Savera Industries Ltd. ನಿರ್ದೇಶಕರ ವರದಿ

The Directors have pleasure in presenting the 57th Annual Report of M/s. Savera
Industries Ltd (the company), along with the audited financial statements under Ind AS for
the financial year ended 31st March, 2026.

1. FINANCIAL RESULTS

The Financial Results of the Company for the year under review is summarized below for
your perusal and consideration. (R_s. i_n l_akhs)

1.1 STATE OF COMPANY’S AFFAIRS

During the year under review the company achieved a turnover of ?1,06,27,49,069/-
against the corresponding previous year turnover of?83,41,07,261/-. Total expenditure for
the period ended as at 31st March, 2026 amounted to ? 92,09,27,621/-increased by ?

24,08,84,522/-as compared to the previous year. The Profit (EBITDA) before depreciation,
finance cost and tax for the year ended 31st March,2026 amounted to ? 23,86,10,884/-
asagainst the profit of ?19,44,51,017/-over the corresponding period last year. Deferred
tax for the year ended 31st March, 2026 amounted to NIL After accounting for taxes the
Company reported a Profit after Tax for FY 2025-26 of ?12,81,66,246/- in comparison with a
Profit of ?13,24,15,863/-for FY 2024-25. No amount was transferred to General Reserve
during the year under review. The company has adopted Ind-AS from the financial year
2017-18.

2. DIVIDEND

The Board of Directors of the Company has recommended a dividend of Rs.3.00 per equity
share for the financial year ended 31.03.2026 out of the profits of current financial year. The
total outflow towards dividend will be Rs.3,57,84,000/-.

3. INDUSTRY OVERVIEW

The Indian hospitality industry in 2026 is experiencing a robust period of rate-led growth,
with market revenues projected between $24 billion and $65 billion. Driven by strong
domestic travel, MICE events, and premium hotel occupancies of 72-74%, the sector''s
growth is expanding rapidly into Tier 2 and Tier 3 cities

Key Market Dynamics & Financials

• Revenue Growth: Industry revenues are expected to grow by 7-9% YoY, supported by
high demand for domestic leisure, weddings, and stable corporate travel.

• Occupancy & Rates: Pan-India premium hotel occupancy is holding steady at
72-74%, with average room rates (ARRs) for premium hotels projected to range
between Rs. 8,200 and Rs. 8,800.

• Operating Margins: Operating margins remain strong at 34-36% for the premium
segment, significantly outperforming pre-COVID numbers.

Geographic & Asset Shifts

• Beyond the Metros: Over 50% of new hotel signings are occurring outside major
metropolitan hubs. Government initiatives like the Smart Cities Mission and the UDAn
regional flight connectivity scheme have made previously inaccessible Tier-2/3 regions
highly attractive for hotel developers.

• Brand Expansion: Major operators are expanding their footprint to meet this demand.
For instance, the Indian Hotels Company Limited (IHCL) has rapidly expanded, now
operating over 250 hotels and signing 46 new deals in a single half-year period.

• Asset Diversification: To combat cyclical hospitality trends, developers are
increasingly diversifying into "smart" mid-market properties, alternative homestays
(like Airbnb), and mixed-use real estate.

Government & Digital Initiatives

• NIDHI Platform: The Ministry of Tourism is streamlining business operations via the
National Integrated Database of Hospitality Industry (NIDHI ), a national registry
designed to digitize the sector.

• Tourism Campaigns: Domestic and regional travel is heavily promoted through
government pushes like the Dekho Apna Desh campaign, while spiritual and heritage
tourism receives targeted infrastructure funding through the PRASHAD scheme.

4. MANAGEMENT DISCUSSION AND ANALYSISa) INDUSTRY STRUCTURE AND DEVELOPMENTS

The hospitality industry in India is a vital part of the country''s service sector and plays a
significant role in economic growth, employment generation, and tourism development. In
2026, the industry comprises several interconnected segments, including accommodation,
food and beverage services, travel and tourism, event management, and wellness tourism.
The accommodation sector includes luxury, upscale, mid-scale, budget, boutique hotels,
resorts, homestays, serviced apartments, and hostels, catering to diverse customer
preferences and budgets. The food and beverage segment consists of restaurants, cafes,
quick-service restaurants, catering services, cloud kitchens, and bars, while the travel and
tourism segment includes tour operators, travel agencies, online travel platforms, and
transport providers. The industry is further supported by the Meetings, Incentives,
Conferences, and Exhibitions (MICE) sector, wedding tourism, and wellness services such
as spa, yoga, Ayurveda, and medical tourism.

In 2026, the Indian hospitality industry continues to experience strong growth, driven
primarily by rising domestic tourism, increasing disposable incomes, improved
transportation infrastructure, and supportive government initiatives. Hotel chains are
expanding rapidly into Tier-II and Tier-III cities, where demand is rising due to better road
connectivity, regional airports, business activities, and religious tourism. The luxury and
premium hotel segments are also witnessing significant investment as travelers
increasingly seek high-quality accommodations and personalized experiences.
Experience-based hospitality, including heritage stays, eco-tourism, wellness retreats, and
destination dining, has become a major competitive advantage for hospitality providers. At
the same time, technology is transforming operations through mobile check-in, contactless
payments, artificial intelligence-powered customer service, smart room technologies, and
advanced hotel management systems that enhance operational efficiency and guest
satisfaction. Sustainability has also become a key focus, with hotels adopting energy-
efficient buildings, water conservation measures, waste management practices, and
renewable energy to reduce their environmental impact. Despite challenges such as skilled
workforce shortages, rising operating costs, and increasing competition from alternative
accommodation providers, the outlook for the Indian hospitality industry remains positive.
Continued investment, infrastructure development, digital transformation, and growing
demand for travel and tourism are expected to support sustainable growth and strengthen
India''s position as one of the world''s fastest-growing hospitality markets.

1. Contactless Technology

• Mobile check-in and check-out

• Digital room keys

• QR-code menus

• Contactless payments

• Self-service kiosks

2. Sustainable Hospitality

• Energy-efficient buildings

• Solar energy adoption

• Water conservation systems

• Plastic-free initiatives

• Waste reduction and recycling

• Green certifications

3. Wellness Tourism

• Spa and wellness programs

• Fitness facilities

• Healthy dining options

• Mental wellness retreats

• Medical and preventive wellness packages

4. Experience-Based Hospitality

Hotels increasingly focus on unique guest experiences through:

• Local cultural activities

• Personalized services

• Adventure tourism

• Culinary experiences

• Community engagement

5. Hybrid Hospitality Models
Properties increasingly combine:

• Hotels

• Co-working spaces

• Long-stay accommodation

• Residential units

• Wellness facilities

• Social spaces

6. Revenue Optimization
Hotels are using:

• Dynamic pricing

• Revenue management software

• Data analytics

• Customer segmentation

• Real-time demand forecasting

7. Human Resource Development

• Continuous employee training

• Digital skills development

• AI collaboration skills

• Employee wellness programs

• Flexible work arrangements .

8. Premium and Luxury Growth

Demand for luxury and premium travel continues to grow, with guests expecting highly
personalized services, exclusive experiences, and technology-enabled convenience.

b) OPPORTUNITIES AND THREATS

(i) Opportunities

The hospitality industry offers numerous opportunities for growth due to the continuous
expansion of global tourism, increasing business travel, and rising disposable
incomes. The adoption of advanced technologies such as Artificial Intelligence (AI),
mobile applications, online booking systems, contactless payments, and smart hotel
solutions has enhanced customer convenience and operational efficiency. Growing
awareness of environmental sustainability has created opportunities for eco-friendly
hotels and green tourism initiatives. The increasing popularity of wellness, medical,
and adventure tourism has encouraged hotels and resorts to develop specialized
services such as spas, fitness centers, and wellness retreats. The expansion of the
Meetings, Incentives, Conferences, and Exhibitions (MICE) sector has increased
demand for quality accommodation and event facilities. In addition, the growth of
boutique hotels, luxury resorts, cloud kitchens, food delivery services, and
personalized guest experiences has opened new business opportunities. The industry
also generates significant employment and entrepreneurship opportunities in hotel
management, food and beverage services, travel agencies, event management, and
tourism-related businesses.

(ii) Threats

Despite its growth potential, the hospitality industry faces several significant threats.
Economic instability, inflation, and recessions can reduce consumer spending on travel
and accommodation. Labor shortages and high employee turnover continue to
challenge service quality and operational efficiency. Rising costs of food, energy,
wages, and maintenance increase operating expenses and reduce profit margins. The
industry also faces intense competition from hotel chains, boutique properties,
vacation rentals, and online booking platforms. Cybersecurity threats, including data
breaches and online fraud, pose serious risks because hotels manage large volumes of
customer information. Health crises such as pandemics can severely disrupt travel and
tourism, while climate change and natural disasters can damage infrastructure and
discourage visitors. Additionally, rapidly changing customer expectations require
continuous investment in technology and service innovation. Hospitality businesses
must also comply with complex legal, environmental, health, safety, and data privacy
regulations, while political instability, terrorism, and travel restrictions can negatively
impact tourist arrivals and business performance. Overall, the industry''s long-term
success depends on its ability to adapt to these challenges while delivering high-
quality, sustainable, and customer-focused services.

War Impact on the Indian Hospitality Industry

The ongoing geopolitical conflicts in West Asia during 2026 have affected India''s
hospitality industry through higher travel costs, disrupted supply chains, and reduced
international travel. However, the sector has shown resilience due to strong domestic
tourism and continued investment in new destinations.

c) SEGMENT WISE PERFORMANCE

The Company has only one segment viz hoteliering. Accordingly, the performance is
furnished hereunder.

Total turnover for the year ended 31st March,2026 amounted to ? 1,06,27,49,069/-
increased by ?22,86,41,808 as compared to the previous year turnover of ?
83,41,07,261/. Total expenditure for the year ended 31st March 2026 amounted to
?92,09,27,621/-increased by ? 24,08,84,522/- as compared to the previous year. The
profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st
March,2026,amounted to? 23,86,10,884/-as against the profit of? 19,44,51,017/- over
the corresponding period last year. The deferred tax for the year ended 31st
March,2026 amounted to NIL. After accounting for taxes the Company reported a Profit
after Tax for FY 2025-26 of ? 12,81,66,246/-in comparison with a Profitof ?
13,24,15,863/- for FY 2024-25.

d) OUTLOOK

The Indian hospitality industry is expected to maintain strong growth in 2026, supported
by robust domestic tourism, increasing business travel, expansion of the MICE
(Meetings, Incentives, Conferences, and Exhibitions) segment, weddings, religious
tourism, and improving international tourist arrivals. Rising disposable incomes, better
road, rail, and air connectivity, and government investment in tourism infrastructure are
encouraging travel across metropolitan cities as well as Tier II and Tier III destinations.
Industry forecasts indicate that hotel occupancy is likely to remain around 72-74%,
while average room rates (ARR) and revenue per available room (RevPAR) are
expected to continue growing, reflecting healthy demand and disciplined pricing.

Luxury, premium, and boutique hotels are expected to perform particularly well,
supported by strong domestic demand and rising spending on leisure and experiential
travel. At the same time, branded hotel chains are expanding rapidly into emerging
cities, creating new investment and employment opportunities. Market studies also
project continued long-term growth for India''s hospitality market, driven by
urbanization, a growing middle class, and increased tourism demand.

Despite this positive outlook, the industry faces challenges such as rising operating
costs, skilled workforce shortages, cybersecurity risks, inflation, and global economic
uncertainties. However, continued investment in infrastructure, digital transformation,
sustainable tourism, and service excellence is expected to strengthen India''s position
as one of the world''s fastest-growing hospitality markets. Overall, the outlook for the
Indian hospitality industry in 2026 remains highly positive, with sustained growth
expected through innovation, expanding domestic travel, and increasing global
recognition of India as a leading tourism destination.

e) RISK AND CONCERNS

The Indian hospitality industry has a positive growth outlook in 2026, but it also faces
several risks and concerns that could affect its long-term performance. One of the
major challenges is the rise in operating costs, including expenses for energy, food,
employee salaries, maintenance, and utilities. Inflation and higher fuel prices can
increase travel and transportation costs, reducing profitability for hotels and
restaurants. Industry analysts also note that global energy price shocks and broader
economic uncertainty remain important risks for India.

Another significant concern is the shortage of skilled manpower. Many hotels continue
to face difficulties in recruiting and retaining qualified employees, leading to higher
labor costs and potential declines in service quality. High employee turnover and the
need for continuous training make workforce management a major challenge. At the
same time, hotels must invest in digital skills as technology becomes more integrated
into operations

The industry also faces increasing competition from new hotel developments, boutique
hotels, homestays, serviced apartments, and online accommodation platforms. To
remain competitive, businesses must continuously improve service quality, adopt new
technologies, and offer unique guest experiences. Cybersecurity is another growing
concern, as hotels rely heavily on digital booking systems and store sensitive customer
information, making them vulnerable to data breaches and cyberattacks.

In addition, hospitality businesses must comply with evolving environmental
regulations, taxation policies, labor laws, and health and safety standards. Meeting
sustainability goals while controlling costs requires significant investment in green
technologies and efficient operations. Despite these concerns, India''s hospitality
industry remains resilient, and organizations that focus on innovation, employee
development, digital transformation, sustainability, and customer satisfaction are
expected to be better positioned for sustainable growth in 2026.

1. Decline in Foreign Tourist Arrivals

2. Flight Disruptions and Higher Airfares

3. Rising Operating Costs

4. Supply Chain Disruptions

5. Business Travel and MICE Sector

6. Workforce Changes

f) INTERNAL CONTROL SYSTEMS AND ADEQUACY.

The hospitality industry operates in a highly dynamic environment involving
accommodation, food and beverage services, event management, and customer
service. As hotels and hospitality businesses handle significant cash transactions,
inventories, customer information, and operational activities, a strong internal control
system is essential to ensure efficient operations, safeguard assets, prevent fraud, and
maintain high service standards. Internal control systems consist of policies,
procedures, and monitoring mechanisms that help organizations achieve operational
efficiency, financial accuracy, regulatory compliance, and customer satisfaction.

In the hospitality industry, internal controls cover all major departments, including the
front office, housekeeping, food and beverage, purchasing, stores, finance, human
resources, and information technology. Financial controls ensure that revenue from
room bookings, restaurants, banquets, and other services is accurately recorded and
reconciled. Inventory controls monitor the purchase, storage, and usage of food,
beverages, linen, and other supplies to minimize waste, theft, and pilferage.
Procurement controls require proper authorization, vendor evaluation, and competitive
purchasing to ensure transparency and cost efficiency. Human resource controls
include employee background verification, payroll management, attendance
monitoring, and regular training. Information technology controls protect guest data,
online booking systems, and payment information through secure networks, access
controls, and cyber security measures.

The adequacy of the internal control system is assessed through regular internal
audits, management reviews, compliance checks, risk assessments, and continuous
monitoring of business operations. Hotels also use standard operating procedures
(SOPs), segregation of duties, approval hierarchies, surprise inspections, and
automated property management systems (PMS) to strengthen internal controls.
These measures help identify operational risks, improve service quality, ensure
compliance with legal and regulatory requirements, and enhance financial reporting.
Although no internal control system can completely eliminate all risks, an effective and
adequate system provides reasonable assurance that assets are protected, fraud is
minimized, operations are efficient, customer information remains secure, and
organizational objectives are achieved. In 2026, the growing adoption of digital
technologies, Artificial Intelligence (AI), cloud-based management systems, and real¬
time data analytics has further improved the effectiveness and adequacy of internal
control systems across the hospitality industry.

g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO
OPERATIONAL PERFORMANCE /BUSINESS PERFORMANCE.

Overall Income increased by Rs. 2286.41 from Rs. 8341.07 to Rs. 10627.49.

Occupancy increased by 3.5% from 80.5% to 84%.

h) MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS
FRONT.

Your company sincerely believes that its employees are its vital assets and hence in order to
keep its employees motivated and changed, your company provides them good
environment, so that they are able to leverage their full potential. The HR department
updates its HR polices, SOP practice and processes so as to enable and empower its
employees.

Your company provides the following welfare and HR activities to the company’s
employees. (APR’2025 - MAR’2026)

• Tamil new year celebration

• Iftar celebration

• Ganesh Chaturthi celebration

• Onam festival

• Diwali, Ayudha Pooja, Christmas, Navratri, Pongal are celebrated with staff

• Staff Day Celebration

• Pongal Vizha

• Staff children summer camp

• Food wastage awareness

• Effective Communication Training

• Transactional Analysis Training

• Parikshan Training & Fostac Catering training

• Inter-departmental Trainings

• Food Safety Training

• First aid class

• Safety and Fire Fighting awareness programmes for staff.

• Communication class for supervisory level

• Train the Trainer - Training program

• Personal and Professional Effectiveness training by Mr. Ravi Ramanathan

• Medical camp for all staff

• Common Staff Birthday celebration every month

• International Chef Day

• Christmas Carnival

By giving these schemes and training programmes, the employees become loyal to the
company and thereby the employee attrition rate is minimized. The overall attrition rate is
3%. Promotions and recognition awarding policies, training and development, skill program
are used as effective tools by HR for improving employee productivity

(I) KEY FINANCIAL RATIOS

Cautionary Statement

The information contained in the Management Discussion and Analysis regarding
Company''s estimates, expectations, projections, guidance are based on assumptions and
expectations of future events. The Company takes no responsibility on such statements
since the Company exercises no control over the events that takes place in future. The
actual results may differ from those expressed or implied. The Changes in the domestic and
global economic conditions and government regulations, tax laws and other statutes may
affect the hospitality industry.

5. FINANCIAL INFORMATION AND DETAILS OF ASSOCIATE COMPANY

The Financial Statement of the company is prepared in accordance with the Ind AS under
the provisions of the Companies Act, 2013 and forms part of the Annual Report. The
company''s financials disclose the assets, liabilities, income, expenses and other details.

The Company does not have any subsidiary, Joint Venture and associate Company.

During the year under review no Company has become ceased to be the Company''s
subsidiary, Joint Venture and associate Company.

6. Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies
(Accounts) Rules, 2014 containing salient features of the financial statement of
subsidiaries/associate companies/joint ventures-NOT APPLICABLE

7. FINANCIAL HIGHLIGHTS OF THE COMPANY

The financial highlights of the company for last 10 years are furnished in the Annual Report
in the first page.

8. HUMAN RESOURCES

The Management envisions trained and motivated employees as the backbone of the
Company. Special attention is given to recruit trained and experienced personnel in all
departments. The Management strives to retain and improve employee morale. The
Company has total staff strength of about 646 employees.

