CHL Limited. Stock Performance Details Shareholding Details September 2015

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1 CHL Limited Date: 13 th January, 216 Stock Performance Details Shareholding Details September 215 Current Price : ` 12.55^ Face Value : ` 2 per share 52 wk High / Low : ` 2.94 / 1.8 Total Traded Volumes: 5 shares^ Market Cap : ` 68.8 crore^ Sector : Hotels EPS (H1 FY16) : ` (.83) per share Equity Share Capital : ` 11. crore P/E (TTM) :. (x)^ P/BV (TTM) :.77 (x)^ Financial Year End : 1 st April 31 st March BSE Scrip Name : CHLLTD BSE Scrip Code : ^ As on 12 th January, 216 Particulars Shareholding Nos. (%) Promoter & Promoter Group Holding 3,92,41, Total Institutional Holdings (FIIs & DIIs) 1,5. Public Holdings 1,55,75, Total 5,48,18,29 1. Background The New Delhi based CHL Ltd., formerly known as Cosmopolitan Hotels has been engaged in the hotel business for over a decade. It has a tie-up with the Sofitel chain of hotels.during , CHL renovated two floors and evolved a marketing strategy to achieve maximum occupancy and average room rate. Hotel Crowne Plaza Surya (CPS), a 5-Star Deluxe Hotel owned by the Company, is located at New Friends Colony in South Delhi. The Hotel is a member of the Inter Continental Hotels Group. CPS offers international service finely entrenched in the age-old Indian tradition. It has 58 Superior Rooms, 88 Deluxe Rooms, 39 Club Deluxe, 33 Club Premier Rooms, 6 Deluxe Suite, 3 Luxury Suite and 1 Presidential Suite. Some of the other offerings of the company include Sampan 92 cover restaurants for authentic Cantonese and Pan Asian restaurant and a panoramic roof top view of the city, Ssence covers the 24 hour multi cuisine restaurant guest can take advantage of the global cuisine-dining facility at the lobby level, catering to all contemporary international taste, Atrium Lounge Bar - one can enjoy the world's finest liquors and sprits, Club one - the fitness center which offers a full fledged Ayurvedic Treatment Center cum Spa, physical therapy, cardiopulmonary rehabilitation and weight control programs. CHL has been implementing a Hotel cum Commercial Complex in Dushanbe for which the land and other port hasbeen given by the Tajkistan Government. CHL International, a Joint Venture Company at Dushanbe, Tajikistan, which promoted a Hotelproject at Dushanbe, Tajikistan has been financed by Export Import Bank of India (EXIM Bank) by way of term loan. TheEXIM Bank has financed the project by sanctioning a further additional term loan of USD 6 Million, thus aggregating the termloan of USD 32.5 Million.The hotel was inaugurated partly in September, 214 due to requirement of rooms by Tajikistan Government for ShanghaiCooperation Organization, under the brand name Sheraton Dushanbe. The soft opening (trial run) of the hotel wascommenced in the last week of December, 214 and it has commenced full operations with effect from 1 st April, 215. An Initiative of the BSE Investors Protection Fund1

2 Financial Snapshot Particulars Standalone(` Million) Income Statement H1 FY16 H1 FY15 Income from Operations Y-o-Y Growth (%) (3.8) 2.4 EBITDA (49.4) (29.7) Y-o-Y Growth (%) (66.3) (16.5) EBITDA Margin (%) (24.2) (14.) Net Profit (45.5) (35.5) Y-o-Y Growth (%) (28.2) (639.6) NPM (%) (22.3) (16.8) Balance Sheet Fixed Assets Cash and Bank Balances Inventories Net Working Capital 14.6 (7.) Net Worth Balance Sheet Ratios ROCE (%) (2.) (.4) RONW (%) (5.4) (4.2) Source: Capitaline From the Research Desk of LKW s Gurukshetra On a Standalone basis, the Company s Income from Operations decreased by 3.8% y-oyto Rs million in H1 FY16 from Rs million reported in H1 FY15. The drop in the Topline for the period under review is mainly due to economic slowdown and sluggish market condition. Also, the Hotel industry in and around Delhi/NCR, and particularly in Delhi is experiencing a tough time due to oversupply of rooms resulting in a downward price war among hotels. Material Cost dropped to Rs. 33 million in H1 FY16 from Rs million reported in H1 FY15. Employee Benefit Expenses decreased to Rs million in H1 FY16 from Rs million reported in H1 FY15. Power & Fuel Expenses stood higher at Rs million in H1 FY16 as compared to Rs million in H1 FY15. Other Expenses increased by 12.6% y-o-y at Rs million in H1 FY16 from Rs million in H1 FY15. CHL reported an Operating Loss with the drop in the Topline coupled with higher Employee Benefit Expenses, Power & Fuel Expenses and Other Expenses. Operating Loss for H1 FY16 stood at Rs million as compared to an Operating Loss of Rs million in H1 FY15. An Initiative of the BSE Investors Protection Fund2

