LUX ISLANDS RESORT

Company Review

LUX* Resorts & Hotels is a main luxury hotel operator based in Mauritius that owns or partially
owns many of its hotels and manages others under management contracts that usually include
design, operations, sales and marketing, in addition to management services. It is a wholly
owned subsidiary of LUX* Hospitality Ltd., which is listed on the Mauritius Stock Exchange
and is a member of the GML, the country's largest company as of 2014.

The company was founded in 1985 in Mauritius, by a group of Mauritian investors, as Naiade

Resorts, with a focus on creativity, versatility and a friendly environment. In addition to steadily
expanding its own hotel operations, management contracts were obtained in other parts of the
Indian Ocean area.

In 2011, the company was renamed LUX* Resorts & Hotels, and a new CEO, Paul Jones, was
hired, who had previously worked for the One & Only brand. The brand has shifted its focus to a
more relaxed approach to luxury, adding "original" coffee, retro-styled ice cream parlors, on-the-
beach film screenings, pop-up bars, red antique telephone boxes with free calls home, and more
and fresh wellness & spa programs.

Chairman’s Report

LUX Resorts and hotel helps people to celebrate life by delivering consistently on the promise of
a different kind of Luxury; hospitality that is lighter, brighter. LUX*s stage exceptional
experiences in different locales-whether on the Beach, in the City or in Nature-by banishing
thoughtless patterns and being more simple, fresh and sensory than our competitors. On the
behalf of board directors I feel extremely pleasure to present the integrated annual report of lux
island resort for the financial year ended 30 June 2020. This report has been prepared in
accordance with the GRI Standards: Core option.

The year 2020 was very much challenge year for all the tourists’ base industry .The Covid-19
pandemic has triggered an unprecedented crisis in the hospitality industry. Every hotels and
another business were blink of shutdown. The global lockdown in the fourth quarter of this year
led to a sudden and severe drop in tourism worldwide, with the UN World Tourism Barometer
showing a 56% year-on-year drop in tourist arrivals between January and May 2020.

We are very glad and proud to say that the three destinations in which Lux Island Resorts Ltd
and its subsidiaries operate – Mauritius, the Maldives and Reunion Island – have not been
spared. Yet despite these very difficult conditions we were able operate our business from guide
line provided by WHO. I am pleased to report that our results confirm the resilience of both our
business model and our people.

2020 Performance

As the global pandemic began starting of 2020 Lux Island Resorts entered this crisis in a position
of strength. We put our outstanding performance throughout every difficulty we put our every
last resource in the first two quarters of the current financial year, demonstrating the resilience of
our new operating model as a standalone hospitality real estate business following our separation
from The Lux Collective, our sister management company, in 2018-19. We also went into the
crisis with sufficient liquidity reserves and relatively limited debt.

The impact of the Covid-19 pandemic began to make itself felt as of the end of February 2020,
with an abrupt year on year decline in tourist arrivals in each of our destinations. By March
2020, all of our destinations were in lockdown. Our hotels remained closed for the rest of the
financial year. We reopened our Reunion properties in July and our Maldives hotels in August,
while Tamassa and LUX* Grand Gaube in Mauritius resumed operations at the beginning of
August and end of August 2020 respectively.

The impact on our Group’s revenue, profit and cash reserves has been substantial. No revenue
was recorded during the quarter ended 30 June 2020. For the sake of comparison, Lux Island
Resorts generated Rs 1.3bn in revenue over the same period last year.

Objectives of study

 To estimate the future growth of business.

 To known the information about financial position
 To show the truth and fair view of financial results of the business
 Profit retention policy
 To provide financial data on economic recourses and obligation
 To provide sufficient and reliable information to various parties.