B HOTEL LEELAVENTURE LIMITED Registered Office: The Leela, Sahar, Mumbai - 400 059 "AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2016 |2rnsanes come en cpertons waa] man] agen] cio) rss] coon] us fs ncn rm Opens nt aan] wei] aan] won| Gas] cao] 2 esponse JaiCo mnie consumed rs] vais tars] ge] som] gue] ss [2 Empzyeterereerse sie] Gar] sss kam] agro] gaan] agro fete poverant ti] tae] tao ‘sin | See] sm] ‘Seo |) 2peocn oe satan im] Sam] ass] ans) zen] aut | fever expnture sual San| seal moo] iow | mae] ou aft i tom oti tes tl eto ee ee + ft Seo Kaan cots and exception tm ee ee | « fnser cot) zoe] ran] essen} so] wi] ao] too erst on ate inane con at br pon em cao] caso) san) asses] czas] asa) oxse + frp na ler ete) cass] assm| —ogzse] ao] eam] ass] aan Jeri ton rom onary ite alas cour] sen] as] assue] eats] asses] wl fs creda ever 6a sas] as] ss] os] sas 1p ert or te pesos Fe ee 14 [ad pegs shr oi a ao a pests) van] ean) osm] van] san! osm] sam 11 pens tntating vation ve) sma] sam xs 1 tee eden ee ca] “oam| ero] “720 1 [spa esonpson rere ee ee) " @im| cam) casi) (aa05) sha in a) ba nd a ws} sas] ave] “Gaal “tw aan)“ 00] 28 [nce ne ovens tre) rr er 11 fst recover ato ous] oun] axs] as(etree vs} gan] on] oan here ape ner sis| sto nue sa Lng bronng alert) cays! we] esse] ona cue tas) ‘ae a {Sober ongtermbstes iss] ape] aos] (tong pone ol Saas tea] Trae yates as] 490] swe) as [ier amet sin] im] ssn] a 2) Sean prove aot st] gee] Torat-tQUity aNb Lames] wie] — sigs] ze] at toad mcs vase] sons] asism| — sw70 Nance nae Se| san | fe erign corey envoy tao ave | sta] ass nan (Shang oan hanes wise] idee] o.o nocr mete -_ oo] "Soo] |S svete sae] sae] x0] sz fo raereaane ss] Si] Sa) Ss [Ghat vets fea] a) Se] Sera dene Sm] a] Se) a "fe utero arc 6 we id by AC en prey of i ate on 2 Tig rhe at ur sg teh i! ee pe tel anes yarn yur a oe he geo {3 ite Conan des athe pale aegentcthe a Holey een pong ie ot pale «Scr ote pt pe pret haba 1 nb Pr cong tn of ath Ran 5 Temi Ot le of ha 5% fe OR te tee ec ot rn Cogn itd nil ‘spn oot ote COR ato Pn ARC Private Lined on 3h foe DH To Company psn ih ha ARC 4 abe meet Fog ince {Seon depen tems oa pedigree fh me ha ati he Necro Ly nh SS nt ved fr SS he Ahn te Company hs nl pa re pb mn nee pr sind a oe el {i tues ona pod yrs i See nae priest in eln conse pevaed on mence ee ae ee sine er woulshanc eer by Be Pub ah sn e720 ai apes 4 Te ied acorn he apy tng 7 3 Mah 2016 ara byway mcr oon prope - sip [rest [ Paws | ta 1 Non Cree DS TG TIC fora —fomkris- [onsets [pene i WGP Ts oy pal le Be ATER TTS 7 fae ct cmpataten fret Seve Cones art rena Depron an Tiare fra Coa Rae ribet nest, ‘erect od Tn Pipl penton lee "Do eat Ry 1 Rauch nn pong or eng harvey.& HOTEL LEELAVENTURE LIMITED Registered Office: The Leela, Sahar, Mumbai - 400 059 “es 02266911294 0 Fa 0226691 1458 Ena: investor sericea com £ Website: www thelela com 0 CIN No: LSS1O1MHI9S1PUCW2I087 [EXTRACT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND TWELVE MONTHS ENDED 31ST MARCH 2016 Rein tabhe Standalone Consolidated inten eiertnded | Qutertnded| Youraded | Yeurtnded | eurtaded | Yartnded Tata income rom Operations (re) was] 18s] com] ses) esi] eas [Net Profit /0os) rom ordinary activities after ox casen| ass6| sore] cisen| osore) essa [Net Profit / os) forthe period after tax (ater extraorinary items) easen| 426] sore] ase] asx] arse uity share capital ssn| aa] sam[ osm] san] 9a Rees xn reahatn teres nshown nbn het of pv esata] ess0o) caste) asan] ‘Eamings per share of Rs2 each) -basicand diluted su] 086 es] 00] 86] __ Notes ‘The above san extract of the detalld format of quarterly financial results ed with the Stock Exchanges under regulation 39 of the SEB! (isting Obiigations and} Disclosure Requirements) Regulation 2015, The fll format ofthe quarterly financial repulls are avalble onthe websites of NSE and BSE at weew nscindia com an ‘wiv. bsincia.com respectively and an Companys webate at wor thelelacom ‘The nt loss forthe yea includes () Impairment of Chennal hotel Rs 2399 lk, b) Profit