Royal Orchid Hotels : Outcome of Board Meeting

Date: August 05, 2022
To,	To,
The Manager,	The Manager,
Department of Corporate Services,	Department of Corporate Services,
Bombay Stock Exchange Limited	National Stock Exchange of India Limited,
Floor 25, P. J. Towers,	Exchange Plaza, Plot no. C/1, G Block
Dalal Street,	Bandra Kurla Complex, Bandra (E)
Mumbai - 400 001	Mumbai - 400 051
BSE Scrip Code: 532699	NSE Scrip Symbol: ROHLTD

Dear Sir/Madam,

Sub: Outcome of the Board Meeting and Submission of Unaudited Standalone & Consolidated Financial Results for Quarter ended 30.06.2022

Pursuant to Para A of Part A of Schedule III, read with, Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that the Board, in its Meeting held today, i.e. August 05, 2022, approved the Un-audited Financial Results (Standalone & Consolidated) for the First Quarter (Q1) ended on June 30, 2022.

A copy of Un-audited Financial Results (Standalone & Consolidated) for the quarter ended June 30, 2022, as approved by the Board is enclosed for your information and record. Further, pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are also enclosing herewith a copy of the 'Limited Review Report' received from Statutory Auditors, on the Standalone & Consolidated Un-audited financial results.

You are requested to take the above on record.

Thanking you,

Yours Sincerely,

For ROYAL ORCHID HOTELS LIMITED

RANABIRDigitally signed by

RANABIR SANYAL

SANYAL Date: 2022.08.05

13:48:55 +05'30'

Ranabir Sanyal

Company Secretary & Compliance Officer

Encl: As above

Walker Chandiok & Co LLP 5th Floor, No.65/2, Block "A", Bagmane Tridib, Bagmane Tech Park, C V Raman Nagar, Bengaluru 560093

T [phone]

F [phone]

Independent Auditor's Review Report on Standalone Unaudited Quarterly Financial Results of the Company pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Royal Orchid Hotels Limited

1. We have reviewed the accompanying statement of standalone unaudited financial results ('the Statement') of Royal Orchid Hotels Limited ('the Company') for the quarter ended 30 June 2022, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time.
2. The Statement, which is the responsibility of the Company's management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting ('Ind AS 34'), prescribed under Section 133 of the Companies Act, 2013 ('the Act'), and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specified under Section 143(10) of the Act, and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
4. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

Chartered Accountants	Walker Chandiok & Co LLP is registered
	with limited liability with identification
Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune	number AAC-2085 and its registered office
	at L-41 Connaught Circus, New Delhi,
	110001, India

Emphasis of Matter - Impact of Covid-19

5. We draw attention to Note 7 to the accompanying standalone financial results, which describes the effects of uncertainties relating to the effects of COVID-19 pandemic and management's evaluation of its impact on the business operations of the Company and accompanying financial results as at reporting date, the extent of which is significantly dependent on future developments, as they evolve. Our conclusion is not modified in respect of this matter.

For Walker Chandiok & Co LLP Chartered Accountants

Firm Registration No: 001076N/N500013

Aasheesh Arjun Singh Partner

Membership No. 210122 UDIN: 22210122AOIAJZ7831

Bengaluru

05 August 2022

Chartered Accountants

ROYAL ORCHID HOTELS LIMITED

Registered Office : No.1, Golf Avenue, Adjoining KGA Golf Course, Airport Road, Bengaluru - 560 008.

INDIA. T: [phone], F: [phone], www.royalorchidhotels.com

CIN: L55101KA1986PLC007392

STATEMENT OF STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2022
				(₹ in lakhs except per share data)
			Quarter ended		Year ended
Sl.	Particulars	30 June 2022	31 March 2022	30 June 2021	31 March 2022
No.		(Audited)
	(Unaudited)	(Unaudited)	(Audited)
		(Refer note 3)
1 Income
(a) Income from operations		3,808.04	2,317.05	935.97	7,973.90
(b) Other income		135.68	339.81	172.21	851.27
Total Income		3,943.72	2,656.86	1,108.18	8,825.17

• Expenses

	(a) Cost of materials consumed	416.00	284.06	248.72	1,110.31
	(b) Employee benefits expense	622.68	490.95	262.24	1,622.96
	(c) Rent expense	252.30	181.71	87.20	670.40
	(d) Power and fuel expense	360.65	238.35	155.34	900.96
	(e) Other expenses	838.78	610.92	335.53	2,166.86
	Expenses before depreciation and amortisation and finance	2,490.41	1,805.99	1,089.03	6,471.49
	costs
3	Earnings before depreciation and amortisation, finance costs and	1,453.31	850.87	19.15	2,353.68
	taxes (1-2) (EBITDA)
4	Finance costs	269.55	231.96	257.85	885.76
5	Depreciation and amortisation expense	261.57	221.58	211.57	854.87
6	Total expenses (2+4+5)	3,021.53	2,259.53	1,558.45	8,212.12
7	Profit/(Loss) before exceptional items and tax (1-6)	922.19	397.33	(450.27)	613.05
8	Exceptional items (refer note 4)	-	-	(331.66)	(501.66)
9	Profit/(loss) before tax (7+8)	922.19	397.33	(781.93)	111.39
10	Tax expense
	(a) Current tax	260.00	-	-	-
	(b) Deferred tax (credit)/charge	(25.80)	119.17	15.96	184.03
	Total tax expense	234.20	119.17	15.96	184.03
11	Net Profit/(Loss) for the period (9-10)	687.99	278.16	(797.89)	(72.64)

