Introductory Document - Colombo Stock Exchange

agreement with the new owners of Ramboda Falls Hydro (Pvt) Limited for the use of land for theplant. In terms of the lease agreement RFL is entitled to 5% of the profits of RFHPL, as considerationfor the same.Peacock SolitudeRFL has another hotel – Peacock Solitude situated in Higurakgoda, Minneriya. Peacock Solitude islocated in the cultural triangle of Sri Lanka, only 196 km from Colombo, 20 mins to Minneriya Wildlifepark and Polonnaruwa ancient city, and 5 mins to Kadulla National Park, Giritale tank and MinneriyaTank.Peacock Solitude has a total land extent of two acres and twenty one perches, which is owned byRamboda Falls Limited. The hotel has ten rooms with air conditioning, hot water and televisionfacilities. The hotel is ideal for adventure seekers, as it lies in close proximity to the wildlife parks. Thehotel has also developed new activities to cater to the growing interest in adventure and eco-tourism.Other facilities include:• Ample parking space• Restaurant• BarRFL has leased out thehotel to a third party – Mr. E G D S Desapriya with effect from 20 November, 2011 and currently theonly income generated by RFL from Peacock Solitude is a lease rental. RFL is no longer involved in theoperations of the hotel as it is solely managed by the party which has leased the hotel, as such allprofits and losses are accrued to the lessee. The initial capital for Peacock Solitude was infused by RFL,as it was owned and managed by RFL, but any additional capital infused to the hotel will be funded bythe lessee.2.2 DEPENDENCE ON KEY CUSTOMERS AND SUPPLIERSThe Company is not dependent on any single customer in deriving its income as it has a diversifiedcustomer base. The Company has contracts with 22 travel agents, which contribute around 30% of itstotal revenue. Further, RFL is not solely dependent on any particular travel agent; therefore, no singlecustomer would have a material impact on its revenue. Further, the Company is not dependent ontheir suppliers.11 Ramboda Falls Limited – Introductory Document