Annual Report: 2021
The document is Bharat Hotels Limited's Annual Report for 2020-2021. It presents the Directors' report on the company's business, operations, and audited financial statements for the year ended March 31, 2021.
Financial Highlights: The report provides a comparison of key financial figures on a standalone and consolidated basis, showing significant declines due to the COVID-19 pandemic. Key metrics include:
Operational Performance & State of Company's Affairs: The company experienced an unprecedented decline in revenue and losses due to the COVID-19 crisis, which severely disrupted business operations in the first half of the year. Hotels pan-India faced reduced operating cash flows, pressuring liquidity. Cost optimization efforts enabled positive EBITDA despite lower revenues. Strategic initiatives, including consolidation of units and discontinuation of unprofitable operations, were undertaken. The company restructured existing borrowings under RBI guidelines.
Management Analysis: Domestic travel, weddings, social and leisure sectors are showing signs of recovery. However, the corporate segment's response is uncertain. The COVID-19 pandemic continues to impact business operations through lockdowns and travel bans. Management is focused on cost-saving initiatives. The hotel industry in the Asia Pacific region is expected to rebound faster than others. The company is closely monitoring developments and adapting its strategy. Risk assessment was carried out with no foreseeable disruption in raw material supplies or recoverability of assets. Internal audits provide positive assurance.
Dividend: Due to business losses and the need to conserve cash, the Board of Directors did not recommend any dividend for the financial year 2020-21.
Reserves and Unclaimed Dividends: No amount was transferred to the General Reserve during the year. Unclaimed dividends up to the financial year ended March 31, 2013, and related shares have been transferred to the Investor Education and Protection Fund Authority (IEPF). Reminders are sent to shareholders to claim their dividends. The unclaimed dividend of Rs. 280,001/- for the financial year 2012-13 and 24,032 equity shares were transferred to IEPF.
Events Subsequent to the Date of Financial Statements: The second wave of COVID-19 in mid-April 2021 has significantly affected the company's profitability, fund flow, and liquidity. Hotels continued to be partially closed even after the financial year 2020-21. Measures are in progress to optimize costs and improve operational performance, although the pace of business revival is expected to be slow.
Board of Directors: The Board comprises nine directors, including the Chairperson & Managing Director, three Executive Directors, one Non-Executive Director, and four Independent Directors. Changes in director positions, including resignations and re-appointments, are detailed.
Committees of the Board: The report details the composition and meetings of the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility (CSR) Committee.
Corporate Social Responsibility (CSR): The Board approved the CSR Policy, with activities including food/ration distribution and preventive health care to needy communities during the COVID-19 pandemic.
Awards & Recognitions: The company and its properties received awards and recognitions, including for LGBTQ-friendly hotels and overall service.
Policies & Compliance: The report outlines various policies, including Vigil Mechanism Policy, Risk Management Policy, Policy on Directors' Appointment and Remuneration, and Internal Financial Controls. The company has complied with applicable Secretarial Standards issued by the Institute of Company Secretaries of India.
Financial Statements & Auditors' Report: The report includes standalone and consolidated financial statements, along with the Independent Auditor's Report. The auditors have drawn attention to matters regarding the termination of the license deed of The Lalit New Delhi and the uncertainties relating to the COVID-19 pandemic. There are qualifications regarding compliance with tax regulations, and delayed payment of certain statutory dues. The auditor expresses an unmodified opinion on the internal financial controls. Annexures to the report contain additional details on meetings, CSR activities, and other required disclosures. Details of all borrowings as well as their repayment terms are mentioned and secured with company's asset's in various locations.
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