asian hotels west ltd share price Management discussions

Towards the end of the FY 2019-20, pandemic COVID-19, spread throughout the world at an alarming rate in a matter of a few months. The WHO declared COVID-19 a global pandemic on 11^th March, 2020. The global economy was already not in a very good shape, COVID-19 further aggravated the stress, impacting growth rates even further by bringing ordinary life to a standstill. Along with the manufacturing sector and industries such as real estate, construction, automotive, luxury retail, etc. travel and tourism, that includes hospitality, airlines, cruise liners, road and railway transport, travel and tour operators have taken a major impact of the pandemic.

The tourism industry has been affected both in terms of the demand for its products and its people. The governments response to the situation, which includes social distancing norms, global travel advisories, banning of International Flights, suspension of visas, prohibition against mass gatherings, cancellation of sporting and cultural events, halting of interstate transport, railways, etc. has impacted the hospitality industry.

INDIAN ECONOMY (Pre Covid-19)

The IMF had revised Indias growth rate to 4.2% in 2019 in the World Economic Outlook released in January, 2020, from its earlier projection of 6.8%. A sharp decline in domestic consumption and private investment, stress caused by the liquidity crisis at Non-Banking Financial Companies (NBFCs) and weakening credit growth had prompted the revision. Sluggish global growth caused by the downturn in manufacturing, trade and demand had also adversely impacted the Indian economy. However, the services sector continued to outperform the industrial and agricultural sectors in terms of gross value added (GVA), with service exports outperforming goods exports in the recent years. The governments fiscal stimulus through the lowering of corporate tax rates, merger of public sector banks, focus on manufacturing, support for affordable housing, together with the Reserve Bank of Indias monetary stimulus through the reduction in policy rates, and subdued oil prices were expected to propel the Indian economy. (Source: Economic Survey 2019-20)

Indian Economy Outlook: The Indian government has announced a series of fiscal stimulus packages and subsidies to support small and medium-sized enterprises, farmers, migrant labour, etc. It has also introduced six-month moratoriums on loans through banks, automatic collateral-free loans to small businesses, reduced withholding tax rates and extended payment due dates. The RBI too has announced a series of monetary measures to mitigate the risk of a liquidity crisis during economic recovery apart from reducing lending rates to offset a likely credit crunch. RBI recently announced one time restructuring for the Companies affected by Covid, however policy guidelines from banks are still awaited. In the post-COVID-19 scenario, Indias growth rate for 2020 was projected by the IMF in April, 2020 at 1.9%, assuming that the pandemic is brought under control and containment efforts can be gradually scaled back, restoring consumer and investor confidence. However, a recent World Bank Report projects Indias economy to shrink by 3.2% in the current fiscal due to the coronavirus halting economic activity, the COVID-19 pandemic and the multiphased lockdown imposed to control the spread. (Source: IMF World Economic Outlook, May 2020 and World Bank Global Economic Prospects, June, 2020).

Recent Developments

India saw a steep decline in its growth rate in the July-September quarter of 2019, when Gross Domestic Product (GDP) was at its lowest in 7 years at 4.5 percent. Several sectors such as real estate, aviation, automobile and construction sectors suffered a constant decline in demand.

To revive the Indian economy and improve its growth rate, the Central Government announced and undertook several measures and initiatives.

• With an aim to take Indian Economy to USD 5 billion by 2024, the budget re-initiates disinvestment of Air India, strengthens NBFCs, offers incentives for startups and MSMEs, suggests a merger of Bank, eases the tax compliance norms and focuses on overall infrastructural development.

• Merger of 10 Banks: Finance Minister announced the merger of 10 public sector banks (PSBs) into four. Once the merger gets completed, India will have 12 Public Sector Banks from 27 Public Sector Banks in 2017.

• Exemption from Angel Tax for Start-Ups: In order to encourage investments in Start-Ups, the Central Government approved exemption of Start-ups from the ‘Angel Tax under the Income Tax Act, 1961. The registered startups have been exempted from the Angel tax on funding or investment of up to Rs 25 crore. Before this, the limit was Rs 10 crore.

• Disinvestment of 33 CPSEs: The Central Government approved the disinvestment of 33 Central Public Sector Enterprises (CPSEs) in the year 2019. These 33 CPSEs include big names such as Air India, Pawan Hans, Bharat Petroleum and others.

