Kamat Hotels (India) Ltd Directors Report.

Dear Members,

Your Directors are pleased to present the 32nd Annual Report together with the Audited Financial Statements (Standalone and Consolidated)of the Company for the financial year ended 31st March, 2019.

FINANCIAL SUMMARY:

The financial summary for the year under review is as below:

(Rs. in Lakhs)
Standalone
Particulars Year ended 31st March, 2019 Year ended 31st March, 2018
Total Income 19,419.27 17,528.61
Profit Before Interest, Depreciation &Taxation 6,881.33 6,010.63
Less: Interest and Finance Charges (net) 2,203.26 1,479.94
Less: Depreciation and Amortisation 1,095.82 1,174.13
Profit Before Exceptional Item and 3,582.25 3,356.56
Add/(Less): Exceptional Item - 1,751.90
Profit Before Tax 3,582.25 5,108.46
Less: Current tax (including for earlier years) 100.54 8.98
Deferred Tax charge / (credit) (including previous year charge) 974.75 1,310.45
Profit After Tax 2,506.96 3,789.03
Other Comprehensive Income 4.56 (3.90)
Total Comprehensive Income 2,511.52 3,785.13
Basic & diluted earnings per share (in Rs. ) 10.63 16.07

PERFORMANCE REVIEW:

The average occupancy level of The Orchid, Mumbai, was around 85%. The average occupancy level of VITS Mumbai was around 80%. The Average Room Rate, during the year under review, was at Rs. 6,108 at The Orchid, Mumbai as compared to Rs. 5,869 in the previous year and at Rs. 4,404 at VITS, Mumbai as compared to Rs. 4,325 in the previous year.

ADOPTION OF IND AS:

The financial statements of Kamat Hotels (India) Limited, its subsidiaries and Joint Venture Company are prepared in accordance with the Indian Accounting Standards (referred to as ‘Ind AS) prescribed under section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time.

STANDALONE:

The total revenue from operations of the Company for the year was recorded at Rs. 19,239.08 (of which the turnover of Rs. 11,427.60 lakhs pertains to The Orchid, Mumbai, Rs. 3,967.69 lakhs pertains to VITS, Mumbai and Rs. 3,843.79 lakhs pertains to other units) as against Rs. 16,852.23 lakhs in the previous year, an increase of around 14% over the last year. The Companys profit after tax is Rs. 2,506.96 lakhs as compared to Rs. 3,789.03 lakhs of previous year.

MANAGEMENT/ FRANCHISEE / CONTRACTS/OTHERS:

During the year under review, the agreements entered for Management of the Orchid Hotel Pune and VITS Bhubaneswar continued. Also the arrangement under Business Contract Agreement for operation of Mahodadhi Palace Puri continued.

FANI CYCLONE:

The Companys unit at Lotus Resorts situated at Konark, Odisha heavily affected by ‘Fani Cyclone. The Company along with the help of its lenders and other stakeholders were able to revive the said unit within a very short span of time. Out of the total 27 rooms, 25 rooms are now operational. Further, the Companys managed hotel property Mahodadhi Palace at Puri, Odisha has been affected due to ‘Fani Cyclone. The Management has taken steps to revive the same.

DIVIDEND:

With view to conserve resources of the Company for future operations, the Directors have not recommended any dividend for the Financial Year ended 31st March, 2019.

TRANSFER TO RESERVES:

The Company has not transferred any amount to the General Reserve for the financial year ended 31st March 2019.

SHARE CAPITAL:

During the year under review, there was no change in the Authorised or Paid up Share Capital of the Company. As on 31st March, 2019, the Authorised Share Capital of the Company was Rs. 3,425.00 lakhs (excluding forfeited share capital) divided into 3,42,50,000 equity shares of Rs. 10/- each whereas the issued, subscribed and paid up capital stood at Rs. 2,358.41 lakhs divided into 2,35,84,058 equity shares of Rs. 10/- each.

MATERIAL CHANGES AND COMMITMENTS:

There have been no material changes and commitments affecting the financial position of the Company between the end of the financial date of this report. There has been no change in the nature of business of the Company.

REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF EACH OF THE SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES IN TERMS OF RULE 8(1) OF COMPANIES (ACCOUNTS) RULES, 2014:

In accordance with the provisions of the Companies ("the Act"), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") and Ind AS 110, the Audited Consolidated Financial Statement forms part of the Annual Report.

A copy of Audited Financial Statements of the Subsidiaries/Associates/Joint Ventures shall be made available for inspection at the Registered Office of the Company during business hours. Any shareholder interested in obtaining a copy of separate Financial Statement of the Subsidiaries/ Associates/Joint Ventures shall make specific request in writing to the Corporate Secretarial Department of the Company.

The Audited Financial Statements of the Subsidiaries/ Associates/Joint Ventures are also available on the website of the Company. In view of this, the Balance Sheet, Statement of Profit and Loss and other related documents of the Subsidiaries/ Associates/ Joint Ventures are this Annual Report. However, the statement containing the salient features which is required to be given in Form AOC -1 are provided in page no. 160 to the Consolidated Financial Statement of the Company, hence not repeated for the sake of brevity. As on 31st March, 2019 the Company had the following Subsidiaries and a Joint venture Company:

SUBSIDIARY COMPANIES:

1. Orchid Hotels Pune Private Limited (OHPPL)

2. Mahodadhi Palace Private Limited (MPPL)

3. Kamats Restaurants (India) Private Limited (KRIPL)

4. Fort Jadhavgadh Hotels Private Limited (FJHPL)

5. Orchid Hotels Eastern (I) Private Limited (OHEIPL)

JOINT VENTURE COMPANY:

Ilex Developers & Resorts Limited (IDRL)

During the year, the Company had not sold or liquidated any of its Subsidiaries / Associates /Joint Ventures and no Subsidiaries/Associates/ Joint Ventures became/ ceased to be Subsidiaries/Associates/Joint Ventures of the Company and all Subsidiaries/Associates/Joint Ventures are operative.

SECRETARIAL STANDARDS:

The Directors state that applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to ‘Meetings of the Board of Directors and ‘General Meetings, respectively, have been duly followed by the Company.

DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL APPOINTED OR RESIGNED DURING THE YEAR:

In accordance with the provisions of the Act and the Articles of Association of the Company, Mr. Bipinchandra C. Kamdar (DIN 01972386), Director of the Company, retire by rotation, at the ensuing Annual General Meeting. By the Notification dated 9th May, 2018, Securities and Exchange Board of India ("SEBI") amended the Listing Regulations, 2015 by incorporating Regulation 17(1A) in the Listing Regulations, 2015 to be effective 1st April, 2019. According to the said Regulation, no listed company shall appoint or continue the directorship of a person who has attained age of 75 years unless special resolution is passed to that effect. Mr. Bipinchandra C. Kamdar is 91 years as on date and therefore, a special resolution was passed in 31st Annual General Meeting for continuation of holding office of Non- Executive Director of the Company, by Mr. Bipinchandra C. Kamdar, who will be above the age of 75 years as on 1st April, 2019 to comply with the above amendment.

Mr. S.S. Thakur resigned from the post of independent director from the close of working hours of 27th May, 2019 due to his personal reasons. The Board of Directors places on record the contribution made by him during his association with the company.

Further, Mr. Ramnath P. Sarang is appointed as a Non Executive Independent Director (Additional Director) on the Board of the Company w.e.f 27th May, 2019 based on the recommendation of Nomination and Remuneration Committee to hold office up to the ensuing Annual General Meeting of the Company, subject to ratification by the members at the ensuing Annual General Meeting of the Company for his appointment as Independent Director for a term of 5 years.

The Company has received declarations from all the Independent Directors of the Company confirmingthat they meet the criteria of independence prescribed under the Act and the Listing Regulations.

Mr. Amit Vyas being Company Secretary, Compliance Officer and Key Managerial Personnel of the Company resigned w.e.f 13 th May, 2019. Mr. Shailesh Bhaskar was appointed as the Company Secretary and Key Managerial Personnel and also as the Compliance Officer of the Company w.e.f 27th May, 2019.

