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TajGVK Hotels & Resorts Ltd.

BSE: 532390 Sector: Services
NSE: TAJGVK ISIN Code: INE586B01026
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OPEN 167.10
PREVIOUS CLOSE 168.05
VOLUME 564
52-Week high 243.75
52-Week low 114.00
P/E 34.24
Mkt Cap.(Rs cr) 1,022
Buy Price 160.00
Buy Qty 2.00
Sell Price 167.10
Sell Qty 1.00
OPEN 167.10
CLOSE 168.05
VOLUME 564
52-Week high 243.75
52-Week low 114.00
P/E 34.24
Mkt Cap.(Rs cr) 1,022
Buy Price 160.00
Buy Qty 2.00
Sell Price 167.10
Sell Qty 1.00

TajGVK Hotels & Resorts Ltd. (TAJGVK) - Director Report

Company director report

Dear Shareholders

Your Directors have pleasure in presenting the Twenty Third Annual Report of theCompany together with the Consolidated and Standalone Audited Accounts for the year ended31st March 2018.

FINANCIAL RESULTS

The Standalone performance of the Company for the financial year ended 31st March 2018is as below:

(Rs. In Crores)

Particulars 2017-18 2016-17
Total Revenue 290.88 269.77
Operating expenses 216.44 204.10
Depreciation 17.27 18.13
Finance cost 24.97 29.07
Profit before tax 32.20 18.47
Tax expense:
Current tax 7.40 -
Deferred tax 3.61 7.41
Short provision of tax of earlier years 0.84
Profit After Tax 21.19 10.22
Profit brought forward from previous year 212.93 205.72
Profit available for appropriation 234.12 215.94
Less: Dividend paid 2.51 2.51
Less: Dividend tax Profit carried forward to 0.43 0.51
Balance Sheet 231.18 212.92
Earnings per share (Rs.) 3.38 1.63

COMPANY'S PERFORMANCE

The total Income for the year ended 31st March 2018 increased by Rs.21.11 Crores or7.80% to Rs.290.88 Crores. The Company could achieve higher Room and F&B Income forthe year under review due to buyoancy in the markets where the Company Hotels arelocated mainly aided by higher occupancy and improved Banqetting business.

The occupancy increased from 57% to 63% and REVPAR also increased from Rs.2973 toRs.3281.

DEPRECIATION AND FINANCE COSTS

Depreciation for the year was lower at Rs.17.27 crores as compared to Rs.18.13 croresfor the previous year.

Finance costs for the year ended 31st March 2018 was Rs.24.97 crores which is lowerby Rs.4.10 crores than previous year on account of repayment of term loans as also areduction in interest costs of the loan portfolio.

TRANSFER OF AMOUNT TO RESERVES

The company does not propose to transfer any amount to reserves.

DIVIDEND

During the financial year 2017-18 the Board of Directors are pleased to declare adividend of Rs.0.60 (Rupees Sixty Paisa) per equity share of Rs.2/- each (i.e. 30%). Thetotal dividend distribution for the financial year amounts to Rs.376.21 lakhs plusDividend Distribution Tax of Rs.65.10 lakhs. The total dividend payout shall be 20% ofProfit After Tax (PAT) for the year.

The Dividend subject to approval of the Members at the Annual General Meeting on 3rdAugust 2018 will be paid on or after 8th August 2018 to the Members whose names appearin the Register of Members as on the date of Book closure i.e. 28th July 2018 to3rdAugust 2018 (both days inclusive).

FINANCIAL RESULTS OF JOINT VENTURE (JV) COMPANY

The performance of Green Woods Palaces and Resorts Private Limited the JV Company forthe financial year ended 31st March 2018 is as below :

(Rs. In Crores)

Particulars 2017-18 2016-17
Total Revenue 122.73 99.16
Operating expenses 74.30 64.37
Depreciation 25.66 25.59
Finance cost 25.92 27.25
Profit / (loss) before tax (3.15) (18.05)
Tax expense:
Current tax - -
Deferred tax (1.89) (5.45)
Short provision of tax
of earlier years - (0.06)
Profit / (loss) after tax (1.26) (12.54)
Earnings per share (Rs.) (0.17) (1.67)

CONSOLIDATED FINANCIAL PERFORMANCE

As required under the Listing Agreement entered into with the Stock Exchanges aconsolidated financial statement of the Company which includes Green Woods Palaces andResorts Private Limited (the JV Company) is attached. The consolidated financialstatements have been prepared in accordance with the relevant accounting standards asprescribed under section 133 of the Companies Act 2013 read with Rule 7 of the Companies(Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rule 2015 (asamended). The Company consolidated the proportional Loss after tax in accordance withAccounting Standards of Ind AS 110 read with Ind AS 28.

