Savera Industries Ltd Directors Report.

To the members of Savera Industries Ltd,

The Directors have pleasure in presenting the 53rd Annual Report of M/s. Savera Industries Ltd (the company), along with the audited financial statements under Ind AS for the financial year ended 31st March, 2022.

1. FINANCIAL RESULTS

The Financial Results of the Company for the year under review is summarized below for your perusal and consideration.

(Rs. in lakhs)

PARTICULARS CURRENT FINANCIAL PREVIOUS FINANCIAL
YEAR 2021-22 YEAR 2020-21
Revenue From Operations 3194.66 1962.37
Other income 104.41 114.32
Profit/loss before Depreciation, Finance Costs, Exceptional Items and Tax Expenses 249.87 5.61
Less : Depreciation / Amortisation / Impairment 257.00 371.77
Profit / loss before Finance Costs, Exceptional items and Tax Expenses (7.13) (366.16)
Less : Finance Costs 42.60 44.92
Profit / loss before Exceptional items and Tax Expenses (49.73) (411.08)
Add : (less) Exceptional Items (20.31) (42.69)
Profit / loss before Tax Expenses (70.04) (453.77)
Less : Tax Expenses (Current, Deferred & Earlier Tax) 10.24 (43.97)
Profit / loss for the year (1) (80.28) (409.80)
Other Comprehensive Income / loss (2) 50.16 135.82
Total (1 + 2 ) (30.12) (273.98)
Balance of profit / loss for earlier years 3670.08 4079.88
Add : Current Year Profit / Loss (80.28) (409.80)
Less :Transfer to Reserve
Less : Dividend paid on Equity Shares - -
Less : Dividend Distribution Tax - -
Balance Carried Forward 3589.80 3670.08

1.1 STATE OF COMPANY?S AFFAIRS

During the year under review the company achieved a turnover of Rs.3299.07 lakhs against the corresponding previous year turn over of Rs.2076.69 lakhs. Total expenditure for the period ended as at 31st March, 2022 amounted to Rs.3348.80 lakhs increased by Rs.861.03 lakhs as compared to the previous year. The Profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st March, 2022 amounted to Rs.249.87 lakhs as against the profit of Rs. 5.61 lakhs over the corresponding period last year. Deferred tax for the year ended 31st March, 2022 amounted to Rs.Nil. The Loss after deferred tax for the year ended 31st March, 2022 stood at Rs. (80.28) lakhs as against Loss of Rs. (409.80) lakhs. No amount was transferred to General Reserve during the year under review. The company has adopted Ind-AS from the financial year 2017-18..

2. DIVIDEND

No dividend has been recommended to the shareholders for the financial year 2021-22 keeping in view of the loss incurred by the company.

3. HOSPITALITY INDUSTRY IN INDIA - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)

The Hospitality Industry in India is segmented by Type (Chain Hotels and Independent Hotels), and by Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid Scale Hotels, and Luxury Hotels). The report offers market size and forecast in value (USD billion) for all the above segments.

MARKET OVERVIEW

The hospitality industry in India has been scoring a moderate growth number from the past few years and has great potential to score an even greater number in the future. The nation which is rich in culture and diversity has been attracting a large number of tourists from all over the globe. India has also been recognized as a destination for spiritual tourism for international and domestic tourists. India is showing continuous growth in position moving from 65th to 34th position in the World Economic Forums travel and tourism competitiveness index. On the other side, the consistently growing middle class, rising levels of their disposable income, increasing interest among millennials to travel in their home country are a few major reasons that are making the domestic travel industry a profitable one.

The hospitality and tourism industry has been witnessing a healthy growth number and accounted for 7.5% of the GDP. India is a part of the top 100 clubs on Ease of Doing Business (EoDB) and ranks 1st in the greenfield FDI ranking globally and to strengthen the cruise tourism sector, the Government of India (GoI) has selected Chennai, Goa, Kochi, Mangalore, and Mumbai ports to develop them as cruise tourism hubs. These terminals will have facilities like hospitality, retail, shopping, and restaurants.