fom dscontinsing operations of Gos hotel Rs 1153 lakhs and () Net gaia on sae of Goa hoe! Bs 1803 lakhs ‘Te erstwhile CDR Lenders with exposure of about 95.6% of the CDR Debt assigned their debt to JM Financial Asset Reconstruction Company Privat Limited and lender with exposue of about 1% ofthe CDR Debt to Phoenix AKC Private Limited on 20th June.201, The Company ls pursing, with the ARC for a vise resrucuring package, with cetan cneesions in interest and zepayment terms and pending approval ofthe same, has dasaied the debt as Nance Listy i the Balance Sheet and hss not provided for the interest. The ARCs have otiied the Company tht the inerst and penal interest are applsble as per the rat ‘contacted prior to admission to CDR andthe debt amount is R 40096 lak (previous year Rs 457572 lakhs) andthe impact of the non provision i uaceratemant of finance cost forthe yea othe extent of Ks 72704 ls (previous year Re 76241 lk). The otal finance cost ot proved po Sst Mi (previous year Rs 7821 lakhs) Had the Company povided for interes the quarter and the year would have Been higher by Ry po & Ky Place: Mumbai Dated: 26th May, 2016S11 Vinayaka Buling PICARDO & CO No. 21/3. TSP Road, Kalasipalyam CHARTERED ACCOUNTANTS No. 218, "580 002 “Telephone: 080 - 26701694, 26700009 K.V. GOPALAKRISHNAYYA, &.com. FCA Tele Fax: 080- 26706317 Y.KESHAVAYYA, BCom, FCA ites rire MEERA KESHAV, B.Sc. FA Keshav@gkeas.com | ‘Auditor's Report on Quarterly Consolidated Financial Results and \ Consolidated Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 To i ‘The Board of Directors of | Hotel Leelaventure Limited We have audited the consolidated financial results of Hotel Leelaventure Limited for the year ended 31* March, 2016, attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These consolidated | financial results have been prepared from consolidated interim financial statements, which are the responsibility of the company’s management. Our responsibility is to express an opinion on these consolidated financial results based on our audit of such consolidated interim financial statements, which have been prepared in accordance with the Accounting Standards specified in Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement(s). An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the \ accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion. We have audited the financial statements of its sole subsidiary, viz. Leela Palaces and Resorts Limited, included in the consolidated financial results, whose consolidated financial statements reflect total assets of Rs. 3,736.70 lakhs as at 31st March, 2016; as well as the total revenue of Rs. 0.27 lakhs for the year ended 31st March, 2016. These financial statements and other financial information have been | audited by us and our opinion on the financial results is based on our audit. In our opinion and to the best of our information and according to the explanations given to us, these consolidated financial results for the year: () include the financial results of Leela Palaces and Resorts Limited, the sole subsidiary of the Company,i) Gil) have been presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and we draw attention regarding the Company’s liabilities, net worth and interest provision. The negative net worth as on 31% March, 2016 was Rs. 30,610 lakhs. The loss for the year would have been higher by Rs. 72,704 lakhs (Previous year Rs. 78,241 lakhs)and negative net worth would have been higher by another Rs. 1,50,945 lakhs, if interest and other finance cost as notified by the Asset Reconstruction Companies were provided for in the books. This raises question on whether the Company can be considered as a “Going Concern”. However, as the Company is hopeful of a viable restructuring package, it has prepared the financial statements on a going concern basis, Subject to the above, financial results give a true and view of the consolidated net loss and other financial information for the year ended 31st March, 2016. For Picardo & Co. Chartered Accountants 'irm Registration No: 107917W K. V. Gopalakrishnayya Partner Mumbai, 26" May, 2016PICARDO & CO sn Vinayaka Building No. 21/3, T.S.P Road, Kalasipalyam CHARTERED ACCOUNTANTS Bangalore - 860 002. K.V. GOPALAKRISHNAYYA, 8.com, FCA Telephone: 080 - 26701694, 26700009 Y.KESHAVAYYA, B.Com. FCA. Tele Fax: 080- 26706317 E-Mail: gopal@gkcas.com MEERA KESHAV, 8.82. FA. keshav@gkcas.com | [Auditor's Report on Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Li Obligations and Disclosure Requirements) Regulations, 2015 | To The Board of Directors of Hotel Leelaventure Limited We have audited the Standalone Financial Results of Hotel Leelaventure Limited for the year ended 31" March, 2016, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEB) (Listing Ghligations, and. Disclosure Requirements) Regulations, 2015. These quarterly oancial results as well as the year to date financial results have been prepared on the basis of the interim financial statements, which are the responsibility of the Company's management, Our responsibility is to express an opinion on these Financial results based on our audit of such interim financial statements, which fave been prepared in accordance with the Accounting Standards specified in Section 138 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally a accepted in India, We conducted our audit in accordance with the auditing standards generally ecepted in India, Those standards require that we plan and perform the audit t¢ a otain reasonable assurance about whether the financial results are free of material misstatement(s). An audit includes examining, on a test basis, evidence supporting } The amounts disclosed as financial results. An audit also includes assessing the ecounting principles used and significant estimates made by management. We i believe that our audit provides a reasonable basis for our opinion. In our opinion and to the best of our information and according to the explanations given to us these financial results: are presented in accordance with the requirements of Regulation 33 of the SEB! (Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and (ii) we draw attention regarding the Company's liabilities, net worth and interest provision. The negative net worth as on 31” March, 2016 was Rs. 27,338 lakhs. The loss for the year would have been higher by Rs. 72,704 jakhs (Previous year Rs. 78,241 lakhs)and negative net worth would have | been higher by another Rs. 1,50,945 lakhs, if interest and other finance cost as notified by the Asset Reconstruction Companies were provided for in thebooks. This raises question on whether the Company can be considered as a “Going Concern”. However, as the Company is hopeful of a viable restructuring package, it has prepared the financial statements on a going concern basis. Subject to the above, financial results give a true and fair view of the net loss and other financial information for the year ended 31st March, 2016. For Picardo & Co. Chartered Accountants Firm Registration No: 107917W K. V. Gopalakrishnayya Partner (Membership Number-21748) Mumbai, 26" May, 2016THE LEELA PALACES HOTELS RESORTS Form A (For audit report with unmodified opinion) [Pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015] T ‘Name of the company Hotel Leelaventure Limited | 2. | Annual financial statements | 31st March, 2016 (Consolidated) | for the year ended | 3. | Type of Audit observation | Emphasis of Matter Without qualifying their report, the Auditors have | drawn attention to the following matter in the Notes to the financial statements: Note 32.2 regarding the Company's liabilities, networth and interest provision. The negative networth as on 31" March, 2016 was Rs. 30,610 lakhs. The loss for the year would have been higher by Rs. 72,704 lakhs (Previous year Rs. 78,241 lakhs) and negative networth would have been | higher by another Rs. 150,945 lakhs, if finance costs as notified by the Asset Reconstruction | Companies were provided for in the books. This raises question on