The Directors present herewith the supplemental Fourteenth Annual
Report together with the Audited Statements of Account for the
Financial Year 1997-98 ended on 30th September, 1998.
FINANCIAL RESULTS :
(Rs in Lacs)
For the year Previous Year
(12 Months) (18 Months)
Operating Profit (Before Int.
& Depreciation) (-) 15.69 163.25
Less : Interest 102.48 112.18
Profit before Depreciation (-) 118.17 51.07
Less : Depreciation 31.89 47.79
Profit before Tax (-) 150.06 3.28
Less : Provision for Tax - -
Profit after Tax (-) 150.06 3.28
Add/(Less) : Previous year adjustments 7.98 11.13
(-) 158.04 14.41
Add : Balance brought forward from 155.62 141.21
Surplus available for Appropriation (-) 2.42 155.62
(1) Transfer to General Reserve - -
(2) Proposed Dividend - -
(3) Balance carried to Balance Sheet (-) 2.42 155.62
(-) 2.42 155.62
In absence of profits the Board of Directors express their inability to
pay any dividend for the period under review.
REVIEW OF OPERATIONS
The operations of the Hotel for the period under review have
drastically reduced due to a very low occupancy and also due to the
fact that the Hotel was closed since 1st August, 1998 for major
renovation and upgradation under the aegis of Radisson Hotels
International Inc. The over all general economic recession has largely
affected the Hotel Industry in particular, which has resulted into a
very low occupancy during the year. The Company hopes that the
renovated hotel with the brand name of Radisson will achieve higher
occupancy and better profitability because of Radisson's industry
leading National and International reservation systems which is
connected to 125 Countries World Wide to market and support its
existing and new Asia/Pacific locations.
During the period under review IFCI has appointed Smt Sarla Chandwani
as its nominee director in place of Shri V. K. Jain. The Board of
Directors welcomes Smt Sarla Chandwani and places on record its
gratitude towards Shri V.K. Jain for his valuable services and support
rendered during his tenure of Directorship with the Company.
Shri Jashbhai U Patel and Shri Shreyans S Shah have resigned from the
Board. The Board of Directors wish to place their sincere gratitude
for the guidance and advice received during the tenure of their
Directorship with the Company.
Shri M.R. Gami has been withdrawn from the Board of the Company as
Nominee Director of GIIC. The Board of Directors wish to place their
sincere gratitude for the guidance and advice received during the
tenure of his Directorship.
ADJOURNED ANNUAL GENERAL MEETING
The Board of Directors wish to inform you that the item relating to
consideration and approval of the Annual Accounts for the year 1997-98
was not taken up in the 14th Annual General Meeting which was held on
30th March, 1999. Hence it was decided to convene an Adjourned Annual
General Meeting to take up the item relating to consideration and
approval of accounts.
Y2K COMPLIANCE (Y2K)
The Company does not foresee any risk on account of year 2000
compliance (Y2K) as the company has upgraded the computer facilities to
meet with Y2K Compliance.