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
                          31/03/2012           31/03/2011
 
 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
 
 
 Appropriations
 
 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.
 
 OUTLOOK:
 
 Overall business environment in the country has been changing. Along
 with this, the Goan hotel industry is also witnessing emergence of few
 key trends:
 
 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
 growth segments.
 
 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
 rupee weakening.
 
 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
 proportionately growing.
 
 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.
 
 2.  DIVIDEND
 
 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.
 
 3.  AUDITORS
 
 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
 in phases.
 
 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.
 
 8.  DIRECTORS
 
 - 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
 material departure;
 
 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
 irregularities; and
 
 d) The Directors had prepared the annual accounts on a going concern
 basis.
 
 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
 action.
 
 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.
 
 12.  EMPLOYEES
 
 Your Directors are pleased to record their appreciation of the devotion
 and sense of commit- ment shown by the employees in the organization.
 
 13.  ACKNOWLEDGEMENT
 
 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
 Shareholders.
 
 
 
                        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