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ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000) - Page 2 Vote_lcap68%ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000) - Page 2 Vote_rcap 68% [ 178 ]
ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000) - Page 2 Vote_lcap18%ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000) - Page 2 Vote_rcap 18% [ 47 ]
ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000) - Page 2 Vote_lcap13%ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000) - Page 2 Vote_rcap 13% [ 35 ]

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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000)

ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000)

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K.Haputantri


Co-Admin

I have few questions to relevant authorities;

1. What action SLAASMB has taken against the Auditors of that company whose application was rejected? Surely auditors too should take some responsibility.
2. What action the Chief Govt., Valuer & their professional body taken against the chartered valuers who certified wrong valuations without any basis?
3. What further action SEC would take under the circumstances?
4. What is the progress in the proposed issue of licenses to qualified professionals involved in preparation of prospectus and other promotional material etc., by the SEC?

salt


Vice President - Equity Analytics
Vice President - Equity Analytics

Who is head of SEC?

malanp


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics


That is why as a policy, I never subscribe to IPOs.

there should be sufficient EPS before we buy shares.

Bond


Manager - Equity Analytics
Manager - Equity Analytics

There are some half truths to the above. Anilana has new and old hotels. Some of those have reviews already which you can check out

Amongst the lead investor is HSBC International and Pershings and the issue would probably be oversubscribed.

With regards to new hotels, Asanga purchased the land when the war ended so the purchase price was low.

There is also a hotel in Kalpitiya. Lot of activity in that region.

seek


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

If I am not mistaken, Asanga had the first mover advantage in some locations in eastern beach. When he bought those lands the war in north had not seen an end. He got the risk and bought those at damn cheap.

econ

econ
Global Moderator

I think better to neglect this IPO since owner of this company is well known broker.

KDDND

KDDND
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Nari Kiyaida Eththa.......? Midi Koheda Thiththa....?

Tc Very Well!

seek


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Agree with econ, owner has a tarnished image.

suddera

suddera
Manager - Equity Analytics
Manager - Equity Analytics

You will get it below IPO price from secondary market.

manula


Vice President - Equity Analytics
Vice President - Equity Analytics

@suddera wrote:You will get it below IPO price from secondary market.

That the normal pattern in past years.. we got lot of IPOs in queue. Very Happy

cseguide

cseguide
Vice President - Equity Analytics
Vice President - Equity Analytics

@manula wrote:
@suddera wrote:You will get it below IPO price from secondary market.

That the normal pattern in past years.. we got lot of IPOs in queue. Very Happy
yes don't sell your valuable shares to buy ipo share.

blackcats


Equity Analytic
Equity Analytic

http://www.anilana.com/pasikuda/

KDDND

KDDND
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

@blackcats wrote:http://www.anilana.com/pasikuda/

Thx this give nice set of pictures of the surrounding and plans and set up...
look so attractive....... and lovely....

as far as our recent past experiences of IPO....
I believe this IPO will be fully subscribed and then in few months time we could buy this at lower price in CSE...... [*I like to pick from here]

however in any case foreign investors will not miss this IPO if local investors have many reasons to stay away from this IPO....

* my personal idea at this stage is...... still i don't have feeling to apply for this IPO..... but I have some reservations this could work too......
GL! Cool

KDDND

KDDND
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

@econ wrote:I think better to neglect this IPO since owner of this company is well known broker.

thx Econ for the information.....

see ... how some work of the CSE work.....

"......................since owner of this company is well known broker.............."

bit terrible claim What a Face ...... but could be the truth......... Cool .......

this indicate that... there could be unrealistic LOST or GAIN......between this IPO date and within next six to nine months.................!!!

GL!

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

Without studying the prospectus you cannot tell anything.

sandunj


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

This is the First IPO after long time so we can expect something. Actually I dont care about the owners or business. Dont buy shares from IPO for the investment purpose surely it will come down to even 8 or 7. Cant say. But first day it may go up for least 14. I told it may. This is the IPO after some time and I dont think the owners and Mr. Chaiman of SEC like to see another ipo like SHL or even TJL. So that is why I feel this. Didnt see Prospectus so have to see it too. This my personal view at the moment and I will try to get some information. If I get some + or - infor I will share with u.

blackcats


Equity Analytic
Equity Analytic

Anilana to build 450 rooms in three years

June 01, 2013 (LBT) - Anilana Hotels and Properties Ltd. Sri Lanka aims at coming up with 450 hotel rooms in the next three years. The funds are to be raised with the opening of its Initial Public offering (IPO) on June 12, 2013.

