01.

) Select a listed company from CSE and give an introduction to its

past/present/future.
Comment on the firms, financial result and performance.

TAJ LANKA HOTELS PLC

ANNUAL REPORT 2011/2012

TAJ LANKA HOTELS PLC

The Taj Samudra is strategically based in Colombo's business hub and is also
just a short stroll to the city centre for shopping and entertainment. Spread
across 11 acres of beautifully landscaped gardens, the hotel also boasts a
peerless view of the Indian Ocean and the Galle Face Green, a hallmark of
Colombo.

Location
Colombo, the capital of the island nation of Sri Lanka is also the commercial
hub of the country. It lies in the southwest region of the nation, on the shore
of Indian Ocean. The international airport is 34 Km from the city centre.
This charming hotel welcomes you in style with soothing water fountains and
an opulent lobby befitting Rajasthani royalty. Fresh and tranquil, nature
blooms in every corner, while rich Indian design details transport you to a
bygone era. Conveniently located close to the citys business hub and a short
stroll to the city centre for museums, restaurants, and more.
The Taj Samudra Colombo is located on 12 acres of landscaped gardens
facing the historic Galle Face Green with a panoramic view of the Indian
ocean. It blends the quiet charm of an earlier era with a comfort and
efficiency of an International hotel. It is also an architectural landmark in
Colombo built in local style.
This is consist with 400 comfortably furnished air-conditioned rooms with
telephone, satellite-TV with video channel, radio, mini-bar, attached

bathroom with bath, shower, w.c., and cosmetic articles, bathrobes.

Pool/Sea-facing Rooms

Light, airy, and modern, these rooms are well equipped with guest amenities
including international direct dial facility, channel music, and colour
television with satellite programmes.

Executive Floors

These spacious, stylishly appointed rooms also offer guest amenities like
complimentary Continental breakfast in the Executive Lounge, cocktails
during Cocktail Hour and use of the Board Room.

Executive Suites
Outfitted in luxurious, modern dcor, these two-room units are wellequipped with space and includes all the above guest amenities.

Luxury Suites
An inviting mix of style and spacious elegance, these exquisite suites
feature a living room and bed room. Include all the above guest
amenities as well as a balcony offering a fantastic sea view.

Presidential Suites
Comfortable, scenic, and stylish, these two-bedroom suites offer
separate dining and dressing areas, and private sitouts and bathrooms

Restaurants

Golden Dragon

This modern restaurant offers a fine

selection of classic Chinese dishes. Peking
duck, kung po chicken, and crispy whole
garoupa are signature dishes prepared by Chinese Chefs.

Lobby Lounge
Open to everyone from mid morning until late
evening, the Lobby Bar is the ideal location to
meet friends, have a snack, and enjoy
cappuccinos and blended coffees or sip a fresh
juice.

Navratna
This inviting restaurant is the perfect place to enjoy
the best Indian cuisine in the city. The extensive
menu ranges from a variety of Indian breads like
Naan and Chapatis to a host of vegetarian and meat
dishes prepared by our experienced Indian Chef

Ports
For fun, relaxed dining, this 24-hour coffee shop delectable cuisine
from no less than seven ports in Asia - Singapore, Penang, Jakarta,
Bangkok, Cochin, Mumbai and Colombo

San Domingo

Located in the lobby level San Domingo is a unique Cigar Lounge

serving a wide variety of Cigars, fine liqueurs and specialty coffees.
Ideal venue for rest and relaxation after a hard day at work or play!

Steak & Grill House

The elegant restaurant serves a hearty selection of expertly prepared
steaks, poultry. seafood and vegetarian dishes

The Mix Bar

The Mix comes alive in the evening, providing the perfect surroundings
for drinks, snacks, and good entertainment. True to its name, it offers a
wide selection of liquors, wines and cocktails combined with popular
music provided by live bands as well as Djs and a dance floor.

Sports & Leisure

Swimming pool with pool bar and snack corner. Swimming lessons, fitness
centre, tennis courts (hardcover) with floodlight, air-conditioned squash
court, discotheque.

Activities Available in Taj Samudra Hotel-Colombo

Diving & Snorkeling
Fishing
Surfing
Water Skiing
Windsurfing

Vision
Embrace talent and harness expertise to leverage
standards of excellence in the art of hospitality to
Grow our international presence, increase domestic
Dominance and creative value for all stake holders.

The board of directors

Mr. R N E Bickson - Chairman

Mr. APGoel
Mr. U LKadurugamuwa
Mr. B K Chaudhary
Mr. R K Chaudhary
Mr. TDe Zoysa
Mr. V V Singh
Ms. D M Harris
Dr. G Sundaram
Mr. Vish Govindasamy
Mr. J PKanoria
Mr. S. Joshi ( Alternate Director to Mr. J PKanoria)

