Management Discussion and Analysis Report
- 2010 - 2011
Statements made in the Management Discussions and Analysis, describing theCompanys objectives, projections, estimates, predictions and expectations may beforward-looking statements, within the meaning of applicable securities lawsand regulations. As forward-looking statements are based on certainassumptions and expectations of future events over which, the Company exercises nocontrol, the Company cannot guarantee their accuracy nor can it warrant that the same willbe realized by the Company. The Companys actual results, performance or achievementscould thus differ materially from those projected in any such forward-looking statements.The Company assumes no responsibility to publicly amend, modify or revise any forwardlooking statements on the basis of any subsequent developments or events or for any lossany investor may incur by investing in the shares of the Company based on theforward-looking statements.
Financial Year 2011 started on a positive note as the Indian economy continued todisplay remarkable resilience to the lingering effects of the previous two years when theeconomic growth was subdued as a result of global financial crisis. The growth during2010-11 was contributed by a rebound in agriculture and sustained levels of activity inindustry and services. Despite the economic downturn two years back, the Indian economyhas managed to remain stable. The economic growth, as measured by the Gross DomesticProduct, improved to 8.5 per cent in 2010-11 from 8 per cent in 2009-10 due to better farmoutput and construction activities and financial services performance. The GDP growthfigures for the first and third quarters of Financial Year 2011 have been revised upward.While the GDP growth figure for Quarter 1 has been pegged at 9.3 per cent - as against theearlier estimate of 8.9 per cent - the Q3 GDP growth has been revised upward to 8.3 percent from 8.2 per cent.
Tourism is a significant sector of the Indian economy and contributes significantly tothe countrys gross domestic product (GDP) and foreign exchange earnings (FEE). TheIndian tourism sector is also linked with important sectors such as transportation,infrastructure, and handicraft, which further helps in the growth and development of thecountry.
Combining unparalleled growth prospects and unlimited business potential, the industryis certainly on the verge of being a key player in the nations changing face. Thefortunes of the hospitality industry have always been linked to the prospects of thetourism industry and tourism is the foremost demand driver of the industry. The Indianhospitality industry has recorded healthy growth fuelled by robust inflow of foreigntourists as well as increased tourist movement within the country and this has made it oneof the leading players in the global industry.
The Ministry of Tourism has made various efforts to expand the tourism infrastructureat various destinations in India. These efforts are a judicious blend of traditions,legacy, religion and eco-tourism projects that intend to offer the tourists a holisticexperience.
India currently holds the 12th position in Asia and 68th position in the list ofoverall worlds most attractive tourist destinations, as per the Travel and TourismCompetitiveness Report 2011 by the World Economic Forum (WEF).
According to the latest Tourism Satellite Accounting (TSA) research, released by theWorld Travel and Tourism Council (WTTC), the demand for travel and tourism in India isexpected to grow by 8.2 % between 2010 and 2019. This will place India at the thirdposition in the world. Indias travel and tourism sector is expected to be the secondlargest employer in the world. Capital investment in Indias travel and tourismsector is expected to grow at 8.8 % between 2010 and 2019. The report forecasts India toget more capital investment in the travel and tourism sector and is projected to becomethe fifth fastest growing business travel destination from 2010 through 2020.
Luxury hotels are doing brisk business in India. And, occupancy levels are expected toremain robust across India this year, too, thanks to steady demand from the domesticmarket and upswing in tourist arrivals from abroad. Average room rates in the cities likeNew Delhi, Mumbai and Bangalore were up 5-6% in luxury and first class hotels in 2010-11compared with the last fiscal year. On a pan-India basis average rates were up 5.8% in2010-11 compared to the previous year. Hotel companies and analysts believe occupancieswill continue to grow, though additional supply of hotel rooms across several markets willput pressure on average room rates in the short term.
To unlock the huge potential in this sector, the government has taken variousinitiatives for the development of this sector.
According to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce andIndustry, Government of India, the Government has allowed 100 per cent foreign investmentunder the automatic route in the hotel and tourism related industry. And with therelaxation of FDI restrictions on the real estate sector the hospitality industry hasregistered an increase in investments.
