BOARD OF DIRECTORS

Under the Company’s Articles, and in accordance with the laws of Sri Lanka, the Company’s Board will be authorized to manage the day-to-day business of the Company and to exercise all of its power, without direct participation of the Investors.

The Company’s Board currently has four members, who are:

REALIZATION OF INVESTMENT

The Project will generate cash flows initially from Phase 1 of DBR , Diya Resorts and 20% of the equity in a blue chip Advertising firm “Grant McCain” apart from the estimated income of the above, The fund will intiate Phase 2 of DBR and a few selected other developments related the tourism industry, subjected to the Board of Directors approval. sale of Villas to end-users (signature home owners) and subsequently from the hotel operation and renting of Villas. Proceeds raised from the sale of villas together with the funds raised under this PPM would be invested in the construction of Phase 2, …………..the Hotel and Villas and acquisition of other investments such as. Profit generated from the sale of Villas will be declared as dividends within a period of five years prior to the IPO, thereby giving Investors the average return of ……..% per annum. The realization of the investment will be subject to prevailing market conditions and taxation and repatriation laws, rules and regulations at the relevant time, ACP anticipates that the Company will be able to generate attractive returns for investors. ACP does not anticipate any changes to the current regulations.

The targeted projected total returns are subject to a number of factors, a change in any of which could adversely affect returns. Additionally the ability of the Company to achieve the results will be dependent on market conditions and a number of other factors, which will be beyond the control of …… or the Company. Because of such uncertainties, actual results are likely to be different, and such differences could be significant. Accordingly, investors should not place undue reliance on the projections contained herein and …… and the Company make no representation or warranty that any such projected returns will, in fact, be achieved.

EXIT STRATEGY

The project promoters of “CDF” are expecting to offer the potential investors to exit the investment through an Initial Public Offer (IPO), where the project promoters are contemplating on obtaining flotation in an appropriate and recognized stock exchange within a period of five years. This would give the potential investors the option to exit the investment by realizing the prevailing market value of the investment once the company is listed. Currently the project promoters are in discussions with investment banks to explore the possibility of listing the company in the London Stock Exchange. ………………………………., a leading investment bank in the United Kingdom is presently engaged in dialogue with the Company for this purpose.

TOURISM INDUSTRY OVERVIEW

COMPARABLE INTERNATIONAL ISLAND RESORTS

The concept of DBR was developed considering the concepts implemented in Maldives and in Bali, where DBR firmly believes that a direct relationship could be established between the tourists and the destination. This would be initiated by creating an individual brand presence on the tourist destination by emphasizing on the location. Since the influence of concepts implemented in Maldives and in Bali was considered in developing the concept of DBR, an evaluation of the tourism industry and resort operations in Maldives and in Bali with an evaluation of resort facilities in Seychelles were considered in evaluating direct competition for DBR.

Maldives

Maldives is a renowned tourist destination world-wide which entered the tourism industry with very humble beginnings in the 1970s when a small group of Italian travelers came to Maldives.

Maldives Islands are strategically located 73 degrees east of the equator and only about 700 kilometers (435 miles) away from southwest of Sri Lanka. The Maldives Islands comprises of roughly 1190 small coral islands, and covers a total area of 104,000sq.Kilometers. The islands are grouped into nineteen administrative ‘atolls’, and vary in size and character. Some are sandbanks, while others are tropical islands, with lush vegetation, ringed with coral reefs, turquoise lagoons full of marine life, and white sandy beaches.

Tourism is the largest economic industry in the Maldives, as it plays an important role in earning foreign exchange revenues and generating employment in the tertiary sector of the country. It has enabled the nation of 369,000 people to emerge as the richest in South Asia, with a per capita income of 3,400 dollars.

Occupancy levels in Maldives vary based on resort quality and the distance from the airport, in 2004 the occupancy levels reached 84% & in 2006 it was 82%. The total tourist bed nights increased from 5.11 million bed nights in 2004 to 6 million bed nights in 2006.

