Financial Performance (Quarter Ended June 30, 2026)
- Net Sales/Income from operations: ₹0.00 lakh (zero revenue)
- Other income: ₹0.23 lakh
- Total income: ₹0.23 lakh
- Total expenses: ₹71.45 lakh
- Loss before tax: ₹71.45 lakh
- Tax expenses: ₹0.00 lakh
- Loss for the period: ₹71.45 lakh
- Total comprehensive income: ₹(71.45) lakh
- Paid-up equity share capital: ₹3,196.41 lakh (face value ₹10 per share)
- Reserves: ₹(5,404.16) lakh
- Earnings per share (Basic): ₹(0.22)
- Earnings per share (Diluted): ₹(0.22)
Comparative Financials
- Previous quarter (March 31, 2026): Loss of ₹699.84 lakh
- Same quarter previous year (June 30, 2025): Loss of ₹44.22 lakh
- Previous financial year (March 31, 2026): Loss of ₹850.03 lakh
Debt Settlement and Asset Sales
The company's account was categorized as NPA by Allahabad Bank and Andhra Bank in 2014. In April 2017, these banks assigned the debts to M/s. RARE Asset Reconstruction Limited (formerly Raytheon Asset Reconstruction Private Limited) under SARFAESI Act.
- The company opted for One-Time Settlement and received in-principle approval in March 2021, followed by final approval
- Total repayment to ARC as of March 31, 2026: ₹100.76 crore from asset sales
- Additional repayment during current quarter: ₹15.19 crore from advance received on sale of hotel at Tiruppur
- As of results date: Full repayment completed and No Due Certificate obtained from ARC
Statutory Liabilities Payment
- Paid earlier year dues: PF, Sales Tax, TDS totaling ₹27.95 lakh
- Remitted GST: ₹22.02 lakh
- Current period payments: PF ₹4.76 lakh, Interest on TDS ₹2.32 lakh
- All known statutory liabilities paid except disputed amounts pending with statutory authorities
Operational Status and Going Concern
- Company suspended all revenue-generating operations effective March 24, 2020
- Exploring options to sell part or all revenue-generating assets to settle liabilities
- Ability to continue as going concern dependent on asset sale realization and surplus after liability settlement
- Impairment to asset value not ascertainable due to uncertainty on realizable values
Segment Information
- Single reportable business segment: Operation and running of Hotels (Ind AS 108)
- Single geographical segment: India
- All assets located in India
- Operating results monitored as one single segment
Accounting Policies and Notes
- Financials prepared in accordance with Indian Accounting Standards (Ind AS)
- Adopted IndAS-116-Leases effective April 1, 2019 (no material impact)
- Confirmation of balances not obtained for Loans and Advances and Sundry Creditors (stated at book values)
- No provision for Gratuity/Leave encashment as all employees except KMP have resigned
- No provision for Deferred Taxes due to accumulated losses and uncertainty of future profits
- Pending litigations with bankers and statutory authorities remain status quo except Sales Tax demand remitted
Labour Code Implementation
- Government consolidated labour regulations into four Labour Codes effective November 21, 2025
- Company assessed incremental impact as not significant due to existing policy alignment with draft code
- Impact of notified rules to be evaluated when available
Auditor's Review Report
Krishaan & Co., Chartered Accountants issued limited review report pursuant to Regulation 33 of SEBI LODR Regulations, 2015:
- Conducted review in accordance with SRE 2410
- Drew attention to going concern uncertainty due to suspended operations and dependency on asset sales
- Noted statutory liability payments made except disputed amounts
- Based on review, financial results comply with disclosure requirements without material misstatement