With a view to reduce the overall cash outflow towards Income tax in the initial yearsof hotel operations and with a view to give an impetus to the companies in the hotelindustry to expand their business, the Government of India has recently made aclarificatory amendment to section 35AD of the Income Tax Act in the Union budget 2011-12,which now allows new hotels to set off the benefit of investment based deduction againstthe profit from other existing hotels of the company
The tourism and hospitality sector report by the Ministry of Tourism suggests that thedemands are expected to increase up to US$ 34.7 billion by the end of 2020. In order topromote this target, the Ministry has already sanctioned the development of 169 ruralsites across the country. These sites have been selected based upon their competencies forcraft and handloom skills.
Statistics suggest a triple fold increase in the number of tourists visiting thecountry. The sector has witnessed a steady growth from 4 million travelers in 1998 to 11million in 2008. As expected, the figure in intended to reach a mark of 29 millionvisitors by 2018. There is an opportunity in the inbound MICE sector (meetings,incentives, conventions and events) which has already registered a growth of 15 per centto 20 per cent during the last five years as stated in the report by the Ministry ofTourism.
Moreover, the Ministry has initiated several measures to promote Medical and HealthTourism which includes promotion in overseas markets and production of publicity materialslike brochure, CDs and films etc. and their distribution in target markets.
INFORMATION TECHNOLOGY INDUSTRY:
IT industry is one of the fastest growing industries in the world. The Indianinformation technology industry has played a key role in putting India on the global map.From the last decade India has become one of the most important offshore destinationamongst the Asia pacific region. The current scenario in the IT industry of India and thetremendous growth registered in recent years has generated much optimism about the futureof the Indian Information technology industry. During 4 to 5 years it increased three foldand captured the leadership position in the world market. The IT industry accounts for amajor share in the exports from India. The biggest benefit of the IT industry is the hugeemployment it generates. For a developing country like India, with a huge population, thehigh rate of employment in the IT sector is a big advantage. New markets for softwareexports from India have opened up in the Middle East, South and Southeast Asia, Africa,and Eastern Europe. The reputation that India has earned as a major destination for IToutsourcing has opened further possibilities. India is truly the outsourcing capital ofthe world. With stimulus growth of IT sector, there are huge demand for InformationTechnology Tenders, IT Tenders, Global IT Tenders, IT government tenders, IT tendernotification, Tender news, IT Tenders online, IT bid invitation, IT public tender noticesand IT Procurement notices around the world
Poised to become a US$ 225 billion industry by 2020, the Indian information technology(IT) industry has played a key role in putting India on the global map. The Indianinformation technology sector continues to be one of the sunshine sectors of the Indianeconomy showing rapid growth and promise. The IT - BPO sector has become one of the mostsignificant growth catalysts for the Indian economy. In addition to fuelling Indiaseconomy, this industry is also positively influencing the lives of its people through anactive direct and indirect contribution to various socioeconomic parameters such asemployment, standard of living and diversity. The industry has played a significant rolein transforming Indias image from a slow moving bureaucratic economy to a land ofinnovative entrepreneurs and a global player in providing world class technology solutionsand business services, according to National Association of Software and Service Companies(NASSCOM).
The sector is estimated to have grown by 19 per cent in the FY 2011, clocking revenueof almost US$ 76 billion. The export revenues are estimated to have aggregated to US$ 59billion in FY 2011 and contributed 26 per cent as its share in total Indian exports(merchandise plus services), according to a research report IT-BPO Sector in India:Strategic Review 2011, published by NASSCOM. The workforce in Indian IT industrywill touch 30 million by 2020 and this sunrise industry is expected to continue itsmammoth growth, expect various industry experts.
Government sector is a key catalyst for increased IT adoption- through sectors reformsthat encourage IT acceptance, National eGovernance Programmes (NeGP), and the UniqueIdentification Development Authority of India (UIDAI) programme that creates large scaleIT infrastructure and promotes corporate participation.
