Country Club FY26 report notes gaps in PIT regulations

A secretarial compliance audit for the financial year ended March 31, 2026, revealed that country club hospitality failed to ensure full compliance with specific SEBI regulations regarding insider trading and website disclosures. The report, issued by R&A Associates, highlighted that the Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information was not published on the company’s website in the prescribed manner. Additionally, the company lacked a structured digital database as required under Regulation 3(5) & 3(6) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.

The examination of documents and records for the review period indicated that while the company has adopted applicable policies under SEBI regulations with board approval, it fell short of maintaining conformity in certain areas. Specifically, certain disclosures required under Regulation 46(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 were not available on the website. Furthermore, web-links provided in the annual corporate governance reports under Regulation 27(2) were found to be inaccurate and non-specific, failing to redirect users to the relevant documents or sections.

Compliance Status Overview

The audit covered various regulatory frameworks including the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, and the SEBI (LODR) Regulations, 2015. The following table summarizes the compliance status and observations recorded by the auditors:

S.No	Particulars	Compliance Status	Observations
1	Secretarial Standards	Yes	Nil
2	Adoption and updation of Policies	No	Code of Practices for Fair Disclosure not published on website.
3	Maintenance and disclosures on Website	No	Disclosures under Reg 46(2) missing; web-links under Reg 27(2) inaccurate.
4	Disqualification of Director	Yes	Nil
5	Details related to Subsidiaries	Yes	Nil
6	Preservation of Documents	Yes	Nil
7	Performance Evaluation	Yes	Nil
8	Related Party Transactions	Yes	Nil
9	Disclosure of events or information	Yes	Nil
10	Prohibition of Insider Trading	No	Lack of structured digital database under Reg 3(5) & 3(6).
11	Actions taken by SEBI or Stock Exchanges	NA	Nil
12	Resignation of statutory auditors	NA	Nil
13	Additional Non-compliances	Yes	Nil

Governance and Regulatory Findings

Regarding its subsidiary structure, the company stated it does not have any Material Subsidiary as defined under the LODR Regulations, with details of other subsidiaries disclosed in Form AOC-2. The report confirmed that none of the directors were disqualified under Section 164 of the Companies Act, 2013. The firm also noted that the listed entity conducted performance evaluations of the Board, Independent Directors, and Committees as prescribed.

R&A Associates clarified that the responsibility for compliance and authenticity of documents lies with the management, and their report is based solely on the examination of relevant documents. The report is neither an audit nor an expression of opinion on the financial records. It is intended specifically for compliance purposes under Regulation 24A(2) of the SEBI (LODR) Regulations, 2015, and does not assure the future viability of the company or the efficacy of its management.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.93%	-2.12%	-6.30%	-18.50%	-19.01%	+117.65%

Country Club Hospitality & Holidays Limited reported a consolidated net loss of ₹1,763.41 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹437.93 lakh in the previous year. The standalone entity, however, returned to profitability with a net profit of ₹42.96 lakh for FY26 against a net loss of ₹169.90 lakh in FY25. The Board approved the audited standalone and consolidated financial results at its meeting held on May 30, 2026.

The company recognized an impairment loss of goodwill amounting to ₹774 lakh in the standalone financial statements and ₹2,561.54 lakh in the consolidated financial statements for the year. Additionally, the standalone financial statements included a write-back of ₹441 lakh related to long-outstanding creditor balances. M/s. P. Murali & Co., Chartered Accountants, issued an audit report with an unmodified opinion on the results.

Financial Performance

The total consolidated revenue for FY26 stood at ₹11,622.70 lakh, a significant increase from ₹7,330.15 lakh in the previous year. Total expenses also rose to ₹10,843.45 lakh from ₹6,850.85 lakh. On a standalone basis, total revenue increased to ₹11,622.70 lakh from ₹6,851.00 lakh, while total expenses were ₹10,824.62 lakh compared to ₹6,957.90 lakh in FY25.

Metric	Consolidated FY26 (₹ in Lakhs)	Consolidated FY25 (₹ in Lakhs)	Standalone FY26 (₹ in Lakhs)	Standalone FY25 (₹ in Lakhs)
Total Revenue	11,622.70	7,330.15	11,622.70	6,851.00
Total Expenses	10,843.45	6,850.85	10,824.62	6,957.90
Net Profit/Loss	(1,763.41)	437.93	42.96	(169.90)
Basic EPS	(1.08)	0.27	0.03	(0.10)

Key Developments

During the year, the company modified the terms of a Joint Development Agreement with M/s. Vajram Estates Private Limited, adjusting a refundable deposit of ₹20.91 crore against additional area allotment. The Board also appointed Y. Siddharth Reddy as the Nodal Officer under Section 125 of the Companies Act, 2013. The auditors emphasized that investments in subsidiary companies continue to be stated at historical cost rather than fair value.