BRIGADE HOSPITALITY SERVICES LIMITED

Transcription

1 BRIGADE HOSPITALITY SERVICES LIMITED ANNUAL REPORT

2 N O T I C E Notice is hereby given that the Twelfth Annual General Meeting of Brigade Hospitality Services Limited will be held on Tuesday, 30 th August, 2016 at 9.30 a.m. at the Board Room, 30 th Floor, World Trade Center, Brigade Gateway Campus, 26/1, Dr. Rajkumar Road, Malleswaram Rajajinagar, Bangalore to transact the following business: ORDINARY BUSINESS 1. To receive, consider and adopt the Audited Balance Sheet and Audited Profit & Loss Account for the financial year ended 31 st March, 2016 and the reports of the Board of Directors and the Auditors thereon. 2. To appoint the Directors in place of Mr. Balaram Menon who retires by rotation and being eligible, offers himself for reappointment. 3. To appoint the Directors in place of Ms. Nirupa Shankar who retires by rotation and being eligible, offers herself for reappointment. 4. To ratify the appointment of Statutory Auditors and in this regard to consider and, if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: RESOLVED THAT pursuant to the provisions of Section 139 read with Rule 3 of the Companies (Audit and Auditors) Rules, and all other applicable provisions, if any, of the Companies Act, 2013 (including any statutory modification(s) or reenactment thereof for the time being in force) and based on the recommendations of the Board, approval of the Shareholders be and is hereby accorded to ratify the appointment of M/s B.K. Ramadhyani & Co., Chartered Accountants (Registration No S) as Statutory Auditors of the Company from the conclusion of Twelfth Annual General Meeting until the conclusion of the Thirteenth Annual General Meeting on such remuneration as may be finalized by the Board of Directors in consultation with the Statutory Auditors. SPAECIAL BUSINESS 5. To Consider and thought fit, to pass with or without modification(s) the following resolution as a Special Resolution: RESOLVED THAT pursuant to the provisions of Section 196, 197 and 203 of the Companies Act, 2013 read with schedule V and all other applicable provisions of the Companies Act, 2013 and the Companies (Appointment and Qualification of Directors) Rules, 2014 (including any statutory modification(s) or reenactment thereof for the time being in force), approval be and hereby given for the reappointment of Mr. Vineet Verma as a Wholetime Director (Executive Director) of the Company for a period of 3 years with effect from 1 st December, 1

3 2015 on an overall remuneration of 1,19,69,130/ (Rupees one crore nineteen lakhs sixty nine thousand one hundred and thirty only) per annum as detailed below: i. Basic Salary : 2,27,990/ per month ii. Allowance: 4,63,975/ per month iii. Annual Benefits: 2,48,590/ per annum iv. Retiral Benefits : 1,53,130/ per annum v. Annual Performance Linked Pay :22,27,990/ per annum vi. Perquisites & other benefits : 10,35,840/ per annum RESOLVED FURTHER THAT Mr. M.R. Jaishankar, Chairman & Managing Director and Mr. P. Om Prakash, Company Secretary of the Company be and are hereby authorized to do all such acts, deeds and things as may be necessary for effecting the aforesaid resolution in his absolute discretion and to sign, execute all necessary documents, applications, returns as may be required. 6. To Consider and thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution: RESOLVED THAT pursuant to the provisions of Section 181 and other applicable provisions, if any of the Companies Act, 2013, the consent of the Shareholders be and is hereby accorded to the Board of Directors of the Company to contribute and/or donate an amount upto 5 Crores (Rupees Five Crores only) in one or more tranches, in any financial year, either directly or through a non profit organization, or in any other way as considered appropriate by the Board to Brigade Foundation Trust or to such other institutions including any bona fide charitable and other funds as may be deemed fit and appropriate by the Board of Directors of the Company from time to time. RESOLVED FURTHER THAT the Board of Directors and Company Secretary of the Company be and are hereby severally authorised to do all such acts, deeds and things that may be necessary to give effect to this resolution. Place: Bangalore Date: 3 rd May, 2016 By Order of the Board For Brigade Hospitality Services Limited Registered Office 29 th Floor, World Trade Center Brigade Gateway Campus, 26/1, Dr. Rajkumar Road MalleswaramRajajinagar Bangalore Sd/ P. Om Prakash Company Secretary 2

4 NOTES: 1. The Statement pursuant to Section 102 (1) of the Companies Act, 2013 with respect to the Special Business set out in the Notice is annexed hereto. 2. A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE ON HIS / HER BEHALF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. Pursuant to the provisions of Section 105 of the Companies Act, 2013, a person can act as a proxy on behalf of not more than fifty members and holding in aggregate not more than ten percent of the total share capital of the Company. Members holding more than ten percent of the total share capital of the company may appoint a single person as proxy, who shall not act as proxy for any other Member. 3. The instrument of proxy, in order to be effective, should be deposited at the Registered Office of the Company duly completed and signed, not later than 48 hours before the commencement of the meeting. A proxy form is annexed to this Report. 4. Members / proxies should bring the duly filled Attendance Slip enclosed herewith to attend the meeting. 3

