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 PLCANNUAL REPORT 2011/2012

TAJ LANKA HOTELS PLCThe 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 RoomsLight, 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 well-equipped 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 & LeisureSwimming 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 toGrow our international presence, increase domestic Dominance and creative value for all stake holders.

The board of directors

Mr. R N E Bickson - ChairmanMr. 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 1,641,867,0037.5%

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 equity124,771,296 2,109,293,089 =6%

Quick ratio =current asset - stockCurrent liabilities534,244,365 - 40,172,868328,537,395=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 equity99,301,876 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 Debt Ratio =Total Liabilities

Total Assets

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 profitabilityLeverage 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 0.6This 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 1.5the 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 0.6in 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 ratioone 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 0.5debit 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.