FAMILIARISATION PROGRAMMES FOR INDEPENDENT DIRECTORS:

The Company constantly endeavors to familiarize its Independent Director on the functioning of the Company, so that they are aware of the functions of the Company and their expertise can be utilized for the good of the Company. In this view the Company has conducted Familiarization Programmes to familiarize the Independent Directors of the Company. Details of the same are disclosed on the website of the Company and the web link of the same is http://www.khil.com/investors/policies.html

EXTRACT OFANNUAL RETURN:

An extract of Annual Return in Form MGT-9 as provided under sub-section (3) of Section 92 of the Companies Act, 2013 is enclosed as Annexure A"" forming part of this Annual Report.

NUMBER OF MEETINGS OF THE BOARD:

During the financial year under review, 5 (five) meetings of the Board of Directors were held. The intervening gap between two Board meetings was not more than 120 days. The particulars of meetings held and attended by each Director are detailed in the Corporate Governance Report, which forms part of this Report.

DIRECTORS RESPONSIBILITY STATEMENT:

Your Directors state that:

1. in the preparation of the annual accounts for the year ended 31st March 2019, the applicable accounting standards read with requirements set out under Schedule III to the Act have been followed and that there are no material departures from the same;

2. they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2019 and of the profit of the Company for the financial year ended on that date;

3. They have taken proper and sufficient care for the maintenance of adequate accounting Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. The annual accounts have been prepared on a going concern basis;

5. The Directors have laid down Internal Financial Controls to be followed by the Company and that such Internal Financial Controls are adequate and are operating effectively; and

6. Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems are adequate and are operating effectively.

NOMINATION AND REMUNERATION POLICY:

In terms of Section 178 (3) of the Companies Act, 2013, and Listing Regulations, a policy on Nomination and Remuneration of Directors and Senior Management Employees including, inter alia, criteria for determining qualifications, positive attributes, independence of directors and policy on Board diversity was formulated by the Nomination and Remuneration Committee and has been adopted by the Board of Directors. The said policy is enclosed as "Annexure B" to this Report. The said policy is also made available on the website of the Company www.khil.com and its web link is http://www.khil.com/investors/policies.html.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186:

Particulars of loans given, guarantees given, Investments made and securities provided by the Company under Section 186 of the Companies Act, 2013 are given as under:

(Rs. In lakhs)
Particulars Opening Balance Movement during the year* Closing Balance
Loans given 20,065.14 - 20,065.14
Guarantee Given / Security Provided 21,786.94 - 21,786.94
Investment Made 20.05 0.22 20.27

* Movement during the year represents Fair value adjustment.

During the year under review, no new loans, guarantees or investments were made or provided by the Company-

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTY:

In line with the requirements of the Companies Act, 2013 and Listing Regulations, your Company has formulated a Policy on Related Party Transactions which is also available on Companys website at www.khil.com/policies. The Policy intends to ensure that proper reporting; approval and disclosure processes are in place for all transactions between the Company and Related Parties. All transactions entered by the Company with Related Parties were in ordinary course of business and at arms length basis.

The Audit Committee has granted omnibus approval for the transactions (which are repetitive in nature) and the same was reviewed by the Audit Committee and Board of Directors.

There was no materially significant transaction with related parties during the Financial Year 2018-19 and none of the transactions with any of related parties were in conflict with the Companys interest. Particulars of contracts/ arrangements with related parties as referred to in sub- section (1) of section 188 of the Companies Act, 2013 and LODR are given in Form AOC 2 and the same is annexed as "Annexure C" hereto and forms a part of this report.

Suitable disclosure as required under Ind-AS-24 has been made in Notes to the Financial Statements.

STATEMENT OF ANNUAL PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS:

The Company has established the procedure for performance evaluation of the Board, Committees and other individual Directors (including Independent Directors) which include criteria for performance evaluation of Non-executive Directors and Executive Directors. The performance evaluation process inter-alia considers attendance of Directors at Board and Committee Meetings, acquaintance with business, communication inter se board members, effective participation, domain knowledge, and compliance with code of conduct, vision and strategy.

