Wonderla Holidays Ltd Directors Report.

Dear Members,

Your Directors take pleasure in presenting the 18th Annual Report of Wonderla Holidays Limited along with audited financial statements for the financial year 2019-2020.

1. Overview of financial performance and business operations

The financial and operating highlights for the year under review, compared with the previous Financial Year, are given below:

Particulars 2019-20 2018-19
Income from operations 27,087.14 28,204.19
Operating Expenses 16,676.51 16,770.01
Profit from operations before depreciation and finance costs 10,410.63 11,434.18
Other income 1,200.86 961.51
Profit from ordinary activities before finance costs 11,611.49 12,395.69
Finance cost 67.55 40.63
Depreciation 4,177.02 3,951.22
Profit from ordinary activities after finance costs 7,366.92 8,403.84
Exceptional Item 1,891.93 -
Profit/ (Loss) before tax 9,258.85 8,403.84
Tax expense 2,780.45 2,862.43
Net profit after tax 6,478.40 5,541.41
Other Comprehensive income
Items that will not be reclassified subsequently to profit or loss (50.44) 17.48
Items that will be reclassified subsequently to profit or loss - -
Total other comprehensive income, net of tax (50.44) 17.48
Total comprehensive income for the year 6,427.96 5,558.89
Earnings per share (EPS)
Basic 11.46 9.81
Diluted 11.45 9.80

Review of Operations

For the year ended 31st March 2020 the Companys revenue from operations was 27,087 lakhs as against 28,204 lakhs during the corresponding period of previous financial year registering de-growth of 4%. Profit Before Tax grew by 10% to 9,259 lakhs as against 8,404 lakhs for the same period during the previous year. Net Profit After Tax for the fiscal 2019-20 was 6,478 lakhs as against 5,541 lakhs in 201819, 17% growth over previous year. During the Financial year total footfall across the three amusement parks were 23.81 lakhs as against 25.23 lakhs during the previous year. During the year under review, there was no change in the nature of the business of the Company.

Awards and Recognition

TripAdvisor Travellers Choice has ranked

Wonderla Bangalore as 3rd best Amusement Park in India

and 8th best in Asia;

Wonderla Kochi as 4th best in India and 16th best in Asia; and

Wonderla Hyderabad as 7th best in India.

We are proud to announce that the Company has been

certified as a Great Place To Work by the Great Place To Work Institute in the large size Organisation category. Wonderla earned this credential based on direct feedback from employees in an anonymous survey completed in 2019.

2. Dividend

The Board of Directors of the Company declared an Interim dividend of 18% i.e., 1.80 per equity share of face value 10 each on 25th February, 2020, which is in conformity with the Dividend Distribution Policy of the Company.

Considering the loss of revenue due to unprecedented situation of COVID - 19, the Board expresses inability to Declare Final Dividend for FY 2019-20.

As per Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR"), the top 500 listed entities based on market capitalisation are required to formulate Dividend Distribution Policy. The Company has formulated its Dividend Distribution Policy and the details are available on the Companys website at http://www.wonderla.com/investor-relations/prospectus-and- policies.html

3. Transfer to Reserves

The Company has transferred an amount of 647.84 Lakhs to the General Reserve during the year under review.

4. Share capital

The Authorised Equity Share Capital of the Company is 6,000 lakhs. Paid-up Share Capital as on 31st March, 2020 was 5,651.89 lakhs. During the financial year the Company has issued 10,076 equity shares to its employees pursuant to Employee Stock Option Scheme 2016 and the same were listed on BSE Limited and National Stock Exchange of India Limited.

No disclosure is required under Section 67(3)(c) of the Companies Act, 2013 in respect of voting rights not exercised directly by the employees of the Company as the provisions of the said Section are not applicable.

5. Deposits

During the year under review, the Company has not accepted deposits from the public falling within the ambit of Section 73 of the Companies Act, 2013 and the Rules framed thereunder.

6. Rating

During the year under review, the rating agency ICRA has reaffirmed AA- (Stable) rating for the Companys long term borrowings and assigned A1+ rating for the short term borrowings.

7. Annual Return

A copy of the Annual Return filed with the Ministry of Corporate Affairs shall be placed on the website and Extract of Annual Return (MGT-9) as per the requirement of Companies Act, 2013 is made available on Companys website www.wonderla.com/investor-relations.

8. Directors and Key Managerial Personnel

i. Appointments /re-appointments

Mr. Satheesh Seshadri was appointed as Chief Financial Officer (CFO) of the Company.

