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Jindal Hotels Ltd.

BSE: 507981 Sector: Services
NSE: N.A. ISIN Code: INE726D01016
BSE LIVE 15:14 | 18 Aug 50.00 -2.00
(-3.85%)
OPEN

50.30

HIGH

52.50

LOW

50.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 50.30
PREVIOUS CLOSE 52.00
VOLUME 436
52-Week high 55.00
52-Week low 34.20
P/E 119.05
Mkt Cap.(Rs cr) 30
Buy Price 49.80
Buy Qty 100.00
Sell Price 52.50
Sell Qty 95.00
OPEN 50.30
CLOSE 52.00
VOLUME 436
52-Week high 55.00
52-Week low 34.20
P/E 119.05
Mkt Cap.(Rs cr) 30
Buy Price 49.80
Buy Qty 100.00
Sell Price 52.50
Sell Qty 95.00

Jindal Hotels Ltd. (JINDALHOTELS) - Director Report

Company director report

JINDAL HOTELS LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT Dear Members, Your Directors take pleasure in presenting the 27th Annual Report and Audited Statement of Accounts for the financial year ended 31st March, 2012. Financial Performance: Your Company's financial performance for the year ended March 31, 2012 is as below: (Rs.) Particulars Year ended Year ended 31.03.2012 31.03.2011 Turnover 26,64,23,229 23,04,22,947 Less: Expenditure 19,28,61,532 16,63,48,642 Profit before Depreciation, Interest and Taxation 7,35,61,697 6,40,74,305 Interest 1,41,48,774 1,25,98,232 Depreciation & Amortization 1,59,44,025 1,44,35,001 Profit before Taxation 4,34,68,898 3,70,41,072 Provision for Income Tax/Def. Tax 1,32,50,934 1,18,49,331 Net Profit after Taxation 3,02,17,964 2,51,91,741 Profit Brought Forward 4,77,33,748 3,16,20,807 Disposable Surplus 7,79,51,712 5,68,12,548 Transfer to General Reserve 35,00,000 35,00,000 Proposed Equity Dividend 48,00,000 48,00,000 Tax on Dividend 7,78,800 7,78,800 Balance Profit C/F 688,72,912 4,77,33,748 Review of Operations: Your Company performed well during the year, under review. The sales and other income of Financial Year 2011-12 was recorded at Rs.2664.23 lacs and have increased by 15.63% as compared to previous Financial Year 2010-11 (P.Y Rs.2304.22 lacs). In the financial year 2011-12, there was a healthy Rev PAR (Revenue per available Room) growth being observed. There was increase in room occupancy rate due to renovation, refurbishment and up gradation of guest rooms, supported by personalized service and provision of special amenities for guest comfort. The Company emphasizes for a sharp focus on marketing strategy as well as consistent sales effort and this has contributed well to increase room occupancy and ARR. Our innovative food and beverage offerings also got their due recognition and patronage with significant increase in Restaurant and Banquet business. Due to efficiency at every stage of operation, internal cost control system and prudent management measures, the bottom line has also improved considerably. Prospects & Concerns: Global economic recovery is losing track due to continuing weakness in the US economy and Euro Zone debt crisis. And at national level, the state of the economy is a matter of growing concern with slowing economy, increase in cost of inputs due to persistently high inflation, unstable political environment, hike in petroleum prices, drought situation in many regions of India, continued turbulence in the aviation sector and devaluation of Indian rupee. The United Nations World Tourism Organization (UNWTO) expects growth to continue for the tourism sector in 2012 although at a slower rate. Due to economic and political scenario worldwide, demand for business travel may remain stable. World Travel & Tourism Council (WTTC) expects travel and tourism (T&T) demand in India to grow above 8 per cent annually till 2019, the highest growth, thereby making India, a second highest tourist destination after China. Several studies have highlighted that there is a gap in the demand- supply of hotel rooms in India. A greater need is being felt in the mid- market and budget hotels segment. It is estimated that the room demand in the premium segment hotels in 10 major cities in India increased by around 5 per cent since the past one year. The room demand in rest of India is expected to grow by approximately 10 per cent over the next five years. Indirect Taxes are again a concern for this segment. The high VAT rate & increase in rate of service tax had resulted in increase in the cost of materials and services. Last year's Budget has shown a negative impact on Indian hotels. The imposition of service tax on Room Sale affected Indian hotels at large, which led to a decrease in growth of hotel industry. Current Year: Demand is likely to remain steady in the current year. We expect to have increase in market