• Home/Auto Loans to get cheaper; RBI asks Banks to adopt Repo-linked Interest Rates: Reserve Bank of India (RBI) had mandated all the banks to link the new Personal, Retail, Housing, Auto and MSMEs loans to the External Benchmark based Rate with effect from October 1, 2019. The move aims to ensure faster transmission of Policy rate cuts to loan borrowers.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

India is a tourism hotspot, given its diverse landscape, rich cultural heritage, and the opportunities it offers to businesses with its start-up culture and availability of a young, educated workforce. During 2019, foreign tourist arrivals (FTAs) in India stood at 10.9 million, an increase of 3.2% over 2018. Of this, 2.9 million tourists arrived on e-tourist visa as compared to 2.4 million during 2018, registering a growth of 21%.

INDIAN HOSPITALITY OUTLOOK (POST-COVID-19) - The Indian hospitality industry is undoubtedly one of the biggest casualties of the COVID-19 outbreak as demand has declined to an all-time low. Occupancy across hotels in key cities is declined by a staggering 45 percentage points compared to the previous year. Such a steep decline in such a short period of time has never been witnessed by the sector.

FTA footfall in India, particularly that of leisure travelers, started softening in February 2020, as COVID-19 spread across the globe, resultinng into banning of International Flights. Although domestic flights resumed in June 2020, the restrictions on the entry of international travelers means that FTA is not about to pick up any time soon. The situation may not improve drastically for the hospitality sector. Except for the smaller-sized hotels, which are now covered under the MSME (micro, small and mediumsized enterprises) the hospitality sector in India has not benefited from the stimulus packages rolled out by the government.

F&B, which generally provides sustainable revenues to the Indian hospitality industry, is likely to see lower revenues in a post-COVID-19 environment. Seating capacity at restaurants is expected to fall in order to provide space for social distancing, which will reduce meal volumes. High street restaurants are likely to suffer the most while restaurants in hotels that enjoy the trust of patrons and meet their safety and hygiene concerns may see a higher footfall.

Government initiatives:

Some of the major initiatives taken by the Government of India to give a boost to the tourism and hospitality sector of India are as follows:

• Ministry of Tourism launches Audio Guide facility App called Audio Odigos for 12 sites of India (including iconic sites).

• Prime Minister urged people to visit 15 domestic tourist destinations India by 2022.

• Statue of Sardar Vallabhbhai Patel, also known as ‘Statue of Unity, was inaugurated in October 2018. It is the highest standing statue in the world at a height of 182 metre. It is expected to boost the tourism sector in the country and put India on the world tourism map.

• Under Budget 2020-21, the Government of India allotted Rs 1,200 crore (US$ 171.70 million) for development of tourist circuits under Swadesh Darshan for eight north-eastern states.

• Under Budget 2020-21, the Government of India allotted Rs 207.55 crore (US$ 29.70 million) for development of tourist circuits under PRASHAD.

• In 2019, Government reduced GST on hotel rooms with tariffs of Rs 1,001 (US$ 14.32) to Rs 7,500 (US$ 107.31) per night to 12 per cent; those above Rs 7,501 (US$ 107.32) to 18 per cent to increase Indias competitiveness as a tourism destination.

2. OPPORTUNITIES, THREATS, RISKS AND CONCERNS

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists. In his Independence speech from Red Fort, Prime Minister Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022 to promote tourism. India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum.

Under the Swadesh Darshan scheme, 77 projects have been sanctioned of worth Rs 6,035.70 crore (US$ 863.60 million). In Union Budget 2020-21, the government has allotted Rs 1,200 crore (US$ 171.70 million) for the development of tourist circuits under Swadesh Darshan for Northeast.

The launch of several branding and marketing initiatives by the government of India such as ‘Incredible India! and ‘Athiti Devo Bhava has provided a focused impetus to growth. The Indian government has also released a fresh category of visa - the medical visa or M-visa, to encourage medical tourism in the country.

The COVID-19 has hit the Indian hospitality sector very hard resulting in significantly low demand, negligible future bookings, and exponential prospective job losses. The coronavirus pandemic could deal a crippling blow to the Indian travel and tourism industry, specially with the government suspending all visas, with the economic impact being assessed to run into thousands of crores of rupees. According to industry chamber CII, this is the one of the worst crises ever to hit the Indian tourism industry impacting all its geographical segments - inbound, outbound and domestic, almost all tourism verticals - leisure, adventure, heritage, MICE, cruise, corporate and niche segments. Lockdown in Mumbai and banning of international flights has effected the operations of the hotel of the Company.