5 Statement pursuant to Section 102 of the Companies Act, 2013: Item No.5: Board of Directors of the Company based on recommendation of Nomination and Remuneration Committee has proposed for reappointment of Mr. Vineet Verma as a Wholetime Director (Executive Director) of the Company for a period of 3 years with effect from 1 st December, 2015 on an overall remuneration of 1,19,69,130/ (Rupees one crore nineteen lakhs sixty nine thousand one hundred and thirty only) per annum, subject to approval of the Shareholders in the General Meeting. Mr. Vineet Verma, 56 years, holds a graduate degree in Science and he is a professional have rich experience in the fields of hospitality & business management including hotels, business clubs and food courts. He was actively involved in activities of several Chambers of Commerce. He was also the member, governing Body of concern for Kolkata, a Leading NGO in West Bengal. Prior approval of Shareholders is necessary approval of Board of Directors for Reappointment Mr. Vineet Verma, as a Wholetime Director (Executive Director) with proposed remuneration of 1,19,69,130/ p.a. pursuant to the Provisions of Section 196, 197 and 203 read with Schedule V to the Companies Act, The Disclosure pursuant to Schedule V of the Companies Act, 2013 are as follows: SI. No Particulars Descriptions I. General Information: 1. Nature of industry Hospitality Industry 2. Date or expected date of 01/06/2004 commencement of commercial production 3. In case of New Companies, expected date of commencement of activities as per project approved by financial NA institutions appearing in the prospectus 4. Financial performance based on given indicators 5. Foreign Investments or NA Collaborations, if any II. Information about the appointee: 1. Background details Appointed as a Wholetime Director (Executive Director) from 1 st December, Past remuneration 1,11,26,540/ 3. Recognition or awards Felicitated by the Bangalore Chamber of Industry & Commerce at their 38 th AGM 4

6 for his contribution during as Chairman of the Tourism, Media & Leisure Committee 4. Job Profile and his Suitability His professional and rich experience in the hospitality and retail business for nearly 3 decades makes him the perfect fit for the position of Wholetime Director (Executive Director) 5. Remuneration Proposed 1,19,69,130/ 6. Comparative remuneration profile with respect to industry, size of the Company, profile of the position and person 7. Pecuniary relationship directly or indirectly with the Company, or relationship with the managerial Personnel, if any. III. Other information: His professional and rich experience in the hospitality and retail business makes him the perfect fit for the said position NA 1. Reasons of loss or inadequate profits The Company is in the process of scaling up its operations due to which profits are inadequate to pay the minimum required limits of remuneration. 2. Stapes take or proposed to be taken for improvement 3. Expected increase in productivity and profits in measurable terms The process of scaling up operations is on and the benefits of the same will be reflected in the coming years. The scale of operations of the Company is expected to grow exponentially in the coming years. The sales and profits are expected to grow at a CAGR of 25% both on sales as well as profitability The Board of Directors recommend the resolution No.5 approval by the Shareholders as a Special Resolution. None of the Directors, Key Managerial Personnel and their relatives are concerned or interested either financially or otherwise in the Resolution. Item No.6: Your Company is proposing to authorise the Board of Directors of the Company ( the Board ) to contribute upto 5 crores in any financial year for charitable purposes, either directly or through any non profit organization or in any other way considered appropriate. 5

7 Pursuant to provisions of Section 181 of the Companies Act, 2013, the Board may contribute to bona fide charitable and other funds provided that prior permission of the Company in a general meeting is necessary for making contributions the aggregate of which, in any financial year, exceeds 5% of the average net profits of the Company as determined in accordance with the provisions of Section 198 of Companies Act, 2013 for the three immediately preceding financial years. Subject to approval of the Shareholders of the Company, the Board may contribute to bona fide charitable and other funds in one or more tranches to Brigade Foundation Trust or to such other institutions from time to time, an amount exceeding 5% of the average net profits of the Company for the three immediately preceding financial years, subject to the maximum of 5 Crores in a financial year. Accordingly, it is proposed to obtain members approval by way of an Ordinary Resolution for contributing upto 5 Crores in any financial year as the Board may deemed fit. None of the Promoters, Directors, Key Managerial Personnel or their relatives are interested, financial or otherwise, if any in the Resolution No.6 of the accompanying Notice except to the extent of their Shareholding, if any in the Company. The Directors recommend the Resolution No.6 of the Notice for consent and approval by the Shareholders as an Ordinary Resolution. Place: Bangalore Date: 3 rd May, 2016 By Order of the Board For Brigade Hospitality Services Limited Sd/ P. Om Prakash Company Secretary Registered Office 29 th Floor, World Trade Center Brigade Gateway Campus, 26/1, Dr. Rajkumar Road MalleswaramRajajinagar Bangalore