The Company has streamlined its manpower strength at the Hotel. As a result of manpower
rationalization exercise, the monthly payroll has been optimized. The decision for
rationalization of labour has enabled the company to curtail fixed manpower costs.
However, the core technical expert team is retained to guide the Company to achieve higher
and efficient level of performance.

9. DEPOSITORY SYSTEM / E-VOTING MECHANISM:

The Company has entered into a Tripartite Agreement with both the Depositories viz.
National Securities Depository Limited (NSDL) and Central Depository Services (I) Ltd
(CSDL) along with Registrars M/s Cameo Corporate Services Ltd, for providing electronic
connectivity for dematerialization on the Company''s shares facilitating the investors to hold
the shares in electronic form and trade in those shares. The shares of your Company are
being traded now on the BSE under compulsory demat form. Further, in accordance with
provisions stipulated under Companies Act, 2013, the facility of e-voting is also made
available to all shareholders of the Company. The instructions regarding e-voting is
enclosed along with this report. All shareholders are also requested to update their email ids
with the Company or our RTA M/s. Cameo Corporate Services Ltd. The Company has paid
the Annual Depository fees for the FY 2025-26.

10. INVESTOR EDUCATION & PROTECTION FUND

During the year under review unclaimed dividend of (Final&Interim) Rs. 6,15,216/- and
12742 number of shares were transferred to the Investor Education and Protection Fund
(IEPF).

Mr.R.Siddharth, Company Secretary of the company is appointed as Nodal Officer, as per
the provisions of Companies Act, 2013 relating to IEPf and the above details are available
in the official website of the company i.e. www.saverahotel.com.

11. DEPOSIT FROM PUBLIC

The Company has not accepted any fixed deposits under the provisions of the Companies
Act, 2013.

12. A disclosure, as to whether maintenance of cost records as specified by the Central
Government under sub-section (1) of section 148 of the Companies Act, 2013, is required
by the Company and accordingly such accounts and records are made and maintained -
NOT APPLICABLE.

13. DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors met Four (4) times during the year under review and the meeting
dates are on 23.05.2025, 11.08.2025, 08.11.2025, and 12.02.2026 during the financial year
2025-26.

CHANGES IN KMP’S DURING THE FINANCIAL YEAR

There were no Changes in Key Managerial Personnel during the Financial Year 2025-26.
The Key Managerial Personnel of the company presently are Mrs. A. Nina Reddy,
Managing Director, Mr. R.Siddharth, Company Secretary and Mr. CH Mahesh Kumar, Chief
Financial Officer.

CHANGES IN BOARD OF DIRECTORS

There were no Changes in Board of Directors during the Financial Year 2025-26.

Pursuant to the section 152 of the Companies Act, 2013, Mrs. A. Nivruti (DIN:00576167)
Executive Director, retires by rotation and is eligible for re-appointment. The Board has
recommended her re-appointment and accordingly resolution seeking approval of the
members for her re-appointment has been included in the notice of the 57th Annual General
Meeting of the company along with her brief profile.

14. DIRECTORS’ RESPONSIBILITY STATEMENT

On the basis of internal financial controls and systems relating to compliance maintained by

the company, work done by the internal, statutory and secretarial auditors, the reviews
performed by the management and the relevant Board Committees, including the Audit
Committee, the Board is of the opinion that the company''s internal financial controls were
adequate and effective during the financial year 2025-26.

Pursuant to Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, and based on the
representations received from the management, the directors hereby confirm that:

i. In the preparation of the Annual Accounts for the year 2025-26., the applicable
accounting standards have been followed and there are no material departures;

ii. They have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the company at the end of the financial year 31st
March,2026 and of the profit of the company for that period;

iii. They have taken proper and sufficient care to the best of their knowledge and ability for
the maintenance of adequate accounting records in accordance with the provisions of
the Act. They confirm that there are adequate systems and controls for safeguarding
the assets of the company and for preventing and detecting fraud and other
irregularities.

iv. They have prepared the annual accounts on a going concern basis;

v. They have laid down internal financial controls to be followed by the company and that
such internal financial controls are adequate and operating effectively;

vi. They have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.

15. INTERNAL FINANCIAL CONTROLS

The Company has internal financial controls commensurate with the size of the complexity
of the business operations and it has well defined internal audit functions. For the purpose
of independence, the internal audit dept. reports to Chairman of the Audit Committee and
the Board of Directors.

16. SECRETARIAL STANDARDS

The company has complied with the Secretarial Standards issued by Institute of Company
Secretaries India.

16.1. SECRETARIAL AUDITOR

M/s. M. Francis & Associates, Practising Company Secretaries have been appointed as the
Secretarial Auditor in the 56th AGM of the Company to carry out the Secretarial Audit for
the five consecutive years commencing from financial year 2025-26 till financial year 2029¬
30. The Secretarial Audit Report given by them shall form part of this report as Annexure I.

There are no qualifications, reservations or adverse remarks or disclaimers made by the
Secretarial Auditors in their Secretarial Audit report for the Financial Year 2025-26.

17. STATUTORY AUDITORS

In accordance with the provisions of Section 139 and 142 of the Companies Act, 2013, and
the rules framed there under, M/s. S.Venkatram & Co., LLP, Chartered Accountants, TTK
Road, Chennai - 600 018 were re-appointed as statutory auditors of the company for
second term of 5 years to hold the office from the conclusion of the 53rd Annual General
Meeting of the company held on 12.09.2022 till the conclusion of the 58th Annual General
Meeting(AGM) of the Company.

There are no qualifications, reservations or adverse remarks or disclaimers made by
the Statutory Auditors on the standalone financial statements in their report for the year
2025-26.

18. SIGNIFICANT AND MATERIAL ORDERS

There were no significant and material orders passed by the regulators or courts or tribunals
affecting the going concern status and future operations of the company during the year
under review.

19. INDEPENDENT DIRECTORS DECLARATION

Mr. S. Sundarraman, Dr.C. Palanivelu,and Mrs.Pujitha Reddy Kamineni,who are
independent directors, have submitted a declaration that each of them meets the criteria of
independence as provided in sub-section (6) of section 149 of the Companies Act 2013, and
are in compliance with Regulation 16 and 23 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. Further , there is no change in their status as
independent director during the financial year 2025-26.

20. TRANSACTIONS WITH THE RELATED PARTIES

All related party transactions that were entered into during the financial year were in
compliance with the applicable provisions of the Companies Act, 2013 and SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.

Further, all contracts or arrangements with related parties entered into during the financial
year ended 31-3-2026 were on arm''s length basis and in the ordinary course of business.

Therefore the particulars of contracts or arrangements with related parties as referred to in
sub-section (1) of section 188 of the Companies Act, 2013 are, is not applicable.

21. CORPORATE SOCIAL RESPONSIBILITY.

The CSR Policy of the company and the details about the initiatives taken by the company

on CSR during the year as per the Companies (Corporate Social Responsibility Policy)
Rules, 2014 have been disclosed in Annexure II to this Report. Further details of
composition of the Corporate Social Responsibility Committee and other details are
provided in Corporate Governance report. During the year under review, the CSR
Committee meetings were held on 23.05.2025, 11.08.2025, 08.11.2025 & 12.02.2026. The
said CSR Policy is available in the Company''s website.

22. NOMINATION AND REMUNERATION POLICY

The company''s policy on directors appointment and remuneration and other matters
provided in section 178(3) of the Companies Act, 2013 has been disclosed in the corporate
governance report, which forms part of the directors'' report.

23. COMMITTEES

Currently, the Board of Directors of the Company pursuant to the mandatory provisions of
Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 has the following committees were included namely:

a) Audit Committee

b) Nomination & Remuneration Committee

c) Stakeholders Relationship Committee

d) Corporate Social Responsibility Committee

e) Share Transfer Committee

f) Internal Complaints Committee

g) Investment Committee.

A detailed note on the Board and its committees along with the composition of the
committees and compliances is provided under the Corporate Governance Report section
in this Annual Report.

24. BOARD EVALUATION

The performance evaluation of the Board as a whole, performance of non independent
directors, the performance of the Board Chairman and the performance of committees were
conducted and the same based on the questionnaire and feed back from all directors on
the Board.

While undertaking the Board evaluation, the company also followed the required principles
covered under the Guidance note issued by SEBI.

Important key criteria for performance evaluation are as follows.

Directors performance evaluation

a) Attendance at Board or Committee Meetings

b) Contribution at Board or Committee Meetings

c) Guidance/support to management outside Board/Committee meetings.

d) Performance evaluation of Board and Committees

e) Structure of the Board and Board composition

f) Establishment and delineation of responsibilities to Committees.

g) Effectiveness of Board processes, information and functioning.

h) Board culture and dynamics

i) Quality of relationship between Board and management.

j) Efficacy of communication with external stakeholders.

25. LISTING

The equity shares of the Company are listed on BSE Ltd and the listing fees are regularly
paid by the company.

26. CORPORATE GOVERNANCE

In terms of Regulation 34 (2) & (3) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, a report on Corporate Governance, the Practicing
Company Secretary certificate on the compliance of conditions of Corporate Governance
and the report on Management Discussion and Analysis form part of the Annual Report.

27. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO.

The information required under Section 134 (3) (m) of the Act, read with the companies
(Accounts) Rules 2014 is furnished hereunder.

(A) CONSERVATION OF ENERGY

For the eco practices, the company has changed almost 99% of its lighting with LED lights
reducing power consumption by 85% and the heat emission energy becomes very low,
thereby through the STP, the sewerage and sewage water is treated and the treated water is
recirculated for flushing system ,cooling towers and gardens.

The company also installed rain water harvesting system for collecting the rain water.

The company also installed organic waste convertor machine in which the organic wastes
are converted into composite manure.

The company has fixed aerator in taps to save water the automatic tap in the guest toilet to
save water and also for good hygienepractices.

The Company always purchases equipments or machinery which consumes less power.

B) TECHNOLOGY ABSORPTION

Hotel being a service industry, technology absorption, transfer etc., are not applicable.The

Resilience of the company''s Backbone Systems consists of Servers, VPN and Many Tools
in company''s disposal made possible to successfully do the Day to Day Operations sailed
smoothly despite severe restrictions placed on movement of Staff during Lockdown period.

The company solemns pledged to exceed the expectations in every front serving the
company''s Valuable Clients Experience the Premium Ness as always.

(c) FOREIGN EXCHANGE EARNINGS AND OUTGO

The Foreign Exchange earned in terms of actual inflows during the year -Rs. 2,11,05,604/-
The Foreign Exchange outgo during the year in terms of actual outflows - Rs. 3,03,265/-

28. The Change in the nature of business, if any :

There is no change in nature of business.

29. Statement regarding opinion of the Board with regard to integrity, expertise and
experience (including the proficiency) of the independent directors appointed during the year.

The Non-executive Directors provide a strong independent element to the Board and a
solid foundation for good corporate governance, fulfilling the vital role of corporate
accountability. The board formally reviews the independence of each of our Non-executive
Directors at least annually. The board is of the opinion that each of the current Non¬
executive independent Directors continues to be independent in character and judgement
in line with the definition set out in the Code. In assessing each Director''s independence,
the Committee concluded that each provides objective challenge, strategic guidance, hold
management to account and is willing to stand up and defend their own beliefs.

30. DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The Company has in place an Anti-Sexual harassment Policy in line with the requirement of
The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal)
Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints
received regarding sexual harassment. All employees (permanent, contractual and
trainees ) are covered under this policy. The following is a summary of sexual harassment
complaints received and disposed off during the year 2025-26.

Number of complaint received during the year -NIL

Number of Complaint disposed of during the year - NIL

31. The details of application made or any proceeding pending under the Insolvency and
Bankruptcy Code, 2016.

No application under IBC was initiated by the Company as on March 31,2026. There was
no instance of one time settlement with any Bank or financial institutions.

32. ANNUAL RETURN

A copy of the Annual Return 2025-26 is placed on the website of the company and can be
accessed via weblink https://www.saverahotel.com.

33. PARTICULARS OF REMUNERATION

The information required under section 197(12) of the Act, read with rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is furnished in the
Annexure III to this report.

Your directors wish to place on record their appreciation for the good services rendered by
the employees at all levels of the company.

34. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER
SECTION 186 OF THE COMPANIES ACT, 2013.

The details of loans, guarantees and investments under section 186 of The Companies
Act, 2013 has been furnished in Annexure IV to this report.

35. TRANSFER TO RESERVES

The Company has not transferred any amount to the reserves for the year ended March 31,
2026.

36. DETAILS OF MATERIAL CHANGES FROM THE END OF FINANCIAL YEAR:

There have been no material changes and commitments affecting the financial position of
the Company between the end of the financial year and date of this report.

37. MATERNITY BENEFIT ACT 1961:

The Company is committed to providing a safe, inclusive and supportive work environment
for all employees, including women employees. The Company complies with the provisions
of the Maternity Benefit Act, 1961 and the rules framed thereunder, as amended from time to
time.

38. DETAILS IN RESPECT OF FRAUDS.

There are no frauds as reported by the Statutory Auditors in Sl. No 11 of Annexure ‘A'' to the
Independent Auditors Report.

GENERAL :

Your Directors state that no disclosure or reporting is required in respect of the following
items as there were no transactions on these items during the year under review.

(i) Issue of equity shares with differential rights as to dividend, voting or otherwise

(ii) Issue of shares (including sweat equity shares) to employees of the company under
any scheme.

ACKNOWLEDGEMENTS

The directors would like to thank the Bankers of the Company, and other financial
institutions for extending their financial support. They further express their thanks to the
Central Government, State Government and other stakeholders for their patronage,
support and guidance.

FOR AND ON BEHALF OF THE BOARD

CHENNAI A.Nina Reddy A.Tarun Reddy

8th August, 2026 Managing Director Executive Director

The Directors have pleasure in presenting the 56thAnnual Report of M/s. Savera Industries Ltd (the company), along with the audited financial statements under Ind AS for the financial year ended 31st March, 2025.

1. FINANCIAL RESULTS

The Financial Results of the Company for the year under review is summarized below for your perusal and consideration. (R_s. i_n l_akhs)

1.1 STATE OF COMPANY’S AFFAIRS

During the year under review the company achieved a turnover of ?83,41,07,261 against the corresponding previous year turnover of ?75,20,76,334. Total expenditure for the period ended as at 31stMarch, 2025 amounted to ? 68,00,43,099 increased by ? 6,15,96,458 as

compared to the previous year. The Profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st March, 2025 amounted to ?18,60,64,439 as against the profit of ?16,23,16,336 over the corresponding period last year. Deferred tax for the year ended 31st March, 2025 amounted to NIL. After accounting for taxes the Company reported a Profit after Tax for FY 2024-25 of ? 13,24,15,863 in comparison with a Profit of ? 10,30,48,487 for FY 2023-24. No amount was transferred to General Reserve during the year under review. The company has adopted Ind-AS from the financial year 2017-18.

2. DIVIDEND

The Board of Directors of the Company has recommended a dividend of Rs.3.00 per equity share for the financial year ended 31.03.2025 out of the profits of current financial year. The total outflow towards dividend will be Rs.3,57,84,000/-.

3. INDUSTRY OVERVIEW

The hospitality industry in India encompasses hotels, resorts, travel and tourism, restaurants, event management, and other related services. It is one of the largest contributors to India''s GDP and employment. With increasing disposable incomes, growing middle class, and government initiatives like "Dekho Apna Desh" and "Incredible India 2.0", the sector is poised for robust growth in 2025-26.

Market Size and Growth Forecast (2025-26)

Market Size (Expected):

?5.5 to ?6 lakh crore (~USD 65-70 billion)

CAGR (2023-2026):

~8% to 10%

Occupancy Rate Forecast:

Expected to reach 70-75% in metro and Tier 1 cities

Average Daily Rate (ADR):

Expected to grow 6-8% YoY due to demand revival

RevPAR (Revenue per Available Room):

On track to surpass pre-pandemic levels

The hospitality industry in India is poised for robust growth in 2025-26, driven by a surge in domestic tourism, infrastructure development, and increased digitalization. With rising disposable incomes and supportive government policies, the sector is projected to grow at a CAGR of 8-10% over the next two years. Demand for hotels, resorts, budget accommodations, and wellness tourism is rapidly increasing.

"The Indian hospitality sector is entering a golden era, powered by a convergence of strong

economic fundamentals, rising consumer aspirations, and digital transformation." Fueled by a growing middle class, increased domestic travel, and a thriving startup ecosystem, India''s hospitality industry is set to be one of the fastest-growing sectors in the economy."

"2025-26 is poised to be a breakout period for Indian hospitality, with record-high occupancy rates, robust room demand, and unprecedented infrastructure investments." "India is rapidly evolving from a value-driven to an experience-driven hospitality market, unlocking massive opportunities across luxury, budget, medical, and eco-tourism segments." "Strategic policy support, combined with private sector innovation, is turning India into a global tourism powerhouse and a hotspot for hospitality investment." "The industry''s momentum is clear—India is no longer catching up; it is now setting benchmarks in hospitality growth across emerging markets."

India''s hospitality industry stands at a promising inflection point. With favorable government policies, changing travel behaviors, and increasing focus on digital and sustainable models, the industry is set to thrive in 2025-26. Companies that adapt to tech innovations and customer-centric models will lead the next phase of growth.

4. MANAGEMENT DISCUSSION AND ANALYSIS

a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The hospitality industry in India has evolved into a dynamic and multi-segmented sector, encompassing accommodation services, food and beverage (F&B) operations, travel and tourism support, and allied wellness and leisure services. The industry structure includes luxury hotels, midscale and budget accommodations, boutique stays, serviced apartments, homestays, and new-age platforms like Airbnb. Alongside, food services—from high-end dining to quick service restaurants and cloud kitchens—have become a vital part of the value chain. Supporting segments such as online travel agencies, medical tourism, MICE (Meetings, Incentives, Conferences, and Exhibitions), and wellness retreats also contribute significantly to the ecosystem. Recent years have seen a strong post-pandemic recovery, with occupancy rates and revenue metrics exceeding pre-COVID benchmarks in key markets. Budget and midscale chains have expanded aggressively into Tier 2 and Tier 3 cities, driven by franchise models and rising domestic travel. Simultaneously, technology adoption—such as contactless check-ins, AI-driven pricing, and app-based services—has transformed customer experience and operational efficiency. The rise of wellness tourism, destination weddings, and sustainable hospitality practices has opened up new growth avenues. Backed by robust government policies, 100% FDI allowance, and improved infrastructure under schemes like Swadesh Darshan and Dekho Apna Desh, the Indian hospitality sector is on a strong growth trajectory. These developments signal a positive outlook for shareholders, with opportunities to unlock value through strategic expansion, digital investments, andasset-lightbusinessmodels.

b) OPPORTUNITIES AND THREATS

(i) Opportunities

The Indian hospitality industry presents a wealth of opportunities that position it as a high-potential sector for investors and shareholders. With rising disposable incomes, a young and travel-savvy population, and strong government backing, there is a consistent surge in domestic and inbound tourism. Rapid urbanization, improved air and road connectivity, and the growth of Tier 2 and Tier 3 cities offer untapped markets for hotel expansion.

