I. financial and accountancy outsourcing services through Aitken

Company Overview


Aitken Spence PLC is a blue chip
conglomerate listed in Colombo Stock Exchange as a Sri Lankan Company in 1983
with paramount involvement in sectors such as hotels and resorts, travels,
maritime and logistics.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Its origin dates back to Wilson
and Archer Partnership in 1830s and reached the current state after
establishing Clark Spence & Co. in 1868 by signing a partnership with
Thomas Clark and Patric Spence.

An American magazine ‘Forbes’
recognizes Aitken Spence as one out of highly successful publicly traded
companies achieving annual sales of US$ 1 billion for three consecutive years.
Furthermore, it retained the Best Corporate Citizen Award for eleven
consecutive years from 2012 onwards.


Group structure


This leading
conglomerate operates a portfolio of hotels and resorts in Sri Lanka, Maldives,
Oman and India as illustrated in ‘annexure 1’ and acquisition
of Raafushi
Maldives, launch of Turyaa Chennai as its 1st Indian property,
commencement of Turyaa Kalutara and acquisition of Al Falaj Hotel in Oman
contributed towards its expansion.

Further this is managed
by directors namely, Deshamanya Jayawardena (Chairman), J.M.S. Brito (Managing
Director), Ms. D.S.T Jayawardena, R.E.V. Casie Chetty,  C.M.S. Jayawickrama G.P.J. Goonewardena, R.N.
Asirwatham, C.H. Gomez, N.J. de Silva Deva Aditya

Apart from hotels and
resorts sector, Aitken Spence PLC  provides
GSA for airlines in Maldives and Sri Lanka, maritime and logistics services
through Aitken
Spence Maritime and Aitken Spence Logistics,
financial and accountancy outsourcing services through Aitken Spence Business
Solutions, HR consultancy through Genuity, operates in plantation sector
through Aitken Spence Plantation Managements PLC, involves in printing through
Aitken Spence & Co. and its travel arm functions as a joint venture with
TUI Travels,

of Exchange rates over the Group


Spence is exposed to foreign currency exchange risk due to its international
involvement in hoteliering specially when contracting out certain rooms in
foreign currency, importing capital goods and holding of net assets in foreign
currency resulting from overseas investments and foreign currency borrowings.

the financial year where Rupee depreciated against all major currencies except
Pound Sterling, the profit or loss recognized a net exposure in foreign
currency worth of USD (430,400) and valued at Rs.(63,527,000) when converted using
the average conversion rate of USD1: Rs146.

the average conversion rate increase by Rs.1.00, the net assets will be valued
at Rs.(63,957,000) generating a loss of Rs.(430,000) and if it decreases by Rs1.00,
the net assets will be valued at Rs.(63,097,000) with a subsequent gain of Rs.430,000.

from this, the foreign currency denominated financial assets had net exposure worth
of USD (9,841,120), GBP 251,174, EURO (36,719,710) and OMR25,609 and their
converted values at the conversion rates are Rs.(1,495,752,000), Rs.47,527,000,
Rs.(5,958,507,000), Rs.10,110,000 respectively.  

annexure 3 illustrates the impact on profit or loss if exchange rate increase/
(decrease) by Rs.1.00.

the company holds a foreign currency translation reserve comprising all foreign
exchange differences arise from translating ?nancial statements of overseas
operations. Accordingly the annual transfer made to this reserve is Rs.512,913,000.

exchange rate fluctuations enhanced goodwill by Rs.18,590,000 and computer
software by Rs.19,000, operating lease by Rs.89,429,000, leasehold properties
by Rs.99,359,000, property plant and equipment by Rs.829,102,000, defined
benefit obligation by Rs.3,552,000, deferred tax liability by Rs.6,500,000, deferred
tax asset  by Rs.6,727,000 and interest bearing
borrowings by Rs.375,465,000 during the year,