The Directors have great pleasure in presenting the 22nd Annual Report
of the Company together with its Audited Profit and Loss Account for
the year ended 31st March, 2012 and the Balance Sheet as on that date.
FINANCIAL RESULTS (Rs. in lakhs)
PARTICULARS 2011-12 2010-11
Profit Before Interest, Depreciation
and Tax 342.20 382.83
Less : Interest 102.92 92.07
Profit Before Depreciation & Tax 239.28 290.76
Less : Depreciation 89.86 88.92
Add : Exceptional Item 6.99 (15.07)
Profit Before Tax (PBT) 156.40 186.76
Less : Tax Expenses
a) Current Tax 31.30 37.00
b) Tax relating to prior years 9.28 3.23
c) Mat Entitlement 22.49 1.90
d) Deferred Tax (0.50) 27.99
Profit After Tax 93.83 116.64
Balance b/f from previous years 156.20 107.11
Profit Available for appropriation 250.03 223.75
Less : Proposed Dividend - 58.13
Less : Tax on proposed Dividend - 9.43
Balance to be carried over to Balance sheet 250.03 156.20
OPERATING RESULTS AND OVERVIEW
2011-12 has been a bit of a flat year for all sectors in general and
hospitality in particular as the global economy has severely been
buffeted by various natural, social and economic headwinds; the
earthquake in Japan, the floods in Thailand, high interest rates,
spiraling inflation, the civil unrest in the Arab countries and ongoing
sovereign debt crisis in Europe Region. The Indian economy has also
been severely affected by, but has withstood the turbulence caused by
global economics in the past years. Vital to the performance of the
hospitality sector is the economic scenario of world and domestic
Due to overall slowdown, your Company''s financial performance was
affected significantly compared to last year. However, with patronage
of loyal customers of the hotel, your Company could manage the profit
margin this year as well. The Company registered a revenue of Rs. 1481
lakhs compared to Rs. 1480 Lakhs in 2010-11. Profit Before
Depreciation, Interest and Tax was Rs. 342.20 Lakhs compared to Rs.
382.83 Lakhs in 2010-11 and Profit Before Tax was Rs. 156.40 Lakhs
compared to Rs. 186.76 lakhs in 2010-11.
As the surplus generated is being deployed towards executing the
various projects, your Directors prefer not to recommend any dividend
on share capital of the Company for the year under report.
FUTURE PROSPECTS AND EXPANSION:
Your Company is progressing in the diversification cum expansion on
projects on adjoining land of existing hotel building. Due to the vast
opportunities and prospects of growth in Tirupur which is hub of
textile exports, the Company has already started to set up shopping and
entertainment malls - India''s first 100 percent Green Shopping Mall -
in the City. To meet the energy requirement of the Company, a bio-mass
based energy plant that used a technology approved by UNFCCC for
meeting CDM benefits is being setup. The Management is taking
effective steps for completion of the projects at stipulated date. Your
Company continues to pursue the completion of on-going projects to
achieve sustainable and profitable growth.
In order to meet the cost of funding of the various projects undertaken
by the Company, the Company has raised equity share capital on Rights
basis in the ratio of sixty nine equity shares at a price of Rs. 23/-
per share for every twenty equity shares held. The Rights issue opened
on August 24, 2011 and closed on September 22, 2011. 2,42,14,119 equity
shares were allotted to eligible shareholders, in consultation with the
BSE Limited (Designated Stock Exchange) on November 4, 2011. Such
equity shares became eligible for trading on BSE effective from
November 11, 2011.
Consequent to allotment of the aforesaid shares, the Paid-Up Equity
Share Capital of the Company stands increased from Rs. 775 lakhs to Rs.
3196.41 lakhs with effect from November 4, 2011.
Your Company is executing various projects through its equity, internal
accruals and borrowings from Andhra Bank and Allahabad Bank. The total
borrowings from the financial institutions as on 31st March, 2012 are
Rs. 58.21 crores.