The offer is for 40 million shares at Rs. 12 each with the option of issuing a further 40 million shares in the event of oversubscription. The funds raised in the IPO is to be used in a massive expansion drive in the property chain headed by entrepreneur Asanga Seneviratne.

The proposed expansion move is expected to include both existing and proposed resorts by Anilana covering a wide geographical area including Pasikudah, Nilaveli, Dambulla, Panichchankani, Seladive Island, Vakarai and Blue Lagoon catering to up and medium scale leisure travellers and groups providing them with world class facilities in serene surroundings.

At present, the hotel property in Pasikudah is operational.

The hotels will offer three types of accommodation viz. hotel rooms, chalets and water bungalows targeting a cross section of high end tourists both foreign and local. The major foreign markets aimed at include high spending tourists in Europe and emerging markets such as China and India.

The company is also on the lookout for partnerships with international hotel chains that show an interest in equity ownership of the company’s properties and the management of the same which will help Anilana to make its mark in overseas markets. To this end Anilana is keen to bring in an internationally reputed hotel management company that would introduce a globally recognized brand name to the company’s portfolio.

Anilana targets the up-market traveller segment and plans to become the leading hotelier in the East Coast with its planned expansion project which is expected to encompass international standards and designed by award winning local architects

The company which has an estimated fair value of approximately Rs. 5.5 billion is also prospectively expected to move in to other property development ventures with propositions such as mixed development construction plan (Colombo) in their conceptual plan pipeline.

Arena


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

wait wait,

We are here planning another IPO from Apparel sector.We need another 6 months to complete the documentation and the legal approvals.

Man nisa wath ganilla bun. Meka fully Subscribe wn nathnam man iwaro..

ha ha

KDDND

KDDND
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

@Chinwi wrote:Without studying the prospectus you cannot tell anything.


Yeah! Chiniwi
Your argument is so valid...... and I am happy to respect it....
As it is a very wise say! Smile
& I mostly tend to consider your comments positively...... thx for it!

In case if some one knows about this business, it past and real situations....... Smile
then there could be very good hints than what will be in prospectus...... isn't it? scratch
Those hints could be very useful to decide when to enter .... whether in IPO or later........

But to make this happen well.....
Commenters need to have good knowledge, experience and a fair go....
which is sometime a question....
Thx

Bond


Manager - Equity Analytics
Manager - Equity Analytics

@KDDND wrote:
@Chinwi wrote:Without studying the prospectus you cannot tell anything.


Yeah! Chiniwi
Your argument is so valid...... and I am happy to respect it....
As it is a very wise say! Smile
& I mostly tend to consider your comments positively...... thx for it!

In case if some one knows about this business, it past and real situations....... Smile
then there could be very good hints than what will be in prospectus...... isn't it? scratch
Those hints could be very useful to decide when to enter .... whether in IPO or later........

But to make this happen well.....
Commenters need to have good knowledge, experience and a fair go....
which is sometime a question....
Thx

This is more for the sophisticated type of investor. They raised about $70 m via a private placement. There is about 9 hotels - 6 on the east, 2 on in the middle and 1 on the west.

http://www.anilana.com/images/files/investor_profile_anilana.pdf

KDDND

KDDND
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Thx BOND! for this link

[http://www.anilana.com/images/files/investor_profile_anilana.pdf]

its nice n lovely pictures.....
So much attractive..... flower

manula


Vice President - Equity Analytics
Vice President - Equity Analytics

Is he the owner of Sunday leader and irudina papers and rugger coach of the big boss sons??.. good move

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

@manula wrote:Is he the owner of Sunday leader and irudina papers and rugger coach of the big boss sons??.. good move

Directer of Asia Fort Asset Management (Pvt) Ltd,
Director Nation Lanka Finance PLC
Managing Director Anilana Hotels and Properties Ltd.,
Investor Access Equities (Pvt) Ltd., Tharuvillas' Holdings (Pvt) Ltd.
Former CEO of Asia Capital PLC
Former Director Asian Alliance Insurance PLC
President of Srilanka Rugby Football Union
Vice President of Board of Control For Cricket in Srilanka
Current Owner of Leader Publications ( Leader Holdings pvt Ltd -Sunday Leader)