The increasing popularity of medical and wellness tourism, experiential stays, and digital-first travel services has opened new revenue streams for hospitality companies. Additionally, the rise in corporate travel, MICE events, and destination weddings provides opportunities to enhance average revenue per customer.

(ii) Threats

However, the industry is not without challenges. Operational costs are rising due to inflation and high compliance burdens. The sector faces a shortage of skilled manpower and growing competition from unregulated platforms like homestays and short-term rentals (e.g., Airbnb). External threats such as geopolitical tensions, public health emergencies, or fluctuating foreign exchange rates can directly impact travel sentiment and business volumes. Moreover, evolving consumer expectations require continuous investment in technology, sustainability, and service quality.

Despite these threats, the long-term outlook remains positive, and with prudent risk management and strategic positioning, the hospitality sector offers shareholders a strong potential for value creation and sustained growth.

c) SEGMENT WISE PERFORMANCE

The Company has only one segment viz hoteliering. Accordingly the performance is furnished hereunder.

Total turnover for the year ended 31st March,2025 amounted to ? 83,41,07,261 increased by ? 8,20,30,927 as compared to the previous year turnover of ? 75,20,76,334. Total expenditure for the year ended 31st March 2025 amounted to ? 68,00,43,099 increased by ? 6,15,96,458 as compared to the previous year. The profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st March,2025,amounted to?18,60,64,439 as against the profit of? 16,23,16,336 over the corresponding period last year. The deferred tax for the year ended 31st March,2025 amounted to NIL. After accounting for taxes the Company reported a Profit after Tax for FY 2024-25 of ? 13,24,15,863 in comparison with a Profitof ? 10,30,48,487 for FY 2023-24.

d) OUTLOOK

The outlook for the Indian hospitality industry over the next few years is highly optimistic,

driven by a confluence of economic, demographic, and policy tailwinds. The sector is expected to continue its robust growth trajectory, with projected annual growth rates of 8-10% through FY 2025-26. Strong domestic demand, coupled with a gradual resurgence in foreign tourist arrivals, is expected to fuel occupancy and revenue per available room (RevPAR) across segments.

The shift in consumer preferences toward experiential, wellness, and sustainable travel is reshaping service offerings, creating space for innovation and premiumization. At the same time, rapid digital transformation—through Al-based booking platforms, contactless checkins, and personalized customer experiences—is enhancing operational efficiency and guest satisfaction.

Government initiatives such as Swadesh Darshan, PRASAD, and 100% FDI in tourism infrastructure are reinforcing the investment climate, particularly in Tier 2 and Tier 3 cities. Despite global uncertainties, India''s hospitality sector is well-positioned to emerge as one of the fastest-growing markets globally, offering shareholders long-term stability, rising profitability, and a strong runway for expansion.

e) RISK AND CONCERNS

While the Indian hospitality industry offers significant growth potential, it is also subject to a range of risks and operational concerns that shareholders should be aware of. The sector remains highly sensitive to external shocks such as geopolitical instability, pandemics, natural disasters, and global economic downturns, all of which can abruptly affect travel sentiment and occupancy levels. Inflationary pressures, including rising energy costs, wages, and input prices, continue to strain operating margins. Regulatory compliance, especially related to environmental norms, tax laws, and safety standards, adds to operational complexity, particularly for multi-property chains.

Additionally, competition is intensifying due to the rise of unregulated accommodation platforms like short-stay rentals (e.g., Airbnb), putting pricing pressure on traditional players. Talent shortages and high attrition rates, especially in service and culinary roles, also hinder scalability and service consistency. The increasing dependency on digital platforms exposes operators to cyber risks and demands constant investment in technology.

Lastly, while Tier 2 and Tier 3 cities offer expansion opportunities, limited infrastructure and inconsistent demand patterns may pose challenges. Addressing these risks through robust governance, proactive risk management, and a flexible operating model is crucial for sustaining long-term shareholder value.

f) INTERNAL CONTROL SYSTEMS AND ADEQUACY.

The hospitality industry operates in a high-touch, service-intensive environment, requiring strong internal control systems to ensure operational efficiency, compliance, and financial integrity. Well-designed internal controls are essential to manage the diverse revenue streams—such as room bookings, food and beverage services, banquets, and ancillary operations—while safeguarding against fraud, pilferage, and leakage.

Leading hospitality players in India have implemented structured internal audit mechanisms, automated point-of-sale (POS) systems, inventory management tools, and cash-flow monitoring processes to enhance accountability and transparency. Many operators also utilize ERP and cloud-based hotel management platforms to track real-time data across multiple locations. Internal control frameworks are regularly reviewed by management and independent audit committees to ensure adequacy in light of changing business conditions, technology adoption, and regulatory requirements.

Furthermore, emphasis is placed on data security, cybersecurity protocols, guest privacy compliance, and procurement discipline. As the sector grows more complex, maintaining robust and scalable internal control systems remains a priority to uphold stakeholder trust, ensure financial accuracy, and support long-term sustainable growth.

g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE / BUSINESS PERFORMANCE

Overall Income increased by Rs. 820.31from Rs.7520.76 to Rs8341.07.

Occupancy increased by 3.7% from 76.8% to 80.5%.

h) MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT.

Your company sincerely believes that its employees are its vital assets and hence in order to keep its employees motivated and changed, your company provides them good environment, so that they are able to leverage their full potential. The HR department updates its HR polices, SOP practice and processes so as to enable and empower its employees.

Your company provides the following welfare and HR activities to the company’s employees. (APR’2024 - MAR’2025

• Food wastage awareness

• first aid class

• Iftar celebration

• Tamil new year celebration

• Ganesh Chaturthi celebrations

• Onam festival

• Excellence leadership training

• communication class for supervisory level

• Medical camp for staff

• Diwali, Ayudha Pooja, Christmas, Navratri, Ramar pooja Ayodhi, Pongal, are celebrated with staff

• Common Staff Birthday celebration every month

• Manager Express training by Vasanth

• International Chef day

• Medical camp - Eye check up, Diabtes, BP, ECG

• Cooking Competition

• Christmas Carol Singing - Kids Carnival

• Leadership training - Management development training MDP

• Staff children summer camp

• Pongal Traditional Games (PaarampariyaVilayattukal)

• Safety and Fire Fighting awareness programmes for staff.

• Woman''s day celebration

By giving these schemes and training programmes, the employees become loyal to the company and thereby the employee attrition rate is minimized. The overall attrition rate is 2.7%.Promotions and recognition awarding policies, training and development, skill program are used as effective tools by HR for improving employee productivity.

Cautionary Statement

The information contained in the Management Discussion and Analysis regarding Company''s estimates, expectations, projections, guidance are based on assumptions and expectations of future events. The Company takes no responsibility on such statements since the Company exercises no control over the events that takes place in future. The actual results may differ from those expressed or implied. The Changes in the domestic and global economic conditions and government regulations, tax laws and other statutes may affect the hospitality industry.

5. FINANCIAL INFORMATION AND DETAILS OF ASSOCIATE COMPANY

The Financial Statement of the company is prepared in accordance with the Ind AS under the provisions of the Companies Act, 2013 and forms part of the Annual Report. The company''s financials disclose the assets, liabilities, income, expenses and other details.

The Company does not have any subsidiary, Joint Venture and associate Company.

During the year under review no Company has become ceased to be the Company''s subsidiary, Joint Venture and associate Company.

6. Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014 containing salient features of the financial statement of subsidiaries/associate companies/joint ventures-NOT APPLICABLE

7. FINANCIAL HIGHLIGHTS OF THE COMPANY

The financial highlights of the company for last 10 years are furnished in the Annual Report in the first page.

8. HUMAN RESOURCES

The Management envisions trained and motivated employees as the backbone of the Company. Special attention is given to recruit trained and experienced personnel in all departments. The Management strives to retain and improve employee morale. The Company has total staff strength of about 475 employees.

The Company has streamlined its manpower strength at the Hotel. As a result of manpower rationalization exercise, the monthly payroll has been optimized. The decision for rationalization of labour has enabled the company to curtail fixed manpower costs. However, the core technical expert team is retained to guide the Company to achieve higher and efficient level of performance.

9. DEPOSITORY SYSTEM / E-VOTING MECHANISM:

The Company has entered into a Tripartite Agreement with both the Depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (I) Ltd (CSDL) along with Registrars M/s Cameo Corporate Services Ltd, for providing electronic connectivity for dematerialization on the Company''s shares facilitating the investors to hold the shares in electronic form and trade in those shares. The shares of your Company are being traded now on the BSE under compulsory demat form. Further, in accordance with provisions stipulated under Companies Act, 2013, the facility of e-voting is also made available to all shareholders of the Company. The instructions regarding e-voting is enclosed along with this report. All shareholders are also requested to update their email ids with the Company or our RTA M/s. Cameo Corporate Services Ltd. The Company has paid the Annual Depository fees for the FY 2024-25.

10. INVESTOR EDUCATION & PROTECTION FUND

During the year under review unclaimed dividend of (Interim & Final) Rs. 8,16,526/- and 18422 number of shares were transferred to the Investor Education and Protection Fund (IEPF).

Mr.R.Siddharth, Company Secretary of the company is appointed as Nodal Officer, as per the provisions of Companies Act, 2013 relating to IEPF and the above details are available in the official website of the company i.e. www.saverahotel.com.

11. DEPOSIT FROM PUBLIC

The Company has not accepted any fixed deposits under the provisions of the Companies Act, 2013.

12. A disclosure, as to whether maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained - NOT APPLICABLE.

13. DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors met Seven (7) times during the year under review and the meeting dates are on 29.05.2024, 09.08.2024, 16.09.2024, 09.11.2024, 18.12.2024, 05.02.2025 and 20.03.2025 during the financial year 2024-25.

CHANGES IN KMP’S DURING THE FINANCIAL YEAR

There were no Changes in Key Managerial Personnel during the Financial Year 2024-25. The Key Managerial Personnel of the company presently are Mrs. A. Nina Reddy, Managing Director, Mr. R.Siddharth, Company Secretary and Mr. CH Mahesh Kumar, Chief Financial Officer.

CHANGES IN BOARD OF DIRECTORS

During the Financial Year 2024-25, the following appointments and Cessation of the Board has taken place:

*Mr.A.Sudhakar Reddy (DIN:01898228) Independent Director, resigned from the board w.e.f 21/09/2024 due to completion of second term of five years.

Pursuant to the section 152 of the Companies Act, 2013, Mr.A.Tarun Reddy (DIN:01521977) Executive Director, retires by rotation and is eligible for re-appointment. The Board has recommended his re-appointment and accordingly resolution seeking approval of the members for his re-appointment has been included in the notice of the 56th Annual General Meeting of the company along with his brief profile.

14. DIRECTORS’ RESPONSIBILITY STATEMENT

On the basis of internal financial controls and systems relating to compliance maintained by the company, work done by the internal, statutory and secretarial auditors, the reviews performed by the management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the company''s internal financial controls were adequate and effective during the financial year 2024-25.

Pursuant to Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, and based on the representations received from the management, the directors hereby confirm that:

i. In the preparation of the Annual Accounts for the year 2024-25., the applicable accounting standards have been followed and there are no material departures;

ii. They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year 31st March,2025 and of the profit of the company for that period;

iii. They have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act. They confirm that there are adequate systems and controls

for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

iv. They have prepared the annual accounts on a going concern basis;

v. They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating effectively;

vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

15. INTERNAL FINANCIAL CONTROLS

The Company has internal financial controls commensurate with the size of the complexity of the business operations and it has well defined internal audit functions. For the purpose of independence, the internal audit dept. reports to Chairman of the Audit Committee and the Board of Directors.

16. SECRETARIAL STANDARDS

The company has complied with the Secretarial Standards issued by Institute of Company Secretaries India.

16.1. SECRETARIAL AUDITOR

M/s. M. Francis & Associates, Practising Company Secretaries have been appointed as the Secretarial Auditor to carry out the Secretarial Audit for the year 2024-25. The Secretarial Audit Report given by them shall form part of this report as Annexure I.

There are no qualifications, reservations or adverse remarks or disclaimers made by the Secretarial Auditors in their Secretarial Audit report for the Financial Year 2024-25.

17. STATUTORY AUDITORS

In accordance with the provisions of Section 139 and 142 of the Companies Act, 2013, and the rules framed there under, M/s. S.Venkatram & Co., LLP, Chartered Accountants, TTK Road, Chennai - 600 018 were re-appointed as statutory auditors of the company for second term of 5 years to hold the office from the conclusion of the 53rdAnnual General Meeting of the company held on 12.09.2022 till the conclusion of the 58th Annual General Meeting(AGM) of the Company.

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors on the standalone financial statements in their report for the year 2024-25.

18. SIGNIFICANT AND MATERIAL ORDERS

There were no significant and material orders passed by the regulators or courts or tribunals affecting the going concern status and future operations of the company during the year under review.

19. INDEPENDENT DIRECTORS DECLARATION

Mr. S. Sundarraman, Dr.C. Palanivelu, and Mrs.Pujitha Reddy Kamineni, who are independent directors, have submitted a declaration that each of them meets the criteria of independence as provided in sub-section (6) of section 149 of the Companies Act 2013, and are in compliance with Regulation 16 and 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further , there is no change in their status as independent director during the year.

20. TRANSACTIONS WITH THE RELATED PARTIES

All related party transactions that were entered into during the financial year were in compliance with the applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Further, all contracts or arrangements with related parties entered into during the financial year ended 31-3-2025 were on arm''s length basis and in the ordinary course of business.

Therefore the particulars of contracts or arrangements with related parties as referred to in sub-section (1) of section 188 of the Companies Act, 2013 are, is not applicable.

21. CORPORATE SOCIAL RESPONSIBILITY.

The CSR Policy of the company and the details about the initiatives taken by the company on CSR during the year as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 have been disclosed in Annexure II to this Report. Further details of composition of the Corporate Social Responsibility Committee and other details are provided in Corporate Governance report. During the year under review, the CSR Committee meetings were held on 29.05.2024, 09.08.2024 & 05.02.2025.. The said CSR Policy is available in the Company''s website.

22. NOMINATION AND REMUNERATION POLICY

The company''s policy on directors appointment and remuneration and other matters provided in section 178(3) of the Companies Act, 2013 has been disclosed in the corporate governance report, which forms part of the directors'' report.

23. COMMITTEES

Currently, the Board of Directors of the Company pursuant to the mandatory provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has the following committees were included namely:

a) Audit Committee

b) Nomination & Remuneration Committee

c) Stakeholders Relationship Committee

d) Corporate Social Responsibility Committee

e) Share Transfer Committee

f) Internal Complaints Committee

g) Investment Committee.

A detailed note on the Board and its committees along with the composition of the committees and compliances is provided under the Corporate Governance Report section in this Annual Report.

24 BOARD EVALUATION

The performance evaluation of the Board as a whole, performance of non independent directors, the performance of the Board Chairman and the performance of committees were conducted and the same based on the questionnaire and feed back from all directors on the Board.

While undertaking the Board evaluation, the company also followed the required principles covered under the Guidance note issued by SEBI.

Important key criteria for performance evaluation are as follows.

Directors performance evaluation

a) Attendance at Board or Committee Meetings

b) Contribution at Board or Committee Meetings

c) Guidance/support to management outside Board/Committee meetings.

d) Performance evaluation of Board and Committees

e) Structure of the Board and Board composition

f) Establishment and delineation of responsibilities to Committees.

g) Effectiveness of Board processes, information and functioning.

h) Board culture and dynamics

i) Quality of relationship between Board and management.

j) Efficacy of communication with external stakeholders.

25. LISTING

The equity shares of the Company are listed on BSE Ltd and the listing fees are regularly paid by the company.

26. CORPORATE GOVERNANCE

In terms of Regulation 34 (2) & (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a report on Corporate Governance, the Practicing Company Secretary certificate on the compliance of conditions of Corporate Governance and the report on Management Discussion and Analysis form part of the Annual Report.

27. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

The information required under Section 134 (3) (m) of the Act, read with the companies (Accounts) Rules 2014 is furnished hereunder.

(A) CONSERVATION OF ENERGY

For the eco practices, the company has changed almost 99% of its lighting with LED lights reducing power consumption by 85% and the heat emission energy becomes very low, thereby through the STP, the sewerage and sewage water is treated and the treated water is recirculated for flushing system ,cooling towers and gardens.

The company also installed rain water harvesting system for collecting the rain water.

The company also installed organic waste convertor machine in which the organic wastes are converted into composite manure.

The company has fixed aerator in taps to save water the automatic tap in the guest toilet to save water and also for good hygiene practices.

The Company always purchases equipments or machinery which consumes less power.

B) TECHNOLOGY ABSORPTION

Hotel being a service industry, technology absorption, transfer etc., are not applicable. The Resilience of the company''s Backbone Systems consists of Servers, VPN and Many Tools in company''s disposal made possible to successfully do the Day to Day Operations sailed smoothly despite severe restrictions placed on movement of Staff during Lockdown period.

The company solemns pledged to exceed the expectations in every front serving the company''s Valuable Clients Experience the Premium Ness as always.

(c) FOREIGN EXCHANGE EARNINGS AND OUTGO

The Foreign Exchange earned in terms of actual inflows during the year - Rs. 3,62,05,349.93

The Foreign Exchange outgo during the year in terms of actual outflows - Rs. 2,95,000

28. The Change in the nature of business, if any :

There is no change in nature of business.

29. Statement regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year.

The Non-executive Directors provide a strong independent element to the Board and a solid foundation for good corporate governance, fulfilling the vital role of corporate accountability. The board formally reviews the independence of each of our Nonexecutive Directors at least annually. The board is of the opinion that each of the current Non-executive independent Directors continues to be independent in character and judgement in line with the definition set out in the Code. In assessing each Director''s independence, the Committee concluded that each provides objective challenge, strategic guidance, hold management to account and is willing to stand up and defend their own beliefs.

Mrs.Pujitha Reddy Kamineni (DIN: 10704998) has been appointed to the board as Non Executive Independent Director w.e.f. 09.08.2024 during the financial year 2024-25.

30. DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The Company has in place an Anti-Sexual harassment Policy in line with the requirement of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual and trainees ) are covered under this policy. The following is a summary of sexual harassment complaints received and disposed off during the year 2024-25.