3. SEGMENT WISE PERFORMANCE

During the period under review, the Company is engaged in only one segment of Hotel Business hence segment wise performance is not applicable.

4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has standard operating procedures (SOPs). It has in place adequate reporting systems in respect of financial performance, operational efficiencies and reporting with respect to compliance of various statutory and regulatory matters. The Internal Auditors of the Company had regularly conducted exhaustive internal audits pertaining to all operational areas and their reports were placed before the Audit Committee for its review and recommendations.

5. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE (STANDALONE BASIS). Total Income

The total income during the year under review was 143.12 Crores as against 159.16 Crores during previous Financial Year. Profit before Interest, depreciation, amortization, tax and exceptional items

Your Company has registered PBIDT of 38.53 Crores as against 50.02 Crores during previous Financial Year.

Profit before Tax

Your Company has registered PBT of 2.84 Crores as against 16.58 Crores during previous Financial Year.

Total Comprehensive Income/(loss) after tax

Your Company has registered Comprehensive Income/(loss) after tax of 3.87 Crores as against 26.63 Crores during previous Financial Year.

Key Ratios

Key financial ratios are given below:

Particulars	2019-2020	2018-2019
PBIDT / Turnover (percent)	26.92	31.43
Profit After Tax / Turnover (percent)	2.70	16.73
PBIDT / Finance Cost (no. of times)	1.43	1.91
Debt to Equity	0.68	0.68
Book Value per share (/share)	282.90	281.25
Earnings per share (/share)	3.08	23.00

During the year ended 31st March, 2020, the Company achieved an occupancy rate of 71% (in comparison to the 76% during the Financial Year 2018-19) and the Average room rate was 8,265 (in comparison to ARR at 8,574/- during the previous year).

6. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING - NUMBER OF PEOPLE EMPLOYED

As our Company is part of the hospitality industry the importance of efficient and motivated human resources helps in achieving complete customer satisfaction, which in turn has direct impact on the brand image and turnover of the Company. The Company enjoys harmonious relationship with its employees. The employee strength of the Company, as on 31st March, 2020 was 422.

The Company recognizes the importance of human values and ensures that proper encouragement both moral and financial is extended to employees to motivate them. The senior management team consists of experienced professionals with diverse skills.

7. DETAILS OF SIGNIFICANT CHANGE (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN THE KEY FINANCIAL RATIOS

Particulars	2019-20	2018-19	Explanation
Return on Equity (percent)	1.17	8.13	Drop in Revenue and net profit due to pandemic COVID-19 Impact during February and March 2020. In Previous Year there was reversal of deferred tax liability on conversion of optionally convertible preference shares (OCPS) Invested in subsidiary company "Aria Hotels and Consultancy Services Pvt. Ltd." into equity shares.
Net Profit Margin (%)	2.82	17.89	-do-
Current Ratio	0.57	0.44	Current ratio is increased on account of increase in Cash and Bank Balance.

8. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR

ALONG WITH A DETAILED EXPLANATION THEREOF

Particulars	2019-20	2018-19	Explanation
Return on Equity (percent)	1.17	8.13	Drop in Revenue and net profit due to pandemic COVID-19 Impact during February and March 2020. In Previous Year there was reversal of deferred tax liability on conversion of optionally convertible preference shares (OCPS) Invested in subsidiary company "Aria Hotels and Consultancy Services Pvt. Ltd." into equity shares.

Cautionary Statement

The Statements in the ‘Management Discussion and Analysis Report with regard to projections, estimates and expectations have been made in good faith. The achievement of results is subject to risks, uncertainties and even less than accurate assumptions. Market data and information are gathered from various published and unpublished reports; their accuracy, reliability and completeness cannot be assured.