Less than three million foreign tourists visited India in 2020, a dip of around 75 per cent as compared to the previous year, due to travel restrictions imposed to control the coronavirus pandemic. "To incentivize stakeholders in the tourism industry, the guidelines for the scheme of Market Development Assistance (MDA) for providing financial support to stakeholders for the promotion of domestic tourism have been modified to enhance the

scope and reach of the scheme, to provide maximum benefits to the stakeholders. In addition, promotional activities have been incorporated including online promotions and the extent of financial assistance permissible has been enhanced.

Due to the COVID-19 pandemic, Indias hotel sector is one of the worst-hit segments of the economy, contracted by 47% in April-June 2020, as per data released by the National Statistical Office (NSO) on August 31,2020. The hotel industry, in May 2020, experienced an occupancy decline of 77% over the same time last year. The domestic hospitality industry, which has been severely affected by the COVID-19 related disruptions, is likely to witness a decline of over 65% in 2021.

COMPETITIVE LANDSCAPE

The report on the Hospitality Industry in India covers the major international players and the leading domestic players in the hotel and hospitality industry in India. The hospitality sector in India is dynamic and emerging. It holds greater potential to grow for both the national and international players who are interested to enter the Nations hospitality industry.

FOREIGN TOURIST INFLOW TO INDIA JANUARY, 2022

Ministry of Tourism compiles monthly Foreign Tourist Arrivals (FTAs) on the basis of information received from Bureau of Immigration (BOI). The following are the important highlights regarding FTAs during the month of January, 2022.

FOREIGN TOURIST ARRIVALS (FTAS):

1. FTAs in January, 2022 were 2,01,546 with a positive growth rate of 140.4% as compared to 83,822 in January, 2021.

2. The percentage share of Foreign Tourist Arrivals in India during January 2022 among the top 15 source countries USA (27.76%) followed by Bangladesh (11.85%), UK (10.03%), Canada (6.97%), Australia (6.44%), Sri Lanka (4.64%), Russian Federation (2.38%), Maldives (2.25%), Portugal (2.21%), Germany (1.70%), Nepal (1.63%), France (1.41%), Singapore (1.07%), Italy (1.01%), and Oman (0.94%).

3. The percentage share of Foreign Tourist Arrivals in India during January 2022 among the top 15 ports was highest at Delhi Airport (38.70%) followed by Mumbai Airport (14.95%), Chennai Airport (10.40%), Cochin Airport (5.26%), Ahmedabad Airport (5.23%), Hyderabad Airport (4.90%), Bengaluru Airport (4.83%), Kolkata Airport (4.55%), Haridaspur Land Check Post (3.31%), Dabolim (Goa) Airport (1.93%), Trivandrum Airport (1.53%), Gede Land Check Post (1.23%), Tiruchirappalli Airport (0.73%), Amritsar Airport (0.70%), and Agartala Airport (0.44%).

4. MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

One of the significant changes brought about by the pandemic is the way we work. With the rise of the hybrid working model, people are experimenting with their work settings by traveling to new locations and working from there to alleviate boredom. Such trends are fueling the growing demand for workation, which allows them to work from anywhere and with all of the necessary tools.

In addition, families are looking for short-term destination travel and weekend getaways to domestic locations in order to avoid the threat of pandemic from crowded locations. Therefore, the changing dynamics of the travel and hospitality industries are providing an entirely new perspective for hotels on how to provide a delightful guest experience in the new normal.

OPPORTUNITIES

Indias hospitality sector witnessed a 15.9% negative growth at a pan-India level in RevPAR in Q1 2022 compared to Q4 2021, due to the third wave of the pandemic, according to JLLs Hotel Momentum India (HMI) Q1,2022.