Certain crucial steps taken by the Indian government to propel the sector growth are:
Constitution of the Technical Advisory Group for Unique Projects (TAGUP) underthe chairmanship of Mr. Nandan Nilekani. The Group would develop IT infrastructure in fivekey areas, which includes the New Pension System (NPS) and the Goods and Services Tax(GST)
Setting up the National Taskforce on Information Technology and SoftwareDevelopment with the objective of framing a long term National IT Policy for the country.
Enactment of the Information Technology Act, which provides a legal framework tofacilitate electronic commerce and electronic transactions.
Setting up of Software Technology Parks of India (STPIs) in 1991 for thepromotion of software exports from the country. There are currently 51 STPI centres whereapart from exemption from customs duty available for capital goods, there are alsoexemptions from service tax, excise duty, and rebate for payment of Central Sales Tax.
Plans to formulate Information Technology Investment
Regions (ITIRs). These regions would be endowed with excellent infrastructure and wouldreap the benefits of co-siting, networking and greater efficiency through use of commoninfrastructure and support services.
According to a report prepared by McKinsey for NASSCOM called Perspective 2020:Transform Business, Transform India, the exports component of the Indian industry isexpected to reach US$ 175 billion in revenue by 2020. The domestic component willcontribute US$ 50 billion in revenue by 2020. Together, the export and domestic marketsare likely to bring in US$ 225 billion in revenue, as new opportunities emerge in areassuch as public sector and healthcare and as geographies including Brazil, Russia, Chinaand Japan opt for greater outsourcing
The prospects for the hotel industry in India are bright. With revival in the globaleconomy, international tourist inflow into the country is expected to rise. The upcomingindustrial parks, manufacturing facilities and ports across the country provide a goodopportunity for budget and mid-market hotels. The supply of branded/quality rooms in Indiais much lower compared to other countries across the globe. Hence, there exists hugepotential for investors and operators across all the segments of hotel industry in India.The increase in room inventories is expected to make the hotel industry more competitiveand hotels would be under pressure to maintain quality and service levels at competitiveprices. Competitive pricing amongst the branded hotels along with the addition of morebudget and mid-market hotels would make the hotel industry cost competitive with otherdestinations. This would aid the growth of segments such as MICE ( Meetings, Incentives,conferencing, Exhibitions Section), amongst others.
While there is immense potential, concerns for growth of the industry remain. Theseinclude high real estate prices in the country, security threats, shortage of manpower,high tax structure, and non-uniformity in taxes.
The fortunes of the hospitality industry are closely linked to the tourism industry andhence tourism is one of the most important growth drivers. In addition, all factors thataid growth in the tourism industry also apply to the hospitality industry. The Indianhospitality industry has recorded healthy growth in recent years owing to a number offactors. A few of them are cited below:
Increased tourist movement
Increased Foreign Tourist Arrivals and tourist movement within the country has aidedgrowth in the hospitality industry. Healthy corporate profits and higher disposableincomes with easier access to finance have driven the rise in leisure and businesstourism, thus having a positive impact on the hospitality industry.
India is one of the fastest growing economies in the world. Attractiveness of India hasencouraged foreign players to set up their operational facilities in the country. Domesticindustries have also made heavy investments to expand their facilities through greenfieldand brownfield projects.
Changing consumer dynamics and ease of finance
The country has experienced a change in consumption patterns. The middle classpopulation with higher disposable incomes has caused the shift in spending pattern, withdiscretionary purchases forming a substantial part of total consumer spending. Increased
affordability and affinity for leisure travel are driving tourism in India and in turnaiding growth of the hospitality industry. Emergence of credit culture and easieravailability of personal loans have also driven growth in the travel and tourism andhospitality industries in the country.
INFORMATION TECHNOLOGY INDUSTRY:
This is one industry where the government has been very proactive, has gone out on alimb and made sure that the industry has a chance to succeed on a global level. The valueproposition of the Indian software industry can be summed up as "faster, better, andcheaper." The Indian companies have taken responsibility on an end-to-end basis fornew software development and for re-engineering. Re-engineering means taking an existingpiece of software and making sure that it is upgraded to keep pace with changes intechnology, or changes in the market place.