Pursuant to the requirements of Listing Agreement with the Stock
Exchange, your Directors are pleased to annex the following:
1. Management Discussion and Analysis Report
2. A Report on Corporate Governance
3. Auditor''s certificate regarding compliance of conditions of
INFORMATION REQUIRED UNDER SECTION 217 (1) (e) OF THE COMPANIES ACT,
The information required under Section 217(1) (e) of the Companies Act,
1956 read with Rule 2 of the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988 is furnished hereunder:
I. CONSERVATION OF ENERGY:
a. The operations of the Company are not energy intensive. However,
the Company has taken all possible measures to control and reduce
consumption of energy. The Company is making continuous efforts to
conserve and optimize energy wherever practicable by economizing on
fuel and power.
b. As the activity of the Company is not covered under the list of
specified Industries under the Schedule to the said Rules, the
information to be reported in Form-A, the form for Disclosure of
Particulars with respect to Conservation of Energy is not furnished.
II. TECHNOLOGY ABSORPTION:
The Company has no technical collaboration arrangement with any
INFORMATION REQUIRED UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956.
None of employee of the Company was in receipt of remuneration, which
in the aggregate exceeded the limits prescribed under sub-section (2A)
of Section 217 of the Companies Act, 1956 during the year.
DIRECTORS'' RESPONSIBILITY STATEMENT UNDER SECTION 217 (2AA) OF THE
COMPANIES (AMENDMENT ACT) 2000
The Board of Directors Report that:
i) Your Directors have followed the applicable accounting standards, in
the preparation of Annual Accounts.
ii) Your Directors have selected such 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 financial year 31st March, 2012 and of
the Profit of the Company for that year.
iii) Your Directors have 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
iv) Your Directors have prepared the annual accounts on a ''going
v) The financial statements have been audited by M/s. P. S. Krishnan &
Co., Chartered Accountants, the Statutory Auditors.
vi) The Audit Committee meets periodically with internal auditor and
the statutory auditors to review the manner in which the auditors are
discharging their responsibilities and to discuss auditing, internal
control and financial reporting issues. To ensure complete
independence, the statutory auditors and the internal auditor have full
and free access to the Members of the Audit Committee to discuss any
matter of substance.
Your Company has neither invited nor accepted any fixed deposits from
the public as per the provisions of Section 58A of the Companies Act,
1956 during the year.
With profound grief and sorrow we inform you that Mr. R. V. E.
Venkatachalam, who was the Chairman of the Company, passed away on July
26, 2011. We sincerely place on record his contribution to the growth
of the Company during his tenure as Chairman.
The Board had appointed Smt. M. Sasikala and Sri K. Subramaniam as
members of the Board in the capacity of Non-Executive Directors and Sri
B. A. Madhusudhan as Member of the Board in the capacity of Whole-Time
Director. The said Directors have been inducted as Additional Directors
pursuant to the provisions of Section 260 of the Companies Act, 1956 to
hold office till the conclusion of this Annual General Meeting. Mr. B.
A. Madhusudhan, Smt. M. Sasikala and Mr. K. Subramaniam are proposed to
be appointed as Directors in this Annual General Meeting scheduled to
take place on 12/09/2012 and notice under Section 257 of the Companies
Act 1956 have been received from a Member proposing their appointments.
The brief profiles of said Director''s are reported elsewhere in the
Annual Report for the reference of Members.
Sri P.Ganesan and Dr. Namasivayam Karthikeyan retire by rotation at the
forthcoming Annual General Meeting and being eligible for re-election,
offer themselves for re-appointment.
M/s. P. S. Krishnan & Co., Company''s present Auditors are to retire at
the ensuing Annual General Meeting and being eligible for
reappointment, they have consented to continue to be the Auditors of
M/s. Allahabad Bank, M/s. Andhra Bank, M/s. AXIS Bank, M/s. State Bank
of India and M/s. Union Bank of India are bankers to the Company and
your Directors place on record their appreciation for their co-
operation and services.
SAFETY AND SECURITY
Hotels have become vulnerable to terror attacks on account of their
high profile guests that include foreign tourists. Keeping in mind the
security threats to the hospitality industry in India, the company has
stepped up its efforts to ensure an environment of well being, safety
and security for all its guests and co-workers. The company''s guest
floors as well as all public areas are well equipped with closed
circuit cameras. Movement of all vehicles, employees, vendors and
guests is monitored and scanned.
Your Directors would like to express their sincere appreciation and
gratitude for the cooperation and assistance from its shareholders,
bankers, regulatory bodies, Statutory Auditors/Professionals and other
business constituents during the year under review.
Your Directors also wish to place on record their deep sense of
appreciation for the contribution and commitments displayed by
Executives, Staff and Employees of the Company.
For and on behalf of the Board
E. V. Muthukumara Ramalingam
Place : Tirupur
Date : 30.05.2012