veerhealth care ltd share price Management discussions

ECONOMIC OVERVIEW

India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF). According to the Economic Survey

The Indian Economy is growing at a rapid pace The Services Sector is expected to grow at a faster pace in the times to come. The onset of reforms by the Government and relaxation in FDI norms in all sectors will further boost the Economy. The Government has enacted Goods and Service Tax legislation which on introduction will help in boosting the economy further.

The steps taken by the government in recent times have shown positive results as Indias gross domestic product (GDP). The economic activities which witnessed significant growth were financing, insurance, real estate and business services and trade, hotels, transport, communication services.

HOSPITALITY AND TOURISM INDUSTRY

The travel and tourism industry has become one of the largest and fastest growing economic sectors globally. Its contribution to the global Gross Domestic Product (GDP) and employment has increased multifold.

For India, the direct contribution of travel and tourism to GDP is expected to grow 7.2 per cent per annum to US$ 88.6 billion (2.5 per cent of GDP) by 2025.The travel and tourism industry in India entailing domestic and international inbound travel is projected to increase at a CAGR of 12 percent .At the same time, rising income levels, altering lifestyles, growth of varied tourism offerings and strategy and regulatory backing by the government are playing a focal role in modeling the travel and tourism sector in India.

The growth opportunities in the travel and tourism can be understood only with the progress of the hospitality sector. With the high amount of tourist inflows over the past few years, it is a major contributor to Indian economy.

The hospitality industry helps in the revival of the economy. The impact of technology to reach out to millions has added a fast and exciting boost to the economy. Technology is improving customer experience, operations and several other aspects. With the dawn of the groundbreaking enterprise solutions, the hospitality scene in India is improving.

PRESENTSTATUS

The Companys name comes in one of the prestigious hotels in the Hospitality Sector. The Management is committed to be one of the best in this sector and is fighting against all odds to run the Hotel successfully.

FINANCIAL PERFORMANCE

	(Rs.in Lakhs)	(Rs.in Lakhs)
	2016-17	2015-16
Revenue	1868.98	2052.87
Total Revenue	1868.98	2052.87
Total Expenditure	4196.10	4062.37
Depreciation	933.15	1158.21
Exceptional items Profit on sale of fixed assets	24.02	0
Gross Profit/(Loss) before Tax	(2303.10)	(2009.50)
Provision for Income Tax Previous Year	0.14	0
Surplus/(Deficit)	(2303.24)	(2009.50)

RESERVE & SURPLUS

During the year under review there has been no changes in the capital reserve of the Company which stands as Rs.6,01,000/-.

SECUREDLOANS

The total amount of Secured loans as per the figure in the Balance Sheet areRs. 13242.70 Lacs including vehicle loan of Rs. 18.53 Lacs. The amount of Secured Loans include Current Maturities of Rs. 1344.07 Lacs, Interest accrued and due of Rs. 4246.53 Lacs and Installments due of Rs. 1885.44 Lacs, after which the net amount of Secured Loans is Rs. 5766.66 Lacs. The Secured loans except vehicle loans are availed from State Bank of India, Punjab National Bank and United Bank of India. State Bank of India has assigned its debt to Asset Reconstruction Company (India) Limited and United Bank of India has assigned its debt to UB ARC..

FIXED ASSETS NET BLOCK

The Net Block of Fixed Assets decreased from Rs, 12219.24 lacs to Rs. 11316.72 lacs during the Financial Year ended on 3 I^s March ,2017.

INVESTMENTS

The company has not made any investments during the year.

NET CURRENT ASSETS

The Net Current Assets has decreased from Rs.878.15 Lacs to Rs. 835.96 Lacs during the current Financial year ended on 31 ‘March. 2017.

RESULTS OF OPERATIONS

The Company has total income of Rs. 1868.98 Lacs during the year under review which includes Operating revenue of Rs. 1835.37 Lacs and other income of Rs. 33.61 Lacs. The lossfor the year is Rs.2303.24 Lacs as compared to loss of Rs. 2009.50 Lacs in the previous year. The company cannot recommend dividend due to losses.

RISKS. CONCERNS AND THREATS

Historically, building a good hotel has always been a huge task, but in these times of 21 st century it is gigantic due to manifolds increase in the prices of nearly each and everything that is required to make a hotel of the best standards. Hotels usually are a spectacular display of architecture combined with luxury at its best and conventionally are built in accord with the contemporary and futuristic designs with distinction for not only the exterior outlook but at the same time interiors are also given a chic and edgy styles with an intricate eye for details on every aspect. Hotel Industry is ever evolving, ever changing not by its nature but due to the need of an hour. New and progressive concepts like Boutique Hotels, Green Hotels, and Healthy Hotels have emerged in the market with time, leading to the evolution and growth of new trends in the hotel industry.

SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE

The Company is engaged in the business of hotels and restaurants, which is its only segment. There is no identifiable secondary segment.

OUTLOOK FOR 2017-18

Though outlook for the industry is positive, but your company is facing stringent financial crunch, it is not able to repay its debts. Insolvency proceedings have been initiated against the company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

James Hotels Limited has adequate system of internal controls to ensure all assets are safeguarded and protected and loss from unauthorized use or disposing and that transactions are authorised, recorded and reported correctly.

The internal control is supplemented by policies, guidelines and procedure and an extensive programme of internal and external audit and periodic review by management. The system is designed to ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability for assets.

The Audit Committee review the quarterly, half yearly and annual financial statements before these are submitted to the Board and ensures compliance of internal control system.

The Internal Auditors of the Company had conducted exhaustive internal audits pertaining to all operational areas and their reports were placed before the Audit Committee for its review and recommendations.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

Industrial relations with the employees were cordial. Companys key business strategy is to empower every employee to be a leader in its stride towards total quality. The Company draws its strength from a highly engaged and motivated workforce. The Company always strives to retain the best talent as per its remuneration policy. The Company has workforce of 186 employees.

CAUTIONARY STATEMENTS

Statements in the Management Discussion and Analysis are based on information available on different sites, certain assumptions and expectations of future events over which the Company exercise no control, the Company cannot guarantee their accuracy nor can it warrant that the same will be realized by the Company. Actual results could differ materially from those expressed or implied.