouraging debate and
constructive criticism
� setting agendas for meetings of the
Board, in conjunction with the CEO
and Group Company Secretary, that
focus on the strategic direction and
performance of our business
� leading the Board and individual
Director Performance assessments
� speaking and acting for the Board
and representing the Board to
shareholders
� presenting shareholders’ views to
the Board
� facilitating the relationship between
the Board and the Management.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
25
The Board considers that none of his
other commitments interfere with the
discharge of his responsibilities to the
Group. The Board is satisfied that he
makes sufficient time available to serve
the Company effectively.
Financial Guidance
The Board of Directors consists of
four senior qualified Accountants with
significant experience in the Corporate
Sector, who posses the necessary
knowledge to offer the Board guidance
on matters of finance. These Directors
add substantial value and independent
judgment on the decision making of the
Board on matters concerning finance
and investments.
Information
All Directors are fully briefed on
important developments in the various
business activities of the group. The
Directors have access to
� external and internal auditors,
� experts and other external
professional advisory services,
� senior managers under a structured
arrangement,
� information as is necessary to carry
out their duties and responsibilities
effectively and efficiently,

[ corporate governance contd.... ]
� periodic performance reports,
� information updates from
management on topical matters,
new regulations and best practices
as relevant to the group’s
businesses,
� the services of the Company
secretaries whose appointment and/
or removal is the responsibility of the
Board.
Re-Election of Directors
As prescribed by the Company’s Articles
of Association, all new Directors are
required to be elected by Shareholders,
at the first Annual General Meeting
(AGM) following their appointment to
the Board. Each year, a member of the
Board retires by rotation, and becomes
eligible for re-election. In order to ensure
that the Board comprises of members
who add value, the contribution of the
Directors are regularly evaluated before
they are recommended for re-election.
Mr. C.J.L. Pinto who was appointed
during this year and Mr. J.R.F. Peiris
who retires by rotation are eligible for
re-election.
Shareholder relations
The Company shareholders exercise
their rights at the Annual General
Meeting. Each resolution brought before
the shareholders at the Annual General
Meeting is voted on separately by the
shareholders.
The notice of the Annual General
Meeting and the relevant documents
required are published and sent to
the shareholders within the statutory
periods. The Company circulates
the agenda for the meeting and
shareholders vote on each issue
separately.
All shareholders are invited and
encouraged to be present, actively
participate and vote at the Annual
General Meeting. The Annual General
Meeting provides an opportunity for
Shareholders to seek and obtain
clarifications and information on the
performance of the Company and to
informally meet the Directors after the
Annual General Meeting. The External
auditors and the Company’s lawyers
are invited to and are present at the
Annual General Meeting to render any
professional assistance that may be
requested. Shareholders who are not in
a position to attend the Annual General
Meeting in person are entitled to have
their voting rights exercised by a proxy
of their own choice.
Four times each year, the Company
reports to its shareholders regarding
its business development, financial
position and earnings. An ordinary
Annual Shareholders’ Meeting normally
takes place within the first four months
of each financial year. The AGM is
the main forum where the Company
communicates with its shareholders
the objectives strategies and the way
forward of the Company for the new
financial year.
Roles of Stakeholders
The Company realises the importance of
ensuring that all stakeholders rights are
properly observed. Pertinent procedures
are carried out in line with the rules and
regulations of the Stock Exchange of Sri
Lanka, as well as the related laws.
Shareholders; The Company is
committed to create long-term growth
and returns to the shareholders and to
conduct its business in a transparent
manner.
Customers; The Company is committed
to continuously develop better quality of
goods and services for the benefit and
satisfaction of its customers.
Partners; the Company treats all
partners fairly in order to achieve mutual
benefits.
Creditors; The Company observes all of
its obligations to creditors.
Competitors; The Company abides
by the framework of fair competition
and will not destroy the reputation of
competitors through false accusations.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
26
Employees; The Company considers
its employees a valuable asset and
treats them fairly in regard to work
opportunities, remuneration, and
quality of working environment. The
Company also provides all its employees
professional and career development
training.
Society and environment; The Company
is committed to conduct businesses
that benefit the economy and society
and quality of environment. The Parent
Company of Asian Hotels and Properties
PLC has established the Corporate
Social Responsibility (CSR) Department
to promote to the Company’s staff
the importance of the CSR objectives
to achieve balanced benefits relating
to society, the environment, and
all stakeholders in harmony with
the Company’s sustainable growth
objectives.
Financial Reporting
For the year ended 31st March
2012 the Board of Directors confirm
that the Financial Statements of the
Company and its subsidiary that
are incorporated in this report have
been prepared in accordance with Sri
Lanka Accounting Standards and the
Companies Act No 7 of 2007. The
Company has duly complied with all
the reporting requirements prescribed
by the regulatory authorities including
the Colombo Stock Exchange and
the Registrar of Companies. The
consolidated Financial Statements
and the Financial Statements of the
Company were audited by KPMG
(Previously known as KPMG Ford,
Rhodes, Thornton & Co.), Chartered
Accountants.
The Report of Directors is presented on
pages 16 to 19 of the Annual Report.
The Independent Auditors’ report on the
Financial Statements for the year ended
31st March 2012 is presented on page
69 of this Annual Report.
Internal controls
The Board has overall responsibility for
the system of internal control. A sound

system of internal control is designed to
manage rather than eliminate the risk of
failure to achieve business objectives.
The Company stresses the importance
of strong internal control throughout the
organisation. Written responsibilities,
authority delegation and management
controls have been adopted to create
transparency for utilization of the
Company’s resources and to distinguish
the duties of staff and controllers in order
to ensure that proper verification and
monitoring processes are in place.
The Company further maintains a
system of Internal Controls, which is
designed to safeguard its assets from
identified risks, while ensuring that
all transactions are duly authorised,
recorded and reported. Key systems and
rules relating to delegation of authority
are formalised and documented.
As a member of the John Keells
Group, the Company is now part of a
comprehensive planning and monitoring
process. The Annual Plans and Budgets
are developed by the Company along
with a reforecast after six months.
Strategic priorities and key drivers are
pre-identified and tracked on a monthly
basis.
The Board is responsible for the
formulation of the appropriate systems
of internal Controls for the Group and
ensuring its effectiveness. The Board is
fully conscious that any internal control
system contains inherent limitations
and no system of internal control could
provide absolute assurance against
the occurrence of material errors,
poor judgment in decision making,
human errors, losses, frauds or other
irregularities. The Board has therefore
taken appropriate action to minimise
such situations.
Internal Audit Services
Quarterly Audits are conducted by
the Company’s Internal Auditors,
Messrs. Price Waterhouse Coopers
(Private) Limited, a firm of Chartered
Accountants. The role of the internal
audit team is to determine whether risk
management, control and governance
processes are adequate and
functioning. The Internal Audit function is
independent of the External Auditor.
The reports arising out of such audits
are, in the first instance, considered
and discussed at the business /
functional unit levels and after review
by the respective President/CEO of
the Company and the Subsidiary are
forwarded to the audit committee
on a regular basis. Further, the
audit committees also assess the
effectiveness of the risk review process
and systems of internal control on a
regular basis. Follow-ups on internal
audits are done on a structured basis.
Relevant risks and vulnerabilities of the
Company are identified and promptly
brought to the attention of Management,
facilitating corrective and preventive
measures to be taken in a timely
manner.
Additionally, a technically strong
Management Audit function aligned with
the Company’s strategies adds value in
a variety of ways, including –
� Providing an independent opinion on
the integrity, reliability and relevance
of management information;
� Assessing the adequacy of controls
over the protection of assets and
management of liabilities;
� Reviewing compliance with
corporate policies and external
regulations;
� Reducing the risk of fraud.
Board Committees
The Board has established Committees
to assist it in exercising its authority;
including monitoring the performance
of the business to gain assurance that
progress is being made towards the
Corporate Objective within the limits
imposed by the Board. The permanent
Committees of the Board are the
Audit Committee, the Management
Committee and the Human Resources &
Compensation Committee.
Other Committees are formed from time
to time to deal with specific matters.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
27
Each of the permanent Committees
have Terms of Reference under which
authority is delegated by the Board.
Committee meeting agendas, papers
and minutes are made available to all
members of the Board.
Subject to appropriate controls
and the overriding scrutiny of the
Board, Committee Chairmen are
free to use whatever resources they
consider necessary to discharge their
responsibilities. The functions of each
Committee are as follows.
Audit Committees, External Auditors
and Independence
The Audit Committee consisted of 3
independent members, where
Mr. A.R. Gunasekara resigned from
the Board with effect from 29th June
2011 towards taking up appointment
to the Board of John Keells Holdings
PLC with effect from 1st July 2011. The
Committee is chaired by
Mr. C.J.L. Pinto who was appointed
to the Board of Directors as a Non
Executive Director with effect from 1st
July 2011. The other members being
Mr. S.K.G. Senanayake and Mrs. S.A.
Jayasekera. The Chairman of the Audit
Committee is a Fellow member of the
Institute of Chartered Accountants of
Sri Lanka. The Audit Committee carries
out its tasks in accordance with the
Audit Committee Charter.
Five (5) meetings were held during
the year. The Executive Directors and
Senior Management of Cinnamon Grand
Colombo and Crescat Property Division
attend the Audit Committee meetings
by invitation. Further the representatives
of the Internal Auditors (Messrs. Price
Waterhouse Coopers (Private) Limited),
John Keells Group Business Process
Review Division and the External
Auditors KPMG (Previously known as
KPMG Ford Rhodes, Thornton and
Company) attend by invitation. The
Audit Committee performs an important
monitoring function in the overall
governance of the Company.

[ corporate governance contd.... ]
The Committee’s reviews the following;
� Procedures for identifying business
risks and controlling their financial
impact on the Group and the
operational effectiveness of the
policies and procedures related to
risk and control
� The appointment, remuneration,
qualifications, independence and
performance of the External Auditor
and the integrity of the audit process
as a whole
� Budgeting and forecasting systems,
financial reporting systems and
controls
� Procedures for ensuring compliance
with relevant regulatory and legal
requirements
� Arrangements for protecting
intellectual property and other nonphysical
assets
� Overseeing the adequacy of the
internal controls and allocation of
responsibilities for monitoring internal
financial controls
� Policies, information systems and
procedures for preparation and
dissemination of information to
shareholders, stock exchange and
the financial community.
Audit Committee attendance during the
subject period was;
Director Eligible
to
attend
*Mr. A.R.
Gunasekara
Mr. S.K.G.
Senanayake
Mrs. S.A.
Jayasekera
**Mr. C.J.L.
Pinto
Attended
2 2
5 5
5 4
3 3
*Mr. A.R. Gunasekara resigned from the
Board of Directors with effect from 29th
June 2011.
**Mr. C.J.L. Pinto was appointed to the
Board of Directors with effect from 1st
July 2011 and serves as the Chairman
of the Audit Committee.
KPMG (Previously known as KPMG
Ford, Rhodes, Thornton & Co.), are the
External Auditors of the Company. The
Company has attempted always to
separate the internal auditors from the
External auditors to maintain the external
auditor independence.
Human Resources & Compensation
Committee
As permitted by the listing rules of the
Colombo stock exchange, the Human
Resources & Compensation Committee
of John Keells Holdings PLC the parent
Company of Asian Hotels and Properties
PLC function as the Human Resources
& Compensation Committee of the
Company. The Human Resources &
Compensation Committee of the John
Keells Holdings PLC comprise of Four
Non Executive Independent Directors.
� Mr. F. Amerasinghe – Chairman
� Ms. S.S. Tiruchelvam
� Dr. I. Coomaraswamy
� Mr. A.R. Gunasekara
The remuneration policy adopted by
the Company as recommended by the
Human Resources & Compensation
Committee of its parent, John Keells
Holdings PLC is formulated to attract
and retain high caliber executives
and motivate them to develop and
implement the business strategy in
order to optimise long term shareholder
value creation. The customised “pay
for performance scheme” continues to
apply for all group employees based
on the pillars of individual performance
and organisational performance. The
remuneration package for all employees
at Manager Level and above is based
on organisational performance and
individual performance. However for
Assistant Managers and Executive level
employees the scheme operates purely
on individual performance basis.
Compensation for Non Executive
Directors [NEDs] is determined in
reference to fees paid to other NED s of
comparable companies. NEDs receive a
fee for the time and expertise offered to
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
28
the Company and further compensated
additionally for either chairing or being
a member of a committee. Neither do
the NEDs receive any performance and
/incentive payments nor do their non
executive fees have any correlation with
the hours devoted per annum.
Director fees applicable to Non
Executive Directors nominated by
John Keells Holdings PLC are paid to
John Keells Holdings PLC and not to
individual Directors.
Nominations Committee and Board
appointments
The Nomination Committee of the
ultimate Parent Company John Keells
Holdings PLC (JKH) functions as the
nomination committee of the Company.
The Nomination Committee holds
responsibility to identify and propose
suitable candidates for appointment as
non-executive Directors to the Board of
JKH, in keeping with the target board
composition and skill requirements. The
Board of JKH after due consideration of
such recommendations, determines and
appoints the new Director.
Shareholders must formally approve
all new appointments at the first
opportunity after their appointment, as
provided by the Articles of Association of
the Company.
The Nominations Committee comprises
three Independent Directors and one
Non Independent Director namely:
� Mr. T. Das – Chairman
� Mr. S. Enderby
� Ms. S. Tiruchelvam
� Mr. S. C. Ratnayake (Non Independent)
Management Committee
The Hotel and Property divisions of
Asian Hotels and Properties PLC have
two separate Management Committees
consisting of GM of the Hotel/CEO of
the Property Division and other key
managers of divisions in order to discuss
matters pertaining to strategy and
operations.

Strategic risks and opportunities
arising from changes in our business
environment are regularly reviewed by
the Group Management Committee
(GMC) of the Hotel and Property
divisions at the meetings held monthly.
The role of the GMC is to provide the
necessary guidance and direction to the
Company on matters that are strategic
and long-term in nature or have the
potential to significantly impact the
division’s performance and reputation,
and to make decisions on key businesswide
policies, including operational
policies, internal controls, the Human
Resources Strategy and the Risk
Management Policy.
Compliance with Legal requirements
Compliance with legal requirements
and Group-internal rules is a significant
element of Corporate Governance for
the management of Asian Hotels and
Properties PLC.The Board of Directors,
to the best of their knowledge and
belief are satisfied that the Company
has not engaged in any activity which
contravenes laws and regulations
and all financial obligations due to the
Government and to the employees have
been either duly paid or adequately
provided for in the Financial Statements.
Risk review and control
The Board is responsible for the
formulation of the appropriate systems
of internal controls for the Group and
ensuring its effectiveness. The Board is
fully conscious that any internal control
system contains inherent limitations
and no system of internal control could
provide absolute assurance against
the occurrence of material errors,
poor judgment in decision making,
human errors, losses, frauds or other
irregularities. The Board has therefore
taken appropriate action to minimise
such situations.
There is a continuous process for
identifying, evaluating and managing the
significant risks faced by the Company
which has been in place during the
financial year and up to the date of
approval of the Annual Report and
Accounts. The Board regularly reviews
this process.
Certain aspects of its business operation
may expose the Company to both
internal and external risks. The Company
recognises the importance of controlling
these risks and minimizing the possibility
of any negative impact to the Company.
The Company is using the business
risk management [BRM] process
which is established by JKH to identify
both financial and operational risks. It
endeavors to ensure the control systems
designed to safeguard the Company’s
assets and maintain proper accounting
records that facilitate the production and
availability of reliable information are in
place and are functioning as planned.
Securities Trading Policy
The JKH’s securities trading policy
prohibits all employees and agents
engaged by Asian Hotels and Properties
PLC who are aware of unpublished
price sensitive information from trading
in Asian Hotels and Properties PLC
shares or the shares of other companies
in which the Company presently has
business interests.
Open Communication
The Company has recourse to an
Ombudsperson appointed by JKH. This
is an appointment to further strengthen
the governance structure and to
encourage and facilitate all employees to
live by JKH values.
Further the employees of the Company
have the facility to report to the
Chairman through a communications
link named “ Chairman Direct” on any
unethical behavior or any violation of the
Group values.
Going Forward
The Board is committed to the highest
standards of corporate governance in
order that the Company shall achieve
its long term sustainable growth
objectives. The Board is accountable
to the Company’s shareholders for
good governance in its management of
the affairs of the Company. The Board
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
29
confirms that the Company was fully
compliant throughout the year ended
31 March 2012 with all the principles
and provisions of the good Corporate
Governance and the Code of Business
Conduct and Ethics.
The Company’s approach to Corporate
Governance enables it to understand the
expectations of stakeholders, forecast
trends in social, environmental and
ethical requirements and to manage
the Company’s performance in an
appropriate manner.
While the Board is satisfied with
its level of compliance with the
governance requirements it recognizes
that practices and procedures can
always be improved, and there is
merit in continuously reviewing its own
standards.The Board’s program of
review will continue throughout the year
ahead.

[ corporate governance contd.... ]
The Following Chart sets out the Company’s adherence to the Corporate Governance Principles.
Corporate Governance Compliance Table
CSE Rule No. Subject Applicable requirement Status Compliance Details
7.10.1 (a) Non Executive Directors Two or at least one third of the total number
of Directors should be Non-Executive
Directors, whichever is higher
7.10.2 (a) Independent Directors Two or one third of Non-Executive Directors,
whichever is higher, should be independent.
7.10.2 (b) Independent Directors Each Non-Executive Director should submit
a declaration of independence / nonindependence
in the prescribed format.
7.10.3 (a) Disclosure relating to Directors The Board shall annually make a
determination as to the independence or
otherwise of the Non-Executive Directors
7.10.3 (b) Disclosure relating to Directors
Names of Independent Directors should be
disclosed in the Annual Report.
The basis for the Board to determine a
Director is Independent, if criteria specified
for Independence is not met.
7.10.3 (c) Disclosure relating to Directors A brief resume of each Director should
be included in the Annual Report and
should include the Directors areas of
expertise.
7.10.3 (d) Disclosure relating to Directors Forthwith provide a brief resume of new
Directors appointed to the Board with details
specified in 7.10.3(a), (b) and (c) to the Stock
Exchange.
7.10.4 (a-h) Determination of
Independence
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Complied Corporate
Governance
Complied Corporate
Governance
Complied Available with
the Secretaries
for review
Complied Corporate
Governance
Complied Corporate
Governance
Complied Board of
Directors
(profile) section
in the Annual
Report
Complied Corporate
Governance
Requirements for meeting criteria Complied Corporate
Governance
7.10.5 Remuneration Committee A listed Company shall have a Remuneration
Committee.
7.10.5 (a) Composition of Remuneration
Committee
7.10.5 (b) Functions of Human
Resources & Compensation
Committee
Shall comprise of Non – Executive Directors
a majority of whom will be Independent.
The Human Resources & Compensation
Committee
shall recommend the remuneration of
the Chief Executive Officer and Executive
Directors.
Complied Corporate
Governance
Complied Corporate
Governance
Complied Corporate
Governance

CSE Rule No. Subject Applicable requirement Status Compliance Details
7.10.5 (c) Disclosure in the Annual
Report relating to Human
Resources & Compensation
Committee
The Annual Report should set out,
a. Names of Directors
comprising the Human Resources
& Compensation Committee
b. Statement of Remuneration Policy
7.10.6 Audit Committee
c. Aggregated remuneration paid to
Executive and Non – Executive Directors
The Company shall have an Audit
Committee.
7.10.6 (a) Composition of Audit
Committee
Shall comprise of Non – Executive Directors
a majority of whom will be Independent.
A Non – Executive Director shall be
appointed as the Chairman of the
Committee.
Chief Executive Officer and Chief Financial
Officer should attend Audit Committee
Meetings.
7.10.6 (b) Audit Committee Functions
The Chairman of the Audit Committee or
one member should be a member of a
professional accounting body.
Overseeing of the –
� Preparation, presentation and adequacy
of disclosures in the financial statements
in accordance with Sri Lanka Accounting
Standards
� Compliance with financial reporting
requirements, information requirements
of the Companies Act and other relevant
financial reporting related regulations
and requirements
� Processes to ensure that the internal
controls and risk management are
adequate to meet the requirements of
the Sri Lanka Auditing Standards
� Assessment of the independence and
performance of the external auditors
7.10.6 (c) Disclosure in Annual Report
relating to Audit Committee
Make recommendations to the Board
pertaining to appointment, re-appointment
and removal of external auditors, and
approve the remuneration and terms of
engagement of the external auditor
� The Company has taken measures to
maximise the interest Income with the
assistance and guidance of the JKH
Group Treasury Department.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
31
Complied Corporate
Governance
and the Board
of Directors
Reports
Complied Corporate
Governance
Complied
Complied
Complied
Complied
Corporate
Governance
and the Board
of Directors
Reports
Complied Corporate
Governance
and the Board
of Directors
Reports
Complied Please
refer Audit
Committee
Report

An indisputable oasis in the city, this award
winning five star city hotel has become a haven
for both business and leisure travellers, where
comfort and luxury are combined for an
infallible treat of the senses. Imbibing global
cuisine with unparalleled dining venues and
service excellence with creative innovations,
this hotel epitomizes relaxation in the city
complemented with five star accessories
that go beyond the norm.
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Annual Report 2011/12
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ASIAN HOTELS AND PROPERTIES PLC
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01
32

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everyday is dif frent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
33
01

[ sustainability report ]
We continue to set benchmarks, explore opportunities and
innovate products and services that will take this concept
of each day being different that much further. We want
our stakeholders to relate to the experience we offer and
be embraced by a milieu that will make them feel special,
unique and indulged.
Making a positive change
Preamble
In becoming a benchmarked leader,
our brand truly encompasses the
depth of the axiom, “Every Day is
Different”. When it comes to our
business, our ethos is to ensure that
each of our stakeholders experiences
a unique personalisation, that makes
their interaction with us a delightful
experience. We continue to set
benchmarks, explore opportunities
and innovate products and services
that will take this concept of each day
being different that much further. We
want our stakeholders to relate to the
experience we offer and be embraced
by a milieu that will make them feel
special, unique and indulged. But to
give this continuous experience, we also
know that we have to be a step ahead
of everyone else.
And this is what spurs us to make sure
that each day we develop products and
services that are impactful and visionary,
that our stakeholders become partners
in our journey and that as a responsible
corporate steward, our decisions and
actions must impact them positively.
Through the years we have pioneered
best practices, introduced global
standards and imbued a platform of
accountability, transparency, values and
ethics to ensure that our stakeholders
are truly proud to be associated with
us and look forward to a continuous
journey where “Every Day is Different”.
About this Report
Asian Hotels and Properties PLC’s
Sustainability Report presents the
Group’s attempts to report on
performance on the triple bottom line
concept. However, it must be noted
that this year, a principal portion of the
sustainability initiatives including the
strategy has been led by Cinnamon
Grand Colombo, which as our flagship
hotel has undertaken to moot the
principles, concepts and actions for
sustainability under its umbrella. This
is also due to the fact that our property
development sector has now been
completed and handed over and hence
the intervention from the Group ceases
at this point. Cinnamon Lakeside
Colombo which functions as subsidiary,
while aligning itself to the concepts of
the overall JKH Sustainability Strategy,
does not fully report in this section, due
to that hotel having its independently
published Annual and Sustainability
Report.
The exercise of sustainability reporting
however is a very apt exercise for us
as we are keen on imbuing the current
norms of corporate governance and
sustainability demands required from us.
With this reporting process, while we
are able to highlight our achievements,
we can also identify the gaps that exist
and find solutions to the challenges
that ensue and focus on areas of
improvement.
Reporting Standards
We have attempted to produce this
report aligned to prevalent standards
in the corporate sphere including those
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
34
expected of us by the regulatory and
standard bodies. The process carries
the basics of the Global Reporting
Initiative guidelines. We also adhere
strictly to the government diktats
mandated by the Ministry of Economic
Development, the Sri Lanka Tourism
Development Authority and the Central
Environmental Authority and germane
organisations that may from time to time
have an input into our operations.
The report covers the Group’s
performance and operations for the
year up to March 31st 2012 and
indicate, wherever possible, qualitative
descriptions and quantitative metrics
which will further augment our claims.
Financial information is reported in SL
Rupees.
Feedback
Stakeholder engagement remain integral
to our sustainable development process
and we would be most appreciative
of feedback on this report. External
feedback and our other communication
initiatives are key components to our
continuous improvement strategy.
We welcome any comments and
suggestions that ensue constructiveness
wherever possible and applicable.
Please direct your comments to:
Tharika Goonathilake
Manager Marketing Communications &
Sustainability
Cinnamon Grand Colombo
77, Galle Road, Colombo 03.
Email : communications@cinnamongrand.com

A Letter from the Chairman
Furthering our reporting process
“There is a fundamental reason that
we pursue systems and processes.
It is simply to ensure that our
overall philosophy of transparency,
accountability and governance
is carried through. This is why
sustainability reporting is important to
us. From a John Keells perspective,
this is an imperative, a pre-requisite
that is needed to carry on business in
any environment.
Business can no longer isolate itself
from its surrounds, nor can it simply
journey on speculation and trends.
At Asian Hotels and Properties
PLC, the dynamics begin with
mindset – a mindset that provokes
us and invigorates us to set the
trends, become the leader and set
the benchmarks. In doing so, it is
important that we don’t lose sight of
our fundamentals. And hence, we
Materiality Analysis
Material issues which have a significant
current or future impact are analysed
on the current available data and on
the trends we see in external environs,
monitoring stakeholder expectations
and concerns through direct dialogue,
feedback and other available
communication channels. With this
process of sustainability reporting, we
have also begun identifying economic,
Cinnamon Grand Colombo - where luxury is a way of life
revert to this cycle of sustainability
reporting.
In establishing and practicing the very
rudiments of the triple bottom line
concept, Asian Hotels and Properties
PLC strives to conform to the norms
of sustainability practices permeating
the John Keells Group and this year,
you will observe that our flagship hotel,
Cinnamon Grand Colombo has taken
leadership in the Asian Hotels and
Properties PLC Group’s sustainability
journey. This we feel is a step in the
right direction as given the size, scope
and past records, the hotel is geared to
set an example for others to emulate.
There have been numerous strategies
that have been initiated during the
year, as you will see further on in
this report, targets mapped out
and targets achieved. There are
aggressive maps being chartered
to reduce our carbon footprint,
ensure community empowerment
social and environmental issues that will
impact our stakeholders and ourselves,
while also being able to observe
recurring issues and trends that need
attention.
It is imperative that in this current
environment of emerging competition
and fast moving global trends, we
imbue this culture of materiality, wherein
internally our team is cognizant of
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
35
and customer satisfaction. There
are new avenues being explored to
grow our business, where with wealth
creation, shareholders will continue
to be nurtured, while knowledge
enhancement and skill development
have become a vital tool to keep the
business on track and in sight of its
vision.
The process then has already begun
but it is a process that will also
evolve. It will be the prelude that will
set the tone for the future journey,
while learning from the lessons of the
past. And it will certainly emphasize
that Asian Hotels and Properties PLC
continues its commitment to being a
sustainable Company, that its positive
actions will positively impact our
stakeholders.
Susantha Ratnayake
Chairman
Asian Hotels and Properties PLC
our responsibility in ensuring that
sustainability issues are dealt with in
the apt manner, while we also use this
materiality to shape our future plans and
corporate strategy.
Company Profile
Asian Hotels and Properties PLC comes
under the umbrella of John Keells
Holdings and has been in operation
since September 2003. John Keells

