Velan Hotels Limited , a hospitality company based in Tirupur, Tamil Nadu, has reported a significant increase in net losses for the quarter ended September 30, 2025. The company's financial situation continues to be challenging as it grapples with suspended operations and explores asset sale options.

Financial Performance

The unaudited financial results for the quarter reveal a concerning trend:

The net loss has more than doubled compared to the same period last year, indicating a deterioration in the company's financial health.

Operational Challenges

Velan Hotels has faced significant operational hurdles:

• All revenue operations have been suspended since March 2020
• The company is actively exploring options to sell assets
• The ability to continue as a going concern is dependent on successful asset sales and debt settlement

Corporate Actions

As per the LODR (Listing Obligations and Disclosure Requirements) data:

• The Board of Directors met on November 14, 2025, to approve the unaudited financial results
• M/s. Krishaan & Co., the statutory auditor, issued a Limited Review Report for the quarter
• The board meeting lasted from 10:15 a.m. to 4:15 p.m., suggesting detailed discussions on the company's future

Looking Ahead

Velan Hotels' focus appears to be on financial restructuring through asset sales. The success of these efforts will be crucial for the company to address its liabilities and potentially resume operations in the future.

Investors and stakeholders should closely monitor the company's progress in asset divestment and debt settlement, as these factors will likely determine the viability of Velan Hotels as a going concern.

Velan Hotels Limited , a hospitality company facing significant operational challenges, has released its unaudited financial results for the first quarter ended June 30, 2025. The company's board of directors approved these results during a meeting held on August 9, 2025.

Operational Status and Financial Performance

Velan Hotels has been grappling with a complete suspension of operations since March 24, 2020, which continues to impact its financial health severely. The company reported no revenue for the quarter, consistent with its non-operational status over the past few years.

The financial results paint a grim picture:

The company's net loss remained stable at Rs. 11.90 crore compared to the previous quarter. However, the loss is significantly higher than the Rs. 0.40 crore loss reported in the same quarter of the previous year, indicating a deteriorating financial situation.

Debt Repayment and Asset Sales

Velan Hotels' ability to repay its debts is now critically dependent on the realization from asset sales. The company has made some progress in addressing its statutory obligations:

• Paid Rs. 27.95 lakh towards Provident Fund, Sales Tax, and Tax Deducted at Source (TDS) dues.
• Remitted Rs. 22.02 lakh for Goods and Services Tax (GST).

However, the company still faces delays in meeting other statutory obligations, with dues related to GST, Value Added Taxes, and Service Tax overdue by more than 12 months.

Corporate Governance and Management Changes

In a significant management decision, the board has reappointed Mr. Muthukumararamalingam Gautham (M.R. Gautham) as Executive Director for a period of one year, effective August 9, 2025. Notably, this reappointment comes without any managerial remuneration, reflecting the company's cost-cutting measures amid financial distress.

The board has also adopted a succession policy for board and senior management appointments, aiming to ensure leadership continuity and stability.

Auditor's Observations

The company's auditors, Krishaan & Co., have highlighted several concerns in their review report:

1. The company's ability to continue as a going concern is significantly impacted due to the suspension of operations and dependence on asset sales for debt repayment.
2. Impairment tests for assets tied to borrowings with RARE Asset Reconstruction Company have not been carried out, as only a portion of the debt has been extinguished through asset sales.
3. Delays in meeting statutory obligations persist, with some dues overdue by more than a year.

Looking Ahead

Velan Hotels faces a challenging road ahead as it navigates through its operational suspension and attempts to settle its financial obligations. The success of its asset sale strategy and the ability to resume operations will be crucial factors in determining the company's future viability.

Investors and stakeholders will be closely monitoring the progress of asset sales and any potential plans for operational revival in the coming quarters.