We have attempted to include discussions on all specified matters to the extentrelevant.
Industry Structure and Developments
The Indian Tourism Industry has shown sustained growth during the past few years.However, the current economic slowdown all over the globe is likely to adversely impactthe tourism business. The revenue of your Company is confined to a few handpicked hotelsin which the Company has made investments. On account of legal disputes involving thesecompanies there is no revenue generated. The performance of your Company will depend onthe time factor involved in the final decision in the ongoing arbitration and legalmatters.
Risks and Concerns
The tourism & hospitality industry is extremely sensitive to downturns in businesscycles, terror attacks, epidemics, conflicts & natural calamities. The time factor forthe final decision and the outcome of the final decision in the matters under litigationcan have a bearing on the quality of Company's investments in other hotel owning companiesand the revenue of the Company.
As mentioned above the prospects of your Company is linked to the time factor involvedin the final decision in the ongoing arbitration and legal matters and the ability of theCompany to raise long term funds.
Internal Control Systems and their adequacy
Internal control systems have been found to be adequate commensurate with its size andnature of business. The Audit Committee periodically reviews the internal control systemsin operations.
As a matter of prudence the Company has not accounted for interest on the amount owingby V Hotels Ltd. in which the Company holds 50 percent equity stake. The loss for the yearis Rs. 207.39 Lacs as against loss of Rs. 864.28 Lacs for the previous year (includingexceptional item of Rs. 750 lacs)
It is our constant endeavour to motivate and harness the creative skills of ouremployees whereby organizational objectives are in harmony with employee's goals.
Statements in the Management Discussion and Analysis' section describing the Company'sobjectives, expectations or predictions may be 'forward looking statements' within themeaning of applicable securities laws and regulations. These statements reflect theCompany's current views with respect to the future events and are subject to risks anduncertainties. Actual results could differ materially from those expressed or implied.