[ sustainability report contd.... ]
Holdings PLC has a history that dates
back to 1870 with its beginnings as
a produce and exchange brokering
Company, displaying unbridled growth
post independence in 1948. Today,
John Keells Holdings is the largest
listed conglomerate in Sri Lanka with
its shares listed on the Colombo
Stock Exchange and also being the
first Sri Lankan Company to obtain
a listing internationally, being quoted
on the Luxembourg Stock Exchange.
The Group, with its highly diversified
presence in transportation, leisure,
property, consumer foods and retail,
financial services and technology has
companies in India, Mauritius, Maldives,
Singapore, UK, USA and the UAE.
Asian Hotels and Properties PLC
is primarily involved in the leisure,
real estate development, retail and
condominium development industries
in Sri Lanka. It is headed by a Board of
Directors led by the Chairman of John
Keells Holdings supported by some from
the Main Board of the parent Company
and other Directors brought in to add
Our Stakeholders and How We Engage Them
value to the relevant business operations
the Company is engaged in with their
speciality and expertise.
The Sub Divisions which come under the
purview of Asian Hotels and Properties
PLC are the Property Development
Division encompassing The Monarch
and The Emperor at Crescat City and
The Crescat Boulevard, while the Hotel
Division constitutes Cinnamon Grand
Colombo, with Cinnamon Lakeside
Colombo as subsidiary.
Sustainability Policy
Being a Company under the umbrella
of John Keells Holdings, we mirror
the tenets of the parent Company’s
sustainability policy, striving to operate
within the sustainability policy and
guidelines etched within the corporate
ethos.
The John Keells Holdings
Sustainability Policy:
Sustainable development is a globally
accepted approach to sustaining
economic growth without harming our
Investors Shareholders, Institutional investors, Banks,
Multilateral finance agencies
Government Government of Sri Lanka, Relevant Government
Ministries
Legal & Regulatory
Bodies
Local Authorities, Municipal Council, Bribery
Commission, Inland Revenue, Customs
Department, Colombo Stock Exchange, Sri
Lanka Tourism
Business Partners Suppliers, Valued business partners, Contractual
partners
Society / Pressure
groups / Media
Industry Peers/
Competitors
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
36
planet or exhausting its resources while
improving the quality of life for its current
and future inhabitants. Long term value
creation for our varied stakeholder
groups depends on the sustainability
of the performance of our businesses,
our environment and the communities in
which we operate. In this endeavour, we
are committed to achieving the highest
standards of corporate citizenship.
Aligned to this policy, AHPPLC strives
to conduct activities that would reflect
the expected high standards and best
practices expected of a Company
coming under the umbrella of John
Keells Holdings. This includes being
in compliance with all regulatory
requirements, while ensuring an
accountable and transparent culture
permeated in our relationships with all
our stakeholders. We strive to create
an empowering and enabling work
environment for our team while also
being mindful that our customers’
aspirations must be exceeded and
therefore all our products and services
must be of the highest quality. Into
Annual Reviews, Quarterly Reports, One on One
Meetings and Phone Calls,
Meetings, Discussions, Presentations and
Briefings
Regular meetings and Discussions
Regular meetings, Correspondence, Monthly
market reports, Conference calls and E-mails
Opinion Leaders, Media, Environmental Groups, Correspondence, Discussions, Media coverage,
Certification and Accreditation
Trade Associations, Competitors Participation in Conferences/Discussion forums,
Representing associations
Employees All team members Regular forums, Surveys, One to one
performance reviews
Customers Hotels’ resident and walk-in guests, Banquet and
F&B customers, Renters, Lessors, Owners,
Communities Schools, Entrepreneurs, Hospitals, Rural
craftsmen and artistes, SMEs, Other community
segments who interact with AHPPLC
One to one interaction, Discussions, Surveys,
Fellowship events
One to one interactions, Correspondence,
Discussions, Forums, Regular meetings

this equation, we bring in our supply
chain and valued business partners as
well as our communities where open
communication and free dialogue
enables us to work in harmony with
these stakeholders. We remain
cognizant of our responsibility of striving
to reduce our carbon footprint and
ensure that a healthier planet is left for
future generations to thrive in.
Governance
Coming under the umbrella of John
Keells Holdings PLC, a conglomerate
of repute, we strictly conform to the
stringent governance and accounting
policies guidelines followed by the
Group. John Keells Holdings is
committed to upholding the highest
standards of business integrity and
professional ethics, which, judging by
the accolades received from numerous
entities committed to high governance
principles, emphasises that AHPPLC too
remains aligned to the applicable diktats.
The Board is responsible for strategic
direction and overall policy, while the
relevant CEOs are then delegated with
the responsibility of implementation.
These are all performed according
to pre-determined operating and
management structures to ensure
streamlining of decisions, transparency,
accountability and sincerity of action.
Our financial, governance and
risk management policies are in
conformance to the standards and
guidelines laid down by the Colombo
Stock Exchange, the Institute of
Chartered Accountants of Sri Lanka,
the Companies Act and other relevant
statutory authorities and laws applicable
to govern such issues. In addition,
Cinnamon Grand has identified
risk areas that may have an impact
individually on our business, which
has led it to establish and implement
streamlined processes and controls to
minimise these risks and take preventive
action wherever necessary. Each
risk area has an accountable Head
of Department who is titled a ‘Risk
Owner’ and mans a team who keep
abreast of the risks that may occur and
immediately take the necessary course
of action and where necessary brings it
to the notice of the Chief Executive. A
more detailed version of our corporate
governance and risk management
practices is detailed within this report.
We also remain committed to the
corporate values and written code of
conduct prevalent within the Group,
wherein the Board of Directors, senior
management and employees are
expected to strictly adhere and follow
in performing official duties, with the
overarching principle of ensuring that
the Group image remains positive and
pragmatic.
JKH Corporate Values
We are passionate about
� Changing constantly, re-inventing
and evolving
� Striving to get things right the first
time
� Doing the right things always
� Constantly raising the bar
� Fostering a great place to work
� Building strong relationships based
on openness and trust
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The four basic principles of the JKH
code of conduct and ethics are;
� The allegiance to the Company and
the Group
� The compliance with rules and
regulations applying in the territories
that the group operates in
� The conduct of business in an
ethical manner at all times and in
keeping with acceptable business
practices
� The exercise of professionalism and
integrity in all business and ‘public’
personal transactions
John Keells Leisure Sector
In November 2010, the John Keells
Leisure Sector unveiled and cascaded
its vision and five pledges to the
entire JKL team in order to create the
apt environment for Associates to
be motivated and energized to truly
become the Trendsetter in Hospitality in
Sri Lanka. Judging by the pioneering
and innovative efforts of the city hotels
and resorts under this umbrella, the five
pledges have surely become a way of
life for the Sector Team.
One of the facets that made the pledges
unique was that it allowed self judgment,
placing a qualifying factor for the
Associate, indicating adhering, shorfalls
or working well under the pledge. This
feature naturally brought in extensive
results as each Associate was given
the motivation to strive towards their
individual capabilities which eventually
did permeate to his/her place of work.

Vision
[ sustainability report contd.... ]
We will always be the Hospitality
Trendsetter
The Five Pledges
I will Get It Right the First Time - all
the Time
I pledge to use all facts available to
me and my insights and experiences
to evaluate a range of options before
making a decision and do my job in a
way that no re-work is necessary
I will Care
I pledge to care for and respect people,
property and information, to be mindful
and considerate in my words and deeds,
thinking about their consequences for
others
I will Stand Out wherever I am
I pledge to make a unique contribution,
using my abilities and gifts to create
memorable moments for our guests and
to be genuine in whatever I say and do
I will Empower
I pledge to give others and myself the
freedom to take care of our guests,
the authority to do whatever it takes to
satisfy their needs and the protection
from rebuke if these actions are in the
best interest of the guest (as long as it is
moral, ethical and legal)
I will be Green
I pledge to respect, preserve and protect
the beautiful natural world and valuable
resources around me, to reduce waste
and energy consumption, re-use and recycle
materials wherever possible
The results were more than evident
when the Sector celebrated the true
spirit of the Team at the John Keells
Leisure Awards which was held to
highlight the various initiatives and
projects embarked upon the various
teams. The City hotels did admirably
well when Cinnamon Grand Colombo
were conferred awards under all five
pledges, and also the “Innovation” and
the coveted “Spirit of Leisure Award”,
winning a total of seven awards, while
Cinnamon Lakeside underlined the
workings of the pledges in their daily
operations, winning three awards.
Sustainability Responsibility
Based on these five pledges and the
vision unveiled by the JK Leisure Sector,
Cinnamon Grand Colombo established a
dedicated team, headed by the Manager
Sustainability to be responsible for
Sustainability initiatives, meeting targets
and mapping shortfalls.
Positively impacting the industry and
economy
In both the property development sector
and the Hotel sector within the city
hotel milieu, AHPPLC holds fast to its
leadership position, having changed the
skyscape of the commercial capital of
the country with its iconic condominium
complexes and with both Cinnamon
Grand Colombo and Cinnamon Lakeside
Colombo deemed as the Best Five Star
City Hotels in the country. The latter
specifically, is not an easy laurel to have
been conferred, given that the city hotel
environment does have a considerable
presence of international hotel chains
and it is certainly commendable that this
indigenous totally Sri Lankan brand has
reached the zenith.
In the past year, the thrust towards
adding impetus to the tourism
development strategy gained
momentum with numerous global hotel
chains expressing interest and signing
agreements to become a part of the
country’s hospitality landscape. This we
consider to be extremely positive as not
only does it showcase the confidence
that the country has garnered among
foreign investors and thus growth
potential, but it also fuels employment
generation, higher purchasing power,
better lifestyles and from an industry
perspective, will infuse a continuous
improvement platform and global best
practices and standards. Given that
Sri Lanka is envisioning to attract 2.5
million high-end tourists by 2016, it
is imperative that the products and
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ASIAN HOTELS AND PROPERTIES PLC
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services that Sri Lanka offers is on par or
better still exceeds, international norms.
As a Group, we have contributed
considerably to the development of both
the property development sector and
leisure industry. The Monarch and now
The Emperor, which was completed
this year, has been a strong attraction
in bringing in foreign exchange by both
expatriate Sri Lankans and to a lesser
extent foreigners who considered these
condominiums as astute investments.
This proved to be apodeictic, as from
the time of the pre-sale to handing over,
the condominiums appreciated from
60% to 100% in true value.
Similarly, both city hotels have been
active contributors to the macro
economic landscape both from an
industry perspective and development
aspect. Besides being the largest
employer among the city hotels,
collectively, the two hotels hold the
largest number of rooms and the
largest number of restaurants in the city
hotel landscape. Hence, this makes it
the largest contributor in the Tourism
Development Levy and Taxation from
city hotels.
Cinnamon Grand in particular, having
crossed the Rs. 1 Bn mark in profitability
this year, which certainly is a landmark
achievement not only within the John
Keells Group Leisure Sector but also
from the perspective of a singular hotel’s
contribution to TDL, VAT and service
charge. It also holds the largest room
share from among the city hotels at
32%, the highest revenue share at
32.6% and resultant to this highest Rev
PAR at Rs. 10,482, Yield Premium at
127% and penetration at 124%, all clear
quantitative leadership features that
firmly grants it undisputed leadership.
Given the reputation both hotels have
garnered among the corporate entities,
there was significant improvement in the
number of corporate guests staying at
the two hotels and thus, given the higher
customer profile, also saw an increase in

Cinnamon Grand was the preferred venue for internationally acclaimed personalities - here legendary Bollywood singer Asha Bhosle is being welcomed
by Director Rooms Division Chris Quyn
per day spend as well auguring very well
for the industry in general.
Hence, AHPPLC’s contribution in
taxation this year amounted to a healthy
Rs. 873 Mn, which certainly augurs
well for the accelerated development
strategy being employed for the country.
This total taxation component collates
VAT which is Rs. 564 Mn, Income tax at
Rs. 110 Mn, NBT noted at Rs. 131 Mn
among other details. What is significant
is also that Rs. 59 Mn was paid out as
Tourism Development Levy, which is
a sizable contribution to the National
Tourism Development Strategy which is
the fundamental platform for developing
the leisure and hospitality industry.
The AHPPLC Group employs a total of
2,103 associates, which signifies the
astute expansion strategy that has been
implemented and also the contribution it
has infused in generating employment,
especially for young people, as of this, a
total of 799 are below thirty years of age.
Cinnamon Grand Colombo employs
500, while Cinnamon Lakeside employs
293. With our business showing
assured signs of growth, we have also
been directly involved in seeing our
valued business partners increase their
team numbers to cater to our increasing
demands. Similarly, contract employee
numbers have seen increases and
thus, spin off business ventures have
been mooted with a wider portfolio of
products and services demanding more
supply and input from our partners.
This naturally signals cascading levels
of employment generation across the
board.
The Group is synonymous with infusing
global best practices and operating in
a milieu of continuous improvement.
This has thus seen an extensive array of
kudos and accolades being presented to
the various companies within the Group,
which is evidence that not only are the
entities sound in governance, ethics
and accountability, but it also walks
the talk in ensuring that all practices,
standards and regulations are espoused
and constantly reviewed and upgraded.
This has also served in creating industry
benchmarks.
Our national contribution is further
augmented in that Cinnamon Grand
is deemed as the preferred partner for
most national events, some being held
abroad. The hotel has unwaveringly
supported the national cricket team and
hosted not only the Sri Lankan team
but also the touring teams continuously,
whenever tournaments are played in
Colombo. This has now extended to
the hotel also providing outdoor catering
services at match venues.
In addition, when Sri Lanka bid for the
Commonwealth Games in St. Kitts,
Cinnamon Grand was billed as the
hospitality partner and requested to
showcase the country, its cuisine and
attractive features. One of the biggest
challenges faced by the team was the
re-enactment of a rural Sri Lankan
Village, a Kada Mandiya. However even
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
39
with considerable limitations given that
St. Kitts has no Sri Lankan diplomatic
presence, the Cinnamon Grand team
managed to ensure, one of the most
successful showcasing of the country
ever seen. From cadjan to clay pots,
coconut shell spoons and cuisine that
was authentically Sri Lankan, the team
produced an amazing canvas of Sri
Lanka within 24 hours of arrival, leaving
no room for mistakes, unequivocally
basing its success on the JKL Pledge
of ‘I will get it right the first time all the
time’.

[ sustainability report contd.... ]
Awards and Accolades
AHPPLC
Annual Report Awards
Silver Award at the Annual Report
Awards 2011 organised by the Institute
of Chartered Accountants of Sri Lanka
(ICASL) for Diversified Holdings with
upto Five Subsidiaries.
Cinnamon Lakeside Colombo
Sri Lanka Tourism
Best Five Star City Hotel for 2010
Annual Report Awards
� Bronze Award at the Annual Report
Awards 2011 organised by the
Institute of Chartered Accountants of
Sri Lanka (ICASL) in the Hotel Sector
World Spice Festival
� First Place - Colombo Chicken Curry
Food Competition
� EGB Mocktail Champion of the Year
Runner Up for Best Themed Stall
� Colombo Municipal Council A Grade
in Hotel Hygiene Classification Unit
� Third Place in Bocu d’Or Cooking
Competition
Green Globe Certification
� First Five Star to gain certification
and only Sri Lankan hotel to be recertified
Cinnamon Grand Colombo
Sri Lanka Tourism Awards
� Best Host Hotel – Culture (Nuga
Gama)
The Miele Guide Certification
� One of Asia’s Best Restaurants
(Lagoon)
Tripadvisor
� No 1 Five Star Hotel in Sri Lanka
LIVING Magazine Hotel Awards
� Best City Hotel Award
A World of Choice – Emirates Holidays
� Best City Hotel – Five Star Rating
World Spice Food Festival
� Sri Lanka Tourism Best Themed
Restaurant (The Courtyard)
� Colombo Cooking Challenge Silver
Medal
All Island Marie Brizard Bartender
Cocktail Competition
� All Island Championship Award (Gold
Medal) in Flaring Category
� All Island Championship Award (Gold
Medal) in Classic Cocktail Category
� Silver Medal for Best Creative
Cocktail
� Friendliest Bartender Award
� Best Presented Cocktail Award
� Bronze Medal (Classical Category)
Annual Culinary Awards 2011
� Gold Excellence Award for
Outstanding Excellence (total of 35
Medals)
Colombo Municipal Council
� Best Five Star Kitchen in the City
John Keells Leisure Awards
� Highest number of awards by
a single hotel, winning in all five
pledges as well as the “Innovation”
and “Spirit of Leisure” awards.
Green Globe Certification
� Highest percentage for a city hotel
Cinnamon Grand has surely set the
standards for five star hospitality in Sri
Lanka and in the wake of its industry
accolades, seen a flood of similar
practices coming into the fray among
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
40
other five star city hotels. Similarly, the
hotel is used as a case study in growing
an indigenous brand to become a force
in international hoteliering by numerous
professional and academic organisations
which once again, is evidence of the
positive influence that is permeated to
develop industry and business.
The emphasis to maintaining high
standards is further evidenced when the
Colombo Municipal Council accorded
the Cinnamon Grand Kitchen with
the status of ‘Role Model Kitchen’ in
addition to the Best Five Star Kitchen
in the City Award, conferred due to
its stringent hygiene standards, which
augurs well for uplifting standards for the
entire industry.
With the extraordinary results Cinnamon
Grand has reaped in this year, it
also continues to ensure that these
results are quantified positively to all
stakeholders, especially its team which
remains very aligned to the hotel’s vision.
Thus, service charge levels, which are
the highest in the industry and averaging
to Rs. 28,871 per month for this year,
is presented to every single associate,
without discrimination of grade, position
or standing. This is yet another practice
that is unique to Cinnamon Grand and
would hopefully set the trend for other
hotels to follow.
Developing Skills
Our training and development initiatives
are comprehensive and far-reaching,
designed to ensure that our team not
only works on the platform of the ‘right
person for the right job’ but also has the
apt knowledge and skills to add value
to their roles and responsibilities. Each
team member is singularly identified for
their leadership and pragmatic qualities.
They are aligned to the Company’s
vision and a future path is imbued as a
knowledge gaining exercise to enable
them to use the knowledge garnered,
not only for their personal career
advancement, but also to develop the
workplace and industry as well. This
eventually permeates to having higher
skills and knowledge levels within

Sector Financial Controller, Ravi Wijewantha receiving
the Bronze Award at the Annual Reports Awards 2011
conducted by ICASL
the industry, which has been seen,
especially at the two leisure properties.
With customers requesting higher
service levels and becoming more
discerning, our team has delivered
beyond expectation as is seen later on in
this report, in the Customer Satisfaction
Survey findings. There is almost a
compulsory requirement that team
members think out of the box and this
has resulted in unique and innovative
product and service developments that
have surely etched leadership paths in
the industry.
However, developing skills is not just
among the team. We feel responsible
and duty bound to permeate knowledge
among other young people who would
benefit with the apt exposure. As an
example, this thought process has
driven Cinnamon Grand to do the
following, which in effect has seen
considerable contribution into the
industry from a knowledge garnering
perspective.
� Cinnamon Grand trained eight
of Sri Lanka’s top chefs for the
Culinary Olympics in October this
year. The chefs representing
different hotels from all parts of Sri
Lanka, underwent culinary training
at Cinnamon Grand’s signature
restaurants with immense input
from the hotel’s chefs, specialising
in signature cuisine. This is also
the first time that a team of chefs
from different hotels is representing
Sri Lanka as a singular team and
certainly an accolade for Cinnamon
Cinnamon Grand General Manager Rohan Karr receiving the Best Host Hotel Culture Award
for Nuga Gama at Sri Lanka Tourism Awards 2011
Grand, to have pioneered yet
another initiative for the industry.
� Apprenticeship and industrial training
was provided for an average of 162
students twice a year from the Sri
Lanka Institute of Tourism and Hotel
Management (SLITHM) and other
private hotel schools islandwide.
� A structured Management Trainee
Development Programme was
developed for Hotel School
graduates and final year university
students last year and is currently
being successfully implemented.
� An 18 month cookery training
programme is conducted annually
for school leavers to encourage
them to venture into their own
businesses, thus creating an
entrepreneurial pool of young people
who will be aptly equipped to make
a success of their venture.
� Knowledge sharing and
dissemination among members
of professional organisations on
subjects ranging from leadership to
innovation, using Cinnamon Grand
Colombo as a case study that will
encourage others to follow similar
tenets in developing their businesses
and individual selves.
Contributions to industry strategy
and journey ahead
Actively participating in industry related
issues via forums and discussions
while sharing the experiences and
knowledge within our organisation,
Cinnamon Grand Colombo remains very
proactive in industry issues and is a key
contributor to discussions pertaining
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
41
to tourism development and strategy
mooted by the public and private sector.
A unique initiative by Cinnamon Grand
this year was the launch of a First Day
Cover to mark World Tourism Day
which positions it as the first hotel in the
post war era to celebrate the country’s
heritage. The depiction of facets of
Nuga Gama, which in itself is an icon in
sustainable best practices, showcased
the uniqueness of the country’s tourism
product. The ceremony, held under
the 200 year old banyan tree which is
depicted on the stamp along with the
‘Gamagedara’ and the rustic bridge
known as the ‘Edanda’ in the village,
was issued by the Post Master General
of Sri Lanka. The first day cover of
this 30mm x 30mm Rs. 5 stamp which
falls into the personalised category
was presented to Chief Guest Hon.
Minister of Economic Development,
Basil Rajapakse, while the distinguished
gathering included the Deputy Minister
of Economic Development Laxman Yapa
Abeywardena, Director of the Philatelic
Bureau Channa Silva and the diplomatic
corps.
Cinnamon Grand is also a member of
the Ceylon Chamber of Commerce,
the Pacific Asia Travel Association,
Indo-Lanka Chamber of Commerce,
American Chamber of Commerce,
Sri Lanka Conventions Bureau, SKAL
International and the Tourist Hotel
Association of Sri Lanka. In addition,
the hotel holds membership in business
councils of Sri Lanka for Britain, Japan,
New Zealand and Malaysia, which adds

[ sustainability report contd.... ]
impetus to gaining awareness of regional
business trends as well as contribute
towards the regional and global decision
making processes.
Cinnamon Lakeside too contributes
significantly to business strategies and
charters with extensive memberships
being held in business councils for
Canada, the Maldives, Malaysia, Britain,
Netherlands, Australia-New Zealand,
Japan, Poland, France, Singapore, Italy,
Germany, Russia, Pakistan, Vietnam and
the Indo-Lanka Chamber of Commerce
and Industry.
Fuelling the F&B industry
Between Cinnamon Grand and
Cinnamon Lakeside, Colombo city has
the largest number of restaurants under
a single umbrella and the largest options
of F&B choices with probably the
country’s most innovative F&B features.
This undoubtedly sets the stage for the
industry to gear itself towards uplifting
standards and introduce more F&B
innovations, to add to what the two
Cinnamon City Hotels have to offer.
Cinnamon Grand todate remains the
largest choice in F&B under one roof,
with thirteen unique epoch making
dining options. It is also the hotel in
the city that has the highest number
Cinnamon Grand’s eclectic range of cuisine
of buffets on a Sunday. Besides
Lagoon, the open sea-food market
styled restaurant and Nuga Gama
which imbues the ‘look and feel’ of
the authentic rural village in the heart
of the city constructed on premise of
sustainability, the unprecedented awards
won by the team for numerous F&B
products and practices, has surely set
the trend.
Similarly, Cinnamon Lakeside, with its
collation of ten F&B offerings including
the innovative cruising restaurant, 8
Degrees on the Lake, has created a
leadership presence that translates into
a natural upliftment of industry offerings.
The myriad food festivals seen over
the years has also introduced wider
options in cuisine, especially in bringing
lesser known cuisine for customers to
experience.
Making a Difference to our Valued
Business Partners
Our valued business partners are
extensive in category and nature, but
have, by working with us, united on
the singular platform of continuous
improvement. Given that we are
a people business, working on the
foundation of, ‘By the people for the
people’, it is imperative that our valued
business partners, who encompass
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
42
everyone from contractual labour,
farmers from rural Sri Lanka, produce
suppliers, rural craftsmen, village
cook women at Nuga Gama, retired
tailors who help us in our Banners to
Bags project and suppliers for all our
requirements, benefit from working
with us. They are very centric to the
sustainable tenet in our supply chain.
Given that the entities they partner
are award winning organisations that
emphasise on best practices and global
standards, the cycle must continue to
ensure that our valued business partners
too are aware of the stringent standards
and are equipped to conform and
comply. This will in turn, ensure that their
standards and emphasis to quality and
productivity is enhanced.
Through continuous training,
development, dialogue and hands
on discussions with these diverse
stakeholder segments, we have seen a
palpable improvement in the operations
of all our valued business partners.
This certainly augurs well for creating
a sustainable business, where long
term relationships are the panacea for
continuity, development and constant
improvement.
Developing micro and small
entrepreneurs
An extensive network of farmers and
producers form an integral link to
the Cinnamon Grand supply chain.
Sourcing over 20% of the total stocks
of vegetables, seafood and fruit from
rural suppliers, Nuga Gama, which is
the hotel’s Sri Lankan restaurant, works
almost exclusively micro and small
farmers and entrepreneurs. This is
truly representative of the sustainability
culture we want to imbue, not only at
Nuga Gama but across our properties,
evidenced by the introduction of
indigenous fruit and vegetables into
menus in most restaurants, local sweets
and confectionery in order to promote
local produce.
Nuga Gama also employs about thirty
local craft families enabling them to

A selection of crafts that are sold at the Nuga Gama to
promote small scale traditional industries
supply their craft through the shop at
Nuga Gama and gain a sustainable
income. These craftsmen prior to this,
have had no exposure to urban markets
nor have they been able to market their
crafts beyond their villages. Similarly,
the restaurant gains the expertise of
village women to cook true authentic
Sri Lankan fare to ensure that the true
flavour of Sri Lankan cuisine is retained
within the restaurant. These women
are thus empowered with not only a
sustainable income having showcased
their inherent talents in the village
kitchen, but are also trained to ensure
conformance to five star hotel standards
in both safety and hygiene, which
naturally improves their knowledge
threshold.
Promoting local craft, culture and
heritage
Very intent on promoting the diverse
platforms of Sri Lankan craft, culture
and heritage to customers, Cinnamon
Grand brought in a new dimension to
the tourism industry by ensuring that
indigenous arts, craft and culture must
be given impetus to not only develop
but also to be appreciated. Nuga Gama
has become the catalyst in this, using
the unique environs of the rural village
setting to make this a reality. The village
store encourages patrons to purchase
a souvenir of a Sri Lankan handicraft
produced by small scale rural craftsman,
ensuring the preservation of indigenous
arts and crafts, while also adding
impetus for small industries to develop.
Nuga Gama, Cinnamon Grand’s - village in the city offering tourists a traditional Sri Lankan
rural experience in the heart of Colombo
Performing arts is another platform that
gains prominence, bringing in the Shilpa
Ranga Cultural Dance Troupe to depict
Sri Lankan village folktales, myths and
traditions through the art of dance,
giving an insight into traditional dance
and drum rhythms of Sri Lanka which
are unique to the age old history and
culture of Sri Lanka.
There is also considerable interaction
encouraged by Cinnamon Grand with
various stakeholder groups including
students and communities, who tour
Nuga Gama and gain insight into
the customs, mores and background
of a rural village. From tree planting
campaigns to celebrating numerous
cultural, traditional and commemorative
days including World Forestry Day,
Avurudu and Vesak, Nuga Gama
continues to highlight indigenous facets
of Sri Lanka for further awareness.
The hotels also place ‘Made in Sri
Lanka’ gift and complimentary items
for guests to enjoy. These include
batik and recycled stationery, notepads
made from elephant dung paper, local
confectionery produced from jaggery,
cashewnuts, coconut and cinnamon,
books fabling Sri Lankan folk tales,
architecture and scenic splendour in
support pf Sri Lankan authors to take
this concept further.
Our Customers
Customers continue to be the invaluable
dimension that spurs growth, energizes
to become leaders and shapes
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
43
paradigms that further the industry.
However, customers are also the axis
upon which we measure the barometer
of customer service, the results of which
can be observed instantly in the case of
any deviation.
Customers are discerning and
demanding and we would not have
it any other way as it is these lofty
demands that make us innovate, think
out of the box and pursue opportunities
that others deem ambitious.
Cinnamon Grand’s customer satisfaction
survey, which as seen in the graph on
page 44 surely and steadily maintained
a score of between 84% to 88% in
exceeding expectations with both overall
guest stay and in F&B service levels.
This is truly remarkable as in some
instances, we have touched the zenith
of 88%, a facet unique in any customer
satisfaction survey.
The F&B Survey also brings to light that
the T&D initiatives employed during the
year has gained fruition.
There is a clearly marked upward
momentum in F&B Service over the
curve of last year, which showcases that
the emphasis we placed on ‘Getting it
right the first time every time’ as part of
our five pledges, is more than rhetoric,
but has translated into action.

