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Pecos Hotels & Pubs Ltd.

BSE: 539273 Sector: Services
NSE: N.A. ISIN Code: INE484S01010
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NSE 05:30 | 01 Jan Pecos Hotels & Pubs Ltd
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VOLUME 9000
52-Week high 35.95
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OPEN 26.90
CLOSE 26.90
VOLUME 9000
52-Week high 35.95
52-Week low 16.00
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pecos Hotels & Pubs Ltd. (PECOSHOTELS) - Director Report

Company director report

Dear Members

Your Directors are pleased to present the 15th Annual Report and theCompany's Audited Accounts for the Financial Year ended March 31 2020.

1. FINANCIAL RESULTS:

( Rs. in lakhs)
Particulars 2019-2020 2018-2019
Revenue from Operations 811.17 747.88
Other Income 4.76 4.00
Total Revenue 815.93 751.88
Less: Total Expenses 774.34 693.12
Profit before tax 41.59 58.76
Tax Expenses 11.22 17.99
Profit after tax 30.37 40.77
Earning per equity share- Basic & Diluted 2.32 3.11

2. DIVIDEND:

In view of the rapid expansion of the Company it would be prudent to reinvest theprofit into the Company at this stage. In view of this Directors have not recommended anydividend on equity shares for the year under review.

3. REVIEW OF OPERATIONS:

During the year under review Revenue from Operations of the Company was Rs.811.17Lakhs as compared to Rs.747.88 Lakhs in the corresponding previous year. The Companyearned a profit after tax of Rs.30.37 lakhs as compared to Rs.40.77 lakhs in the previousyear. The Company's reserve and surplus increased from Rs.296.55 Lakhs to Rs.311.13 Lakhs.

4. DEPOSITS:

Your Company has not accepted any deposits within the meaning of section 73 of theCompanies 2013 and the Companies (Acceptance of Deposits) Rules 2014.

5. SHARE CAPITAL:

At present the Company has only one class of shares - equity shares with face value ofRs. 10 each. The paid up share capital of the Company is Rs. 130.98 Lacs. Divided into1309875 equity shares of Rs. 10/- each

During the year under review the Company has not issued shares with differentialvoting rights nor granted stock options nor sweat equity.

6. SUBSIDIARIES/ JOINT VENTURES/ ASSOCIATES:

As on date the Company does not have any subsidiary joint venture or associatecompany.

7. CHANGES IN NATURE OF BUSINESS:

There is no significant change made in the nature of the company during the financialyear.

8. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THECOMPANIES ACT 2013:

Details of Loans guarantees or Investments if any covered under the provision ofSection 186 of the Companies Act 2013 are given in the notes to the Financial Statements.

9. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS:

No such orders have been passed by the Regulators/Courts or Tribunals which can impactthe going concern status and company's operation in future.

10. DETAILS OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO:

(a) Conservation of Energy:

The Company requires energy for the purpose of general lighting adequate measures forthe conservation of energy are being undertaken by the Company through the exercise ofgeneral checks and controls.

(b) Research and Development:

The company has made efforts to develop food preparation practices that minimize theuse of energy

(c) Technology Absorption Adaption and Innovation:

(i) Efforts made:

The company has implemented food preparation techniques of the highest standard andproper storage facility to control the wastage of raw materials and semi prepared food andalso efforts are made to develop the process that reduce energy consumptions.

(ii) Benefits derived as a result of above efforts:

The above efforts resulted in client enjoying a better quality product that isdelivered to them quicker and also resulted in reduction of cost of production andenhancing higher margin.

(d) Foreign Exchange Earnings and outgo:

Your company does not have any foreign exchange earnings and outgo during the yearunder review.

11. EXTRACTS OF ANNUAL RETURN:

The extracts of Annual Return to the provisions of Section 92 read with Rule 12 of theCompanies (Management and Administration) Rules 2014 in MGT-9 is attached herewith as AnnexureI.

