Sri Havisha Hospital And Infrastructure Limited has successfully renewed its land lease agreement with the Airports Authority of India (AAI) for its operations at Begumpet Airport, Hyderabad. The company announced this significant development through a regulatory disclosure to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on July 27, 2023.

Key Details of the Lease Renewal

• Duration: The lease has been renewed for a period of 30 years.
• Effective Date: The new lease term commenced on January 1, 2023.
• Location: The leased land is situated at Begumpet Airport, Hyderabad.
• Parties Involved: Sri Havisha Hospitality And Infrastructure Limited and the Airports Authority of India.

Implications for Sri Havisha Hospitality

This long-term lease renewal is a crucial development for Sri Havisha Hospitality And Infrastructure Limited. It ensures the company's continued presence and operations at the strategically important Begumpet Airport location for the next three decades. The extended lease period provides stability and allows the company to plan and execute long-term strategies related to its hospitality and infrastructure projects at the site.

About Begumpet Airport

Begumpet Airport, located in Hyderabad, was once the primary airport serving the city. While it no longer operates as a commercial airport following the opening of Rajiv Gandhi International Airport, it continues to be used for various purposes, including general aviation and as a training facility for aspiring pilots.

The renewal of this lease agreement suggests that Sri Havisha Hospitality And Infrastructure Limited sees ongoing value in maintaining its presence at this location, potentially capitalizing on the site's historical significance and strategic positioning within Hyderabad.

As the hospitality and infrastructure sectors continue to evolve, particularly in rapidly developing urban centers like Hyderabad, this lease renewal positions Sri Havisha Hospitality to potentially benefit from future development opportunities in the area surrounding Begumpet Airport.

Investors and stakeholders will likely be keen to observe how the company leverages this renewed long-term lease to enhance its operations and create value in the coming years.

Sri Havisha Hospital has released its unaudited financial results for the first quarter ending June 30. The company's Board of Directors approved these results on August 11, which were subsequently published in Financial Express and Ninadam on August 13.

Financial Performance

For the quarter ended June 30, Sri Havisha Hospitality reported:

The company's revenue from operations saw a modest increase of 3.74% year-over-year. However, the total income marginally decreased by 0.34% due to a significant reduction in other income. The net loss for the quarter widened by 6.43% compared to the same period last year.

Bank Recovery Notices

In a separate development, several financial institutions have issued recovery notices and announced e-auctions for defaulted loans related to Sri Havisha Hospitality:

1. IDBI Bank:

   • Issued possession notices for properties worth Rs. 61.84 lakh and Rs. 20.59 lakh.

2. HDFC Bank:

   • Issued a notice under Section 13(2) for outstanding liabilities of Rs. 26.47 lakh.

3. Karnataka Bank:

   • Announced e-auctions for immovable properties with secured debts of Rs. 1.59 crore and Rs. 1.31 crore.

These notices indicate significant financial stress and potential asset recovery actions against the company.

Corporate Governance Updates

The company has also made several corporate governance announcements:

1. Re-appointment of Independent Director:

   • Mr. Abhaya Shankar (DIN: 00008378) has been re-appointed as a Non-Executive Independent Director for a second term of 5 years, effective from September 20, subject to shareholder approval.

2. Appointment of Secretarial Auditors:

   • M/s. Krishna Kumar & Associates, represented by Mr. A. Krishna Kumar (FCS No. 5356), has been appointed as Secretarial Auditors for a period of 5 consecutive years, subject to shareholder approval.

3. Issuance of Duplicate Share Certificate:

   • The company completed the process of issuing a duplicate share certificate for 5,700 shares to Ms. Mandir Preet Kaur on August 11.

These developments come at a time when the company is facing financial challenges, as evidenced by the recovery notices from multiple banks. Investors and stakeholders will be closely monitoring how Sri Havisha Hospitality addresses these issues and implements its turnaround strategy in the coming quarters.