90%
88%
86%
84%
82%
80%
78%
76%
74%
72%
70%
[ sustainability report contd.... ]
Trip Advisor, the travel website that
has become an imperative tool among
international travellers to gather travel
information through the reviews and
opinions posted by customers, also
placed Cinnamon Grand at a high of
88% in its annual survey.
90%
87%
84%
81%
78%
April-11
Quarter 01
May-11
Guest Satisfaction - F&B Service “Exceed”-2010/11 Vs. 2011/12
Cinnamon Grand-Guest
Satisfaction 2011/12 by
“tripadvisor”
Quarter 02
June-11
Quarter 03
July-11
Cinnamon Grand
Quarter 04
Last year (2011) Cinnamon Grand was
ranked # 1, city 5 Star Hotel by the
“tripadvisor”
August-11
September-11
October-11
2011/2012
2010/2011
November-11
December-11
January-11
February-11
Tripadvisor thus positioned Cinnamon
Grand at the zenith as the City Five Star
Hotel.
Quantitatively, the surveys translated
into extraordinary growth numbers.
Cinnamon Grand served the highest
number of F&B covers at 906,434 pax
for the year among all five star city
hotels, increased its market share by
1% to 32% and saw its F&B revenue
grow above City Market average which
was at 11%. This also brought in a total
F&B revenue of Rs. 1.66 Bn, which is
the highest in the country from a single
hotel and a 15% growth from last year’s
revenue. This is despite two outlets,
namely Taprobane and Breeze Bar being
closed for refurbishment in Q4. It was
December 2011 that posed a peak for
both banquets and F&B. The revenue
came from Taprobane and Lagoon.
Cinnamon Lakeside meanwhile served
a total of 589,809 covers in both F&B
and Banquets, reaping the benefits of
the refurbishment it exercised in the last
year and the introduction of the floating
restaurant. The largest contributor to the
F&B revenue was “The Dining Room”
with a contribution of Rs. 162.9 Mn.
There are plans to further enhance the
product offering with the Long Feng
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
March-11
44
restaurant undergoing refurbishment in
the next year, expansion of the Executive
Lounge and more expansive cuisine
focus.
Occupancy also remained well above
market average at Cinnamon Grand
which holds 32% of room share in the
city, selling a total of 128,675 rooms
with an occupancy average of 70.2%.
With the application of the minimum
room rate policy and considerable value
additions being effected to staying
guests, revenue however went to
unprecedented levels at Rs. 1.9 Bn this
year. From a Key Performance Indicator
standpoint, Cinnamon Grand continues
to showcase above industry averages
and remains the highest in quantifiable
performance among Five Star City
Hotels.
With a new General Manager at the
helm, Cinnamon Lakeside steered itself
into being positioned as the Best Five
Star City Hotel for 2010, (an accolade
won previously by Cinnamon Grand
Colombo three times in addition to the
Hall of Fame Award), augmenting this by
selling 69,616 room nights to generate
a revenue of Rs. 1.0 Bn. Average
occupancy at the hotel stood at 55% as
the hotel was refurbishing some floors
and there was resultant lost of room
nights.
This year also marked a milestone for
our property development sector in
that it closed the final chapter of its
ongoing operations. Having completed
the third and final project that had been
undertaken under the AHPPLC umbrella,
The Monarch was handed over to the
Council of Management and thus all
input from AHPPLC ceased.
However, there will be continued
interaction with Crescat Boulevard which
will, as it did this year, contribute an
average of Rs. 700 Mn to the Group’s
bottom line. The success of this mall is
amply seen with 3% increase in footfall
and the popularity it has gained with
high-end brands requesting shop space.

The newly refurbished Taprobane restaurant
The Apple Store opened this year,
bringing more options of technology into
the shopping space.
The continued emphasis on standards
and certifications ultimately adds value
to the final product and service given to
the customer. Both city hotels are now
Green Globe Certified, with adherence
to the ISO certifications and standards
being a daily occurrence.
There is also a comprehensive strategy
established to deal with customer
complaints, which gain the focus of the
General Manager whenever necessary,
unless handled by the respective
Heads of Department. Associates are
comprehensively trained in all Minimum
Quality Standards (MQS) and Standard
Operating Procedures (SOPs) and
monitored regularly during briefings and
‘hands-on’ restaurant operations. This
is augmented with monthly brand audits
and spot checks by senior managers
and mystery guests, to ensure product
consistency. Weekly brainstorming
among F&B management also helps
raise benchmarks on service levels,
with regional case studies brought in for
added impetus into the growth curve.
To ensure that the properties remain
cognizant and attuned to customer
expectations, numerous communication
channels are pursued. From the General
Managers hosting their main customers
to an evening of cocktails annually, to
periodic one to one visits and dialogue
initiation, relationships between the
hotels and customers are continually
monitored.
The Lagoon at Cinnamon Grand was ranked as one of the Best Restaurants in Asia
- by the Miele Guide 2011
The veritably large portfolio of
international corporate heads, celebrities
and renowned sportspeople seeking
accommodation at both Cinnamon
Grand and Cinnamon Lakeside, despite
Colombo having other city hotels with
international affiliations and branding,
showcase the market leadership
title that customers and guests have
continued to bestow on these hotels.
Both hotels have strictly adhered to the
Minimum Room Rate Policy introduced
by the industry, while presenting
customers with an above par product
and service standard exceeding their
expectations.
Marketing and Advertising
There has always been a concerted
effort to customise marketing and
advertising initiatives aligned to the
prevalent diverse customer portfolio.
Using both Above The Line and Below
The Line marketing communication
channels, experience portrays however
that ‘word of mouth’ has been our
strongest mode of marketing.
While both hotels use websites, select
media advertising, eflyers, posters,
property billboards and the John Keells
Group Intranet, social media channels
including Facebook and Trip Advisor
have become significant marketing tools.
Presence at ITB, ATM and WTM are also
advantageous with support garnered
from well placed and comprehensive PR
campaigns.
There are focused marketing strategies
employed by Cinnamon Grand for its
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
45
F&B and room categories, but both
based on a primary platform of very
personalised service. New projects
being established, dynamic industries
and stable markets which produce
seasonal custom are concentrated on
from a corporate perspective, where
personalised and customised service
levels are espoused. Relationship
building is focused on via regular
sales calls, frequent guest and client
interaction through regular entertainment
and customer events and market
scouting, which resulted in the corporate
base achieving a higher growth level
than market average and being the
higher contributor from all clientele
sectors.
There is also emphasis on strengthening
existing partnerships with tour operators
and DMC including those involved in
non-traditional markets like China, the
Middle East and Eastern Europe and the
hitherto untapped Belgian market. The
initiatives brought in the desired results
as there was marked increase in the
numbers of leisure travelers from these
markets this year.
The MICE market too gained weightage
with existing tour operators and DMCs
ensuring that the hotels gain more
business in this segment. This is seen in
the increasing number of conferences,
conventions and workshops Cinnamon
Grand hosted during the year including
the International Tea Convention,
MESA Partners Conference organised
by KPMG, the 27th Kiwanis Asia
Pacific Annual Convention, South

[ sustainability report contd.... ]
Asia Conference on Sanitation, South
Asian Federation of Obstetrics and
Gynecologists Conference and the IBM
International Regional Summit.
The hotel also hosted a number of
VIPs ranging from the literati to the
glitterati, politicians, business greats
to sportspeople including motivational
speaker and author Robin Sharma and
marketing guru Philip Kotler, Speaker of
the South Korean Parliament Park Hee
Tae and Former Singaporean Foreign
Minsiter George Yeo, Chairman of Singer
Worldwide Stephen Goodman and
Chairman of Shangri-la Resorts Kan
Khoon Kuok, CEO of the ICC Haroon
Logart and Manchester United’s Brian
Robson, Hollywood’s Simon Baker and
Bollywood’s best known playback singer
Asha Boshle and actor Vivek Oberoi.
Cinnamon Grand Colombo launched
a fully-fledged web presence with the
‘Grand goes Digital’ launch, listing the
hotel on four social media platforms
(Facebook, Twitter, Google+, Linkedin).
There is active maintenance of a
Cinnamon Grand Blog (CGB) and a
listing on six new online travel sites
(Red Dot, Wego, HotelsCombined,
Hotels.com, Gogobot and Trivago), in
addition to two new reputable third-party
websites (Anything.lk, Kuoni). CGB is
also connected to three international
blogs. Cinnamon Grand generated a
Web following of approximately one
thousand individuals on social media
in the short span of time it has been
integrated into social media. The hotel
generated a 43% increase in room
night’s YOY through Web bookings and
has been acknowledged by a number of
international online magazines interested
in partnership opportunities.
Working on the premise that was
mooted at the beginning of the year that
Cinnamon Grand must be the preferred
venue for dining and wining among all
city properties, the various strategies
infused during the year saw noteworthy
gains in covers and revenue as detailed
previously. With service levels gaining
much focus internally, key members
of the F&B department underwent
extensive training at the Emirates
Academy of Hospitality in Dubai, which
translated to on the ground excellence
in customer service of 88% according to
the survey detailed above.
Both Tao and Echo saw new menus
introduced and added to a ‘weekly
special’ which allows customers the
option of savouring a new dish at any of
the restaurants. Taprobane and Breeze
Bar were closed for refurbishment and
intends to emerge with more options
and considerable enhancements. A
The homepage of Cinnamon Grand Colombo linking the hotel to social media platforms
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Pakistani Food Promotion under the
umbrella of the World Spice Festival
with an expert chef from Lahore saw the
Courtyard emerge with the award for the
Best Themed restaurant.
At Cinnamon Lakeside, the launch of the
unique floating restaurant, 8 Degrees on
the Lake added a unique dimension to
dining options available in the city. The
“Dishes to Guest” service was added
to the option of the Sunday buffet,
which enables guests to enjoy signature
seafood dishes at their table. The
Library meanwhile hosted a Retro Night
and Crew Night promotion for more
exciting options in entertainment. These
were additions to the wide spectrum of
special promotions the hotel continues
throughout the year, designed to
maintain continuous levels of excitement
and pique the imagination. The Wine
Buffet, Jazz at Dusk and Kiddies’
Camp, as well as the continuous array
marking various festivals and special
days at Goodies are synonymous with
Cinnamon Lakeside’s promotional
offerings.
Making our ‘Special Customers’ feel
special
Given our emphasis on ensuring that
all our actions have a positive impact
on our stakeholders, our ‘special
customers’, those who have special
needs or are differently abled gain added
impetus and focus in our strategies and
plans. Specialised training to deal with
physically challenged guests, while also
being understanding of their needs,
is high on the agenda of our training
calendar. This specialised training at
Cinnamon Grand includes:
� Interacting with the visually and
physically challenged as well as
hearing impaired
� Extending assistance to the visually
challenged and hearing impaired at
the point of check in at Cinnamon
Grand, with the visually challenged
given the assistance of a butler
� A white board maintained at the
back office, which itemizes the
differently abled guest’s details,

Cinnamon Grand associates at the Bandaragama
Pirivena during their monthly alms giving
allowing the team to be prepared
in times of emergency evacuation,
giving these guests priority status
� All public areas are wheelchair
accessible including having the
facility of specially designated
washrooms
� Two bedrooms specifically
constructed for wheelchair bound
guests
� Availability of a dedicated differently
abled car park slot
� The aged and feeble are assisted
with wheelchairs
� Special baby changing facilities in
washrooms and designated baby
nursing areas at all restaurants are
also available
Cinnamon Grand also focuses on its
diverse customer segments including
children, who at Cheers Kids Club have
a specially designated play area with
a babysitter, an outdoor play section,
cordoned off pool area and special kids’
menu.
With the diversity of our guests
presenting numerous special needs and
trends via the feedback and surveys
received by the hotels, it is imperative
that the hotels are equipped and
prepared to deal with the requisites of
these customer segments. The various
backgrounds, cultures, dynamics
and demographics have resulted in
Cinnamon Grand working on special
dietary requirements including kosher,
halal, vegetarian and health (diabetic,
Grand Indulgence for the war affected children from Oddusuddan who visited Colombo
for the first time
cardiac needs) preferences via special
menus, with ingredients that may cause
allergies or other medical conditions
marked clearly on the menus.
There is also an in house nurse and a
doctor on call 24/7/365 at Cinnamon
Grand with a prayer room available on
request, especially in the event of the
banquet halls being used for religious
meetings and workshops, where
every religious detail is taken care of.
Language needs are also met as the
front office teams are conversant in
Japanese, Arabic and Hindi, (besides all
local languages), while group bookings
either resident or in the restaurants,
are allocated a translating Associate in
German, French or Japanese for better
levels of service.
SOCIAL INPUT
The platform upon which we practice
our social sustainable practices is one
in which we employ the concepts of
empowerment and inclusivity.
We deal with people each day, people
who impact our lives, while we impact
theirs and to us it is important that
we carry the miens of corporate
citizenship into positive action. While
the interactions we effect for our Team
is detailed separately just beyond this
sustainability report. Given below is
comprehensive detail of our social input
into our communities.
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Highlights
� 20% local produce sourced from
small time farmer communities
� 30 families engaged in arts and
craft for income generation
� 162 young people trained in hotel
industry skills
� Rs. 10.6 Mn total spend on CSR
by Group
A vital conduit in our sustainability ethos,
the community around us remains
integral to the success of our business.
To us, community initiatives are not built
upon philanthropy but on sustainable
initiatives that are constructed upon
foundations that will have long lasting
impacts on our stakeholder group. We
align ourselves to a great extent on the
John Keells Sustainability parameters,
working on a top-down approach
which involves the Chairman, Heads of
entities and Heads of Department all
encouraging the fully fledged support
and input of the entire team. This has
surely created the apt platform for our
CSR initiatives.
Further ingratiating the corporate
responsibility ethos into our operational
fabric, there was a marked emphasis on
imbuing one of the five pledges within
the John Keells Leisure philosophy, ‘I Will
Care’, which saw each entity add more
impetus to its social initiatives.
This year AHPPLC contributed
Rs. 8.2 Mn towards the John Keells
Social Foundation, which utilises the

funds for sustainable projects which are
aligned to the five identified platforms of
health, education, uplifting communities,
culture & arts and the environment.
In addition, Cinnamon Grand has a
dedicated CSR unit which was launched
five years ago, Spread a Little Sunshine
that identifies, monitors and works on
social responsibility initiatives, ensuring
that they are aligned to the Group’s
strategies, while also considering some
one- off projects that need assistance
for furtherance of their objectives. The
three focus areas for this Committee
is Skills for Life (Education), Nature
Watch (Environment related awareness/
protection) Coin for Cure (Health/
Nutrition related activities) designed to
support communities and support efforts
to help the environment.
EDUCATION
[ sustainability report contd.... ]
The Neighbourhood Schools
Development Projects
Cinnamon Lakeside provided assistance
via furniture and renovations and
refurbishments for T B Jayah Maha
Vidyalaya, Sariputta Maha Vidyalaya and
Al Iqbal Vidyalaya.
The Cancer Awareness Booklet designed by
the Cinnamon Grand team for the
Cancer Control Programme
In support of the development and
maintenance of infrastructure and
facilities of two schools, the Holy Rosary
Sinhala School and the Holy Rosary
Tamil School in Colombo 2, Cinnamon
Grand contributed Rs. 422,000 for
maintenance of these schools.
Sustaining Education
Cinnamon Grand Colombo
Cinnamon Grand partnered the Educate
a Child Trust in its fundraising efforts to
creating an enabling environment for
children affected by poverty and tsunami
victims, joining the Trust to create
avenues of education for those children
who have difficulty in sustaining their
education.
A visually impaired undergraduate
from the University of Moratuwa
was presented a voice recorder and
cassettes to enable him to continue
his higher studies with minimal
impediments.
Similarly, the team helped out a fellow
Associate on hearing that his son had
been diagnosed with the rare debilitating
disease Duchenne Muscular Dystrophy
and has been unable to move since
the age of two, funding the donation of
Children of the Don Bosco Boys School Maggona
enjoying a dip in the pool during their annual
Christmas visit to Cinnamon Grand
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a computer to ensure that he remains
alert and motivated to gain some form of
education.
Enhancing interaction through
extracurricular activities
Partnering the Foundation of Goodness,
Cinnamon Grand hosted over 90 war
affected children living in Mulaitivu to
spend the day at the hotel, while also
presenting them with stationery, sport
equipment, clothes, footwear and
even swimwear in a bid to encourage
extracurricular activities and a continuity
of their education.
Religious Education
The Wikramashila Pirivena in
Bandaragama houses over fifty young
monks whose educational needs were
supported by Cinnamon Grand, who
presented the student monks with
educational material and gave funds
to upgrade the facilities in the pirivena.
Monthly support continues to be
provided.
HEALTH
Cinnamon Grand Colombo
Developing the Breast Cancer Control
Programme Awareness Booklet
Cinnamon Grand, in association
with the National Cancer Control
Programme, sponsored the World
Breast Cancer Awareness Day mooted
with a community health event focused
on Breast Cancer Awareness. Several
luminaries and experts on cancer
awareness, detection, prevention
and treatment and media were in
attendance.
The programme was further assisted
when a special educational booklet on
Breast Cancer Awareness was published
by Cinnamon Grand to increase
awareness, collaborated with a team of
doctors at the National Cancer Control
Programme to present this informative
and interactive booklet to the larger
community. Hailed as a unique booklet
featuring breast cancer related queries,
self-examination instructions and help

The B2b Recycling Store - a hotel guest supporting
the cause
lines in addition to other breast cancer
details, the booklet was presented in all
three languages with 120,000 copies
being printed at the initial stage. The
book has been distributed islandwide.
Alzheimer’s Foundation Memory
Walk
Cinnamon Grand was the hospitality
partner that sponsored the annual Lanka
Alzheimer’s Foundation Memory Walk.
Alzheimer’s Foundation is an Approved
Charity with a mission to improve the
quality of life of those with Alzheimer’s
and related disorders (dementia), while
creating a support network for families
and carers to cope with the challenges
generated by those conditions.
Empowering the Challenged
The wife of an Associate who was
diabetic was assisted with funding
for surgery, gifted a wheelchair and
helped with house renovation to make
mobility in a wheelchair easier by fellow
Associates at Cinnamon Grand.
UPLIFTING COMMUNITIES
Cinnamon Lakeside
Cinnamon Lakeside identified
marginalised and challenged segments
of the community for assistance
throughout the year.
� Dry rations contributed regularly to
the Sunanda Foundation and the
family of a fisherman
� Children of the Methsarana
Children’s Home given a Christmas
party and were also presented
rations and ceiling fans for their
dormitories, as were the children
housed at the Jinananda Children’s
Home
� Assisting senior citizens to have a
better quality of life, the Sanhinda
Elders’ Home, St. Andrew’s Elders’
Home and the Gamini Matha Elders’
Home were all presented with the
rations and medicines
Cinnamon Grand Colombo
Cinnamon Grand associates model B2b bags to raise funds for the
Cancer Hospital Children’s Ward
Spread a Little Sunshine
In addition to some of the projects
mentioned previously under the
Cinnamon Grand umbrella, the hotel’s
dedicated charity initiative ‘Spread
a Little Sunshine’, implemented the
following community initiatives, based
primarily on employee volunteerism.
� The Dias Elders Home gains
continuous monthly support to help
the 23 destitute elders resident
there, while donations were also
made to the Pristera Children’s
Home in Raddolugama and The
Salvation Army in Borella.
� Cinnamon Grand hosted the children
of the Shilpa Children’s Trust to a
day of true Christmas indulgence.
These children, who are victims of
the ethnic conflict and the tsunami
are in the care of the Trust and are
being gradually rehabilitated.
� The differently abled were also
assisted with the active sponsorship
for the Feet for Friends Centenary
Walk fundraiser organised by the
Ceylon School for the Deaf and Blind
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The Don Bosco Boys’ Home
The annual celebration of yuletide cheer
for the sixty boys residing at the Don
Bosco Boys’ Home in Maggona was
held at the Cinnamon Grand for the sixth
consecutive year which also included
a trip to Excel World. In addition to the
fun, games, gifts and a dip in the pool
on the day, throughout the year, the
hotel supports the Home by providing
sports equipment and stationery
required for the entire school year for all
the children in the home. This year, the
CSR Committee channeled Rs. 658,000
towards the project.
Sustainable income for senior
citizens
Cinnamon Grand continues its unique
environmental conservation initiative of
converting used promotional banners
to useful bags (B2b), which while being
environmentally sustainable, also adds
a socially sustainable element to the
project. The highly fashionable bags are
produced by retired tailors who would
otherwise be dependent on families and
children or meagre pensions for their
sustenance. This also adds a sense of
self worth and dignity to these senior
citizens.
Developing Entrepreneurs
Nuga Gama utilises farm fresh
produce and has, as a result, seen an
enhancement of relationships with
local suppliers of fruit, vegetables, meat
and seafood. The extensive network
of farmers and producers who form an
integral link to the supply chain supply

[ sustainability report contd.... ]
20% of the total stocks of vegetables,
seafood and fruit, primarily rural
suppliers. This interaction has also led
the hotel to introduce indigenous fruit
into the menu, promoting local fare.
This facet also extends to the village
women who are employed at Nuga
Gama to produce authentic Sri Lankan
village cuisine. The women are from
village localities that are most often
under privileged. While equipping these
women with the dignity of labour and
giving them appreciation of their skills
in the kitchen, Nuga Gama also affords
them an avenue of sustainable income
which assists them in adding to the
family income. This also heralds a
furtherance in skills development, as
the women‘s skills and knowledge are
improved due to the value additions via
training and development infused by
working in a five star milieu.
Infusing sustainable skills into the
industry
Apprenticing and industrial training
opportunities were given to 162 students
of the Sri Lanka Institute of Tourism and
Hotel Management (SLITHM) as well as
some private hotel schools, in a bid to
introduce and retain the required skills
within the industry. Both Cinnamon
Grand and Cinnamon Lakeside collate
their skills and conduct personal
development programmes based on
interactive session to encourage young
people to become more attuned to their
aspirations, aware of the challenges and
hone their personal skills. Cinnamon
Grand hosted a team of one hundred
students as part of their culinary and
cookery tutelage for half day culinary
experience at the hotel.
CULTURE & THE ARTS
Cinnamon Lakeside
Restoration of Abhayagiriya
A team of 75 associates from Cinnamon
Lakeside, helmed by the General
Manager and his family undertook to
assist the restoration of Abhayagiriya, a
temple of immense historic significance.
The impressive dagoba, which is 75
meters in height, heralds affirmations in
historic tomes as far back as the first
century BC and warrants restoration
as a hallmark of Sri Lanka’s illustrious
history and a legacy to be enjoyed
by future generations. Approximately,
three cubes of ¾ metal, bricks, stones
and cement were transported to the top
of the Dagoba by Associates, while the
team also helped lay bricks and clear
rubble at the premises.
Cinnamon Grand associates at the historic Girihanduseya Temple in
Thiriyaya Trincomalee
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Restoration of St. Anne’s Church
A team of 80 associates along with
the General Manger and his family
conducted a complete clean up of
this legendary church which holds an
impressive story within the catholic
history of Sri Lanka. The surrounding
compound too was cleaned. A new
front door was installed, new gutters
fixed and the washrooms fitted with
new fixtures. The paint crew painted
the entire church, both inside and out
including the boundary walls and church
gate. In addition, a signboard for the
entrance, a podium and twenty five
chairs were also gifted.
Cinnamon Grand Colombo
Assistance for the Girihanduseya
Temple in Thiriyaya
Destroyed by the LTTE and abandoned
for nearly three decades, 34 members
of the Cinnamon Grand Team visited the
site and helped the resident monk with
necessities required for alms and basic
living. This temple is believed to be the
oldest in Sri Lanka enshrining a hair relic
of the Buddha and dates to 528BC.
Promoting local craft
The Nuga Gama shop sells Sri Lankan
arts and craft sourced from craftsmen
engaged in indigenous craft making,
ensuring that endangered craft and
skills gain a renaissance and generates
a sustainable mode of employment and
income. This extends to cuisine as well,
where Nuga Gama serves authentic
village cuisine cooked on wood fired
hearths by women from underprivileged
village localities. An emphasis on
regenerating lost Sri Lankan art forms
extends to the dance and drum arena,
is ideally showcased in the display of the
lost art of traditional dance and drum
through the Shilpa Ranga Cultural Dance
Troupe which performs at Nuga Gama
every Monday.
The hotel’s corporate gift portfolio
includes Batik related items, Cinnamon
Grand branded bookmarks with famous
quotations espousing Sri Lanka as a
tourist destination, locally manufactured