India is now known globally for its mantra "Information Technology"which has its roots in the strategic infection started by the success ofIndias export led software industry. Just a few years ago, a small group ofinitiators within the government and entrepreneurs outside, visionthe opportunities and started branching from export of software to IT EnabledServices. The government responded to this move by being a silent spectator, ratherthan imposing rules and controls. But within two years of this great initiative, even thegovernment has come up with full support to change the environment for InformationTechnology (IT). While the initial phase of IT in India witnessed a very small segment ofpublic representatives in the government and entrepreneurs managing the micro environmentto get more and more information Technology related business of India, the government willnow enable a paradigm shift to "Hub to Globally Competitive value services" asagainst talent provider (Long Term National IT Policy), thus working as catalyst to changethe macro environment to suit this opportunity. This has transformed InformationTechnology Business in India from a small sector to a large and growing industry.
RISKS AND CONCERNS
Whilst the Major Risk Review focused on a number of changing or emerging risks, theCompany is subject to a variety of inherent risks which may have an adverse impact on thebusiness, results of operations, cash flow, financial condition, turnover, profits,assets, liquidity and capital reserves. The following section describes some of the mainrisks that could materially affect the Companys business. The factors below shouldbe considered in connection with any financial and forward-looking information in thisAnnual Report and the cautionary statements regarding forward-looking statements givenelsewhere in this section.
The risks below are not the only ones that the Company faces. Some risks are not yetknown to the company and some that the company does not currently believe to be materialcould later turn out to be material
Political, Economic & Financial Risks:
The Company is exposed to the inherent risks of global and regional adverse political,economic and financial market developments, including recession, inflation, availabilityof affordable credit and currency fluctuations that could lower revenues and reduce income
Human Resource employment, development and retention:
In order to remain competitive, the Companys endeavor is to employ the rightpeople. This includes hiring and retaining highly skilled employees with particularexpertise or leadership capability. The implementation of the Companys strategicbusiness plans could be undermined by failure to build resilient corporate culture,recruit or retain key personnel, unexpected loss of key senior employees, failures in theCompanys succession planning and incentive plans, or a failure to invest in thedevelopment of key skills.c
Cyclical Nature of Hotel Industry
The future operating results of the Company could be adversely affected by industryovercapacity (by number of rooms) and weak demand due, in part, to the cyclical nature ofthe hotel industry, or other differences between planning assumptions and actual operatingconditions. Reductions in room rates and occupancy levels would adversely impact theresults of Company operations.
Shareholders perception & Socio-Environmental aspects
The reputation of the Company and the value of its brands are influenced by a widevariety of factors, including the perception of key stakeholders and the communities inwhich the Company operates. The social and environmental impacts of business are underincreasing scrutiny, and the Company is exposed to the risk of damage to its reputation ifit fails to demonstrate sufficiently responsible practices, ethical behavior, or fails tocomply with regulatory requirements.
Globalization and free market economy have paved way for international hotel chains toenter the Indian Market. Moreover the phenomenal growth in the Indian economy registeredover the past few years has made India a hub for the international entrants which in turnhave intensified competition. The Success of the company largely depends upon its abilityto match the International quality standards, Location benefits etc.
Increased Outbound Travel:
Low Airfares (both Domestic and International) and higher disposable income haveresulted in increased Outbound Travel and may pose a risk to the hotel segment of theLeisure Resorts in India
RISK MANAGEMENT MEASURES ADOPTED BY THE COMPANY
Risk management is an integral part of the Companys business process. With thehelp of experts in this field, risks are carefully mapped and a risk management frameworkis evolved. Pertinent policies and methods are set forth to mitigate such risks. Inaddition to the physical security measures, the Company has also taken adequate insurancecover to meet financial obligations which may arise from the various risks faced by theCompany.
To counter the risk from growing competition, your Company is renovating itsproperties. It is also improving its service standards to provide exceptional services,consistently, across all its hotels. The Company is also trying for operating andfinancial leverage by expansion through management contracts and leveraging the strengthsof its Associates and subsidiary companies. Purchasing Hotel Properties at strategiclocations in India will also bolster the companys business in the long run and equipthe Company to reinforce its existence and face competition efficiently.