share (room division) with the addition in rooms. Our main forte and focus has been the popularity of our Food and beverages facilities. Your Company continues in its quest for excellence by constant improvement of the guest experience through better service levels and product upgrades. A lot of credit for these enhanced satisfaction levels goes to the positive experience at the newly furnished rooms. The suites as well as renovated rooms have been very well received and were a key differentiator that facilitated in the hotel garnering high profile business from Corporates. We are indeed proud to share that your Company has been recognized and duly awarded Certificate of Excellence for the year 2012 by its guests by TRIP ADVISOR. in world's most trusted travel advice portal. A strong Guest Relations Management (GRM) initiative has been activated through personalized services, collection and analysis of guest information, effective communication and proper networking system. This will ensure that we retain as well as build upon current businesses and consolidate our market positions. The optimism surrounding the Indian hospitality industry is not without challenge. The industry faces certain obstacles, which need to be overcome to realize its potential to the fullest. Your Hotels communication campaign is through leading dailies, magazines, hoardings and social networking (Facebook and Twitter) also. The management has taken active steps to promote the property with some effective marketing initiatives. We are launching some new services to add to the brand portfolio. Internal skill sets are being honed and developed for better utilization and implementation of available resources. With these efforts, we hope to maintain the profitability of your Company in the coming years. Expansion Project: Your Company is progressing ahead in the expansion on project on adjoining land of existing hotel building. The profile of expansion project is as specified: * Ball Room: 6500 sq.ft of pillar-less banqueting with around 3500 sq.ft of pre-function area. This would be the largest banqueting and conferencing facility available in the City. * Board Room/Business Centre: Apart from the above mentioned hall there are 4 break away halls of more than 1000 sq.ft each with a state of art Board Room & Business Center. * Specialty Restaurant/Terrace Restaurant/Grill Restaurant/Deli: The food & beverage would have a complete new look with the addition of specialty restaurant, one open terrace barbeque & grill restaurant & a Deli along with a sprawling wellness spa & swimming pool facility. The Management is taking effective steps for completion of the project at stipulated time and within the budget. Dividend: Your Directors are pleased to recommend a dividend @ 8% i.e. Rs. 0.80 Per Equity Share of Rs. 10/- each for the financial year ended March 31st, 2012. Directors: Mr. N D Shah, had been positioned as Non executive Director w.e.f. 1st March, 2012. Mr. N D Shah was an Executive Director of the company since 1995 till 29th February, 2012 and had played an important role in nurturing and developing the Company. Mr. J. G. Patel and Mr. M. P. Bakshi, Directors, who retires by rotation, are eligible for re-appointment and have shown their willingness to be re- appointed as Director. Insurance: The Company has a broad-banded approach towards insurance. Adequate cover has been taken for all movable and immovable assets against numerous risks and hazards. Statutory Disclosures: None of the Directors of your Company is disqualified as per the provisions of Section 274(1)(g) of the Companies Act, 1956. Your Directors have made the necessary disclosures, as required under various provisions of the Act and Clause 49 of the Listing Agreement. The Company has no employee during the year covered under Section 217(2A) of the Companies Act, 1956. The provision under Section 217(i)(e) of the Companies Act, 1956 are not applicable since the Company belongs to the hospitality industry. During the year under review, your Company earned foreign exchange equivalent to Rs. 2,20,68,770 (Previous year. Rs.67,80,977), whereas outflow of foreign exchange was equivalent to Rs.76,73,097 (Previous year Rs. 6,79,346). Auditors: M/s. V. Shah & Associates, Chartered Accountants, Baroda, hold office as Auditors of the Company till the ensuing Annual General Meeting, and being eligible, offer themselves for re-appointment. Members are requested to re-appoint M/s. V. Shah & Associates, Chartered Accountants, Baroda, as Auditors of the Company for the current year, to hold office from the