Organic vegetables from the ‘village in the city’ Children at the ‘Earth Watch’ - monthly environmental awareness workshop at Nuga Gama
children’s sling pouches, recycled paper
note pads and wooden handicrafts,
all aimed at promoting Sri Lankan
craft as well as an array of Sri Lankan
confectionery items produced from
jaggery, cashewnuts, coconut and
cinnamon and complimentary baskets of
Sri Lankan fruit in rooms.
Appreciating Sri Lankan Culture
With culture, conventions and traditions
being difficult to keep alive due to fast
paced development, Cinnamon Grand
has undertaken the responsibility of
showcasing some of the festivities and
celebrations aligned to indigenous Sri
Lankan culture. Customs and traditions
prevalent within a village are showcased
at Nuga Gama with students and adults
alike encouraged to visit and experience
the lifestyle of a village. Children are
hosted to interactive awareness and
educational sessions as well as cultural
tours on the customs, traditions and
historic features of the rural Sri Lankan
village, while special festivals and cultural
days of significance are also marked at
the venue.
Nuga Gama created history this year by
becoming the first hotel venue to host
Muthuhara, Sri Lanka’s most popular
children’s television programme which
had its beginning thirty years ago and
has a following of over 600,000 children
from different regions of Sri Lanka as
well as overseas. The programme is built
on a base for learning and knowledge
sharing, while also showcasing talents of
children while imbuing a sense of the Sri
Lankan ethos. Hosting the programme
at Nuga Gama also served to inculcate
a sense of pride and appreciation about
Sri Lanka’s rich culture, heritage and
environment.
Nuga Gama also hosted two Art Talks
for the The Colombo Art Biennale 2012.
CAB aims to strengthen the platform
and enhance awareness of Sri Lankan
contemporary art and culture both
within Sri Lanka and around the globe,
promoting local artists, both established
and emerging through innovative
programmes.
An art competition at Nuga Gama was
conducted to encourage children to
capture this quintessential rural village,
right in the heart of the City, showcasing
artistic skills and also getting young
children to appreciate the esoteric values
and features of a rural village.
This year, Cinnamon Grand offered
three gifted children from the Vajira Sri
Children’s Home a platform to display
their creative talent through which
they produced a unique pandal for
Vesak. The students were presented
with donations towards their savings
accounts, while the orphanage was also
gifted with necessities.
Cinnamon Grand also presents child
guests with a book on Sri Lankan folk
tales authored by renowned Sri Lankan
children’s authors that inculcate the
multi-dimensional facets of the country.
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Environmental Input
Highlights
� Green Globe Certifications for
both hotels
� Green Team Established at
Cinnamon Grand
� 1,780 Kws saved by Cinnamon
Grand during Earth Hour,
equivalent to forty households
monthly energy usage
� 200 cubic meters water recycled
by Cinnamon Lakeside
This year, we began a very firm and
strong journey to make a vital difference
in environmental consciousness. We
have always remained acutely conscious
about reducing our carbon footprint,
instituting myriad initiatives across the
Group, but this year, the initiatives were
given a quantifiable personality to ensure
that we achieve targets and map out a
strategy for the future.
Both Cinnamon Grand and Cinnamon
Lakeside are Green Globe Certified,
which further exemplifies the feature that
we mean what we say, going beyond
rhetoric, into action. Cinnamon Lakeside
is the only hotel to have been re-certified
by Green Globe this year. The Green
Globe Certification which supports the
Global Sustainable Tourism Criteria
confirms the two hotels adherence to
agreed international standard for the
sustainable operation and management
of travel and tourism business with 248
preset standards. In fact, Cinnamon

[ sustainability report contd.... ]
Grand gained the highest percentage
in these preset standards. Energy
efficient measures, emission reduction,
effective water management and waste
management with an emphasis on the
3Rs, (Reduce, Recycle and Reuse) are
some of the details that are focused
upon for conformance.
In addition, both Cinnamon Grand
and Cinnamon Lakeside are already
in conformance to ISO and OHSAS
standards with Cinnamon Grand
being the first hotel to be certified with
all three certifications of ISO 14001,
ISO 22000 and ISO 18001 and recertified
through the surveillance audit.
Cinnamon Lakeside obtained ISO 22000
certification in Food, Health and Safety,
ISO 14001 Environmental
Management Systems Certifications
and OHSAS 18001 which is the OH&S
assessment series certifications.
Cinnamon Grand Colombo
Appointment of the Green Team 2012
Aligned to the pledge, ‘I will be Green’,
Cinnamon Grand this year decided to
focus extensively on its sustainability
practices and initiatives to ensure that it
delivers on the ‘green’ targets it had set
for itself. In appointing the Green Team
comprising representatives from different
departments, the team set about
identifying processes and methodologies
that will reduce the consumption of
electricity and water, while managing
waste more efficiently. The goal is to
reduce the hotel’s carbon footprint by
10%.
Each Green Team member was
given specified goals and targets for
each quarter, tasked with reducing
consumption of water, electricity and
wastage including in food. There was
emphatic focus on introducing the 3R
concept with reduce, re-use and recycle
gaining much momentum. Input and
innovative ideas are being encouraged
by team members, where daily
operations and actions will reduce the
negative impact on the environment and
certainly work its way into reducing the
overall carbon foot print of the hotel.
There is also a concerted effort to
bring in other stakeholders into the
initiatives, while also encouraging them
to innovate new ideas in environmental
consciousness. The initiatives are
detailed further below.
Awareness campaigns launched by the Cinnamon Grand to encourage associates to save water and
stop the discard of electronic junk to the environment
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Cinnamon Grand Green
Vision
To be ranked the Best Five Star
Sustainable City Hotel in Sri Lanka
by 2015
Green Goal
Reduce carbon footprint by 10% by
March 2013
Initiatives employed by Cinnamon
Grand in meeting the Green Goal
� Replacing paper based TV guide
with a digital TV guide
� Waste water from restaurants and
cafeteria collected and recycled for
fish ponds (resulting in less water
usage within the hotel and for the
city)
� All plastic bottles, paper and
magazines are sold to an external
recycling source and funds
channeled towards the charity
initiatives of the hotel
� Green cards in rooms encourage
guests to support green initiatives;
environmental wisdom cards are
also available for guests to purchase
� Reuse of cooking oil from the
kitchens to the boilers, instead of
furnace oil has helped to reduce
carbon emission by 30%
� Monitoring of A4 paper usage in all
departments with a 5% reduction
targeted for each quarter
� Newspapers to guests only given on
request to reduce paper wastage
Creating Green Awareness among
Stakeholders
World Water Day Campaign 2012
A water conservation awareness
initiative was held for over 300
Cinnamon Grand Associates with the
keynote speaker, environmental scientist
and head of the Colombo University
Zoology department, Professor Sarath
Kotagama. The session was further
cascaded to germane stakeholders
as well including students of the Sri
Lanka Institute of Tourism and Hotel
Management as well as the media. The

Renowned cricket commentator Tony Greig joins the Cinnamon Grand’s Green Team in the Earth Hour Campaign
speaker reiterated the need for ‘water for
survival’, addressing water issues both
locally and globally.
Lights off and Earth On (Earth Hour)
The hotel joined the worldwide
campaign organised by the World
Wildlife Fund for Nature’s climate change
initiative marking Earth Hour on March
31st from 8.30 p.m. to 9.30 p.m,
garnering the support of international
cricketers, in-house guests, restaurant
patrons, staff and visiting children. The
event was launched by renowned cricket
commentator Tony Greig and English
cricketer Samit Patel, while Colombo
Mayor Elect A J.M. Muzzamil also joined
the initiative. The hotel saved 1,780 Kws
during this exercise, which is equivalent
to providing energy for forty households
per month.
Using Nuga Gama and the main lobby
as the axis upon which the initiative was
launched, the hotel further enhanced
the Earth Hour experience by hosting
a series of activities for guests to
participate. While there was focus
on village customs and traditions
propagated during Earth Hour at
Nuga Gama through dancers, fusion
drumming and folk songs, a slogan
competition was also held at every
restaurant, with Earth Hour memorabilia
awarded to the winners.
Earth Day Awareness Campaign on
E-waste
A special poster awareness campaign
was launched with special emphasis on
the prudent management of e-waste to
commemorate Earth Day, cascaded to
Associates and via social media to other
stakeholders.
Green Avurudhu Celebrations
The ‘Have a Green Avurudu Celebration’
was launched this year, with focus
on dangers that emanate on people,
planet and animals through the use
of firecrackers and the ensuing noise
pollution. The campaign highlighted the
negative health hazards as a result of
cancerous chemicals and residues such
as Copper, Cadmium, Lead, Magnesium
and Sodium Zinc being released into the
air due to the lighting of fire crackers.
Earth Watch - the 52 Week
Environmental Awareness Page for
children
In spreading the message of ‘green
awareness’ among children, 52 ideas
to save the earth was launched with the
Funday Times, empowering children
with the thought that they do not have
to be adults to save the earth as each
can do their part. The Earth Watch
page, while focusing on a wide range
of issues and concerns, carries a single
action of change, as part of its focus on
climate change and reducing carbon
footprints. The process did involve
extensive research by the Cinnamon
Grand Sustainability Team, which led
to developing the content for the entire
page for all 52 weeks of the year. The
reach is 16,500 children and a total of
two million people islandwide.
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This informative knowledge sharing
session was further augmented
with monthly interactive workshops
conducted at the Nuga Gama for
members of the Funday Times,
motivating them to think and action
creatively about environmental issues
and solutions related to the subject that
is discussed within the magazine.
Nature Notes Plant Tour for Students
With Nuga Gama having an extensive
array of indigenous plants within an
intricate eco-system, not often found
within the constraints of the urban milieu,
Cinnamon Grand launched a Nature
Notes Plant Tour for children where
over 56 indigenous species of plants,
indigenous, medicinal herbs, vegetables
and fruits are categorized and medicinal
and other properties highlighted with
simple sketches. The blue water lily
which is the national flower and the
Ironwood, which is the national tree is
found at Nuga Gama, giving children a
visual memory of the country’s national
depictions.
A month of Environmental Initiatives
for World Environment Day
A month long programme infusing
environmentally friendly initiatives was
permeated to Associates, guests and
valued business partners, encouraging
them to use tangible actions for a
positive impact on the planet. This
also involved a workshop for children at
Nuga Gama which focused on the 3R
concept, with a special story narrated by
leading children’s author and illustrator

[ sustainability report contd.... ]
Sybil Wettasinghe. A country wide
competition for budding young students
was also conducted to commemorate
World Environment Day.
Guests Encouraged to Help the
Planet
Guests are presented with a sticker
encompassing 25 helpful hints for going
green and minimising environmental
degradation.
Membership in Field Ornithology
Group
Cinnamon Grand obtained membership
in the Field Ornithology Group of Sri
Lanka this year. This further emphasizes
the hotel’s focus in ensuring that it works
on preserving the natural fauna and
flora of Sri Lanka. Funds generated
from the Environmental Wisdom Cards
were donated towards the Group who
conduct numerous workshops, seminars
and awareness programmes on the bird
life prevalent in Sri Lanka and the need
for conservation.
World Animal Day
In association with the Sri Lanka
Animal Protection Association, the
hotel partnered the World Animal
Day Conference for the second
consecutive year, promoting the concept
of vegetarianism and inculcating
humaneness in dealing with animals.
Tree Planting
In a bid to increase Sri Lanka’s forest
cover and reduce the emission of CO2,
while also permeating the message
of environmental preservation and
consciousness among young children,
over fifty saplings were presented to
children to mark Environmental Month.
The hotel also garnered the good offices
of Professor Sarath Kotagama at a tree
planting ceremony held at Nuga Gama
to mark this month.
B2b Bags Recycling Initiative
The world’s first B2b initiative,
transforming banners to bags which
infused the sustainability platforms
of Reduce, Reuse, Recycle,
waste management, community
empowerment, caring for the community
and employment generation, was taken
a step further this year, with the launch
of a dedicated B2b shop at the hotel
lobby. Using Associates to model
the bags which espoused a fashion
statement, the sale of the bags brought
in a total of Rs. 100,000, which as in
other years, was channeled towards the
continued work conducted by the hotel
at the Children’s Ward of the Cancer
Hospital.
School kids on the plant tour at Nuga Gama Santa’s Recycling Workshop at Cinnamon Grand
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Once Upon a Book Environmental
Series
Nuga Gama once again became the
catalyst in creating awareness among
young children, with the launch of the
Once Upon a Book series, wherein
renowned author Sybil Wettasinghe not
only inculcated the reading habit among
them, but also created awareness and
appreciation for Sri Lankan culture,
traditions, heritage and the environment.
A beautifully illustrated bookmark with
an environmental message developed
by the author is presented to all children
visiting Nuga Gama on educational
tours.
Be A Paper Saver on World Forestry
Day
A special stencil was developed
for the use of 200 students spread
across multiple schools to highlight the
importance of conserving trees and
forests and reduce the use of paper.
The initiative titled, Be a Paper Saver,
while imparting the message of the
importance of saving trees, is helpful
in making recycled envelopes and
impresses on young minds the crucial
need to save paper, reuse and reduce
waste.
Santa Goes Green for the Children
The most popular annual Santa’s
Workshop focused on a green
Christmas this year, with an innovative
construction of Santa’s North Pole
home using recycled plastic bottles
and discarded items for decorations,
provoking thought and action among
children. Santa also kept his promise
of letting the kids in on some of his
closely guarded green secrets such
as transforming unexpected items
through recycling. Children were also
given knowledge in the creative arts to
make note pads, Christmas bags and
decorations.

Professor Sarath Kotagama Environmental Scientist at the Green Forum staff awareness programme at Cinnamon Grand
Cinnamon Grand’s Sustainability Performance
for the financial year 2011/12
Q 1 Q 2 Q 3 Q 4 Benchmark
Carbon Footprint 90.20 69.09 66.05 54.33 41.10
Electricity Usage (Kwh) 115.03 86.17 80.39 66.50 65.00
Water Usage (Cubic Meters) 2,245.00 1,636.00 1,569.00 1,339.00 723.00
Waste Generated (Food Waste) 5.48 4.39 4.63 3.54 0.84
Total Training Hours 97,655 23,626 26,249 24,302
Attrition 71 75 43 47
Total Fines Paid None None None None
Sustainability and CSR related projects 16 11 18 20 65
Waste Type Q1 Q2 Q3 Q4
Glass bottles 4,000 Kg 4,224 Kg 3,231 Kg 2,870 Kg
Plastic bottles 1,740 Kg 1,768 Kg 1,406 Kg 673 Kg
Waste papers ( Newspapers + Other papers) 1,390 Kg 1,570 Kg 1,402 Kg 1,954 Kg
Used oil 400 Kg 400 Kg 448 Kg 1200 Kg
Food Waste 195,510 Kg 272,518 Kg 409,595 Kg 214,800 Kg
Total 203,040 Kg 280,480 Kg 416,081 Kg 221,497 Kg
Method of Disposal Q1 Q2 Q3 Q4
Reused (Used oil) 400 Kg 400 Kg 448 Kg 1200 Kg
Recycled (Glass bottles, plastic bottles, waste papers) 7,130 Kg 7,562 Kg 6,039 Kg 5,497 Kg
Recovered (piggeries-70% of food waste) 136,857 Kg 190,763 Kg 286,716 Kg 150,360 Kg
Land filled (CMC-30% of food waste) 58,653 Kg 81,755 Kg 122,878 Kg 64,440 Kg
Total 203,040 Kg 280,480 Kg 416,081 Kg 221,497 Kg
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[ sustainability report contd.... ]
Cinnamon Lakeside
Energy, Water and Waste
Management Initiatives
Water Recycling
With a daily water consumption of
approximately 500 cubic meters,
the hotel has set for itself a target to
recycle and re-use 200 cubic meters
of water for the use of the garden and
flushing purposes. Currently, Cinnamon
Lakeside is in the process of establishing
a methodology that will avail recycled
water for washing and drinking purposes
as well, while in the immediate, rain
water is stored and used for gardening
purposes. The hotel also uses water
from a tube well, which was launched
this year, to reduce consumption from
the national water capacity.
Water Consumed from the Tube
Well Water Project Implemented
During 2011-2012
Quarter Consumption
(Cubic Meters)
1 35,211
2 40,140
3 39,730
4 37,738
Operational Volume of Water :
Per Guest Night 2011-2012
Quarter Cubic Meters
1 1.83
2 1.71
3 1.46
4 1.32
The picturesque Lake adjoining Cinnamon Lakeside
Energy Conservation
All washrooms and guest rooms now
use CFC bulbs signaling a saving on
energy consumption from 160 watts
to 38 watts in each of the 296 room of
the hotel. This was added to with forty
replacements to CFC bulbs in the fire
staircase, reducing energy consumption
from 20 watts to 8 watts. Variable
Frequency Drivers (VDF) were installed
into the two chilled water pumps, which
automatically regulates the running
capacity of the meters contributing to
reduced energy consumption. There is
a concerted plan to introduce induction
lights for the garden which would reduce
energy consumption by 50% and based
on budget approval, all hotel lighting will
take on LED lighting, which will reduce
energy consumption substantially.
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Electricity Consumption 2011-2012
Quarter Kw/Hr
1 1,953,320
2 1,947,490
3 1,950,888
4 1,876,755
Green Initiatives employed to
conserve bio-diversity
� Fruit trees were planted within
the hotel premises to mark World
Environment day in a bid not only
to increase the forest cover and
mitigate CO2 emissions, but also to
ensure that productive agricultural
practices are espoused.
� Vegetables such as spinach and
eggplant were planted for the hotel’s
use and also in a bid to reduce
expenditure on agricultural produce.
� A Bird Habitat Enrichment
Programme was established by
providing birds a place to perch and
respite during the day. Until the trees
are mature enough to bear fruit, fruit
in feeding trays are provided for birds
to feed on and bare tree branches
hoisted in the water for them to rest
and roost.
� The hotel planted lava plants for
butterflies and other insects to breed
in a bid to maintain and re-introduce
the eco-system balance.
� The Earth Song was cascaded to
all Associates, imbuing a sense of
responsibility for the environment
and creating awareness. Students
from TB Jayah Maha Vidyalaya, Al-
Iqbal Muslim Balika Vidyalaya and Sri
Sariputhra Maha Vidyalaya were also
invited for the launch of the song
and the tree planting project.

Cinnamon Lakeside staff at the St. Anne’s Church
charity initiative
� The Bamboo Planting Project was
continued as it absorbs 40% more
carbon dioxide and releases 35%
more oxygen than an average plant
into the environment.
� With the Green Globe certification,
the hotel continues to monitor
progress with audits and monitoring
process. Green Globe certified
fittings were installed in the
washrooms.
� Plants are now watered only
between 6 a.m and 10 a.m and
after 5 p.m for minimum evaporation
water management.
Cinnamon Lakeside staff at the Abayagiriya Dagoba Restoration site after their Shramadhana
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[ proud moments ]
The continuous emphasis and insistence to make each day different has driven us to achieve
unimaginable heights. Each day our team accomplishes yet another goal, reaches yet another
objective and goes beyond yet another realm. These are indeed proud moments for us and what
you see here are vignettes of some of the proudest moments in our calendar year.
Cinnamon Grand General Manager Rohan Karr receiving the
award for Best Host Hotel – Culture at the
Sri Lanka Tourism Awards 2011/12
Cinnamon Grand team celebrating after winning the
Best Tent Competition for their Bonkers theme,
at the annual John Keells Rugby 7s encounter 2011
Kitchen Artist, master sculptor Nandaka Weeraman
won the first of its kind - Gold Excellence Award
(at the Annual Culinary Awards 2011)
General Manager Rohan Karr with the Cinnamon Grand team at the All Island Marie Brizard
Bartenders Cocktail & Flaring Competition. The hotel won both Flaring and Classical
categories, creating history
General Manager Rohan Karr with the Cinnamon Grand cricket team that won the 8th Annual
Battle of the Spices against Cinnamon Lakeside in June 2011
Hon. Minister Basil Rajapaksha, John Keells Chairman Mr. Susantha Ratnayake and Deputy Chairman Mr.
Ajit Gunawardena with Cinnamon Grand General Manager Rohan Karr at the Nuga Gama Stamp Launch in
2011. Cinnamon Grand is the first hotel in Sri Lanka to launch a first day cover marking World Tourism Day.
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Cinnamon Grand General Manager Rohan Karr receiving the
‘Spirit of Leisure’ award from JKH Deputy Chairman
Ajit Gunawardena at the debut
JKH Leisure Awards 2011
The Cinnamon Grand’s F&B team receiving the
award for ‘I Will Standout Wherever I am’
for their contribution in raising the benchmark
in the F&B industry
The Cinnamon Grand’s Marketing Communications & Sustainbility
Team with the ‘Innovation Award’ for conceptualising the
hotel’s Diabetic Menu
JKH Leisure Awards 2011
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The Cinnamon Grand’s catering team that represented Sri Lanka during the
Commonwealth Games bid in St. Kitts receiving the award for the pledge,
‘I Will Get it Right the First Time All the Time’.
The Engineering Team of Cinnamon Grand receiving
the award for ‘I Will Care’ for spearheading a
project to help a colleague and family
59
Cinnamon Grand’s Marketing Communications &
Sustainbility Manager Tharika Goonathilake receiving
the award for ‘I Will Be Green’ for her environmental
awareness for children through Earth Watch initiative
Cinnamon Grand’s Housekeeping team receiving an award for ‘I Will Empower’ for
their initiative of introducing Self Checkers

[ human resources ]
Constructed on a foundation where
we truly espouse that ours is a people
business and therefore our service
principles must be of exceptionally high
standards to ensure we remain leaders
in our industry, the year saw us engage
our team with much more fervor and
energy. We have observed increased
competition, diverse challenges,
emerging opportunities and new trends
that all require innovative thinking and
committed dynamism to ensure we
retain our leadership stance. This also
fuels a need for a culture of continuous
improvement, where higher benchmarks,
quality standards and productivity
become the norm. While in the past
years we have displayed unequivocally
that our teams are truly the best in
the industry, evidenced by Cinnamon
Grand’s unprecedented win thrice as the
Best City Five Star Hotel and Cinnamon
Lakeside’s achieving the same accolade
this year, given the transforming industry
landscape, we know it is time to analyse,
re-focus and review our HR disciplines,
management and practices to excel in
the coming years.
Career and succession planning is a
primary driver in our HR Strategy and
given that our HR Policy operates
under our parent John Keells Holdings’
comprehensive policy, our team is
constantly exposed to group wide
HR practices. Ours is a knowledge
driven culture where team spirit and
an entrepreneurial spark is constantly
encouraged. We handpick our people
on the premise of the right person for
the right job, while at the same time
encouraging multi-skilling via cross
functional teams and a constant
upping of the bar to ensure continuous
innovation.
HR Quantifiers
The Group thrives on a mix of young
dynamism and experienced specialists.
This is amply emphasized in both the
property development sector and
across both city hotels. There is
emphasis also in training and multiskilling
young people who are recruited
as an imperative HR strategy, with keen
individualisation so that each individual
is equipped with the apt knowledge,
skills and honed talents to optimise their
contribution towards the job at hand.
54%
55%
6%
Company
Employees’ Age
Below 30 years
30 to 50 years
Above 50 years
7%
Group Employees’
Age
Below 30 years
30 to 50 years
Above 50 years
Non-Discriminatory Policy
Aligned to the John Keells Group HR
Policy and strategy, which espouses
the Global Compact, we are explicitly
committed to practicing a nondiscriminatory
labour and employment
policy. Adhering strictly to the universally
accepted labour standards instituted by
the International Labour Organisation
and the rules and regulations governing
HR and labour in Sri Lanka, we
uphold the rights of our Associates to
freedom of association and the right
to Collective Bargaining, ensuring that
our Associates have a mechanism
to voice their grievances, which all
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40%
38%
receive the wholehearted support of top
management.
It is also noteworthy that AHPPLC has
not had any industrial disputes at any of
its companies for the last years.
We are an equal opportunity employer
and believe in equality of employment.
Our HR practices are derived from the
foundation of just and fair dealings
with our team, where meritocracy
remains the truss upon which rewards
and benefits accrue. The multi-cultural
multi-ethnic formulation of our team
adds the unique flavour and diversity
for our business to flourish and allows
us to present to our team, sustainable
employment at all levels in a knowledge
gaining culture.
Open Dialogue
An open culture that espouses the
sharing of opinions, ideas, problem
solving and mentoring remain
integral to creating an empowering
environment for the team to function
productively in. AHPPLC routinely
has weekly team briefings, monthly
meetings, quarterly associate meetings
and inculcates an open door policy
within the working culture, devoid of
hierarchical engagement but rather built
on cross functional discussions.
We also encourage objective and
constructive employee feedback
and suggestions, which remain a
key component to our philosophy of
continuously raising the bar. Open
discussions, dissemination of ideas and
suggestions and even debate helps
strengthen team spirit and encourages
consistent focus on business goals.
Exceptional performers are recognized
and rewarded during these meetings as
well.
A new communication initiative was
introduced at Cinnamon Grand this year
titled, ‘Tell GM’, giving Associates an
avenue to air grievances, opinions and
suggestions gaining first hand input from
the General Manager.