The Board carried out an annual performance evaluation of the Board, Committee, Individual Directors and the Chairperson. The Chairman of the respective Committees shared the report on evaluation with the respective Committee members. The performance of each Committee was evaluated by the Board, based on evaluation report received from respective Committees.

The report on performance evaluation of the individual Directors was reviewed by the Chairman of the Board and feedback was given to Directors.

MEETING OF INDEPENDENT DIRECTORS:

The Meeting of Independent Directors was conducted in an informal and flexible manner to enable the Independent Directors to discuss matters pertaining to inter alia review of performance of Non-Independent Directors and the Board as a whole, review the performance of the Executive Chairman of the Company (taking into account the views of the Executive and Non- Executive Directors), review the performance of the Company, assess the quality, quantity and timeliness of flow of information between the Company Management and the Board which is necessary for the Board to effectively and reasonably perform their duties.

The meeting of Independent Directors for the Financial Year under review was held on 28th May, 2018.

The Chairman of the meeting of Independent Directors apprises the Chairman of the Company regarding the views/concerns, if any, of Independent Directors.

VIGIL MECHANISM:

The Company has established a Vigil Mechanism for Directors and employees to report genuine concerns. The Vigil Mechanism enable the Directors, employees and all stakeholders of the Company to report genuine concerns and provides for adequate safeguards against victimization of person who use Vigil Mechanism and also makes provision for direct access to the Chairman of the Audit Committee.

The detail of Vigil Mechanism is put on the Companys website and can be accessed at www.khil.com and its web link is http://www.khil.com/ investors/policies.html

AUDIT COMMITTEE:

The composition of the Audit Committee as required to be disclosed under Section 177(8) of the Companies Act, 2013 is given in Corporate Governance report which forms part of this Annual Report. During the year under review, all the recommendation made by the Audit Committee was accepted by the Board.

RISK MANAGEMENT:

Your Company has a well defined Risk Management framework, which is designed to enable risk to be identified, assessed and mitigated appropriately. A quarterly review report on compliance with Risk Management framework of the Company is placed before the Audit Committee of the Company.

During the year under review, no risk threatening the existence of the Company was identified.

DISCLOSURE OF PECUNIARY RELATIONSHIP:

During the year, there was no pecuniary relationship or transactions between non-executive directors and the company. No payment, except sitting fees, was given to non-executive directors of the Company. No convertible instruments are held by any of the non-executive directors.

DETAILS OF SHARES ISSUED WITH DIFFERENTIAL VOTING RIGHTS AND SWEAT EQUITIES:

During the year under review, the company has not issued any shares with differential voting rights as to dividend, voting or otherwise and sweat equity shares.

EMPLOYEE STOCK OPTION SCHEME:

During the year under review, no option was granted or vested to any employee or Directors of the Company.

PROVISION OF MONEY BY COMPANY FOR PURCHASE OF ITS OWN SHARES BY EMPLOYEES OR BY TRUSTEES FOR THE BENEFIT OF EMPLOYEES:

The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustee for the benefit of employees.

DEPOSITS:

The Company did not accept any deposits within the meaning of Section 73 of the Companies Act, 2013 and Rules made there under at the beginning of the year. During the year under review, the Company has neither invited nor accepted any deposit under Section 73 of the Companies Act, 2013 and the rules made there under and no deposit was remaining unpaid or unclaimed as at the end of the year.

COST AUDIT

The Company is not required to maintain cost records as specified by the Central Government under Section 148(1) of theAct.

SECRETARIAL AUDITOR:

In terms of the provision of the Section 204 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board had appointed M/s. V. V. Chakradeo & Co., Practicing Company Secretaries, to conduct the Secretarial Audit for the financial year ended 31st March, 2019.

The Secretarial Audit Report for the Financial Year ended 31st March 2019 issued by M/s. V. V. Chakradeo & Co., Practicing Company Secretaries is annexed herewith marked as "Annexure D" to this Annual Report.

