related_party_transactions — [table] transaction — Rs. Mn 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Income Statement Rental Revenue 1,764 1,590 1,339 850 697 666 805 716 874 508 Revenue from Other Services 104 69 54 57 51 41 42 35 48 32 Apartment Revenue 4,329 3,190 554 1,588 950 1,234 598 379 - 333 Total Revenue 6,198 4,848 1,948 2,495 1,698 1,941 1,445 1,130 922 873 Direct Operating Expenses (482) (424) (426) (338) (329) (334) (350) (271) (313) (277) Cost of Sales of Apartment (3,308) (2,635) (397) (1,231) (633) (1,051) (403) (328) - (420) Gross Profit 2,408 1,789 1,125 926 736 556 692 531 609 177 Fair Value Gain on Investment Property 1,016 930 1,563 2,123 473 1,019 1,388 1,834 1,683 73 Other Operating Expenses (266) (268) (260) (270) (274) (187) (202) (178) (159) (50) Net Finance Income/ (Expense) 155 175 176 27 (94) 3 43 43 (109) (205) Profit from Operating Activities 3,312 2,626 2,604 2,806 841 1,391 1,921 2,230 2,024 (5) Other Income 64 - - - - - - - - - Exchange Gain/ (Loss) 10 15 (85) (40) 84 0 (88) - - - Net Profit Before Tax 3,386 2,641 2,519 2,766 925 1,391 1,833 2,230 2,024 (5) Income Taxes (50) (2) (51) (25) (11) (7) (16) (17) (6) (2) Net Profit After Tax 3,336 2,639 2,468 2,741 914 1,384 1,817 2,213 2,018 (7) Profit Attributable to Equity Holders of the Parent 2,957 2,435 2,469 2,681 844 1,342 1,783 2,197 2,021 (7) Non-controlling Interest 379 204 (1) 60 70 43 33 16 (3) - 3,336 2,639 2,468 2,741 914 1,384 1,817 2,213 2,018 (7) STATEMENT OF FINANCIAL POSITION Assets Non-Current Assets Investment Property 21,405 20,389 19,459 17,884 15,751 15,278 14,259 12,870 11,203 6,789 Property Plant & Equipment 1,559 703 644 395 254 246 236 215 51 7 Intangible Assets 14 18 18 26 30 35 15 16 16 7 Inventory 2,125 1,785 - - - - - - - - Deferred Tax 27 41 - - - - - - - - 25,130 22,937 20,122 18,305 16,035 15,560 14,510 13,101 11,270 6,803 Current Assets Inventory 424 3,565 4,129 3,167 3,981 4,093 4,226 3,108 2,210 2,730 Trade & Other Receivables 1,379 1,448 1,839 1,563 1,275 1,635 971 579 468 40 Amounts due From Related Parties 9 25 14 25 53 4 22 3 17 2 Income Tax Recoverable 10 2 - - 1 1 - - - - Short Term Investments 2,155 1,236 - - - - - - - - Cash & Short Term Deposits 1,170 1,680 1,811 2,197 1,008 177 244 902 462 293 5,146 7,956 7,793 6,952 6,318 5,910 5,462 4,592 3,156 3,065 TOTAL ASSETS 30,276 30,893 27,915 25,257 22,353 21,470 19,972 17,693 14,426 9,868 Equity & Liabilities Stated Capital 10,186 10,186 10,186 10,186 10,186 9,713 9,713 9,713 9,713 5,840 Revaluation Reserve 265 239 216 165 149 135 112 80 - 2,684 Retained Earnings 15,478 13,750 11,559 9,343 6,915 6,283 5,241 3,813 1,939 (3,591) Equity Attributable to Equity Holders 25,929 24,175 21,961 19,694 17,250 16,131 15,066 13,606 11,652 4,933 Minority Interest 1,507 1,147 943 963 903 833 791 758 741 - Total Equity 27,436 25,322 22,904 20,657 18,153 16,964 15,857 14,364 12,394 4,933 112 | Annual Report 2014 Overseas Realty (Ceylon) PLC

related_party_transactions — [table] transaction — gnidarT rof eulaV dleH stessA riaF ta laicnaniF

related_party_transactions — [table] transaction — ta seitilibaiL tsoC dna desitromA stessA laicnaniF

related_party_transactions — [table] transaction — 33. FAIR VALUES (Contd…) As at 31 December 2014, the Group held the following financial instruments carried at fair value on the statement of financial position: b) Financial Assets measured at fair value 31 December 2014 Level 1 Level 2 Level 3 Year ended 31 December 2014 Rs. Rs. Rs. Rs. Short Term Investments (Note 15.1) 2,154,735,058 - 2,154,735,058 - During the reporting period ending 31 December 2014, there were no transfers between Level 1 and Level 2 fair value measurements. 34. ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT BASIS Financial assets and financial liabilities are measured on an ongoing basis at either fair value or amortised cost. The summary of significant accounting policies describes how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses are recognised. The following table analyse the carrying amount of financial assets and liabilities by category as defined in LKAS 39 - Financial Instruments : Recognition and measurement and by Statement of Financial Position heading: 110 | Annual Report 2014 Overseas Realty (Ceylon) PLC

