Financial Results Summary

Quarter Ended September 30, 2026:

  • Net Sales/Income from operations: ₹0.50 lakh
  • Total Income: ₹0.50 lakh
  • Total Expenses: ₹9.01 lakh
  • Exceptional Items (net credit): ₹435.13 lakh
  • Loss before tax: ₹(444.15) lakh
  • Tax expenses: ₹314.96 lakh (Deferred tax credit)
  • Net Loss for quarter: ₹(129.19) lakh
  • Basic EPS: ₹(0.39)
  • Diluted EPS: ₹(0.39)

Six Months Ended September 30, 2026:

  • Net Sales/Income from operations: ₹3.33 lakh
  • Total Income: ₹3.33 lakh
  • Total Expenses: ₹80.46 lakh
  • Exceptional Items: ₹435.13 lakh
  • Loss before tax: ₹(515.60) lakh
  • Tax expenses: ₹314.96 lakh
  • Net Loss for period: ₹(200.64) lakh
  • Basic EPS: ₹(0.61)
  • Diluted EPS: ₹(0.63)

Capital Structure

  • Paid-up equity share capital: ₹3,196.41 lakh (face value ₹10 per share)
  • Reserves (excluding revaluation reserves): ₹(5,528.81) lakh
  • Total equity: ₹(2,332.40) lakh

Key Operational Notes

1. Suspended Operations: The company suspended all revenue-generating operations effective March 24, 2020. The company is exploring options to sell part or all of its revenue-generating assets to settle liabilities.

2. Loan Settlement: The company's accounts were categorized as NPA by Allahabad Bank and Andhra Bank in 2014. In April 2017, the banks assigned the debts to RARE Asset Reconstruction Limited. The company opted for One-Time Settlement and received final approval. The company has remitted ₹100.76 crore to ARC up to March 31, 2026, from asset sales. During the period, the company additionally repaid ₹15.19 crore from the sale of Hotel at Tiruppur. As of the results date, the company has fully repaid the loan and obtained a No Due Certificate from ARC.

3. Going Concern Uncertainty: The company's ability to continue as a going concern depends on the value generated from asset sales and surplus available after liability settlement. Due to uncertainty on realizable values, impairment to asset values is not ascertainable.

4. Segment Reporting: The company has only one reportable business segment (Operation and running of Hotels) and one geographical segment (India).

5. Employee Benefits: No provision for Gratuity/Leave encashment has been considered as all employees except KMP have resigned and there are no eligible employees during the period.

6. Deferred Taxes: No provision for deferred taxes has been considered due to accumulated business and depreciation losses with no certainty of future profits.

Auditor's Review

Krishaan & Co., Statutory Auditors, issued a limited review report with emphasis on:

  • The company suspended operations since March 24, 2020
  • Ability to repay debts depends on realization from asset sales
  • Net worth has been eroded, indicating material uncertainty about the company's ability to continue as a going concern
  • Adjustments on account of asset sales are not ascertainable at this juncture

Cash Flow Highlights (Six Months Ended September 2026)

  • Net cash used in operating activities: ₹(2,101.48) lakh
  • Net cash from investing activities: ₹3,716.02 lakh (primarily from sale of fixed assets)
  • Net cash used in financing activities: ₹(1,614.22) lakh (repayment of long-term borrowings)
  • Net increase in cash: ₹0.32 lakh
  • Cash and cash equivalents at period end: ₹1.19 lakh

Assets and Liabilities Position (as at September 30, 2026)

  • Total Assets: ₹1,138.27 lakh
  • Non-current Assets: ₹1,099.82 lakh (primarily Property, plant and equipment: ₹1,047.18 lakh)
  • Current Assets: ₹38.45 lakh
  • Total Liabilities: ₹3,470.67 lakh
  • Non-current Liabilities: ₹3,470.67 lakh
  • Total Equity: ₹(2,332.40) lakh