BORROWINGS / INDEBTNESS

The total long term borrowings of the company stood at Rs.228.62 crores for the yearended 31st March 2018 as compared to Rs.256.37 crores as at 31st March 2017 (excludingInd AS adjustments). The company repaid Rs.27.73 crores of principal during the FY2017-18.

EXPANSIONS : BENGALURU HOTEL PROJECT

The Company has been allotted around 7.5 acres land in Yellahanka Bengaluru for thehotel project. The construction of 2 bridge(s) across the land abutting Company land toconnect to the National Highway is completed. During the year under review the Companyhas completed the construction of compound wall to secure the site and also completed therejuvenation of lake in front of the site as per the terms of MOU signed with BengaluruDevelopment Authority (BDA). The hotel construction will commence upon receipt ofstatutory approval / clearance shortly.

HOTEL RENOVATION / REFURBISHMENTS : TAJ KRISHNA

The Company has taken up the phased refurbishments works of Guest Rooms mock-updesigns are finalized approved and construction of mock up rooms have been completedduring the year under review. The Company has taken up Refurbishments / Renovation of 150Guest Rooms in the FY 2018-19 and expect to complete the entire Guest Rooms renovation inthe next 2 years.

Refurbishments is also planned for the Lobby Area and F&B outlets during the FY2018-19.

TAJ DECCAN

The Company has taken up the phased refurbishments of Guest Rooms in TAJ Deccan and themock-up design of TAJ Deccan are approved and Company is taking up renovation of 50 GuestRooms during FY 2018-19.

MEETINGS OF THE BOARD OF DIRECTORS

Four meetings of the Board of Directors were held during the year. Dates of themeetings are given in the Report on Corporate Governance.

DIRECTORS

Re-appointments

In accordance with the provisions of Companies Act 2013 read with the Articles ofAssociation of the Company Mr. G V Sanjay Reddy and Mr. Rajendra Misra PromoterDirectors retires by rotation and being eligible offered themselves for re-appointment.

Resignation

During the year Mr. Rakesh Sarna Non-Executive Non-Independent Director has tenderedhis resignation and expressed his desire to resign as Director of the Company with effectfrom the close of business hours of 30th September 201 7 consequent to his resignationas Managing Director & CEO of Indian Hotels Company Limited (IHCL). The Board ofDirectors took on record Mr. Rakesh Sarna's valuable contributions / guidance during histenure as Director of the Company.

Appointments

The Board at its meeting held on 01.08.2017 appointed Mr. Giridhar Sanjeevi as theAdditional Director and Board at its another meeting held on 02.02.2018 appointed Mr.Puneet Chhatwal as the Additional Director and these Directors shall hold office upto thedate of ensuing AGM. Your Company is inreceipt of notice under section 160 of the Actfrom Indian Hotels Company Limited (IHCL) a Promoter Shareholder proposing theircandidature for appointment as Director(s) liable to retire by rotation under thecategory of Non-Executive Non-Independent Director of the Company.

PERFORMANCE EVALUATION CRITERIA FOR DIRECTORS

The Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 (Listing Regulations) mandates evaluation of performance of IndependentDirectors Non Independent Directors and

Chairperson. The Companies Act 2013 states that a formal annual evaluation needs to bemade by the Board of its own performance and that of its Committees and individualDirectors. The Schedule IV of the Companies Act 2013 states that the performanceevaluation of Independent Directors shall be done by the entire Board of Directorsexcluding the director being evaluated.

The performance of the Board was evaluated by the Board after seeking inputs from allthe Directors on the basis of the criteria such as the Board composition and structureeffectiveness of Board processes information and functioning etc.

The performance of the Committees was evaluated by the Board after seeking inputs fromthe Committee Members on the basis of the criteria such as the composition of committeeseffectiveness of committee meetings etc.