The Indian hospitality sector witnessed a rapid and strong recovery post the third wave in January 2022, driven by growth in demand for leisure, wedding, and business travel. As a result, Revenue Per Available Room (RevPAR) witnessed a growth of 39.1 % year-on-year (YoY) in Q1,2022 (Jan-March).

Whilst the beginning of Q1 2022 was slow, in February and March rapid revival was witnessed in the domestic leisure as well as meetings, incentives, conferences and exhibitions (MICE) and business travel demand segments.

Many hotels in major metropolitan cities witnessed significant growth in domestic business travel.

The next two quarters are expected to remain busy on the back of domestic leisure amidst the summer holidays. Continued growth in business travel is expected as most people have resumed work from the office and are travelling for client meetings as well as project work. The total number of hotel signings in Q1 2022 stood at 56 hotels with 3,739 keys. The hotel signings witnessed a significant increase of 81.2% as compared to signings in Q1 2021. Domestic operators dominated signings over international operators with a ratio of 75:25 in terms of inventory volume.

TRENDS FOR THE HOSPITALITY AND TRAVEL INDUSTRY IN 2022.

Since the Covid pandemic outbreak two years ago, the hotel and travel industries have been through some difficult times. As the tourism sector began to recover from the pandemics grasp, the latest Omicron variant struck, making the future prospects as grim as possible. Thus, businesses in the industry are coming up with new and unique ways to attract travellers and tourists from all over the world in order to stem the losses. In the new normal, businesses are making guest health and safety a top concern, implementing simple and no-questions-asked refund and cancellation policies to make it easier for guests to plan ahead.

Here are some future trends in the hospitality and travel industries that experts are heavily betting on:.

CONTACTLESS HOSPITALITY SERVICES

In the aftermath of the epidemic, guests top priorities are sanitation, safety, and contactless services in most locations. As a response, the players in this industry are embracing technology at a rapid speed in order to keep up with the industrys changing expectations. Everything is now done online, with little to no interaction with personnel, from check-in to check-out, upsells and cross-sells, menu to in-stay service. In addition, many hotels are now employing QR codes that customers can scan with their mobile devices without having to engage with hotel workers physically and access a digital concierge that offers guests a totally contactless experience.

THREATS

The hospitality industry struggled in 2021 to make a comeback after the fallout from the COVID-19 pandemic. As 2022 and COVIDs third year begin.

Its not getting any easier. Finding qualified people is a struggle at all levels for hotels and restaurants. Tech investment can make up for some of the gap, but also heightens the risk of cyber exposure. Meanwhile, business travel is still flagging and indoor mask mandates in many regions can serve as a flash point.

The implications of it all arent lost on insurers. Its increasingly common for underwriters to make on-site inspections of properties and check social media reviews for signs of potential risk. How restaurants are managing rising alcohol sales is also under scrutiny, as is the diligence of hotels in taking COVID safety measures.

SEGMENT WISE PERFORMANCE

The company has only one segment viz hoteliering. Accordingly the performance is furnished hereunder.

Total turnover for the year ended 31st March,2022 amounted to Rs.3,299.07 lakhs increased by Rs.1222.38 lakhs as compared to the previous year turnover of Rs. 2,076.69 lakhs. Total expenditure for the year ended 31st March 2022 amounted to Rs.3,348.80 lakhs increased by Rs 861.03 lakhs as compared to the previous year. The profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st March,2022,amounted to Rs. 249.87 lakhs as against the profit of Rs. 5.61 lakhs over the corresponding period last year. The deferred tax for the year ended 31st March,2022 amounted to Rs.NIL lakhs. The loss after deferred tax for the year ended 31st March, 2022 stood at Rs. (80.28) lakhs as against Loss of Rs. (409.80) lakhs.

OUTLOOK

OMNICHANNEL COMMUNICATION

Basic functions such as booking a hotel room are now just a few taps away thanks to technological advancements. Similarly, hotels are turning to CRM (Customer Relationship Management) solution providers who can help them offer an automated hyper personalized guest communication more effectively via platforms such as WhatsApp, email, and so on. Omni communication has proven to increase the guest engagement by 97%.

