GANDHINAGAR HOTELS LIMITED
ANNUAL REPORT 2010-2011
Your Directors have pleasure in presenting the 31st Annual Report together
with the Audited Accounts for the year ended 31st March, 2011
(Rs. In Lacs)
Particulars For the year For the year
31st March, 2011 31st March, 2010
Profit before Depreciation,
interest and taxation (EBIT) 506.48 335.50
Less : Depreciation 286.72 199.81
Less : Interest 132.32 59.01
Profit Before tax (PBT) 85.03 76.68
Provision for taxation 15.77 17.30
Deferred tax expenses 46.32 07.28
Profit after tax (PAT) 22.95 44.92
form previous period 42.37 39.37
Proposed Dividend 0.00 42.24
Tax on dividend (dividend
distribution tax) 0.00 7.18
Balance carried to the
Balance sheet 65.32 42.05
REVIEW OF OPERATIONS
During the year under review the performance of the Company was up to the
mark due to growing industrialization in the state of Gujarat and various
initiative of Gujarat Government for development of tourism give positive
results for the Current financial year. The Company has earned gross
revenue of Rs. 506.48 Lacs for the financial year 2010-2011 which was Rs.
335.50 Lacs in previous year showing 51% rise in the gross revenue of the
PARTICULARS OF EMPLOYEES
There were no employees covered under the provisions of Section 217 (2A) of
the Companies Act, 1956 read with Companies (particulars of employees)
rules, 1975 hence, particular are not given for the same.
In cater the finance requirement of business operations Your Directors do
not recommend Dividend for the financial year ended on 31.03.2011.
The Company has taken all necessary steps to insure its properties and
insurable interest as deem appropriate and as required to have under
various statutory and other requirement.
During the year 2011, the sad demise of Chairman Major Vinodchandra P Joshi
(Retd.) occurred. The company is highly indebted to him for his vision,
commitment and services orientation implanted in the Company. The board of
directors express sincere obituary to him.
During the year Mr. Viral V Joshi resigned from the directorship of the
company due to his pre-occupancy.
Mr. Dlipkumar K Trivedi and Wg. Cdr. Manik Anchlia retire at ensuing Annual
General Meeting and are eligible for reappointment.
The Company has formed the audit committee as per the provisions of section
292 A of the Companies act, 1956 and Clause 49 of the listing agreement.
The Audit committee consists of following members:
Mr. Popatbhai V. Patel - Chairman
Mr. Dilipkumar K Trivedi - Member
Mr. Dinesh M Mundra - Member
DIRECTOR'S RESPONSIBILITY STATEMENT
As Required under Section 217(2AA) of the Companies Act 1956, we hereby
1. That in the preparation of the annual accounts, the applicable
accounting standards has been followed, along with proper explanation read
with the notes to the accounts relating to material departures;
2. That the 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 as at
31st March, 2011 and of the profits of the Company for the year end on that
3. That the 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 irregularities.
4. That the Directors had prepared the Annual Accounts on a going concern
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE ERNNIGS
Your Company has been engaged in hotel industry. The source of energy for
the Company is Electricity and Gas. The Electricity charges contributes
major portion of expenses of the Company. In view of this, your Board is
striving for the conservation of Electricity under the supervision of one
senior Executive on a continuous basis, to achieve optimum consumption of
electricity and other fuels.
The other information as required under the Companies (Disclosure of
particular in the report of the Board of Directors) Rules, 1988, is not
applicable to the Company and hence disclosure is not made regarding
The details of foreign exchange earnings and outgo are as under:
Foreign Exchange Earned - NIL
Foreign Exchange outgo - Rs.0.38 lacs
The Company has not accepted deposits from the public within the meaning of
provisions of Section 58A of the Companies Act, 1956 and the Rules made
M/s Manoj Lekinwala & Co. Chartered Accountants, Gandhinagar, Statutory
Auditors of the Company retires at the ensuing Annual General Meeting. The
Audit Committee has recommended to the Board the re-appointment of M/s
Manoj Lekinwala & Co. as statutory Auditors along with M/s. G. J. K &
Associates to be appointed as joint Auditors of the Company and you are
requested to consider their re-appointment along with joint Auditor. The
Auditors have given the certificate that the re-appointment, if made, will
be within the prescribed limit specified under section 224 (1B) of the
Companies Act, 1956.
