Your Directors take pleasure in presenting the 18th Annual Report ofWonderla Holidays Limited along with audited financial statements for the financial year2019-2020.
1. Overview of financial performance and business operations
The financial and operating highlights for the year under review compared with theprevious Financial Year are given below:
|Particulars ||2019-20 ||2018-19 |
|Income from operations ||27087.14 ||28204.19 |
|Operating Expenses ||16676.51 ||16770.01 |
|Profit from operations before depreciation and finance costs ||10410.63 ||11434.18 |
|Other income ||1200.86 ||961.51 |
|Profit from ordinary activities before finance costs ||11611.49 ||12395.69 |
|Finance cost ||67.55 ||40.63 |
|Depreciation ||4177.02 ||3951.22 |
|Profit from ordinary activities after finance costs ||7366.92 ||8403.84 |
|Exceptional Item ||1891.93 ||- |
|Profit/ (Loss) before tax ||9258.85 ||8403.84 |
|Tax expense ||2780.45 ||2862.43 |
|Net profit after tax ||6478.40 ||5541.41 |
|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 ||6427.96 ||5558.89 |
|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 Company's revenue from operations was '27087 lakhs as against ' 28204 lakhs during the corresponding period of previousfinancial year registering de-growth of 4%. Profit Before Tax grew by 10% to '9259 lakhs as against ' 8404 lakhs for the same period during the previous year.Net Profit After Tax for the fiscal 2019-20 was ' 6478 lakhs as against '5541 lakhs in 201819 17% growth over previous year. During the Financial year totalfootfall across the three amusement parks were 23.81 lakhs as against 25.23 lakhs duringthe previous year. During the year under review there was no change in the nature of thebusiness 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 largesize Organisation category. Wonderla earned this credential based on direct feedback fromemployees in an anonymous survey completed in 2019.
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 inconformity with the Dividend Distribution Policy of the Company.
Considering the loss of revenue due to unprecedented situation of COVID - 19 the Boardexpresses inability to Declare Final Dividend for FY 2019-20.
As per Regulation 43A of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 ("LODR") the top 500listed entities based on market capitalisation are required to formulate DividendDistribution Policy. The Company has formulated its Dividend Distribution Policy and thedetails are available on the Company's website athttp://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 Reserveduring the year under review.
4. Share capital
The Authorised Equity Share Capital of the Company is ' 6000 lakhs. Paid-upShare Capital as on 31st March 2020 was ' 5651.89 lakhs. During the financialyear the Company has issued 10076 equity shares to its employees pursuant to EmployeeStock Option Scheme 2016 and the same were listed on BSE Limited and National StockExchange of India Limited.
No disclosure is required under Section 67(3)(c) of the Companies Act 2013 in respectof voting rights not exercised directly by the employees of the Company as the provisionsof the said Section are not applicable.
During the year under review the Company has not accepted deposits from the publicfalling within the ambit of Section 73 of the Companies Act 2013 and the Rules framedthereunder.
During the year under review the rating agency ICRA has reaffirmed AA- (Stable) ratingfor the Company's long term borrowings and assigned A1+ rating for the short termborrowings.
7. Annual Return
A copy of the Annual Return filed with the Ministry of Corporate Affairs shall beplaced on the website and Extract of Annual Return (MGT-9) as per the requirement ofCompanies Act 2013 is made available on Company's websitewww.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 andsubject to approval of the Members approved appointment of Mr. Arun K Chittilappilly asWhole-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 asan Additional Director (Non-Executive Independent) for a period of five years effectivefrom 1st April 2020 subject to approval of Members at the ensuing Annual General Meetingof the Company.
Mr. George Joseph was appointed as Joint Managing Director of the Company for a periodof two years
effective from 9th July 2018 post approval of Members. The present term of Mr. GeorgeJoseph ends on 8th July 2020. The Board based on the recommendation of the Nominationand Remuneration Committee and subject to approval of the Members approved re-appointmentof Mr. George Joseph as Joint Managing Director and Key Managerial Person (KMP) for afurther term of two years.
ii. Resignations /re-designations
Mr. Jacob Kuruvilla resigned as the Chief Financial Officer (CFO) of the company. TheBoard acknowledges his contribution to the company.