Living the Spirit of Leisure
The year also saw the complete cascade
of the five pledges within the John Keells
Leisure Sector, which are specified
within the Sustainability Report. The
pledges are conceptualised to optimise
on the available HR pool prevalent
within the hotels, giving them avenues
for career advancement and personal
career fulfillment.
Through the pledge, ‘I will get it right
the first time every time’, the teams are
encouraged not to make mistakes and
hence, any action is based on a well
thought out process that will prevent
and eliminate any mistakes. This then
infuses a culture of perfection, which the
hotels believe is a primary contributor to
setting benchmarks for the industry.
‘I will empower’ works on encouraging
impactful decision making and
innovation, where team members are
given the power and mindset to be
bold and courageous when dealing
with stakeholders, provided the result is
positive and productive. This also paves
the way to identifying good leaders,
abilities of multi-skilling and good team
spirit.
With Associates being the first and last
encounter that stakeholders interact
with, ‘I will care’ promotes a culture
of caring among themselves, for
customers, community, valued business
partners and the environment. It also
inculcates employee volunteerism in
the numerous projects embarked upon
by the hotels, while making sure that
Associates remain very alert to any
issues that may arise in dealing with
these stakeholders and be adept in
finding immediate solutions to assuage
any shortfall.
‘I will stand out wherever I am’ imbues a
holistic culture of urging team members
to be differentiators, activators, leaders
and paradigm makers. This pledge
infuses a gungho attitude among the
team, inculcates a dynamism and
commitment to always be at the zenith
and collectively, begets a winning team.
Into this vista, ‘I will be green’ affirms
a green consciousness among the
Associates, encouraging them to be
the difference and embark on initiatives
that will collectively reduce the sector’s
carbon footprint.
The pledges are all worked on
parameters that allow each Associate
to measure his/her performance, rectify
shortfalls and work on bridging any
gaps.
The enthusiasm and keenness to imbue
these pledges into daily work lives was
clearly displayed when at the John
Keells Leisure Awards when Cinnamon
Grand won awards in all five pledges in
addition to the Sustainability Award and
the coveted Spirit of Leisure award and
Cinnamon Lakeside won a total of three
awards, all of which are detailed in the
Sustainability Report.
Giving Opportunities to the
Differently Able
‘I will care’ extends to the team around
us. Aligned to our employment
philosophy, we are fully attuned to
ensuring that the differently abled should
and must be integrated into society
and have equal opportunities similar
to all. Currently, Cinnamon Grand has
integrated two differently able persons
within the team, each contributing
significantly to the productivity and
optimisation of resources within the
hotel.
As mentioned in our Sustainability
Report, Associates also undergo
comprehensive training to cater
to the needs of the differently abled
and those with special needs from
among our stakeholder groups, from
specially trained butlers to support staff
and emergency priority evacuation
procedures, it is imperative that
Associates are attuned to ensure that
these stakeholders are top priority and
interacted with accordingly.
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Training & Development
Becoming a trendsetter in the hospitality
industry revolves on the coming together
of a considerable number of facets, but
all of which converge on the platform
of an exceptional team working on the
ethos of ‘Service beyond expectations’.
Together with the five pledges that were
permeated unequivocally into the daily
workings of the hotels, a very focused
training and development initiative in
collaboration with the Emirates School
of Hospitality Management began
this year. The fruition of this focused
training is amply showcased in the
customer satisfaction survey that was
conducted at Cinnamon Grand over
the year, which analysed the findings as
‘Exceeding Expectations’, a platform
that is extremely unique and rare in any
customer service survey and certainly
one that vouches that the focused
T&D is truly the driver in ensuring future
leadership. The details of the Customer
Satisfaction Survey are included in the
Sustainability Report.
AHPPLC accumulated a total of 103,709
training hours of which, Cinnamon
Grand’ team underwent a total of
49,207 hours through an investment of
Rs. 13 Mn. Cinnamon Lakeside invested
a total of Rs. 15 Mn on Learning and
Development activities with total training
hours for the year amounting to 54,502.
Our training and development
programmes are designed and
developed to create a culture of
‘excellence beyond comparison’ at all
levels. The knowledge culture within
the hotels are constantly nurtured and
strengthened, worked on through a
comprehensive training calendar that
hones in on the macro environment,
industry demands, organisational
objectives and individual goals.
International Exposure
Training at the Emirates Academy of
Hospitality Management, Dubai
The Emirates Academy of Hospitality
Management is considered the leading
provider in hospitality education in the

[ human resources contd.... ]
Middle East with a full license accorded
by the Ministry of Higher Education
and Scientific Research of the UAE and
accredited by the Institute of Hospitality
UK and THE-ICE Australia. A team of
twenty from Cinnamon Grand and six
from Cinnamon Lakeside were selected
for training at the Academy, which
also gave the select team international
exposure and training at the world’s only
seven star Burj Al Arab Hotel, a member
of the Jumeirah luxury hotel chain. The
team underwent comprehensive and
intense training programmes which
included training at the state of the
art learning facility and field training
in the high end properties within the
Jumeira Group for insight into cultures,
practices and attitudes prevalent within
international hotel chains.
Training Objectives within the various
programmes, all of which are highly
interactive and incorporate considerable
levels of practical training are detailed
below:
� Sous Chef Programme – Aims at
reducing the skills gap between the
second rung chefs in the kitchen
and the Head Chef, while enhancing
knowledge/awareness and ability
levels
� Pastry Chef Programme –
Increases the knowledge, skills
and ability levels of Pastry Chefs
through innovative and up to date
demonstrations
� Kitchen & Restaurant
Management - Focuses on
achieving maximum profit from
restaurant operations, using the
concept development process as a
continuous thread throughout the
course.
� Room Division Programme
– Designed to develop a
comprehensive understanding
of housekeeping operations in a
luxury hotel, define services which
are detailed, intuitive and natural,
understand the importance of
anticipating and exceeding client
expectations and working as a team
from the limousine to the suite with a
strong emphasis on communication
– including client profiles, while
focusing on cost control procedures,
from labour costs and laundry to
room amenities
� F & B Programme – Develops an
understanding of the rudiments
involved in F & B operations in a
luxury hotel, adding an in-depth
perspective to all aspects, while
focusing on exceeding client
expectations, communication and
team work.
The Academy further augmented their
training and development initiatives, by
conducting training programmes within
Sri Lanka for Associates:
Master Trainer Programme – Designed
to create a pool of master trainers who
will cascade the knowledge gained
and deliver training programmes to
meet the new or amended Company
competencies.
Wine Appreciation Module – Certifies
participants to better understand the
principles of wine production, gaining in
depth knowledge on major world wine
production areas, their products and
uses
Competency Training - Based on
delivering the competencies designed
by EAHM for the JKH Leisure Group,
the programme trains key persons in the
respective business units to deliver on
targets in their areas of business.
The John Whyte Bartending
Programme, Singapore
A selected F&B Professional was
also trained at the John Whyte Elite
Bartending Programme in Singapore
which saw immediate results when
Cinnamon Grand won a total of seven
medals at the Marie Brizard Bartending
Championships this year. Details of the
awards are found on page 40 of the
Sustainability Report.
Advanced Engineering Programme
A team of engineering professionals from
Cinnamon Grand had their knowledge
levels further enhanced in Dubai through
an in-depth training programme that
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dealt with engineering in international
properties and the best practices
requiring adoption for maximum
optimisation of resources
Internal Training Programmes
Using both external and internal
resource persons, workshops and
seminars on leadership development,
supervisory skills development, food
safety, neuro-linguistics, building high
performance teams and the health and
safety initiatives of first aid, fire-fighting
and safe driving have been conducted
during the year.
Cinnamon Grand conducted the
following training programmes:
Generic SOP (Standard Operating
Procedures) Training
A total number of 1200 staff was trained
on the new and improved generic SOPs
which remains the backbone of the
diktats of the Cinnamon Brand.
Technical SOP (Standard Operating
Procedures) Training
All of the F&B, Housekeeping and Front
Office Associates were trained on the
technical SOPs that were modified and
re launched in the year 2011.
TAD Trainer program
40 trainers were trained and certified
as TAD trainers (Train, Assess and
Develop) by the training department
in a bid to cascade the rudiments of
training and delivery of the high intensity
departmental SOP training requirements
of the hotel.
Monthly Exams
Over 200 Associates sit for examinations
every month, aimed at testing
knowledge garnered via training
programmes, which further nurtures the
learning culture within the hotel.
Situation Calibration
Every month, 200 staff are trained on
situation handling aimed at developing
and improving their abilities in dealing
with challenging situations that emerge
in a five star property.

Soft Skills
Soft Skills training is effected monthly
to compliment the hard skills and SOPs
permeated.
Lead to Serve
Over 250 Associates were trained on
leadership skills in customer services.
Professional Presence
One hundred Middle Management cadre
were trained in dealing with guests and
in enhancing guest experiences.
Induction & Orientation
A three day comprehensive programme
for all new recruits before work
commencement, where they are briefed
about the organisation, its history,
facilities, services offered to guests,
employee benefits and policies, rules,
regulations, etiquette etc., Basic training
in dining etiquette and a familiarisation of
the hotel is also conducted.
This year, 584 new recruits were
inducted and trained on the basic
fundamentals of working at a five
star city hotel at the regular three day
induction program at Cinnamon Grand.
General training is designed for casual
and trainee associates and focuses
on developing better service levels,
customer care, selling skills, complaint
handling, personal hygiene and
grooming, telephone etiquette, general
and product knowledge, courtesy and
mannerisms, Quality Standards (Eg-ISO
14001,18001, 22000), fire fighting and
security vigilance, motivation building,
goal setting and AIDS awareness.
Basic level English Language classes
are conducted for casual and trainee
associates on a need basis.
Knowledge Assessments are conducted
periodically for F&B, Front Office and
Housekeeping departments to assess
knowledge levels, bridge gaps and raise
the bar where necessary.
Train the Trainer
In addition to the training programmes
specified above which are applicable
to all Associates, selected Junior and
Senior Executives conduct Brand
Standard Training to their subordinates
as departmental trainers. This is further
facilitated by continuous development
of these trainers via Train the Trainer
workshops with the objective of
equipping departments with adequate
trainers who will conduct these
programmes in a standard uniform
manner.
Senior Executives also undergo an
external training series focusing on
management development covering
negotiation skills, time management,
service marketing, labour law and
disciplinary action among other relevant
topics.
Management Level - Need based
training based on identified development
needs conducted by external entity,
while annually, Heads of Department go
through two day stretches of brain
storming focusing on strengthening
existing operations, analyse gaps on
journeying towards the vision and
prepare for the next paradigm of
excellence.
In addition, the following was launched
by Cinnamon Grand this year:
(PRIDE) Personal Responsibility
in Delivering Excellence – Instructs
trainees on the importance of Taking
Responsibility and Delivering Excellence
Image Building Programme
Aimed at developing the personal
and professional image of Associates,
addressing grooming and business &
social etiquette.
English Literacy
The dearth in the knowledge of spoken
and written English among Associates
from all ranks continues to be addressed
with Cinnamon Grand’s weekly English
classes over three month periods.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
63
Cinnamon Magic
Compulsory for all Cinnamon
employees, training was conducted for
41 Associates this year.
Chauffeur Training
83 chauffeurs completed comprehensive
training for added professionalism in
discharging their duties.
Honing competitiveness and team
spirit
Managing a healthy work life balance
through extracurricular activities remains
integral to integrating team spirit and
unity. While remuneration is worked
on the John Keells Group HR Policy on
remuneration, AHPPLC blends reward
and recognition schemes with both
quantitative and qualitative input.
In a unique initiative, an independent
survey was conducted for Cinnamon
Grand in 2010 among its Associates,
based on the ‘Great Place to Work’
survey. The survey gained an overall
score of 59%. Based on these finding,
the hotel embarked on a process where
the comments received from Associates
were put forward to focus groups and
solutions sought and instituted. The
feedback survey which covered 80%
of the team as a follow up, saw the
employee satisfaction index rise to 83%.
From insurance coverage to
comprehensive medical schemes,
accommodation where necessary,
laundry facilities, welfare shops, long
service awards, birthday treats, Quarterly
Associate Meetings wherein high
achievers are recognised, membership
in sports clubs and even internal
competitions and festivities to garner
a better understanding and a culture
of tolerance via religious and cultural
festivals, the Group ensures these
benefits are consistent and in some
cases improved.
The very active welfare societies
organise annual sports days and
religious and cultural festivals, while also
assisting team members with financial
assistance in the event of a catastrophe
within their families.

[ human resources contd.... ]
The following facilities and benefits were
introduced during the year at Cinnamon
Grand:
� A new state-of-the-art staff entrance
for Associates complete with 1,200
lockers at an investment of Rs 2.6
Mn was constructed.
� The Human Resource Department
within the hotel operates 365 days of
the year in order to be accessible to
Associates.
� Staff dormitories refurbished
with enhanced comforts and
conveniences.
� Contractual staff availed the
opportunity of obtaining personal
loans through NTB.
� Televisions and other electronic
and household items can now be
purchased on easy payment and
hire purchase schemes using the
intervention of an external supplier.
� An Eye Camp was conducted for
Associates with opportunity to
purchase eye wear at discounted
rates.
� Online performance appraisal was
introduced for senior executives
identifying performance objectives
against the Balanced Scorecard
methodology.
� The hotel honoured 78 Associates
who have served the hotel from five
to thirty years at its Long Service
Awards.
� Retirees with over fifteen years
service were felicitated on their
retirement day with a special farewell
ceremony.
Talent abounds
Whether in the sporting field or in
industry prowess, our teams continue
to showcase amazing levels of talent
as seen in the snapshot below. Most
accolades are detailed on page 40 of
the Sustainability Report.
Cinnamon Grand won an unprecedented
total of six medals at the Marie Brizard
Bartender’s Competition.
Occupational Health & Safety
Very stringently adhering to guidelines
and regulations laid down by the
international standards and certifications
that the hotels espouse, both hotels
remain very cognizant of ensuring
that their properties are safe places
to work. Occupational Health and
Safety therefore is paramount in day
to day operations at both properties.
Cinnamon Grand and Cinnamon
Lakeside conduct continuous OH&S
programmes for all Associates, to
instil the importance of a safe work
environment not only for themselves but
for guests and suppliers.
Personal hygiene and first aid training is
cascaded to all Associate levels, while
continuous drills on dealing with fires,
emergency evacuations, security needs
and dealing with VVIPs and their security
contingents are conducted, with external
resource persons often adding their
expertise to the subject at hand.
All permanent and contractual staff and
their families at Cinnamon Grand have
comprehensive insurance cover for
surgical, hospitalisation, critical illness,
workmen’s compensation, personal
accident and reimbursements for OPD
fees.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
64

[ statement of directors’
responsibility ]
Directors’ Responsibilities for
the Preparation of the Financial
Statements
This Statement of Directors’
responsibilities is to be read in
conjunction with the Report of the
Auditors and is made to distinguish
the respective responsibilities of the
Directors and of the Auditors in relation
to the Financial Statements contained in
this Annual Report.
The Directors of your Company are
required by the Companies Act No. 7 of
2007 to prepare Financial Statements
which give a true and fair view of the
state of affairs of the Company as at
the end of the financial year, and of the
Profit and Loss and Cash flows of the
Company for the financial year.
As per the provisions of the Companies
Act No.7 of 2007, the Board of the
Company shall cause the Annual
General Meeting report to be sent to
every shareholder of the Company not
less than fifteen working days before the
date fixed for holding the Annual General
Meeting.
The Directors confirm that the Financial
Statements of the Company for
the year ended 31st March 2012
presented in the Report have been
prepared in accordance with the Sri
Lanka Accounting Standards and the
Companies Act No. 7 of 2007. In
preparing the Financial Statements, the
Directors have selected appropriate
accounting policies and have applied
them consistently. Reasonable and
prudent judgments and estimates have
been made and applicable accounting
standards have been followed and
the Financial Statements have been
prepared on a going concern basis.
The Directors are of the view that
adequate funds and other resources are
available within the Company for it to
continue in operation for the foreseeable
future.
The Directors have taken all reasonable
steps expected of them to safeguard the
assets of the Company and to establish
appropriate systems of internal controls
in order to prevent, deter and detect
any fraud, misappropriation or other
irregularities.
The Directors have also taken all
reasonable steps to ensure that the
Company maintains adequate and
accurate accounting books of record
which reflect the transparency of
transactions and provide an accurate
disclosure of the Company’s financial
position.
The Directors are required to provide the
Auditors with every opportunity to take
whatever steps and undertake whatever
inspection they consider appropriate for
the purpose of enabling them to give
their Audit Report. The Directors are of
the view that they have discharged their
responsibilities in this regard.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
65
Compliance Report
The Directors confirm that, to the
best of their knowledge, all taxes and
levies payable by the Company and all
contributions, levies and taxes payable
on behalf of the employees of the
Company, and all other known statutory
obligations as at the Balance Sheet date
have been paid or provided for in the
Financial Statements.
As required by Section 56 (2) of the
Companies Act No. 7 of 2007, the
Board of Directors have confirmed that
the Company satisfies the Solvency
test immediately after the distribution,
in accordance with Section 57 of the
Companies Act No. 7 of 2007, and have
obtained a certificate from the Auditors,
prior to declaring the Interim dividend of
Rs. 1/- per share and the final dividend
of Rs. 3/- per share for this financial year.
By Order of the Board
Keells Consultants (Private) Limited
Secretaries
25th May 2012

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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
everyday is dif ferent
ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
01
66

Rat. Duipit, commy nit nim et nonsequ atetue
asdasdas sdfasfd asgna augiat accummy odigna
feugait eniscilisl ut acipsusci tio dion et vel do-
Constructed on the concept of affordable
lenibh eugait, quisi eum zzriustionse eu feum-
indulgence, Sri Lanka’s award winning flagship
san vel eum vel dolendr eetumsa ndipis nulla
five star city hotel promises world class
consed eu faccum velenim nullam, jgfo ik-
experiences and infinite indulgences in a
gdfgndfjdmgdf digj susto conse tin
truly unique milieu of Sri Lankan hospitality.
Having pioneered some global firsts, regional
everyday is dif frent firsts and Sri Lankan firsts, Cinnamon
ASIAN HOTELS AND PROPERTIES PLC
Annual Report Grand 2011/12 has 01perfected
the art of innovation
and set benchmarks that have raised
the bar continuously for the entire
hospitality industry in Sri Lanka.
67
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12

[ report of the audit committee ]
Introduction
This report focuses on the functions
along with the responsibilities of the
Audit Committee for the year under
review. A more general description of
the Committee’s functions is given under
Corporate Governance on pages 23 to 31.
Composition of the Committee and
Meetings
The Audit Committee comprised of three
Non Executive independent Directors.
The Chairman of the Audit Committee and
another member of the Committee are
Chartered Accountants while the other
member of the committee has a specialist
financial background. The Director
Finance of the Hotel sector served as the
Secretary to the Audit Committee. Mr.
A.R. Gunasekara resigned from the Audit
Committee with effect from 29th June
2011 and Mr. C.J.L. Pinto joined the Audit
Committee with effect from 1st July 2011
to take up the position of chairman.
The President Property Group of John
Keells Holdings, CEO of the Company’s
Property Division, The General Manager
of Cinnamon Grand, Sector Financial
Controllers of Property and Hotels
Sectors together with the Head of Group
Business Process Review and Head
of Sustainability and Enterprise Risk
Management of John Keells Holdings
PLC, attend audit committee meetings
by invitation. The Outsourced Internal
Auditors and the External Auditors also
attended the meetings on a regular basis.
The Audit Committee held five meetings
during the financial year. Information on
the attendance at these meetings is given
under Corporate Governance on page 28.
The effectiveness of the Committee is
evaluated annually by each member
of the Committee and the results are
communicated to the Board.
The activities and views of the Committee
have been communicated to the Board
of Directors by tabling the minutes of the
Committee’s meetings at Board Meetings
and verbally at Board meetings when
necessary.
Financial Reporting
The Audit Committee has reviewed and
discussed the Company’s quarterly
and annual financial statements prior to
publication with management and the
external auditors, including the extent of
compliance with Sri Lanka Accounting
Standards and the adequacy of
disclosures required by other applicable
laws, rules, and guidelines. The
Committee has also regularly discussed
the operations of the Company and its
future prospects with management and
is satisfied that all relevant matters have
been taken into account in the preparation
of the financial statements.
The Committee has discussed with
Management and the External Auditors
the Company’s readiness for the pending
convergence of Sri Lanka Accounting
Standards (SLAS) with International
Financial Reporting Standards (IFRS)
to be adopted for the financial year
commencing 1st April 2012. The Company
has carried out a gap analysis to identify
areas requiring action in liaison with the
External Auditors, Management and the
John Keells Group IFRS Implementation
teams, and it is envisaged that the
Company would be able to comply with
the new reporting standards on time.
Internal Audit, Risks and Controls
Pricewaterhouse Coopers (Pvt) Ltd
continued to serve as the Outsourced
Internal Auditors of the Company, and
the audit plans and scope of work were
formulated in consultation with the John
Keells Group, Business Process Review
(Group BPR) Division and approved by the
Committee.
The main focus of the Internal Audit was
to provide independent assurance on
the overall system of internal controls,
risk management and governance, by
evaluating the adequacy and effectiveness
of internal controls, and compliance with
laws and regulations and established
policies and procedures of the Company.
During the year, reports were received
by the Committee from the Outsourced
Internal Auditors, which were reviewed
and discussed with management, the
Outsourced Internal Auditors and the
John Keells Group BPR Division. The
recommendations of the Internal Auditors
have been followed up and are being
implemented.
The Audit Committee has also reviewed
the processes for the identification,
evaluation and management of all
significant operational risks faced by
the Company. The most significant
operational risks and the remedial
measures taken to mitigate them have
been reviewed with management and the
John Keells Group Sustainability Initiative
Team.
Formal confirmations and assurances
have been received from senior
management quarterly regarding the
efficacy and status of the internal control
systems and risk management systems,
and compliance with applicable laws and
regulations.
External Audit
The External Auditors’ letter of
engagement, including the scope of the
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
68
audit, was reviewed and discussed by the
Committee with the external auditors and
management prior to the commencement
of the audit.
The External Auditors kept the Committee
advised on an on-going basis regarding
any unresolved matters of significance.
Before the conclusion of the audit,
the Committee met with the external
auditors to discuss all audit issues and
agree on their treatment. The Committee
also met the External Auditors, without
management present, prior to the
finalization of the financial statements.
The External Auditors’ management
letter for the year 2010/11, together with
management’s responses was discussed
with management and the auditors.
The Audit Committee is satisfied that the
independence of the External Auditors has
not been impaired by any event or service
that gives rise to a conflict of interest.
Due consideration has been given to the
level of audit and non-audit fees received
by the external auditors from the John
Keells Group and confirmation has been
received from the external auditors of
their compliance with the independence
guidance given in the Code of Ethics of
the Institute of Chartered Accountants of
Sri Lanka.
The performance of the External Auditors
has been evaluated and discussed with
the senior management of the Company,
and the Committee has recommended to
the Board that KPMG (Previously known
as KPMG Ford, Rhodes, Thornton & Co.)
be re-appointed as the External Auditors
of Asian Hotels and Property PLC for the
financial year ending 31st March 2013,
subject to approval by the shareholders at
the Annual General Meeting to be held on
25th of June 2012.
Conclusion
Based on the reports submitted by the
External Auditors and the Outsourced
Internal Auditors of the Company, the
assurances and certifications provided
by the senior management, and the
discussions with management and the
auditors both at formal meetings and
informally, the Committee is of the view
that the control environment within the
Company is satisfactory and provides
reasonable assurance that the financial
position of the Company is adequately
monitored and its assets are safeguarded.
C. J. L. Pinto
Chairman of the Audit Committee
25th May 2012

[ independent auditors’ report ]
TO THE SHAREHOLDERS OF ASIAN
HOTELS AND PROPERTIES PLC
Report on the Financial Statements
We have audited the accompanying
financial statements of Asian Hotels and
Properties PLC (“Company”), and the
consolidated financial statements of the
Company and its subsidiary as at 31st
March 2012 which comprise the balance
sheet as at 31st March 2012, and the
income statement, statement of changes
in equity and cash flow statement for
the year then ended, and a summary of
significant accounting policies and other
explanatory notes as set out on pages 74
to 91 of this Annual Report.
Management’s Responsibility for
the Financial Statements
Management is responsible for the
preparation and fair presentation of
these financial statements in accordance
with Sri Lanka Accounting Standards.
This responsibility includes: designing,
implementing and maintaining internal
control relevant to the preparation and
fair presentation of financial statements
that are free from material misstatement,
whether due to fraud or error; selecting
and applying appropriate accounting
policies; and making accounting estimates
that are reasonable in the circumstances.
Scope of Audit and Basis of Opinion
Our responsibility is to express an opinion
on these financial statements based
on our audit. We conducted our audit
in accordance with Sri Lanka Auditing
Standards. Those standards require
that we plan and perform the audit to
obtain reasonable assurance whether the
financial statements are free from material
misstatement.
An audit includes examining, on a
test basis, evidence supporting the
amounts and disclosures in the financial
statements. An audit also includes
assessing the accounting policies used
and significant estimates made by
management, as well as evaluating the
overall financial statement presentation.
We have obtained all the information and
explanations which to the best of our
knowledge and belief were necessary
for the purposes of our audit. We
therefore believe that our audit provides a
reasonable basis for our opinion.
Opinion
In our opinion, so far as appears from our
examination, the Company maintained
proper accounting records for the year
ended 31st March 2012 and the financial
statements give a true and fair view of
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
69
the Company’s state of affairs as at 31st
March 2012 and its profit and cash flows
for the year then ended in accordance
with Sri Lanka Accounting Standards.
In our opinion, the consolidated financial
statements give a true and fair view of
the state of affairs as at 31st March 2012
and the profit and cash flows for the year
then ended, in accordance with Sri Lanka
Accounting Standards, of the Company
and its subsidiary dealt with thereby, so
far as concerns the shareholders of the
Company.
Report on Other Legal and
Regulatory Requirements
These financial statements also comply
with the requirements of Sections 153(2)
to 153(7) as appropriate of the Companies
Act No. 07 of 2007.
CHARTERED ACCOUNTANTS
Colombo
25th May 2012

[ balance sheet ]
Group Company
Balance Sheet as at 31st March 2012 2011 2012 2011
Page No Note Rs.’000 Rs.’000 Rs.’000 Rs.’000
ASSETS
Non Current Assets
Property, Plant and Equipment 80 8 12,005,037 11,847,798 9,160,039 9,186,218
Leasehold Property 81 9 843,472 855,876 - -
Investment Property 82 10 3,101,540 2,701,972 1,632,000 1,332,280
Intangible Assets 82 11 12,190 16,683 1,373 1,819
Investment in Subsidiary 82 12 - - 660,045 660,045
Work in Progress - Apartments 83 13 - - - -
Long Term Investments 83 14 - - - -
Other Non Current Assets 83 15 41,388 23,865 12,462 23,865
Total Non Current Assets 16,003,627 15,446,194 11,465,919 11,204,227
Current Assets
Inventories 84 16 115,852 122,746 73,571 79,460
Work in Progress - Apartments 83 13 64,392 1,353,804 64,392 1,353,804
Trade and Other Receivables 84 17 755,086 686,369 453,791 370,955
Amounts Due from Related Parties 84 18 46,629 47,836 28,227 30,029
Short Term Investments 84 19 2,763,209 317,921 2,411,209 42,921
Cash In Hand and at Bank 305,164 176,350 181,014 115,712
Total Current Assets 4,050,332 2,705,026 3,212,204 1,992,881
Total Assets 20,053,959 18,151,220 14,678,123 13,197,108
EQUITY & LIABILITIES
Equity
Stated Capital 84 20 3,345,117 3,345,117 3,345,117 3,345,117
Capital Reserves 85 21 5,143,193 5,179,592 4,772,950 4,791,408
Revenue Reserves 85 22 6,492,754 5,194,517 5,247,198 4,107,205
Equity attributable Owners of the Company 14,981,064 13,719,226 13,365,265 12,243,730
Minority Interest 2,966,837 2,783,930 - -
Total Equity 17,947,901 16,503,156 13,365,265 12,243,730
Non Current Liabilities
Interest Bearing Borrowings 85 23 2,852 4,288 - -
Employee Benefits 86 24 208,696 175,448 109,551 86,149
Deferred Taxation 86 25 255,793 248,354 - -
Total Non-Current Liabilities 467,341 428,090 109,551 86,149
Current Liabilities
Trade and Other Payables 87 26 931,803 972,494 630,756 721,691
Amounts Due to Related Parties 84 18 84,314 82,360 56,692 64,275
Current Taxation 69,398 79,155 - -
Dividends Payable 442,775 - 442,775 -
Interest Bearing Borrowings 85 23 1,437 1,437 - -
Bank Overdrafts 108,990 84,528 73,084 81,263
Total Current Liabilities 1,638,717 1,219,974 1,203,307 867,229
Total Liabilities 2,106,058 1,648,064 1,312,858 953,378
Total Equity and Liabilities 20,053,959 18,151,220 14,678,123 13,197,108
The Notes to the Financial Statements from Pages 74 to 91 form an integral part of these Financial Statements.
I certify that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 7 of 2007.
Prasanna Fernando
Director Finance
The Board of Directors is responsible for the preparation and presentation of these Financial Statements
Signed for and on behalf of the Board by,
A.D. Gunewardene J.R.F. Peiris
Managing Director Group Finance Director
Colombo.
25th May 2012
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
70