	For and on behalf of the Board of Asian Hotels (West) Limited
Place: New Delhi	Sushil Kumar Gupta
Date : 25th August, 2020	Chairman and Managing Director (DIN - 00006165)

BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Report of the Company for the Financial Year ended 31st March 2020, pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") in the prescribed format by the Securities and Exchange Board of India ("SEBI") is as under:

SECTION A: GENERAL INFORMATION

1 Corporate Identity Number (CIN) of the Company	L55101DL2007PLC157518
2 Name of the Company	Asian Hotels (West) Limited
3 Registered address	6th Floor, Aria Towers, J.W. Marriott, New Delhi Aerocity, Asset Area 4, Hospitality District, Near IGI Airport, New Delhi-110 037.
4 Website	www.asianhotelswest.com
5 E-mail address	vivek.iain@asianhotelswest.com
6 Financial Year reported	2019-20
7 Sector(s) that the Company is engaged in (industrial activity code-wise)	Hotels, Restaurant, accommodation and related services- 551
8 List three key products, services that the Company manufactures/provides (as in balance sheet)	Hospitality (Hotel)
9 Total number of locations where business activity is undertaken by the Company	The Company has its Business activities and operation in Mumbai.
10 Markets served by the Company	The Company caters to both international and domestic travelers.

SECTION B: FINANCIAL DETAILS

1 Paid up Capital (in Rs.)	11,61,21,010 (Equity)
2 Total Turnover (in Rs.)	143,11,63,000
3 Total profit after taxes (in Rs.)	3,58,78,000
4 Total Spending in Corporate Social Responsibility (CSR) as percentage of profit after tax	2.88%
5 List of activities in which expenditure in Point 4 above has been incurred	• Satyanand Yog Darshan Peeth : Heath (Free Education of Yoga)
	• Earth Saviours Foundation : Hunger (one day Meal)

SECTION C: OTHER DETAILS

1 Does the Company have any Subsidiary Company (ies)?	Yes
2 Do the Subsidiary Company (ies) participate in the BR initiatives of the parent Company? If yes, then indicate the number of such subsidiary company (ies).	No
3 Do any other entity / entities (e.g. suppliers, distributors etc.) that the Company does business with; participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity / entities? [Less than 30%, 30-60%, More than 60%]	No

SECTION D: BR INFORMATION

1. Details of Director/Directors responsible for BR:

(a) Details of the Director/Directors responsible for implementation of the BR policy/policies:

CSR Committee comprising of:

No. Particulars	Details
1. DIN	00015217	00016949	00043525
2. Name	Mr. Sudhir Gupta	Mr. RK Bhargava	Mr. SS Bhandari
3. Designation	Executive Whole Time Director	Independent Director	Independent Director

(b) Details of the BR head:

No. Particulars	Details
1. DIN (if Applicable)	NA
2. Name	Mr. Amit Gupta
3. Designation	Sr. Vice President - Finance
4. Telephone No	022-66961004
5. Email ID	amit.gupta@asianhotelswest.com

2. Principle-wise (as per NVGs) BR Policy/policies

The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business released by the Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These are as follows:

Principle 1: (P1)	Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
Principle 2: (P2)	Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
Principle 3: (P3)	Businesses should promote the well-being of all employees
Principle 4: (P4)	Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized
Principle 5: (P5)	Businesses should respect and promote human rights
Principle 6: (P6)	Businesses should respect, protect and make efforts to restore the environment
Principle 7: (P7)	Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
Principle 8: (P8)	Businesses should support inclusive growth and equitable development
Principle 9: (P9)	Businesses should engage with and provide value to their customers and consumers in a responsible manner

a. Details of compliance (Reply in Y/N)

Principle-wise Policies	P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have a policy/ policies for:	Yes
2. Has the policy been formulated in consultation with the relevant stakeholders?	Yes
3. Does the policy conform to any national / international standards? If yes, specify? (50 words)	The Business Responsibility Policy is in accordance with principle laid down in the NVG on Economic, Social and Environmental responsibilities of Business published by the Ministry of Corporate Affairs.
4. Has the policy been approved by the Board? If yes, has it been signed by MD/ owner/ CEO/ appropriate Board Director?	Yes
	Policies mandated under the Companies Act, 2013 (‘the Act) and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations) are approved by the Board and circulated amongst relevant stakeholders. Other policies are approved by the Managing Director/functional heads of the Company as deemed appropriate from time to time. Business Responsibility Policy is approved by the Board of Directors
5. Does the company have a specified committee of the Board/ Director/ Official to oversee the implementation of the policy?	Yes - CSR Committee
6. Indicate the link for the policy to be viewed online?	Policies are uploaded on the Companys website wwwasianhotelswest.com/policies.
7. Has the policy been formally communicated to all relevant internal and external stakeholders?	Yes - Policies are communicated to all relevant stakeholders through Company website.
8. Does the company have in-house structure to implement the policy/ policies?	Yes
9. Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders grievances related to the policy/ policies?	Yes
10. Has the company carried out independent audit/ evaluation of the working of this policy by an internal or external agency?	The implementation of the Business Responsibility Policy by the Company is being evaluated internally.