Mr. Kochouseph Chittilappilly has resigned from the Office of Executive Vice-Chairmandue to his other occupation. The Board has re-designated him as NonExecutive Directorw.e.f 1st April 2020 based on the recommendation of Nomination and RemunerationCommittee.
Ms. Priya Sarah Cheeran Joseph has resigned from the Office of Executive Director dueto her personal circumstances. The Board has re-designated her as Non-Executive Directorw.e.f 1st April 2020 based on the recommendation of Nomination and RemunerationCommittee.
Mr. R. Lakshminarayanan an Independent Director of the Company has vast experience inthe domains of Product Development Brand Management Sales & Marketing and generalmanagement functions. The Board with the view to utilise his professional experience to agreater extent based on the recommendation of the Nomination and Remuneration Committeeapproved to re-designate him as Non-Executive NonIndependent Director w.e.f 1st April2020.
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 AccountingStandards have been followed along with proper explanation being provided relating tomaterial departure if any;
ii. The Accounting policies have been selected and applied consistently and thejudgement and estimates made are reasonable and prudent so as to give true and fair viewof the affairs of the Company as on 31st March 2020 and of the Profit of the Company forthe 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 areadequate and operating effectively;
v. Proper and sufficient care is being taken towards the maintenance of accountingrecord 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 allapplicable laws and such system is adequate and operating effectively.
Based on the framework of internal financial controls compliance systems establishedand maintained by the Company work performed by the internal statutory and secretarialauditors the reviews performed by the management and the relevant board committeesincluding the Audit Committee the Board is of the opinion that the Company's internalfinancial 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 currentlyoperational within the Company for ensuring the orderly and efficient conduct of itsbusiness which includes adherence to policies safeguarding its assets prevention anddetection of frauds and errors accuracy and completeness of the accounting records andtimely preparation of reliable financial information. In line with best practices theAudit Committee and the Board reviews these internal control systems to ensure they remaineffective and are achieving their intended purpose. Where weaknesses if any areidentified as a result of the reviews new procedures are put in place to strengthencontrols. These controls are in turn reviewed at regular intervals.
The systems/frameworks include proper delegation of authority operating philosophiespolicies and procedures effective IT systems aligned to business requirements aninternal audit framework a risk management framework and adequate segregation of dutiesto ensure an acceptable level of risk. Documented controls are in place for businessprocesses and IT general controls. Key controls are tested by entities to assure thatthese are operating effectively.
The Company has documented Standard Operating Procedures (SOP) for procurement &stores retail finance and treasury.
The Company's internal audit activity is an important element of the overall process bywhich the Audit Committee and the Board obtains the assurance on the effectiveness ofrelevant internal controls.
The scope of work authority and resources of internal audit are regularly reviewed bythe Audit Committee. Besides its work is supported by the services of audit firm. TheCompany's system of internal audit includes: covering monthly physical verification ofinventory a monthly review of accounts and a quarterly review of critical businessprocesses. To enhance internal controls the internal audit
follows a stringent grading mechanism focussing on the implementation ofrecommendations of internal auditors. The internal auditors make periodic presentations onaudit observations including the status of follow-up to the Audit Committee.
Since the Company has adequate internal control systems which are further strengthenedby periodic reviews as required under the Listing Regulations by the Statutory Auditorsthe Joint Managing Director and CFO recommend to the Board continued strong internalfinancial controls.
Based on the information provided nothing has come to the attention of the Directorsto indicate that any material breakdown in the function of these controls procedures orsystems occurred during the year under review. There have been no significant changes inthe Company's internal financial controls during the year that have materially affectedor are reasonably likely to materially affect its internal financial controls.
Further the Audit Committee periodically evaluates the internal financial controls forensuring that the Company has implemented robust systems/ framework of internal financialcontrols viz. the policies and procedures adopted by the Company for ensuring the orderlyand efficient conduct of its business including adherence to Company's policiessafeguarding of its assets prevention and detection of frauds and errors accuracy andcompleteness of the accounting records and timely preparation of reliable financialinformation.