The Chairman of the Board and the Nomination and Remuneration Committee reviewed theperformance of the individual directors on the basis of the criteria approved by theBoard. The Committee and the Board expressed satisfaction on the performance of eachDirector.

INDEPENDENT DIRECTORS DECLARATION

The Company has received declarations from all Independent Directors that they meet thecriteria of independence as laid down under Section 149(6) of the Companies Act 2013 (theAct) and the Listing Regulations.

MEETING OF INDEPENDENT DIRECTORS

A separate meeting of Independent Directors as required under the Schedule IV of theCompanies Act 2013 was held on 26th March 2018 without presence of Executive Directorsand Promoter Directors. Such meeting was conducted to review and evaluate (a) theperformance of Non-Independent Directors and the Board as a whole

(b) the performance of the Chairperson of the company taking into account the views ofExecutive Directors and Non-Executive Directors and (c) assess the quality quantity andtimeliness of flow of information between the company management and the Board that isnecessary for the Board to effectively and reasonably perform their duties. TheIndependent Directors expressed their satisfaction with the performance of NonIndependentDirectors and the Board as a whole and the Chairman of the Independent Directors meetingbriefed the outcome of the meeting to the Chairman of the Board.

SECRETARIAL AUDIT

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 your Directors had appointed M/s.Narender & Associates Practicing Company Secretaries (Certificate of PracticeNo.5024) Hyderabad to undertake the Secretarial Audit of your Company for the financialyear 2017-18.

The Secretarial Audit Report does not contain any qualifications reservation oradverse remarks. The Report in Form MR-3 is enclosed as Annexure-1.

AUDIT COMMITTEE

Details pertaining to composition of the Audit Committee are included in the Report onCorporate Governance. All the recommendations made by the Audit Committee were accepted bythe Board.

There is no such incidence where Board has not accepted the recommendation of the AuditCommittee during the year under review.

STATUTORY AUDITORS

M/s. M. Bhaskara Rao & Co. Chartered Accountants (Firm Registration No.000459S)were appointed as Statutory Auditors of your Company to hold office from the conclusion ofthe 22nd AGM held in the year 2017 until the conclusion of the 27th AGM to be held in theyear 2022. The requirement to place the matter relating to appointment of Auditors forratification by members at every Annual General Meeting is done away with videNotification dated May 7 2018 issued by the Ministry of Corporate Affairs New Delhi.Accordingly no resolution is proposed for ratification of appointment of Auditors whowere appointed in the Annual General Meeting held on 1st August 2017.

Auditors Report

There are no qualifications reservations or adverse remarks made by M/s. M. BhaskaraRao & Co. Chartered Accountants (Firm Registration No.000459S) Statutory Auditors intheir Consolidated and Standalone Audit report for the Financial Year ended 31st March2018.

INTERNAL AUDITORS

The Board of Directors of the Company have appointed M/s. Price Waterhouse & Co.as Internal Auditors to perform Internal Audit of the operations of the Company for theFinancial Year 2017-18 and the Internal Auditors have presented the observations to theAudit Committee at the meeting held on 17.05.2018.

PUBLIC DEPOSITS

During the year under review your company has neither invited nor accepted anydeposits from the public.

INSURANCE

All properties and insurable interests of the Company including building plant andmachinery and stocks have been fully insured.

CHANGE IN THE NATURE OF BUSINESS

There is no change in the nature of business of the Company.

THE DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS ORTRIBUNALS IMPACTING THE GOING CONCERN STATUS

There were no instances of non-compliance by the company and no significant andmaterial orders passed by the regulators or courts or tribunals impacting the goingconcern status and Company's operations in future.

LIQUOR BAN ON NATIONAL HIGHWAY / STATE HIGHWAY

Your Company's Hotels at Chandigarh and Chennai were effected due to Non renewal ofLiquor license with effect from 1st April 2017 consequent to the orders passed by Hon'bleSupreme Court dated 31st March 2017 in Civil Appeal No's 12164-12166 of 2016 Hon'bleSupreme Court directed all State Governments and Union Territories not to renew liquorlicense vends which are within 500 meters of National Highway / State Highway. The hotelsgot permission to open liquor outlets from 1st August 2017 and the Company's hotelsoperations were impacted for 4 months.

MATERIAL CHANGES AND COMMITMENTS

There are no material changes and commitments in the business operations of the companyfor the financial year ended 31st March 2018 to the date of signing of the Director'sReport.

