Sri Lanka’s Anilana Hotels says to get more cash from Singaporeâ€™s SOMAP
ECONOMYNEXT – Singapore’s SOMAP International Pte Ltd. is to pump in funds to revive Sri Lanka’s loss-making Anilana Hotels & Properties, which was transferred to the stock exchange’s watch list after auditors gave a qualified opinion on its accounts.
Anilana Hotels said in a stock exchange filing its controlling shareholder Somap has given a written undertaking to support it financially and will infuse more capital to turn it around within three months.
The company is also repaying outstanding loans to reduce interest costs and operational costs, the statement said.
Anilana Hotels & Properties was transferred to the Colombo stock exchange’s watch list on December 14 after auditors Amarasekera & Company gave a qualified opinion on its annual report for 2017-18.
The stock last traded at 1.10 rupees.
Anilana Hotels & Properties also said it was in the process of appointing two independent directors to comply with the stock exchange listing rules.
The company and group have run up accumulated losses of 2.78 billion rupees and 2.28 billion rupees, with current liabilities exceeding total assets by 890 million rupees and one billion rupees, the auditors said.
They said there was uncertainty over the company’s and group’s ability to continue as a going concern.
Anilana Hotels & Properties said the losses were mainly due to finance costs incurred by the group arising from related party borrowings and company borrowings together with the impairment of assets.