To counter employee related risks, the Company has framed a comprehensive employeepolicy conducive to attract, retain and motivate its employees which is reviewed from timeto time to ensure its efficacy at all times.
To counter the cyclical nature of the hospitality business, the Company has enteredinto tie-up arrangements, Business Management Agreements, Affiliation with RCI, time sharebusiness and similar other arrangements to generate additional revenues to meet theminimum working capital requirements of the Company in the slag period.
CHALLENGES AND KEY SUCCESS FACTORS:
No organization operating today can be unaware of the swift pace of global change andits impact on every facet of the industry in which it operates. New business practices areevolving virtually as fast as our technologies, while resistance to change has become oneof the primary causes of business failure.
The future success of an organization will be driven in large part by the ability toforesee and capitalize on change. Beyond this truism, however, there is an urgent need toidentify what will be required in the competitive environment of the future with itsintense focus on serving customer needs. The hospitality industry and IT Industry as isthe case with business generally, is subject to deep currents of change set in motion aseconomic and social systems shaped in the industrial era evolve to a knowledge-based eradriven by technology advances.
In this period of global transition, it behooves organizations to examine the keyfactors that will not only define success, but the ability to survive in coming years. Inmeeting the future, these businesses will need plans, people and processes in order toestablish viable corporate forms that can compete in tomorrows marketplace andcapitalize upon its opportunities.
These challenges all take place in an environment where capital has become extremelyselective in markets that have little stability. A global shortage of capital will notremain a short-term problem, and future hotel organizations must have a stronger alignmentto capital provider. Hotel companies will need to compete by offering better returns andperformance than in the past.
Key Success Factors - The Future
Within this broad context, developers, owners and management companies in theHospitality Industry will all need to develop new strategies, skills and processes thatlook forward to the competitive demands of the future. These ultimately must addressissues related to vision and planning, as well as organizational skill sets and processesto attract and retain customers. To stake a claim in the future, current businesspractices should be examined in light of what can be expected to be the key successfactors in the year 2012.
Embrace a global change orientation
As the information age produces greater worldwide integration of business activities, aglobal knowledge base will become invaluable. Success in local and regional hotel marketswill be shaped decisively by a global business environment that defines capital movement,customer expectations and applications of new technologies.
Focus on the Customer
If the customer is "king" in the 21st century, hotel organizations will bebest served by focusing less on their hotel assets as measures of success, and more ontheir customers. A customer focus implies a significant shift in what drives hoteldevelopment placing primary emphasis on the customer with the locations to follow.Nevertheless, a hotel organization with its large investment in fixed assets thereal estate can never be as nimble as a consumer products company in adjustingproducts and services to match rapid shifts in the marketplace.
Create a defensible position through corporate strategy
For many of the industrys leaders, vision is driven by the strategic planningprocess, a function which has become critical for success. Strategic planning, however,has at times been a step-child in the hotel industry, and it is often the first to be cutwhen organizations are downsized. It is clearly in transition. There also has been atendency to decentralize and simplify this function both actions of potentialbenefit. Strategic planning must be led by the top people in the organization. On theother hand, it should be close enough to the customer to ensure that planners can"listen" to and be influenced by customer needs.
Beyond the ability to envision the future, core management capabilities will make thedifference they are essential. A clear vision without the management skills tosupport it cannot be a recipe for success. First and foremost, hotel management must havestrategic development skills and the ability to integrate complex factors affectingsuccess. Market volatility has become the norm, in part caused by the rapidly changingtastes of customers. Customers are increasingly approaching the hotel industry with widelydifferent social, economic and political backgrounds, to say nothing of employees. Beingable to deal with these diversities in a positive and constructive fashion thatcapitalizes on the differences, rather than working to find ways to mitigate them, is theclear path for successful management in the future.
