arambhan hospitality services ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

Management has tired its best in last three year but could not realize material amount from defaulters among trade receivables, and realized part of money from its defaulter trade receivable parties which includes PunjLlyod, ESSAR and GOL ltd. It includes the recoveries were made directly by the service tax department under their garnishee notices. Company’s operation is not at Break-even level, and company unable to give Bank Guarantee to secure the Contract, therefore Company is willing to do trading activities during the year. The Full year company operated under strict working capital crunch, absolutely no working capital in hand. Due to many customers went bad and unrecoverable due to negativity in the Oil exploration sector and many domestic as well as international big players have filed the insolvency, coupled with the force measure of Service tax Department has completely deteriorated the Company image in the eyes of Customers and Vendors and spoiled relation with the vendors to irreversible level. Due to above this season Company do not have repeat orders as well as market negative image no fresh contracts looks promising in the FY 2022-23.

Your company’s able and proactive management team has pruned its administrative, operations and accounts staff thereby saving valuable overhead costs. Your company has also despite considerable lowered business, successfully reduced its outstanding unsecured loans with various Banks and NBFCs.

FINANCIAL PERFORMANCE:

Company has incurred loss of Rs. 6,014.18 Thousand which has been increased from the previous year loss of

Rs. 4,388.16 Thousand, which is showing a struggling phase to incur profit in the near future. The Company’s

Revenue from Operations amounted to Nil.

OPPORTUNITIES AND THREATS:

STRENGTHS

Experienced Management Team.

Long standing relations with reputed clientele in the Offshore catering & housekeeping industry.

Ability to provide quality services.

Ability to control costs.

OPPORTUNITIES

Huge Growth Potential in our service segment.

Possibility of providing associated Services along with main service offering.

WEAKNESSES

Working Capital Intensive Business.

Low bargaining power with customers.

THREATS

Increased Competition from Local & Big players. Rising flood inflations constraints the operating margins.

Offshore projects, specifically in oil exploration are dependent on government regulations.

Outcome of Bankruptcy of major Customers

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has adequate internal controls commensurate with its size and nature of operations. Besides, the Audit Committee reviews the internal controls in co-ordination with the Auditor.

HUMAN RESOURCE/INDUSTRIAL RELATIONS:

Human resource management is an important function in the Company. The Company’s aim is to create a working environment that attracts, motivate and retains the best people. Companies Values aims to deliver value to its clients and opportunities to its employees in terms of career development and recognition. The firm has always emphasized on quality of life, Work life balance and continuous learning and excellence, Company successfully completed following initiatives; 1. Establish a performance-based culture with well-defined structures, roles and responsibilities; 2. Capability maturity benchmarking exercise across all functions, processes, people and technology; 3. Rationalized Grades and uniform structures across organization. Through structured programs the firm executed a capability maturity assessment and benchmarked its people, process and technology across all functions. Building programs and initiative to improve maturity and achieve excellence. Identify key talent based on functional as well as behavioral competencies. Company has built in-house training capability by developing internal trainers across the organization focusing on

"Service to Clients", "Excellence" and "Learning by doing"

Company did a wages reconciliation program to adapt to changing business landscape. The total number of employees on rolls of the Company as on March 31, 2022 was 3.

BUSINESS OUTLOOK:

The company is putting continuous efforts to attain further efficiencies. Further, the Company is confident that in spite of the challenges and competition in the industry it will perform better in view of the strong fundamentals of the Company and hope to increase its turnover. The Company is expecting to enhance its presence globally to rationalize its significance by entering into the new alliance.

RISK MANAGEMENT FRAMEWORK

Globally as well as locally Oil and Natural Gas industry is in a slump with a direct impact on offshore activities. Company believes that Effective governance, internal controls and risk management will help the firm in sailing through the current industry wide rough patch. Board has initiated a disciplined implementation of standardized policies and processes and development of strong internal control systems.

Further, Company has set up internal controls and policies related to financial reporting of transactions and efficient business operations in compliance with relevant laws and regulations. Internal reporting systems are in place for effective measurement of various business parameters related to revenue, expenses and reporting, in line with the provisions of the Companies Act.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis Report describing the Company’s objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statement. The important factors that could influence the Company’s operations include change in government regulations, tax laws, economic developments, litigations, etc.

	BY ORDER OF THE BOARD,
	For Arambhan Hospitality Services Limited
PLACE: Mumbai	ALFRED MICHEL ARAMBHAN
DATE: 02/09/2023	DIN: 00788831
	MANAGING DIRECTOR