The Auditors' observations read with the Notes to the accounts are self
REPORT ON CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION ANALYSIS
As required under Clause 49 of the Listing Agreement, your Company has
already implemented Corporate Governance for the financial year 2010-2011.
A Management Discussion and Analysis Report along with detailed report on
Corporate Governance attached with this Report and form part of the Annual
Your Directors place on record their sincere appreciation for the service
and co-operation extended by the Government Departments, State Bank of
India, financial institutions, business associates and continue support of
the employees at all levels and all the investors of the Company, which
helped the Company to sustain its growth even during the challenging times.
By Order of the Board,
For, GANDHINAGAR HOTELS LTD
Place : Gandhinagar Pritesh V Joshi
Date : 30.08.2011 Vice Chairman & Jt. Mg. Director.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
This Management discussion covers the financial results and other
developments during April, 2010 to March, 2011 in respect of the Company.
Some statements discussion describing the projection may be forward looking
actual results may be forward looking actually may different materially on
account of various external factors such as government regulations, tax
regimes, changes in demand and supply constrains and other identical
The Hotel Haveli as of now is 'Fortune Inn Haveli' started its business
operations in the year 1991 and upgrading its facilities and hospitality
services on a year to year basis. The Hotel is a 3 star business hotel
strategically located at Gandhinagar, the capital of state of Gujarat.
The year 2010-2011 witnessed an inclusive economic growth, especially state
of Gujarat. The growing industrialization in the state of Gujarat helped
the hotel industry to grow efficiently and rapidly. The overall year showed
positive trend for hotel industry.
The hotel industry is largely dependent on the growth of the other
industries. The year 2010-2011 showed a rapid growth in other industries.
During the year company has signed MOU with the Government of Gujarat for
development of two 5 Star category hotels. The hotel business is likely to
grow in recent future by offering excellent hospitality and quality
services. The Company is committed to provide quality services.
Opportunities, Threats, Risks and concerns
The Company enjoys a fairly good position in the hotel industry with the
Fortune Inn Haveli brand name. In view of the strategic plans and vision,
the company is set to achieve higher rate of growth by catering needs and
excelling in hospitality and services. In view of the rapid growth
witnessed by other industry, the company expects to grow strongly.
Strengths & Weaknesses
Hotel is conveniently located to cater to business and other guests. :
Frequent Changes in lower category of staff
Existing Profit generating Hotel :
High tax structure in the business including luxuries tax and other taxes
Experienced Management Team and Motivated Work Force :
Increasing in the Operating cost of the Company and other fix expenses
Capacity of Standard Room for availing largeClient base. :
Opportunities & Threats
Sales and Marketing arrangement with fortune parks Hotels Limited Gives
very vast opportunity :
Increasing Competition in hotel business
The Focus on Corporate Clients which tend to increase in Gandhinagar due to
GIFT project of Gujarat Govt :
The business largely depends on corporate events and affected by govt.
Strong Brand Tie-up Increasing cost of Raw Materials :
Raising Income level attract the business Increase in cost of maintenance
Internal Control Systems
The Company has adequate internal control systems in respect of efficiency
of operation, financial reporting, compliance with laws etc. Exercises for
safeguarding assets and protection against unauthorized use are undertaken.
The Management review internal control system from time to time.
Review of Financial Performance
The Financial performance during the year ended 31st March, 2011 was
satisfactory with compare to last financial year. The Company expects
better performance in the years to come. During the year under review the
Company has achieved a Net profit of Rs. 85.03 Lacs as Compared to Rs.
76.68 Lacs for last financial year.
Our senior management team consists of experienced individuals with diverse
skills in manufacturing, engineering, international business and finance.
We believe that our employees are the key to the success of our business.
We focus on hiring and retaining employees and workers who have prior
experience in the hotel industry. The relations between the employees and
the Management have remained cordial.
Segment Wise or product wise performance:
The details regarding Performance of various sources of the Company for
current as well as last financial year is as under by way of graphical