Now what do you think about the IPO ? Very Happy

kukumarx


Manager - Equity Analytics
Manager - Equity Analytics

@Chinwi wrote:
@manula wrote:Is he the owner of Sunday leader and irudina papers and rugger coach of the big boss sons??.. good move

Directer of Asia Fort Asset Management (Pvt) Ltd,
Director Nation Lanka Finance PLC
Managing Director Anilana Hotels and Properties Ltd.,
Investor Access Equities (Pvt) Ltd., Tharuvillas' Holdings (Pvt) Ltd.
Former CEO of Asia Capital PLC
Former Director Asian Alliance Insurance PLC
President of Srilanka Rugby Football Union
Vice President of Board of Control For Cricket in Srilanka
Current Owner of Leader Publications ( Leader Holdings pvt Ltd -Sunday Leader)


Now what do you think about the IPO ? Very Happy

As far as I am concerned, I got badly burned in the ACAP IPO . So I will avoid- once bitten twice shy!

Jeremy

Jeremy
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Lands that were worth only Rs 200mn were revalued by massive Rs 2 billion prior to the IPO. Please see below the extract of the Page 36 of the Prospectus.

ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000) - Page 2 Screen15

http://www.anilana.com/images/PDF/AnilanaProspectus.pdf

suddera

suddera
Manager - Equity Analytics
Manager - Equity Analytics

full strength negative publicity campaign on Anilana.
anyway thanks for the information.

MarketWitch

MarketWitch
Stock Analytic
Stock Analytic

GMNet wrote:Lands that were worth only Rs 200mn were revalued by massive Rs 2 billion prior to the IPO. Please see below the extract of the Page 36 of the Prospectus.

ANILANA HOTELS AND PROPERTIES PLC (ALHP.N0000) - Page 2 Screen15

http://www.anilana.com/images/PDF/AnilanaProspectus.pdf

Sri Lanka accounting watchdog reveals valuation tricks

Link: http://www.lankabusinessonline.com/news/sri-lanka-accounting-watchdog-reveals-valuation-tricks/29811733

27 Jul, 2011 08:25:42
July 27, 2011 (LBO) - A Sri Lankan accounting watchdog has revealed how companies inflate their profits and balance sheets using false revaluation techniques that in two cases led to initial public offer applications being rejected.

New accounting standards coming in January 2013 will provide more clarity on fair value and revaluation methods, said Ajith Ratnayake, director general of the Sri Lanka Accounting and Auditing Standards Monitoring Board which monitors company financial statements.
New Standard

These are part of the International Financial Reporting Standards (IFRS) that set out a framework for measuring fair value and require disclosures about fair value measurements.

Two recent IPO applications sent to the SLAASMB for vetting by the Securities and Exchange Commission were not approved after they rejected revaluations by the companies, Ratnayake told the 36th LBR - LBO CEO Forum.

It was a panel discussion on 'Convergence of accounting standards in 2012: are CEOs ready?' organised by Vanguard Management Services in association with Sri Lanka Telecom at the Ceylon Continental Hotel on July 21.

Most of the new standards are going to come from January 2012 but SLAASMB is particularly concerned by IFRS 13 which relates to fair value measurements and comes into effect by January 01, 2013, Ratnayake said.

"That is a standard we as a regulator will watch for and ensure it is well complied with. This new standard, IFRS 13, will give you greater guidance and greater clarity as to how the fair value should be measured. That's something we will regulate a little more carefully in terms of fair value measurements."
Ratnayake gave two recent examples where the SLAASMB had to intervene to prevent problems in the future.

Bloated Property

One case referred by the SEC was an IPO application where the company had re-valued property, plant and equipment at a substantial valuation.

"A property that had been bought in June 2010 - just a year ago - at the rate of 137 rupees a perch was re-valued in March this year at 100,000 rupees per perch - 137 rupees going up to 100,000 rupees a perch," Ratnayake said.

"Then in September 2010 they bought another property at 37,000 rupees per perch and then again in March 2011 - about six months later - it was valued at 300,000 rupees per perch.

"And in November 2010 they had bought another property for 56,000 rupees per perch and again re-valued in March 2011 - just six months after - at 100,000 rupees per perch. And these re-valuations had given rise to 900 million rupees revaluation surplus."

The 900 million rupees arising from the difference in revaluation were issued as bonus shares - assets coming in the balance sheet and increasing the net assets - to the owners.

"Now they apply for an IPO," Ratnayake said. "We looked at it and then we also consulted the chief valuer and we said this cannot be accepted. The SEC did not allow the IPO to proceed. So the IPO did not see the light of day."