Number of complaint received during the year - NIL

Number of Complaint disposed of during the year - NIL

31. The details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.

No application under IBC was initiated by the Company as on March 31,2025. There was no instance of one time settlement with any Bank or financial institutions.

32. ANNUAL RETURN

A copy of the Annual Return 2024-25 is placed on the website of the company and can be accessed via weblink https://www.saverahotel.com.

33. PARTICULARS OF REMUNERATION

The information required under section 197(12) of the Act, read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is furnished in the Annexure III to this report.

Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company.

34. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013.

The details of loans, guarantees and investments under section 186 of The Companies Act, 2013 has been furnished in Annexure IV to this report.

35. TRANSFER TO RESERVES

The Company has not transferred any amount to the reserves for the year ended March 31,2025.

36. DETAILS OF MATERIAL CHANGES FROM THE END OF FINANCIAL YEAR:

There have been no material changes and commitments affecting the financial position of the Company between the end of the financial year and date of this report.

37. DETAILS IN RESPECT OF FRAUDS.

There are no frauds as reported by the Statutory Auditors in Sl. No 11 of Annexure ‘A'' to the Independent Auditors Report.

GENERAL :

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.

(i) Issue of equity shares with differential rights as to dividend, voting or otherwise

(ii) Issue of shares (including sweat equity shares) to employees of the company under any scheme.

ACKNOWLEDGEMENTS

The directors would like to thank the Bankers of the Company, and other financial institutions for extending their financial support. They further express their thanks to the Central Government, State Government and other stakeholders for their patronage, support and guidance.

1.1 STATE OF COMPANY’S AFFAIRS

During the year under review the company achieved a turnover of '' 7,520.76 against the corresponding previous year turnover of ''6,288.01. Total expenditure for the period ended as at 31stMarch, 2024 amounted to '' 6,184.46 increased by ''1,169.38 as compared to the

previous year. The Profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st March,2024 amounted to ''1,623.17 as against the profit of '' 1,522.77 over the corresponding period last year. Deferred tax for the year ended 31st March, 2024 amounted to NIL. After accounting for taxes the Company reported a Profit after Tax for FY 2023-24 of '' 1,030.49 in comparison with a profit of '' 1,247.15 for FY 2022-23. No amount was transferred to General Reserve during the year under review. The company has adopted Ind-AS from the financial year 2017-18.

2. DIVIDEND

The Board of Directors of the Company has recommended a dividend of Rs.3.00 per equity share for the financial year ended 31.03.2024 out of the profits of current financial year. The total outflow towards dividend will be Rs.3,57,84,000/-.

3. HOSPITALITY INDUSTRY IN INDIA - GROWTH, TRENDS AND FORECASTS (2024-29)

The Hospitality Market in India is Experiencing Growth Due To the Country''s Rich Culture and Diversity, Attracting Global Guests. The Service Sector, Known for Spiritual Tourism, Has Seen A Rise in Domestic Travel, Driven by A Growing Middle Class and Increased Disposable Income. The Hotel Industry is Expanding With New Projects From International Chains, Driven by Increased Travel and Government Efforts To Boost Tourism.

India Hospitality Market Analysis

The Hospitality Industry In India Market size is estimated at USD 247.31 billion in 2024, and is expected to reach uSd 475.37 billion by 2029, growing at a CAGR of 13.96% during the forecast period (2024-2029).

India has been successful as a leading global destination for leisure and business travelers, which has undoubtedly positively impacted the country''s hospitality sector.

India''s attractiveness as a global travel destination has been further enhanced by its geopolitical stability, world-class infrastructure, and commitment to hosting international events. Therefore, these factors contribute to the growth of the tourism industry and, as a result, keep the hospitality industry firm.

India''s domestic tourism has shown remarkable resilience and strength, and an increasing preference for staycations among Indian residents has been noticed. This preference for staycation is driven by several factors, including convenience, safety, and the opportunity to discover hidden gems within India.

The growth rate of the hospitality and tourism sector has seen a notable increase. India is included in the list of the top 100 countries with favorable conditions for conducting business (EoDB) and holds the first globally regarding greenfield FDI ranking. To enhance the cruise tourism industry, the Government of India (GoI) has chosen to develop the Chennai, Goa,

Kochi, Mangalore, and Mumbai ports as cruise tourism hubs. These ports will have various amenities such as hospitality services, retail outlets, shopping centers, and restaurants.

India Hospitality Market Trends

Increase in the Number of Hotel Projects is Driving the Market

India''s hospitality sector has experienced a notable boost due to the surge in hotel projects. The industry saw an increase in occupancy rates ranging from 60-67% compared to the previous year. Despite this, average rates (ARR) have fully recovered, showing a significant rise of 37-39 % from the prior year. Consequently, Revenue per Available Room (RevPAR) has seen a remarkable growth of 89-91% in the current year compared to the previous year. Driven by a robust rebound in demand, hotel companies have expedited their expansion strategies this year, leading to a more than 35% increase in brand signings by keys compared to the previous year. According to the Top Hotel Projects construction database, India is set to welcome 48l projects with 57,879 rooms. Hoteliers have been expanding their presence in leisure destinations and Tier-3 and -4 cities, acknowledging the vast untapped potential in these regions.

Moreover, during India''s G20 presidency until November 2023, over 200 G20 meetings were held in 55 different locations nationwide. This significantly benefited the Indian hotel sector, as there was a notable increase in demand for hotels in the cities hosting these meetings.

4. MANAGEMENT DISCUSSION AND ANALYSIS

a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian hospitality industry is primarily fueled by strong domestic demand and the Indian government''s renewed focus on expanding the tourism sector. Recognizing the sector''s potential as a major employment generator, the government actively promotes it through public-private partnerships and a mission-oriented approach involving all stakeholders. The government plans to revive 50 additional airports, heliports, and water aerodromes to enhance regional air connectivity. It also aims to develop fifty tourism destinations as comprehensive packages for domestic and international tourists. The government''s continued emphasis on infrastructure development, including significant railways and last-mile connectivity investments, is expected to benefit the sector.

Marketing strategies:

We all talk about the elusive guest experience but few understand that the guest experience starts long before check-in. Hotel guests may even start their journey on a channel you can''t control. Perhaps they saw your property on an influencer''s Instagram then searched Google and landed on an OTA. Love ‘em or hate ‘em, third-party channels are an essential part of the hotel marketing landscape. While some hoteliers begrudge third-party channels

for charging commissions and eating away at potential direct bookings, there''s no denying that these channels bring massive marketing power and a global user base. It would be nearly impossible for an individual hotel to get the same reach alone, so mastering marketing on third-party channels, like the OTAs, metasearch, and the GDS, is a necessity.

No matter where your reservations come from, guests need to trust that your hotel will deliver a good value and experience. Reputation management is the practice of actively building up that trust - whether by displaying your hotel star ratings or by responding to guest reviews on sites like Tripadvisor and Google.

Though third-party channels play an important role in the hotel marketing space, let''s not forget about your own direct channels. Your hotel''s website and email communication are both excellent ways to spread brand awareness, gain loyalty, and potentially even raise your RevPAR by increasing direct bookings. What do you need to know to boost your hotel''s owned channels.

Driving your hotel website’s performance is possible when you focus on four key categories:

0 Website design 0 Conversion optimization 0 SEO (Search Engine Optimization)

0 Content marketing

b) OPPORTUNITIES AND THREATS (i) Opportunities

Dec 21 Pandemic blues over, domestic travel unleashed and with global events like India''s G20 Presidency and men''s cricket World Cup turning up the volume in 2023, the hospitality sector will check into 2024 with optimism that it will be an unending party to tap the huge opportunity in an underserved market. As the hospitality industry uncorks the champagne for the new year after having witnessed new highs in occupancy and room tariffs not just in metros but also in smaller cities and towns, it, however, is wary that issues such as long term funding accessibility, high GST rates, talent acquisition and complex business processes could spoil the party.

"In 2023, listed hotel companies reported a double-digit revenue growth enabled by domestic demand, recovery in foreign tourist arrivals, large global events, including India''s presidency of G20 and the sporting events like the cricket World Cup, among others.

A remarkable resurgence in tourism, fuelled by domestic travel and the gradual return of international visitors. The industry''s evolution post-pandemic has set the tone for any eventualities that the future may bring. This positive momentum propels us forward, painting a future brimming with opportunities."

The commencement of 2023 brought a positive shift for the tourism and hospitality sector,

marking a welcome change from the challenges of the past two years, and added that air traffic crossed new milestones in daily numbers, domestic reached 4.63 lakhs and international crossed 1 lakh passengers.

(ii) Threats

The exponential rise in prices challenges the hospitality industry two-fold. First, from a consumer perspective, where the public has less money to spend eating or drinking out, then also for their businesses'' own rising costs, which we will explore further in the following section.

After two years of pandemic-impacted trade, recent trends indicate that consumers are returning to hospitality in promising numbers. However, the recent findings show that consumer confidence remains relatively low throughout 2023, with customers seeing decreased discretionary spending and re-evaluating eating out, so the road to recovery for the hospitality industry still poses potential challenges into 2024.

The climate-crisis is at the forefront of the public''s mind and conversation.

In 2023, hospitality and travel businesses must not just be conscious of their environmental impact due to the financial implications of rising energy costs, but also of consumer expectations and behaviour too.

In Booking.com''s Sustainability Report, it was found that 83% of global travellers value sustainability as something vital. This is a growing trend in the industry and a challenge that hospitality and travel businesses will continue to face for the foreseeable future.

c) SEGMENT WISE PERFORMANCE

The Company has only one segment viz hoteliering. Accordingly the performance is furnished hereunder.

Total turnover for the year ended 31st March,2024 amounted to '' 7,520.76 increased by '' 1,232.75 as compared to the previous year turnover of '' 6,288.01. Total expenditure for the year ended 31st March 2024 amounted to '' 6,184.46 increased by '' 1,169.38 as compared to the previous year. The profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st March,2024,amounted to '' 1,623.17 as against the profit of ''1,522.77 over the corresponding period last year. The deferred tax for the year ended 31st March,2024 amounted to NIL. After accounting for taxes the Company reported a Profit after Tax for FY 2023-24 of '' 1,030.49 in comparison with a profit of '' 1,247.15 for FY 2022-23.

d) OUTLOOK

The year 2024 presents an exciting landscape for the hospitality industry where technology, sustainability, adaptability, experience, and well-being converge to redefine guest expectations.The hospitality industry has always been at the forefront of adapting to evolving trends and catering to customer preferences. From advanced reservation systems to personalised guest experiences, technological advancements have played a crucial role in shaping the way hotels, resorts, and other hospitality businesses provide their services. In this dynamic sector, staying ahead means understanding the trends that are defining its trajectory.

The hospitality sector in India faced several challenges due to the COVID-19 pandemic, impacting travel, accommodation, and other related services. By the latter half of 2021, the sector had witnessed signs of recovery with increased domestic travel demand.

In conclusion, the hospitality industry''s outlook for FY 2024 promises a tapestry of innovation, sustainability, culinary delights, flexible travel trends, wellneess prioritisation, personalised services through data-driven insights, AI and robotics integration, social media as an engagement catalyst, and the groundbreaking frontier of neurohospitality.

Embarking on the voyage into FY 2024, the hospitality sector stands at the precipice of innovation and transformation. The upcoming fiscal year promises a symphony of trends that will shape the very essence of guest encounters From the seamless integration of technology to a heightened commitment to sustainability and the gastronomic evolution to the changing landscape of travel preferences, these trends paint a vibrant picture of what lies ahead. Amidst these waves of change the exploration of neuro hospitality emerges as the frontier, seeking to understand and respond to guests'' emotional landscapes. As we embark on this journey into the future of hospitality, these trends weave together to create a narrative where tradition and technology harmonise to craft unparalleled guest experiences. Join us as we unravel the dynamic trends that will redefine and elevate the hospitality experience in the unfolding chapters of FY 2024.

e) RISK AND CONCERNS

The hospitality industry is a vast sector with many different categories that include recreation, lodging, entertainment, food and beverage which are constantly evolving. Due to the overwhelming amount of data available today, it has become increasingly challenging for industry players to gather all the necessary hospitality statistics to keep up with the latest trends. As a result, staying informed and up-to-date has become an impossible task.

Despite being an exhilarating career path with many avenues which demand a diverse skill-set, the hospitality industry is currently struggling to fill open positions. This is partly due to the changing nature of jobs and employee expectations. Customer needs and expectations have also evolved in recent times, largely off the back of the global pandemic of 2020 and 2021 which spurred a seismic shift in industry trends.

If 2022 was the year travel returned following the pandemic, 2023 was all about making up for lost time and ticking off bucket list items. In short, there''s a healthy outlook to the travel and tourism sector in 2024 and beyond.

f) INTERNAL CONTROL SYSTEMS AND ADEQUACY.

Your Company has in a place an adequate internal control system. The internal controls are designed to provide reasonable assurance regarding the effectiveness and the efficiency of operations, the adequacy of safeguards for assets, the reliability of financial controls, and compliance with applicable Laws and Regulations, protecting the assets from unauthorized use of losses. The internal controls are supplemented by the programme of internal audit.

g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE /BUSINESS PERFORMANCE.

Overall Income increased by Rs. 1,232.75 from Rs. 6288.01 to Rs 7520.76.

Occupancy increased by 2.7% from 74.1% to 76.8 %.

h) MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT.

Your company sincerely believes that its employees are its vital assets and hence in order to keep its employees motivated and changed, your company provides them good environment, so that they are able to leverage their full potential. The HR department updates its HR polices, SOP practice and processes so as to enable and empower its employees.

Your company provides the following welfare and HR activities to the company’s employees.

• Food wastage awareness

• first aid class

• Best Attendance award

• Iftar celebration

• Tamil new year celebration

• Ganesh Chaturthi celebrations

• Onam festival

• Yoga class for staff

• Excellence leadership training

• communication class for supervisory level

• Medical camp for staff

• Diwali, Ayudha Pooja, Christmas, Navrathri, Ramar pooja Ayodhi, Pongal, are celebrated with staff

• Common Staff Birthday celebration every month

• First Aid Class through Geri Care

• Effective leadership and communication skills, Emotional intelligence, Customer care by Mariya Kouser

• International Chef day

• Medical camp - Eye check up, Diabtes, BP, ECG

• Cooking Competition

• Christmas Carol Singing - Kids Carnival

• Leadership training - Management development training MDP

• Staff children summer camp

• Pongal Traditional Games (Paarampariya Vilayattukal)

• Safety and Fire Fighting awareness programmes for staff.

• Woman''s day celebration

By giving these schemes and training programmes, the employees become loyal to the company and thereby the employee attrition rate is minimized. The overall attrition rate is 5%. Promotions and recognition awarding policies, training and development, skill program are used as effective tools by HR for improving employee productivity.

(I) KEY FINANCIAL RATIOS

The variances in ratios on account of recovery of business during the current year when compared to previous year in which business was severely impacted by Covid 19 pandemic.

Cautionary Statement

The information contained in the Management Discussion and Analysis regarding Company''s estimates, expectations, projections, guidance are based on assumptions and expectations of future events. The Company takes no responsibility on such statements since the Company exercises no control over the events that takes place in future. The actual results may differ from those expressed or implied. The Changes in the domestic and global economic conditions and government regulations, tax laws and other statutes may affect the hospitality industry.

5. FINANCIAL INFORMATION AND DETAILS OF ASSOCIATE COMPANY

The Financial Statement of the company is prepared in accordance with the Ind AS under the provisions of the Companies Act, 2013 and forms part of the Annual Report. The company''s financials disclose the assets, liabilities, income, expenses and other details.

The Company does not have any subsidiary, Joint Venture and associate Company.

During the year under review no Company has become ceased to be the Company''s subsidiary, Joint Venture and associate Company.

6. Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014 containing salient features of the financial statement of subsidiaries/associate companies/joint ventures-NOT APPLICABLE

7. FINANCIAL HIGHLIGHTS OF THE COMPANY

The financial highlights of the company for last 10 years are furnished in the Annual Report in the first page.

8. HUMAN RESOURCES

The Management envisions trained and motivated employees as the backbone of the Company. Special attention is given to recruit trained and experienced personnel in all departments. The Management strives to retain and improve employee morale. The Company has total staff strength of about 428 employees.

The Company has streamlined its manpower strength at the Hotel. As a result of manpower rationalization exercise, the monthly payroll has been optimized. The decision for rationalization of labour has enabled the company to curtail fixed manpower costs. However, the core technical expert team is retained to guide the Company to achieve higher and efficient level of performance.

9. DEPOSITORY SYSTEM / E-VOTING MECHANISM:

The Company has entered into a Tripartite Agreement with both the Depositories viz.

National Securities Depository Limited (NSDL) and Central Depository Services (I) Ltd (CSDL) along with Registrars M/s Cameo Corporate Services Ltd, for providing electronic connectivity for dematerialization on the Company''s shares facilitating the investors to hold the shares in electronic form and trade in those shares. The shares of your Company are being traded now on the BSE under compulsory demat form. Further, in accordance with provisions stipulated under Companies Act, 2013, the facility of e-voting is also made available to all shareholders of the Company. The instructions regarding e-voting is enclosed along with this report. All shareholders are also requested to update their email ids with the Company or our RTA M/s. Cameo Corporate Services Ltd. The Company has paid the Annual Depository fees for the FY 2023-24.

10. INVESTOR EDUCATION & PROTECTION FUND

During the year under review unclaimed dividend of (Interim & Final) Rs. 4,67,822/- and 19918 number of shares were transferred to the Investor Education and Protection Fund (IEPF).

Mr.R.Siddharth, Company Secretary of the company is appointed as Nodal Officer, as per the provisions of Companies Act, 2013 relating to IEPf and the above details are available in the official website of the company i.e. www.saverahotel.com.

11. DEPOSIT FROM PUBLIC

The Company has not accepted any fixed deposits under the provisions of the Companies Act, 2013.

12. A disclosure, as to whether maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained -NOT APPLICABLE.

13. DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors met Six (6) times during the year under review and the meeting dates are on 27.05.2023, 04.08.2023, 06.11.2023, 16.01.2024, 07.02.2024 and 01.03.2024 during the financial year 2023-24.

CHANGES IN KMP’S DURING THE FINANCIAL YEAR

During the Financial Year 2023-24 the following appointment and cessation of Key Managerial Personnel has taken place

There were no resignation of Key Managerial Personnel during the period under review except of the unfortunate demise of Managing Director Mr.A.Ravikumar Reddy on November 25, 2023.

The Key Managerial Personnel of the company presently are Mrs. A. Nina Reddy, Managing Director, Mr. R.Siddharth, Company Secretary and Mr. CH Mahesh Kumar, Chief Financial Officer.