INFORMATION TO BE FURNISHED UNDER RULE 5(1) OF COMPANEIS (APPOINTMENT AND REMUNERATIONOF MANAGERIAL PERSONNEL) RULES 2014

Disclosure of information under Rule 5(1) of Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 in the Director's Report is annexed to this Report.

STATEMENT UNDER RULE 5(2) of COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIALPERSONNEL) RULES 2014

There are no employees drawing remuneration of more than Rs.102 lakhs or drawingremuneration of Rs.8.50 lakhs per month if employed part of the year as required underRule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014.

REPORT ON THE INTERNAL FINANCIAL CONTROLS

During the year under review the company appointed M/s. K S Rao & Co. CharteredAccountants Hyderabad as consultants to prepare the Risk Matrix and Control Matrix forthe company and they had submitted the Report.

Internal Financial Controls are an integrated part of the risk management processaddressing financial and financial reporting risks. The internal financial controls havebeen documented digitised and embedded in the business processes. Assurance on theeffectiveness of internal financial controls is obtained through management reviewscontrol self-assessment continuous monitoring by functional experts as well as testing ofthe internal financial control systems by the internal auditors during the course of theiraudits. We believe that these systems provide reasonable assurance that our internalfinancial controls are designed effectively and are operating as intended.

The statutory auditors of the company have tested the financial controls and they havenot found any adverse/ non-compliance of the control mechanisms.

DIRECTORS' RESPONSIBILITY STATEMENT

The financial statements are prepared in accordance with Indian Accounting Standards(Ind AS) the provisions of the Act (to the extent notififed) and guidelines issued bySEBI. Pursuant to the requirement under Section 134 of the Companies Act 2013 withrespect to the Directors' Responsibility Statement the Board of Directors of the Companyhereby confirms:

a. In the preparation of the annual accounts the applicable accounting standards (IndAS) had been followed and that no material departures have been made from the same.

b. They have selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company at the end of the financial year i.e. 31st March2018 and of the profit of the Company for that period.

c. They have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities.

d. That the Directors have prepared the Annual Accounts for the Financial Year ended31st March 2018 on a going concern basis.

e. They have laid down internal financial controls for the company and such internalfinancial controls are adequate and were operating efficiently and

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

NOMINATION AND REMUNERATION COMMITTEE

Details pertaining to composition of the Nomination and

Remuneration Committee are included in the Report on

Corporate Governance.

Brief description of terms of reference:

• Identifying persons who are qualified to become directors and

• Identifying persons who may be appointed as Key Managerial Personnel seniormanagement in accordance with the criteria laid down and recommend to the Board for theirappointment and removal;

• Carry on the evaluation of every director's performance;

• Formulation of the criteria for determining qualifications positive attributesand independence of a director;

• Recommend to the Board a policy relating to the remuneration of the directorskey managerial personnel and other employees;

• Formulation of criteria for evaluation of Independent Directors and the Board;

• Devising a policy on Board diversity; and

• Any other matter as the Board may decide from time to time.

• The Brief Policy for Selection of Directors and determining Directors'independence is available on the Company's website.

NOMINATION AND REMUNERATION POLICY

The objectives of the Policy

1) To lay down criteria and terms and conditions with regard to identifying persons whoare qualified to become Directors (Executive and Non-Executive) and persons who may beappointed in Senior Management and Key Managerial positions and to determine theirremuneration.

2) To determine remuneration based on the Company's size and financial position andtrends and practices on remuneration prevailing in peer companies.

3) To carry out evaluation of the performance of Directors.

4) To provide them reward linked directly to their effort performance dedication andachievement relating to the Company's operations.

5) To retain motivate and promote talent and to ensure long term sustainability oftalented managerial persons and create competitive advantage.

The brief policy of Nomination and Remuneration is available on the Company's websiteat www.tajgvk.in / investor relations / corporate policies.

CORPORATE GOVERNANCE

Your Company is committed to maintain the highest standards of Corporate Governance. Asrequired under Regulations 34 of the Listing Regulations the report on ManagementDiscussion and Analysis Corporate Governance as well as the Auditors' certificate on thecompliance of Corporate Governance are annexed and form part of the Annual Report.

