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Mahindra Holidays & Resorts India Ltd.

BSE: 533088 Sector: Services
NSE: MHRIL ISIN Code: INE998I01010
BSE 00:00 | 24 Jan 240.80 4.85
(2.06%)
OPEN

238.10

HIGH

244.40

LOW

236.55

NSE 00:00 | 24 Jan 238.90 2.60
(1.10%)
OPEN

236.60

HIGH

244.85

LOW

236.60

OPEN 238.10
PREVIOUS CLOSE 235.95
VOLUME 1193
52-Week high 256.00
52-Week low 185.10
P/E 44.84
Mkt Cap.(Rs cr) 3,216
Buy Price 235.00
Buy Qty 1.00
Sell Price 242.00
Sell Qty 1.00
OPEN 238.10
CLOSE 235.95
VOLUME 1193
52-Week high 256.00
52-Week low 185.10
P/E 44.84
Mkt Cap.(Rs cr) 3,216
Buy Price 235.00
Buy Qty 1.00
Sell Price 242.00
Sell Qty 1.00

Mahindra Holidays & Resorts India Ltd. (MHRIL) - Chairman Speech

Company chairman speech

Dear Shareholders

Your Company was set up with a singular objective to offer unmatchedfamily holidaying experiences. This is being done year after year by creating best inclass fully serviced holiday resorts backed by the highest standards of serviceexcellence. It is a matter of pride that every time I meet a member he/she says ‘yourpeople in resorts are very caring and looked after us very well'.

Mahindra Holidays is India's market leader in the vacationownership business with 61 resorts in India and abroad and over 2.43 lakhs members. Withits Finnish subsidiary Holiday Club Resorts your Company has over 3 lakhs members andadditional 33 resorts in Europe. This makes Mahindra Holidays the largest vacationownership company outside the USA. Let me share with you salient points of MahindraHoliday's performance for 2018-19: Your Company's total membershipreached 243574 a CAGR of 7.4% over the last five years.

On a standalone basis your Company now has a total room inventoryof 3595 units across 61 resorts. In addition a greenfield project at Assanora (Goa) andan expansion project at Ashtamudi (Kerala) are under construction and will add another 300rooms. Another project — a 140 room expansion at Kandaghat Himachal Pradesh —is in the planning and approval stage. In addition your Company has a good pipeline ofland bank for future projects. It is also continuously looking at opportunities to acquireand lease new resorts. I am sure you will see a significant growth in this area in thenear future. The quality of your Company's resorts and the services that theseprovide have been recognised through numerous awards. Mahindra Holidays has the uniquedistinction of having 31 RCI Gold Crown and 3 Silver Crown resorts in India. It was rankedas the ‘Most Popular Resort Chain' by Times Travel Awards in 2018-19. TripAdvisor has awarded Certificate of Excellence to 17 of our resorts.

Your Company has invested in significantly improving itsmembers' experience both by use of technology and constantly upskilling itsemployees. Introduction of ‘Holiday Experts' for end-to-end onboardingexperience of new members helped increase unique member holidays by 7.3% in 2018-19. Theseinnovations have helped your Company to maintain a high average occupancy rate of 83% in ayear even when severe floods and untimely rains affected as much as 30% of its inventoryfor approximately three months.

I am particularly proud of the quality of "Team ClubMahindra". During 2018-19 each employee received an average of 11.3 man days offocused training. Not surprisingly Mahindra Holidays was conferred "SignificantAchievement in HR Excellence" at the "HR Excellence Award for 2018-19" byConfederation of Indian Industry; and featured among "India best companies to workfor: Top 100 2018" by the "Great Place to Work Institute". In additionthe Company is doing good work in the area of CSR and Sustainability which is mentionedin the Management Discussion and Analysis.

From 1 April 2018 Mahindra Holidays adopted the AccountingStandard Ind AS 115 which requires income from vacation ownership contracts to berecognised over the tenure of membership. Prior to this the accounts were preparedaccording to Ind AS 18 where 60% of the sale value of Vacation Ownership membership i.e.the non-refundable admission fee was accounted for as income in the year of sale and thebalance 40% was recognised over the tenure of the membership.

Now under the new Accounting Standard Ind AS 115 revenue isrecognised on a prorata basis over the tenure of the membership. While a significantpart of the income is deferred only a small portion of the costs such as commissionincentives and offers directly linked to membership acquisition are deferred. As a resultthe reported income and profits are lower under Ind AS 115. While this has affected ourrevenue and profitability for the current year the good news is that the Company now hasa significant Deferred Revenue balance as on 31st March 2019 of Rs. 523931.77lakhs while the Deferred Costs are only

Rs. 68842.63 lakhs. This will augur well for the future as it willsignificantly improve profitability in the coming years on account of recognising income(net of costs) of earlier years. The Management of your Company is continuously improvingthe additions to its existing member base and has taken significant steps to improve boththe processes of acquisition and quality of membership. In addition they are also lookingat new opportunities of revenue growth plans for which are in advance stages.

My heartfelt thanks to all our employees in India and at the HolidayClub Resorts Finland for making Mahindra Holidays the great Company that it is. Also abig thank you to our members business partners and associates. And my gratitude to youshareholders for keeping your faith in us.

With best regards

Arun Nanda

Chairman