whether the Company can be considered as a “Going Concern”. However, as the Company is hopeful of a viable restructuring package as explained by them in the note, it has ; | prepared the financial statements on a going concer basis. Management's Response on the —_ above | observations are as follows: 32.2 Debt Restructuring } | (@) The Corporate Debt Restructuring (CDR) Empowered Group, in their meeting held on 28th June 2014 declared that the account of the Company | stands exited from CDR system on account of fi Regd. office HOTEL LEELAVENTURE UMITED ‘ne eels Mumbai, Sahar, Mumbai 400 058 nda, Phone: (7-2) 65911234 Fax (1-22) 66911212; Ema leelagtheleea com: ‘the Lela Palaces, Hotels and Resorts: New Delhi, Sangalo, Chennai, Mumba, Gurgaon, Uéaipur, Goa and ‘Upcoming Properties: Jaipur Agra: Lake Ashtamudi (eral); Bhartiya City, Bangalore and Lucknow. Corporate entity Number (CIN}-LSSI0MHT981PLCO24097 QD erraireascrcePursuant thereto, on 30th June 2014, 14 of the} erstwhile CDR lenders with exposure of about 95.6 % of the CDR Debt assigned their debt to JM Financial Asset Reconstruction Company Private Limited (GMFARC) and 1 lender with exposure of about 1% of the CDR debt, to Phoenix ARC Private Limited. (b) The total amount assigned by the erstwhile CDR | lenders to Asset Reconstruction Companies (ARCs) | was Rs. 415,013.77 lakhs, which included Sacrifice | amount of Rs. 26315 lakhs. The Company has not | accounted the Sacrifice amount, as it reflects the | difference in the NPV between the cashflows as per | the contracted terms and the cashflows agreed by the | lenders as per the CDR Package, for the duration of the loan. (©) The Company is pursuing with the ARC for a viable restructuring package, with certain concessions in interest and repayment terms and pending approval of the same, has classified the debt as Non-current Liability in the Balance Sheet and has not provided for the interest. The ARCs have notified the | Company that the interest and penal interest are | applicable as per the rates contracted prior to admission to CDR and that the debt amount is Rs. 460,696 lakhs (previous year Rs, 457,572 lakhs) and | the impact of the non-provision is understatement of | finance cost for the year to the extent of Rs. 72,704 (previous year Rs 78241 lakhs). The total finance cost not provided upto 31st March, 2016 is Rs 150,945 lakhs (previous year Rs. 78,241 lakhs) (d) The Company has been evaluating various options for reduction of debt, including sale / monetisation of, non-core assets, sale of hotels and getting an equity partner for infusion of equity and refinancing of debt. ‘The Company sold its Goa Hotel in December 2015, and the entire amount net of expenses was utilised for repayment of part of its debt to ARCs and other lenders.(©) The net worth of the Company, after excluding | revaluation reserves is negative to the extent of Rs. 30,610 lakhs as on 31st March 2016. Even though the net worth has turned negative during the year, the same could again become positive, when the financial restructuring materialises. (f) For reasons explained in note (a) to (€) above, the | financial statements of the Company have been prepared on a going concern basis. | 4,__| Frequeney of observation There was a similar observation in the report for the financial year 2014-15 on the above observation. Pret Haren Anil Harish Chairman of Audit Committee Mumbai, 26" May, 2016 Chartered Accountants Firm Registration No: 107917W Koo &O KX K. V. Gopalakrishnayya Partner (Membership Number 21748)THE LEELA PALACES HOTELS RESORTS FormA (For audit report with unmodified opinion) {Pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015] fi ‘Name of the company Hotel Leelaventure Limited 2, | Annual financial statements | 3)st March, 2016 (Standalone) | for the year ended ‘observation | Emphasis of Matter Without qualifying their report, the Auditors have drawn attention to the following matter in the Notes } to the financial statements: | Note 32.1 regarding the Company's