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.

Sri Havisha Hospital has reported a net loss of Rs 178.28 crore for the first quarter ended June 30, compared to a loss of Rs 167.51 crore in the same period last year. The company's board of directors approved the unaudited financial results at a meeting held on August 11.

Financial Performance

The company's total income for Q1 stood at Rs 306.70 crore, slightly lower than Rs 307.74 crore reported in the corresponding quarter of the previous year. The decline in revenue was primarily attributed to the company's hotel business segment.

Key financial highlights for Q1:

The company's finance costs for the quarter increased to Rs 117.94 crore, which includes an interest expense on lease liability of Rs 107.97 crore. This is related to the renewal of leasehold rights with the Airports Authority of India (AAI) for another 30 years from 2023.

Corporate Updates

The board of directors has scheduled the 32nd Annual General Meeting (AGM) for September 20, to be held via video conferencing. Key agenda items for the AGM include:

1. Re-appointment of Mr. Dharmin Dontamsetti as a director
2. Recommendation for re-appointment of Mr. Abhaya Shankar as a Non-Executive Independent Director for a second term of 5 consecutive years
3. Approval of related party transactions with Managing Director Mr. Venkat Manohar Dontamsetti
4. Issuance of sweat equity shares to Mr. Venkat Manohar Dontamsetti

Additionally, the board has appointed M/s Krishna Kumar & Associates as the Secretarial Auditor for a period of five consecutive years from FY 2025-26 to FY 2029-30, subject to shareholder approval.

Legal Matter

Sri Havisha Hospital has made a payment of Rs 99.91 lakh under protest to Telangana State Power Distribution Company Ltd (TGSPDCL) towards Cross Subsidy Surcharge (CSS). This payment is related to electricity availed from third-party power generators 25 to 30 years ago. The matter is currently sub-judice in the Telangana High Court, with the company having been directed to pay 50% of the disputed amount.

The management, based on legal opinion, believes it has a strong case, and the likelihood of liability crystallizing is considered remote. The amount paid has been disclosed under "Other Current Assets" / "Deposits" in the financial statements.

As Sri Havisha Hospital navigates through these financial challenges and corporate developments, stakeholders will be closely watching the company's performance in the coming quarters and the outcomes of the upcoming AGM.