Eco Hotels and Resorts Limited has submitted its statement on the deviation or variation in the utilization of funds raised from a right issue for the quarter ended September 30, 2026. The report indicates a variation in the utilization of funds, primarily due to interchanging the use of funds between objects and an increase in general corporate expenses compared to the original plan. However, the company asserts that there has been no change in the original objects.
Fund Utilization Statement Filed for Q2 2026
Eco Hotels and Resorts Limited has officially submitted its statement detailing deviations or variations in the utilization of funds raised from its right issue. This filing, covering the quarter that concluded on September 30, 2026, addresses the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Financials and Deviations
The company reported a total amount raised of INR 1957.27 Lakhs through a partly paid-up right issue on September 26, 2025. Of the total amount received on application and first call (INR 1771.93 Lakhs), the statement highlights specific object-wise utilization.
Fund Utilization Breakdown
- Object 1: To give advance and/or to owners of the properties for construction/renovation of properties. Original Allocation: 974.20 Lakhs. Funds Utilised till 30-09-2026: 330.49 Lakhs. There was no modified allocation or utilized amount in this quarter.
- Object 2: Repayment, in full or part, of certain borrowings availed by the company. Original Allocation: 460.00 Lakhs. Funds Utilised till 30-09-2026: 460.00 Lakhs.
- Object 3: For investment towards unidentified properties for construction/renovation of hotel properties, paying security deposits and general corporate purpose. Original Allocation: 473.07 Lakhs. Funds Utilised till 30-09-2026: 909.43 Lakhs. A deviation of 436.36 Lakhs was noted for the quarter.
- Object 4: To meet the expenses of the issue. Original Allocation: 50.00 Lakhs. Funds Utilised till 30-09-2026: 50.00 Lakhs.
The total funds utilized by the end of the quarter amounted to INR 1,749.93 Lakhs.
Explanation for Deviations
The company provided explanations for the noted deviations:
- Note 1: Funds initially earmarked for security deposits and construction advances for identified and unidentified properties were interchanged. This was necessitated by delays in requirements for serial number 1 and the company’s need to acquire properties on lease rent and incur operating expenses for new, then-unidentified properties. This resulted in an interchange of fund usage, though the fundamental objects remain unchanged. Future payments will be met from operational funds.
- Note 2: There was an increase in actual general corporate expenses compared to the projections made at the time of the right issue.
The Audit Committee has reviewed these deviations and found no comments, and the auditors have also offered no comments.
Source: BSE
