The directors have pleasure in presenting their 21st Annual Report on
the business and operations of the Company together with its Audited
Accounts for the year ended 31st March, 2012.
The highlights of the financial results of the Company for the
financial year ended March 31, 2012 are as under:
(Rs. in Lacs)
Particulars 2011-2012 2010-2011
Total Income 1945.49 1901.47
Financial Charges, Depreciation and Income Tax 545.06 475.71
Less : Financial Charges 143.18 139.70
Less : Depreciation 123.23 116.11
Profit before Income Tax and 278.65 219.90
Add/(Less) : Exceptional Item (162.11) -
Profit Before Income Tax 116.54 219.90
Provision for Income Tax (39.26) (48.17)
Deferred Tax Assets (4.41) (2.18)
Profit For the Year after Income Tax 72.87 169.55
Profit Available for 72.87 169.55
Reserve for Replacement (22.58) 13.99
of FF&E (Net)
Proposed dividend (19.50) (25.32)
Tax on dividend (3.16) (4.21)
Balance of Profit/(Loss) 682.55 640.50
Transfer to Capital (112.27) (111.96)
Bal. carried to Balance Sheet 597.91 682.55
Your directors are pleased to recommend 6% dividend on Optionally
Convertible Preference Shares (OCPS) for the year ended 31st March,
2012, aggregating Rs. 19.50 Lacs.
However, in view of future expansion, your directors express their
inability to recommend a dividend on Equity Shares of the Company for
the year under review.
During the year under review, due to ongoing trend of economic
slowdown, in the first half of the year there was a downward trend in
the demand. However, towards the second half of the financial year
2011-12 the demand picked up. Also, in the Ahmedabad city, Hotel
business became more competitive due to commissioning of new Hotels. In
comparison to previous year, the Average Occupancy of the hotel for
2011-12 has declined to 64.3% from 67.4%. Also, the Average Room Rates
has declined to Rs. 5486 during the year under review from Rs. 5756 in the
previous year 2010-11.
However, during the financial year 2011-12, despite lower occupancy and
ARR, company had been in a position to achieve a turnover of Rs. 1945.49
Lacs, in comparison to Rs. 1901.47 Lacs, in the previous year 2010-11.
The profit before tax and profit after tax for the year under review
were Rs. 116.54 Lacs and Rs. 72.87 Lacs respectively. Your directors are
hopeful that with recovery in the economy, there would be a marked
improvement in the performance of the company.
The hotel unit of the Company THE GATEWAY HOTEL UMMED Ahmedabad
is an ISO 22000:2005 certified hotel with the highest levels of Hygiene
and Food Safety criteria. Your company''s hotel is managed by The
Indian Hotels Company Limited (Taj Group) for over Twelve years.
Further, The established THE GATEWAY HOTEL BRAND, superior
ambience, interior decorations, services and loyal clientele retained
its'' market leadership in the city of Ahmedabad and has placed the
hotel ahead of its Competitors.
Sustainability is a commitment for us to align our strategy in all
aspects of our business with our stakeholders in various dimensions
such as economic, social and environment.
CORPORATE SOCIAL RESPONSIBILITY
In today''s world Corporate Social Responsibility is a very important
and dominant concept for external environment. Every year 5th June is
observed as the World Environment Day around the world and is of
immense importance for the Taj Group. In the year 2011-12, THE
GATEWAY HOTEL UMMED has obtained Earth Check Silver certification
from Earth Check standard measures body. We provide healthy and
hygienic food to our valuable customers. Customer satisfaction is our
motive. This is a commitment to safeguard the health and safety of our
employees and neighbors, to support the local economy and to treat our
staff fairly. It is about creating wealth for all our stakeholders,
embracing diversity, minimizing resource consumption and reducing our
greenhouse gas emissions. However, we recognise that we will have to be
innovative and draw on our key strength - our motivated staff - in
order to deliver the lasting positive outcomes that are at the core of
our commitment to sustainability.
The Company has not accepted any fixed deposits during the financial
year 2011-12 from public.
In accordance with provisions of Section 256 of Companies Act, 1956 and
Articles of Association of the company, Mr. Vishwanath Prasad Singh,
the director of the company retires by rotation at the ensuing Annual
General Meeting and being eligible, offers himself for reappointment.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956, the Board of Directors, hereby confirms that:
(i) in the preparation of annual accounts for the financial year ended
31st March, 2012, the applicable accounting standards have been
followed and there are no material departures.
(ii) the directors have selected the accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the current financial year and of the
profit of the Company for the year under review.
(iii) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
(iv) the directors had prepared the annual accounts for the financial
year ended 31st March, 2012 on a going concern basis.
M/s Naimish N. Shah & Co., Chartered Accountants, Ahmedabad, the
statutory Auditors of the company retire on the conclusions of the
ensuing 21st Annual General Meeting of the company and being eligible
offer themselves for re-appointment. You are requested to consider
Significant Accounting policies & Notes Forming part of Accounts are
self-explanatory. Thus, no comment is required from the Board of
Directors of the Company.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars regarding Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo pursuant to Section 217 (1) (e)
of the Companies Act, 1956 read with Rule 2 of the Companies
(Disclosure of particulars in report of the Board of Directors) Rules,
1988 is annexed as per Annexure - A which forms part of this
The Company has been proactive in the following principles and
practices of good corporate governance. A report in line with the
requirements of Clause 49 of the listing agreement on Management
Discussion and Analysis and the Corporate Governance practices followed
by the Company and the Auditors Certificate on Compliance of mandatory
requirements are given as an Annexure B & C respectively to this
STATEMENT OF EMPLOYEES'' PARTICULARS
None of the employees of the Company drew remuneration of Rs. 60,00,000/-
or more per annum/ Rs. 5,00,000/- or more per month during the year.
Hence, no information is required to be furnished as required under
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975.
The Directors acknowledge with gratitude the whole- hearted support and
cooperation received from valued customers, Financial Institutions,
Banks, Taj Group, Government Departments, shareholders, employees and
public for their continuous support and patronage extended and
confidence reposed in the management of the Company.
By Order of the Board of Directors
Place : Ahmedabad U. Champawat
Date : 24th August, 2012 Chairman &