11. Safety & Hygiene
At Wonderla in order to ensure the safety and security of our guests we conduct aroutine check on every ride which goes up to a list of many checks depending upon theride's complexity. TUV an agency from Germany has also been periodically deployed forthis 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 managementprogramme.
1. There is a comprehensive operations manual providing instructions for the safeoperation maintenance and use of all rides.
2. Adequate number of operating and supervisory staff is maintained at the rides at alltimes. 3. Formal training programmes for technicians ride operators and attendantsencompassing 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 criticalparts 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 checkour rides and ensure compliance with the safety protocol.
7. As a part of improving safety fail safe PLC with safety interlocks & alarmsbeing 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 andperiodically tested in external laboratories.
10. In house water quality assurance laboratory and frequently monitoring the qualityof water in pools & treatment plants ensuring IS standards.
11. Zero discharge water treatment process which includes separate treatment for rawwater pool water restaurant waste water and sewage water. Also using treated waterthrough 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 IntegratedManagement System (IMS) and certify that our systems are in conformity with the ManagementSystem Standards - ISO: 14001:2015 & OHSAS 18001:2007. Their present certification isvalid till 21st July 2020.
14. We have a dedicated audit team who independently check rides and report to the topmanagement for immediate action wherever required. In addition to this ride risk reviewcommittee periodically review the safety aspects.
15. For handling any emergency situation we have a well- trained Emergency ResponseTeam (ERT) in each park.
16. Mock drills are conducted in each park periodically to enhance the effectiveness ofthe ERT.
17. There is a well-equipped paramedic first aid clinic in each park. This clinic isalso provided with Automated External Defibrillator (AED) for handling any sudden cardiacarrest 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 properuse of the facility by guests.
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 onfrequent 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 qualitythroughout the day.
7. Treatment plants consisting of separate treatment system and process for differenttypes of wastewater.
8. Reverse osmosis treated water used across parks wherever needed.
9. Frequent housekeeping & cleaning process is done in the water park to maintainhygiene.
10. Dedicated space for treatment plants and chemical storage are well maintained toensure hygiene.
11. Drinking water point coolers are provided with UV disinfection.
1. Frequent housekeeping & cleaning process is ensured in the restaurants for bothkitchen 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 pestcontrol activities.
10. Separate storage for raw materials vegetables & non vegetarian items as perstandards.
1. Separate waste bins are provided with proper identification for biodegradable itemsat 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 safetylock bars on daily basis.
9. UV sterilisation of 3D goggles at theatre shows and sterilised goggles are providedfor 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 boardnorms.
12. Corporate Governance
The Board of Directors seeks to embed and sustain a culture that will enable theCompany to achieve its objectives through effective corporate governance and enhancetransparent engagement with key stakeholders. In its constant endeavour to benchmark thepolicies and practices and in light of various developments in the realm of corporategovernance and regulatory reforms the Company continues to maintain and implement noblestandards of corporate governance and ethical business practices.
A separate report on Corporate Governance setting out the governance structureprincipal activities of the Board and its Committees and the policies and practices thatenable the Board to fulfil its stewardship responsibilities together with a Certificatefrom the Statutory Auditor of the Company M/s. BSR & Associates LLP CharteredAccountants confirming compliance with the conditions of corporate governance is attachedwith 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. Thedetails regarding the composition and meetings of the Board as well as Committees areprovided 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 IndependentDirectors 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 asenvisaged 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 178of the Companies Act 2013. There has been no change in the policy since the previousyear. The said Policy is annexed to this Report and is available on the Company's websiteat http://www.wonderla.com/ investor-relations/prospectus-and-policies.html
16. Annual Performance Evaluation of Board Committees and Directors andfamiliarisation to Independent Directors
The evaluation of the performances of the Board Committees and Directors wasundertaken in compliance with the provisions of Section 134 (3) (p) read with Schedule IVof the Companies Act 2013.
