Net sales/income from operations for the luxury chain dropped 96% to Rs 1.5 crore compared to 37.5 crore in the previous quarter. In the quarter ended June 30, 2019, HLV had reported net sales of Rs 31 crore. The chain had reported a loss of Rs 17 crore for the quarter ended March 31.
The chain reported total income of Rs 4 crore for the quarter ended June 30.
In disclosures to the BSE, the auditors stated the disputed amount related to unilateral termination of the lease of the Mumbai hotel and enhancement in rentals which the company is legally contesting is not provided in the books for the quarter ended June 30 and it amounts to Rs 3.52 crore. Cumulatively for the period upto June 30, 2020, it amounts to Rs 69 crore.
The disclosures also mentioned the amount relating to demands made by Airports Authority of India (AAI) relating to rent, minimum guarantee fee in respect of the lease of 11,000 square meters of land in Mumbai, cumulatively amounting to Rs 807 crore upto January 2019 is not provided in the books as the liability is disputed and not 'crystalized' as per the legal opinion.
The disclosures to BSE also stated that a material uncertainty exists that may cast significant doubts on the company's ability to continue as a going concern.
"The appropriateness of assumption of going concern is dependent upon getting favourable judgement/orders in respect of disputes with Airports Authority of India and continuing the Mumbai hotel operations," the auditors stated.
The chain also stated the impact of Covid 19 may not be a major challenge in continuing the business.
In March last year, Hotel Leelaventure announced plans to sell its hotels in Delhi, Bengaluru, Udaipur and Chennai to Brookfield Asset Management for Rs 3,950 crore.
In a regulatory filing in January this year, the chain said the company has been changed to HLV Limited.
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