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.
 
 FINANCIAL RESULTS
 
 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
 
 Profit/(Loss) before
 
 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
 
 Exceptional Item
 
 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
 Appropriation
 
 Appropriation
 
 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
 brought forward
 
 Transfer to Capital                            (112.27)       (111.96)
 Redemption Reserve
 
 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.
 
 OPERATIONS
 
 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 INITIATIVES
 
 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.
 
 FIXED DEPOSITS
 
 The Company has not accepted any fixed deposits during the financial
 year 2011-12 from public.
 
 DIRECTORS
 
 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.
 
 AUDITORS
 
 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
 their re-appointment.
 
 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
 Report.
 
 CORPORATE GOVERNANCE
 
 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
 report.
 
 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.
 
 ACKNOWLEDGEMENT
 
 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 &
 
                                                     Managing Director