The Board, based on the recommendation of the Nomination and Remuneration Committee and subject to approval of the Members, approved appointment of Mr. Arun K Chittilappilly, as Whole-time Director of the Company w.e.f 1st April, 2020.

Pursuant to Section 161 of the Companies Act, 2013, Mrs. Anjali Nair was appointed as an Additional Director (Non-Executive Independent) for a period of five years effective from 1st April, 2020, subject to approval of Members at the ensuing Annual General Meeting of the Company.

Mr. George Joseph was appointed as Joint Managing Director of the Company for a period of two years

effective from 9th July, 2018, post approval of Members. The present term of Mr. George Joseph ends on 8th July, 2020. The Board, based on the recommendation of the Nomination and Remuneration Committee and subject to approval of the Members, approved re-appointment of Mr. George Joseph as Joint Managing Director and Key Managerial Person (KMP) for a further term of two years.

ii. Resignations /re-designations

Mr. Jacob Kuruvilla resigned as the Chief Financial Officer (CFO) of the company. The Board acknowledges his contribution to the company.

Mr. Kochouseph Chittilappilly has resigned from the Office of Executive Vice-Chairman due to his other occupation. The Board has re-designated him as NonExecutive Director w.e.f 1st April, 2020 based on the recommendation of Nomination and Remuneration Committee.

Ms. Priya Sarah Cheeran Joseph has resigned from the Office of Executive Director due to her personal circumstances. The Board has re-designated her as Non-Executive Director w.e.f 1st April, 2020 based on the recommendation of Nomination and Remuneration Committee.

Mr. R. Lakshminarayanan an Independent Director of the Company, has vast experience in the domains of Product Development, Brand Management, Sales & Marketing and general management functions. The Board with the view to utilise his professional experience to a greater extent, based on the recommendation of the Nomination and Remuneration Committee, approved to re-designate him as Non-Executive NonIndependent Director w.e.f 1st April, 2020.

9. Directors Responsibility Report

Pursuant to the requirement of Section 134 (5) of the

Companies Act, 2013, the Board of your Company state that:

i. In preparation of annual accounts for the FY 2019-20, applicable Accounting Standards have been followed along with proper explanation being provided relating to material departure, if any;

ii. The Accounting policies have been selected and applied consistently and the judgement and estimates made are reasonable and prudent so as to give true and fair view of the affairs of the Company as on 31st March 2020 and of the Profit of the Company for the same period;

iii. The annual accounts are being prepared on going- concern basis;

iv. Internal financial controls are in place and such internal financial control are adequate and operating effectively;

v. Proper and sufficient care is being taken towards the maintenance of accounting record for safeguarding

the assets of the Company and for preventing and detecting frauds and irregularities; and

vi. Proper system being followed to ensure compliance with the provisions of all applicable laws and such system is adequate and operating effectively.

Based on the framework of internal financial controls, compliance systems established and maintained by the Company, work performed 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 efficient during the financial year 2019-20.

10. Internal Financial Control Systems and their adequacy

The Board has devised systems, policies and procedures/ frameworks, which are currently operational within the Company for ensuring the orderly and efficient conduct of its business, which includes adherence to policies, safeguarding its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial information. In line with best practices, the Audit Committee and the Board reviews these internal control systems to ensure they remain effective and are achieving their intended purpose. Where weaknesses, if any, are identified as a result of the reviews, new procedures are put in place to strengthen controls. These controls are in turn reviewed at regular intervals.

The systems/frameworks include proper delegation of authority, operating philosophies, policies and procedures, effective IT systems aligned to business requirements, an internal audit framework, a risk management framework and adequate segregation of duties to ensure an acceptable level of risk. Documented controls are in place for business processes and IT general controls. Key controls are tested by entities to assure that these are operating effectively.

The Company has documented Standard Operating Procedures (SOP) for procurement & stores, retail, finance and treasury.

The Companys internal audit activity is an important element of the overall process by which the Audit Committee and the Board obtains the assurance on the effectiveness of relevant internal controls.

The scope of work, authority and resources of internal audit are regularly reviewed by the Audit Committee. Besides, its work is supported by the services of audit firm. The Companys system of internal audit includes: covering monthly physical verification of inventory, a monthly review of accounts and a quarterly review of critical business processes. To enhance internal controls, the internal audit

follows a stringent grading mechanism, focussing on the implementation of recommendations of internal auditors. The internal auditors make periodic presentations on audit observations, including the status of follow-up to the Audit Committee.