EMPHASIS ON DIGITAL CHANNELS

The increased emphasis on the usage of digital channels to establish a distinct online presence is extremely beneficial to the business, as the epidemic has driven customers to use digital booking mediums after carefully reading online reviews, which eventually influence their booking decision.

In addition to online reputation management, these digital channels can help hotels analyse and examine a new issue that has arisen recently. Hotels are proactively sharing new update about regulation/policy changes in terms of cleanliness, social -distancing and safety with their prospective guests or travellers to ensure guests feel safe and ensure there is a smooth information flow, by updating their website and other online listings.

SUSTAINABILITY

With the increased demand for health, cleanliness, and safety issues, the Covid epidemic has raised some severe challenges for the hospitality and travel industries. Guests are also more concerned about their health and the environment. Hence, firms should consider taking a waste-reduction and environmental-conscious approach. As an outcome, these behaviors will go a long way toward reducing recurring costs and boosting the overall management and operations of the hotel industry.

Finally, the current dynamics in the industry are undergoing significant changes, which can only be met by technological adoption. The CRM functionalities of contactless guest facing technologies can be extremely useful in dealing with changing consumer expectations, and they can give long-term benefits. Furthermore, in the post-COVID environment, hotels should focus on innovative solutions that will set them apart from industry incumbents by providing an exceptional guest experience. Additionally, aggressively boosting awareness of the use of existing digital and remote platforms among visitors and guests in order to encourage the adoptionoftheseexperiences.

RISK AND CONCERNS

The COVID-19 crisis has affected almost all the global sectors. The hotel industry, however, was hit hardest challenging the leadership. Practical implications - As the tourism industry in India is recovering after the second wave, the governments along with all stakeholders, must launch special events for promoting the tourism sector. Safety measures like making vaccination certificates for all tourists and employees of the tourism sector should be made mandatory. Further, special certification following the COVID-19 protocol needs to be introduced for hotels and catering establishments. A fund generated from the sectors direct tax contribution needs to be established to support the employees.

Social implications - The study has several social implications. The study results can unite all industry stakeholders to shape the post-pandemic era through collaboration. Empathetic leadership can take the industry out of chaos by balancing the interests of the various stakeholders of society. The pandemic has proven that we all are vulnerable to risks and challenges; leaders have a vital role in taking proactive steps to ensure that such uncertainties do not cause unprecedented damage.

Managerial implications

Investment in technology - The analysis revealed investment in technologies by hotels to survive the ongoing crisis among top sub-themes. The findings are evident in the way experts felt about the ongoing crisis, whereby minimum human interaction was considered a latent solution to restoring the customer and employee concern for safety, the second central theme. Managers, therefore, must take cognisance of the changing circumstances whereby technology is going to shape the future of the hospitality industry.

The leadership type plays a prominent part in innovation and organisational decisionmaking processes. Further, charismatic leaders and opinion leaders (both categorised as transformational leaders) influence innovation diffusion. Adopting technology in hospitality firms improves operation efficiency and effectiveness and co- creates customer experiences.

Making customers and employees feel safe

Making customers and employees feel safe emerged as a prominent sub-theme from the investigation. The importance of health and safety is discussed widely in tourism and hospitality literature Such measures are desperately required for a country like India because of Challenges for Indian hospitality industry many infection cases after the second wave of April 2021. The high number of cases has led to an increase in purchasing packaged precooked foods and other similar products. Just as dine-in outlets barely started recovering from the first wave, the arrival of the second wave had a devastating effect on customer confidence.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

Your Company has in a place an adequate internal control system. The internal controls are designed to provide reasonable assurance regarding the effectiveness and the efficiency of operations, the adequacy of safeguards for assets, the reliability of financial controls, and compliance with applicable Laws and Regulations, protecting the assets from unauthorized use of losses. The internal controls are supplemented by the programme of internal audit.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE /BUSINESS PERFORMANCE.