b. If answer to the question at serial number 1 against any principle, is ‘No, please explain why: (Tick up to 2 options)

No. Questions	P1 P2 P3 P4 P5 P6 P7 P8 P9
1 The company has not understood the Principles
2 The company is not at a stage where it finds itself in a position to formulate and implement the policies on specified principles
3 The company does not have financial or manpower resources available for the task	NA
4 It is planned to be done within next 6 Months
5 It is planned to be done within the next 1 year
6 Any other reason (please specify)

3. Governance related to BR

(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year

The business responsibility performance will be assessed periodically by the Management/Board of Directors and its Committees.

(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?

This Business Responsibility Report is being published by the Company for the Financial Year 2019-20. It will be made available on the website of the Company. The Business Responsibility Report will be published on an annual basis.

SECTION E: PRINCIPLE-WISE PERFORMANCE

Principle 1 : Businesses should conduct and govern themselves with Ethics, Transparency and Accountability

1. Does the policy relating to ethics, bribery and corruption cover only the Company?

The Company has a Business Responsibility Policy, and internal HR Policy and Companys Whistle Blower Policy which relates to ethics, bribery and corruption. The framework has been set up for the Company and covers dealings with suppliers, customers, business partners and other stakeholders.

2. Does it extend to the Group / Joint Ventures / Suppliers / Contractors / NGOs / Others?

The framework has been set up for the Company and its associates covers dealings with suppliers, customers and other stakeholders.

3. How many stakeholder complaints have been received in the past Financial Year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so -

There were NIL complaints received during the year under review, relating to the hotel unit of the Company.

Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.

As a hospitality Company, the rooms and F&B experience provided to guests is our product and service.

Measures implemented by the Company include the following:

• Cloth bags are used instead of plastic bags for collecting and delivering guest laundry, dry cleaning and pressing.

• Reduce waste with key focus on single use disposables, use of bio-degradable garbage bags.

• Detergents used require less water to rinse out of the fabric and are therefore water efficient.

• Guests are encouraged to adopt environment conscious practices like changing usage of bed linen and towels during their stay.

• Garden irrigation is carried out through recycled water.

• All laundry chemicals are bio-degradable.

• Responsible sourcing of food considering animal welfare, plant forward efforts.

2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product (optional):

The consumption of energy, water and other resources in our hotel is measured per guest night, in terms of usage per consumer. The Company focuses on optimizing resource consumption to avoid wastages and minimize our environmental impact.

Company recycled a total of 72,527 KL of water throught onsite waste water treatment plants.

(i) Reduction during sourcing/production/distribution achieved since the previous year throughout the value chain?

During the year under review, 83 % of the total power consumed by the Company, was from renewable resources.

The steps implemented to improve resource efficiency and strengthen sustainability in the development and operation of our hotel includes usage of advance laundry chemical, chiller plant optimization which increases energy efficiency and replacing of Air handling units (AHUs) and Treated Fresh air units (TFAs)which are energy efficient.

The Company has implemented advanced BMS (building management system) and always maintain low approach temperature for condenser to increase overall efficiency of the chiller plant. Also, Electrolytic Control motors (EC/DC Motors) are being installed to replace Variable Frequency Drives (VFD) for the Air Handling Units (AHU) & Treated fresh air unit (TFAs). The Companys property is designed to treat 100% wastewater through STP, where Sewage Treatment Plant is treated through a combination of Sand, carbon and resin -Filtration system, resulting in water that is odor free and reusable for irrigation.

Company has decided to phase out single use plastic items and replacing them with biodegradable options. Plastic wrappers for dry room amenities are being replaced with paper wrapping.

(ii) Reduction during usage by consumers (energy, water) has been achieved since the previous year?

Yes, as result of the energy conservation initiatives undertaken by the Company, there was a reduction in electricity consumption during the Financial Year 2019-20. Also, water resources are being conserved through diligent measures which are implemented and continuously improved.