RISK MANAGEMENT COMMITTEE

Pursuant to Regulations 21 of the Listing Regulations read with the Listing Agreemententered with the Stock Exchanges the Company has constituted a Risk Management Committee.The details of the Committee and its terms of reference are set out in the CorporateGovernance Report.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. The scope and authority of the Internal Auditor is welldefined in the company. To maintain its objectivity and independence the Internal Auditorreports to the Chairman of the Audit Committee of the Board.

The Internal Auditor monitors and evaluates the efficacy and adequacy of internalcontrol systems in the Company its compliance with operating systems accountingprocedures and policies at all locations of the Company. Based on the report of InternalAuditor process owners undertake corrective action in their respective areas and therebystrengthen the controls. Significant audit observations and corrective actions suggestedare presented to the Audit Committee of the Board.

SUBSIDIARY / ASSOCIATE COMPANIES

As per the provisions of Section 129 of the Companies Act 2013 read with Rule 5 ofCompanies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules2015 (as amended) a separate statement containing the salient features of the financialstatements of the Joint Venture in Form AOC-1 is enclosed as Annexure-2 to this Report.

EXTRACTS OF ANNUAL RETURN

As required by Section 92(3) of the Act read with Rule 12(1) of the Companies(Management and Administration) Rules 2014 extract of the Annual Return in Form MGT-9 isavailable on the Company's website at www.tajgvk.in / investor relations.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Board of Directors has constituted a Corporate Social Responsibility (CSR)Committee to monitor implementation of CSR activities of your Company. The details of thecomposition of the CSR Committee CSR policy CSR initiatives and activities during theyear are given in the Annual Report on CSR activities in Annexure-3 to this Report.

PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIESACT 2013

The company has not given any Loans / Guarantees and not made any Investments duringthe FY 2017-18 as required under the provisions of section 186 of the Companies Act 2013read with Companies (Meetings of Board and its Powers) Rules 2014 the disclosure in theprescribed format is annexed as Annexure-4.

ESTABLISHMENT OF VIGIL MECHANISM

The Company has established a mechanism for Directors and Employees to report concernsabout unethical behavior actual or suspected fraud or violation of our Code of Conductand Ethics. It also provides for adequate safeguards against the victimization ofemployees who avail of the mechanism and allows direct access to the Chairperson of theAudit Committee in exceptional cases. The policy is available on our website atwww.tajgvk.in/investor relations/ corporate policies.

MANAGEMENT DISCUSSION AND ANALYSIS

Management discussion and analysis of the financial condition and results of operationsof the Company for the period under review as required under regulation 34(2) of theListing Regulations a Management Discussion and Analysis Report is set out part of thisReport.

ECONOMY AND MARKETS

Economy and markets for the year under review is given in the Management Discussion andAnalysis Report.

RELATED PARTY TRANSACTIONS

In line with the requirements of the Companies Act 2013 and Listing Regulations yourCompany has formulated a Policy on Related Party Transactions which is also available onCompany's website at www.tajgvk.in under corporate policies. The Policy intends to ensurethat proper reporting approval and disclosure processes are in place for all transactionsbetween the Company and Related Parties

All Related Party Transactions are placed before the Audit Committee for review andapproval. Prior omnibus approval is obtained for Related Party Transactions which are ofrepetitive nature and / or entered in the Ordinary Course of Business and are at Arm'sLength and on quarterly basis the transactions done during the quarter are placed beforethe audit committee for approval / ratification.

All Related Party Transactions are subjected to approval by Audit committee toestablish compliance with the requirements of Related Party Transactions under theCompanies Act 2013 and Listing Regulations.

All Related Party Transactions entered during the year were in Ordinary Course of theBusiness and on Arm's Length basis. No Material Related Party Transactions i.e.transactions exceeding ten percent of the annual consolidated turnover as per the lastaudited financial statements were entered during the year by your Company. Accordinglythe disclosure of Related Party Transactions as required under Section 134(3)(h) of theCompanies Act 2013 in Form AOC-2 is not applicable.

OTHER INFORMATION

The Audit Committee of the Company reviewed the Consolidated and Standalone Financialstatements for the year under review at its meeting held on May 17 2018 and recommendedthe same for the approval of the Board of Directors.

HUMAN RESOURCES

Your Company operating in a competitive and dynamic environment places great importancein the overall training and development of its employees who make the decisive differencein the hotel industry.