Be in the information fast lane
The traditional role of information technology (IT) as a back office support foraccounting and bookkeeping has clearly moved front and center stage. IT today influencesall aspects of business from corporate strategies to organizational structure andfrom the very business processes it is designed to support to performance measurement. Ina world where the customer is "king," IT must also deliver in two criticalareas: sales and marketing and customer service.
Technology was once viewed as a way to reduce costs by replacing people. That attitudehas been firmly supplanted by one that seeks IT support for the creative work that allorganizations must pursue. IT must allow organizations to react more speedily to marketneeds and, of course, produce the fulfillment of customer demands both quickly andaccurately. To do this IT must operate on a decentralized basis. IT delivers, but it hasto be the right information to the right people, and it needs to be done on a timely basis
INTERNAL CONTROL SYSTEM AND ITS ADEQUACY:
The Internal Control System is an essential element for effective corporate governanceof any Company and plays a vital role in identifying, minimizing and managing risks thatare significant for the Company, contributing to the safeguarding of thestockholders investments and the Companys assets
The Internal Control System also facilitates the effectiveness and efficiency ofCompany operations and helps ensure reliability of financial information and compliancewith laws and regulations. In particular, the Accounting Control System is an importantelement of the Internal control System as it helps ensure that the Company is not exposedto excessive financial risks and that the financial internal and external reporting isreliable.
The Internal Control System reduces, but cannot eliminate, the possibility of poorjudgment in decision-making; human error, control processes being fraudulently violated byemployees and others; and the occurrence of unforeseeable circumstances. A sound InternalControl system therefore provides reasonable, but not absolute, assurance that a companywill not be hindered in achieving its business objectives, or in the orderly or legitimateconduct of its business, by circumstances which may reasonably be foreseen.
The Internal control system encompasses the policies, processes and behaviors of theCompany, taken together:
facilitate the effectiveness and efficiency of its operations by enabling it torespond appropriately to operational, financial, compliance and other risks that hinderthe achievement of the Companys objectives;
help ensure the quality of internal and external reporting. This requires themaintenance of proper records and processes that generate a flow of timely, relevant andreliable information from within and outside the organization;
help ensure compliance with applicable laws and regulations and internalprocedures;
Safeguard the companys assets from inappropriate use or from loss orfraud.
The Company has Internal Audit System in place, in order to examine and evaluate theadequacy and effectiveness of internal Control System. The Internal Audit ensures thatthat the systems designed and implemented provides adequate internal controls commensuratewith the size and operations of the Company.
The Audit committee of the Board, statutory auditors and the top management areperiodically apprised of its activities and internal audit finding. The Audit committee ofthe Company comprising of Independent Directors periodically reviews and recommends thequarterly, half yearly and annual financial statements of the Company. A detailed note onthe functioning of the Audit committee forms a part of the chapter on corporate governanceof this Annual report
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
Your Company strongly believes that human resource is an indispensable part of anyorganization and plays a very vital role in the growth and long term success of theCompany. With a view to achieve the goal of Human Resource Development which is an ongoingprocess, your Company has recently launched a Human Resource Developmentportal providing access to its employees and keep them informed and updated on theCompanys Human Resource Polices.
Your Company reposes confidence in its employees and is open to feedbacks andsuggestions and also gives them an option of reporting their grievances to the managementwith an assurance of strict confidentiality and prompt action on the same, this in a wayenables the management to ascertain the level of employee satisfaction at regularintervals. The Companys Management with the assistance of the HR Department, analyzethe critical human resource issues and endeavors to take timely corrective action andmonitors its implementation on regular basis. Your Company believes that alignment of allemployees to a shared vision and purpose as envisaged by the Company, is one of theperquisites for the existence and well being of the Company and its stakeholders
The various Human Resource Development initiatives / steps taken by the company duringthe year, to boost employee morale, motivate them, to invoke the feeling of being a partof the company and to solicit employees contribution towards the growth of the Company areas follows:
Performance based incentives to its employees
Soft Skill Training Programmes for all its Hotel Employees
Coverage of employees under accident policy ( not covered under ESI),
Campus hiring for extending employment opportunities for rural youths /underprivileged
Green globe initiative at United-21, a Four Star Hotel managed bythe Company at Thane
Employee picnic at its resort at Panvel for stress reduction and with a view topromote team building.