12 Other Comprehensive Loss

	Items that will not be reclassified to profit or loss	-	(17.16)	-	(17.16)
	Income tax relating to items that will not be reclassified to profit or loss	-	4.77	-	4.77
	Total Other Comprehensive Loss	-	(12.39)	-	(12.39)
13	Total Comprehensive Income/(loss) for the period (11+12)	687.99	265.77	(797.89)	(85.03)
14	Paid-up equity share capital (Face Value ₹ 10/- each)	2,742.52	2,742.52	2,742.52	2,742.52
15	Other equity				15,980.58
16	Earnings/(loss) Per Share of ₹ 10 each: *
	(a) Basic (₹)	2.51	1.01	(2.91)	(0.26)
	(b) Diluted (₹)	2.51	1.01	(2.91)	(0.26)

* not annualised

See accompanying notes to the standalone financial results.

Notes:

• The standalone financial results ("the Statement") for the quarter ended 30 June 2022 have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 05 August 2022.

• The Company has evaluated its operating segments in accordance with Ind AS 108 and has concluded that it is engaged in a single operating segment viz. hospitality business.

• The figures for the quarter ended 31 March 2022 are the balancing figures between the audited figures in respect of the full financial years and published unaudited year to date figures upto third quarter of the respective financial years. Also the figures upto the end of third quarter were only reviewed and not subjected to audit.

4 Exceptional items comprise of the following:

(₹ in lakhs)

Particulars

Provision for settlement of liabilities (refer note 6 below)

Provision for impairment of investment in subsidiaries (refer note 5 below) Total

	Quarter ended		Year ended
30 June 2022	31 March 2022	30 June 2021	31 March 2022
(Unaudited)	(Audited)	(Unaudited)	(Audited)
(Refer note 3)
-	-	-	170.00
-	-	331.66	331.66
-	-	331.66	501.66

• During the quarter ended 30 June 2021, the Company had recorded an additional impairment provision of ₹331.66 lakhs for investment made in one subsidiary on the basis of a Memorandum of Understanding entered into by the company to sell the non-current assets by the subsidiary.

• During the previous year, the Company had entered into a Share Purchase Agreement to sell a subsidiary. In accordance with the Share Purchase Agreement, the Company had identified certain amounts that were payable to settle these obligations and accordingly had made a provision of ₹170 lakhs.

• The COVID-19 pandemic has impacted and continues to impact hospitality industry. Whilst there has been a third wave of the COVID-19 pandemic where the Company operates, there has also been increased vaccination drive by the Government and with the unlocking of restrictions, the Company witnessed a recovery in its demand especially in its leisure destinations and business is expected to gradually improve. The Company has also assessed the possible impact of COVID-19 in preparation of the standalone financial results, including but not limited to its assessment of liquidity and going concern assumption, recoverable values of its financial and non-financial assets and impact on revenues and costs. In evaluating the impact of the COVID-19 pandemic on its ability to continue as a going concern and the possible impact on its financial position, management has used the principles of prudence and exercised judgements in estimating occupancy rates and average room rate per hotel while developing cash- flow forecasts. The Company believes that it would be able to recover its assets and meet all its obligations in the normal course of business. Accordingly, the management believes that the Company will continue as a going concern. Management has used internal and external sources of information upto the date of approval of these standalone financial results in determining the recoverability of property, plant and equipment, investments and other financial assets, and trade receivables as at 30 June 2022. The impact of the global health pandemic may be different from that estimated as at the date of approval of these financial results given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions and any significant impact of these changes would be recognised in the financial results as and when these material changes to economic conditions arise.

• During the previous year, the Company had issued a termination letter in respect of one of its leased hotels and the matter is pending for arbitration. The Company is of the view that it will be able to obtain rent concessions through arbitration and hence no adjustments with respect to lease liabilities and Right-of-use assets have been made as on 30 June 2022.

9 Prior period figures have been regrouped/ reclassified, wherever necessary, to conform to the current periods' presentation.

Place: Utorda, Goa	For Royal Orchid Hotels Limited
Date: 05 August 2022
	C K Baljee
	Managing Director
	DIN: 00081844