Particulars 31.03.2022 31.03.2021 % of change
Food and Beverages 1547.89 745.77 107.56
Rooms 1382.31 989.24 39.73
Banquet Halls 31.09 9.50 227.26
Spa Collections 62.45 44.91 39.06
Gym Collections 125.23 138.37 -9.50
Franchise 7.62 4.80 58.75
Other Services 38.07 29.78 27.84
Other Income 104.41 114.32 -8.67
Overall Income 3299.07 2076.69 58.86
Occupancy (%) 49.70 44.4% 11.94

Overall Income increased by Rs. 1222.38 Lakhs from Rs. 2076.69 Lakhs to Rs.3299.07 Lakhs. Occupancy increased by 11.94% from 44.4% to 49.70%.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES /INDUSTRIAL RELATIONS FRONT.

Your Company sincerely believes that its employees are its vital assets and hence in order to keep its employees motivated and changed, your Company provides them a good working environment so that they are able to leverage their full potential. The Human Resource department updates its Hr policies, SOP practice, and processes so as to enable and empower its employees.

Your Company provides the following welfare, employee health-conscious, HR activities and training to the Companys employees.

• Hygiene rate classes and auditing the rate of hygiene.

• First aid classes.

• Food handlers medical checkups per Food Safety and Standards Authority of India (FSSAI)Act.

• Food hygiene awareness.

• Food safety certificate program.

• Safety and preventive maintenance training.

• Womens day celebrations.

• COVID vaccination for all the staffs.

• Succession planning programme.

• International chef day.

By giving this schemes, caring, supporting, and training programmes, the employees become loyal to the Company and thereby the employee attrition rate is minimized.

The training focuses on improving high quality service based on the concept of customer delight. Management scheduled training programmes mandatorily for all 375 employees.

KEY FINANCIAL RATIOS

Key Financial Ratios 31.03.2022 31.03.2021 Difference
Debtors Turnover 49.63 22.76 (118)%
Inventory Turnover 26.41 12.99 (103)%
Interest Coverage Ratio (0.64) (9.10) (93)%
Current Ratio 1.41 1.07 (31)%
Debt Equity Ratio 0.01 0.05 80%
Operating profit Margin (%) 19% 4.22 (361)%
Net Profit Margin (%) (2.51)% (20.88) 88%
Return on Networth (1.39)% (6.90)% 80%

The variance in ratios on account of recovery of business during the current year when compared to previous year in which business was severely impacted by Covid 19 pandamic.

Cautionary Statement

The information contained in the Management Discussion and Analysis regarding Companys estimates, expectations, projections, guidance are based on assumptions and expectations of future events. The Company takes no responsibility on such statements since the Company exercises no control over the events that takes place in future. The actual results may differ from those expressed or implied. The Changes in the domestic and global economic conditions and government regulations, tax laws and other statutes may affect the hospitality industry.

5. FINANCIAL INFORMATION AND DETAILS OF ASSOCIATE COMPANY

The Financial Statement of the company is prepared in accordance with the Ind AS under the provisions of the Companies Act, 2013 and forms part of the Annual Report. The companys financials disclose the assets, liabilities, income, expenses and other details.

The Company does not have any subsidiary, Joint Venture and associate Company.

During the year under review no Company has become ceased to be the Companys subsidiary, Joint Venture and associate Company.

6. Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014 containing salient features of the financial statement of subsidiaries/associate companies/joint ventures - NOT APPLICABLE

7. FINANCIAL HIGHLIGHTS OF THE COMPANY

The financial highlights of the company for last 10 years are furnished in the Annual Report.

8. HUMAN RESOURCES

The Management envisions trained and motivated employees as the backbone of the Company. Special attention is given to recruit trained and experienced personnel in all departments. The Management strives to retain and improve employee morale. The Company has total staff strength of about 375 employees.