conclusion of ensuing Annual General Meeting until the conclusion of the next Annual General Meeting. Corporate Governance: Pursuant to Clause 49 of the Listing Agreement with the Bombay Stock Exchange, Corporate Governance Report and Auditors' Certificate regarding compliance of conditions of Corporate Governance are made a part of the Annual Report. Internal Control Systems & their adequacy: The Company has proper and adequate system of Internal Control Procedures to ensure that all transactions are authorized, recorded and reported correctly. This ensures prompt financial reporting, optimum utilization of various resources and immediate reporting of deviations. Compliance with laws and regulations is also ensured and confirmed and is checked by the Internal Auditor of the Company. The reports of the Internal Auditor are reviewed in the meetings of the Audit Committee of the Board. The Audit Committee also reviews adequacy of internal controls, system and procedures, insurance coverage of assets from various risks and steps are taken to manage foreign currency transactions. The Audit Committee also interacts with Internal Auditors and Statutory Auditors of the Company to ensure compliance of various observations made during the conduct of audits and sufficiency of various controls. Management of Human Resources: The strength of your Company lies in its team of competent and motivated personnel. This has made possible for your Company to make significant strides in all areas of its functioning. The Company has also continued its endeavor to impart appropriate and relevant training to its employees at various levels with a view to equip them to take up the challenges that are ahead and to enhance their performance in the overall interest of the Company. HRD activities help tap and utilize the potential of team members and special incentives are provided to increase productivity and reward efficiency. Our approach always amalgamates corporate goals and individual needs. The Company arranges for 'speciality', 'safety/emergency handling' and 'on the job' training. By the end of March 2012, the Company had 161 permanent employees. The Company is proud to possess an exceptional pool of skilled manpower, professionals and executives who are committed to deliver value and satisfaction all the time. Listing of Securities: The Shares of the Company are listed with the Bombay Stock Exchange, Mumbai. The listing fees for Financial Year 2012-13 have already been paid. Directors Responsibility Statement: Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, your Directors confirm that:- (I) In the preparation of the Annual Accounts, the applicable accounting standards have been followed and that no material departures have been made from the same; (ii) Appropriate accounting policies have been adopted and applied consistently and judgments and estimates made 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 and of the profit of the Company for that period; (iii) Proper and sufficient care has been taken 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 fraud and other irregularities; (iv) The Annual Accounts have been prepared on a going concern basis. Fixed Deposits: The Company has not invited deposit from public. However, the Company has accepted interest free deposits during the year under review from Directors, Shareholders and their relatives. The Company has complied with the provisions of Rule 10 of the Companies (Acceptance of Deposits) Rules, 1975 as well as the provisions of Section 58A and 58AA of The Companies Act, 1956. CORPORATE SOCIAL RESPONSIBILITY: The Company is associated with various charitable, social, religious and philanthropic activities and thereby playing a pro active role in the socio economic growth. Acknowledgment: Your Directors wish to place on record their appreciation towards all associates including Customers, Banks, Financial Institutions, Shareholders and the society at large who have reposed their confidence in the Company. The support of the Bankers, Central and State Government Officials, Solicitors, Advisors, and Business Associates need a special mention here. Without their unflinching support, this performance of the Company would not have been possible. The Directors also wish to place on record their appreciation to the team of executives, staff and workers, who have shown immense dedication and efficiency in performing their duties. Your Directors look forward to a long and fruitful association with all of them. For JINDAL HOTELS LTD. Place: Vadodara P. D. Shah Date : 17.07.2012 Managing Director