[ income statement ]
Group Company
For the year ended 31st March 2012 2011 2012 2011
Page No Note Rs.’000 Rs.’000 Rs.’000 Rs.’000
Revenue 87 27 8,861,173 7,457,325 6,479,762 5,485,469
Cost of Sales (4,429,231) (3,809,480) (3,556,776) (3,024,275)
Gross Profit 4,431,942 3,647,845 2,922,986 2,461,194
Dividend Income 87 28 - - 117,211 39,070
Other Income 87 29 185,789 103,210 160,992 83,861
Administrative Expenses (1,522,045) (1,308,747) (970,636) (829,051)
Distribution Expenses (170,447) (181,039) (99,707) (109,663)
Other Operating Expenses (559,867) (477,928) (297,159) (279,009)
Finance Expenses 87 30 (12,738) (43,847) (12,715) (43,748)
Change in Fair Value of Investment Property 82 10 306,819 444,764 206,971 215,088
Profit Before Tax 87 31 2,659,453 2,184,258 2,027,943 1,537,742
Income Tax Expense 88 32 (152,053) (36,372) (20,858) (6,218)
Profit for the Year 2,507,400 2,147,886 2,007,085 1,531,524
Attributable to:
Equity Holders of the Parent 2,150,572 1,774,521 2,007,085 1,531,524
Minority Interest 356,828 373,365 - -
2,507,400 2,147,886 2,007,085 1,531,524
Earnings Per Share 89 33 4.86 4.01 4.53 3.46
Dividend Per Share 89 34 2.00 0.50 2.00 0.50
Figures in brackets indicate deductions.
The Notes to the Financial Statements from Pages 74 to 91 form an integral part of these Financial Statements.
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Annual Report 2011/12
71

[ statement of changes in equity ]
Attributable to Equity Holders of the Parent
GROUP Stated Revaluation General Retained Total Minority Total
Capital Reserve Reserve Earnings Interest Equity
Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000
As at 31st March, 2010 3,345,117 5,233,818 85,000 3,500,332 12,164,267 2,464,777 14,629,044
Transferred to Revenue Reserve (Note a) - (56,052) - 56,052 - - -
Transferred from Deferred Tax - 3,838 - - 3,838 5,001 8,839
De-recognition of Assets on
Refurbishments (Note 8 b) - (2,012) - - (2,012) (2,623) (4,635)
Profit for the Year - 2010/2011 - - - 1,774,521 1,774,521 373,365 2,147,886
Final Dividend Paid - 2009/2010 - - - (221,388) (221,388) - (221,388)
Subsidiary Dividend to Minority Shareholders - - - - - (56,590) (56,590)
As at 31st March, 2011 3,345,117 5,179,592 85,000 5,109,517 13,719,226 2,783,930 16,503,156
Transferred to Revenue Reserve (Note a) - (33,215) - 33,215 - - -
De-recognition of Assets on
Refurbishments (Note 8 b) - (3,184) - - (3,184) (4,151) (7,335)
Profit for the Year - 2011/2012 - - - 2,150,572 2,150,572 356,828 2,507,400
Final Dividend Paid - 2010/2011 - - - (442,775) (442,775) - (442,775)
Interim Dividend - 2011/2012 - - - (442,775) (442,775) - (442,775)
Subsidiary Dividend to Minority Shareholders - - - - - (169,770) (169,770)
As at 31st March, 2012 3,345,117 5,143,193 85,000 6,407,754 14,981,064 2,966,837 17,947,901
Note (a) According to the Sri Lanka Accounting Standard - 18 “Property, Plant and Equipment” as explained in the Accounting Policies, the
Revaluation Surplus included in the Equity can be transferred to Retained Earnings when the surplus is realised. Accordingly, the surplus realised
amounting to Rs. 18.45 Mn (Rs. 42.73 Mn in 2011) and Rs. 14.76 Mn (Rs. 13.32 Mn in 2011) for Company and Subsidiary respectively has been
transferred directly to Retained Earnings as at the Balance Sheet date.
The Notes to the Financial Statements from Pages 74 to 91 form an integral part of these Financial Statements.
COMPANY Stated Revaluation General Retained Total
Capital Reserve Reserve Earnings Equity
Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000
As at 31st March, 2010 3,345,117 4,834,140 85,000 2,669,337 10,933,594
Transferred to Revenue Reserve (Note a) - (42,732) - 42,732 -
Profit for the Year - 2010/2011 - - - 1,531,524 1,531,524
Final Dividend Paid - 2009/2010 - - - (221,388) (221,388)
As at 31st March, 2011 3,345,117 4,791,408 85,000 4,022,205 12,243,730
Transferred to Revenue Reserve (Note a) - (18,458) - 18,458 -
Profit for the Year - 2011/2012 - - - 2,007,085 2,007,085
Final Dividend Paid - 2010/2011 - - - (442,775) (442,775)
Interim Dividend - 2011/2012 - - - (442,775) (442,775)
As at 31st March, 2012 3,345,117 4,772,950 85,000 5,162,198 13,365,265
Note (a) According to the Sri Lanka Accounting Standard - 18 “Property, Plant and Equipment” as explained in the Accounting Policies the
Revaluation surplus included in the Equity can be transferred to Retained Earnings when the Surplus is realised. Accordingly, the surplus realised
amounting to Rs.18.4 Mn (Rs.42.7 Mn in 2011) has been transferred directly to Retained Earnings as at the Balance Sheet date. (Refer Note 21 on
page 85 for details).
The Notes to the Financial Statements from Pages 74 to 91 form an integral part of these Financial Statements.
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72

[ cash flow statement ]
Group Company
For the Year Ended 31st March 2012 2011 2012 2011
Note Rs.’000 Rs.’000 Rs.’000 Rs.’000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Profit Before Working
Capital Changes A 4,614,894 3,712,537 3,776,827 3,086,021
(Increase) / Decrease Inventories 6,894 (4,953) 5,889 (13,434)
(Increase) / Decrease in Receivables and
Prepayments (108,964) (228,515) (87,219) (204,165)
Increase / (Decrease) in Creditors and Accruals (38,737) (322,704) (98,518) (328,401)
Cash Generated from Operations 4,474,087 3,156,365 3,596,979 2,540,021
Interest Received 85,796 33,783 71,225 21,496
Finance Expenses Paid (12,738) (43,847) (12,715) (43,748)
Dividends Received - - 117,211 39,070
Income Tax Paid (154,371) (9,888) (20,858) (6,218)
Gratuity Paid / Transfer (11,966) (16,777) (4,236) (9,144)
Net Cash Flow from Operating Activities 4,380,808 3,119,636 3,747,606 2,541,477
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
Purchase / Transfers and Construction of
Property, Plant and Equipment (579,310) (581,785) (213,890) (353,916)
Addition to Work-in-Progress (576,720) (2,311,022) (576,720) (2,311,022)
Addition/ Transfers to Investment Property (92,749) (1,732) (92,749) (1,732)
Addition to Intangible Assets (1,218) (7,493) (721) (47)
Proceeds from Sale of Property, Plant & Equipment 21,408 29,754 9,615 9,223
Proceeds from/ (Repayment of) Other Assets (Net) 11,403 (12,356) 11,403 (12,356)
Net Cash Flow Used in Investing Activities (1,217,187) (2,884,634) (863,062) (2,669,850)
CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
Dividend Paid to Equity Holders of Parent (442,775) (221,388) (442,775) (221,388)
Dividend Paid to Minority Shareholders (169,770) (56,590) - -
Repayment of Long Term Borrowings (1,436) (612,302) - (610,866)
Net Cash Flow Used in Financing Activities (613,981) (890,280) (442,775) (832,254)
NET INCREASE / (DECREASE) IN CASH AND
CASH EQUIVALENTS 2,549,640 (655,278) 2,441,769 (960,627)
CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE YEAR 409,743 1,065,021 77,370 1,037,997
CASH AND CASH EQUIVALENTS AT THE END OF
THE YEAR 2,959,383 409,743 2,519,139 77,370
Analysis of Cash and Cash Equivalents
Favourable Balances
Cash and Bank 305,164 176,350 181,014 115,712
Short Term Investments 2,763,209 317,921 2,411,209 42,921
Unfavourable Balances
Bank Overdrafts (108,990) (84,528) (73,084) (81,263)
Total Cash and Cash Equivalents 2,959,383 409,743 2,519,139 77,370
(A) Operating Profit Before Working Capital Changes
Profit before Tax 2,659,453 2,184,258 2,027,943 1,537,742
Adjustment for:
Interest Income (85,796) (33,783) (71,225) (21,496)
Dividend Income - - (117,211) (39,070)
Finance Expenses 12,738 43,847 12,715 43,748
Change in Fair Value of Investment Property (306,819) (444,764) (206,971) (215,088)
Depreciation of Property, Plant and Equipment 376,121 345,711 224,384 210,506
Amortisation of Leasehold Properties 12,404 12,404 - -
Amortisation of Intangible Assets 5,711 5,037 1,167 936
(Profit) / Loss on Disposal of Property, Plant & Equipment (943) (6,077) 6,070 (1,639)
De-recognition of Assets on Refurbishments 18,151 11,840 - -
Impairment/ Provision for Doubtful Debts 12,528 849 6,185 (273)
Gratuity Charge and Related Costs 45,214 39,841 27,638 17,281
Project Costs 1,866,132 1,553,374 1,866,132 1,553,374
4,614,894 3,712,537 3,776,827 3,086,021
The Notes to the Financial Statements from Pages 74 to 91 form an integral part of these Financial Statements.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
73

[ notes to the financial statements ]
1. REPORTING ENTITY
Asian Hotels and Properties
PLC is a public limited liability
Company incorporated and
domiciled in Sri Lanka and listed
on the Colombo Stock Exchange.
The Corporate Information is
given on the back inner cover.
John Keells Holdings PLC
became the holding Company
of the Group during the financial
year ended 31 March 2004.
In the financial statements,
“the Company” refers to Asian
Hotels and Properties PLC as
the holding Company and “the
Group” refers to the companies
whose accounts have been
consolidated therein. The
principal activities of the Group
during the year were hoteliering
and property development.
The Subsidiary was Trans Asia
Hotels PLC.
The Group had 2,103 employees
(1,967 in 2011) and the Company
had 1,265 employees (1,151 in
2011) at end of the financial year.
2. STATEMENT OF
COMPLIANCE
The balance sheet, statement of
income, statement of changes
in equity and the cash flow
statement, together with the
accounting policies and notes
(the “financial statements”) of the
Group as at 31 March 2012 and
for the year then ended; have
been prepared in accordance
with Sri Lanka Accounting
Standards (SLAS) issued
by the Institute of Chartered
Accountants of Sri Lanka, and
comply with the requirements of
the Companies Act. No. 07 of
2007.
The consolidated financial
statements for the year ended
31st March 2012 were authorized
for issue by the Directors on 25th
May 2012.
3. BASIS OF PREPARATION
The financial statements, have
been prepared on an accrual
basis and under the historical
cost conversion except for the
following.
• Freehold Land and Buildings
are measured at cost, at
the time of acquisition and
subsequently recognized at
revalued amounts which are
the fair values at the date of
revaluation less accumulated
depreciation and impairment
cost if any.
• Investment properties are
stated at fair values.
All values presented in the
financial statements are in
Sri Lanka rupees thousands
(Rs.’000) which is the Group’s
functional currency, unless
otherwise indicated.
Use of estimates and
judgments
The preparation of financial
statements in conformity
with Sri Lanka Accounting
Standards (SLAS), requires the
management to make judgments,
estimates and assumptions
that affect the application of
accounting policies and the
reported amounts of assets,
liabilities, income and expenses.
The estimates and underlying
assumptions are based on
historical experience and various
other factors that are believed
to be reasonable under the
circumstances, the results of
which form the basis of making
the judgments about the carrying
amount of assets and liabilities
that are not readily apparent from
other sources.
The estimates and underlying
assumptions are reviewed on
an ongoing basis. Revisions
to accounting estimates are
recognised in the period in which
the estimate is revised if the
revision affects only that period
or in the period of the revision
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
74
and future periods if the revision
affects both current and future
periods.
Judgments made by
management in the application
of SLAS that have a significant
effect on the Financial Statements
are mentioned below.
** Note
* Valuation of Property, Plant and
Equipment 5.4
* Valuation of Investment Property 5.6
* Impairment of Assets 5.13
* Employee Benefits 5.14
* Estimation of Revenue and Cost
of Apartments 5.18
4. COMPARATIVE INFORMATION
Previous year’s figures and
phrases have been re-arranged,
wherever necessary, to conform
to the current year’s presentation.
5. SIGNIFICANT ACCOUNTING
POLICIES
The accounting policies set
out below have been applied
consistently to all periods
presented in these Financial
Statements. The accounting
policies of the Company have
been consistently applied by
Group entities, unless otherwise
stated.
The significant accounting
policies have been discussed
below,
5.1 Basis of Consolidation
The consolidated financial
statements comprise the
financial statements of the
Company, its Subsidiaries and
other Companies over which
it has control, using consistent
accounting policies.
All intra-group balances,
transactions, income and
expenses and profits and losses
resulting from Intra Group
transactions that are recognized
in assets and liabilities are
eliminated in full.

(a) Subsidiaries
Subsidiaries are those enterprises
controlled by the parent. Control
exists when the parent has the
power, directly or indirectly to
govern the financial and operating
policies of an enterprise.
Subsidiaries are controlled from
the date the parent obtains
control until the date that control
ceases.
Asian Hotels and Properties
PLC has the power to directly
govern the financial and operating
policies of Trans Asia Hotels
PLC, accordingly the entity is
considered as a subsidiary of
Asian Hotels and Properties
PLC. The total profits and losses
for the period, of the Company
and of its Subsidiaries included
in consolidation and all assets
and liabilities of the Company
and of its Subsidiaries included
in consolidation are shown
in the consolidated income
statement and balance sheet
respectively. Minority interests
which represents the portion
of profit or loss and net assets
not held by the Group, are
presented separately in the
income statement and within
equity in the consolidated
balance sheet, separately from
parent shareholders’ equity. The
consolidated cash flow statement
includes the cash flows of the
Company and its Subsidiaries.
(b) Financial Year
All Companies in the Group have
a common financial year which
ends on 31st March.
5.2 Foreign Currency Transaction
The Consolidated financial
statements are presented in
Sri Lanka rupees, which is
the Group’s functional and
presentation currency.
All foreign exchange
transactions are converted
to Sri Lanka rupees, at the
rates of exchange prevailing at
the time the transactions are
effected. Monetary assets and
liabilities denominated in foreign
currency are retranslated to
Sri Lanka rupee equivalents at
the exchange rate prevailing at
the balance sheet date. Nonmonetary
assets and liabilities are
translated using exchange rates
that existed when the values were
determined. The resulting gains
and losses are accounted for in
the income statement.
5.3 Income Tax Expense
Income Tax expense comprises
of current and deferred tax. The
tax expense recognized in the
income statement comprises
income tax, unrecoverable
economic service charge, social
responsibility levy and deferred
tax.
(a) Current Tax
Provision for current tax is based
on the elements of income
and expenditure as reported in
the financial statements and is
computed in accordance with the
provision of the Inland Revenue
Act 10 of 2006 and amendments
thereto, taking into consideration
the maximum relief available.
The profits and income of the
Company are exempt from
taxation for a period of 15 years
commencing from 1st April
1996, due to the merger of Asian
Hotels Corporation Limited and
Crescat Developments Limited,
the tax holiday of Asian Hotels
and Properties PLC (merged
entity) has been extended by an
additional three years until year
2014. However, income tax on
interest income has been paid at
28%.
Trans Asia Hotel PLC is liable
for taxation at the rate of 12% in
accordance with the provision of
the Inland Revenue Act No. 10 of
2006 and amendments thereto.
Current tax has been provided for
interest income and rental income
at 28%.
(b) Deferred Tax
Deferred taxation is provided
using the balance sheet liability
method providing for temporary
differences between the carrying
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
75
amount of assets and liabilities
for financial reporting purposes
and the amounts used for
taxation purposes. The amount
of Deferred tax provided is based
on the expected manner of
realization or settlement of the
carrying amount of assets and
liabilities, using tax rates enacted
or substantively enacted by the
reporting date.
Deferred tax assets, including
those related to tax effects of
income tax losses and credits
available to be carried forward,
are recognized only to the extent
that it is possible that future
taxable profits will be available
against which the assets can be
utilized. Deferred tax assets are
reviewed at each reporting date
and are reduced to the extent
that is no longer probable that
the related tax benefits will be
realized.
Valuation of Assets and the
Bases of Measurement
Assets classified as current
assets in the balance sheet
are cash and those which are
expected to be realised in cash
during the normal operating cycle
of the Company’s business or
within one year from the balance
sheet date, whichever is shorter.
Assets other than current assets
are those which the Company
intends to hold beyond a period
of one year from the balance
sheet date.
5.4 Property, Plant and
Equipment
(a) Recognition and Measurement
of Property, Plant and
Equipment
All items of property, plant and
equipment are initially recorded
at cost. Where items of property,
plant and equipment are
subsequently revalued, the entire
class of such assets is revalued at
fair value.
The Group applies cost model to
property, plant and equipment
except for land and buildings and
records at cost of purchase or
construction together with any

[ notes to the financial statements contd.... ]
incidental expenses thereon less
accumulated depreciation and
any accumulated impairment
losses.
The carrying values of property
plant and equipment are reviewed
for impairment when events
or changes in circumstances
indicate that the carrying value
may not be recoverable.
The Group applies the revaluation
model to land and
buildings. The Group has adopted
a policy of revaluing assets every
five years.
When an asset is revalued,
any increase in the carrying
amount is credited directly to
a revaluation reserve, except
to the extent that it reverses a
revaluation decrease of the same
asset previously recognised in
the income statement, in which
case the increase is recognised
in the income statement. Any
revaluation deficit that offsets
a previous surplus in the same
asset is directly offset against the
surplus in the revaluation reserve
and any excess recognised as
an expense. Upon disposal, any
revaluation reserve relating to
the asset sold is transferred to
retained earnings.
Items of property, plant and
equipment are derecognised
upon disposal or when no future
economic benefits are expected
from its use. Any gain or loss
arising on derecognition of the
asset is included in the income
statement in the year the asset is
derecognised.
(b) Depreciation
Provision for depreciation is
calculated by using a straight-line
method on the cost or valuation of
all property, plant and equipment,
other than freehold land, in order
to write off such amounts over
the estimated useful economic life
of such assets, from the time the
asset become available for use.
The estimated useful life of assets
are as follows:
Asset Category Years
Buildings 75
Plant and Machinery 10-20
Motor Vehicles 5
Floating Restaurant 18
Furniture, Furnishings &
Equipment 5-15
Computers 5
Base Stock/Circulating Assets 3-10
The useful life and residual value
of assets are reviewed, and
adjusted if required, at the end of
each financial year.
Buildings are depreciated using
reducing balance method in order
to depreciate over the balance
lease period of 68 years.
5.5 Leasehold Property
Leasehold property comprising
of land use rights and stated
at valuation, are amortised on
a straight line basis over the
remaining lease term.
Trans Asia Hotels PLC – The
leasehold land is for 99 years
commencing 7th August 1981
and is being amortised over a
period of 94 years commencing
from 1st April 1986.
5.6 Investment Properties
Properties held to earn rental
income, and properties held for
capital appreciation have been
classified as Investment Property.
Investment properties are initially
recognised at cost. Subsequent
to initial recognition the
investment properties are stated
at fair values, which reflect market
conditions at the balance sheet
date. Gains or losses arising from
changes in fair value are included
in the income statement in the
year in which they arise.
Investment properties are
derecognised when disposed,
or permanently withdrawn from
use because no future economic
benefits are expected. Any
gains or losses on retirement or
disposal are recognised in the
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
76
income statement in the year of
retirement or disposal. Transfers
are made to investment property,
when there is a change in use,
evidenced by ending of owneroccupation,
commencement of
an operating lease to another
party or ending of construction
or development. Transfers are
made from investment property,
when there is a change in use,
evidenced by commencement
of owner-occupation or
commencement of development
with a view to sale.
5.7 Intangible Assets
An intangible asset is an
identifiable non monitory asset
without physical substance
held for use in the production
or supply goods or other
services, rental to others or for
administrative purposes.
An intangible asset is initially
recognized at cost, if it is
probable that future economic
benefit will flow to the enterprise,
and the cost of the asset can
be measured reliably. Following
initial recognition, intangible
assets are carried at cost less
any accumulated amortization
and any accumulated impairment
losses.
(a) Computer software
All computer software costs
incurred, licensed for use by the
Group, which are not integrally
related to associated hardware,
which can be clearly identified,
reliably measured and it’s
probable that they will lead to
future economic benefits, are
included in the Balance Sheet
under the category intangible
assets and carried at cost less
accumulated amortization and
any accumulated impairment
losses.
(b) Amortization
Intangible assets with finite
lives are amortized over the
estimated useful economic life
and assessed for impairment
whenever there is an indication
that the intangible asset may be
impaired. Intangible assets are

amortized on a straight line basis
in the Income Statement from
the date on which the asset was
available for use, over the best
estimate of its useful life. The
estimated useful life of software is
5 years. The amortization period
and the amortization method for
an intangible asset with a finite
useful life is reviewed at least at
each financial year-end.
(c) Retirement and disposal
An intangible asset is
derecognized on disposal or
when no future economic benefits
are expected from its use and
subsequent disposal.
5.8 Long Term Investments
All quoted and unquoted
securities, which are held as noncurrent
investments, are valued at
cost. The cost of the investment
is the cost of acquisition
inclusive of brokerage and costs
of transaction. The carrying
amounts of long term investments
are reduced to recognise a
decline which is considered other
than temporary, in the value of
investments, determined on an
individual investment basis.
In the Company’s financial
statements, investments in
subsidiary have been accounted
for at cost, net of any impairment
which is charged to the income
statement. Incomes from these
investments are recognised
only to the extent of dividends
received.
5.9 Inventories
Inventories are stated at the
lower of cost and net realisable
value. Net realisable value is the
estimated selling price in the
ordinary course of business, less
the estimated costs of completion
and selling expenses. The cost
of inventories is based on the
weighted average cost and
includes expenditure incurred
in acquiring the inventories and
bringing them to their existing
location and condition.
5.10 Trade and Other Receivables
Trade and Other Receivables are
stated at the amounts that they
are estimated to realise, net of
provisions for bad and doubtful
receivables. A full provision for
doubtful debts is made when
the debt exceeds 180 days, and
collection of the full amount is no
longer probable. Bad debts are
written off when identified.
5.11 Short-Term Investments
Treasury bills and other interest
bearing securities held for resale
in the near future to benefit from
short-term market movements
are accounted for at cost plus
the relevant proportion of the
discounts or premiums.
5.12 Cash and Cash Equivalents
Cash and Cash Equivalents in the
cash flow statement comprise
cash at bank and in hand and
short term deposits with a
maturity of 3 months, net of
outstanding bank overdrafts.
5.13 Impairment of Assets
The Group assesses at each
reporting date whether there is an
indication that an asset may be
impaired.
If any such indication exists, or
when annual impairment testing
for an asset is required, the Group
makes an estimate of the asset’s
recoverable amount. An asset’s
recoverable amount is the higher
of an asset’s fair value less costs
to sell and its value in use and
is determined for an individual
asset, unless the asset does not
generate cash inflow that are
largely independent of those from
other assets or groups of assets.
For the purpose of impairment
testing assets that cannot be
tested individually or grouped
together into the smallest group
of assets that generates cash
flow from continuing use that are
largely dependant of the cash
flows of other assets or group
of assets (cash generating units
or (CGU)). Where the carrying
amount of an asset exceeds its
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
77
recoverable amount, the asset
is considered impaired and is
written down to its recoverable
amount.
Impairment losses are recognised
in the income statement,
except that, impairment losses
in respect of property, plant
and equipment are recognized
against the revaluation reserve
to the extent that it reverses a
previous revaluation surplus. An
assessment is made at each
reporting date as to whether there
is any indication that previously
recognized impairment losses
may no longer exist or may have
decreased. Previously recognized
impairment losses other than in
respect of goodwill, are reversed
only if there has been an increase
in the recoverable amount of
the asset. Such increase is
recognised to the extent that the
carrying amount would have no
impairment losses recognized
previously.
Liabilities and Provisions
Liabilities classified as current
liabilities in the balance sheet
are those obligations payable on
demand or within one year from
the balance sheet date. Items
classified as non-current liabilities
are those obligations, which
expired beyond a period of one
year from the balance sheet date.
All known liabilities have been
accounted for in preparing the
financial statements. Provisions
and liabilities are recognised
when the Company has a legal
or constructive obligation as a
result of passed events and it
is probable that an outflow of
economic benefits will be required
to settle the obligation.
5.14 Employee Benefits
(a) Defined Contribution Plans -
Employees’ Provident Fund
And Employees’ Trust Fund
EPF & ETF are recognised
as incurred. Employees are
eligible for EPF contributions
and ETF contributions in line
with the respective statues

[ notes to the financial statements contd.... ]
and regulations. The Company
contributes 12% and 3% of gross
emoluments of employees to the
EPF and ETF respectively other
than Cinnamon Grand Colombo
where the contributions are 15%
and 3% respectively.
(b) Defined Benefit Plan –
Retirement Gratuity
A provision has been made in
the accounts for retiring gratuity
from the first year of service of an
employee in conformity with the
Sri Lanka Accounting Standard
- 16 (Revised 2006) “Employee
Benefits”.
Gratuity provision for employees
are made based on an actuarial
valuation which is carried out
once in every two years by
an independent valuer as
recommended by the relevant
Sri Lanka Accounting Standard,
the ‘Projected Unit Credit’ (PUC)
method has been used in this
valuation. However, according to
the Gratuity Act. No. 12 of 1983,
the liability to employee arises
only on completion of five years of
continues service.
The liability is not externally
funded. The retirement benefit
obligation is shown under the
non-current liabilities in the
balance sheet.
5.15 Events After the Balance
Sheet Date
All material post balance sheet
events have been considered
and appropriate adjustments
or disclosures have been made
in the respective notes to the
financial statements.
5.16 Provisions, Contingent Assets
and Contingent Liabilities
Provisions are made for all
obligations existing as at the
balance sheet date when it is
probable that such an obligation
will result in an outflow of
resources and a reliable estimate
can be made of the quantum of
the outflow.
All contingent liabilities are
disclosed as a note to the
financial statements unless the
outflow of resources is remote.
Contingent assets are disclosed,
where inflow of economic benefit
is probable.
5.17 Trade and Other Payables
Trade and Other Payables are
stated at their cost.
INCOME STATEMENT
5.18 Revenue Recognition
Revenue is recognised to the
extent that it is probable that
the economic benefits will
flow to the Company and the
revenue and associated costs
incurred or to be incurred can
be reliably measured. Revenue
is measured at the fair value of
the consideration received or
receivable net of trade discounts
and sales taxes. The following
specific criteria are used for
the purpose of recognition of
revenue.
(a) Sale of Apartments
Revenue has been recognised on
apartment sales of ‘The Emperor’
up to the maximum of percentage
completion or cash paid by the
buyer whichever is lower.
(b) Income from Hotel/Restaurants
Revenue is recognised on the
rooms occupied on daily basis
and food and beverages and
hotel related sales are accounted
for at the time of sale.
(c) Interest
Interest income is recognised on
an accrual basis.
(d) Rental Income
Rental income is recognised on
an accrual basis.
(e) Dividend Income
Dividend income is recognised on
a cash basis.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
78
(f) Other Gains and Losses
Net gains and losses of a
revenue nature arising from the
disposal of property, plant and
equipment and other non-current
assets, including investments,
are accounted for in the income
statement, after deducting from
the proceeds on disposal, the
carrying amount of such assets
and the related selling expenses.
(g) Other Income
Other income is recognised on an
accrual basis.
5.19 Expenditure Recognition
Expenses are recognised in
the income statement on the
basis of a direct association
between the cost incurred and
the earning of specific items of
income. All expenditure incurred
in the running of the business
and in maintaining the property,
plant and equipment in a state of
efficiency has been charged to
the income statement.
For the purpose of presentation
of the income statement, the
“function of expenses” method
has been adopted, on the basis
that it presents fairly the elements
of the Company’s and Group’s
performance.
(a) Borrowing Costs
Borrowing costs are recognised
as an expense in the period in
which they are incurred, unless
they are incurred in respect of
qualifying assets in which case it
is capitalised.
(b) Guaranteed Rental
Losses if any, of guaranteed
rentals will be accounted for in
the year in which they occur. A
provision is recognised if the best
estimate indicates a loss.