The Company has streamlined its manpower strength at the Hotel. As a result of manpower rationalization exercise, the monthly payroll has been optimized. The decision for rationalization of labour has enabled the company to curtail fixed manpower costs. However, the core technical expert team is retained to guide the Company to achieve higher and efficient level of performance.

9. DEPOSITORY SYSTEM / E-VOTING MECHANISM:

The Company has entered into a Tripartite Agreement with both the Depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (I) Ltd (CSDL) along with Registrars M/s Cameo Corporate Services Ltd, for providing electronic connectivity for dematerialization on the Companys shares facilitating the investors to hold the shares in electronic form and trade in those shares. The shares of your Company are being traded now on the BSE under compulsory demat form. Further, in accordance with provisions stipulated under Companies Act, 2013, the facility of e-voting is also made available to all shareholders of the Company. The instructions regarding e-voting is enclosed along with this report. All shareholders are also requested to update their email ids with the Company or our RTA M/s. Cameo Corporate Services Ltd. The Company has paid the Annual Depository fees for the FY 2021-22.

10. INVESTOR EDUCATION & PROTECTION FUND

During the year under review unclaimed dividend of Rs. 3,75,064/- and 16,289 number of shares were transferred to the Investor Education and Protection Fund (IEPF).

Mr.R.Siddharth, Company Secretary of the company is appointed as Nodal Officer, as

per the provisions of Companies Act, 2013 relating to IEPF and the above details are available in the official website of the company i.e. www.saverahotel.com.

11. DEPOSIT FROM PUBLIC

The Company has not accepted any fixed deposits under the provisions of the Companies Act, 2013.

12. A disclosure, as to whether maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained - NOT APPLICABLE.

13. DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors met eight (8) times during the year under review and the meeting dates are on 10.06.2021, 28.06.2021, 08.07.2021, 12.08.2021,13.11.2021, 15.11.2021,27.12.2021 and 07.02.2022 during the financial year 2021-22.

There were no appointment or resignation of Directors during the period under review.

Pursuant to the section 152 of the Companies Act, 2013, Mr.A.Tarun Reddy, Director retires by rotation and is eligible for re-appointment. The Board has recommended his re-appointment and accordingly resolution seeking approval of the members for his appointment has been included in the notice of the forthcoming Annual General Meeting of the company along with his brief profile.

CHANGES IN KMP?S DURING THE YEAR

Date of retirement of Company Secretary (KMP) Mr.N.S.Mohan - 31/12/2021

Date of appointment of Company Secretary (KMP) Mr.R.Siddharth - 01/01/2022

The Key Managerial Personnel of the company presently are Mr. A. Ravikumar Reddy, Managing Director, Mr. R.Siddharth, Company Secretary and Mr. CH Mahesh Kumar, Chief Financial Officer.

14. DIRECTORS? RESPONSIBILITY STATEMENT

On the basis of internal financial controls and systems relating to compliance maintained by the company, work done by the internal, statutory and secretarial auditors, the reviews performed by the management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the companys internal financial controls were adequate and effective during the financial year2021-22.

Pursuant to Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, and based on the representations received from the management, the directors hereby confirm that:

i. In the preparation of the Annual Accounts for the year 2021-22, the applicable accounting standards have been followed and there are no material departures;

ii. 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 at the end of the financial year 31st March,2022 and of the loss of the company for that period;

iii. They have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act. They confirm that there are adequate systems and controls for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

iv. They have prepared the annual accounts on a going concern basis;

v. They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating effectively;

vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

15. INTERNAL FINANCIAL CONTROLS

The Company has internal financial controls commensurate with the size of the complexity of the business operations and it has well defined internal audit functions. For the purpose of independence, the internal audit dept. reports to Chairman of the Audit Committee and the Board of Directors.

16. SECRETARIAL STANDARDS

The company has complied with the Secretarial Standards issued by Institute of Company Secretaries India.