8 BRIGADE HOSPITALITY SERVICES LTD. CIN: U55101KA2004PLC Regd. Off. : 29 th Floor, World Trade Center, Brigade Gateway Campus, 26/1, Dr.Rajkumar Road, MalleswaramRajajinagar, Bangalore Twelfth Annual General Meeting on 30 th August, 2016 at 9.30 a.m. ATTENDANCE SLIP (To be handed over at the entrance of the Meeting Hall) CLID/ Folio No. : DPID. : No. of Shares held : I certify that I am a Registered Shareholder/Proxy for the Registered Shareholder of the Company. I hereby record my presence at the Twelfth Annual General Meeting of the Company being held on Tuesday, 30 th August, 2016 at a.m. at the Board Room, 30 th Floor, World Trade Center, Brigade Gateway Campus, 26/1, Dr.Rajkumar Road, MalleswaramRajajinagar, Bangalore Name of the Member/Proxy (in Block Letters ) Signature of Member / Proxy Notes: A member/proxy wishing to attend the meeting must fill up this Attendance Slip and hand it over at the entrance. If you intend to appoint a proxy, please complete the proxy form below and deposit it at the Company s Registered Office atleast 48 hours before the meeting. BRIGADE HOSPITALITY SERVICES LTD. CIN: U55101KA2004PLC Regd. Off. : 29 th Floor, World Trade Center, Brigade Gateway Campus, 26/1, Dr.Rajkumar Road, MalleswaramRajajinagar, Bangalore Twelfth Annual General Meeting 30 th August, 2016 at 9.30 a.m. CLID/ Folio No. : DPID. : No. of Shares held : PROXY FORM I/ We of in the district of being Member(s) of Brigade Hospitality Services Limited hereby appoint of in the district of or failing him/her appoint of in the district of as my/our proxy to attend and vote for me/us on my/our behalf at the Twelfth Annual General Meeting of the Company to be held on Tuesday, 30 th August, 2016 at 9.30 a.m. at the Board Room, 30 th Floor, World Trade Center, Brigade Gateway Campus, 26/1, Dr.Rajkumar Road, Malleswaram Rajajinagar, Bangalore and at any adjournment thereof. Name of the Member/Proxy (in Block Letters ) Signature of Member / Proxy Notes: This proxy form duly completed must be received at the Company s Registered Office at least 48 hours before the meeting. 7

9 BOARD S REPORT Dear Members We have pleasure in presenting the Twelfth Annual Report on business and operations of the Company together with the Audited Statement of Accounts for the financial year ended 31 st March, FINANCIAL HIGHLIGHTS: The financial highlights of the Company for the year ended 31 st March, 2016 is as follows: (Rupees in lakhs) Particulars Total Income Total Expenditure Depreciation Prior period adjustments Profit before tax Provision for : Current Tax Prior year Tax Deferred Tax Net Profit/(Loss) after Tax Balance in Profit & Loss Account brought forward from (75) (270) previous year Balance carried to Balance Sheet 158 (75) FINANCIAL OVERVIEW: During the year Company achieved a turnover of 3948 lakhs as against 4064 lakhs during the previous year, a decrease by 2.85%. The net profit after tax was at 233 lakhs as against 195 lakhs in the previous year, an increase by 19.48%. All the existing units of the Company are in the process of scaling up its operations. The benefits of the same will be reflected in better sales growth and profitability margins in the near future. HOLDING/ SUBSIDIARIES AND ASSOCIATES: The Company is a wholly owned subsidiary of Brigade Enterprises Limited. Celebrations Catering & Events LLP is a subsidiary of the Company as per Accounting Standards. 1