5.20 Segment Information
Segment information has been
prepared in conformity with the
accounting policies adopted for
preparing and presenting the
consolidated financial statements
of the Group.
6. CASH FLOW STATEMENT
Cash flow statement has been
prepared using the indirect
method. Interest paid / received is
classified as operating cash flows
for the purpose of presentation of
the cash flow statement.
7. NEW ACCOUNTING
STANDARDS ISSUED BUT
NOT EFFECTIVE AS AT
BALANCE SHEET DATE
The Institute of Chartered
Accountants of Sri Lanka has
issued a new volume of Sri Lanka
Accounting Standards which will
become applicable for financial
periods beginning on or after 01st
January 2012. Accordingly these
standards have not been applied
in preparing these financial
statements as they were not
effective for the year ended 31st
March 2012.
These Sri Lanka Accounting
standards comprise accounting
standards prefixed both SLFRS
(Corresponding IFRS) and LKAS
(Corresponding IAS). Application
of Sri Lanka Accounting
Standards prefixed SLFRS and
LKAS for the first time shall be
deemed to be an adoption of
SLFRSs.
The Company has assessed
the potential effects of these
standards on its financial
statements and the impact on
the adoption of these standards
and the management is of the
view that the impact will not be
significant.
7.1 Ruling on deferring the
application of IFRIC
15-Agreement for
Construction of Real Estates
The institute of Chartered
Accountants of Sri Lanka has
granted an option for entities to
defer the application of IFRIC
15 which requires an entity to
recognise revenue only on sale
of apartments, until the five
steps model comes into effect
- (Revenue from Contracts with
Customer).
As a result Company will continue
to adopt the current revenue
recognition policy for apartments
as disclosed in Note 5.18 (a).
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[ notes to the financial statements contd.... ]
8. PROPERTY, PLANT AND EQUIPMENT
GROUP Freehold Buildings Plant & Base F F & E Motor Capital Total Total
Land Machinery Stock & Vehicles Work In 2012 2011
Circulating Progress
Assets
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Cost or Valuation
At the Beginning of the Year 3,855,240 6,445,049 1,088,160 1,115,689 1,365,565 21,275 20,692 13,911,670 13,474,838
Additions - 14,801 32,847 95,818 130,092 10,169 295,583 579,310 581,785
Disposals - (81) (17,941) (122,220) (54,843) (2,219) - (197,304) (126,878)
De-recognition of Assets on
Refurbishments (Note 8 b) - (25,486) - (564) (736) - (26,786) (18,074)
Transfers / Adjustments - 139,161 12,810 20,966 71,004 51,798 (295,739) - -
At the End of the Year 3,855,240 6,573,444 1,115,876 1,109,689 1,511,082 81,023 20,536 14,266,890 13,911,670
Accumulated Depreciation
At the Beginning of the Year - 297,262 629,273 520,618 599,354 17,365 - 2,063,872 1,822,961
Charge for the Year - 109,309 39,247 127,939 96,864 2,762 - 376,121 345,711
Disposals - (6) (17,866) (116,644) (40,195) (2,219) - (176,930) (103,536)
De-recognition of Assets on
Refurbishments (Note 8 b) - (412) - (288) (510) - - (1,210) (1,264)
Transfers / Adjustments - - 3,579 (470) (3,109) - - - -
At the End of the Year - 406,153 654,233 531,155 652,404 17,908 - 2,261,853 2,063,872
Carrying Value
As at 31st March, 2012 3,855,240 6,167,291 461,643 578,534 858,678 63,115 20,536 12,005,037 -
As at 31st March, 2011 3,855,240 6,147,787 458,887 595,071 766,211 3,910 20,692 - 11,847,798
(Note-8 a)
Freehold Land and Buildings of Asian Hotels and Properties PLC (Group) were valued by M/s. A.Y. Daniel & Son, an independent
Certified Valuer as at 31st March 2008, and the book values were written up to correspond with the valuation. Valuation Method -
Contractor (Cost) Summation Basis.
Had the revalued Buildings (Group) been included at cost, the carrying value of the said asset would amount to Rs. 4,368 Mn.
(Rs. 4,290 Mn in 2011) Had the revalued Land (Group) been included at cost, the carrying value of the said asset would amount
to Rs. 470 Mn. (Rs. 470 Mn in 2011).
(Note-8 b)
During the year as part of refurbishment assets amounting to Rs. 25.5 Mn (Rs. 16.8 Mn in 2011) were de-recognised by the
Subsidiary. Rs. 7.3 Mn (Rs. 4.6 Mn in 2011) of the said write off was charged against the related revaluation reserve, and
remaining Rs. 18.2 Mn (Rs. 11.8 Mn in 2011) was charged to the Income Statement under Other Operating Expenses. The value
of the assets de-recognised was estimated by an Independent Valuer.
(Note-8 c)
Details of Groups’ Land and Building stated at valuation are indicated below
Property Land /Building Extent Location
Free hold Land and Building
Company Land 1 A08 - R0- P05.08 No 77, Galle Road, Colombo 03
Building- Stage(1) 348,818 Sq Ft No 77, Galle Road, Colombo 03
Building- Stage (11) & (111) 299,975 Sq Ft No 77, Galle Road, Colombo 03
Investment Properties
Company Building 1 145,196 Sq Ft No 89, Galle Road, Colombo 03
Subsidiary Building 1 55,548 Sq Ft No. 117, Sir Chittampalam A.
Gardiner Mawatha, Colombo 02.
Land A01 - R02- P30.0 No. 117, Sir Chittampalam A.
Gardiner Mawatha, Colombo 02.
Lease hold Properties
Subsidiary Building 1 316,067 Sq Ft No. 115, Sir Chittampalam A.
Gardiner Mawatha, Colombo 02.
Land A05 - R02- P34.28 No. 115, Sir Chittampalam A.
Gardiner Mawatha, Colombo 02.
(Note-8 d)
The Vessel of floating restaurant of the Subsidiary has been classified under Motor Vehicles.
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80

8. PROPERTY, PLANT AND EQUIPMENT
COMPANY Freehold Buildings Plant & Base F F & E Motor Capital Total Total
Land Machinery Stock & Vehicles Work In 2012 2011
Circulating Progress
Assets
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Cost or Valuation
At the Beginning of the Year 3,855,240 4,545,123 694,944 369,659 852,889 13,182 - 10,331,037 10,036,105
Additions - 11,976 17,229 59,349 96,698 10,169 18,469 213,890 353,916
Disposals - (81) (17,941) (14,877) (41,592) (2,219) - (76,710) (58,984)
Transfers / Adjustments - 2,603 5,965 73 (5,965) (2,676) - -
At the End of the Year 3,855,240 4,559,621 700,197 414,204 902,030 21,132 15,793 10,468,217 10,331,037
Accumulated Depreciation
At the Beginning of the Year - 230,158 426,020 141,511 335,260 11,870 - 1,144,819 985,712
Charge for the year 79,391 24,108 55,106 65,308 471 - 224,384 210,506
Disposals - (6) (17,866) (9,739) (31,195) (2,219) - (61,025) (51,399)
Transfers / Adjustments - - 3,579 - (3,579) - - - -
At the End of the Year - 309,543 435,841 186,878 365,794 10,122 - 1,308,178 1,144,819
Carrying Value
As at 31st March, 2012 3,855,240 4,250,078 264,356 227,326 536,236 11,010 15,793 9,160,039 -
As at 31st March, 2011 3,855,240 4,314,965 268,924 228,148 517,629 1,312 - - 9,186,218
(Note-8 a)
Freehold Land and Buildings of Asian Hotels and Properties PLC were valued by M/s. A.Y.Daniel & Son, an independent Certified
Valuer as at 31st March 2008, and the book values were written up to correspond with the valuation. Valuation Method -
Contractor (Cost) Summation Basis.
Had the revalued Buildings been included at cost, the carrying value of the said asset would amount to Rs. 3,183 Mn. (Rs. 3,215
Mn in 2011) Had the revalued Land been included at cost, the carrying value of the said asset would amount to Rs.470 Mn.
(Rs.470 Mn in 2011)
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
9 LEASEHOLD PROPERTY
Cost/Valuation
Balance as at 1st April 945,161 945,161 - -
Balance as at 31st March 945,161 945,161 - -
Accumulated Amortisation
Balance as at 1st April 89,285 76,881 - -
Charge for the Year 12,404 12,404 - -
Balance as at 31st March 101,689 89,285 - -
Written Down Value as at 31st March 843,472 855,876 - -
The leasehold property is amortised on a straight line basis over 74 years. The remaining period of lease as at 31st March 2012
was 68 years.
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[ notes to the financial statements contd.... ]
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
10 INVESTMENT PROPERTY
At the Beginning of the Year 2,701,972 2,255,476 1,332,280 1,115,460
Additions 92,749 1,732 92,749 1,732
Change in Fair Value During the Year 306,819 444,764 206,971 215,088
At the End of the Year 3,101,540 2,701,972 1,632,000 1,332,280
In order to adopt the Fair Value model on Investment Property, as per Sri Lanka Accounting Standard 40 “Investment Property”
the Land & Building classified as Investment Property of Asian Hotels and Properties PLC including Crescat Boulevard were
valued by Mr.P.B.Kalugalagedera, a Chartered Valuation Surveyor using investment method of valuation on 01st of April 2005
(date of adoption of the Standard), 31st March 2006, 31st March 2007, 31st March 2009, 31st March 2011 and 31st March 2012
respectively.
The Commercial Centre of Trans Asia Hotels PLC was valued by Messrs. A.Y.Daniel and Sons, a Professional Valuer using
accredited contractor (cost) method of valuation on 1st April 2005, 31st March 2006, 31st March 2009 respectively.
The Commercial Centre of Trans Asia Hotels PLC was valued by Mr.P.B.Kalugalagedera, a Chartered Valuation Surveyor using the
Market Value Method on 31st March 2011 and 31st March 2012 respectively.
The valuation of the Investment property of the Trans Asia Hotels PLC has obtained and confirmed that there has been a
substantial increase in value of property as at 31st March 2012 and hence the market value of the asset has been increased to
reflect the market value of Rs. 1,469.5 Mn (Rs. 1,369.7 Mn in 2011)
Rental Income earned from Investment Property by the Company and Group amounted to Rs. 218Mn (2011 Rs.188 Mn) and
Rs. 274 Mn (2011 Rs.245 Mn) respectively. Direct Operating Expenses incurred by the Company and Group amounted to
Rs. 68 Mn (2011 Rs.60 Mn) and Rs. 74Mn (2011 Rs. 66 Mn) respectively.
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
11 INTANGIBLE ASSETS
Computer Software
Cost
At the Beginning of the Year 30,000 53,180 7,715 38,341
Additions 1,218 7,493 721 47
Disposals - (30,673) - (30,673)
At the End of the Year 31,218 30,000 8,436 7,715
Accumulated Depreciation
At the Beginning of the Year 13,317 38,953 5,896 35,633
Charge for the Year 5,711 5,037 1,167 936
Disposals - (30,673) - (30,673)
At the End of the Year 19,028 13,317 7,063 5,896
Carrying Value As at 31st March 12,190 16,683 1,373 1,819
12 INVESTMENTS IN SUBSIDIARY
No of Holding
Shares %
Trans Asia Hotels PLC- at cost
(Quoted) 86,823,028 43.41 - - 660,045 660,045
Investment at the End of the Year - - 660,045 660,045
Market Value of the above number of shares of Trans Asia Hotels PLC (Quoted Investment ) was Rs. 5,808 Mn (2011 - Rs.8,500 Mn)
as at the Balance Sheet date.
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82

GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
13 WORK-IN-PROGRESS - APARTMENTS
At the Beginning of the Year - 596,156 - 596,156
Incurred During the Year - 2,311,022 - 2,311,022
Transferred to Cost of Sales - (1,553,374) - (1,553,374)
Amount at the End of the Year - 1,353,804 - 1,353,804
Transferred to Current Assets (Note 13.1) - (1,353,804) - (1,353,804)
- - - -
13.1 WORK-IN-PROGRESS - COST OF APARTMENTS
- CURRENT ASSETS
At the Beginning of the Year 1,353,804 - 1,353,804 -
Incurred During the Year 576,720 - 576,720 -
Transferred to Cost of Sales (1,866,132) - (1,866,132) -
Transferred from Non-Current Assets - 1,353,804 - 1,353,804
Amount at the End of the Year 64,392 1,353,804 64,392 1,353,804
During the year the Company completed its Apartment project and accordingly there was no WIP - Apartments on at Balance
Sheet date. The completed Apartments which remained unsold have been reported under Note 13.1.
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
14 LONG TERM INVESTMENTS
Sri Lanka Hotel & Tourism 100 100 100 100
(-) Fall in value of the Investment (100) (100) (100) (100)
- - - -
The Company has fully provided for the above investment during the year 2009/2010 due to the non recoverability of the same.
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
15 OTHER NON CURRENT ASSETS
15.1 Loans to Executives
At the Beginning of the Year 32,312 19,532 32,312 19,532
Loans Granted During the Year 13,172 20,274 13,172 20,274
Loans Recovered During the Year (8,126) (7,494) (8,126) (7,494)
At the End of the Year 37,358 32,312 37,358 32,312
Receivable within One Year (24,896) (8,447) (24,896) (8,447)
Receivable after One Year 12,462 23,865 12,462 23,865
15.2 Insurance Claim Receivable
Transferred from other receivables 35,000 - - -
Impairment during the year (6,074) - - -
At the End of the Year 28,926 - - -
Total Other Non Current Assets 41,388 23,865 12,462 23,865
As Settlement of the claim made by the Trans Asia Hotels PLC from National Insurance Trust Fund (NITF) has been delayed for
various reasons, Subsidiary has pursued legal action. Management is of the view that within the next 2 years the claim will be
recovered. Accordingly an impairment provision amounting to Rs. 6.07 Mn has been made in the financial statement for the year
ended 31st March 2012 to reflect the loss on time value for money and said the receivable has been classified under Non-current
assets in the financial statements.
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[ notes to the financial statements contd.... ]
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
16 INVENTORIES
Food & Beverage 63,627 70,729 41,388 47,430
General 10,552 15,631 7,497 10,858
Diesel/ Furnace/ Gas Stock 12,874 10,064 8,916 6,596
Engineering Stock 28,799 26,322 15,770 14,576
115,852 122,746 73,571 79,460
17 TRADE & OTHER RECEIVABLES
Trade Receivables 494,683 353,534 270,293 215,420
Other Receivables 271,101 337,210 192,641 158,624
765,784 690,744 462,934 374,044
Less- Provision for Doubtful Debts (Note 17.1) (10,698) (4,375) (9,143) (3,089)
755,086 686,369 453,791 370,955
17.1 Provision for Doubtful Debts
At the Beginning of the Year 4,375 3,526 3,089 3,362
(Over)/Under Provision for the Year 6,454 849 6,185 (273)
Written off During the Year (131) - (131) -
At the End of the Year 10,698 4,375 9,143 3,089
18 RELATED PARTY TRANSACTIONS
18.1 Amounts Due from Related Parties
Parent - John Keells Holdings PLC (JKH) 2,778 833 2,567 652
Subsidiary - Trans Asia Hotels PLC - - 1 57
Companies under Common Control of JKH PLC 43,851 47,003 25,659 29,320
46,629 47,836 28,227 30,029
18.2 Amounts Due to Related Parties
Parent - John Keells Holdings PLC (JKH PLC) 5,902 4,985 3,219 2,887
Subsidiary - Trans Asia Hotels PLC - - 205 180
Companies under Common Control of JKH PLC 78,412 77,375 53,268 61,208
84,314 82,360 56,692 64,275
19 SHORT TERM INVESTMENTS
Investments in Repo / Treasury Bonds 19,700 7,000 19,700 7,000
Fixed and Call Deposits 2,743,509 310,921 2,391,509 35,921
2,763,209 317,921 2,411,209 42,921
Short term investments as at 31 March 2012, includes Rs. 1.5 Bn, placed with Nations Trust Bank PLC, an associate of John
Keells Holdings PLC, the parent company of Asian Hotels and Properties PLC.
20 STATED CAPITAL
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Number of Value of Number of Value of Number of Value of Number of Value of
Shares in Shares in Shares in Shares in Shares in Shares in Shares in Shares in
‘000 Rs. ‘000 ‘000 Rs. ‘000 ‘000 Rs. ‘000 ‘000 Rs. ‘000
442,775 3,345,117 221,388 3,345,117 442,775 3,345,117 221,388 3,345,117
At an Extraordinary General Meeting held on 27th June 2011, the share holders approved a sub division of each of its shares
into two (2) ordinary shares, thereby increasing the ordinary shares in issue from 221,387,650 to 442,775,300 ordinary shares.
This sub division was effective from 01st July 2011.
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84

GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
21 CAPITAL RESERVES - REVALUATION RESERVE
At the Beginning of the Year 5,179,592 5,233,818 4,791,408 4,834,140
Transferred to Revenue Reserve (33,215) (56,052) (18,458) (42,732)
Transferred from Deferred Tax - 3,838 - -
De-recognition of Assets on Refurbishments (3,184) (2,012) - -
At the End of the Year 5,143,193 5,179,592 4,772,950 4,791,408
21.1 The Revaluation Reserve relates to revaluation of buildings and comprises the cumulative increase in the fair value of the
property at the date of revaluation and related adjustments, after transferring the surplus realised to the retained earnings.
This could be utilised for the purpose of future issue of shares, excluding Rs. 41.70 Mn which relates to the revaluation of
the land allocated for the apartments. The said amount will be transferred to retained earnings at the time the title of the
property is transferred to the apartment owners. (The amount transferred to retained earnings during the year is 18.46 Mn.
(2011 - Rs. 42.73 Mn)
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
22 REVENUE RESERVES
General Reserve (Note 22.1) 85,000 85,000 85,000 85,000
Retained Earnings 6,407,754 5,109,517 5,162,198 4,022,205
6,492,754 5,194,517 5,247,198 4,107,205
22.1 General Reserve represents amounts set aside from profits by the Directors from 31st March 1980 to 31st March 1984.
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
23 INTEREST BEARING BORROWINGS
Commercial Bank
At the Beginning of the Year - 247,886 - 247,886
Repayments During the Year - (247,886) (247,886)
At the End of the Year - - - -
Hatton National Bank
At the Beginning of the Year - 362,980 - 362,980
Repayments During the Year - (362,980) (362,980)
At the End of the Year - - - -
Finance Lease Obligations
At the Beginning of the Year 5,725 7,161 - -
Obtained During the Year - - - -
Repayments During the Year (1,436) (1,436) - -
4,289 5,725 - -
Transferred to Current Liabilities(Note 23.1) (1,437) (1,437) - -
At the End of the Year (Note 23.3) 2,852 4,288 - -
Total Non Current Interest Bearing Borrowings (Note 23.2) 2,852 4,288 - -
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[ notes to the financial statements contd.... ]
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
23.1 Current Portion of Borrowings included
in Current Liabilities
Long Term Loans - - - -
Finance Lease Obligations 1,437 1,437 - -
1,437 1,437 - -
23.2 Non Current portion of Borrowings included
under Non Current Liabilities
Long Term Loans - - - -
Finance Lease Obligations 2,852 4,288 - -
2,852 4,288 - -
23.3 Lease Installments Payable After One Year
Payable After One Year Before 5 Years 2,852 4,288 - -
Payable After 5 Years - - - -
2,852 4,288 - -
24 EMPLOYEE BENEFITS
Provision for Retiring Gratuity
At the Beginning of the Year 175,448 152,384 86,149 78,012
Provision made During the Year 19,185 23,483 11,508 8,901
Interest Cost 17,545 15,239 8,615 7,801
(Gain)/Loss Arising from Changes in the Assumptions or
Due to (Over) / Under Provision in the Previous Years 8,484 1,119 7,515 579
Payments During the Year (12,294) (16,777) (4,564) (9,144)
Transfers 328 - 328 -
At the End of the Year 208,696 175,448 109,551 86,149
The Employee Benefit Liability of the Company and the Group is based on the actuarial valuation carried out as at 31st March
2012 by Mr. M. Poopalanathan, AIA, Messrs. Actuarial & Management Consultants (Pvt) Ltd., a firm of professional actuaries. The
principal assumptions used in determining the cost of employee benefits were:
Discount Rate 10%
Future Salary Increases 10%
GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
25 DEFERRED TAXATION
At the Beginning of the Year 248,354 302,848 - -
Charge / (Reversal) 7,439 (45,655) - -
Adjustment on Revaluation - (8,839) - -
At the End of the year 255,793 248,354 - -
In accordance with the BOI agreement dated 11th March 1994 the profits and income of the Company are exempt from taxation
until year 2014, and at the expiry of said period the following options are available for the Company.
(a) Income tax payable for the year of assessment shall be computed at 2% of the Turnover of the Company or;
(b) The provisions of the Inland Revenue Laws for the time being imposed shall apply.
In the event the Company elects option (a) no Deferred Tax liability will arise even after the expiry of the tax exemption period.
The Company needs to make the election only 90 days prior to the expiration of the said tax exemption period after evaluating
all tax implications prevailing at that time. Therefore, no provision has been made in the Financial Statement by the Company
for Deferred Tax liability which could arise after the tax exemption period in the event the Company elects option (b).
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GROUP COMPANY
As at 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
26 TRADE & OTHER PAYABLES
Deposits from Apartments / Shops 58,330 184,322 58,330 184,322
Payable to Contractors 7,575 3,143 7,575 3,143
Retention on Construction 112,153 173,295 112,153 173,295
Creditors & Accrued Expenses 468,808 426,481 302,027 279,985
Deposits & Other Payables 284,937 185,253 150,671 80,946
931,803 972,494 630,756 721,691
GROUP COMPANY
For the year ended 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
27 REVENUE
Gross Revenue 9,686,364 8,181,064 6,995,985 5,923,518
Value Added Tax (825,191) (723,739) (516,223) (438,049)
Net Revenue 8,861,173 7,457,325 6,479,762 5,485,469
As explained in Note 13.1, the Company has completed its apartments project during the year. Accordingly there will be no
revenue generated from the said project except for the sale of the remaining apartments.
28 DIVIDEND INCOME
Income from Subsidiary (Trans Asia Hotels PLC) - - 117,211 39,070
29 OTHER INCOME
Interest Income 85,796 33,783 71,225 21,496
Exchange Gain 46,929 12,257 45,777 12,257
Profit/(Loss) on Disposal of Property, Plant
& Equipment 943 6,077 (6,070) 1,639
Car Park Income 11,827 10,500 11,827 10,500
Promotional Income 15,874 13,713 15,874 13,713
Taxi Line Commission 8,662 8,125 8,662 8,125
Sundry Income 15,758 18,755 13,697 16,131
185,789 103,210 160,992 83,861
30 FINANCE EXPENSES
Interest on Loans 84 39,829 84 39,829
Overdraft Interest 12,654 4,018 12,631 3,919
12,738 43,847 12,715 43,748
31 PROFIT BEFORE TAX
Profit Before Tax is stated after charging all expenses
including the following
Remuneration to Executive Directors 45,731 29,350 44,411 28,270
Remuneration to Non Executive Directors 3,080 2,700 1,320 1,260
Remuneration to Auditors
Audit Services - Fee 1,265 1,150 825 750
Audit Related Services- Fee 420 455 265 310
Non Audit Services - Fee - 1,550 - 900
Costs of Defined Employee Benefits
Gratuity Charge and Related Costs 45,214 39,841 27,638 17,281
Defined Contribution Plan Cost - EPF and ETF 101,053 86,999 68,031 56,135
Staff Expenses 1,137,933 965,133 742,836 610,357
Depreciation 376,121 345,711 224,384 210,506
Amortisation of Leasehold Properties 12,404 12,404 - -
Donations 10,599 4,846 6,895 2,662
De-recognition of Assets on Refurbishments 18,151 11,840 - -
Amortisation of Intangible Assets 5,711 5,037 1,167 936
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[ notes to the financial statements contd.... ]
GROUP COMPANY
For the year ended 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
32 INCOME TAX EXPENSE
Provision for Current Tax (Note 32.1) 131,591 77,687 20,858 6,218
Provision / Reversal for Deferred Tax (Note 32.2) 7,439 (45,655) - -
10% Withholding Tax on Inter Company
Dividends 13,023 4,340 - -
152,053 36,372 20,858 6,218
The Profits of Trans Asia Hotels PLC, being involved in the promotion of tourism has been taxed on its adjusted profit at 12%
in terms of the amended Inland Revenue Act Number 22 of 2011. Income Tax on other income has been provided at the normal
tax rate of 28% (2011 - 35%).
Income tax of Asian Hotels and Properties PLC (Company) on other income has been provided at the normal tax rate of 28%
(2011 -35%).
GROUP COMPANY
For the year ended 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
32.1 Reconciliation between Income Tax Expense and
the Product of Accounting Profit
Profit Before Tax 2,659,453 2,184,258 2,027,943 1,537,742
Aggregate Accounting Profit 2,659,453 2,184,258 2,027,943 1,537,742
Exempt Profits (1,953,661) (1,520,485) (1,953,450) (1,520,240)
Accounting Profit Liable to Income Tax 705,792 663,773 74,493 17,502
Income Tax on Accounting Profit at Applicable Rates 120,086 113,567 20,858 6,126
Tax Effect on Aggregate Disallowed Expenses (7,903) (31,065) - -
Tax Effect on Aggregate Allowable Deductions - 217 - -
Tax effect on Investment Property Revaluation - 1,860 - -
Qualifying Payment Relief (172) (215) - -
Tax effect on Rate Differentials - (52,785) - -
Social Responsibility Levy at the Rate of 1.5% (2011 - 1.5%) - 1,148 - 92
Tax effect of Revaluation on Buildings Derecognised (847) (695) - -
Tax effect of adjustment to opening Deferred Tax liability (4) - - -
Tax on Inter Company Dividends 13,023 4,340 - -
Adjustments on Prior years 27,870 - - -
Total Income Tax Expense 152,053 36,372 20,858 6,218
Income Tax charged at
Standard Rate of 28% - CSE Listed Companies (2011 - 35%) 37,320 14,247 20,858 6,126
Concessionary Rate of 12% (2011 - 15%) 66,401 62,292 - -
Social Responsibility Levy at the Rate of 1.5% (2011 - 1.5%) - 1,148 - 92
Adjustments on Prior years 27,870 - - -
Current Tax 131,591 77,687 20,858 6,218
32.2 Deferred Tax Expense
Deferred Tax arising from
Accelerated Depreciation for tax purposes 8,621 (46,095) - -
Post-Employment Medical Benefits (1,182) 440 - -
Total Deferred Tax Charge / Reversal 7,439 (45,655) - -
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
88

