Dear Shareholders,
 
 The Directors are pleased to present the 40th Annual Report and the
 Audited Accounts of the Company for the year ended 31 March 2011.
 
 1.  FINANCIAL RESULTS
 
                              For the year ended   For the year ended
                                  31/03/11              31/03/10
                                (Rs. In 000)          (Rs. In 000)
 
 Income                            452008                424776
 
 Operating Expenses                325272                289679
 
 Gross Operating Profit            126736                135097
 
 Less:
 
 Interest and Financial Charges      2156                  1886
 
 Depreciation                       30078                 28509
 
 Profit before tax                  94502                104702
 
 Less : Provision for tax
 
 Current                            33500                 37080
 
 Deferred (net)                       957                 (2152)
 
 Profit/ (Loss) after tax           61959                 69774
 
 Add Surplus/ (Deficit) brought 
 forward                           238766                204048 
 from the previous
 year
 
 Profit available for appropriation300725                273822
 
 Appropriations
 
 a) General Reserve                  6196                  6977
 
 b) Dividend                        16000                 24000
 
 c) Tax on Dividend                  2657                  4079
 
 d) Balance carried to Balance 
    Sheet                          275872                238766
 
 During the financial year under review, the Company''s total income was
 Rs. 4520.08 lakhs as against the previous year income of Rs. 4247.76
 lakhs. The turnover increased by 6% with improved domestic tourism and
 corporate travel which favorably impacted average room revenue.
 However, the net profit after providing for depreciation and taxa- tion
 stood at Rs. 619.59 lakhs as against Rs. 697.74 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:
 
 A.  Domestic travelers: Domestic travelers were earlier ignored by the
 hotels in Goa. In the past few years, their perception of money is
 however undergoing a shift with rise in the educated, middle class with
 disposable incomes. This in turn is driving domestic tourism in Goa for
 the last two years and is likely to rise by 4% this year too. This
 segment will remain to be the best contributor of occupancies and
 average revenues.
 
 B.  Emerging MICE (Meeting, Incentives, Conferences & Exhibitions) and
 Destination weddings opportunity: Convention or meetings or destination
 weddings accounts for over 30% of our occupancies. A well planned
 strategy has been put in place to tap these clients. The average
 spending of these clients can sometimes be more than a FIT segment
 (Foreign Individual Travelers).
 
 C.  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 facilities at highly competitive prices. These
 destinations pose threat to the Goan leisure hotels.
 
 c) Competition from domestic destination: Competition is also growing
 from other domestic destination for holidays and leisure with the
 emergence of the concept of boutique hotels and resorts.
 
 d) 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 been replaced by CFLs.
 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. Auduth Timblo, Mr. Shardul Thacker and Mr. Reyaz Mama Directors
 retire by rotation and being eligible, offers themselves for
 reappointment at the ensuing Annual General Meet- ing.
 
 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, 2011 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. Presently 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 requirements of Delisting Regulation but
 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 shareholders 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, Valued 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  : 6th  August, 2011