10 FINANCIAL STATEMENTS OF SUBSIDIARIES AND ASSOCIATE COMPANIES: In accordance with the provisions of Section 129(3) of the Companies Act, 2013 the consolidated financial statements have been prepared by the Company which forms part of this Annual Report. A statement containing the salient features of the financial statements of subsidiary associates as required in Form AOC1 is attached as Annexure1 to this Report. TRANSFER TO RESERVES: An amount of 73,78,452/ has been transferred out of the current year s profits to General Reserves. DIVIDEND: Directors have not recommended any dividend for the year. FIXED DEPOSITS: The Company has not accepted any deposits in terms of Chapter V of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014, during the year under review. Accordingly, no amount is outstanding as on the balance sheet date. SHARE CAPITAL: There has been no change in the Share Capital of the Company during the year. DEBENTURES: During the year under review, the Company has not issued any Debentures. As on date, the Company does not have any outstanding Debentures. BOARD OF DIRECTORS: The Board of Directors of the Company comprises of Seven Directors of which 2 are Executive Directors and 5 NonExecutive Directors in which 2 Directors are categorised as an Independent Directors. In accordance with the Articles of Association of the Company and the provisions of Section 152(6)(e) of the Companies Act, 2013, Mr. Balaram Menon, (DIN: ) and Ms. Nirupa Shankar (DIN: ) Directors of the Company will retire by rotation at the ensuing Annual General Meeting and being eligible, offers themself for reappointment. 2

11 The Board of Directors at their meeting held on 24 th April, 2015 have appointed Mr. Mohan Parvatikar (DIN: ) as an Additional Director of the Company in the category of Independent Director with effect from 24 th April, 2015 and he has reappointed in the Eleventh Annual General Meeting held on 23 rd September, The above Independent Director have given declarations that he meet the criteria of independence as laid down under Section 149(6) of the Companies Act, None of the Directors of the Company are disqualified under Section 164(2) of the Companies Act, BOARD MEETINGS: During the year under review, the Board of Directors of the Company met 4 times on the following dates: Dates on which Board Meetings were Held Total Strength of the Board No of Directors Present 24 th April, (Six) 5(Five) 23 rd July, (Seven) 7 (Seven) 17 th October, (Seven) 4(Four) 19 th January, (Seven) 6(Six) ATTENDANCE OF DIRECTORS AT BOARD MEETINGS AND ANNUAL GENERAL MEETING: The Board of Directors of the Company have attended the Board & Annual General Meetings as per the following details: Name of the Director Board meetings attended in the financial year Attendance in the 11 th Annual General Meeting held on 23 rd September, 2015 Mr. M.R Jaishankar 4(Four) Yes Ms. Githa Shankar 3(Three) Yes Ms. Nirupa Shankar 2(Two) Yes Mr. Vineet Verma 4(Four) Yes Mr. M.S. Ravindra 2(Two) Yes Mr. P. Balaram Menon 4(Four) Yes Mr. Mohan Parvatikar 3(Three) Yes 3

12 AUDIT COMMITTEE: The Audit Committee of the Company comprises of the following members as on 31 st March, During the year your Board had reconstituted the Committee upon induction of Independent Director in accordance with section 177 of the Companies Act, 2013: 1. Mr. Balaram Menon Chairman 2. Mr. M. S. Ravindra Member 3. Mr. M. R. Jaishankar Member 4. Mr. Mohan Parvatikar Member NOMINATION & REMUNERATION COMMITTEE: During the year your Board had changed the nomenclature of the Remuneration Committee to Nomination & Remuneration Committee and reconstituted the Committee on the induction of a new Independent Director. The members of the Committee are as follows: 1. Mr. Balaram Menon Chairman 2. Mr. M. S. Ravindra Member 3. Mr. Mohan Parvatikar Member POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION: The Directors of the Company are appointed by the members at annual general meetings in accordance with the provisions of the Companies Act, 2013 and the rules made thereunder. The Company has adopted the provisions of the Companies Act, 2013 relating to the appointment and tenure of Independent Directors. The Company s Remuneration Policy for Directors, Key Managerial Personnel and Senior Management Personnel is contained in Annexure2. DIRECTORS RESPONSIBILITY STATEMENT: The Board of Directors hereby confirms that: a) in the preparation of the annual financial statements for the year ended 31 st March, 2016, the applicable accounting standards have been followed along with proper explanation relating to material departures; 4

13 b) the Directors had 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 and of the profit of the Company for that period; c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) the annual financial statements have been prepared on a going concern basis; e) there are proper systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively. CHANGES IN KEY MANAGERIAL PERSONNEL: During the year under review the Board of Directors has reappointed Mr. Vineet Verma as an Executive Director of the Company for a period of 3 years with effect from 1 st December, 2015 subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company. There are no other changes in the Key Management Personnel. Mr. Ananda Natarajan is the CFO & Mr. P. Om Prakash is the Company Secretary who were the Key Management Personnel in the previous year as well, PARTICULARS OF EMPLOYEES: The details of the employees drawing remuneration in excess of the limits prescribed in Section 134 read with the Rule 5(2) & 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 of the Companies Act, 2013, is appended as Annexure3. STATUTORY AUDITORS: The members of the Company at the Tenth Annual General Meeting held on 4 th August, 2014 approved the appointment of M/s. B. K. Ramadhyani & Co, Chartered Accountants (Registration No S), Statutory Auditors of the Company for a period of 5 years till the conclusion of Fifteenth Annual General Meeting, which is subject to annual ratification by the members of the Company in terms of Section 139 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, The resolution relating to annual ratification of statutory auditors appointment is part of the notice of the Twelfth Annual General Meeting. Members may ratify the appointment of 5