In the second case, a company bought several items of property, plant and equipment and built up a complex with the cost of the work in progress valued at 484 million rupees.

Valuation

"After the project was complete this was transferred to property, plant and equipment as a fixed asset," Ratnayake said.

"The 484 million rupee cost item was re-valued to 854 million rupees and a gain of 370 million rupees recorded in the books. This gain of 370 million rupees was used to issue bonus shares but not in proportion - the chairman was given a higher proportion than his shares in the equity of the company.

"This also came for an IPO. We looked at it and again we knew there was a problem. We also discussed with the chief valuer and we rejected that valuation. Therefore, the IPO did not see the light of day," Ratnayake said.

"If we had not looked at these things then you would have seen the extent to which people who apply for these IPOs would have got misled and would have thought the company had a certain different value and would have bought shares and they would have lost on those shares," he added.

"So fair valuation is an important area that has to be watched carefully," Ratnayake said.

The SLAASMB has also seen companies that have used models using false or inappropriate estimates and coming out with substantially big values which are not really true.

"So these are things for which there will be some guidance given in IFRS 13 but it does not solve the problem completely because there is still a judgement that is there," Ratnayake said.

"But there will be better guidance than that is available today in IFRS 13 and we will look to see whether that guidance has been appropriately applied by the companies when it comes to the future valuations."

Chartered Valuers

Ratnayake also noted that some of the valuations rejected by regulators had been done by chartered valuers who were unable to justify their valuations.

"Mind you, these valuations that we have seen have been valued by chartered valuers and the valuations have been supported by them," he said.

"But the problem is the assumptions are not correct. There are issues related to the assumptions. Sometimes when a chartered valuer comes in front of us, we ask 'why did you make those assumptions', what is the basis on which they made the valuations, and they don't have an answer.

"Sometimes they just say 'my professional judgement'. That's all. What is the basis of the professional judgement, they cannot explain," Ratnayake said. "So these are some of the things one will have to watch for."

Fair valuation is something SLAASMB would look at closely to see if it has been done appropriately particularly if the company has substantial value on a particular asset and that asset has been fair valued.

"Then we will look into that company because that is something that can change the picture that is shown in the balance sheet and change the picture that is shown as profit in the financial statements. So these we will watch carefully."

Back Note - Sujeewa Mudalige - Partner PWC Sri Lanka, Former SEC Commissioner, Former President of Institute of Chartered Accountants of Sri Lanka was talking about Anilana with much appreciation at Anilana Launch enjoying the cocktail circles Very Happy Laughing bounce

bullrun

bullrun
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Hello MarketWitch,
Please change your face. I will find a nice girl instead. Coz we want to see the forum at night too!

econ

econ
Global Moderator

It seems that Anilana guys try to collect money from ordinary public and build hotels. Still they have no recordered operational income as per the prospectus. Their prospectus is full of future hotel plans similar to future wood in Tochwood.



Last edited by econ on Sat Jun 08, 2013 7:43 am; edited 1 time in total

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

Nicely printed Prospectus. Areal views of never seen beautiful lagoons , beaches and islets in our country .

As per the page 36 cost of their land holding is 197 million rupees.
That was revalued to 2230 millon. ( 197 -> 2230 )

They have issued 129.6 million bonus shares to capitalized 1295 million form it. Rest is carried forward as surplus .

They also have issued 17.4 million shares considering other holding and expenditure to the owners.

Hence a total of 147 million shares issued at the initial stage.

Approx. cost for 147 million share is Rs. 196 million .
(overheads not considered. )

Then they have issued 100 million shares for cash @ 10/- ( Cost Rs. 1000 million)
By share split they have increased the number of shares from 247 m to 329.3 million.
Again issued 13.14 million shares @ 10/- ( cost 131.4 million)

No of shares at the moment is 342.48million

Total cost is 196 + 1000 + 131.4 = Rs.1327 million .
Approx . cost per share = 1327 / 342 = Rs.3.87. Say 4/-

Time factor not considered.

At IPO 80 million shares @ 12/- = Rs. 960 million expected.

12/4 = 3 times

Although they have revalued 196 million to 1295 million worth shares (6 times)
consequent share issued for cash reduced the IPO price / cur.val ratio to 3. ( 12 / 4 = 3)

If we consider post war price escalations of lands in the project areas and development done by the company so far, 3 times is acceptable.

This is not a buy signal. The prospectus is full of future plans.






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