Since the Company has adequate internal control systems which are further strengthened by periodic reviews as required under the Listing Regulations by the Statutory Auditors, the Joint Managing Director and CFO recommend to the Board continued strong internal financial controls.

Based on the information provided, nothing has come to the attention of the Directors to indicate that any material breakdown in the function of these controls, procedures or systems occurred during the year under review. There have been no significant changes in the Companys internal financial controls during the year that have materially affected, or are reasonably likely to materially affect its internal financial controls.

Further, the Audit Committee periodically evaluates the internal financial controls for ensuring that the Company has implemented robust systems/ framework of internal financial controls viz. the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information.

11. Safety & Hygiene

At Wonderla, in order to ensure the safety and security of our guests, we conduct a routine check on every ride, which goes up to a list of many checks depending upon the rides complexity. TUV, an agency from Germany, has also been periodically deployed for this purpose and strengthens the security measures of our amusement parks.

Risk Management Initiatives

We have put in place comprehensive safety procedures as part of our risk management programme.

1. There is a comprehensive operations manual providing instructions for the safe operation, maintenance and use of all rides.

2. Adequate number of operating and supervisory staff is maintained at the rides at all times. 3. Formal training programmes for technicians, ride operators and attendants encompassing all safety aspects.

3. All rides are subjected to daily pre-opening check as per a comprehensive checklist.

4. There is a detailed monthly and annual check of all rides.

5. Shutdown and overall maintenance of all rides are being performed. All critical parts of the rides are periodically subjected to a non-destructive test (NDT).

6. Authorised external agencies like T.U.V Germany are engaged to periodically check our rides and ensure compliance with the safety protocol.

7. As a part of improving safety fail safe PLC with safety interlocks & alarms being started implementing in high thrill rides.

8. Trained lifeguards and ride attendantsare deployed in pools and water rides

9. IS 10500 for drinking water and IS 3328 for pool water is being followed and periodically tested in external laboratories.

10. In house water quality assurance laboratory and frequently monitoring the quality of water in pools & treatment plants ensuring IS standards.

11. Zero discharge water treatment process which includes separate treatment for raw water, pool water, restaurant waste water and sewage water. Also using treated water through reverse osmosis as per need.

12. Follows rules and regulations as per Pollution control board directions.

13. Bureau Veritas Certification periodically conducts audit of our Integrated Management System (IMS) and certify that our systems are in conformity with the Management System Standards - ISO: 14001:2015 & OHSAS 18001:2007. Their present certification is valid till 21st July 2020.

14. We have a dedicated audit team who independently check rides and report to the top management for immediate action wherever required. In addition to this ride risk review committee periodically review the safety aspects.

15. For handling any emergency situation, we have a well- trained Emergency Response Team (ERT) in each park.

16. Mock drills are conducted in each park periodically to enhance the effectiveness of the ERT.

17. There is a well-equipped paramedic first aid clinic in each park. This clinic is also provided with Automated External Defibrillator (AED) for handling any sudden cardiac arrest before the victim is rushed to the hospital.