14 M/s. B. K. Ramadhyani & Co, Chartered Accountants as the Statutory Auditors of the Company for the financial year There are no qualifications or adverse remarks in the Statutory Auditors Report for the financial statements for the year ended 31 st March, 2016 which require any explanation from the Board of Directors. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS: Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES: The related party transactions entered during the financial year as detailed in Notes to Accounts of the financial Statements and which are carried at arms length basis and in normal course of business. EXTRACT OF ANNUAL RETURN: In terms of Section 92 (3) of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014, the extract of the Annual Return of the Company for the financial year in Form No. MGT9 is appended as Annexure4 to this Report. MATERIAL CHANGES AND COMMITMENTS: There were no material changes and commitments for the period under review, which affects the financial position of the company. SIGNIFICANT OR MATERIAL ORDERS: During the financial year under review, no significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status and the Company s operations in the future. INTERNAL FINANCIAL CONTROL SYSTEM: The Company has adequate internal financial control systems in place with reference to the financial statements. During the year under review, these controls were evaluated and no significant weakness was identified either in the design or operation of the controls. 6

15 RISK MANAGEMENT: The Board of Directors and Audit Committee have been entrusted with the responsibility for establishing policies to monitor and evaluate risk management systems of the Company. As a part of their scope, the Deloitte Haskins & Sells, LLP, Internal Auditors of the Company undertake the evaluation of processes in different departments/units of the Company and the same is presented to the Audit Committee/ Board of Directors on a quarterly basis. The business risks identified are reviewed by the Audit Committee and a detailed action plan to mitigate identified risks is drawn up and its implementation monitored. The key risks and mitigation actions will also be placed before the Board of Directors of the Company on a periodic basis. CORPORATE SOCIAL RESPONSIBILITY: The provisions relating to Corporate Social Responsibility are not applicable to the Company as on 31 st March, However the Company and the Group have been engaged in Corporate Social Responsibility activities in and around its operating properties of the Company. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO: A. CONSERVATION OF ENERGY: The Company is engaged in service sector, has limited scope for energy conservation. Emphasis is being laid on employing techniques which result in conservation of energy. At work place, emphasis is more on installation of energy efficient lights and using natural light to a maximum extent. B. TECHNOLOGY ABSORPTION: NIL C. FOREIGN EXCHANGE EARNINGS AND OUTGO: During the year under review, the Company has neither earned nor used any foreign exchange. HUMAN RESOURCES: Many initiatives have been taken to support business through organizational efficiency, process change support and various employee engagement programmes. Your Company has currently 298 employees. A significant effort has also been undertaken to develop leadership as well as technical/functional capabilities in order to meet future talent requirement. Brigade Enterprises Limited, the Holding Company has framed a policy for Prevention of Sexual Harassment in the organization. The policy is applicable for all Companies in the Group. The 7

16 Complaints Redressal Committee for prevention and redressal of complaints on sexual harassment of women at work place in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 and relevant rules thereunder. During the period under review, there were no such instances reported in the Company. ACKNOWLEDGEMENTS: The Directors wish to place on record their appreciation and sincere thanks to all the stakeholders for the continued support and patronage. We look forward to your support and cooperation as the Company marches ahead with its growth plans. By order of the Board For Brigade Hospitality Services Limited Sd/ Sd/ Vineet Verma Nirupa Shankar Place: Bangalore Executive Director Director Date : 3 rd May, 2016 DIN: DIN:

17 Annexure1 Form AOC1 (Pursuant to first proviso to subsection (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures Part A : Subsidiaries (Amount in Rs Lakhs) Particulars Celebration Catering and Events, LLP Reporting period Reporting currency INR Share capital 30 Reserves & surplus 128 Total Assets 257 Total Liabilities 257 Investments Turnover 917 Profit before Taxation 169 Provision for Taxation 57 Profit after Taxation 112 Proposed Dividend % of Shareholding 95% Notes: 1. Name of subsidiary which is yet to commence the operations: NA 2. Names of subsidiaries which have been liquidated or sold during the year: NA 9