16.1. SECRETARIAL AUDITOR

M/s. A.K.Jain Associates, Company Secretaries have been appointed as the Secretarial Auditor to carry out the Secretarial Audit for the year 2021-22. The Secretarial Audit Report given by them shall form part of this report as Annexure I.

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors in their Secretarial Audit report for the Financial Year 2021-22.

17. STATUTORY AUDITORS

In accordance with the provisions of Section 139 and 142 of the Companies Act, 2013, and the rules framed there under, M/s. S.Venkatram & Co., LLP, Chartered Accountants,218 TTK Road, Chennai 600 018 were appointed as statutory auditors of the company for a period of 5 years to hold the office from the conclusion of the 48th Annual General Meeting of the company held on 11.08.2017 till the conclusion of the 53rd Annual General Meeting(AGM).

The Board has recommended to the shareholders for their re-appointment as Statutory Auditors to hold office for second term of 5 years from the conclusion of this 53rd Annual General Meeting of the Company till the conclusion of 58th Annual General Meeting.

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors on the standalone financial statements in their report for the year 2021-22.

18. SIGNIFICANT AND MATERIAL ORDERS

There were no significant and material orders passed by the regulators or courts or tribunals affecting the going concern status and future operations of the company during the year under review.

19. INDEPENDENT DIRECTORS DECLARATION

Mr. A. Sudhakar Reddy and Mr. S. Sridhara Rao who are independent directors, have submitted a declaration that each of them meets the criteria of independence as provided in sub-section (6) of section 149 of the Companies Act 2013, and are in compliance with Regulation 16 and 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further , there is no change in their status as independent director during the year.

20. TRANSACTIONS WITH THE RELATED PARTIES

All related party transactions that were entered into during the financial year were in compliance with the applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Further, all contracts or arrangements with related parties entered into during the financial year ended 31-3-2022 were on arms length basis and in the ordinary course of business.

Therefore the particulars of contracts or arrangements with related parties as referred to in sub-section (1) of section 188 of the Companies Act, 2013 are, is not applicable.

21. CORPORATE SOCIAL RESPONSIBILITY.

The CSR Policy of the company and the details about the initiatives taken by the company on CSR during the year as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 have been disclosed in Annexure II to this Report. Further details of composition of the Corporate Social Responsibility Committee and other details are provided in Corporate Governance report. During the year under review, the CSR Committee meetings were held on 28.06.2021. The said CSR Policy is available in the Companys website.

22. NOMINATION AND REMUNERATION POLICY

The companys policy on directors appointment and remuneration and other matters provided in section 178(3) of the Companies Act, 2013 has been disclosed in the corporate governance report, which forms part of the directors report.

23. COMMITTEES

Currently, the Board of Directors of the Company pursuant to the mandatory provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has the following committees were included namely:

a) Audit Committee

b) Nomination & Remuneration Committee

c) Stakeholders Relationship Committee

d) Corporate Social Responsibility Committee

e) Share Transfer Committee

f) Internal Complaints Committee

A detailed note on the Board and its committees along with the composition of the committees and compliances is provided under the Corporate Governance Report section in this Annual Report.

24. BOARD EVALUATION

The performance evaluation of the Board as a whole, performance of non independent directors, the performance of the Board Chairman and the performance of committees were conducted and the same based on the questionnaire and feed back from all directors on the Board.

While undertaking the Board evaluation, the company also followed the required principles covered under the Guidance note issued by SEBI.

Important key criteria for performance evaluation are as follows.

Directors performance evaluation

a) Attendance at Board or Committee Meetings

b) Contribution at Board or Committee Meetings

c) Guidance/support to management outside Board/Committee meetings.

d) Performance evaluation of Board and Committees

e) Structure of the Board and Board composition

f) Establishment and delineation of responsibilities to Committees.

g) Effectiveness of Board processes, information and functioning.

h) Board culture and dynamics

i) Quality of relationship between Board and management.

j) Efficacy of communication with external stakeholders.