CHANGES IN BOARD OF DIRECTORS

During the Financial Year 2023-24, the following appointments and Cessation of the Board has taken place:

*Mr.A.RavikumarReddy (Managing Director) demised on 25.11.2023.

**Mrs.A.Nina Reddy designation was changed from Whole Time Director to Managing Director(KMP) w.e.f 16/01/2024.

Pursuant to the section 152 of the Companies Act, 2013, Mr.A.Chaitanya Kumar (DIN:09683865) Non Executive Director, retires by rotation and is eligible for reappointment. The Board has recommended his appointment and accordingly resolution seeking approval of the members for his re-appointment has been included in the notice of the 55^th Annual General Meeting of the company along with his brief profile.

14. DIRECTORS’ RESPONSIBILITY STATEMENT

On the basis of internal financial controls and systems relating to compliance maintained by the company, work done by the internal, statutory and secretarial auditors, the reviews performed by the management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the company''s internal financial controls were adequate and effective during the financial year 2023-24.

Pursuant to Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, and based on the representations received from the management, the directors hereby confirm that:

i. In the preparation of the Annual Accounts for the year 2023-24, the applicable accounting standards have been followed and there are no material departures;

ii. They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year 31st March,2024 and of the profit of the company for that period;

iii. They have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act. They confirm that there are adequate systems and controls for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

iv. They have prepared the annual accounts on a going concern basis;

v. They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating effectively;

vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

15. INTERNAL FINANCIAL CONTROLS

The Company has internal financial controls commensurate with the size of the complexity of the business operations and it has well defined internal audit functions. For the purpose of independence, the internal audit dept. reports to Chairman of the Audit Committee and the Board of Directors.

16. SECRETARIAL STANDARDS

The company has complied with the Secretarial Standards issued by Institute of Company Secretaries India.

16.1. SECRETARIAL AUDITOR

M/s. M. Francis & Associates, Practising Company Secretaries have been appointed as the Secretarial Auditor to carry out the Secretarial Audit for the year 2023-24. The Secretarial Audit Report given by them shall form part of this report as Annexure I.

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors in their Secretarial Audit report for the Financial Year 2023-24.

17. STATUTORY AUDITORS

In accordance with the provisions of Section 139 and 142 of the Companies Act, 2013, and the rules framed there under, M/s. S.Venkatram& Co., LLP, Chartered Accountants, TTK Road, Chennai 600 018 were re-appointed as statutory auditors of the company for second term of 5 years to hold the office from the conclusion of the 53rdAnnual General Meeting of the company held on 12.09.2022 till the conclusion of the 58th Annual General Meeting(AGM) of the Company.

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors on the standalone financial statements in their report for the year 2023-24.

18. SIGNIFICANT AND MATERIAL ORDERS

There were no significant and material orders passed by the regulators or courts or tribunals affecting the going concern status and future operations of the company during the year under review.

19. INDEPENDENT DIRECTORS DECLARATION

Mr. A. Sudhakar Reddy, Mr. S. Sundarraman and Dr.C. Palanivelu, who are independent directors, have submitted a declaration that each of them meets the criteria of independence as provided in sub-section (6) of section 149 of the Companies Act 2013, and are in compliance with Regulation 16 and 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further, there is no change in their status as independent director during the year.

20. TRANSACTIONS WITH THE RELATED PARTIES

All related party transactions that were entered into during the financial year were in compliance with the applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Further, all contracts or arrangements with related parties entered into during the financial year ended 31-3-2024 were on arm''s length basis and in the ordinary course of business. Therefore the particulars of contracts or arrangements with related parties as referred to in sub-section (1) of section 188 of the Companies Act, 2013 are, is not applicable.

21. CORPORATE SOCIAL RESPONSIBILITY.

The CSR Policy of the company and the details about the initiatives taken by the company on CSR during the year as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 have been disclosed in Annexure II to this Report. Further details of composition of the Corporate Social Responsibility Committee and other details are provided in Corporate Governance report. During the year under review, the CSR Committee meetings were held on 27.05.2023, 04.08.2023, 06.11.2023 & 07.02.2024. The said CSR Policy is available in the Company''s website.

22. NOMINATION AND REMUNERATION POLICY

The company''s policy on directors appointment and remuneration and other matters provided in section 178(3) of the Companies Act, 2013 has been disclosed in the corporate governance report, which forms part of the directors'' report.

23. COMMITTEES

Currently, the Board of Directors of the Company pursuant to the mandatory provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has the following committees were included namely:

a) Audit Committee

b) Nomination & Remuneration Committee

c) Stakeholders Relationship Committee

d) Corporate Social Responsibility Committee

e) Share Transfer Committee

f) Internal Complaints Committee

g) Investment Committee.

A detailed note on the Board and its committees along with the composition of the committees and compliances is provided under the Corporate Governance Report section in this Annual Report.

24. BOARD EVALUATION

The performance evaluation of the Board as a whole, performance of non independent directors, the performance of the Board Chairman and the performance of committees were conducted and the same based on the questionnaire and feed back from all directors on the Board.

While undertaking the Board evaluation, the company also followed the required principles covered under the Guidance note issued by SEBI.

Important key criteria for performance evaluation are as follows.

Directors performance evaluation

a) Attendance at Board or Committee Meetings

b) Contribution at Board or Committee Meetings

c) Guidance/support to management outside Board/Committee meetings.

d) Performance evaluation of Board and Committees

e) Structure of the Board and Board composition

f) Establishment and delineation of responsibilities to Committees.

g) Effectiveness of Board processes, information and functioning.

h) Board culture and dynamics

i) Quality of relationship between Board and management.

j) Efficacy of communication with external stakeholders.

25. LISTING

The equity shares of the Company are listed on BSE Ltd and the listing fees are regularly paid by the company.

26. CORPORATE GOVERNANCE

In terms of Regulation 34 (2) & (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a report on Corporate Governance, the Practicing Company Secretary certificate on the compliance of conditions of Corporate Governance and the report on Management Discussion and Analysis form part of the Annual Report.

27. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

The information required under Section 134 (3) (m) of the Act, read with the companies (Accounts) Rules 2014 is furnished hereunder.

(A) CONSERVATION OF ENERGY

For the eco practices, the company has changed almost 99% of its lighting with LED lights reducing power consumption by 85% and the heat emission energy becomes very low, thereby through the STP,the sewerage and sewage water is treated and the treated water is recirculated for flushing system ,cooling towers and gardens.

The company also installed rain water harvesting system for collecting the rain water.

The company also installed organic waste convertor machine in which the organic wastes are converted into composite manure.

The company has fixed aerator in taps to save water the automatic tap in the guest toilet to save water and also for good hygiene practices.

The Company always purchases equipments or machinery which consumes less power.

B) TECHNOLOGY ABSORPTION

Hotel being a service industry, technology absorption, transfer etc., are not applicable. The Resilience of the company''s Backbone Systems consists of Servers, VPN and Many Tools

in company''s disposal made possible to successfully do the Day to Day Operations sailed smoothly despite severe restrictions placed on movement of Staff during Lockdown period.

The company solemns pledged to exceed the expectations in every front serving the company''s Valuable Clients Experience the Premium Ness as always.

(c) FOREIGN EXCHANGE EARNINGS AND OUTGO

The Foreign Exchange earned in terms of actual inflows during the year - Rs.8,19,000 The Foreign Exchange outgo during the year in terms of actual outflows - Rs.2,26,800

28. The Change in the nature of business, if any :

There is no change in nature of business.

29. Statement regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year.

The Non-executive Directors provide a strong independent element to the Board and a solid foundation for good corporate governance, fulfilling the vital role of corporate accountability. The board formally reviews the independence of each of our Non-executive Directors at least annually. The board is of the opinion that each of the current Non-executive independent Directors continues to be independent in character and judgement in line with the definition set out in the Code. In assessing each Director''s independence, the Committee concluded that each provides objective challenge, strategic guidance, hold management to account and is willing to stand up and defend their own beliefs.

There were no appointment of Independent Director during the financial year 2023-24.

30. DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The Company has in place an Anti-Sexual harassment Policy in line with the requirement of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual and trainees ) are covered under this policy. The following is a summary of sexual harassment complaints received and disposed off during the year 2023-24.

Number of complaint received during the year - NIL

Number of Complaint disposed of during the year - NIL

31. The details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.

No application under IBC was initiated by the Company as on March 31,2024. There was no instance of one time settlement with any Bank or financial institutions.

32. ANNUAL RETURN

A copy of the Annual Return 2023-24 is placed on the website of the company and can be accessed via weblink https://www.saverahotel.com.

33. PARTICULARS OF EMPLOYEES

The information required under section 197(12) of the Act, read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is furnished in the Annexure III to this report.

Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company.

34. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013.

The details of loans, guarantees and investments under section 186 of The Companies Act, 2013 has been furnished in Annexure IV to this report.

35. TRANSFER TO RESERVES

The Company has not transferred any amount to the reserves for the year ended March 31, 2024.

36. DETAILS OF MATERIAL CHANGES FROM THE END OF FINANCIAL YEAR:

There have been no material changes and commitments affecting the financial position of the Company between the end of the financial year and date of this report.

37. DETAILS IN RESPECT OF FRAUDS.

There are no frauds as reported by the Statutory Auditors in Sl. No 11 of Annexure ‘A'' to the Independent Auditors Report.

GENERAL :

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.

(i) Issue of equity shares with differential rights as to dividend, voting or otherwise

(ii) Issue of shares (including sweat equity shares) to employees of the company under any scheme.

ACKNOWLEDGEMENTS

The directors would like to thank the Bankers of the Company, and other financial institutions for extending their financial support. They further express their thanks to the Central Government, State Government and other stakeholders for their patronage, support and guidance.

To the members of Savera Industries Ltd.

The Directors have pleasure in presenting the 49th Annual Report of Savera Industries Ltd (the company), along with the audited financial statements under Ind AS for the financial year ended 31st March, 2018.

FINANCIAL RESULTS (Rs. in lakhs)

(*Do not include Revaluation Reserve to the extent of Rs. 1334.85 lakhs & other comprehensive income of Rs. 94.32 lakhs)

OPERATING RESULTS

The revenues of the company including other income increased by Rs. 394.62 lakhs representing 5.70% over last year. The occupancy of the main unit i.e. Savera Hotel, Chennai rose to 84.4.% during the year as against 78.2% over the corresponding period last year.

As can be seen above, the profit before tax is at Rs. 679.93 lakhs as compared to Rs. 532.12 lakhs of last year, registering an increase of 27.78%.

STATE OF COMPANY’S AFFAIRS

Total expenditure for the period ended as at 31st March, 2018 amounted to Rs. 6534.41 lakhs increased by Rs. 345.71 lakhs (5.59%) as compared to the previous year. The Profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st March, 2018 amounted to Rs. 1150.48 lakhs as against Rs. 1151.57 lakhs over the corresponding period last year. The tax expense including deferred tax for the year ended 31st March, 2018 amounted to Rs. 166.53 lakhs. The Profit after Tax for the year ended 31st March, 2018 stood at Rs. 513.40 lakhs as against profit of Rs. 313.76 lakhs. No transfer was made to General Reserve during the year under review. The company has adopted Ind-AS for the first time from the financial year 2017-18 and accordingly the financial statements for the year ended 31.03.2018 have been prepared and necessary changes have been given effect to the financial statements of the previous year 2016-17.

DIVIDEND

The Board of Directors of the Company has declared an Interim Dividend of Rs. 1.20 per equity share for the financial year ended 31.03.2018 on 14th February, 2018. Further the Board of Directors of the Company has recommended a final dividend of Rs. 1.30 per equity share for the financial year ended 31.03.2018. The total outflow towards including interim dividend will be Rs. 298.20 lakhs and the tax on dividend works out to Rs. 60.71 lakhs.

DEPOSIT FROM PUBLIC

The Company has not accepted any fixed deposits under the provisions of the Companies Act, 2013.

FINANCIAL HIGHLIGHTS OF THE COMPANY

The financial highlights of the company for last 10 years are furnished in the Annual Report.

FINANCIAL INFORMATION AND DETAILS OF ASSOCIATE COMPANY

The Financial Statement of the company is prepared in accordance with the Ind AS under the provisions of the Companies Act, 2013 and forms part of the Annual Report. The company’s financials disclose the assets, liabilities, income, expenses and other details. There is no subsidiary company and associate company within the meaning of section 2(6) of the Companies Act, 2013 (“Act”).

DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors met five (5) times during the year under review and the meeting dates are provided in the Corporate Governance Report.

Pursuant to the provisions of the Companies Act, 2013, Mrs. A. Nina Reddy, Director retires by rotation and is eligible for reappointment. The Board recommends her appointment and accordingly resolution seeking approval of the members for her appointment has been included in the notice of the forthcoming Annual General Meeting of the company along with her brief profile.

The Key Managerial Personnel of the company presently are Mr. A. Ravikumar Reddy, Managing Director, Mr. N. S. Mohan, Company Secretary and Mr. D.V.M. Sambasiva Rao, Chief Financial Officer.

DIRECTORS’ RESPONSIBILITY STATEMENT

On the basis of internal financial controls and systems relating to compliance maintained by the company, work done by the internal, statutory and secretarial auditors, the reviews performed by the management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the company’s internal financial controls were adequate and effective during the financial year 2017-18.

Pursuant to Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, and based on the representations received from the management, the directors hereby confirm that:

I. In the preparation of the Annual Accounts for the year 2017-18, the applicable accounting standards have been followed and there are no material departures;

ii. They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year 31st March, 2018 and of the profit of the company for that period;

iii. They have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act. They confirm that there are adequate systems and controls for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

iv. They have prepared the annual accounts on a going concern basis;

v. They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating properly;

vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

INTERNAL CONTROL & SYSTEM

The Company has internal control and systems commensurate with the size of the complexity of the business operations and it has well defined internal audit functions. For the purpose of independence, the internal audit dept. reports to Chairman of the Audit Committee and the Board of Directors.

SECRETARIAL AUDITOR

Mr. R. Balasubramaniam, Practising Company Secretary has been appointed as the Secretarial Auditor during the year. The Secretarial Audit Report given by him shall form part of this report.

STATUTORY AUDITORS

In accordance with the provisions of Section 139 and 142 of the Companies Act, 2013, and the rules framed thereunder, M/s. S. Venkatram & Co., LLP, Chartered Accountants, 218 T.T.K. Road, Chennai 600 018 were appointed as statutory auditors of the company for a period of 5 years to hold the office from the conclusion of the 48th Annual General Meeting of the company held on 11.08.2017 till the conclusion of the 53rd Annual General Meeting (AGM) on the remuneration as may be fixed by the Board of Directors of the company.

SIGNIFICANT AND MATERIAL ORDERS

There were no significant and material orders passed by the regulators or courts or tribunals affecting the going concern status and future operations of the company.

INDEPENDENT DIRECTORS DECLARATION

Mr. A. Sudhakar Reddy, Mr. B. Ranga Reddy, and Mr. S. Sridhar Rao who are independent directors, have submitted a declaration that each of them meets the criteria of independence as provided in sub-section (6) of section 149 of the Act. Further, there is no change in their status as independent director during the year.

STATUTORY AND SECRETARIAL AUDITORS REPORT

There are no qualifications, reservations or adverse remarks or disclaimers in the Statutory Auditors and Secretarial Auditors Report.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013.

LOANS & INVESTMENTS :

The company has made an investment of Rs. 76010/- comprising 7601 equity shares of the face value of Rs. 10 each in M/s. Clarion Wind Farm Pvt. Ltd. to comply with the terms of Energy Wheeling Agreement entered into with them for the supply of electricity through Wind Mills. Further the company has invested Rs. 92,700/- comprising of 1236 equity shares of face value of Rs.1 each at the premium of Rs. 74 in the Indian Hotels Company Ltd.

TRANSACTIONS WITH THE RELATED PARTIES

All related party transactions that were entered into during the financial year were in compliance with the applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) (LODR) Regulations 2015.

Further all contracts or arrangements with related parties entered into during the financial year ended 31-3-2018 were on an arm’s length basis and in the ordinary course of business. The particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 are furnished in Form AOC-2.

RISK MANAGEMENT

The Board takes responsibility in overseeing the risk management plan for the company. The Risk Management Policy facilitates in identifying the risks associated with the operations of the company and in giving suitable measures/solutions to mitigate the same. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuous basis.

CORPORATE SOCIAL RESPONSIBILITY.

The CSR Policy of the company and the details about the initiatives taken by the company on CSR during the year as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 have been disclosed in Annexure 1 to this Report. Further details of composition of the Corporate Social Responsibility Committee and other details are provided therein. The company could not spend Rs. 1.27 lakhs, during the year under review and the said amount is carried forward to the financial year 2018-19 and before 31st March, 2019, the unspent amount of Rs. 1.27 lakhs shall be utilized for CSR Expenses. During the year under review the CSR Committee meeting was held on 30.5.2017, 9.8.2017, and 14.2.2018.

NOMINATION AND REMUNERATION POLICY

The company’s policy on directors appointment and remuneration and other matters provided in section 178(3) of the Companies Act, 2013 like last year has been disclosed in the corporate governance report, which forms part of the directors’ report.

BOARD EVALUATION

Like last year the performance evaluation of the Board, its Committees and individual directors was conducted and the same was based on questionnaire and feedback from all the Directors on the Board as a whole, committees and self-evaluation.

Directors, who were designated, held separate discussions with each of the Directors of the company and obtained their feedback on overall Board effectiveness as well as each of the other directors.

Based on the questionnaire and feedback, the performance of every director was evaluated in the meeting of the Nomination and Remuneration Committee (NRC).

A separate meeting of the independent directors was convened, which reviewed the performance of the Board (as a whole), the non-independent directors and the Chairman. After the annual independent directors meeting, the collective feedback of each of the independent directors was discussed by the Chairman of Nomination and Remuneration Committee with the Board’s Chairman covering performance of the Board as a whole, performance of the non-independent directors and the performance of the Board Chairman. While undertaking the Board evaluation, the company also follows the required principles covered under the Guidance note issued by SEBI.

Important key criteria for performance evaluation are as follows.

DIRECTORS PERFORMANCE EVALUATION

Attendance at Board or Committee Meetings Contribution at Board or Committee Meetings

Guidance/support to management outside Board/Committee meetings.

Performance evaluation of Board and Committees Structure of the Board and Board composition Establishment and delineation of responsibilities to Committees.

Effectiveness of Board processes, information and functioning.

Board culture and dynamics

Quality of relationship between Board and management.

Efficacy of communication with external stakeholders.

LISTING

The equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE). The company has listed its shares in Madras Stock Exchange Limited.(MSE) and the said MSE is not in existence as of now. Hence, the listing fees have been paid to Bombay Stock Exchange Ltd only.

