Eco Hotels and Resorts Limited has submitted its statement on deviation or variation in the utilization of funds raised from a partly paid-up Right Issue. The company reported a variance in the utilization of funds for the quarter ended June 30, 2026, primarily due to an increase in actual general corporate expenses compared to initial plans. The statement clarifies that there has been no change in the original objects of the fund raising.
Statement on Fund Utilization
Eco Hotels and Resorts Limited has provided a statement detailing the deviation or variation in the utilization of funds raised through its partly paid-up Right Issue. This report covers the financial period ending June 30, 2026.
Fund Raising Details
The Right Issue was dated 26th September, 2025, and the total amount raised was INR 1957.27 Lakhs. The amount received on application and first call was INR 1294.38 Lakhs. Funds were initially earmarked for several objectives, including providing advances for property construction/renovation, repayment of borrowings, and meeting issue expenses.
Deviation and Variance
For the quarter ended June 30, 2026, the company reported a variation in fund utilization. Specifically, for the object of giving advance and/or to owners of the properties for construction/renovation of properties, INR 974.20 Lakhs was allocated with INR 161.44 Lakhs utilized. The company noted an increase in actual general corporate expenses compared to what was originally planned at the time of the right issue. However, the statement clarifies that the funds were largely utilized for security deposits and construction advances to identified and unidentified properties, with an interchange of funds between objects rather than a change in the primary objectives.
The company’s audit committee has reviewed the statement and provided ‘No Comments’. The auditors’ comments, if any, were also noted as ‘No Comments’, indicating no material concerns raised regarding the fund utilization.
Source: BSE