2012

Current ratio=

Current Asset

Current Liabilities

534,244,365
328,537,395
1.626

Net profit Ratio= Net profit after Tax

* 100

Net Sales

124,771,296 * 100
1,641,867,003
7.5%

Gross profit ratio= Gross profit * 100

Net Sales

475,095,228
1,641,867,003
28%

Return on equity = net profit after tax

* 100

Total equity

124,771,296
2,109,293,089
=6%

Quick ratio =current asset - stock

Current liabilities

534,244,365 - 40,172,868
328,537,395
=1.5

Cash ratio =

cash + equivalents
current liabilities
274,519,293
328,537,359

=0.83

Debt Ratio

Total Liabilities
Total Assets

=
1,182,552,953
3,291,846,042
=0.3

1,182,552,953
2,109,293,089
=0.5

Inventory turn over = annual sales

Inventory
1,641,867,003
40,172,868
=40

2011

Current ratio=

Current Asset
Current Liabilities

411,039,951
616,971,323
= 0.6

Net profit Ratio= Net profit after Tax

* 100

Net Sales

99,301,876

* 100

1,375,317,382
=7%

Gross profit ratio= Gross profit * 100

Net Sales
306,724,986

1,375,317,382
=22

Return on equity = net profit after tax

* 100

Total equity
99,301,876
1,984,521,793

=5%

Quick ratio = current asset - stock

Current liabilities
411,039,951- 38,935,814
616,971,323

=0.6

Cash ratio =

cash + equivalents
current liabilities
96,000,164
616,971,323

=0.1

Total Liabilities
Total Assets

Debt Ratio =
1,264,065,149
3,248,586,942

=0.3

1,264,065,149
1,984,521,793
=06

Inventory turn over = annual sales

Inventory
= 1,375,317,382
38,935,814
=35.3Ratios

Liquidity Ratios measure how readily a company can meet its

obligations.

Profitability Ratios give an indication of the earnings and profitability

potential of a company.

Profitability Ratios indicate earnings and potential profitability

Leverage ratio measures company long term financial position of the

company.
Current Ratio
The current ratio looks at the relationship between current assets and
current liabilities.
Current assets include: stock, debtors and cash. Current liabilities include:
trade creditors, current tax liabilities, bank overdraft and so on.
The word "current" implies short-term assets or liabilities, payable or
receivable within one year.
Current ratio in 2012 is 1.6.
This would be considered a healthy result showing you have enough current
assets to pay current liabilities as soon as they are due. Better than 2011.
Current ratio in 2011 is 0.6
This would be low risk to the company. But not good as in 2012.

Quick ratio
It measures the ability of a company to pay its debts by using cash and near
cash current assets.

The quick ratio, or acid test ratio, is useful as it measures liquidity more
precisely than the current ratio.
This is because it does not include the value of stock within current assets.
Turning stock into cash takes time, with payment terms typically standing at
30 days or more.
So you calculate the quick ratio by dividing current assets (without stock) by
current liabilities.
Quick ratio in 2012 is 1.5
the company is in good condition as it has assets more than the liabilities. So
company is in very low risk in 2012.Better than 2011.
When reviewing the liquidity of a business, it is common practice to look at
both the current ratio and quick ratio. When comparing these two things the
company is in healthy and good condition.
An apparently healthy level of current assets might hide the fact that a large
proportion of the current assets is made up of stock. Stock can usually be
turned into cash - but only over time, and to do it quickly might require
discounting.
Quick ratio in 2011 is 0.6
in this year company in low risk.

Profitability ratio
these ratios measure the financial result and operating effectiveness of
the company.
Is the profit growing in proportion to the size of the business?

Is the profit growing or falling in relative terms - are you making as

much profit on extra sales as you were on existing sales?

Is the business as profitable as other businesses in the same sector?

The size of a business is often measured by looking at:

Levels of turnover.

Value of assets.

Amount of capital invested in the business.

Number of employees.

You can put the profit in perspective by looking at various ratios which
compare profit as a percentage of sales or assets.
Gross profit ratio
one of the most commonly used ratios is the gross profit margin, which looks
at gross profit as a percentage of turnover.
In 2011 gross profit ratio is 22%.2012 gross profits is 28%.
This means that for every RS1 of sales the business achieves, profit after
taking off the costs of production is 22.
And in 2012 , RS1 of sales the business achieves, profit after taking off the
costs of production is 28.
Comparing to 2011 it shwos high gross profit. And means the company is
making the reasonable profit.

Inventory Turnover ratio

An important resource that requires considerable management attention is
inventory. Control of inventory is important and is commonly assessed with
the inventory turnover measure.
In 2011 inventory turnover shows 35.3.and in 2012 it is 40.Increased by 10.it
shows healthy condition to the company.
A high level of return suggests that corporate resources are being well
managed and that the firm is able to realize high level of sales from its asset
investments. So 2012 is better than 2011.

Leverage ratios

A company's leverage relates to how much debt it has on its balance sheet
and it is another measure of financial health. Generally the more debt a

company has, the riskier its stock is, since debt holders have first claim to a
company's asset. This is important because, in extreme cases, if a company
becomes bankrupt, there may be nothing left over for its stockholders after
the company has satisfied its debt holders.
Debt Ratio
Debt also includes long-term debt. Long-term debt is debt that has a
maturity of more than one year such as mortgages or long-term loans for
other purposes.
If business owners see debt rising when they do trend analysis, that is a
concern. If they compare their balance sheet to the balance sheets of other
firms in their industry and they see that they have higher debt, which is also
a concern. Calculating the debt to equity ratio will help the owners know
where they stand.
In 2011 it was 0.3 and in 2012 it is 0.5
debit ratios in both years are in low risk.
Debt ratio ranges from 0.00 to 1.00. Lower value of debt ratio is favorable
and a higher value indicates that higher portion of company's assets are
claimed by it creditors which means higher risk in operation since the
business would find it difficult to obtain loans for new projects.
Debt ratio of 0.5 means that half of the company's assets are financed
through debts.

Debit to liquity ratio

The debt to equity ratio is calculated by dividing the firms total debt by the
firms equity. Debt includes short-term debt (current liabilities on the balance
sheet) and long-term debt. Equity includes the combination of shareholders
equity (the cash paid in by the investors when the company sold its stock)
and the companys retained earnings (the profit not paid out as dividends to
the shareholders).
In 2011 Debit to liquity ratio is 0.6 an in 2012 is 0.5.

in general, a high debt-to-equity ratio indicates that a company may not be

able to generate enough cash to satisfy its debt obligations.
but in this situation company faces healthy condition and low risky.