12. RISK MANAGEMENT:

The Company has established a well-defined process of risk management wherein theidentification analysis and assessment of the various risks measuring of the probableimpact of such risks formulation of risk mitigation strategy and implementation of thesame takes place in a structured manner. Though the various risks associated with thebusiness cannot be eliminated completely all efforts are made to minimize the impact ofsuch risks on the operations of the Company. In the opinion of the Board there are norisks which would threaten the existence of the Company.

13. DIRECTORS AND KEY MANAGERIAL PERSONNEL:

The Board of Directors of your Company has varied executive and non-executive directorsincluding Independent Directors who have wide and varied experience in differentdisciplines of corporate functioning.

In accordance with the provisions of Section 152 of the Companies Act 2013 andArticles of Association of the Company Mr. Liam Norman Timms (DIN: 06453032)retires by rotation at the ensuing Annual General Meeting and being eligible in terms ofSection 164 of the Act offers himself for re-appointment.

Mr. Jimmy Kuruvila Executive Director & CEO of the Company has resigned witheffect from 11th February 2020. The Board placed on record its appreciation forthe assistance and guidance provided by Mr. Jimmy Kuruvila during his tenure as theExecutive Director & CEO of the Company.

As required under Section 203 of the Companies Act 2013 the Company has Mr. LiamNorman Timms- Whole-Time Director Mr. Pradosh Dhanaraj- Executive Director Mr. ShaileshB. M. Chief Financial Officer and Mr. Rajiv Kumar Sharma as Company Secretary under KeyManagerial Personnel of the Company.

14. DECLARATION BY INDEPENDENT DIRECTORS:

The Members of the Company on 25th March 2015 approved the appointment ofMr. Koilpillai Joseph Davaraj Mr. Lloyd John Pereira and Ms. Nina Nayar as IndependentDirectors of the Company for a period of five years with effect from 25thMarch 2015. Mr. Koilpillai Joseph Davaraj Mr. Lloyd John Pereira and Ms. Nina Nayar havecompleted their respective terms on 24th March 2020.

In the opinion of the Board Mr. Davaraj Mr. Pereira and Ms. Nayar fulfill theconditions specified in the Act the Rules thereunder and the Listing Regulations 2015 forreappointment as Independent Directors and they are independent of the management of theCompany.

Consents for re-appointment as Independent Directors have been received by the Companyfrom Mr. Davaraj Mr. Pereira and Ms. Nayar under the Act.

Mr. Koilpillai Joseph Davaraj Mr. Lloyd John Pereira and Ms. Nina Nayar have submitteda declaration that each of them meets the criteria of Independence as provided in Section149(6) of the Companies Act 2013 and there has been no change in the circumstances whichmay affect their status as Independent Director during the year.

15. MEETING OF BOARD OF DIRECTORS:

During the year under review 9 Board Meetings were held. The intervening gap betweenthe meetings was within the period prescribed under the Companies Act 2013

SR.NO Date on which board Meetings were held
1 20-April -2019
2 17-May-2019
3 13-June-2019
4 29-June-2019
5 2-September-2019
6 11-November-2019
7 15-January-2020
8 12-February-2020
9 21-March-2020

16. DIRECTORS RESPONSIBILITY STATEMENT:

In accordance with provisions of Section 134(5) of the Companies Act 2013 the Boardhereby submits its Responsibility Statement:

i. In the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

ii. The directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year 31stMarch 2020 and of the profit and loss of the company for that period;

iii. The directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;

iv. The directors had prepared the annual accounts on a going concern basis;

v. The directors in the case of a listed company had laid down internal financialcontrols to be followed by the company and that such internal financial controls areadequate and were operating effectively.

vi. The directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

17. CORPORATE SOCIAL RESPONSIBILITY:

Since the Company's Net worth does not exceed Rs.500 crores or the Company's turnoverdoes not exceed Rs.1000 crores or the Company's Net Profit does not exceed Rs.5 Crores forany Financial Year the provisions of section 135 of the Companies Act 2013 are notapplicable.

18. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:

The particulars of Contracts or Arrangements made with related parties made pursuant toSection 188 of the Companies Act 2013 is furnished in form AOC-2 is attached herewith as AnnexureII.

19. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL) ACT 2013

No cases filed during the financial year and their disposal under the Act.