18 Annexure2 Remuneration policy for Directors, Key Managerial Personnel and Senior Management Personnel 1) PREAMBLE Brigade Group strives to ensure the highest levels of integrity, quality and service in its business. The observance of highest standards & levels of transparency, accuracy, accountability and reliability on the organisation cascades from the Board of Directors across various business units/segments. Brigade Hospitality Services Limited is committed to ensure that remuneration commensurate with the role and responsibilities is paid to the directors, key managerial personnel and senior management personnel. The remuneration policy for directors, key managerial personnel and senior management personnel has been formulated in accordance with the requirements of the Companies Act, 2013 The key objectives of the remuneration policy are as follows: To achieve a performancedriven work culture that generates organisational growth To attract, retain, motivate the best talent, to run the business efficiently and effectively To provide clear focus and measurement on key objectives with a meaningful link to rewards 2) DEFINITIONS: a. Director: Director means a person who has been inducted on the Board of Brigade Hospitality Services Limited. b. Executive Director means the Directors who are in wholetime employment of the Company viz. Managing Director and Wholetime Director. c. Non Executive Director means Directors who are not in wholetime employment of the Company. d. Independent Directors means Directors appointed in accordance with Section 2(47), 149 of the Companies Act,

19 e. Key Managerial Personnel means the Chief Executive Officer or Managing Director or Wholetime Director or Manager Chief Financial Officer Company Secretary Such other person as may be prescribed under the Companies Act, f. Senior Management Personnel means employees who are on level below the Board of Directors apart from Key Managerial Personnel. g. Nomination & Remuneration Committee means the Committee constituted pursuant to the provisions of Section 178 of the Companies Act, ) POLICY SCOPE The remuneration policy is the guiding principle on the basis of which the Nomination & Remuneration Committee will recommend to the Board of Directors the remuneration payable to Directors, Key Managerial Personnel and Senior Managerial Personnel. 4) REMUNERATION TO EXECUTIVE DIRECTORS, KEY MANAGERIAL PERSONNEL & SENIOR MANAGEMENT PERSONNEL The Nomination & Remuneration Committee recommends the remuneration payable to the Executive Directors based on which the Board of Directors of the Company fix the remuneration of the Executive Directors within the limits approved by the shareholders. The Nomination & Remuneration Committee will recommend the remuneration payable to Key Managerial Personnel based on which the Board of Directors will fix the remuneration. In case of any Key Managerial Personnel on the Board then the remuneration fixed should be within the limits approved by the shareholders. The remuneration structure for Executive Directors, Key Managerial Personnel and Senior Management Personnel shall consist of the following components: Basic Pay Perquisites and Allowances Employee Stock Options (ESOP only for Key Managerial Personnel & Senior Management Personnel who are not on the Board) Variable Pay (Applicable only for Key Managerial Personnel & Senior Management Personnel who are not on the Board) 11

20 Retiral Benefits The remuneration of Executive Directors, Key Managerial Personnel and Senior Management Personnel are fixed by the Board based on the recommendation of the Nomination & Remuneration Committee on basis of individual s qualification, experience, expertise, core competencies, job profile, positive attributes and industry standards. As regards to the Key Managerial Personnel who are not on the Board, variable pay will be based on a weighted average factor of individual performance, department performance and Company s performance. 5) REMUNERATION TO NONEXECUTIVE DIRECTORS Non Executive Directors are entitled to sitting fees for attending the meetings of the Board and Committees. 6) REMUNERATION PAYABLE TO OTHER EMPLOYEES Employees are assigned bands based on a grading structure. The assignment of a particular band is dependent on their educational qualification, work experience, skill sets, competencies and the role & responsibilities they will be discharging in the Company. Individual remuneration is based on various factors as listed above apart from industry standards. 12

21 ANNEXURE 3: INFORMATION AS PER SECTION 134 OF THE COMPANIES ACT, 2013 READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) AMENDMENT RULES, 2011 AND FORMING PART OF THE BOARD'S REPORT FOR THE YEAR ENDED 31 ST MARCH 2016 S. No. Name of the Employee 1 Vineet Verma Designation Qualification Executive Director Age (Years) Joining Date Experience (Years) Gross Remunerati on (in lacs) Annual Last Employme nt B. Sc Bengal Ambuja, Kolkata Last Designation Chief Executive Officer 13