To provide insight into the Company and familiarise the Independent Directors withCompany's business operations the Board and Management of the Company conductedprogrammes and presentations about the strategies operations market finance humanresource 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) asstatutory auditors of the Company at the 15th Annual General Meeting (AGM) ofthe Company for a term of four years which is valid till 19th AGM to be heldin 2021 subject to ratification of their appointment by the Members at every AGM.However the requirement for the annual ratification of auditor's appointment at theAnnual General Meeting has been omitted pursuant to Companies (Amendment) Act 2017notified on 7 May 2018. The Statutory Auditors have confirmed that they satisfy theindependence criteria as required under the Act.
The Report given by BSR & Associates LLP Chartered Accountants on the financialstatements of the Company for the year 2020 is a part of the Annual Report. There has beenno qualification reservation or adverse remark or disclaimer in their Report. During theyear under review the Auditors have not reported any matter under Section 143 (12) of theAct therefore no detail is required to be disclosed under Section 134 (3)(ca) of theAct.
18. Secretarial Auditor
Pursuant to the provisions of Section 204 of the Companies Act 2013 and Rulesthereunder Mr.Somy Jacob of Somy Jacob & Associates Company Secretaries isappointed as the Secretarial Auditor of the Company for the FY 2019-20. The SecretarialAudit Report and Secretarial Compliance Report submitted by him are annexed to this Reportas Annexure - II.
19. Board Diversity Policy
Your Company believes that a diverse and inclusive Board is essential for achievinglong-term growth and development of the Company. This ensures timely anticipation of risksand opportunities. The Company has a diverse Board consisting of Directors possessingvariety of skills expertise qualifications and experience. The details of the keyqualifications skills and attributes are forming part the Corporate Governance Report.Your Company has a Board Diversity Policy which is available on the Company's website athttp://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 inaccordance with the Policy of the Company for Related Party Transactions. The Company hasformulated a policy on Materiality of Related Party Transactions and the procedure to dealwith related party transactions. The detailed policy is accessible on the website of theCompany (www.wonderla. com/investor-relations/prospectus-and-policies).
Since there were no material related party transactions entered by the Company duringthe Financial Year 2019-20 as per Related Party Transactions Policy no detail is requiredto be provided in Form AOC-2 prescribed under Clause (h) of Sub-section (3) of Section 134of 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 andemployees to bring to the notice of the Company of any unethical conduct misuse ofunpublished price sensitive information actual or suspected fraud or violation ofWonderla's Code of Conduct.
The mechanism provides for adequate safeguards against victimisation of Directors andemployees and also provides for direct access to the Chairman of the Audit Committee. Thedetailed 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 inline with the requirements of the Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013 and Rules framed thereunder and Internal ComplaintsCommittee has also been set up to redress complaints received regarding sexual harassment.During the year the Company has not received any complaints pertaining to sexualharassment 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 CompaniesAct 2013. Your Company has been a pioneer towards fulfilling its CSR obligations and hastaken initiatives under CSR Programme. Your Company has a CSR Policy and the same has beenplaced on Company's website www.wonderla.com. The Annual Report on CSR Activities isprovided 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 annexedhereto 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 listedentities by amending Regulation 34(2) (f) of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015.
Your company being one of such 1000 listed entities has included BusinessResponsibility Report as a part of Annual Report describing measures taken by them alongthe key principles elucidated in the 'National Voluntary Guidelines' on SocialEnvironmental and Economic Responsibilities of Business' framed by the Ministry ofCorporate 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 theCompany pursuant to Section 186 of the Companies Act 2013 for the year ended 31st March2020 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 exchangeearnings & 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 theInstitute of Company Secretaries of India (ICSI) and approved by the Central Governmentunder Section 118 (10) of the Act.
29. Particulars of employees
Your Directors particularly acknowledge the untiring effort whole-hearted support andco-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) ofthe Companies Act 2013 read with Rule 5(1) of the Companies (Appointment and Remunerationof Managerial Personnel) Rules 2014 is enclosed as Annexure - VII.
Details of employee remuneration as required under provisions of Section 197(12) of theCompanies Act 2013 read with Rule 5(2) & 5(3) of Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 are available at the Registered Officeof the Company during working hours 21 days before the Annual General Meeting and shallbe made available to any Shareholder on request. Such details are also available on yourCompany's 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 EmployeeBenefits) Regulations 2014. The Company has received a certificate from the StatutoryAuditor 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 theMembers of the Company. The certificate would be placed at the ensuing AGM for inspectionby Members of the Company.