Initiated the formation of Employees Co-op Credit society to providefinancial assistance to the employees
Industrial Relations throughout the year were cordial at all hotels and operating unitsof your Company. As n 31st March, 2011, the Company had 177 employees.
COMPANYS BUSINESS AND SEGMENT WISE PERFORMANCE:
With a vision to be known as hospitality innovators worldwide and guided bythe principles of Honesty, Hardwork and Intelligence, Panoramic Group is now set torise on Indias corporate horizon with its unique business models. Hospitality,Travel, Tourism, Real Estate and Power are the next big triggers identified by the Groupfor its growth trajectory.
The Group has successfully launched two travel portals www.traveluniversally.com in USAand www.travelhot.in in India. The USP of these portals is that they offer more than 365tours itinerary across the globe to the customers, with the freedom to choose. The portalalso offers the best hotel deals and air tickets at economic prices. There are more than200 hotels registered on the portal offering competitive rates to customers. The grouptargets to add another 2000 hotels across India to its platter in the next few months towiden the choice
The Group has also launched "Magic Holidays", a Holiday Scheme offeringaffordable holidays to its customers which offers yearly ownership ofpicturesque properties for 7 days every year for 25 years not only across India, butaspirational countries like USA and naturally beautiful countries like New Zealand. TheCustomers availing Magic Holidays Scheme are also provided holiday exchange facility whichprovides them access to about 6000 international resorts worldwide which are affiliated toRCI. RCI Affiliation is just the first one in line of the other international affiliationsthat the Group is planning.
The total revenue from the Hospitality business for the year ended 31stMarch 2011 increased to Rs. 578.64 lacs from Rs. 396.59 lacs in the previous year.
Our Hotels & Resorts in India
The Panoramic Group currently owns Six Hotels, Clubs and Resorts in India.
United21, a newage luxury destination at Thane serves the twin purposes ofa 4-star Hotel and a Lifestyle Club provides facilities like Orbits (Discotheque), WOW(Spa / Wellness Centre), Spices & Sauces (exclusive Restaurant), Blue Flame(Multi-cuisine Restaurant), Waves (Lounge Bar), Anytime (24 hours Coffee Shop) etc. It hasa room inventory of 46 rooms
Pancard Clubs, Pune is next in line and is one of Punes prestigious leisure clubswhich is located at the foot of Baner Hills. Area 51, a UFO-shaped discotheque with arevolving lounge is located within the premises of Pancard Clubs. It is one of the largestdiscotheques in the country and the best in Pune City.
Panoramic Resort, Panvel (Water & Amusement Park) located just adjacent to theKarnala Bird Sanctuary is the point of attraction for picnics and outings for families,friends and peers. It has room inventory of 37 rooms. Various tie up arrangements likeEducational Package Facility Agreements with Picnic Organizers for Schools, Colleges etc.have added to the revenue generation from Panoramic Resort.
Hotel Sai Sahavas, Shirdi is another notable hotel property of the Group which is aperfect blend of sanctity and luxury. It has room inventory of 38 rooms. The life-sizeidol of Shri Sai Baba in the spacious meditation hall which is the exact replica of theoriginal idol in Shirdi, is the point of attraction and the luxurious rooms for visitorsadd to the flavor.
Graciano Cottages, Goa is situated near Colva Beach. It has a room inventory of 22rooms.
Hotel Sagar Kinara, Malvan is located opposite the famous Sindhudurg Fort on the beachat Somvar Peth. It has a room inventory of 30 rooms.
Coming years shall see the Panoramic Group add several hundred rooms across variouscategories of hotels, resorts & several hundred apartments for the common man; offerunique portals and have varied products in Hospitality Industry. The Group has acquiredland at several strategic locations for its upcoming star category & mixed useprojects. The various upcoming projects of the group are:
3-Star Hotel and a commercial complex at Jaipur located opposite the JaipurRailway Station
A project at Baner Hills, Pune comprising of a Business Hotel, 5-star Hotel,Club and Shopping complex / Event space
4-Star Hotel under the brand name "United-21" at Hyderabad comprisingof 85 rooms, located in the heart of the City
3-Star Hotel & Family club at Durgapur sprawled over a spacious 50,000 sq.ft.
