Blue Coast Hotels Ltd Management Discussions

ABOUT BLUE COAST HOTELS LIMITED

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The Company actively operated within the hospitality business until 19 September, 2018, subsequent to which no commercial business operations had been conducted till the previous financial year.

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In financial year ending 31 March, 2019 the company had handed over its only operational asset Park Hyatt Goa Resort & Spa pursuant to the order of the Honble Supreme Court, impacting companys ability to continue as a going concern. However, the company has exercised its right of redemption by filing the redemption petition before Honble High Court of Bombay at Goa. The petition is pending adjudication and its outcome may impact the alleged sale of hotel property at Goa.

To sustain its operations and generate revenue for meeting its day-to-day expenses, the Company, during the year under review, has provided advisory and consultancy services relating to the operation, management and administration of hotels and restaurants.

Financial Performance with respect to Operational Performance

Standalone

During the financial period under review, the Company generated a total income of 243.48 Lakhs, compared to

45.06 Lakhs recorded in the preceding financial year. The Company has a total comprehensive loss (after tax) of

233.28 Lakhs as against the total comprehensive profit (after tax) of 8006.38 Lakhs previous year.

Consolidated

On a consolidated basis for the financial period under report, the Companys total income stood at 243.48 Lakhs, as compared to 45.06 Lakhs in the previous fiscal period. The Company has a total comprehensive loss (after tax) of

234.52 Lakhs as against the total comprehensive profit (after tax) of8,010.14 Lakhs previous year.

Risks and Concerns

The handing over of the Companys sole operational asset to the auction purchaser has significantly impacted the Companys ability to continue as a going concern. However, to sustain its operations and generate revenue, the Company has taken steps to provide advisory and consultancy services relating to the operation, management, and administration of hotels and restaurants.

Internal Control System

The Company maintains an internal financial control framework designed to correspond directly with the scale, nature, and operational complexities of its ongoing business processes. This control mechanism is structurally sound and functions with verified efficiency to ensure an orderly, secure and disciplined administration of corporate affairs. Furthermore, these internal accounting and financial control processes safeguard company assets, mitigate reporting risks and guarantee that the Financial Statements are compiled with absolute reliability and in strict accordance with prevailing statutory legislations.

Human Resources

Your Company strongly believes that no organization can survive or grow without a dedicated team of employees. Even though current operational revenues are low, the Company remains deeply committed to maintaining the highest standards of corporate governance and strict financial controls. To ensure these compliance standards are never compromised, management is making active efforts to retain its experienced professionals and core staff. Reflecting these focussed efforts, the total number of full-time employees on the payrolls of the Company as of

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31 March, 2026, stood at 4.

Details of Significant Changes in Key Financial Ratios:-

Ratio	Numerator	Denominator	As at 31.03.2026	As at 31.03.2025	% of Variation	Explanation for Change in the Ratio by more than 25%
Current Ratio	Current Assets	Current Liabilities	0.15	0.26	(41.60)	The ratio declined primarily due to certain non-current liabilities becoming current during the year.
Debt-Equity ratio	Total Debts	Total Equity	NA	NA
Debt Service Coverage ratio	Profit before Interest, Depreciation & Tax	Interest Expenses + Principal payment made during the year for long term loans	NA	NA
Return on Equity ratio	Profit After Tax	Average Networth	13.12%	-114.31%	(111.48)	The ratio changed due to the current years net loss compared to the previous years exceptional gain arising from the waiver of preference share dividend.
Inventory turnover ratio	Cost of Goods Sold	Average Inventory	NA	NA
Trade receivables turnover ratio (days)	Average Trade Receivables	Revenue	52.72	NA	100.00	The ratio is attributable to the operational revenue during the current year.
Trade payables turnover ratio (days)	Average Trade Payables	Turnover	38.76	NA	100.00	The ratio is attributable to the operational revenue during the current year.
Net capital turnover ratio	Total Income	Working Capital (Current Assets- Current Liabilities)	18.88%	5.42%	248.37	The ratio increased due to an increase in operational revenue during the current year.
Net profit ratio	Profit after Tax	Total Income	-95.81%	17768.81%	(100.54)	The ratio declined due to the current years net loss as against the previous years exceptional gain arising from the waiver of preference share dividend.
Return on Capital employed	Net Profit After Tax + Finance Cost	Total Capital Employed	3.10%	-493.94%	(100.63)	The ratio changed due to the current years net loss compared to the previous years exceptional gain arising from the waiver of preference share dividend.
Return on investment	Income on Investments	Average Investment	-5.06%	18.44%	(127.43)	The ratio declined due to a loss on investments during the current year compared to gains realized in the previous year.

Change in Return on Net Worth

During the year under review, as well as in the previous year, there is Nil return on Net Worth. During the year, the Company has recorded losses largely on account of provision made toward accumulated dividends on outstanding Redeemable Preference Shares.

		By Order of the Board
		For Blue Coast Hotels Limited
Place: New Delhi	Sd/-	Sd/-
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Date : 7 August, 2026	Kushal Suri	Bhupendra Kumar Bhardwaj
	Whole Time Director	Director
	DIN: 02450138	DIN: 01795107