DETAILS AS PER SECTION 197(12) READ WITH RULE 5 OF COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 AND FORMING PART OF THE BOARDS REPORT FOR THE YEAR ENDED 31ST MARCH 2019:

Disclosures relating to remuneration of Directors, Key Managerial Personnel (KMPs) and employees as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in "Annexure E" to this Report.

During the year under review, there were no employees falling under the criteria specified under section 197(12) of the Companies Act, 2013 and rule 5(2) of the of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. However, other information as required under said rule may be obtained by the members by writing to the Company Secretary of your Company and the same be furnished on request and is also made available on the Companys website i.e.www.khil.com.

PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

Conservation of Energy:

(i) the steps taken or impact on conservation of energy;

(ii) the steps taken by the company for utilising alternate sources of energy;

(iii) the capital investment on energy conservation equipments;

The Company continued energy conservation efforts during the year. It has closely monitored power consumption and running hours on day to day basis, thus resulting in optimum utilization of energy. The hotels are fitted with energy saving devices to conserve energy in the long run.

a) Technology Absorption:

(i) the efforts made towards technology absorption: The activities of the Company at present do not involve technology absorption and research and development.

(ii) the benefits derived like product improvement, cost reduction, product development or import substitution; N.A.

(iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)

(a) the details of technology imported; N.A.

(b) the year of import; N.A.

(c) whether the technology been fully absorbed; N.A.

(d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof; N.A. and

(e) the expenditure incurred on Research and Development. N.A.

The activities of the Company at present do not involve technology absorption and research and development.

(f) Foreign exchange earnings and outgo: Earnings: 2,065.03 Lakhs (Previous Year Rs. 2,012.80 Lakhs) Utilization (including import of capital goods): 110.49 Lakhs (Previous Year Rs. 180.34 Lakhs)

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE:

During the year under review, no significant or material orders were by passed by the regulators or courts or tribunals which impact going concern status of the company and its operations in future.

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENT:

Your Directors have devised a framework for Internal Financial Controls as per the requirements of Section 134(5) (e) of the Companies Act, 2013 and incorporates measures that ensure adequate and continuing operating effectiveness of internal financial controls.

Furthermore, in accordance with Section 149(8), read with the Code for Independent Directors laid down under Schedule IV, Clause II (4) of the Companies Act, 2013, the Independent Directors have satisfied themselves on the integrity of financial information andhave ensured that Financial Controls and systems are robust and secure.

In order to enable the Directors to meet these responsibilities, the Board has devised the necessary systems, frameworks and mechanisms within the Company. The Board has empowered the Audit Committee to periodically review and confirm that themechanism remains effective and fulfill the objectives for which they have been created.

DISCLOSURES RELATING TO UNCLAIMED SUSPENSE ACCOUNT AS PER REGULATION 34(3) READ WITH SCHEDULE V(F) OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATION, 2015:

Aggregate number of shareholders and the outstanding shares lying in the Unclaimed Suspense Account at the beginning of the year Number of shareholders who approached the issuer for transfer of shares from the Unclaimed Suspense Account during the year Number of shareholders to whom Aggregate number of shareholders shares were transferred from the and the outstanding shares lying in Unclaimed Suspense Account the Unclaimed Suspense Account during the year at the end of the year
One shareholder having 500 equity shares NIL NIL One shareholder having 500 equity shares

The voting rights on the shares in unclaimed suspense account shall remain frozen till the rightful owner of such shares claims the shares.

CORPORATE SOCIAL RESPONSIBILITY:

The Company understand the importance of the society in smooth functioning of the business. Thus, to acknowledge the constant support provided by the society, the Company involves itself in different corporate social responsibilty activities.

Brief outline of Corporate Social Responsibility (CSR Policy of company and the initiatives undertaken by the Company on CSR activities during the under review are set out in "Annexure F" of this report in the format prescribed under the Companies (CSR Policy) Rules, 2014. The CSR Policy is available on the website of the Company.

