The Directors are pleased to present the 41 Annual Report and the
Audited Accounts of the Company for the year ended 31s March 2012.
1. FINANCIAL RESULTS (Rs. in Lakhs)
For the year ended For the year ended
Income 4925.18 4520.08
Operating Expenses 3718.16 3240.37
Gross Operating Profit 1207.02 1279.71
Less: Interest and
Financial Charges 65.60 21.75
Depreciation 321.80 300.78
Profit before tax 819.62 957.18
Less : Provision for tax
Current 296.00 347.16
Deferred (net) (36.89) (9.57)
Profit/(Loss) after tax 560.51 619.59
Add Surplus/ (Deficit)
brought forward 2758.72 2387.66
from the previous year
Profit available for
appropriation 3319.23 3007.25
a) General Reserve 56.05 61.96
b) Dividend 160.00 160.00
c) Tax on Dividend 25.96 26.57
d) Balance carried to
Balance Sheet 3077.22 2758.72
Total 3319.23 3007.25
Earnings per share (Rs.) 3.50 3.87
During the financial year under review, the Company''s total income
was Rs. 4925 lakhs as against the previous year income of Rs. 4520
lakhs. The turnover increased by 9% with improved domestic tourism and
corporate travel which favorably impacted average room revenue.
However, the net profit after providing for depreciation and taxation
stood at Rs 560.51 lakhs as against Rs. 619.59 lakhs for the previous
year. This reduction in net profit is due to increase in salary, wages
and benefits to employees and also on account of increase in repairs
and renovation cost coupled with general inflation.
Overall business environment in the country has been changing. Along
with this, the Goan hotel industry is also witnessing emergence of few
Tourism will grow subject to the stability and growth of Indian Economy
Domestic travel is expected to be the primary driver of the sector''s
growth. High disposable income and the advent of better locations and
products are driving this growth. Business travel, Leisure and
Meetings, Incentives, Conferences, Exbition continue to be the possible
The ongoing Euro crisis and the recessionary environment in other
countries are likely to impact the Indian hospitality space. To
substitute the lack of business coming in from traditional geographies
such as the US and Europe, some CEOs are now focussing on other
geographies such as East Asia. Despite this impact, the Indian
hospitality sector is well poised to move ahead on its growth
trajectory; with projected rise in domestic tourism in view of the
For Goa, the competition is just not within the 5 star and luxury
segment, it is also from boutique hotels, guest houses, and others in
non organised sectors. There an unsteady feeling at this point of time.
The pie of room base is getting larger, however the seg- ments are not
1. Key Risks:
a) Terrorism acts: Due to the unrest all over the world on account of
terrorism, many countries issued travel warnings to their citizens,
advising them against traveling to India. Considering the elasticity of
demand in this industry, such acts of terrorism impact the sentiments
and inflow of tourists into the country.
b) Competition from South Asian countries: Many South Asian countries
are now consciously trying to increase their tourism activities by
offering world-class facili- ties at highly competitive prices. These
destinations pose threat to the Goan leisure hotels.
c) Employee cost: Employee cost is the largest cost component in the
overall cost structure with competing additional star hotels in Goa. We
expect a lot of pres- sure on hiring and retaining trained manpower
resulting increase in cost.
Your Directors are pleased to recommend a dividend of 10% which is Rs.
1/- per equity share on the face value of Rs. 10/- each.
Auditors of the company, M/s. H. K. Aparanji, will retire as auditors
of the Company and being eligible offers themselves for re-appointment.
4. FOREIGN EXCHANGE EARNINGS AND OUTGO
As required under Section 217(1 )(e) of the Companies Act, 1956 read
with Rule 2 of the Companies (Disclosures of particulars in the report
of Board of Directors) Rules 1988, the information relating to foreign
exchange earnings and outgo is given in the Notes to the Profit and
Loss Account and Balance Sheet.
5. TECHNOLOGY ABSORPTION:
The Company being in the hospitality industry, technology developments
connected with industry are adopted.
6. CONSERVATION OF ENERGY:
Solar Panels are used for generating hot water consumed by the Central
kitchen thereby reducing the diesel consumption of the main boiler.
Wherever feasible, the incandescent lamps have oeen replaced by
CFL''s. We are also aiming at the next stage of going for LED Lighting
7. PARTICULARS OF EMPLOYEES
None of the employees are covered by the provisions contained under
Section 217 (2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975.
- Mr. V.P.Raikar, Mr. Jamshed Delvadvala and Mr. Raghunandan Maluste
Directors retire by rotation and being eligible, offers themselves for
reappointment at the ensuing Annual Gen- eral Meeting.
9. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, the Directors hereby confirm that:
a) In the preparation of the annual accounts the applicable accounting
standards have been followed along with proper explanations relating to
b) The Directors had selected such accounting policies and applied them
consistently and made judgment and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2012 and Profit and Loss 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, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
d) The Directors had prepared the annual accounts on a going concern
10. CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges a
report on Corpo- rate Governance along with Auditors Certificate on its
compliance is annexed forming part of the Annual Report.
Clause 40A of the Listing Agreement mandates minimum 25% public
shareholding. Pres- ently promoter holding is 95% and public holding is
5%. Company decided to follow SEBI (Delisting of Equity Shares),
Regulation 2009; and to give exit opportunity to the public
shareholders under regulation 8(1 )(a) of voluntary delisting. As per
the regulation, Board of Directors passed resolution giving approval
for delisting. Approval of the shareholders of the company was obtained
by special resolution through postal ballot. Votes casted by public
shareholders in favour of the resolution were less then two times of
the votes casted by the public shareholders against it. Company and
promoters complied with the require- ments of Delisting Regulation but
the attempt could not succeed. Therefore company approached Bombay
Stock Exchange stating that the promoters are willing to pay fair price
fixed by valuers appointed by the Stock Exchange and ready to give exit
option to sharehold- ers who opt for it. Bombay Stock Exchange despite
reminders did not respond. As a result Company has approached
Securities and Exchange Board of India (SEBI) for guidence on further
11. APPRECIATION FOR BANKS
The Company would like to express its appreciation for the support and
asistance rendered during the year by the Banks namely IDBI Bank Ltd.,
HDFC Bank Ltd., ICICI Bank Ltd.
Your Directors are pleased to record their appreciation of the devotion
and sense of commit- ment shown by the employees in the organization.
Board of Directors gratefully acknowledge the support and goodwill
extended by Govern- ment of Goa, Central Government, Commercial Banks,
Tour Operators, Travel agents, Val- ued Guests and esteemend
For and on behalf of the Board of Directors
ANJU TIMBLO V. P. RAIKAR
MANAGING DIRECTOR DIRECTOR
Place : Vainguinim Beach, Goa.
Date : 14th July, 2012