20. VIGIL MECHANISM POLICY

Your Company has established a reputation for conducting business with integrity andhas zero tolerance for any act /form of unethical behavior. In view of this The AuditCommittee of the Board oversees the functioning of this policy. Details of this policy isavailable on the company's website at www.pecospubs.com

21. AUDITORS:

Pursuant to provisions of section 139 of the Companies Act 2013 and the rules framedthere under M/s Phillipos & Co. Chartered Accountants were appointed as StatutoryAuditors of the company at the Extraordinary General Meeting of the company held on 5thJune 2020 subject to approval by the shareholders at the Annual General Meeting heldon 3rd September 2020 of the Company for a term of five consecutive years.

22. AUDITORS' REPORT AND SECRETARIAL AUDITORS' REPORT

The auditors' report and secretarial auditors' report does not contain anyqualifications reservations or adverse remarks. Report of the secretarial auditor isgiven as an Annexure III which forms part of this report.

23. CORPORATE GOVERNANCE

The Company has taken adequate steps to adhere to all the stipulations laid down underSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015. A report on Corporate Governance included as a part of this AnnualReport is given in Annexure-IV.

Certificate from the Practicing Company Secretary of the company confirming thecompliance with the conditions of Corporate Governance as stipulated under the SME ListingAgreement and Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 is attached to this Annual Report.

24. MANAGEMENT DISCUSSSION AND ANALYSIS REPORT:

The Management Discussion and Analysis Report is given as an Annexure V whichforms part of this report.

25. INTERNAL FINANCIAL CONTROLS:

The Company has in place adequate internal financial controls with reference tofinancial statements. During the year such controls were tested and no reportablematerial weakness in operation was observed.

26. BOARD EVALUATION:

The Board has carried out an evaluation of its own performance the directorsindividually as well as the working of its Committees.

27. USE OF PROCEEDS:

The proceeds from the Issue of the Company stated in the Prospectus/ Offer Document hasbeen fully utilized for the purpose for which they were raised and there is no deviationin the utilization of proceeds.

28. DISCLOSURES PURSUANT TO SECTION 197 (12) OF THE COMPANIES ACT 2013 AND THE RULESMADE THEREUNDER / PARTICULAR OF EMPLOYEES:

The information required under section 197 of the Companies Act 2013 read with Rule5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014are given below:

a. The ratio of remuneration of each director to the median remuneration of theemployees of the company for the financial year:

Name of the Directors Ratio to median remuneration
Executive Directors
Mr. Liam Norman Timms 3.01:1
Mr. Jimmy Kuruvila 9.45:1
Mr. Pradosh Dhanaraj 2.77:1

For this purpose sitting fees paid to the directors has not been considered asRemuneration.

b. The percentage increase in remuneration of each Director Chief Financial OfficerChief Executive Officer Company Secretary or Manager if any in the Financial Year:

Name Designation % Increase/ Decrease
Mr. Liam Norman Timms Whole-time Director 42.86 %
Mr. Jimmy Kuruvila Director & CEO 8 %

c. the percentage increase in the median remuneration of employees in the financialyear: NIL

d. the number of permanent employees on the rolls of company: 28

e. Average percentile increase already made in the salaries of employees other than themanagerial personnel in the last financial year and its comparison with the percentileincrease in the managerial remuneration and justification thereof and point out if thereare any exceptional circumstances for increase in the managerial remuneration: NIL

f. The key parameters for any variable component of remuneration availed by thedirectors: Not Applicable

g. Affirmation that the remuneration is as per the remuneration policy of the company:

The Company affirms remuneration is as per the remuneration policy of the Company.

29. ACKNOWLEDGEMENT:

The Board of Directors gratefully acknowledges the assistance and co-operation receivedfrom the Banks and all statutory and non statutory agencies for their cooperation. TheBoard of Directors also wish to place on record their gratitude and appreciation to themembers for their trust and confidence shown in the Company.

The Board of Directors would like to especially thank all the employees of the Companyfor their dedication and loyalty.

For and on behalf of the Board
Liam Norman Timms
Whole Time Director
(DIN:06453032)
Date: 11.08.2020
Place: Bengaluru