4-Star Hotel and serviced apartments at Munnar, Kerala
5-star deluxe Resort at Kumarakom, Kerala with one of the finest spas in theCountry.
150-room Jungle Resort at Goa offering a living in a natural jungleexperience.
Our International Hotels & Resort
The company currently owns Six Hotels and Resorts abroad, five in USA and 1 in NewZealand.
The Georgian Resort, USA, an unrivaled Georgias Luxury Resort located between NewYork City & Canada is the regions finest accommodation for families, groups andspecial events
Clarion Inn, USA, with a highly reputed Clarion Brand name, offers full-fledgedluxurious amenities including Indoor Swimming Pool, Restaurant with Bar / Lounge, Meetingrooms & ballroom
Econolodge, USA, a hotel with impressive dcor and maintained to stringent standardsis a popular tourist and business resort.
Baymont Inn & Suites, USA, a Hotel that packs hospitality in special suites for thedemanding business travellers
United Inn, USA, one of Central New Yorks most convenient hotels, ensures acomfortable stay for both business and leisure traveler offering personalized service andreliability.
Sai Motels, New Zealand located at the heart of Auckland City, is strategically closeto Ellerslie Race Course & Convention Centre with well-serviced & furnished roomsis ideal for both leisure & corporate trips.
The IT division of the Company develops various softwares like Human ResourceManagement System Software, Network Marketing Software, Payroll Management Software,Accounting Software, Hotel Management System Software etc.
The Companys area of proposed specialization is in the Application SoftwareDevelopment which includes Manufacturing and Distribution, Commercial, Hospitality andother Service Industries. Your Company undertakes software development for both domesticand international customers.
To meet prospective clients IT needs, the IT segment of the company offersvarious software products and solutions, which addresses different functional areaskeeping in mind the industry standards and technology.
The revenue from the IT business for the year ended 31st March 2011 is Rs.6099.60 lacs as compared to Rs. 4154.86 lacs in the previous year.
FINANCIAL CONDITION AND RESULT OF OPERATIONS:
The Group/Company offers services in primarily three business lines viz. IT, Hotels andTours & Travels business. The following discussion on the consolidated financialcondition and results of operations intends to provide the information that will assist inbetter understanding of the financial statements.
Financial Performance Summary (stand-alone):
Your Company has earned total revenue of Rs. 7227.02 Lacs as against the previousyear's revenue of Rs. 4814.29 Lacs.
The income from information technology increased to Rs. 6099.60 Lacs from Rs. 4154.86Lacs in the previous year.
The income from hospitality business increased to Rs. 578.64 Lacs from Rs. 396.59 Lacsin the previous year and other income increased to Rs. 548.78 Lacs from Rs. 262.84 Lacs inthe previous year.
The total expenditure increased to Rs. 4829.75 Lacs from Rs. 2466.17 Lacs in theprevious year. The substantial increase in the expenditure is on account of purchase oftraded goods.
Profit before Tax:
The PBT grew to Rs. 2397.27 Lacs from Rs. 2348.12 Lacs in the previous year.
Profit after Tax:
The PAT decreased to Rs. 1831.54 Lacs from Rs. 2134.23 Lacs in the previous year. Thedecrease in profits is attributable to reduction in revenue from exports and also onaccount of the higher tax provisions.
Financial Performance Summary (consolidated):
During the year ended 31st March 2011 ('FY 11') consolidated revenues increased to Rs.1581.40 Lacs from 1337.80 Lacs in the previous year.
The total expenditure increased to Rs. 1118.16 Lacs from Rs. 863.33 Lacs in theprevious year.
Profit before Tax:
The PBT stood at Rs. 4632.40 Lacs compared to Rs. 4744.70 Lacs in the previous year.
Profit after Tax:
The PAT decreased to Rs. 3034.13 Lacs from Rs.3482.20 Lacs in the previous year.