33 EARNINGS PER SHARE
The Basic Earnings per Ordinary Share is based on the profit attributable to Asian Hotels and Properties PLC and for the purpose
of calculating Earnings Per Share, the increased number of ordinary shares of 442,775,300 has been considered.
GROUP COMPANY
For the year ended 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
Net Profit for the Year 2,150,572 1,774,521 2,007,085 1,531,524
Number of Ordinary Shares 442,775 442,775 442,775 442,775
Basic Earnings per Ordinary Share (Rs.) 4.86 4.01 4.53 3.46
34 DIVIDEND PER SHARE
Final Dividend Paid - 2009/2010 - 221,388 - 221,388
Final Dividend Paid - 2010/2011 442,775 - 442,775 -
Interim Dividend - 2011/2012 442,775 - 442,775 -
Total Dividends 885,550 221,388 885,550 221,388
Dividend Per Share (Rs.) 2.00 0.50 2.00 0.50
35 RELATED PARTY TRANSACTIONS
The Company carries out transactions in the ordinary course of its business with parties who are defined as related parties
in SLAS 30 Related Party Disclosure (Revised 2005), the details of which are reported below. The pricing applicable to such
transactions is based on the assessment of risk and pricing model of the Company and comparable with what is applied to
transactions between the Company and its unrelated customers.
35.1 TRANSACTIONS WITH PARENT COMPANY
The Company’s parent is John Keells Holdings PLC
GROUP COMPANY
For the year ended 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
Rendering /(Receiving) of Services (32,568) (31,896) (19,201) (17,875)
35.2 TRANSACTIONS WITH SUBSIDIARY COMPANY
Trans Asia Hotels PLC
Rendering /(Receiving) of services - - 15,632 1,530
35.3 TRANSACTIONS WITH COMPANIES UNDER
COMMON CONTROL OF JKH PLC
(Purchase) / Sale of Goods (61,702) (100,598) (37,912) (78,643)
Rendering /(Receiving) of services (178,006) (192,089) (48,706) (86,552)
Loans Given / (Taken) - - - -
Interest Received / (Paid) - - - -
35.4 TRANSACTION WITH KEY MANAGEMENT
PERSONNEL (KMP) OF THE COMPANY
According to SLAS 30 (Revised 2005) Related Party Disclosure “Key Management Personnel” are those having authority and
responsibility for planning and controlling activities of the entity. Accordingly, the Directors of the Company (including executives
and non executive Directors) and their immediate family members have been classified as KMP of the Company.
As the John Keells Holdings PLC is the Parent of the Company and the Board of Directors of the Parent Company have the
authority and responsibility of planning, directing and controlling the activities of the Company, the Directors of the parent
Company and their immediate family member have also been identified as Key Management Personnel of the Company.
Immediate family member is defined as spouse or dependant. A dependant is defined as anyone who depends on the respective
Director for more than 50% of his /her financial needs.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
89

[ notes to the financial statements contd.... ]
GROUP COMPANY
For the year ended 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
Rendering /(Receiving) of Services 3,103 1,407 2,896 1,013
GROUP COMPANY
For the year ended 31st March 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000
Compensation of Key Management Personnel
Short Term Employee Benefits 48,811 32,050 45,731 29,530
48,811 32,050 45,731 29,530
HOTELS PROPERTY GROUP
Total
For the year ended 31st March 2012 2011 2012 2011 2012 2011
Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000
36 SEGMENT INFORMATION
Segment Revenue 6,129,793 4,931,616 2,731,380 2,525,709 8,861,173 7,457,325
Segment Operating Profits Before
Finance Expenses 1,904,483 1,180,107 578,100 642,304 2,482,583 1,822,411
Inter Company Dividends (117,211) (39,070) - - (117,211) (39,070)
Finance Expenses (107) (39,928) (12,631) (3,919) (12,738) (43,847)
Change in Fair Value of Investment
Properties
Company - - 206,971 215,088 206,971 215,088
Commercial Centre of Subsidiary - - 99,848 229,676 99,848 229,676
Profit Before Taxation 1,787,165 1,101,109 872,288 1,083,149 2,659,453 2,184,258
Income Tax Expense (128,645) (28,085) (10,385) (3,947) (139,030) (32,032)
Eliminations (13,023) (4,340) - - (13,023) (4,340)
Profit After Taxation 1,645,497 1,068,684 861,903 1,079,202 2,507,400 2,147,886
Minority Interest - - - - (356,828) (373,365)
Net Profit for the Year 1,645,497 1,068,684 861,903 1,079,202 2,150,572 1,774,521
ASSETS
Segment Assets 14,336,608 13,240,955 7,840,519 6,588,505 22,177,127 19,829,460
Eliminations - - - - (2,123,168) (1,678,240)
Total Assets 14,336,608 13,240,955 7,840,519 6,588,505 20,053,959 18,151,220
LIABILITIES
Segment Liabilities 3,136,985 3,113,914 829,621 516,987 3,966,606 3,630,901
Eliminations/Adjustments - - - - (1,860,548) (1,982,837)
Total Liabilities 3,136,985 3,113,914 829,621 516,987 2,106,058 1,648,064
OTHERS
Purchase / Transfers and Construction of
Property, Plant and Equipment 569,380 579,952 9,930 1,833 579,310 581,785
Depreciation / Amortisation 368,605 349,971 19,920 8,144 388,525 358,115
Gratuity Charge and Related Costs 41,278 36,244 3,936 3,597 45,214 39,841
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
90

37 CONTINGENT LIABILITIES
There were no material contingent liabilities existing as at balance sheet date.
38 CAPITAL COMMITMENTS
The Asian Hotels and Properties PLC Group had capital Expenditure contracted for Rs. 50.6 Mn as at 31st March 2012, which
were not provided for in the consolidated financial statements.
39 EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE
Other than the contingent liabilities and commitments referred to in Note 37 & 38 to the Financial Statements, there have been no
events subsequent to the Balance Sheet date which would have any material effect on the Company or on the Group.
The Board of Directors of the Company has declared a final Dividend of Rs. 3/- per share for the financial year ended 31st March
2012.
As required by Section 56 (2) of the Companies Act No. 7 of 2007, the Board of Directors have confirmed that the Company
satisfies the Solvency test in accordance with Section 57 of the Companies Act No. 7 of 2007, and have obtained a certificate
from Auditors, prior to declaring a final dividend.
In accordance with Sri Lanka Accounting Standard 12 (revised), Events after Balance Sheet date, the proposed Final Dividend
has not been recognised as a liability in the Financial Statements as at 31st March 2012.
40 DIRECTORS’ RESPONSIBILITY STATEMENT
The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Please refer to the page
65 for the Statement of Directors Responsibility for Financial Reporting.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
91

[ consolidated value added statement ]
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
2012 % 2011 %
In Rs. ‘000
Revenue 8,861,173 7,457,325
Adjustment for other Income 185,789 103,210
9,046,962 7,560,535
Less : Cost of Materials & Services
purchased from external sources 3,550,321 3,078,160
Value Added 5,496,641 4,482,375
Distributed as follows:
To Employees as Remuneration 1,284,200 23 1,091,973 24
To the Government as Taxes 873,407 16 626,533 14
To the Providers of Capital
as Interest on Loans 12,738 1 43,847 1
as Minority Interest 356,828 6 373,365 8
To Shareholders as Dividends 442,775 8 221,388 5
Retained within the business
as Depreciation 376,121 7 350,748 8
as Reserves 2,150,572 39 1,774,521 40
Basic Earnings per Ordinary Share (Rs.) 5,496,641 100 4,482,375 100
39%
Distribution of
Value Added
20011/2012
7%
8%
To Employees as Remuneration
To the Government as Taxes
As Interest on Loans
As Minority Interest
To Shareholders as Dividends
As Depreciation
As Reserves
23%
1%
6%
16%
40%
92
Distribution of
Value Added
20010/2011
8%
5%
8%
24%
1%
To Employees as Remuneration
To the Government as Taxes
As Interest on Loans
As Minority Interest
To Shareholders as Dividends
As Depreciation
As Reserves
14%

[ information to shareholders & investors ]
STOCK EXCHANGE LISTING
The Issued ordinary shares of Asian Hotels and Properties PLC are listed with the Colombo Stock Exchange of Sri Lanka. The
Audited Financial Statements of the Company and the Consolidated Financial Statements for the year ended 31st March 2012
have been submitted to the Colombo Stock Exchange.
DISTRIBUTION OF SHAREHOLDINGS
31.03.2012 31.03.2011
From To Number Percentage Number Percentage
of Share Total Share of Share of Share Total Share of Share
Holders Holdings Holdings Holders Holdings Holdings
1 - 1,000 2,159 670,085 0.1 2,573 726,466 0.3
1,001 - 10,000 816 2,918,703 0.7 577 2,033,911 1.0
10,001 - 100,000 193 5,592,386 1.3 134 4,122,243 1.9
100,001 - 1,000,000 32 8,822,525 2.0 27 8,940,778 4.0
1,000,001 and above 17 424,771,601 95.9 13 205,564,252 92.8
3,217 442,775,300 100.0 3,324 221,387,650 100.0
Rs.
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0
Rs.
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0
2007/08
Earnings per Share
2008/09
2009/10
2010/11
2011/12
Net Asset Value per Share
2007/08
2008/09
2009/10
2010/11
2011/12
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
Rs.
2.50
2.25
2.00
1.50
1.25
1.00
0.50
0.25
0
Rs.
200.00
175.00
150.00
125.00
100.00
75.00
50.00
25.00
0
93
2007/08
2007/08
Dividend per Share
2008/09
2009/10
2010/11
Market Price per Share
2008/09
2009/10
2010/11
2011/12
2011/12

[ information to shareholders & investors contd.... ]
ANALYSIS OF SHAREHOLDERS
Categories of Shareholders
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
31.03.2012 31.03.2011
Holdings Holdings
Number % Number %
Individual 14,810,661 3.34 8,674,417 3.92
Institutions 427,964,639 96.66 212,713,233 96.08
442,775,300 100.00 221,387,650 100.00
Resident 414,345,159 93.58 205,650,838 92.89
Non Resident 28,430,141 6.42 15,736,812 7.11
442,775,300 100.00 221,387,650 100.00
Public 94,923,108 21.44 47,465,454 21.44
Non Public* 347,852,192 78.56 173,922,196 78.56
442,775,300 100.00 221,387,650 100.00
*Includes shareholdings of Parent Company, Directors & Spouses.
For the Year Ended 31st March 2012 2011
Market Value
Highest Market Price per share Rs. 200.00 210.00
Lowest Market Price per share Rs. 61.00 130.25
Last Traded Market Price per share as at Rs. 78.00 187.90
Dividend Payments
Interim Dividend per Share Rs. 1.00 -
Final Dividend per Share Rs. 2.00 0.50
TOP TWENTY SHAREHOLDERS
As at 31.03.2012 As at 31.03.2011
Share Share
Name Share Holdings Share Holdings
Holdings Percentage Holdings Percentage
John Keells Holdings PLC 347,824,192 78.56 173,912,096 78.56
Employees Provident Fund 18,848,807 4.26 2,058,100 0.93
Sri Lanka Insurance Corporation Ltd-Life Fund 10,055,900 2.27 5,058,500 2.28
Bank of Ceylon A/C Ceybank Unit Trust 9,773,110 2.21 4,568,800 2.06
Fi-Ciblux S/A Batterymarch Global Emerging Market Fund 8,750,000 1.98 4,375,000 1.98
Goldman Sachs & Co S/A Artha Master Fund Ltd. 6,696,512 1.51 3,348,256 1.51
HSBC International Nominees Limited-MSNY-Bay
Pond Partners L.P. 3,580,000 0.81 1,790,000 0.81
Dr. S. Yaddehige 3,415,200 0.77 1,707,600 0.77
Mercantile Investments PLC 3,000,000 0.68 3,889,000 1.76
Bank of Ceylon-No. 2 A/C 2,583,400 0.58 1,291,700 0.58
Bank of Ceylon-No. 1 Account 2,232,400 0.50 1,117,100 0.50
Mr. M.J. Fernando 2,018,000 0.46 1,009,000 0.46
HSBC International Nominees Limited-MSNY-Bay Pond
Investors (Bermuda) LP 1,724,200 0.39 862,100 0.39
HSBC Intl Nom Ltd-SSBT-USAA Emerging Mkts
Fund A/C No. 02 1,115,200 0.25 557,600 0.25
Bank of Ceylon A/C Ceybank Century Growth Fund 1,090,200 0.25 560,700 0.25
AVIVA NDB Insurance PLC A/C No.07 1,041,600 0.24 648,500 0.29
Employees Trust Fund Board 1,022,880 0.23 576,600 0.26
BNYM SA/NV-Legg Mason Global Funds PLC * 806,300 0.18 NIL NIL
Mr. M. Mannawarajan 650,016 0.15 450,162 0.20
Richard Pieris & Co Ltd - Account No. 01 * 639,400 0.14 NIL NIL
426,867,317 96.41 207,780,814 93.85
* As at 31st March 2011 BNYM SA/NV-Legg Mason Global Funds PLC and Richard Pieris & Co Ltd - Account No. 01 held shares in
slash account as below,
CB New York S/A Legg Mason Global Funds PLC 543,900
Waldock Mackenzie Ltd/Richard Pieris & Company PLC Account No. 01 319,700
94

[ 5 year financial review of the group ]
2012 2011 2010 2009 2008
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Revenue 8,861,173 7,457,325 4,899,671 4,576,094 5,524,643
Profit After Taxation 2,507,400 2,147,886 688,806 622,563 928,076
Share Capital & Reserves
Stated Capital 3,345,117 3,345,117 3,345,117 3,345,117 3,345,117
Reserve on Revaluation 5,143,193 5,179,592 5,233,818 5,310,167 5,429,420
General Reserve 85,000 85,000 85,000 85,000 85,000
Retained Profit 6,407,754 5,109,517 3,500,332 3,242,883 3,281,980
Shareholders’ Funds 14,981,064 13,719,226 12,164,267 11,983,167 12,141,517
Minority Interest 2,966,837 2,783,930 2,464,777 2,441,848 2,402,173
17,947,901 16,503,156 14,629,044 14,425,015 14,543,690
Assets & (Liabilities)
Current Assets 4,050,332 2,705,026 1,766,283 1,804,385 2,391,575
Current Liabilities (1,638,717) (1,219,974) (1,582,940) (1,351,939) (1,433,284)
Net Current Assets 2,411,615 1,485,052 183,343 452,446 958,291
Non Current Assets 16,003,627 15,446,194 15,397,524 15,037,478 15,110,566
Non Current Liabilities (467,341) (428,090) (951,823) (1,064,909) (1,525,167)
17,947,901 16,503,156 14,629,044 14,425,015 14,543,690
Ratio Analysis
Earnings per Share (Rs)* 4.86 4.01 1.42 1.20 1.91
Net Assets per Share (Rs) 33.83 30.98 27.47 27.06 27.42
Current Ratio (Times) 2.47 2.22 1.12 1.33 1.67
Borrowings as a % of Total Assets 0.56% 0.50% 4.05% 4.80% 7.04%
After Tax Return on Net Assets 14.36% 12.93% 5.18% 4.43% 6.98%
Dividend Per Share* 2.00 0.50 1.00 1.50 1.00
P/E Ratio 16.06 46.88 46.22 10.32 10.45
* The increased number of ordinary shares of 442,775,300 has been considered for the previous Year’s comparative figures.
Rs. ‘000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2007/08
Total Revenue
2008/09
2009/10
2010/11
2011/12
Rs. ‘000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2007/08
Profit after Tax
2008/09
2009/10
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
2010/11
95
2011/12
Rs. ‘000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2007/08
Shareholders’ Funds
2008/09
2009/10
2010/11
2011/12

[ 5 year financial summary cinnamon grand hotel ]
2011/12 2010/11 2009/10 2008/09 2007/08
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Revenue
Rooms 1,921,952 1,425,573 947,949 854,479 838,960
Food 1,405,859 1,220,522 1,007,744 808,161 681,305
Beverage 249,572 216,899 169,933 141,648 147,984
Food & Beverage Others 20,264 15,638 13,574 12,606 11,526
Telephone 5,349 6,451 7,746 8,560 11,513
Rental Income 12,510 11,419 11,395 9,624 10,295
Other Operating Income 188,631 120,268 87,822 74,864 79,070
Total Revenue 3,804,137 3,016,770 2,246,163 1,909,942 1,780,653
Expenses
Room 255,945 210,295 156,643 135,538 122,780
Food Cost 561,902 497,769 392,579 322,261 262,668
Beverage Cost 79,662 74,734 58,673 49,747 46,236
Food & Beverage 454,770 372,665 308,877 270,180 229,221
Telephone 4,987 4,453 4,144 4,499 3,213
Other 133,371 84,625 58,951 50,265 51,911
Total Expenses 1,490,637 1,244,541 979,867 832,490 716,029
Gross Operating Income 2,313,500 1,772,229 1,266,296 1,077,452 1,064,624
Expenses
Administration & General 199,685 180,941 155,318 153,264 134,847
Advertising & Sales Promotion 72,363 86,139 76,840 69,791 54,794
Heat, Light & Power 285,126 261,680 201,549 237,578 197,046
Repair & Maintenance 140,729 121,717 97,960 84,528 74,317
Total Deductions 697,903 650,477 531,667 545,161 461,004
Gross Operating Profit 1,615,597 1,121,752 734,629 532,291 603,620
Interest Income 37,403 6,391 16,816 4,460 4,348
Dividend Income 117,211 39,070 19,535 29,303 14,651
Sundry Income 12,067 14,832 2,176 7,955 6,456
1,782,278 1,182,045 773,156 574,009 629,075
Insurance 16,098 15,335 16,003 13,510 20,491
Interest Expenses 84 39,829 105,880 183,694 237,678
Rates 10,516 10,135 10,135 10,135 10,135
Group Overheads - - - - (4,470)
Management/ Marketing Fee 232,340 178,499 128,093 102,655 99,948
Depreciation 218,036 203,297 188,231 200,961 173,525
477,074 447,095 448,342 510,955 537,307
Net Profit Before Tax 1,305,204 734,950 324,814 63,054 91,768
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
96

[ 5 year financial summary property development division ]
2011/12 2010/11 2009/10 2008/09 2007/08
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Revenue 2,675,625 2,468,699 1,586,995 1,515,014 2,563,525
Cost of Sales 2,066,140 1,779,735 1,189,314 1,076,067 1,714,414
Gross Profit 609,485 688,964 397,681 438,947 849,111
Administration & Other Overheads 205,240 163,898 151,518 122,582 257,545
Other Income 111,523 62,638 43,001 90,396 123,813
Change in Fair Value of Investment
Property 206,971 215,088 - 31,312 -
Net Profit Before Tax 722,739 802,792 289,164 438,073 715,379
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
97

[ notice of meeting ]
NOTICE IS HEREBY GIVEN that the
Eighteenth Annual General Meeting
of Asian Hotels and Properties PLC
will be held at the Ceylon Chamber of
Commerce, No. 50, Navam Mawatha,
Colombo 2, on 25th June 2012 at
11a.m for the following purposes:
1. To read the notice convening the
meeting.
2. To receive and consider the Annual
Report and Audited Financial
Statements of the Company for
the year ended 31st March 2012
together with the Report of the
Auditors thereon.
3. To re – elect as a Director Mr. J. R.
F. Peiris who retires by rotation in
terms of Article 84 of the Articles of
Association of the Company.
4. To re – elect as a Director Mr. C.J.L.
Pinto who retires in terms of Article
91 of the Articles of Association of
the Company.
5. To re-appoint the retiring Auditors,
KPMG (Previously known as KPMG
Ford, Rhodes, Thornton & Co.)
Chartered Accountants, and to
authorise the Directors to determine
their remuneration.
6. To authorize the Directors to
determine and make donations.
7. To consider any other business of
which due notice has been given.
BY ORDER OF THE BOARD
KEELLS CONSULTANTS (PRIVATE) LIMITED
SECRETARIES
Colombo, 31st May 2012
Note:
(i) A member entitled to attend and
vote at the Meeting is entitled to
appoint a Proxy to attend and
vote instead of him/her. A Form of
Proxy accompanies this Notice.
(ii) A Proxy need not be a member of
the Company. A Proxy (who is not
a member) may vote on a show of
hands.
(iii) To be valid the completed Form of
Proxy should be deposited at the
Registered office of the Company
not less than 48 hours before the
time appointed for the holding of
the Meeting.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
98

[ form of proxy ]
I/We …………………………………………………………………………………………………...………..................................................................
of ………………………………………………………………………………………………………………..................................................................
being a *member/members of Asian Hotels and Properties PLC hereby appoint …….......……………………………..…………………...
................................................................................ of .................……………………………….………………………… or failing him/her
Mr. S.C. Ratnayake of Colombo, failing whom
Mr. A.D. Gunewardene of Colombo, failing whom
Mr. J.R.F. Peiris of Colombo, failing whom
Mr. S. Rajendra of Colombo, failing whom
Mr. S.K.G. Senanayake of Colombo, failing whom
Mr. R.J. Karunarajah of Colombo, failing whom
Mrs. S.A. Jayasekera of Colombo, failing whom
Mr. C.J.L. Pinto of Colombo
as *my/our proxy to represent *me/us and to vote on *my/our behalf at the Annual General Meeting of the Company, to be held on
the 25th day of June 2012 and at any adjournment thereof, and at any poll which may be taken in consequence thereof. *I/We the
undersigned hereby authorise *my/our proxy to vote on *my/our behalf in accordance with the preferences indicated below:
1. To re – elect as a Director Mr. J.R.F. Peiris who retires in terms of Article
84 of the Articles of Association.
2. To re – elect as a Director Mr. C.J.L. Pinto who retires in terms of Article
91 of the Articles of Association.
3. To re-appoint the retiring Auditors, KPMG (Previously known as KPMG
Ford, Rhodes, Thornton & Co.), Chartered Accountants, and to Authorise
the Directors to determine their remuneration.
4. To authorize the Directors to determine and make donations
Signed this ………… day of …………………… Two Thousand and Twelve
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
…………………………………….
Signature of Shareholder
99
FOR AGAINST
Notes:
(a) *Strike out whichever is not desired.
(b) Instructions to completion of the Form of Proxy are set out on the reverse hereof.
(c) A proxy need not be a Member of the Company.
(d) Please indicate an “X” in the cage provided how your Proxy should vote on each Resolution. If no indication is given, or if
there is, in the view of the Proxy holder, any doubt (by reason of the manner in which the instructions contained in the Proxy
have been completed) as to the way in which the Proxy holder should vote, the Proxy holder in his/her discretion may vote as
he/she thinks fit.

INSTRUCTIONS FOR COMPLETION
1. Kindly complete the Form of Proxy by filling in legibly your full name and address and that of
the Proxy holder. Please sign in the space provided and fill in the date of signature.
2. The instrument appointing a Proxy shall, in the case of an individual, be signed by the
appointer or by his Attorney and in the case of a Corporation must be executed under the
Common Seal or in such other manner prescribed by its Articles of Association or other
Constitutional documents.
3. If the Proxy Form is signed by an Attorney the relevant Power of Attorney or a notarially
certified copy thereof, should also accompany the completed Form of Proxy if it has not
already been registered with the Company.
4. To be valid, the completed Form of Proxy should be deposited at the Registered Office of
the Company at No. 77, Galle Road, Colombo 3 not less than 48 hours before the time
appointed for the holding of the Meeting.
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ASIAN HOTELS AND PROPERTIES PLC
Annual Report 2011/12
100

[ corporate information ]
NAME OF COMPANY
Asian Hotels and Properties PLC
LEGAL FORM
A Public Limited Liability Company incorporated in Sri
Lanka in 1993 and registered with the Board of Investment
of Sri Lanka under Section 17 of the Board of Investment
Law No. 4 of 1978
The Company was re-registered as per the New
Companies Act No. 7 of 2007 on 15th June 2007
STOCK EXCHANGE LISTING
The issued Ordinary shares of the Company are listed on
the Main Board of the
Colombo Stock Exchange of Sri Lanka
COMPANY REGISTRATION NO.
PQ 2
BOARD OF DIRECTORS
Mr. Susantha Chaminda Ratnayake - Chairman
Mr. Ajit Damon Gunewardene - Managing Director
Mr. James Ronnie Felitus Peiris
Mr. Anthony Ranjit Gunasekara
Mr. Rohan Jebashanthan Karunarajah
Mr. Suresh Rajendra
Mr. Sanjiva Kanishka Gamini Senanayake
Ms. Shirani Anoja Jayasekara
Mr. Cholmondeley John Lloyd Pinto
Mr. Anthony Ranjit Gunasekara resigned from the Board
with effect from 29th June 2011.
Mr. Cholmondeley John Lloyd Pinto was appointed to the
Board with effect from 1st July 2011.
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COMPANY SECRETARIES
Keells Consultants (Private) Limited
130, Glennie Street, Colombo 2.
REGISTERED OFFICE
No.77, Galle Road, Colombo 03
Tel: 0094 - 11 2437437,
Fax: 0094 - 55 47555
E-mail: ahpl@crescat.com
AUDITORS
KPMG (Previously known as KPMG, Ford Rhodes,
Thornton & Company)
Chartered Accountants
32A, Sir Mohamed Macan Marker Mawatha
Colombo 03.
BANKERS
Deutsche Bank - Colombo
Seylan Bank Ltd - Millennium Branch
Hongkong & Shanghai Banking Corp. Ltd. - Colombo
Nations Trust Bank PLC - Union Place, Colombo
DFCC Vardhana Bank Ltd. - W.A.D. Ramanayake Mw,
Colombo.
Commercial Bank of Ceylon PLC – Colombo
Hatton National Bank PLC – Colombo
Bank of Ceylon –Colombo
CITI Bank N.A - Colombo

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ASIAN HOTELS AND PROPERTIES PLC • Annual Report 2011/12
Asian Hotels and Properties PLC
No. 77, Galle Road,
Colombo 03, Sri Lanka.
Telephone : 0094-11-2437437
Fax : 0094-11-5547555