Tourist arrivals in Maldives rose to 12.3%, which was more than what was projected in 2007 and it was the highest ever as tourist arrivals reached 675,889 in 2007 compared with 601,860 in 2006. This increase was mainly due to the improvements made in the infrastructure in tourist resorts in Maldives.

In tourist arrivals United Kingdom ranked top in 2007 with 125,158 tourist arrivals, followed by Italy with 117,246 tourists. Third highest was Germany with 72,269 tourists. The average stay of a tourist has increased to 8.5 days for 2007 from 8.0 days in 2006.

Tourism revenues grew 10% in 2007, contributing $240 million or 28% of GDP. That compared to sector growth of 45% the previous year as arrivals recovered from the impact of the 2004 tsunami.

Maldives is a magnet for up market tourists, where guests pay up to 14,500 dollars a night to scuba dive and sleep in wooden cabins built over turquoise blue waters. Therefore “Up-market” hotels in Maldives have performed extremely well in the last several years with some hotels achieving average room rates in excess of US$ 1,000 per night.

Multinational companies and hoteliers like Hilton Hotels, Club Med, Four Season, Banyan Tree and One and Only, etc… run and manage resorts in the Maldives at present by charging comfortable high end rates.

The salient facts of leading resort operations in Maldives considering number of rooms, occupancy levels, room rates and market shares can be summarized as below,

Bali – Indonesia

Bali having being considered as one of the most popular tourist destinations in the world, offers beautiful beaches, lust forests, spectacular landscape gardens and a tropical climate for the visiting tourists. Being among 17,500 islands across the Indonesian archipelago, Bali is one of the 33 provinces of the Republic of Indonesia.

This tourist destination is situated between Java and Lombok, the island of Bali is located 8 to 9 degrees south of the equator with the Java Sea to the North and the Indian Ocean to the South. Bali covers an impressive land area of 5,636 km2. This has a population of over 3,000,000 spread over the whole island, where Agriculture is the largest employer in the nation while Hotel and Tourism Industry is ranked second.

Tourism is one of the largest economic industries in Bali, as it is significantly contributing in earning foreign exchange revenue, Tourist arrivals to Bali increased by 32% in 2007 compared to tourist arrivals in 2006, where tourist arrivals reached 1,664,854 in 2007 from 1,260,317 in 2006.

On average hotel occupancy levels in 2007 in Bali were around 70% and demonstrated a strong growth of 80% in “Revenue per Available Room” from many hotels over the same period.

In tourist arrivals to Bali, Japan ranked top in 2007 with 351,604 tourist arrivals, followed by Australia with 204,421 tourists, while third highest arrivals were from Taiwan with 138,842 tourists.

Overview of direct tourist arrivals to Bali by Region in 2007 can be summarized as below,

Statistics
Tourist arrivals to Bali during January to March 2008 demonstrated an increase of 28.71% compared with the same period in the previous year, where in 2007 the number of direct arrivals to Bali in January to March was 346,942 while in 2008 the number of direct arrivals to Bali in January to March was 446,553.

Resort Operations in Bali
Bali can be identified as a leading resort destination for up market tourists, where leading hoteliers such as Four Seasons, Ritz-Carlton, Aman Resorts can be seen in offering resort facilities targeting the high end tourists.

An overview of the tourism offerings made by leading resorts in Bali is summarized as below,

Seychelles

Overview of tourism offerings made by leading resorts in Seychelles is indicated as below,

Global Tourism Trend

The WTO’s Tourism 2020 Vision forecasts that international arrivals are expected to reach over 1.56 billion will be intraregional and 0.4 billion will be long-haul travelers. The total tourist arrivals by region shows that by 2020 the top three receiving regions will be Europe (717 million tourist), East Asia and Pacific (397 million) and the Americans (282 million), followed by Africa, the Middle East and South Asia.

East Asia and the Pacific, South Asia, the Middle East and Africa are forecasted to record growth at rates of over 5% per annum compared to the world average of 4.1%. The more mature regions Europe and Americas are anticipated to show lower than average growth rates. Although there will be a decline from 60% in 1995 to 46% in 2020.

Licences and certifications

Due to recent scams on the internet, VII Licenses will only be issued to clients only.