related_party_transactions — [table] transaction — 31. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd…) Company Less than 3 3 to 12 More than 5 Year ended 31 On Demand Months months 1 to 5 years years Total December 2014 Rs. Rs. Rs. Rs. Rs. Rs. Trade and Other Payables - - 334,322,674 - - 334,322,674 Interest Bearing Loans and Borrowings - - 52,461,730 97,716,287 - 150,178,017 Rental Deposit - 1,583,441 42,172,842 796,941,870 - 840,698,153 - 1,583,441 428,957,246 894,658,157 - 1,325,198,844 32. Capital Management The stated capital of the Company, and Group reserves are given in Note 13 and 14. 33. FAIR VALUES Set out below is a comparison of the carrying amounts and fair values of the Group’s financial instruments by classes, that are not carried at fair value in the financial statements. This table does not include the fair values of non-financial assets and non-financial liabilities. Group Carrying Amount Fair Value Note 2014 2013 2014 2013 Year ended 31 December Rs. Rs. Rs. Rs. Financial Assets Trade and Other Receivables B 1,370,084,197 1,445,257,217 1,370,084,197 1,445,257,217 Amounts Due from Related Parties B 8,666,291 24,868,022 8,666,291 24,868,022 Short Term Investments B 2,154,735,058 1,235,742,747 2,154,735,058 1,235,742,747 Cash and Short Term Deposits B 1,170,006,576 1,679,843,233 1,170,006,576 1,679,843,233 Total 4,703,492,122 4,385,711,219 4,703,492,122 4,385,711,219 Financial Liabilities Interest Bearing Loans and Borrowings (Non- Current) A 95,801,000 145,805,000 95,801,000 145,805,000 Trade and Other Payables B 825,224,075 1,594,313,491 825,224,075 1,594,313,491 Amounts Due to Related Parties B - 12,041,496 - 12,041,496 Interest Bearing Loans and Borrowings (Current) B 985,796,951 1,888,483,145 985,796,951 1,888,483,145 Rental and Customer Deposits C 932,326,755 2,004,794,046 904,236,270 1,888,487,744 Total 2,839,148,781 5,645,437,178 2,811,058,296 5,529,130,876 108 | Annual Report 2014 Overseas Realty (Ceylon) PLC

related_party_transactions — [table] transaction — 5,315,525

related_party_transactions — [table] transaction — 18. RENTAL AND CUSTOMER DEPOSITS Group Company 2014 2013 2014 2013 Year ended 31 December Rs. Rs. Rs. Rs. Rental Deposits 840,698,153 723,206,316 840,698,153 723,206,316 Customer Deposits 63,538,117 1,165,281,428 - - 904,236,270 1,888,487,744 840,698,153 723,206,316 19. AMOUNTS DUE TO RELATED PARTIES Group Company 2014 2013 2014 2013 Year ended 31 December Rs. Rs. Rs. Rs. Relationship Mireka Capital Land (Pvt) Ltd Subsidiary - - 4,566,519 962,945 Shing Kwan Investment Lanka (Pvt) Ltd Fellow Subsidiary - 11,150,306 - 11,150,306 Management Corporation Condominium Plan 1824 Other Related Party - 891,190 - - Mireka Homes (Pvt) Ltd Sub-Subsidiary - - 91,112 - - 12,041,496 4,657,631 12,113,251 20. DIVIDENDS PAID AND PAYABLE Group/ Company 20.1 Declared and Paid during the Year 2014 2013 Year ended 31 December Rs. Rs. Equity Dividends on Ordinary Shares - Final dividend for 2013 Rs.1.45 : (2012- Rs. Rs.0.30 ) 1,223,052,321 253,045,308 1,223,052,321 253,045,308 20.2 Dividends Payable as at the end of the Year Dividends on Ordinary Shares Unclaimed 5,315,525 2,896,163 5,315,525 2,896,163 98 | Annual Report 2014 Overseas Realty (Ceylon) PLC

related_party_transactions — [table] transaction — 13. STATED CAPITAL 13.1 Stated Capital as at 31 December 2014 2013 Year ended 31 December Rs. Rs. 10,186,085,405 10,186,085,405 13.2 Number of Ordinary Shares 2014 2013 Year ended 31 December Number Number Balance as at 1 January 843,484,359 843,484,359 Issues during the Year - - Balance as at 31 December 843,484,359 843,484,359 14. RESERVES Group/Company 14.1 Revaluation Reserve 2014 2013 Year ended 31 December Rs. Rs. Balance as at 1 January 238,875,211 216,070,713 Surplus during the Year 25,648,180 22,804,498 Balance as at 31 December 264,523,391 238,875,211 14.2 Revaluation Reserve represents the surplus related to the regular revaluation as explained in Note 6.3. 15. SHORT TERM INVESTMENTS 15.1 Investments in Money Market Funds Group/ Company As At Fair Value As At 01.01.2014 Additions (Gain)/ Loss 31.12.2014 Year ended 31 December Rs. Rs. Rs. Rs. Namal High Yield Fund 316,246,003 295,000,000 35,495,721 646,741,724 Ceybank Saving Plus 469,527,814 295,170,452 (1,563,613) 763,134,653 Eagle Money Plus Fund 449,968,930 250,000,000 44,889,751 744,858,681 1,235,742,747 840,170,452 78,821,859 2,154,735,058 15.1.1 Fair values of the Investments in Money Market Funds are ascertained annually using the unit prices of each Trust Funds.These investments are carried in the statement of financial position at fair value with changes in fair value recognised in finance income or finance costs in the income statement as disclosed in note 22.2. 94 | Annual Report 2014 Overseas Realty (Ceylon) PLC