22 ANNEXURE4 FORM NO. MGT 9 EXTRACT OF ANNUAL RETURN As on financial year ended on Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, I. REGISTRATION & OTHER DETAILS: 1 CIN 2 Registration Date 3 Name of the Company 4 Category/Subcategory of the Company Address of the Registered office & contact details Whether listed company Name, Address & contact details of the Registrar & Transfer Agent, if any. NA U55101KA2004PLC st June, 2004 Brigade Hospitality Services Limited Company Limited by Shares Indian Non Government Company 29th Floor, World Trade Center, Brigade Gateway Campus, 26/1, Dr. Rajkumar Road, Malleswaram Rajajinagar, Bangalore omprakash@brigadegroup.com No Tel: II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10 % or more of the total turnover of the company shall be stated) S. No. Name and Description of main products / services NIC Code of the Product/service % to total turnover of the company 1 1 Restaurants and mobile food services activities % Accommodation activities % III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES Name and Address of the company CIN/GLN Brigade Enterprises Limited 29th & 30thFlr,World Trade Center,26/1,Brigade Gateway, Dr. L85110KA1995PLC Rajkumar Road, MalleswaramRajajinagar, Bangalore Holding /Subsidiary/Associate Holding Company % of Shares held 99.90% Applicable Section 2(46) IV. SHAREHOLDING PATTERN (Equity share capital breakup as percentage of total equity) (i) Categorywise Share Holding Category of No. of Shares held at the beginning of the year Shareholders A. Promoters (1) Indian a) Individual/ HUF b) Central Govt c) State Govt(s) d) Bodies Corp. e) Banks / FI f) Any other Sub Total (A) (1) Demat Physical Total % of Total Shares No. of Shares held at the end of the year Demat Physical Total % of Total Shares % Change during the year 10,000 10, % 10,000 10, % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 99,90,000 99,90, % 99,90,000 99,90, % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1,00,00,000 1,00,00, % 1,00,00,000 1,00,00, % 0.00% (2) Foreign a) NRI Individuals b) Other Individuals c) Bodies Corp. d) Any other 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

23 Sub Total (A) (2) TOTAL (A) 0.00% 0.00% 0.00% 1,00,00,000 1,00,00, % 1,00,00,000 1,00,00, % 0.00% B. Public Shareholding 1. Institutions a) Mutual Funds b) Banks / FI c) Central Govt d) State Govt(s) e) Venture Capital Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% f) Insurance Companies g) FIIs h) Foreign Venture Capital Funds i) Others (specify) Subtotal (B)(1): 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2. NonInstitutions a) Bodies Corp. i) Indian ii) Overseas b) Individuals i) Individual shareholders holding nominal share capital upto 1 lakh 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh c) Others (specify) Directors Non Resident Indians Overseas Bodies Foreign Nationals Clearing Members Employees HUF Corporate Trusts Foreign Bodies D R Subtotal (B)(2): Total Public (B) C. Shares held by Custodian for GDRs & ADRs Grand Total (A+B+C) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1,00,00,000 1,00,00, % 1,00,00,000 1,00,00, % 0.00%

24 (ii) Shareholding of Promoters SN Shareholder s Name Shareholding at the beginning of the year No. of Shares % of total Shares of the company % of Shares Pledged/ encumbered to total shares No. of Shares Shareholding at the end of the year % of total Shares of the company % of Shares Pledged / encumbered to total shares % change in shareholding during the year 1 Brigade Enterprises Ltd. 99,89, % 99,89, % 0.00% 2 Mr. M.R. Jaishankar % % 0.00% 3 Ms. Githa Shankar % % 0.00% 4 Brigade Enterprises Ltd. jointly with Mr. M. R. Jaishankar % % 0.00% 5 Brigade Enterprises Ltd. jointly with Ms. Githa Shankar % % 0.00% 6 Brigade Enterprises Ltd. jointly with Ms. Nirupa Shankar % % 0.00% 7 Brigade Enterprises Ltd. jointly with Mr.Vineet Verma % % 0.00% (iii) Change in Promoters Shareholding (please specify, if there is no change) SN Particulars Date Reason Shareholding at the beginning of the year Cumulative Shareholding during the year No. of shares % of total shares No. of shares % of total shares At the beginning of the year ,00,00, % Changes during the year No Change 0.00% At the end of the year ,00,00, % 1,00,00, % (iv) Shareholding Pattern of top ten Shareholders : NIL (Other than Directors, Promoters and Holders of GDRs and ADRs) (v) Shareholding of Directors and Key Managerial Personnel SN Shareholding of each Directors and Date Reason Shareholding at the beginning of the year Cumulative Shareholding during the year each Key Managerial Personnel No. of shares % of total shares No. of shares % of total shares 1 Mr. M.R. Jaishankar At the beginning of the year , % Changes during the year No Change At the end of the year , % 5, % 2 Ms. Githa Shankar At the beginning of the year Changes during the year At the end of the year , % 0.00% No Change 0.00% , % 5, % V. INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment. Particulars Secured Loans excluding deposits Unsecured Loans Deposits Total Indebtedness (Amt. /Lacs) Indebtedness at the beginning of the financial year i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due Total (i+ii+iii)