3 Depreciation Cost and Interest Cost marked a decline y-o-y and stood at Rs million and Rs million respectively in H1 FY16. Other Income increased to Rs. 14 million in H1 FY16 from Rs. 9 million in H1 FY15. Net Loss stood at Rs.45.5 million in H1 FY16 as compared to a Net Loss of Rs million reported in H1 FY15. Debtors increased from Rs.22.4 million in H1 FY15 to Rs million in H1 FY16. Cash and Cash Balance fell from Rs million in H1 FY15 to Rs million in H1 FY16. Performance on the Bourses % Stock Performance CHL BSE Small Cap as on 8th January, 216 Peer Comparison The table mentioned below gives a snapshot of the Company s performance vis-à-visother players in the market which operate in a similar business segment for H1 FY16. (` In millions) Particulars CHL Kamat Hotels Sayaji Hotels Income from Operations EBIDTA (49.4) Net Profit (45.5) (143.4) (37.6) EBIDTA Margins (%) (24.2) PAT Margins (%) (22.3) (21.7) (5.5) Book Value Per Share 16.3 (1.9) 47.2 P/E (x).^.^.^ P/BV (x).76^.^ 3.58^ RONW (%) (5.4) (35.2) (4.2) Source: Capitaline Financials on Standalone Basis; ^ On a Standalone Basis as on September, 215 (TTM Basis) An Initiative of the BSE Investors Protection Fund3

4 About the Industry Management Outlook The Indian tourism and hospitality industry has emerged as one of the key drivers of growth in the services sector in India. It is the third-largest subsegment of the services sector comprising trade, repair services, hotels and restaurants contributed nearly US$ billion or 12.5% to the GDP in , while growing the fastest at 11.7% CAGR over the period to Tourism in India has good potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country. The number of Foreign Tourist Arrivals (FTAs) had grown steadily in the last three years reaching around 4.5 million during January July 215. Foreign Exchange Earnings (FEEs) from tourism in terms of the US dollar grew by 3.2% during January-July 215 as compared to 1.9% over the corresponding period of 213. FEEs during the month of July, 215 stood atrs. 11,452 crore (US$ 1.74 billion) as compared to FEEs of Rs. 1,336 crore (US$ 1.57 billion) in July last year.foreign Exchange Earnings (FEEs) between January-July 215 stood at US$ billion compared to US$ 11.6 billion in the same period last year. The growth rate in FEEs in rupee terms in January-July 215 was 6.9%. The tourism and hospitality sector is among the top 15 sectors in India that attract the highest Foreign Direct Investment (FDI). During the period April 2-May 215, this sector attracted around US$ 8.1 billion of FDI, according to the data released by Department of Industrial Policy and Promotion (DIPP).With the rise in the number of global tourists and India growth potential, many companies have invested in the tourism and hospitality sector. The Government of India plans to cover 15 countries under e-visa scheme besides opening an airport in the NCR region in order to ease the pressure on Delhi airport. The Tourist Visa on Arrival (TVoA) scheme enabled by Electronic Travel Authorisation (ETA), launched by the Government of India on November 27, 214 for 43 countries has led to sharp growth in usage of the facility. During the month of July, 215 a total of 21,476 tourist arrived on e-tourist Visa as compared to 2,462 during the month of July, 214 registering a growth of per cent. During January-July, 215 a total of 1,47,69 tourist arrived on e-tourist Visa as compared to 14,415 during January-July, 214 registering a growth of 924.6%. The Government of India has set aside Rs. 5 crore (US$ million) for the first phase of the National Heritage City Development and Augmentation Yojana (HRIDAY). The 12 cities in the first phase are Varanasi, Amritsar, Ajmer, Mathura, Gaya, Kanchipuram, Vellankani, Badami, Amaravati, Warangal, Puri and Dwarka. The tourism industry is looking forward to the expansion of E-visa scheme which is expected to double the tourist inflow to India. Rating agency ICRA estimates the revenue growth of Indian hotel industry strengthening to 9-11% in India is projected to be the fastest growing nation in the wellness tourism sector in the next five years, clocking over 2% gains annually through 217, according to a study conducted by SRI International. Certain potential challenges and risks faced by CHLwhile operating in the hotel industry are the rise in raw material prices, downturn inth economy, civil disturbances and war like situations. An Initiative of the BSE Investors Protection Fund4

5 Financial Graphs 25 Net Income from Operations ` in Million H1 FY15 H1 FY16 EBIDTA & EBIDTA Margins ` in Million % -6 H1 FY15 H1 FY16-28 EBIDTA EBIDTA Margins PAT & PAT Margins ` in Million % -5 H1 FY15 H1 FY16-24 PAT PAT Margins An Initiative of the BSE Investors Protection Fund5

6 Disclaimer All information contained in the document has been obtained by LKW s Gurukshetra from sources believed to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided as is without any warranty of any kind, and LKW s Gurukshetra in particular makes no representation or warranty express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements based on available data, and LKW s Gurukshetra shall not be liable for any losses incurred by users from any use of this document or its contents in any manner. Opinions expressed in this document are not the opinions of our company and should not be construed as any indication of our recommendation to buy, sell or invest in the company under coverage. Disclosure Each member of the team involved in the preparation of this report, hereby affirms that there exists no conflict of interest. The report has been sponsored and published as part of Initiative of BSE s Investors Protection Fund About Us LOTUS KNOWLWEALTH (LKW) commenced business in 1991 and is currently engaged in providing CAPITAL MARKET RESEARCH, INVESTMENT ADVISORY and STRATEGY services. GURUKSHETRA is the Research and Training arm of LKW. LKW Investment Advisers is the SEBI registered Investment Advisory arm of LKW. 5 Contact Us LOTUS KNOWLWEALTH Pvt. Ltd. Regd.Office:B Wing, 55-56, Fairlink Centre, Off Andheri Link Road, Andheri (W), Mumbai enquiry@lotusknowlwealth.com Tel: Website: An Initiative of the BSE Investors Protection Fund6