Your Company understands the importance of having the right people with right skillsto deliver the strong and exceptional service and also requisite expertise which is thebasis of our relationships with the guests. To deliver that service and expertise we arecontinuously improving our talent pool and are committeed to training and educating thefuture generation.

Learning and Developments :

The employes are encouraged to develop and manage their careers and this is facilitatedby providing relevant Job training and where appropriate the Company encourages to fillvacancies with existing staff when the employees are suitably qualified and experienced.

The Company is committed to imporve empoloyee engagement and learning more about theneeds of our employees. In addition to our training and development programme the Companyalso communicate frequently with the employees and value hightly the committment of theemployees and recognise the important role the communication has in fastering the goodworking relationships.

The Company also ensure that employees are informed on matters relating to theiremployment and on financial and economic factors affecting the company's business. At thissame time we also seek feedback and Ideas from employees to improve our operations.

The total strength of employees of your Company for the year under review was about1742 permanent employees which includes Unit staff and Deputed staff and 1220 employees onFTC and outsourced. QUALITY

Your Company's Hotel properties at Hyderabad Chandigarh & Chennai are certified byFood Safety and Standards Authority of India (FSSAI) for the desired norms in F&Boperations and also TAJ Krishna Hyderabad certified and assessed as meeting GoldCertification requirements of the Earth Check Standards during the year under review.

LISTING

The Equity Shares of your Company are listed on Bombay Stock Exchange Limited andNational Stock Exchange of India Limited. It may be noted that there are no paymentsoutstanding to the Stock Exchanges by way of Listing Fees. The company has paid thelisting fee for the financial year 2018-19.

PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE

The Company has in place a Prevention of Sexual Harassment Policy in line with therequirements of the Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013. An Internal Committee has been set up to redress complaints receivedregarding sexual harassment. The Company has designated the external independent member asa Chairperson of the Committee.

The following is a summary of sexual harassment complaints received and disposed offduring the year 2017-18

Number of complaints received : 2

Number of complaints disposed off : 2

DISCLOSURE OF INFORMATION AS REQUIRED UNDER SECTION 134(3)(m) OF THE COMPANIES ACT2013 (ACT) READ WITH THE COMPANIES (ACCOUNTS) RULES 2014

(I) CONSERVATION OF ENERGY

The Company continued to focus on energy conservation measures during the year.Measures include replacement of incandescent lights with low power consumption LED lightscompact fluorescent and IR lights installation of solar films to reduce heat loadsreplacement of old chiller with energy efficient Screw chiller replacement of old boilerswith high efficiency boilers and installation of high efficiency secondary treatmentplants with improved recycling. Besides these operational measures were continued toreduce energy consumption by regulating chiller set points according to ambienttemperatures minimizing steam consumption by optimizing steam utilization in kitchens andlaundries.

Some of the actions planned for next year include replacement of energy intensive pumpswith high efficiency pumping systems replacement of energy intensive fans with energyefficient fans and the increased use of Secondary Treatment Plant water for coolingtowers. Operational measures include close monitoring and control of energy consumptionand frequent energy audits by the hotel Engineering Department.

Your Company remains focused on giving importance towards conservation of energy whichresults in savings in consumption of electricity a significant component of the energycost in an ongoing process.

(II) TECHNOLOGY ABSORPTION

The Company continues to absorb and upgrade modern technologies and advanced hotelmanagement techniques in various guest contact areas which includes wireless internetconnectivity in all the hotels.

(III) FOREIGN EXCHANGE EARNINGS AND OUTGO

As required under Section 134(3)(m) of the Companies Act 2013 read with Rule 2 of theCompanies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 theinformation relating to foreign exchange earnings and outgo is hereunder.

(Rs. In lakhs)
Particulars March 31 2018 March 31 2017
Earned 4522.00 4319.13
Used 346.34 408.48

ACKNOWLEDGEMENTS

Your Directors would like to express their grateful appreciation for the assistance andco-operation received from customers bankers suppliers shareholders Central and StateGovernments and other statutory authorities and others associated with the Company. YourDirectors also wish to place on record their deep sense of appreciation for the excel lentcontribution made by employees at all levels during the year under review.

By Order of the Board of Directors
For TAJGVK Hotels & Resorts Limited
Dr GVK Reddy
Place : Hyderabad Chairman
Date : 17.05.2018 DIN:00005212