liabilities, networth and interest provision. The negative networth as on 31° March, 2016 was Rs. 27,338 | lakhs. The loss for the year would have been higher by Rs. 72,704 lakhs (Previous year Rs. 78,241 | lakhs) and negative networth would have been | | higher by another Rs. 150,945 lakhs, if finance | costs as notified by the Asset Reconstruction | Companies were provided for in the books. This | raises question on whether the Company can be considered as a “Going Concern”. However, as the | Company is hopeful of a viable restructuring package as explained by them in the note, it has | prepared the financial statements on a going | concer basis. Management's Response on the above | observations are as follows: 2.1 Debt Restructuring (@) The Corporate Debt Restructuring (CDR) Empowered Group, in their meeting held on 28th | June 2014 declared that the account of the Company | stands exited from CDR system on account of failure Regd office HOTEL LEELAVENTURE UMITED ‘The Lola Mumbai, Sahar, Mumbal 400 059 india. Phone: (9-2) 66911234; Fax: (1-22) 6891122; mal leolagrheleel.com: ww ‘The Leela Palaces, Hotels and Resorts: New Delhi, fangalre,Chenna, Mumba, Gurgaon, Ueaipur Goa ana Koval Upcoming Properties: Jaipur Agra; Lake Ashtamud (Kerala) Bhartiya City, Bangalore and Lucknow. ‘Corporate Mdentity Number (IN LSSHOTMHT961PLCO24097 Pafeited5 OrssarotsiotocePursuant thereto, on 30th june 2014, 14 of the] erstwhile CDR lenders with exposure of about 95.6 % of the CDR Debt assigned their debt to JM Financial | ‘Asset Reconstruction Company Private Limited (IMFARC) and 1 lender with exposure of about 1% of the CDR debt, to Phoenix ARC Private Limited. (b) The total amount assigned by the erstwhile CDR lenders to Asset Reconstruction Companies (ARCs) was Rs. 415,013.77 lakhs, which included Sacrifice amount of Rs. 26315 lakhs. The Company has not accounted the Sacrifice amount, as it reflects the difference in the NPV between the cashflows as per the contracted terms and the cashflows agreed by the lenders as per the CDR Package, for the duration of the loan. (©) The Company is pursuing with the ARC for viable restructuring package, with certain concessions in interest and repayment terms and pending approval of the same, has classified the debt as Non-current | Liability in the Balance Sheet and has not provided for the interest. The ARCs have notified the Company that the interest and penal interest are applicable as per the rates contracted prior to| admission to CDR and that the debt amount is Rs. 460,696 lakhs (previous year Rs. 457.572 lakhs) and the impact of the non-provision is understatement of finance cost for the year to the extent of Rs. 72,704 (previous year Rs 78241 lakhs). The total finance cost not provided upto 31st March, 2016 is Rs 150,945 lakhs (previous year Rs. 78,241 lakhs). (@) The Company has been evaluating various options for reduction of debt, including sale / monetisation of non-core assets, sale of hotels and getting an equity partner for infusion of equity and refinancing of debt. ‘The Company sold its Goa Hotel in December 2015, and the entire amount net of expenses was utilised for repayment of part of its debt to ARCs and other lenders.(©) The net worth of the Company, after excluding revaluation reserves is negative to the extent of Rs. 27,338 lakhs as on 31st March 2016. Even though the net worth has turned negative during the year, the same could again become positive, when the financial | restructuring materialises. | (® For reasons explained in note (a) to (¢) above, the financial statements of the Company have been prepared on a going concern basis, Frequency of observation There was a similar observation in the report for the financial year 2014-15 on the above observation, | \—7 | Krishn: tL ivek Nair ‘Chairman & Managing Director poe ela a Deshika Chief Financial Officer Mumbai, 26" May, 2016 Pit orn Anil Harish Chairman of Audit Committee For Picardo & Co. Chartered Accountants | Firm Registration No: 107917W K. V. Gopalakrishnayya Partner