Relevant disclosures pursuant to Rule 12 (9) of the Companies (Share Capital andDebentures) Rules 2014 and Regulation 14 of Securities and Exchange Board of India (ShareBased Employee Benefits) Regulations 2014 have been made and the same is attached to thisreport 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) andNational Stock Exchange of India Limited (NSE). The market capitalisation as on 31st March2020 was ' 789.00 Crores as against ' 1752.34 Crores as on 31st March 2019.
32. Investor Relations
Your Company has an active Investor Relations (IR) Programme and continuously strivesfor excellence in its IR engagement with international and domestic investors throughvarious mediums such as quarterly earnings calls Investor & Analyst Days sitevisits one-on-one and group meetings participation in investor conferences and non-dealRoadshows.
The senior management consisting of Joint Managing Director and CFO involve themselvesregularly in investor and analyst interactions who make detailed and transparentdisclosures on the Company's operational and financial performance. The investor and theanalyst community have appreciated your Company's IR team and the practices.
33. Chennai project update
The Company with the objective of setting up its fourth amusement park in Chennai hasinvested about 109 Crores till March 31 2020 towards land & land development cost andrides. In view of the levy of Local Body Entertainment Tax (LBT) of 10% by the Governmentof Tamil Nadu under Tamil Nadu Local Authorities Entertainment Tax Act 2017 over andabove 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 amusementparks from levy of LBT considering majority of its visitors being School and Collegestudents and the huge capex required for construction of amusement parks.
The Government of Tamil Nadu having considered Company's representation hasspecifically exempted the Company since the Company's project was approved at GlobalInvestor Meet (GIM) from levy of LBT for a period of five years commencing from 1stNovember 2019.
Considering the time involved for completion of the Project the Company has again madea representation to the Government of Tamil Nadu for extension of the exemption granted.Having reflected on the Company's plea the Government of Tamil Nadu vide its Order dated12th February 2020 has amended the earlier exemption given to the Company on levy ofEntertainment Tax.
As per the amended Order the Company was exempted from levy of Entertainment Tax for aperiod of five years from the commencement of Company's commercial operations or 30thSeptember 2021 whichever is earlier.
The Company has obtained NOCs from the Fire Department Pollution Control Board and theForest Department etc. and awaiting the final clearance from the Department of Town andCountry Planning (DTCP).
In current scenario it is extremely tough to complete the construction before 30thSeptember 2021. The Company intends to appeal to the Government of Tamil Nadu for dulyextending the exemption period to cover the COVID related delay.
Once the final clearance is received the Company will critically analyse the situationand 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 inOdisha. The Government has offered land on long term lease basis and other incentives. TheCompany has expressed its willingness to the Government of Odisha to develop an assetlight model amusement park.
The State Level Single Window Clearance Authority of the Government of Odisha in itsmeeting held on 27th December 2019 has considered the Company's proposal for setting up anamusement park in the District of Khurda with an investment of Rs 107.10 crores andgranted 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 Indiahas left serious repercussions on the businesses. The long-term impacts of theunprecedented COVID-19 pandemic are just beginning to come into focus for amusement parksas they prepare to face the future.
The amusement parks and resort being shut from mid of March 2020 your Company isextremely affected with lack of revenue. The Company has recorded Revenue of Rs. 10269Lakhs from its operations during April and May 2019. During the corresponding period of2020 the Company has not recorded any revenue from its operations. In view of this theCompany has taken stringent cost reduction measures due to which the Company could reducethe expenses.
36. Significant/Material Orders Passed by the Regulators
There are no significant and material orders passed by the Regulators or courts ortribunals that would affect the going concern status or operations of the company.
Your Board of Directors take this opportunity to thank all the employees memberscustomers suppliers bankers and regulatory authorities for their constant support andcooperation towards the Company.
| ||For and on behalf of the Board of |
| ||Wonderla Holidays Limited |
|Place: Bangalore ||M. Ramachandran |
|Date: 26th May 2020 ||Chairman |