CORPORATE GOVERNANCE

In terms of Regulation 34 (2) & (3) of SEBI (LODR) Regulations 2015, a report on Corporate Governance, the Auditors’ Certificate on the compliance of conditions of Corporate Governance and the report on Management Discussion and Analysis form part of the Annual Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information required under Section 134 (3) (m) of the Act, read with the companies (Accounts) Rules 2014 is furnished hereunder.

The company is practicing green energy by getting 90% of the power required through the wind energy and 80% of the hot water generated through the solar thermal system. For the eco practices, the company has changed almost 90% of its lighting with LED lights reducing the power consumption by 85% and the heat emission energy becomes very low thereby through the STP, the sewerage and sewage water is treated and the treated water is recirculated for W.C flushing system and cooling tower water.

The company also installed organic waste convertor machine in which the organic wastes are converted in to composite manure

Hotel being a service industry, technology absorption, transfer etc., are not applicable. The company has installed Wi-Fi internet, group mobile system, wireless systems for its security for faster communication.

Earnings in convertible foreign exchange for the year amounted to Rs. 377.55 lakhs for the services rendered to Foreign Tourists (Previous year Rs. 487.04 lakhs). Expenditure in Foreign Currency is Rs. 39.44 lakhs (Previous Year Rs. 42.12 lakhs ).

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The Company has in place an Anti-Sexual harassment Policy in line with the requirement of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual and trainees) are covered under this policy. The following is a summary of sexual harassment complaints received and disposed off during the year 2017-18.

a. Number of complaints received during the year - NIL

b. Number of Complaint disposed of during the year - NIL

EXTRACT OF THE ANNUAL RETURN

As Provided under section 92(3) of the Act, the extract of annual return is given in Annexure 2 in the prescribed form MGT -9 which forms part of this report.

PARTICULARS OF EMPLOYEES

The information required under section 197(12) of the Act, read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel ) Rules, 2014 is furnished in the Annexure 3 to this report

During the year , in terms of the Union Agreement dated 1.8.2017, the company made a provision towards Earned Leave payable to those employees of the company who have completed 5 years of service for Rs. 148.18 lakhs.

Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company.

GENERAL :

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.

Issue of equity shares with differential rights as to dividend, voting or otherwise

Issue of shares (including sweat equity shares) to employees of the company under any scheme.

ACKNOWLEDGEMENTS

The directors would like to thank the Central Bank of India, and other financial institutions for extending their financial support. They further express their thanks to the Central Government, State Government and other stakeholders for their patronage, support and guidance.

For and on behalf of the Board

Chennai A. Ravikumar Reddy A. Nina Reddy

30th May, 2018 Managing Director Joint Managing Director

The Directors have pleasure in presenting the 48th Annual Report of Savera Industries Ltd (the company) along with the audited financial statements for the financial year ended 31st March, 2017.

FINANCIAL RESULTS (Rs. in lakhs)

OPERATING RESULTS

The income of the company rose to Rs.6867.00 lakhs from Rs.6690.98 lakhs representing 2.63% increase over last year. The occupancy of the main unit i.e. Savera Hotel, Chennai is 78.2% during the year as against 81% over the corresponding period last year.

During the year under review, the profit before tax and before exceptional item amounted to at Rs.656.74 lakhs and after an exceptional item ie. impairment loss of Rs.196.44 lakhs, but before Tax, the Profit stood at Rs.460.30 lakhs as compared to Rs.573.24 lakhs of last year, registering a decrease of 19.70%.

After the Balance Sheet date, Savera Purple situated at Bengaluru on leased lands was closed in view of losses. Accordingly, impairment loss was booked as required under the Accounting Standard.

STATE OF COMPANY’S AFFAIRS

Total expenditure for the period ended as at 31st March, 2017 worked out to Rs.6210.26 lakhs showing an increase of Rs.92.52 lakhs (1.51%) as compared to the previous year. The Profit (EBITDA) before depreciation, finance cost and tax for the year ended 31st March, 2017 amounted to Rs.1271.61 lakhs decreased by Rs.0.58 lakhs as compared to the corresponding period last year. The tax expense including deferred tax for the year ended 31st March, 2017 amounted to Rs.222.61 lakhs. The Profit after Tax for the year ended 31st March, 2017 stood at Rs.237.69 lakhs as against a profit of Rs.243.09 lakhs. No transfer was made to General Reserve during the year under review.

DIVIDEND

The Board of Directors of the Company has recommended a dividend of Rs.1.50 per equity share for the financial year ended 31.03.2017. The outflow towards dividend will be Rs.178.92 lakhs and the tax on dividend works out to Rs.36.60 lakhs, totalling Rs.215.52 lakhs.

DEPOSIT FROM PUBLIC

The Company has not accepted any deposit from public under the provisions of the Companies Act, 2013.

FINANCIAL HIGHLIGHTS OF THE COMPANY

The financial highlights of the company for last 10 years are furnished in the Annual Report.

FINANCIAL INFORMATION AND DETAILS OF ASSOCIATE COMPANY

The Financial Statement of the company is prepared in accordance with the Accounting Standard issued by the Institute of Chartered Accountants of India and forms part of the Annual Report. The company''s financials disclose the assets, liabilities, income, expenses and other details.

There is no subsidiary company, associate company and joint ventures within the meaning of section 2(6) of the Companies Act, 2013 (“Act”).

DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors met five (5) times during the year under review and considered the financial results and the meeting dates are provided in the Corporate Governance Report.

During the year under review, Mr.G.Sitharaman, Independent Director and Chairman of the Audit Committee had resigned from the Directorship of the company with effect from 25.3.2017 due to his personal reasons and his other professional pre-occupations. The Board placed on record its appreciation for the professional guidance given by Sri G. Sitharaman to the Board from time to time.

Pursuant to the provisions of the Companies Act, 2013, Ms. A. Nivruti, Director retires by rotation and is eligible for reappointment. The Board recommends her appointment and accordingly resolution seeking approval of the members for her appointment has been included in the notice of the forthcoming Annual General Meeting of the company along with her brief profile.

The Key Managerial Personnel of the company presently are Mr. A. Ravikumar Reddy, Managing Director, Mr. N. S. Mohan, Company Secretary and Mr.I.Sivakumar, Chief Financial Officer.

DIRECTORS’ RESPONSIBILITY STATEMENT

On the basis of internal financial controls and systems relating to compliance maintained by the company, work done by the internal, statutory and secretarial auditors, the reviews performed by the management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the company''s internal financial controls were adequate and effective during the financial year 2016-17.

Pursuant to Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, and based on the representations received from the management, the directors hereby confirm that:

i. In the preparation of the Annual Accounts for the year 2016-17, the applicable accounting standards have been followed and there are no material departures;

ii. They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year 31st March,2017 and of the profit of the company for that period;

iii. They have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act. They confirm that there are adequate systems and controls for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

iv. They have prepared the annual accounts on a going concern basis;

v. They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating properly;

vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

INTERNAL CONTROL & SYSTEM

The Company has internal control and systems commensurate with the size of the complexity of the business operations and it has well defined internal audit functions. For the purpose of independence, the internal audit dept. reports to Chairman of the Audit Committee and the Board of Directors.

SECRETARIAL AUDITOR

Mr. R. Balasubramaniam, Practicing Company Secretary has been appointed as the Secretarial Auditor during the year. The Secretarial Audit Report given by him shall form part of this report.

STATUTORY AUDITORS

Our existing Auditors M/s. D. A. Reddy & Co., who were appointed by the members at their 45th Annual General Meeting held on 22.9.2014 shall hold office upto the conclusion of the forthcoming 48th Annual General Meeting and his term gets completed on the said date. The Board placed on record their professional advices and they are not eligible for reappointment under the provisions of the Companies Act, 2013.

Further, in pursuance of the provisions of section 139 of the Companies Act, 2013 and the rules framed thereunder, the Board of Directors of the company has recommended M/s. S. Venkatram & Co., Chartered Accountants, 218, T.T.K. Road, Chennai - 600 018 for appointment as Statutory Auditors of the Company for a period of 5 years as a First Term to hold the office from the conclusion of the ensuing Annual General Meeting (48th Annual General Meeting) until the conclusion of the 53rd Annual General Meeting on the remuneration as may be fixed by the Board of Directors of the company, subject to the approval of the shareholders at the ensuing Annual General Meeting.

SIGNIFICANT AND MATERIAL ORDERS

There were no significant and material orders passed by the regulators or courts or tribunals affecting the going concern status and future operations of the company.

INDEPENDENT DIRECTORS DECLARATION

Mr. A. Sudhakar Reddy, who is an independent director, has submitted a declaration that he meets the criteria of independence as provided in sub-section (6) of section 149 of the Act.

Further, the first term of Mr.B.Ranga Reddy and Mr.S.Sridhara Rao as independent directors, shall get completed on 21.9.2017. Keeping in view their performance, the Board has recommended them for the second term for a period of 5 years from 22.09.2017 to 21.09.2022 to the members for their approval through Special Resolutions.

STATUTORY AND SECRETARIAL AUDITORS REPORT

There are no qualifications, reservations or adverse remarks or disclaimers in the Statutory Auditors and Secretarial Auditors Report.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013.

LOANS & INVESTMENTS :

During the year under review, the company has disinvested 44000 equity shares of the face value of Rs.10 each in M/s. Clarion Wind Farm Pvt Ltd for Rs.4,40,000/- to comply with the terms of Energy Wheeling Agreement entered into with them for the supply of electricity through Wind Mills.

TRANSACTIONS WITH THE RELATED PARTIES

All related party transactions that were entered into during the financial year were in compliance with the applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) (LODR) Regulations 2015.

Further all contracts or arrangements with related parties entered into during the financial year ended 31-3-2017 were on an arm''s length basis and in the ordinary course of business.

The particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 are furnished in Form AOC-2.

RISK MANAGEMENT

The Board takes responsibility in overseeing the risk management plan for the company. The Risk Management Policy facilitates in identifying the risks associated with the operations of the company and in giving suitable measures/solutions to mitigate the same. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuous basis.

CORPORATE SOCIAL RESPONSIBILITY.

The CSR Policy of the company and the details about the initiatives taken by the company on CSR during the year as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 have been disclosed in Annexure 1 to this Report . Further details of composition of the Corporate Social Responsibility Committee and other details are provided.

NOMINATION AND REMUNERATION POLICY

The company''s policy on directors appointment and remuneration and other matters provided in section 178(3) of the Companies Act, 2013 like last year has been disclosed in the corporate governance report, which forms part of the directors'' report.

BOARD EVALUATION

Like last year the performance evaluation of the Board, its Committees and individual directors was conducted and the same was based on questionnaire and feedback from all the Directors on the Board as a whole, committees and self-evaluation.

Directors, who were designated, held separate discussions with each of the Directors of the company and obtained their feedback on overall Board effectiveness as well as each of the other directors. Based on the questionnaire and feedback, the performance of every director was evaluated in the meeting of the Nomination and Remuneration Committee (NRC).

A separate meeting of the independent directors was convened, which reviewed the performance of the Board (as a whole), the non-independent directors and the Chairman. After the annual independent directors meeting, the collective feedback of each of the independent directors was discussed by the Chairman of Nomination and Remuneration Committee with the Board''s Chairman covering performance of the Board as a whole, performance of the non-independent directors and the performance of the Board Chairman.

White undertaking Board Evaluation, the Company also followed the required principles covered under the Guidance Note issued by SEBI.

Important key criteria for performance evaluation are as follows.

DIRECTORS PERFORMANCE EVALUATION

Attendance at Board or Committee Meetings Contribution at Board or Committee Meetings

Guidance/support to management outside Board/Committee meetings.

Performance evaluation of Board and Committees

Structure of the Board and Board composition

Establishment and delineation of responsibilities to Committees.

Effectiveness of Board processes, information and functioning.

Board culture and dynamics

Quality of relationship between Board and management.

Efficacy of communication with external stakeholders.

LISTING

The equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE) and Madras Stock Exchange Limited.(MSE). The listing fees have been paid to Bombay Stock Exchange Ltd only.

CORPORATE GOVERNANCE

In terms of Regulation 34 (2) & (3) of SEBI (LODR) Regulations 2015, a report on Corporate Governance, the Auditors'' Certificate on the compliance of conditions of Corporate Governance and the report on Management Discussion and Analysis form part of the Annual Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information required under Section 134 (3) (m) of the Act, read with the companies (Accounts) Rules 2014 is furnished hereunder.

The company is practicing green energy methods as 3R. Reduce, Reuse and Recycle in every day operations. Through the green energy (wind energy) 90% of the power consumption is met and 90% of the hot water is generated through the solar water heater panels. The company has changed almost 95% of the lighting with LED light fittings resulting in the reductions of 85% of the electrical consumption on lighting.

The company is reusing the waste water from the sewage and sewerage water by its STP water treatment plant. Solid organic wastes are converted into manure with the organic waste convertor machine .

Hotel being a service industry, technology absorption, transfer etc., are not applicable. The company has installed Wi-Fi internet, group mobile system, wireless systems for its security for faster communication and is upgrading with the latest technology periodically.

Earnings in convertible foreign exchange for the year amounted to Rs.487.04 lakhs for the services rendered to Foreign Tourists (Previous year Rs.370.26 lakhs). Expenditure in Foreign Currency is Rs.42.12 lakhs (Previous Year Rs.44.77 lakhs).

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The Company has in place an Anti-Sexual harassment Policy in line with the requirement of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual and trainees) are covered under this policy. The following is a summary of sexual harassment complaints received and disposed off during the year 2016-17.

Number of complaints received during the year - NIL

Number of Complaints disposed off - NIL

EXTRACT OF THE ANNUAL RETURN

As Provided under section 92(3) of the Act, the extract of annual return is given in Annexure 2 in the prescribed form MGT -9 which forms part of this report.

PARTICULARS OF EMPLOYEES

The information required under section 197(12) of the Act, read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel ) Rules, 2014 is furnished in the Annexure 3 to this report.

Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company.

GENERAL :

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.

Issue of equity shares with differential rights as to dividend, voting or otherwise Issue of shares (including sweat equity shares) to employees of the company under any scheme.

ACKNOWLEDGEMENTS

The directors would like to thank the Central Bank of India, and other financial institutions for extending their financial support. They further express their thanks to the Central Government, State Government and other stakeholders for their patronage, support and guidance.

For and on behalf of the Board

Chennai A. Ravikumar Reddy A. Nina Reddy

30th May, 2017 Managing Director Joint Managing Director

To the members of Savera Industries Ltd,

The Directors are pleased to present the 47th Annual Report of Savera Industries Ltd (the company), and the audited financial statements for the financial year ended 31st March, 2016.

FINANCIAL RESULTS (Rs. in lakhs)

OPERATING RESULTS

The revenues of the company increased by Rs.382.34 lakhs from Rs.6309.03 lakhs to Rs.6691.37 lakhs registering a growth of 6.06% as compared to last year. The occupancy of the main unit i.e. Savera Hotel, Chennai rose to 81% during the year under review as against 76% over the corresponding period last year.

As can be seen above, the profit before tax stood at Rs.573.22 lakhs as against Rs.396.23 lakhs of last year, registering an increase of 44.67%.

During the year under review, the company’s wholly owned subsidiary M/s. Elkhill Agrotech Private Limited made an application to the Registrar of Companies on 17-02-2016 for striking off the name of the company from the Register of Companies, as the said subsidiary was unable to carry on any business on account of the leased lands, on which floriculture was carried on, which were surrendered. The balance sheet of the said subsidiary was drawn up as on 31-01-2016 with no liabilities & assets. The holding company viz M/s. Savera Industries Limited written off the investments in shares of the said subsidiary company amounting to Rs.282.23 lakhs and an amount of Rs.7.05 lakhs due from the said subsidiary company. Therefore there is no consolidated financial statements for this year.

STATE OF COMPANY’S AFFAIRS

Total expenditure for the year ended 31st March, 2016 amounted to Rs.6118.15 lakhs as against Rs.5912.80 lakhs thus there is an increase of Rs.205.35 lakhs representing 3.47% over last year. The Profit (EBITDA) before depreciation, finance cost and tax for the year ended

31st March, 2016 amounted to Rs.1272.19 lakhs increased by Rs.59.68 lakhs representing 4.92% over the corresponding period last year. The tax expense including deferred tax for the year ended 31st March, 2016 amounted to Rs.330.15 lakhs. The Profit after Tax for the year ended 31st March, 2016 stood at Rs.243.07 lakhs as against a profit of Rs.289.23 lakhs. No transfer was made to the General Reserve during the year under review.

DIVIDEND

The Board of Directors of the Company has declared an Interim Dividend of Rs.1.20 per equity share for the financial year ended 31.03.2016 on 11th March, 2016. Further, the Board of Directors of the Company has recommended a final dividend of Rs.0.30 per equity share for the financial year ended 31.03.2016. Thus the total dividend for the year is Rs.1.50 per share as against Rs.1.20 last year resulting to 25% increase over last year. The total outflow towards dividend including interim dividend worked out to Rs.178.92 lakhs and the tax on dividend worked out to Rs.36.60 lakhs.

FIXED DEPOSIT

The Company has not accepted any fixed deposits under the provisions of the Companies Act, 2013.

FINANCIAL HIGHLIGHTS OF THE COMPANY

The financial highlights of the company for last 10 years are furnished in the Annual Report in Page No. 66.

FINANCIAL INFORMATION AND DETAILS OF SUBSIDIARY

There is no associate company within the meaning of section 2(6) of the Companies Act, 2013 (“Act”).

Although the subsidiary company was closed (strike off) under the Exit Scheme from the Register of Companies, the information relating to the subsidiary company is furnished in the Annexure 2.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors met five (5) times during the year under review and considered the financial results and the meeting dates are provided in the Corporate Governance Report.

Pursuant to the provisions of the Companies Act, 2013, Mr. A. Tarun Reddy, Director retires by rotation and is eligible for reappointment. The Board recommends his appointment and accordingly resolution seeking approval of the members for his appointment has been included in the notice of the forthcoming Annual General Meeting of the company along with his brief profile.

During the year under review, Mr. I.Sivakumar was appointed as the Chief Financial Officer, in the place of Mr.R.Dayakar Naidu who resigned.

The Key Managerial Personnel of the company are Mr. A. Ravikumar Reddy, Managing Director, Mr. N. S. Mohan, Company Secretary and Mr.I.Sivakumar, Chief Financial Officer.

DIRECTORS’ RESPONSIBILITY STATEMENT

On the basis of internal financial controls and systems relating to compliance maintained by the company, work done by the internal, statutory and secretarial auditors, the reviews performed by the management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the company’s internal financial controls were adequate and effective during the financial year 2015-16.

