Blue Coast Hotels Limited , a prominent player in the hospitality sector, has made significant amendments to its Memorandum of Association, signaling a strategic expansion into new business areas. The changes, approved at the company's 32nd Annual General Meeting held on September 6, 2025, reflect a bold move to diversify its operations and adapt to evolving market trends.

Key Amendments to the Memorandum of Association

The company has introduced three major changes to its Memorandum of Association:

1. Inclusion of Virtual Digital Assets: Blue Coast Hotels has inserted the phrase 'Virtual Digital Assets, Currency' into clause 4 of part A of part III of its Memorandum. This addition suggests the company's intent to explore opportunities in the digital asset space, potentially including cryptocurrencies and blockchain-related ventures.

2. Expansion into Travel and Tourism Services: A new clause has been added, empowering the company to conduct a wide range of domestic and international travel and tourism services. This includes:

   • Organizing and conducting tours
   • Travel and accommodation bookings
   • Reservation services
   • Transport vehicle operations
   • Publishing travel-related content

3. Structural Improvements: The company has undertaken a renumbering of existing clauses to enhance clarity and consistency within the document.

Implications for Business Operations

These amendments signify a strategic pivot for Blue Coast Hotels, potentially transforming it from a pure-play hospitality company to a more diversified entity. The inclusion of virtual digital assets in its scope of activities could position the company to capitalize on the growing interest in digital currencies and blockchain technology within the hospitality and travel sectors.

The expansion into comprehensive travel and tourism services suggests that Blue Coast Hotels is looking to create a more integrated hospitality ecosystem. This could lead to synergies between its existing hotel operations and new travel-related services, potentially offering customers end-to-end travel solutions.

Corporate Governance Updates

In addition to these strategic changes, the Annual General Meeting also addressed important corporate governance matters:

Re-appointment of Independent Director

Mr. Vijay Jain has been re-appointed as an Independent Director for a second term of five consecutive years, effective from March 1, 2026, to February 28, 2031. Mr. Jain's reappointment was approved despite his age exceeding 75 years, highlighting the company's confidence in his expertise and contributions.

Auditor Appointments

The company has appointed M/s Virender K. Jain & Associates as its Statutory Auditor and M/s Ajay. K. & Associates as its Secretarial Auditor, ensuring continued compliance with regulatory requirements.

Conclusion

The amendments to Blue Coast Hotels Limited's Memorandum of Association mark a significant milestone in the company's evolution. By venturing into virtual digital assets and expanding its travel services portfolio, the company is positioning itself to capitalize on new market opportunities while leveraging its existing strengths in the hospitality sector. Shareholders and industry observers will be keenly watching how these strategic shifts translate into business growth and value creation in the coming years.

Blue Coast Hotels Limited , a prominent player in the hospitality sector, faces a significant change in its financial oversight as its statutory auditors, P.P. Bansal & Co., Chartered Accountants, have tendered their resignation. This development comes at a time when the company is grappling with financial challenges and regulatory scrutiny.

Auditor Resignation

P.P. Bansal & Co., which had been appointed for a five-year term from 2022-23 to 2026-27, cited pre-occupation with other personal and professional commitments as the reason for their departure. The firm completed the audit for the financial year ended March 31, 2025, and the limited review for the quarter ended June 30, 2025, before stepping down.

Financial Performance

The company's financial results for the quarter ended June 30, 2025, reveal ongoing challenges:

The company continues to incur significant losses, with expenses far outweighing revenues. This has resulted in a negative net worth, raising concerns about its ability to continue as a going concern.

Regulatory Scrutiny

Adding to its challenges, Blue Coast Hotels is under investigation by the Securities and Exchange Board of India (SEBI) for alleged violations of SEBI regulations and Indian Accounting Standards. The company, along with its Whole Time Director and former CFO, received a Show Cause Notice on March 4, 2025. In response, they have filed a Settlement Application with SEBI, proposing a settlement amount of approximately Rs. 78 lakhs.

Strategic Moves

Despite these setbacks, the company is taking steps to address its financial situation:

1. The Board has approved a proposal to provide hotel operations and management services.
2. Blue Coast Hotels has filed an Objection Petition claiming rights over balance auction proceeds of Rs. 85 crores plus interest from the sale of its former property, Hotel Park Hyatt Goa Resort & Spa.
3. The company has converted a portion of its Redeemable Preference Shares into Compulsorily Convertible Preference Shares and subsequently into equity shares, potentially improving its capital structure.

Looking Ahead

While the resignation of P.P. Bansal & Co. adds another layer of complexity to Blue Coast Hotels' situation, the company maintains that there were no concerns raised by the auditors regarding management practices. The Audit Committee and Board of Directors are taking steps to appoint new statutory auditors to fill the vacancy.

Blue Coast Hotels' management remains optimistic about its future business plans and expects financial support from its wholly-owned subsidiary, Blue Coast Hospitality Limited. However, the company's ability to overcome its current financial challenges and regulatory issues will be crucial for its future in the competitive hospitality industry.