Board Meeting Outcomes

The Board of Directors meeting was held on 30th July 2026, commencing at 5:30 PM and concluding at 8:55 PM. The Board inter-alia considered and approved the following:

  • The unaudited financial results (Standalone and Consolidated) for the first quarter ended 30th June 2026, along with the Limited Review Report of the Statutory Auditors.
  • Mr. Luv Malhotra, Managing Director of the Company, was selected to chair this Board Meeting and will also chair the 47th Annual General Meeting (AGM).
  • The Annual Report for the Financial Year 2025-26.

Financial Results Summary (Quarter ended 30th June 2026)

All figures are in INR Lacs.

Standalone Performance

  • Total Income: ₹2,450.77
  • Revenue from Operations: ₹2,124.03
  • Other Income: ₹326.74
  • Total Expenses: ₹2,113.96
  • Consumption of Provisions & others: ₹212.63
  • Employee benefit expense: ₹651.91
  • Finance Costs: ₹0.30
  • Depreciation and amortisation expense: ₹99.34
  • Operational Expenses: ₹1,081.35
  • Profit before tax: ₹405.25
  • Tax Expense: ₹110.85
  • Current Tax: ₹105.59
  • Deferred Tax: ₹5.26 (credit)
  • Net Profit for the period: ₹294.40
  • Earnings Per Share (EPS) Basic & Diluted: ₹0.54
  • Paid-up equity share capital (face value ₹2 each): ₹1,096.37

Consolidated Performance

  • Total Income: ₹4,969.86
  • Revenue from Operations: ₹3,475.79
  • Other Income: ₹1,494.08
  • Total Expenses: ₹3,845.22
  • Consumption of Provisions & others: ₹370.34
  • Employee benefit expense: ₹1,014.62
  • Finance Costs: ₹494.81
  • Depreciation and amortisation expense: ₹428.74
  • Operational Expenses: ₹1,636.70
  • Profit before tax: ₹1,124.65
  • Tax Expense: ₹110.85
  • Current Tax: ₹105.59
  • Deferred Tax: ₹5.26
  • Net Profit for the period: ₹1,013.80
  • Other Comprehensive Income: ₹3,692.84
  • Includes a revaluation surplus of fixed assets of ₹52,688.04 and foreign currency translation adjustments.
  • Total Comprehensive Income for the period: ₹4,706.64
  • Earnings Per Share (EPS) Basic & Diluted: ₹8.40
  • Paid-up equity share capital: ₹1,096.37
  • Minority Interest: ₹4,422.21
  • Reserves excluding revaluation reserve: ₹36,643.64

Key Notes to the Financial Results

  • The results were reviewed by the Audit Committee and taken on record by the Board.
  • The Company operates in one segment only and has no separate reportable segments under Ind AS-108.
  • The figures have been regrouped/rearranged wherever necessary.

EXIM Bank Loan and Litigation Update (Note 5)

  • CJSC CHL International, a subsidiary, had availed a term loan of USD 32.50 million from Export Import Bank of India (EXIM Bank) for constructing a five-star hotel in Dushanbe, Tajikistan.
  • CHL Limited and the late Dr. L K Malhotra had provided Corporate and Personal Guarantees, respectively, to secure this loan.
  • EXIM Bank filed an application against CHL Limited (the Corporate Guarantor) before the NCLT, Delhi, which was dismissed. This dismissal was upheld by the NCLAT.
  • EXIM Bank has challenged the NCLAT judgement via a Civil Appeal before the Hon'ble Supreme Court of India, which is pending adjudication.
  • EXIM Bank also filed an original application claiming USD 44,611,207 plus interest against CHL Ltd and the late Mr. Lalit Malhotra before the Debt Recovery Tribunal-III (DRT-III), New Delhi. The next hearing date is 18th August 2026.
  • During the pendency of these cases, a One Time Settlement (OTS) was executed between EXIM Bank, the Principal Borrower, and the Guarantors. This OTS, dated 29th May 2026, crystallized the liability of CJSC CHL International at USD 34 million. The OTS was under execution as of the quarter ended 30th June 2026.
  • Based on this OTS, EXIM Bank has filed applications in the pending DRT cases (Transfer Application No. 221 of 2022 and 224 of 2022) to bring the settlement on record.

Foreign Exchange Impact (Note 6)

  • During the quarter, the subsidiary CJSC CHL International recognized a foreign exchange gain of INR 11.40 Crore (₹1,140 Lacs) due to the appreciation of the Tajikistani Somoni (TJS) against the US Dollar (USD), reducing its foreign currency-denominated liabilities. This non-operating gain was booked under Other Income with no cash flow impact.
  • In accordance with Ind AS-21, the subsidiary also recognized a foreign currency translation adjustment of INR 35.92 Crore (₹3,592 Lacs) from converting Assets and Liabilities (excluding Equity Share Capital) from Somoni to Indian Rupees. As this does not lead to an actual gain or loss, it was shown under "OCI-Foreign Currency Translation Reserves."

Auditor's Emphasis of Matter

  • The auditor's limited review report highlights the EXIM Bank loan litigation as an Emphasis of Matter.
  • It notes that the OTS crystallizing the liability at USD 34 million is under implementation, based on an EXIM Bank approval letter dated 23.11.2023 and a judgement from the Economic Court of Dushanbe dated 12.12.2023 (Case No. 52/2023).
  • The auditor's conclusion on the financial statements is not modified in respect of this matter.

Subsidiary Information

  • The consolidated results include the subsidiary CJSC CHL International.
  • The subsidiary's financial statements, reviewed by another auditor, reflect total assets of ₹856.82 crores (including a revalued building of ₹525.28 crores) and total revenue of ₹25.19 crores for the quarter ended 30th June 2026.