Pursuant to Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, and based on the representations received from the management, the directors hereby confirm that:

i. In the preparation of the Annual Accounts for the year 2015-16, the applicable accounting standards have been followed and there are no material departures;

ii. They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year 31st March,2016 and of the profit of the company for that period;

iii. They have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act. They confirm that there are adequate systems and controls for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

iv. They have prepared the annual accounts on a going concern basis;

v. They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating properly;

vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

INTERNAL CONTROL & SYSTEM

The Company has internal control and systems commensurate with the size of the complexity of the business operations and it has well defined internal audit functions. For the purpose of independence, the internal audit dept. reports to Chairman of the Audit Committee of the Board of Directors.

SECRETARIAL AUDITOR

Mr. R. Balasubramaniam, Practising Company Secretary has been appointed as the Secretarial Auditor during the year. The Secretarial Audit Report given by him shall form part of this report.

STATUTORY AUDITORS

In accordance with statutory provisions of Section 139 the Companies Act, 2013, and the rules framed there under, the Statutory Auditors, M/s. D.A. Reddy & Co., Chartered Accountants, were appointed as statutory auditors of the company from the conclusion of the 45th Annual General Meeting of the company held on 22.09.2014 till the conclusion of the 48th Annual General Meeting (AGM) to be held in the year 2017, subject to ratification of their appointment at every AGM.

SIGNIFICANT AND MATERIAL ORDERS

There were no significant and material orders passed by the regulators or courts or tribunals affecting the going concern status and future operations of the company.

INDEPENDENT DIRECTORS DECLARATION

Mr. G. Sitharaman, Mr. A. Sudhakar Reddy, Mr. B. Ranga Reddy, and Mr. S. Sridhara Rao who are independent directors, have submitted a declaration that each of them meets the criteria of independence as provided in sub-section (6) of section 149 of the Act. Further, there is no change in their status as independent director during the year.

STATUTORY AND SECRETARIAL AUDITORS REPORT

There are no qualifications, reservations or adverse remarks or disclaimers in the Statutory Auditors and Secretarial Auditors Report.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013.

LOANS & INVESTMENTS :

The company has made an investment of Rs.4,00,000/- comprising 40000 equity shares of the face value of Rs.10 each in M/s. Clarion Wind Farm Pvt Ltd to comply with the terms of Energy Wheeling Agreement entered into with them for the supply of electricity through Wind Mills.

TRANSACTIONS WITH THE RELATED PARTIES

All related party transactions that were entered into during the financial year were in compliance with the applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) (LODR) Regulations 2015.

Further all contracts or arrangements with related parties entered into during the financial year ended 31-3-2016 were on an arm’s length basis and in the ordinary course of business.

The particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 are furnished in Form AOC-2.

RISK MANAGEMENT

The Board takes responsibility in overseeing the risk management plan for the company. The Risk Management Policy facilitates in identifying the risks associated with the operations of the company and in giving suitable measures/solutions to mitigate the same. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuous basis.

CORPORATE SOCIAL RESPONSIBILITY.

The CSR Policy of the company and the details about the initiatives taken by the company on CSR during the year under review as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 have been disclosed in Annexure 1 to this Report . Further details of composition of the Corporate Social Responsibility Committee and other details are provided in the Corporate Governance Report which forms part of this report.

NOMINATION AND REMUNERATION POLICY

The company’s policy on directors appointment and remuneration and other matters provided in section 178(3) of the Companies Act, 2013 like last year has been disclosed in the corporate governance report, which forms part of the directors’ report.

BOARD EVALUATION

Like last year the performance evaluation of the Board, its Committees and individual directors was conducted and the same was based on questionnaire and feedback from all the Directors on the Board as a whole, committees and self-evaluation.

Directors, who were designated, held separate discussions with each of the Directors of the company and obtained their feedback on overall Board effectiveness as well as each of the other directors. Based on the questionnaire and feedback, the performance of every director was evaluated in the meeting of the Nomination and Remuneration Committee (NRC). A separate meeting of the independent directors was convened, which reviewed the performance of the Board (as a whole), the non-independent directors and the Chairman. After the annual independent directors meeting, the collective feedback of each of the independent directors was discussed by the Chairman of Nomination and Remuneration Committee with the Board’s Chairman covering performance of the Board as a whole, performance of the non-independent directors and the performance of the Board Chairman.

Important key criteria for performance evaluation are as follows.

DIRECTORS PERFORMANCE EVALUATION

Attendance at Board or Committee Meetings Contribution at Board or Committee Meetings Guidance/support to management outside Board/Committee meetings. Performance evaluation of Board and Committees Structure of the Board and Board composition Establishment and delineation of responsibilities to Committees. Effectiveness of Board processes, information and functioning. Board culture and dynamics Quality of relationship between Board and management. Efficacy of communication with external stakeholders.

LISTING

The equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE) and Madras Stock Exchange Limited.(MSE). The listing fees have been paid to Bombay Stock Exchange Ltd only. The listing fees has not been paid to Madras Stock Exchange Ltd., which is not functioning.

CORPORATE GOVERNANCE

In terms of Regulation 34 (2) & (3) of SEBI (LODR) Regulations 2015, a report on Corporate Governance, the Auditors’ Certificate on the compliance of conditions of Corporate Governance and the report on Management Discussion and Analysis form part of the Annual Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information required under Section 134 (3) (m) of the Act, read with the companies (Accounts) Rules 2014 is furnished hereunder.

The company is practicing green energy by getting 90% of the power required through the wind energy and 80% of the hot water generated through the solar thermal system. For the eco practices, the company has changed almost 90% of its lighting with LED lights which reduces the power consumption by 85% thereby the heat emission energy becomes very low. Through the STP, the sewerage and sewage water is treated and the treated water is recirculated.

The company also installed organic waste converter machine in which the organic wastes are converted into composite manure.

Hotel being a service industry, technology absorption, transfer etc., are not applicable. The company has installed Wi-Fi internet, group mobile system, wireless systems for its security for faster communication.

Earnings in convertible foreign exchange for the year amounted to Rs.370.26 lakhs for the services rendered to Foreign Tourists (Previous year Rs.393.90 lakhs). Expenditure in Foreign Currency is Rs.44.77 lakhs (Previous Year Rs.133.42 lakhs ).

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The Company has in place an Anti-Sexual harassment Policy in line with the requirement of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual and trainees ) are covered under this policy. The following is a summary of sexual harassment complaints received and disposed off during the year 2015-16.

a. Number of complaint on sexual harassment received during the year - NIL

b. Number of complaint disposed of during the year - NIL

c. Number of case pending for more than 1 year -NIL

d. Nature of action taken by the company at the end of the year - NIL

EXTRACT OF THE ANNUAL RETURN

As Provided under section 92(3) of the Act, the extract of annual return is given in Annexure 3 in the prescribed form MGT 9 which forms part of this report.

PARTICULARS OF EMPLOYEES

The information required under section 197(12) of the Act, read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel ) Rules, 2014 is furnished in the Annexure 4 to this report Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company.

GENERAL :

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.

Issue of equity shares with differential rights as to dividend, voting or otherwise Issue of shares (including sweat equity shares) to employees of the company under any scheme.

Neither the Managing Director nor the Joint Managing Director receive any remuneration or commission from its subsidiary.

ACKNOWLEDGMENTS

The directors would like to thank the Central Bank of India, and other financial institutions for extending their financial support. They further express their thanks to the Central Government, State Government, other stakeholders and employees for their patronage, support and guidance.

For and on behalf of the Board

Chennai A. Ravikumar Reddy A. Nina Reddy

2nd August, 2016 Managing Director Joint Managing Director

To the members,

The Directors have pleasure in presenting the 44th Annual Report of the Company, together with its audited statement of Profit and Loss for the year ended 31 st March, 2013 and the Balance Sheet as on that date.

Financial results

(Rs.in lakhs) 31.3.2013 31.3.2012

Profit/(Loss) before tax for the year 498.99 929.28

Less: Provision for Income Tax for the year 106.30 216.08

Profit After tax 392.69 713.20

Profit Brought Forward 1936.38 1460.86

Profit Available for Appropriation 2329.07 2174.06

Transferred to General Reserve 39.27 71.32

Dividend and Dividend Distribution Tax 166.36 166.36

Profit carried forward to next year 2123.44 1936.38

OPERATING RESULTS

The revenue from operations rose by 13.37% from Rs. 5074.64 lakhs XoX 5753.06 lakhs. The company maintained the occupancy ratio at 71 % as in the last year. The Income from the Rooms increased by 5.05% from Rs. 2241.48 lakhs to Rs. 2354.70 lakhs and increase in Average Room Rent by 2%, while Food and Beverages revenue increased by 14.57% from Rs.1905.91 lakhs to Rs.2183.53 lakhs. Other income increased by 31.01% from Rs. 927.25 lakhs to Rs. 1214.83 lakhs. The profit before tax stood at Rs.498.99 lakhs as compared to f 929.28 lakhs of last year, which includes an amount of ^260.74 lakhs towards sale of land and building at Coimbatore. The fall in the profit is attributed mainly on account of increase in the cost of raw materials, power & fuel , salaries and finance charges. The profit after tax stood at Rs. 392.69 lakhs as compared to Rs. 713.20 lakhs of last year.

To sustain the business and compete with the other Hotels, maintaining the quality, improving the standards and styles, changing the ambience of the guest rooms, upgrading the facilities are necessary on year on year basis. Accordingly, during the year under review, your company took up the renovation work which is in progress. Such renovation work has affected the profitability of the company.

CONSOLIDATED FINANCIAL RESULTS

The consolidated turnover of the company for the financial year ended 31.03.2013 stood at ^5844.69 lakhs as against ^5426.06 lakhs for the previous year. The Profit after Tax amounted to ^374.15 lakhs as against ^682.83 lakhs for the previous year.

DIVIDEND

The Board of Directors of the Company has recommended a dividend of R 1.20 per equity share for the financial year ended 31.03.2013. The total outflow towards dividend will be Rs.143.14lakhs and Rs.23.22 lakhs towards tax on dividend. The dividend, if approved, in the forthcoming Annual General Meeting will be paid within 30 days thereof to the members.

SUBSIDIARY COMPANY

In terms of Accounting Standards 21 prescribed by the Institute of Chartered Accountants of India, the accounts of the subsidiaries are consolidated with the accounts of the Company and the consolidated accounts form part of this Report.

As per the general Circular No.2/2011 and notification No.51/12/2007-CL- III dated 8.02.2011 issued by the Ministry of Corporate Affairs, Govt, of India, the information in aggregate for subsidiary companies such as Capital, Reserves, etc. are furnished separately in the Annual Report. .

The annual accounts of the subsidiary companies viz., Savera Hotels & Resorts Ltd and M/s. Elkhill Agrotech Pvt. Ltd and other detailed information will be made available to the investors seeking such information at any point of time. The annual accounts of the subsidiary companies will also be available for inspection at the Registered Office of the Company as well as the respective Registered Offices of subsidiary companies.

In view of the fact that there has been no business activities in the subsidiary company, viz., Savera Hotels & Resorts Ltd, the necessary application for striking off the name of the company under section 560 of the Companies Act, 1956 through the Fast Track Exit Mode has been made. Accordingly, the name of the said subsidiary company, Savera Hotels & Resorts Limited, has been struck off the Register by the Registrar of Companies, Chennai and the company is dissolved with effect from 26th June, 2013.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, two of the Directors Mr. B. Ranga Reddy and Mr. A. Tarun Reddy retire by rotation and are eligible for re-appointment. Both the directors have expressed their willingness and offer themselves for re-appointment.

During the year under review, Mrs. A. Nina Reddy took charge as the Joint Managing Director with effect from 14th February, 2013 on the existing terms and conditions (without any additional benefit) from the position of the Executive Director (Operations).

AUDITORS

The Auditors, M/s. D.A. Reddy & Co., Chartered Accountants retire at this Annual General Meeting in accordance with the Companies Act, 1956, and are eligible for re-appointment. The company has received a letter from them stating that the appointment, if made, shall be within the prescribed limit under section 224 (1B) of the Companies Act, 1956.

FIXED DEPOSIT

The Company has not accepted any fixed deposits under Section 58A of the Companies Act, 1956.

CORPORATE GOVERNANCE

In term of clause 49 of the Listing Agreement, a report on Corporate Governance, the Auditors'' Certificate on the compliance of conditions of Corporate Governance and the report on Management Discussion and Analysis form part of the Annual Report.

BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Report in accordance with Clause 55 of the Listing Agreement is not a mandatory requirement for the company.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to''Section 217 (2AA) of the Companies Act, 1956, the Directors'' confirm the following.

a) That in the preparation of the Annual Accounts for the year ended 31st March, 2013, the applicable accounting standards have been followed along with proper explanation relating to material departures.

b) That the Directors'' have selected such accounting policies and applied them consistently and made Judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of financial year and of the profit of the Company for that year.

c) That the Directors have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) That the Directors have prepared the annual accounts on a going concern basis.

LISTING

The equity shares of the Company are listed on Bombay Stock Exchange Limited, and Madras Stock Exchange Limited. Besides, the equity shares of the company are also traded in National Stock Exchange of India Limited, Mumbai through MSE. The listing fees have been paid to Madras Stock Exchange Ltd and Bombay Stock Exchange Ltd.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information required under Sec.217(1) (e) of the Companies Act 1956, read with rule 2 of the Companies (disclosure of particulars in the Report of the Board of Directors) Rules,1988 is furnished hereunder.

(a) The Company is closely following the conservation of energy and save the earth programme by following the systems. Centralized Solar Hot Water systems are put in place at the Chennai Unit. LED and CLF lighting systems are in place almost in all the units of the company. Besides, the company has centralized the LPG banking for its LPG distribution systems. Electrical consumptions and Diesel are closely monitored and controlled by constant audit and upgradation. Apart from this, the company has entered into power purchase agreement for the purchase of green power and this is helping the company to conserve electrical energy and thereby reduce the power cost.

The company is recycling the waste water and sewage water and is using the treated water for gardening, cooling tower and cleaning purposes. The company is having R.O. Plant with U.V. Filter for the safe drinking water for our staff. The company is also exploring the other possibilities like Solar Energy System.

(b) Hotel being a service industry, technology absorption, transfer etc., are not applicable.

(c) Earnings/ in convertible foreign exchange for the year amounted to 303.94 lakhs for the services rendered to Foreign Tourist (Previous year Rs. 363.85 lakhs). Expenditure in Foreign Currency is Rs.215.80 lakhs (Previous Year Rs. 479.32 lakhs).

PARTICULARS OF EMPLOYEES

No employee had drawn remuneration during 2012-13 more than the amount prescribed under Section 217(2A) of the Companies Act, 1956, read with Companies (particulars of employees) Rules, 1975.

Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company.

ACKNOWLEDGEMENTS

The Board of Directors take this opportunity to thank the Central Bank of India, and other financial institutions for extending their financial support. They further express their thanks to the Central Government, State Government and other stakeholders for their patronage,support and guidance.

For and on behalf of the Board

Place : Chennai A.Ravikumar Reddy

Date : 8th August, 2013 Chairman of the Board

The Directors have pleasure in presenting the 43rd Annual Report of the Company, together with its audited statement of Profit and Loss for the year ended 31st March, 2012 and the Balance Sheet as on that date.

FINANCIAL RESULTS

(Rs. in lakhs) For the Year Ended 31.3.2012 31.3.2011

Profit/(Loss) before tax for the year 929.28 880.07

Less: Provision for Income Tax for the year 216.08 312.77

Profit After tax 713.20 567.30

Profit Brought Forward 1460.86 1117.20

Profit Available for Appropriation 2174.06 1684.50

Transferred to General Reserve 71.32 56.73

Dividend and Dividend Distribution Tax 166.36 166.91

Profit carried forward to next year 1936.38 1460.86

OPERATING RESULTS

The revenues of the company rose to Rs. 50.75 crs. from Rs. 46.45crs. (9.25 % increase). This is because of increase in room revenue by 9.18%, increase in occupancy rate to 71% from 70%, increase in Food & Beverages Income by 4.53% and increase in Average Room Rent by 2.60%

As can be seen above, the profit before tax is at Rs. 9.30 crs compared to Rs. 8.80 crs of last year, thus registering a marginal increase in profit of 5.6%.

During the year, the renovation work at Chennai unit was taken up and it is in progress. Such renovation work has affected the turnover of Chennai unit during the year under review and likely to do so in the next fiscal also. Besides, the company's other units at Bengaluru, and Hyderabad are in gestation period, which also affected the turnover.

CONSOLIDATED FINANCIAL RESULTS

The consolidated turnover of the company for the financial year ended 31.03.2012 stood at Rs. 54.26 crs as against Rs. 47.65 crs for the previous year. The Profit after Tax amounted to Rs. 6.82 crs as against Rs. 5.81 crs for the previous year.

DIVIDEND

The Board of Directors of the Company has recommended a dividend of Rs. 1.20 per equity share for the financial year ended 31.3.2012. The total outflow towards dividend will be Rs. 143.14 lakhs and the tax on dividend works out to Rs. 23.22 lakhs which will be absorbed by the company.

SUBSIDIARY COMPANY

In terms of Accounting Standards 21 prescribed by the Institute of Chartered Accountants of India, the accounts of the subsidiaries are consolidated with the accounts of the Company and the consolidated accounts form part of this Report.

As per the general Circular No.2/2011 and notification No.51/12/2007-CL-III dated 8.02.2011 issued by the Ministry of Corporate Affairs, Govt. of India, the information in aggregate for subsidiaries companies such as Capital, Reserves, etc. are furnished separately in the Annual Report. .

The annual accounts of the subsidiaries companies viz., M/s. Elkhill Agrotech Pvt Ltd and M/s. Savera Hotels & Resorts Ltd. and other detailed information will be made available to the investors seeking such information at any point of time. The annual accounts of the Subsidiary Companies will also be available for inspection at the Registered Office of the Company as well as the respective Registered Offices of Subsidiary Companies.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, two of the Directors Mr. S. Rajaratnam and Mr. A. Sudhakar Reddy retire by rotation and are eligible for re-appointment. Both the directors have expressed their willingness and offer themselves for re-appointment.

AUDITORS

The Auditors, M/s. D.A. Reddy & Co., Chartered Accountants retire at this Annual General Meeting in accordance with the Companies Act, 1956, and are eligible for re-appointment. The company has received a letter from them stating that the appointment, if made, shall be within the prescribed limit under section 224 (1B) of the Companies Act, 1956. .

FIXED DEPOSIT

The Company has not accepted any fixed deposits under Section 58A of the Companies Act, 1956.