The CSR committee on a continuous basis manifests the activities through which it can have positive impact on the society and be beneficial for larger good of the people.

MANAGEMENT DISCUSSION AND ANALYSIS:

Managements Discussion and Analysis Report for the year under review, as stipulated under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") is given as "Annexure G".

CORPORATE GOVERNANCE:

The Company is committed to maintain the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by the Securities and Exchange Board of India (SEBI). The Report of Corporate Governance as stipulated under the Listing Regulations is annexed as "Annexure H". The requisite Certificate from M/s. V. V. Chakradeo, Practicing Company Secretaries confirming compliance with the conditions of Corporate Governance is attached to the report on Corporate Governance.

IMPLEMENTATION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

The Company has constituted Internal Complaints Committee at all the units of the Company under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the year under review, no instance of Sexual Harassment of Women under the said Act has been reported in any of the units of the Company.

STATUTORY AUDITORS:

M/s. N. A. Shah Associates LLP, Chartered Accountants, Mumbai were appointed as Statutory Auditors of your Company at the Annual General Meeting held on 22nd September, 2017 for a term of five consecutive years. As per the provisions of Section 139 of the Companies Act, 2013, the appointment of Auditors is required to be ratified by Members at every Annual General Meeting. In accordance with the Companies (Amendment) Act, 2017, enforced on 7th May, 2018 by the Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be ratified at every Annual General Meeting.

EXPLANATION ON QUALIFICATION MADE BY STATUTORY AUDITORS / SECRETARIAL AUDITOR:

With respect to one of the subsidiaries (Orchid Hotels Pune Private Limited) reference has been invited by the Statutory Auditor to note 32.1 (d) of notes to the consolidated financial statements (Note 6(a)(i) of the consolidated financial results). As against the lenders (International Asset Reconstruction Company Private Limited (IARC)} claim upto 24th December, 2018 of Rs. 42,110.91 lakhs, the liability as per the books is only Rs. 18,833.99 lakhs (this amount includes interest liability accounted in books upto 30th September, 2013). IARC has acquired the loans on assignment from Asset Reconstruction Company India Limited (ARCIL) at a consideration of Rs. 13,500 lakhs. Interest has not been provided in the books from 1st October, 2013 till 31st March, 2019. In the auditors opinion, the same is not in compliance with Ind AS 23- Borrowing Cost. Further, the change in claim by the lender from 25th December, 2018 till 31st March, 2019 has not been considered. Had the provision been made based on the claim made by the lender, borrowing cost and the negative net worth as at 31st March, 2019 would increase by the amount of difference in liability as stated above plus the interest from 25th December, 2018 upto 3rd March, 2019, both of which have not been provided. Further, the qualified opinion given by the auditors was also reported in their independent audit report for financial year 2017-18 dated 28 th May, 2018. The management confirms that the proposal for amicable resolution of the settlement of the loan (including interest) is under process and management expects that the settlement amount would not be higher than the amounts already recorded in the books. In view of the same, the management is of the opinion that no further provision for interest is required to be made in the books and accordingly the same is in order.

EMPLOYEE RELATIONS:

The Management realizes the role and importance of its employees for growth of the business. Therefore, the Company continuously strives to maintain cordial relationship with its employees. They are also given opportunities to rise and have impact on the working of the Company.

ACKNOWLEDGEMENTS:

The Directors place on record their appreciation for the sincere and whole hearted co-operation extended by all concerned, particularly Companys Bankers, Financial Institutions, Asset Reconstruction Companies, Security Trustees, Stock Exchanges, Department of Tourism, Municipal authorities, the Government of Maharashtra, Goa and Odisha, the Central Government, Suppliers, Clientele and the employees of the Company and look forward to their continued support. The Directors also thank the shareholders for continuing their support and confidence in the Company and its management.

For and on behalf of Board of Directors
of KAMAT HOTELS (INDIA) LIMITED
Dr. Vithal V. Kamat
Place : Mumbai (DIN 00195341)
Date : 5th August, 2019 Executive Chairman and Managing Director