Recycling of water through Sewage Treatment Plant and use of Filtration systems, resulting in reduction of dependency and consumption of fresh water.

The following measure undertaken by the Company to improve efficiency of natural resources and strengthen sustainability:

• Heat pump units are installed for hot water generation.

• CFL lamps and cold cathodes are replaced with energy efficient LED lamps.

• Heat pipe installed for Treated fresh air unit (TFA).

• EC Motors for all new air handling units to lower power consumption of fan units.

• VFD controls with pressure transducers for secondary chilled water system.

• Carbon dioxide sensors for Fresh Air Monitoring in car parking areas.

• Guest room installed with energy efficient dual mode thermostats for better energy management for unoccupied rooms.

• Chiller plant fitted with variable primary & condenser system and energy efficient cooling tower system.

• All faucets are fitted with aerators (flow regulators) to reduce water consumption.

• Installation of energy efficient steam traps on boiler water lines.

3. Does the company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.

The Company has made strategies and engages with the hotel operator to ensure sustainable consumption of energy, water and other resources at its Hotel and is continuously exploring initiatives to increase this. Some of the initiatives undertaken include recycling of water through use of sewage treatment plants, rainwater harvesting, installation of water saving taps/fixtures, pressure reducing valves at Hotel. The Company has been focusing on energy conservation and increasing the share of renewable energy in its total energy consumption, water conservation and recycling & reusing waste generated.

Total units consumed through tie-ups with suppliers of renewable sources of energy and owned 1MW solar plant is 83% of the total consumption.

4. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors?

Yes, the Hotel provides equal opportunity to all suppliers irrespective of their size and status while considering proposals and awarding tenders.

The Company endeavors wherever possible to employ local labour and also provides transport and other infrastructural facilities. Various local festivals are celebrated from time to time.

5. Does the company have a mechanism to recycle products and waste? If yes, what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.

During the year under review, 95% of the total waste water generated was recycled and used for irrigation and other uses.

All used cooking oil is given to vendor which in-turn convert the same into biodiesel additives.

All e-waste generated in the Companys property is given to certified recyclers who provides E-certificates.

Principle 3 : Businesses should promote the well-being of all employees

1. Please indicate the Total number of employees : 422 (Permanent Employees)

2. Please indicate the Total number of employees hired on temporary/contractual/casual basis : 170

3. Please indicate the Number of permanent women employees : 65

4. Please indicate the Number of permanent employees with disabilities: 1.

5. Do you have an employee association that is recognized by management? Yes

6. What percentage of your permanent employees is members of this recognized employee association? 55.92% (236 out of 422)

7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last

Financial Year and pending, as on the end of the Financial Year. 2 complaints relating to Sexual Harassment were received

during the year and they have been resolved suitably.

No. Category	No of complaints filed during the financial year	No of complaints pending as on end of the financial year
1 Child labour/forced labour/involuntary labour	0	0
2 Sexual harassment	2	Nil
3 Discriminatory employment	0	0

8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?

(a) Permanent Employees	- 99%
(b) Permanent Women Employees	- 100%
(c) Casual/Temporary/Contractual Employees	- 100%
(d) Employees with Disabilities	- 100%

Principle 4 : Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized

1. Has the Company mapped its internal and external stakeholders? Yes / No

Yes, the Company has mapped its internal and external stakeholders.

2. Out of the above, has the Company identified the disadvantaged, vulnerable and marginalized stakeholders?

Yes. The Company acknowledges the important role played by the society in its growth and development and strives to discharge its responsibility towards the society at large. The Company has identified areas/avenues for inclusion of disadvantaged, vulnerable & marginalized stakeholders.

3. Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalized stakeholders? If so, provide details thereof, in about 50 words or so.

The Company is engaging with local Non-Governmental Organizations (NGOs) to source products / supplies for the Hotel and empowering women and children. During the year, the Company / Hotel have supported recycling partners with an ongoing process of giving away used linen, towels and soaps. Further, the Hotel property is designed in a manner that they are conducive to use by differently abled persons. There are dedicated washrooms for differently abled persons in all public areas. There are access ramps at all level changes on the outside and within the hotel premises. Also hotel has one room designed to suit physically challenged persons. Employment opportunities post successful development training under Youth Career Initiative program for the disadvantaged has created multiple success stories in the Company.