CORPORATE GOVERNANCE

In term of clause 49 of the Listing Agreement, a report on Corporate Governance, the Auditors' Certificate on the compliance of conditions of Corporate Governance and the report on Management Discussion and Analysis form part of the Annual Report.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant Section 217 (2AA) of the Companies Act, 1956, the Directors' confirm the following.

a) That in the preparation of the Annual Accounts for the year ended 31st March, 2012, the applicable accounting standards have been followed along with proper explanation relating to material departures.

b) That the Directors' have selected such accounting policies and applied them consistently and made Judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of financial year and of the profit of the Company for that year.

c) That the Directors have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) That the Directors have prepared the annual accounts on a going concern basis.

LISTING

The equity shares of the Company are listed on Bombay Stock Exchange Limited, and Madras Stock Exchange Limited. Besides, the equity shares of the company are also traded in National Stock Exchange of India Limited, Mumbai through MSE. The listing fees have been paid to Madras Stock Exchange Ltd and Bombay Stock Exchange Ltd..

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information required under Sec.217(1) (e) of the Companies Act 1956, read with rule 2 of the Companies (disclosure of particulars in the Report of the Board of Directors) Rules,1988 is furnished hereunder.

(a) Your Company is closely following the conservation of energy and save the earth programme by following the systems. Centralized Solar Hot Water systems are put in place at the Chennai Unit. LED and CLF lighting systems are in place almost in all the units of the company. Further, the company has centralized the LPG banking for its LPG distribution systems. Electrical consumptions and Diesel are closely monitored and controlled by constant audit and upgradation. Apart from this, the company has entered into power purchase agreement for purchase of green power and this is helping the company to conserve electrical energy and thereby reduce the power cost.

(b) Hotel being a service industry, technology absorption, transfer etc., are not applicable. The company has installed Wi-Fi internet, group mobile system, wireless systems for its security for faster communication.

(c) Earnings in convertible foreign exchange for the year amounted to Rs. 363.85 lakhs for the services rendered to Foreign Tourist (Previous year Rs. 347.52 lakhs). Expenditure in Foreign Currency is Rs. 479.32 lakhs (Previous Year Rs. 20.99 lakhs).

PARTICULARS OF EMPLOYEES

No employee had drawn remuneration during 2011-12 more than the amount prescribed under Section 217(2A) of the Companies Act, 1956, read with Companies (particulars of employees) Rules, 1975.

Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company.

ACKNOWLEDGEMENTS

The Board of Directors take this opportunity to thank the Central Bank of India, and other financial institutions for extending their financial support. They further express their thanks to the Central Government, State Government and other stakeholders for their patronage, support and guidance.

For and on behalf of the Board

A.Ravikumar Reddy Managing Director

Place : Chennai Date : 6th August, 2012

Dear Members,

The Directors have pleasure in presenting the 42nd Annual Report of the Company, together with the ; Audited Accounts for the year ended 31st March, 2011.

FINANCIAL RESULTS

(Rs. in thousands)

FOR THE YEAR ENDED

31.3.2011 31.3.2010

Profit/(Loss) before tax for the year 8,80,08 4,99,04

Less: Provision for Income Tax for the year 3,12,76 1,91,55

Profit After tax 5,67,32 3,07,49



Profit Brought Forward 11,17,20 9,00,85

Profit Available for Appropriation 16,84,52 12,08,34

Transferred to General Reserve 56,73 7,68

Dividend and Dividend Distribution Tax 1,66,91 83,46

Profit carried forward to next year 14,60,88 11,17,20

REVIEW OF FINANCIAL PERFORMANCE

The company recorded 36% increase in turnover at Rs.4,728.56 lakhs during the year ended March 31, 2011, as compared to the revenue of Rs.3,485.61 lakhs earned during the previous year. This is because of increase in Room revenue by 46%, increase in occupancy rate to 70% from 47%, increase in Food & Beverages Income by 26%, despite the marginal decrease in the Average Room Rent by 2.50%. Profit before tax amounted to Rs.880.07 lakhs as against Rs.499.05 lakhs of the previous year resulting in an increase of 76%.

During the year under review, the company has started a hotel on the leased premises at Marathahalli, Bengaluru under the name of Lotus Park, and the marketing efforts are on to achieve the desired results.

CONSOLIDATED FINANCIAL RESULTS

The consolidated turnover of the company for the financial year ended 31.03.2011 stood at Rs.4,803.66 lakhs as against Rs.3,524.59 lakhs recorded during the previous year. The Profit after Tax amounted to Rs.580.51 lakhs as against Rs.254.37 lakhs recorded during the previous year.

BONUS SHARES

During the year under review, your company has capitalized the reserves by issuing Bonus Shares in the ratio of 1 : 1 to the members. After the bonus issue, the total paid up capital stood at Rs.11,92,80,000 consisting of 11928000 equity shares of face value of Rs.10/-each.

DIVIDEND

The Board of Directors of the Company has recommended a dividend of Rs.1.20 per equity share for the financial year ended 31.3.2011. The total outflow towards dividend will be Rs. 143.14 lakhs and the tax on dividend works out to Rs. 23.77 lakhs which will be absorbed by the company.

SUBSIDIARY COMPANY

In terms of Accounting Standards 21 prescribed by the Institute of Chartered Accountants of India, the accounts of the subsidiaries are consolidated with the accounts of the Company and the consolidated accounts form part of this Report.

As per the general Circular No.2/2011 and notification No.51/12/2007-CL-lll dated 8.02.2011 issued by the Ministry of Corporate Affairs, Govt, of India, the information in aggregate for subsidiaries companies such as Capital, Reserves, etc. are furnished separately in the Annual Report. The annual accounts of the subsidiaries companies viz., M/s. Elkhill Agrotech Pvt Ltd and M/s. Savera Hotels & Resorts Ltd. and other detailed information will be made available to the investors seeking such information at any point of time. The annual accounts of the Subsidiary Companies will also be available for inspection at the Registered office of the Company as well as the respective Registered offices of Subsidiary Companies.

DIRECTORS

In accordance with provisions of the Companies Act, 1956 and the Articles of Association of the Company, two of your Directors Mr. G.Sitharaman and Mrs. A.Nina Reddy retire by rotation and are eligible for re- appointment. Both the directors have expressed their willingness and offer themselves for re-appointment. AUDITORS

The Auditors, M/s. D.A. Reddy & Co., Chartered Accountants retire at this Annual General Meeting in accordance with the Companies Act, 1956, and are eligible for re-appointment. The company has received a letter from them stating that the appointment, if made, will be within the prescribed limit under section 224 (1B) of the Companies Act, 1956. The Audit Committee and Board recommends reappointment of M/s. D.A.Reddy & Co., Chartered Accountants, Chennai as Auditors of the Company.

FIXED DEPOSIT

The Company has not accepted any fixed deposits under Section 58A of the Companies Act 1956.

CORPORATE GOVERNANCE

In term of clause 49 of the Listing Agreement, a report on Corporate Governance and the Auditor's Certificate on the compliance of Corporate Governance form part of the Annual Report.

DIRECTORS'RESPONSIBILITY STATEMENT

Pursuant Section 217 (2AA) of the Companies Act, 1956, your Directors' confirm the following.

a) That in the preparation of the Annual Accounts for the year ended 31st March, 2011, the applicable '. accounting standards have been followed along with proper explanation relating to material i departures.

b) That the Directors' have selected such accounting policies and applied them consistently and made Judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of financial year and of the profit of the Company for that year.

c) That the Directors have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) That the Directors have prepared the annual accounts on a going concern basis.

LISTING

The equity shares of your Company are listed on the Bombay Stock Exchange Limited, and Madras Stock Exchange Limited. Besides, the equity shares of your company are also traded in National Stock Exchange of India Limited through MSE. The listing fees have been paid to the Madras Stock Exchange Ltd and Bombay Stock Exchange Ltd..

RECONCILIATION OF SHARE CAPITAL AUDIT

In terms of the Circular No. CIR/MRD/DP/ 30 /2010 dated 6.09.2010 issued by the SEBI, the reconciliation of share capital held in depositories and in physical form with the issued /listed capital of the company was carried out by Sri. R.Balasubramaniam, Practising Company Secretary for every quarter of the financial year 2010-11. The reconciliation of share capital audit report was placed before the Board and submitted to the stock exchanges where the company's shares are listed.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information required under Sec.217(1) (e) of the Companies Act 1956, read with rule 2 of the Companies (disclosure of particulars in the Report of Board Directors) Rules 1988 is furnished hereunder.

a) Constant efforts are being made to optimize the consumption of Electricity, Diesel, Petrol and Cooking Gas etc. Energy Audits are conducted periodically at different centres of the Hotel and the suggestions are being implemented on an ongoing process. In this respect, the company started using LED lights that consumes less energy and eco-friendly.

b) Hotel being a service industry, technology absorption, transfer etc. are not applicable. Your company J strives for updating the technology adopted by other companies in the Industry throughout the world and adopts the same in its operations for regular customer satisfaction.

This includes upgrading of technology in House Keeping, Kitchen Equipments, Online Reservations, Air Conditioning, Audio & Visual Display Systems, Security Systems like Metal Frame Detector, Hand Detector, Closed Circuit Cameras etc., Sewage Treatment Plant Latest Technology), Wi-Fi Internet, Networking, Hotel Software, Hoardings, LED Lighting, Closed User Group Mobile Systems to staff for faster response in attending to various activities of the company, if any.

c) The company has gone one step ahead and launched Eco Green practice by Reduce, Reuse and Recycle. For reduce, the company is closely monitoring and controlling the wastages. For reuse, all the unwanted or extra items are put in a Red Band area and the items will be taken back by any other department which requires the same. Through this, most of the items are in reuse. For recycle, Sewage Treatment Plant (STP) treated water is used for the company's garden.

d) Earnings in convertible foreign exchange for the year amounted to Rs. 347.52 lakhs for the services rendered to Foreign Tourist (Previous year Rs.246.01 lakhs). Expenditure in Foreign Currency is Rs. .99 lakhs (Previous year Rs.18 lakhs).

e) Necessary steps are taken to upgrade the guest rooms, restaurants, banquet halls of the hotel to attract more customers.

INFORMATION ON EMPLOYEES UNDER SECTION 217(2A) OF THE COMPANIES ACT, 1956.

No employee had drawn remuneration during 2010-11 more than the amount prescribed under Section 217(2A) of the companies Act, 1956, read with Companies (particulars of employees) Rules, 1975.

RELATIONSHIP WITH THE EMPLOYEES

Industrial Relations with employees are cordial. The company is providing opportunities to its employees for continuous learning and development to keep pace with challenges taking place in the hospitality industry. Many training programmes were conducted to develop the personality and outlook of the employees. The company has, through its internal sources undertaken employees' satisfaction survey to get the feedback from the employees and to see that their morale and motivation are improved. Highly engaged, talented and innovative people are leading the business excellence. The wage settlement agreements are entered into with the employees union at periodical intervals.

Your directors wish to place on record their appreciation for the good services rendered by the employees at all levels of the company. ACKNOWLEDGEMENTS

The Directors express their gratitude to Central Bank of India, and other financial institutions for extending their financial support. They further express their gratitude to the Central Government, State Government and other stakeholders for their patronage, guidance and support.

For and on behalf of the Board



A. Ravikumar Reddy Managing Director

Chennai 4.08.2011

The Directors have pleasure to present the 41st Annual Report of the Company together with the audited accounts for the year ended 31st March 2010.

FINANCIAL RESULTS

(Rs in Thousands)

For the Year Ended Particulars

31st March 2010 31st March 2009

Profit before tax for the year 4,99,05 3,34,72

Less: Provision for Income Tax for the year 1,91,56 2,43,45

Profit After tax 3,07,49 91,27

Profit Brought Forward 9,00,85 8,79,36

Profit available for Appropriation 12,08,34 9,70,63

Transferred to General Reserve 7,69 -

Dividend and Dividend Tax 83,45 69,78

Profit carried forward to Next year 11,17,20 9,00,85

COMPANY PERFORMANCE

The total income for the year ended March 31,2010 from operations is Rs. 3486 Lakhs; (Previous year Rs. 3939 Lakhs) which is lower than that of the previous year by 11.52 %.

The above reduction indicates the recessional trends in the economy that has affected the flow of tourists and reduction in the travel by Corporates in India.

Though the companys performance during the year was lower than the previous year, the profitability has considerably increased due to strict cost control measures and closure of Loss making Units.

INDUSTRY SCENARIO, RISK FACTORS AND FUTURE OUTLOOK

With the Global economic machinery almost stuttering to a halt during the year 2009-10; the corporate world was engaged in cost cutting via drastic cutbacks on non-essential expenses. The resultant drop in corporate travel, coupled with the travel advisories following the terror attacks and recession and threat of H1N1 Flu led to an adverse effect on the industrys performance.

The slowdown in the tourism sector has had a cascading effect in the hospitality industry with a decrease in the occupancy and Average Room Rates. To combat the drop in revenue due to the global events, stringent cost control measures with no compromise in quality were implemented.

With demand having shrunk, hotels started competing aggressively to capture more business and lure back their old loyalists, who had shifted to lower category hotels because

of the sharp rise in Average Room Rates in the previous few years. At the same time, reservations lead times had diminished considerably and were severely impacting room inventory management.

When compared to the previous year, the current year (2010-11) performance has improved considerably and the economy seems picking up and the result is improving in occupancy rates and increase in the Average Room Rates. This is a positive sign and we hope the economy will improve during the current financial year. Constant efforts are made to upgrade the Hotel to attract the Foreign Tourists.

DIVIDEND

In recognition of the fact that economy is recovering and that tourism growth is expected to continue, your Directors are pleased to recommend a dividend of 12% (Rs.1.20 Ps. per Equity Share) for the year ended March 31, 2010.

SUBSIDIARY COMPANIES

Your Company has obtained an exemption from Ministry of Corporate Affairs from publication of the accounts of its subsidiaries under the provisions of Section 212 of the Companies Act, 1956. The accounts of the subsidiaries are not separately included in the Annual Report. However the consolidated financial statement of its subsidiaries, in accordance with the relevant accounting standards of the Institute of Chartered Accountants of India, duly audited by the Statutory Auditors form a part of this Annual Report and is reflected in the consolidated accounts.

The Financial statements of the subsidiary companies and other detailed information will be made to the investors seeking such information at any point of time. The annual accounts of the subsidiary companies will also be available for inspection at the Registered Office of the Company as well as the respective Registered Offices of Subsidiary Companies.

DIRECTORS

In accordance with the Companies Act, 1956, and the Articles of Association of the Company; three of your Directors viz., Sri M. Chakravarthy, Ms. A. Nivruti Reddy and Sri B. Ranga Reddy retire by rotation and are eligible for re-appointment. The retiring directors being eligible offered themselves for reappointment as Directors in the Company.

AUDITORS

The Auditors M/s. D.A. Reddy & Co., Chartered Accountants, Chennai retire at the forthcoming Annual General Meeting and offered themselves for reappointment.

The Members are requested to reappoint at this Annual General Meeting to the hold the office from the conclusion of ensuing Annual General Meeting to the conclusion of the next Annual General Meeting and authorise the Board of Directors to fix their remuneration.

FIXED DEPOSITS

Your Company has not accepted any Fixed Deposits under the provisions of Section 58A of the Companies Act, 1956 and rules made there under.

CORPORATE GOVERNANCE

As required by Clause 49 of the Listing Agreement with the Stock Exchanges, the report on Management Discussion and Analysis, Corporate Governance as well as the Auditors Certificate regarding compliance of conditions of Corporate Governance, form part of the Annual Report.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 217 (2AA) of the Companies Act, 1956, the Board of Directors, based on the representations received from the Operating Management, hereby confirms that:

a) in the preparation of the annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures.

b) it has in the selection of accounting policies, consulted the Statutory Auditors and has applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the company as at March 31, 2010 and of the profit of the Company for that period.

c) it has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities, to the best of its knowledge and ability. There are however, inherent limitations, which should be recognized while relying on any system of internal control and records; and

d) it had prepared the annual accounts on a going concern basis.

LISTING

The ordinary shares of your Company are listed on the Bombay Stock Exchange Limited, Madras Stock Exchange Limited and National Stock Exchange of India Limited through Madras Stock Exchange Limited.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information required under Sec. 217(1)(e) of the Companies Act, 1956 read with Rule 2 of the Companies (Disclosure of particulars in the report of Board Directors) Rules 1988 is furnished hereunder:

a) Constant efforts are being made to optimise the consumption of Electricity, Diesel, Petrol and Cooking Gas etc. Energy Audits are conducted periodically at different centres of the Hotel and the suggestions are being implemented as a continuous process. The company has started concentrating on the Carbon Credits in energy consumption. In this respect, the company started using LED Lights that consumes less energy and eco - friendly.

b) Hotel being a service industry, technology absorption, transfer etc. is not applicable. Your company strives for updating of the technology adopted by other companies in the Industry throughout the world and adopts the same in its operations for regular customer satisfaction. This includes upgrading of technology in House Keeping, Kitchen Equipments, Online Reservations, Air Conditioning, Audio & Visual Display Systems, Security Systems like Metal Frame Detector, Hand Detector, Closed Circuit Cameras etc., Sewage Treatment Plant (Latest Technology), Wi-Fi Internet, Networking, Hotel Software, Hoardings, LED Lighting, Closed User Group Mobile Systems to staff for faster response to attending to complaints from Guests.

c) Earnings in convertible Foreign Exchange for the year amounted to Rs.2,46,01 Thousands (Previous year Rs.2,11,49 Thousands) for the services rendered to Foreign Tourists. Expenditure in Foreign Currency is Rs.45,18 Thousands (Previous year 31,95 Thousands).

d) Constant efforts are made to upgrade the hotel to attract foreign customers.

INFORMATION ON EMPLOYEES UNDER SECTION 217(2A) OF THE COMPANIES ACT 1956.

The particulars of employees, who were in receipt of a remuneration of Rs.24 Lakhs or more per annum; if employed throughout the year or Rs.2 Lakhs or more if employed for any part of the year is Nil.

RELATIONSHIP WITH EMPLOYEES

The Directors express their appreciation for the contribution made by the employees to the significant improvements in the operations of the company and for the support received from all other stakeholders, including shareholders, customers, suppliers and business partners. Your Directors also wish to place their appreciation for the support given by the Savera Hotel Employees Union during the year under review.

ACKNOWLEDGEMENTS

The Board of Directors take this opportunity to express their gratitude to Central Bank of India, State Bank of Hyderabad, Indian Overseas Bank, South Indian Bank Ltd., and State Bank of Mysore for extending their financial support by way of Loans. They further express their gratitude to the State Governments and Central Government of India for their guidance and support.

For and on behalf of the Board

Place: Chennai A. Ravikumar Reddy A. Nina Reddy

Date: 28. 06.2010 Managing Director Executive Director (Operations)