25. LISTING

The equity shares of the Company are listed on BSE Ltd and the listing fees are regularly paid by the company.

26. CORPORATE GOVERNANCE

In terms of Regulation 34 (2) & (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a report on Corporate Governance, the Practicing Company Secretary certificate on the compliance of conditions of Corporate Governance and the report on Management Discussion and Analysis form part of the Annual Report.

27. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

The information required under Section 134 (3) (m) of the Act, read with the companies (Accounts) Rules 2014 is furnished hereunder.

(A) CONSERVATION OF ENERGY

For the eco practices, the company has changed almost 99% of its lighting with LED lights reducing power consumption by 85% and the heat emission energy becomes very low, thereby through the STP, the sewerage and sewage water is treated and the treated water is recirculated for flushing system ,cooling towers and gardens.

The company also installed rain water harvesting system for collecting the rain water.

The company also installed organic waste convertor machine in which the organic wastes are converted into composite manure.

The company has fixed aerator in taps to save water the automatic tap in the guest toilet to save water and also for good hygiene practices.

B) TECHNOLOGY ABSORPTION

Hotel being a service industry, technology absorption, transfer etc., are not applicable. The Resilience of the companys Backbone Systems consists of Servers, VPN and Many Tools in companys disposal made possible to successfully do the Day to Day Operations sailed smoothly despite severe restrictions placed on movement of Staff during Lockdown period.

The company solemns pledged to exceed the expectations in every front serving the companys Valuable Clients Experience the Premiumness as always.

C) FOREIGN EXCHANGE EARNINGS AND OUTGO

The Foreign Exchange earned in terms of actual inflows during the year - NIL The Foreign Exchange outgo during the year in terms of actual outflows - Rs.10,83,450.71

28. The Change in the nature of business, if any :

There is no change in nature of business.

29. Statement regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year.

No Independent Directors were appointed during the year.

30. DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The Company has in place an Anti-Sexual harassment Policy in line with the requirement of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual and trainees ) are covered under this policy. The following is a summary of sexual harassment complaints received and disposed off during the year 2021-22.

Number of complaint received during the year - NIL

Number of Complaint disposed of during the year - NIL

31. The details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.

No application under IBC was initiated by the Company as on March 31, 2022. There was no instance of one time settlement with any Bank or financial institutions.

32. ANNUAL RETURN

A copy of the Annual Return 2021-22 is placed on the website of the company and can be accessed via weblink https://www.saverahotel.com.

33. PARTICULARS OF EMPLOYEES

The information required under section 197(12) of the Act, read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is furnished in the Annexure III to this report.

Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company.

34. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013.

The details of loans, guarantees and investments under section 186 of The Companies Act, 2013 has been furnished in Annexure IV to this report.

35. TRANSFER TO RESERVES

The Company has not transferred any amount to the reserves for the year ended March 31,2022.

36. DETAILS OF MATERIAL CHANGES FROM THE END OF FINANCIAL YEAR:

There have been no material changes and commitments affecting the financial position of the Company between the end of the financial year and date of this report.

37. DETAILS IN RESPECT OF FRAUDS.

There are no frauds as reported by the Statutory Auditors in Sl. No.11 of Annexure ‘A to the Independent Auditors Report.

GENERAL:

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.

(i) Issue of equity shares with differential rights as to dividend, voting or otherwise

(ii) Issue of shares (including sweat equity shares) to employees of the company under any scheme.

ACKNOWLEDGEMENTS

The directors would like to thank the Bankers of the Company, and other financial institutions for extending their financial support. They further express their thanks to the Central Government, State Government and other stakeholders for their patronage, support and guidance.

FOR AND ON BEHALF OF THE BOARD

CHENNAI A.Ravikumar Reddy A.Nina Reddy
05th August 2022 Managing Director Joint Managing Director