25 Change in Indebtedness during the financial year * Addition * Reduction Net Change Indebtedness at the end of the financial year i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due Total (i+ii+iii) VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Wholetime Directors and/or Manager: SN. Particulars of Remuneration Name Designation Name of MD/WTD/ Manager Vineet Verma Whole Time Director Total Amount (Rs/Lac) 1 Gross salary (a) Salary as per provisions contained in section 17(1) of the Incometax Act, ,02,71, ,02,71, (b) Value of perquisites u/s 17(2) Incometax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income tax Act, Stock Option 3 4 Sweat Equity Commission as % of profit others, specify 5 Others, please specify Total (A) 1,02,71, ,02,71, Ceiling as per the Act B. Remuneration to other Directors: NIL C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD SN. Particulars of Remuneration Name Designation Ananda Natarajan CFO Name of Key Managerial Personnel 1 Gross salary (a) Salary as per provisions contained in section 17(1) of the Incometax Act, ,20, Total Amount (Rs/Lac) 25,20, (b) Value of perquisites u/s 17(2) Incometax Act, 1961 (c) Profits in lieu of salary under section 17(3) Incometax Act, Stock Option 3 Sweat Equity Commission 4 as % of profit others, specify 5 Others, please specify Total 25,20, ,20,320.00

26 VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL Type Section of the Brief Description Details of Penalty / Companies Act Punishment/ Compounding fees imposed Authority [RD / NCLT/ COURT] Appeal made, if any (give Details) A. COMPANY Penalty Punishment Compounding B. DIRECTORS Penalty Punishment Compounding C. OTHER OFFICERS IN DEFAULT Penalty Punishment Compounding Nil

27 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRIGADE HOSPITALITY SERVICES LIMITED Report on the Standalone Financial Statements: We have audited the accompanying standalone financial statements of Brigade Hospitality Services Limited ("the Company") which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Standalone Financial Statements: The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, This responsibility includes 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 frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and fair presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's Responsibility: Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also

28 includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. Opinion: In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2016, and its profits and its cash flows for the year ended on that date Report on Other Legal and Regulatory Requirements: 1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of subsection (II) of section 143 of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable. 2. As required by the section 143(3) of the Act, we report that: (a) (b) (c) (d) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. The balance sheet, the statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, (e) On the basis of the written representations received from the directors as on March 31, 2016 taken on the record by the Board of Directors, none of the directors is disqualified as on that date from being appointed as a director in terms of section 164(2) of the Act. (f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B". (g) With respect to other matters to be included in the Auditors report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us, i. The Company does not have any pending litigations which would impact its financial position; 2

29 The Company did not have any longterm contracts as required under the applicable law or accounting standards, for material foreseeable losses. The Company has not entered into any derivative contracts. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. For B.K. RAMADHYANI & CO LLP Chartered Accountants Firm Registration No S1S VajZ,,b41g VASUKI H S Partner Membership No B.K.RAMADHYANI & CO LLP Chartered Accountants 4B, Chitrapur Bhavan, 8t h Main, 15' Cross, Malleswaram Bangalore BK RAMADHYANI & CO. LLP CHARTERED ACCOUNTANTS Reg. No S / No. 68, # 4B, Chitrapur Bhavan, 8th Main, 15th Cross, Malleswaram, BANGALORE Date: May 03,

30 ANNEXUREA REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF BRIGADE HOSPITALITY SERVICES LIMITED. I) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed asset (b) According to the information and explanation given to us by the management the Company has a regular program of physical verification of fixed assets at reasonable intervals. As informed, the management are in the process of physically verifying all the fixed assets of the Company during the year. We have been informed by the management that as at March 31, 2016 pending completion of the physical verification if there are material discrepancies observed will be adjusted and appropriately accounted in the books of accounts in the next financial year. (c) According to the information and explanation given to us and as represented to us by the company, the title deeds of Immoveable properties are held in the name of the Company. 2) The Company has a program of physical verification of inventory which is conducted at reasonable intervals by the management and as informed to us there were no material discrepancies noticed on such verification. 3) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, hence clause 3(iii) (a) to (c) of the Order is not applicable. 4) In our opinion and according to the information and explanations given to us, the company has not advanced any loan, or made any investments or given any guarantee and security as applicable vide provisions of section 185 and 186 of the Companies Act, 2013 and hence clause 3(iv) of the Order is not applicable. 5) The Company has not accepted any deposits as applicable under the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other provisions of the Companies Act and rules framed under. Accordingly, the provisions of clause 3(v) of the said Order are not applicable. 6) To the best of our knowledge and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of subsection (1) of section 148 of the Companies Act, 2013 for the products of the company. Accordingly, the provisions of clause 3(vi) of the said Order are not applicable. 7) (a) According to the records of the Company, the Company is regular in depositing undisputed statutory dues including provident fund, employees' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities. As at March 31, 2016 there are no statutory dues outstanding for a period of more than six months from the date they became payable.