Principle 5 : Businesses should respect and promote human rights

1. Does the policy of the Company on human rights cover only the company or extend to the Group / Joint Ventures /Suppliers / Contractors / NGOs / others? The Company firmly believes in upholding and promoting human rights. It adheres to all statutes which embodies the principles of human rights such as prevention of child labour and women empowerment.

2. How many stakeholder complaints have been received in the past Financial Year and what percent was satisfactorily re solved by the management? Nil

Principle 6 : Businesses should respect, protect, and make efforts to restore the environment

1. Does the policy related to Principle 6 cover only the company or extends to the Group / Joint Ventures / Suppliers / Contractors / NGOs / Others?

The Companys policy extends to its business unit, employees, consultants, contractors and service providers to the business of the Company. The Company strives to use energy in the most efficient, cost-effective and environmentally responsible manner. The Company has been having environmental management plan (EMP) for its projects, which extend into the life cycle of the projects. The Company ensures adherence to the same by the suppliers and contractors providing services therein. The Code of Conduct for the Companys Senior Management lays out that the Company acknowledges the impact of its business activities on the environment and are committed to improving environmental track record through precautionary measures and the use of environmental friendly technology.

2. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc.? Y/N. If yes, please give hyperlink for webpage etc.

Various initiatives pertaining to Environment, Health and Safety are being evolved and implemented at the hotel. The Company recognises the importance of sustainability and has adopted responsible business practices and measures across its property to ensure waste minimisation and solid waste recycling.

Rainwater is harvested for internal usage. Water is conserved through various techniques adopted during carrying out Hotel operations. The Company property is designed to treat its wastewater through Sewage Treatment Plant and further treated through Filtration system, resulting in water that is odor free and reused in irrigation. Parameters have been set and the quality of the treated water is being monitored.

The Company has actively negotiated and entered into a Power Purchase Agreement under Open Access Scheme to buy renewable power & also generating power through owned 1 MW Solar Plant at Satara, Maharashtra for captive use.

3. Does the company identify and assess potential environmental risks? Y/N

Yes, the potential impact on environment is assessed while embarking on any of its projects. The Company is compliant with local / national laws concerning waste-water treatment and recycling.

4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if yes, whether any environmental compliance report is filed?

No.

5. Has the company undertaken any other initiatives on - clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please give hyperlink for web page etc.

Yes. The Company has actively negotiated and entered into a Power Purchase Agreement under Open Access Scheme to buy renewable power & owned 1 MW Solar Plant at Satara, Maharashtra for captive use.

6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the Financial Year being reported?

Yes

7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year.

None are pending.

Principle 7 : Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.

1. Is your company a member of any trade and chamber or association? If Yes, name only those major ones that your business deals with:

Yes, the Company / Hotel is part of a number of associations. Key associations are noted below: o Federation of Hotel and Restaurant Association of India o Hotel and Restaurant Association (Western India) o Travel Agent Association of India

o Services Export Promotion Council

o Federation of Indian Export Organisation

2. Have you advocated / lobbied through above associations for the advancement or improvement of public good? Yes / No. If yes specify the broad areas

Yes, the Company and its management team are actively involved with these associations for promotion of the interest of the hospitality sector. The Companys team communicates ideas and suggestions towards improvement of the hospitality. Various measures for reform are also recommended through them.

Principle 8 : Businesses should support inclusive growth and equitable development

1. Does the Company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes, details there of?

As articulated earlier

2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other organization?

No

3. Have you done any impact assessment of your initiative?

No

4. What is your Companys direct contribution to community development projects? Amount in INR and the details of the projects undertaken.

During the year under review, Company has not made any direct contribution to community development projects.

5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so.

No

Principle 9 : Businesses should engage with and provide value to their customers and consumers in a responsible manner

1. What percentage of customer complaints/consumer cases are pending as on the end of Financial Year.

The Company receives guest complaints that are dealt with from time to time and handled to closure but none of them have converted to a consumer complaint in the Financial Year 2019-20. As such there are no consumer cases filed for the Financial Year ended March 31,2020.

2. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A. /Remarks (additional information)

Not Applicable

3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of Financial Year. If so, provide details thereof, in about 50 words or so.

No.

4. Did your Company carry out any consumer survey/ consumer satisfaction trends?

Yes -The Companys services providers have systems in place to access guest satisfaction. Surveys are conducted periodically through formal and informal means to access the guest satisfaction level and experiences.