18. Two well-equipped ambulance vans with the driver are stationed in each park.

19. Signages and announcements in the public address system about the safe and proper use of the facility by guests.

Water park

1. Pool water is maintained as per standard IS 3328.

2. Drinking water is maintained as per standard IS 10500.

3. In house water quality assurance lab for testing pool water and drinking water on frequent intervals.

4. Water quality is being checked periodically through external laboratory.

5. Online disinfectant dosing and is being monitored to maintain standards.

6. All pools are equipped with an online filtration system to assure the water quality throughout the day.

7. Treatment plants consisting of separate treatment system and process for different types of wastewater.

8. Reverse osmosis treated water used across parks wherever needed.

9. Frequent housekeeping & cleaning process is done in the water park to maintain hygiene.

10. Dedicated space for treatment plants and chemical storage are well maintained to ensure hygiene.

11. Drinking water point coolers are provided with UV disinfection.

Restaurants

1. Frequent housekeeping & cleaning process is ensured in the restaurants for both kitchen and service area.

2. Restaurant staff wear hand gloves and caps to maintain hygiene.

3. Health card and periodical medical check-up for restaurant staff.

4. Installed pesto flash for avoiding the flies in restaurants.

5. Periodical pest control for restaurants including kitchen & storage area.

6. All restaurant kitchens are provided with hand wash facilities for staff.

7. Hot water facility to all restaurant kitchens for cleaning of utensils.

8. Food waste removal & disposal on daily basis.

9. Periodical shutdown maintenance for kitchen to ensure proper hygiene and pest control activities.

10. Separate storage for raw materials, vegetables & non vegetarian items as per standards.

General

1. Separate waste bins are provided with proper identification for biodegradable items at multiple locations.

2. Waste is collected and segregated on a daily basis.

3. Pest & rodents control at all areas on a frequent interval.

4. All toilets are monitored regularly and well maintained by housekeeping crews.

5. Hand Wash facilities along with liquid soap are provided at all toilets.

6. High Pressure water cleaning at all areas including pathways.

7. Cleaning of all areas including sitting areas, ride seats, theatre seats and safety lock bars on daily basis.

9. UV sterilisation of 3D goggles at theatre shows and sterilised goggles are provided for each show.

10. Fresh water shower facility at changing rooms.

11. Cleaning of ez-pay band with disinfectant on daily basis.

12. Proper waste disposal methods are being followed as per pollution control board norms.

12. Corporate Governance

The Board of Directors seeks to embed and sustain a culture that will enable the Company to achieve its objectives through effective corporate governance and enhance transparent engagement with key stakeholders. In its constant endeavour to benchmark the policies and practices and in light of various developments in the realm of corporate governance and regulatory reforms, the Company continues to maintain and implement noble standards of corporate governance and ethical business practices.

A separate report on Corporate Governance setting out the governance structure, principal activities of the Board and its Committees and the policies and practices that enable the Board to fulfil its stewardship responsibilities together with a Certificate from the Statutory Auditor of the Company M/s. BSR & Associates LLP, Chartered Accountants, confirming compliance with the conditions of corporate governance is attached with the Corporate Governance Report as Annexure - I.

13. Composition and Meetings of the Board and Committees

During the financial year 2019-20, the Board of Directors had six board meetings. The details regarding the composition and meetings of the Board as well as Committees are provided in the Corporate Governance Report, forming part of this Report as Annexure - I.

14. Declaration from Independent Directors

For the year under review, the Company has received declarations from the Independent Directors of the Company viz., Mr. M. Ramachandran (DIN: 00177699), Mr.Gopal Srinivasan (DIN: 00177699), Mr. R. Lakshminarayanan (DIN: 00238887) and Mrs. Anjali Nair (DIN: 08574898) which state that they fulfill the criteria to act as Independent Director as envisaged in Section 149 (6) & (7) of the Companies Act, 2013 as well as under SEBI (LODR) Regulations, 2015.

15. Nomination and Remuneration Policy

Your Company has adopted a Nomination and Remuneration Policy in terms of Section 178 of the Companies Act, 2013. There has been no change in the policy since the previous year. The said Policy is annexed to this Report and is available on the Companys website at http://www.wonderla.com/ investor-relations/prospectus-and-policies.html

16. Annual Performance Evaluation of Board, Committees and Directors and familiarisation to Independent Directors

The evaluation of the performances of the Board, Committees and Directors was undertaken in compliance with the provisions of Section 134 (3) (p) read with Schedule IV of the Companies Act, 2013.

To provide insight into the Company and familiarise the Independent Directors with Companys business operations, the Board and Management of the Company conducted programmes and presentations about the strategies, operations, market, finance, human resource, technology, etc.

17. Statutory Auditor

As per Section 139 of the Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014, the Members of the Company had approved the appointment of BSR & Associates LLP, Chartered Accountants (Firm Registration No. 116231W/W-100024) as statutory auditors of the Company at the 15th Annual General Meeting (AGM) of the Company for a term of four years, which is valid till 19th AGM to be held in 2021, subject to ratification of their appointment by the Members at every AGM. However, the requirement for the annual ratification of auditors appointment at the Annual General Meeting has been omitted pursuant to Companies (Amendment) Act, 2017 notified on 7 May, 2018. The Statutory Auditors have confirmed that they satisfy the independence criteria as required under the Act.

The Report given by BSR & Associates LLP, Chartered Accountants, on the financial statements of the Company for the year 2020 is a part of the Annual Report. There has been no qualification, reservation or adverse remark or disclaimer in their Report. During the year under review, the Auditors have not reported any matter under Section 143 (12) of the Act, therefore, no detail is required to be disclosed under Section 134 (3)(ca) of the Act.

18. Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Rules thereunder, Mr.Somy Jacob of Somy Jacob & Associates, Company Secretaries, is appointed as the Secretarial Auditor of the Company for the FY 2019-20. The Secretarial Audit Report and Secretarial Compliance Report submitted by him are annexed to this Report as Annexure - II.

19. Board Diversity Policy

Your Company believes that a diverse and inclusive Board is essential for achieving long-term growth and development of the Company. This ensures timely anticipation of risks and opportunities. The Company has a diverse Board consisting of Directors possessing variety of skills, expertise, qualifications and experience. The details of the key qualifications, skills and attributes are forming part the Corporate Governance Report. Your Company has a Board Diversity Policy which is available on the Companys website at http://www.wonderla. com/investor-relations/prospectus-and-policies.html

20. Related Party Transactions

During the financial year 2019-20, you company has not entered into any contract/ arrangement/ transaction with related parties which could be considered material in accordance with the Policy of the Company for Related Party Transactions. The Company has formulated a policy on Materiality of Related Party Transactions and the procedure to deal with related party transactions. The detailed policy is accessible on the website of the Company (www.wonderla. com/investor-relations/prospectus-and-policies).

Since there were no material related party transactions entered by the Company during the Financial Year 2019-20 as per Related Party Transactions Policy, no detail is required to be provided in Form AOC-2 prescribed under Clause (h) of Sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014.

21. Vigil Mechanism

The Vigil Mechanism (Whistle Blower policy) of the Company encourages its Directors and employees to bring to the notice of the Company of any unethical conduct, misuse of unpublished price sensitive information, actual or suspected fraud or violation of Wonderlas Code of Conduct.

The mechanism provides for adequate safeguards against victimisation of Directors and employees and also provides for direct access to the Chairman of the Audit Committee. The detailed Whistle Blower Policy is available on the website of the Company (www.wonderla.com/investor-relations/ prospectus-and-policies).

22. Policy on Prevention of Sexual Harassment at Workplace

Your Company has in place a Policy on Prevention of Sexual Harassment at Workplace in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rules framed thereunder and Internal Complaints Committee has also been set up to redress complaints received regarding sexual harassment. During the year the Company has not received any complaints pertaining to sexual harassment at workplace.

23. Corporate Social Responsibility

The composition, role, functions and powers of the Corporate Social Responsibility (CSR) Committee of the Company are in accordance with the requirements of the Companies Act, 2013. Your Company has been a pioneer towards fulfilling its CSR obligations and has taken initiatives under CSR Programme. Your Company has a CSR Policy and the same has been placed on Companys website www.wonderla.com. The Annual Report on CSR Activities is provided in Annexure - III, forming part of the Directors Report.

24. Management Discussion and Analysis

The Management Discussion and Analysis Report for the year under review is annexed hereto and forms part of the Directors Report as Annexure - IV.

25. Business Responsibility Report

SEBI extends the applicability of Business Responsibility Reporting to Top 1000 listed entities by amending Regulation 34(2) (f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Your company, being one of such 1000 listed entities, has included Business Responsibility Report, as a part of Annual Report, describing measures taken by them along the key principles elucidated in the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business framed by the Ministry of Corporate Affairs (MCA). The Report is annexed as Annexure - V.

26. Particulars of loans, guarantees and investments

The particulars of the loans given, guarantees provided and investments made by the Company pursuant to Section 186 of the Companies Act, 2013 for the year ended 31st March, 2020 are provided in the Notes to the financial statements.

27. Conservation of Energy, Technology upgradation & Foreign Exchange earnings & outgo

The information on conservation of energy, technology upgradation, foreign exchange earnings & outgo, pursuant to Section 134(3) (m) read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure - VI.

28. Secretarial Standards

Your Company is in compliance with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) and approved by the Central Government under Section 118 (10) of the Act.

29. Particulars of employees

Your Directors particularly acknowledge the untiring effort, whole-hearted support and co-operation extended by employees at all levels.

As on 31st March, 2020 total number of permanent employees in the Company are 621.

The particulars of employees in accordance with the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed as Annexure - VII.

Details of employee remuneration as required under provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(2) & 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are available at the Registered Office of the Company during working hours, 21 days before the Annual General Meeting and shall be made available to any Shareholder on request. Such details are also available on your Companys website http://www.wonderla. com/investor-relations/annual-reports.html

30. Employee Stock Option Scheme

Your Company has an Employee Stock Option Scheme viz., Employee Stock Option Scheme (ESOS) 2016 and the same is in line with the provisions of SEBI (Share Based Employee Benefits) Regulations, 2014. The Company has received a certificate from the Statutory Auditor of the Company that the Scheme has been implemented in accordance with the SEBI (Share Based Employee Benefits) Regulations, 2014 and the resolution(s) passed by the Members of the Company. The certificate would be placed at the ensuing AGM for inspection by Members of the Company.