related_party_transactions — [table] transaction — Year ended 31 December

related_party_transactions — [table] transaction — Group Company Note 2014 2013 2014 2013 Rs. Rs. Rs. Rs. ASSETS Non-Current Assets Investment Property 5 21,404,872,807 20,389,314,845 21,404,872,807 20,389,314,845 Property, Plant and Equipment 6 1,559,111,409 703,213,131 338,456,150 310,909,887 Intangible Assets 7 13,799,438 17,733,849 5,004,574 8,938,985 Investments in Subsidiaries 8 - - 1,125,010,040 1,125,010,060 Inventories 10.1 2,124,582,326 1,785,310,418 - - Deferred Tax Assets 9 27,170,393 41,162,226 23,613,326 39,474,180 25,129,536,373 22,936,734,469 22,896,956,897 21,873,647,957 Current Assets Inventories 10.2 424,017,954 3,565,111,491 19,230,387 20,172,103 Trade and Other Receivables 11 1,378,720,419 1,448,311,077 355,457,085 339,987,739 Amounts due from Related Parties 12 8,666,291 24,868,022 12,058,039 51,836,889 Income Tax Recoverable 9,940,543 2,045,450 131,163 - Short Term Investments 15.1 2,154,735,058 1,235,742,747 2,154,735,058 1,235,742,747 Cash and Short Term Deposits 21 1,170,006,576 1,679,843,233 792,836,167 1,492,280,729 5,146,086,841 7,955,922,020 3,334,447,899 3,140,020,207 Total Assets 30,275,623,214 30,892,656,489 26,231,404,796 25,013,668,164 EQUITY AND LIABILITIES Equity Attributable to Equity Holders of the Parent Stated Capital 13 10,186,085,405 10,186,085,405 10,186,085,405 10,186,085,405 Revaluation Reserve 14 264,523,391 238,875,211 264,523,391 238,875,211 Retained Earnings 15,477,908,704 13,749,921,664 14,441,644,747 13,230,443,943 25,928,517,500 24,174,882,280 24,892,253,543 23,655,404,559 Non-controlling Interest 1,507,482,118 1,147,341,548 - - Total Equity 27,435,999,618 25,322,223,828 24,892,253,543 23,655,404,559 Non-Current Liabilities Interest Bearing Loans and Borrowings 15.2 95,801,000 145,805,000 95,801,000 145,805,000 Post Employment Benefit Liability 16 21,274,742 17,666,428 8,352,270 17,666,428 Total Non-Current Liabilities 117,075,742 163,471,428 104,153,270 163,471,428 Current Liabilities Trade and Other Payables 17 825,224,075 1,594,313,491 334,322,674 386,870,711 Rental and Customer Deposits 18 904,236,270 1,888,487,744 840,698,153 723,206,316 Amounts due to Related Parties 19 - 12,041,496 4,657,631 12,113,251 Interest Bearing Loans and Borrowings 15.2 985,796,951 1,888,483,145 50,004,000 50,004,000 Income Tax Payable 1,975,033 20,739,194 - 19,701,736 Dividends Payable 20 5,315,525 2,896,163 5,315,525 2,896,163 Total Current Liabilities 2,722,547,854 5,406,961,233 1,234,997,983 1,194,792,177 Total Liabilities 2,839,623,596 5,570,432,661 1,339,151,253 1,358,263,605 Total Equity and Liabilities 30,275,623,214 30,892,656,489 26,231,404,796 25,013,668,164 I certify these Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007. Roschen Perera Group Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board by, H. Z. Cassim A. M. de S. Jayaratne Director Director The accounting policies and notes on pages 65 through 111 form an integral part of the financial statements. 27th January 2015 Colombo 60 | Annual Report 2014 Overseas Realty (Ceylon) PLC

related_party_transactions — [table] transaction — - 2.89 1.78 28.66 21.30 13.90 1.80 12% 18% 8% 9% 16%

related_party_transactions — [table] transaction — 30,894

related_party_transactions — [table] transaction — 5,406

related_party_transactions — [table] transaction — 163 1,594 1,889 1,888 - 12 20 3

related_party_transactions — [table] transaction — 25,325