Relevant disclosures pursuant to Rule 12 (9) of the Companies (Share Capital and Debentures) Rules, 2014 and Regulation 14 of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 have been made and the same is attached to this report as Annexure- VIII.

31. Variation of market capitalisation of the Company

The equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE). The market capitalisation as on 31st March 2020 was 789.00 Crores as against 1,752.34 Crores as on 31st March 2019.

32. Investor Relations

Your Company has an active Investor Relations (IR) Programme and continuously strives for excellence in its IR engagement with international and domestic investors through various mediums such as quarterly earnings calls, Investor & Analyst Days, site visits, one-on-one and group meetings, participation in investor conferences and non-deal Roadshows.

The senior management consisting of Joint Managing Director and CFO involve themselves regularly in investor and analyst interactions who make detailed and transparent disclosures on the Companys operational and financial performance. The investor and the analyst community have appreciated your Companys IR team and the practices.

33. Chennai project update

The Company with the objective of setting up its fourth amusement park in Chennai has invested about 109 Crores till March 31, 2020 towards land & land development cost and rides. In view of the levy of Local Body Entertainment Tax (LBT) of 10% by the Government of Tamil Nadu under Tamil Nadu Local Authorities Entertainment Tax Act, 2017, over and above GST of 18%, the project was put on hold for some time.

The Company has made a representation to the said Government for exemption of amusement parks from levy of LBT considering majority of its visitors being School and College students and the huge capex required for construction of amusement parks.

The Government of Tamil Nadu having considered Companys representation has specifically exempted the Company, since the Companys project was approved at Global Investor Meet (GIM), from levy of LBT for a period of five years commencing from 1st November 2019.

Considering the time involved for completion of the Project, the Company has again made a representation to the Government of Tamil Nadu for extension of the exemption granted. Having reflected on the Companys plea, the Government of Tamil Nadu vide its Order dated 12th February 2020 has amended the earlier exemption given to the Company on levy of Entertainment Tax.

As per the amended Order the Company was exempted from levy of Entertainment Tax for a period of five years from the commencement of Companys commercial operations or 30th September, 2021 whichever is earlier.

The Company has obtained NOCs from the Fire Department, Pollution Control Board and the Forest Department etc., and awaiting the final clearance from the Department of Town and Country Planning (DTCP).

In current scenario, it is extremely tough to complete the construction before 30th September, 2021. The Company intends to appeal to the Government of Tamil Nadu for duly extending the exemption period to cover the COVID related delay.

Once the final clearance is received, the Company will critically analyse the situation and take a suitable decision on the commencement of Chennai project construction.

34. Odisha project update

The Government of Odisha has approached the Company to set up an amusement park in Odisha. The Government has offered land on long term lease basis and other incentives. The Company has expressed its willingness to the Government of Odisha to develop an asset light model amusement park.

The State Level Single Window Clearance Authority of the Government of Odisha in its meeting held on 27th December 2019 has considered the Companys proposal for setting up an amusement park in the District of Khurda with an investment of Rs 107.10 crores and granted in-principle approval for amusement park project.

35. Impact due to COVID - 19

The break-out of COVID 19 and consequent lockdowns imposed by the Government of India has left serious repercussions on the businesses. The long-term impacts of the unprecedented COVID-19 pandemic are just beginning to come into focus for amusement parks as they prepare to face the future.

The amusement parks and resort being shut from mid of March 2020, your Company is extremely affected with lack of revenue. The Company has recorded Revenue of Rs. 10,269 Lakhs from its operations during April and May 2019. During the corresponding period of 2020, the Company has not recorded any revenue from its operations. In view of this, the Company has taken stringent cost reduction measures due to which the Company could reduce the expenses.

36. Significant/Material Orders Passed by the Regulators

There are no significant and material orders passed by the Regulators or courts or tribunals that would affect the going concern status or operations of the company.

37. Appreciation

Your Board of Directors take this opportunity to thank all the employees, members, customers, suppliers, bankers and regulatory authorities for their constant support and cooperation towards the Company.

For and on behalf of the Board of
Wonderla Holidays Limited
Place: Bangalore M. Ramachandran
Date: 26th May, 2020 Chairman