Arambhan Hospitality Services Ltd Management Discussions.


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.

Companys 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 a 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 2020-21.

Your companys able and proactive management team has pruned its administrative, operations and accounts staff thereby saving valueable overhead costs.

Your company has also despite considerable lowered business, successfully reduced its outstanding unsecured loans with various Banks and NBFCs


The operational performance of the company has been exceptional despite severe cash flow situation and reduced turnover.

The morale of the staff both on board and in the base has been very-very upbeat. Future business growth seems to be very unpredictable as explained above.


Experienced Management Team. Huge Growth Potential in our service segment.
Long standing relations with reputed clientele in the Offshore catering & housekeeping industry. Possibility of providing associated Services along with main service offering.
Ability to provide quality services.
Ability to control costs.
Working Capital Intensive Business. Increased Competition from Local & Big players.
Low bargaining power with customers. Rising flood inflations constraints the operating margins.
Offshore projects, specifically in oil exploration are dependent on government regulations.
Outcome of Bankruptcy of major Customers


During the year Company was operating in single segment being Offshore Outdoor catering services and accordingly no such disclosure and discussion is required here.


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 Auditors.


a) Share Capital: As on March 31, 2020, the paid-up Share Capital of the Company stood at INR 5,00,00,000 comprising of 50,00,000 Equity Shares of Rs. 10/- each.

b) Reserves & Surplus: During the year 2019-2020 the total Reserves & Surplus of our company decreased to INR (3,46,308.05) (Rs. In 000) as against INR (3,13,218.65) (Rs. In 000) in the year 2018-19.

c) Result: During the year 2019-2020 the total revenue of our company decreased to 42,184.35/- (Rs. 000) as against INR 70,172.01/-(Rs. 000) in the year 2018-19, representing a decrease in approximately 39.88% of the revenue from the operations.


Human resource management is an important function in the Company. The Companys 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 a 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, 2020 was 19.


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. Internal Audit Reports are tabled and reviewed by the Audit Committee and corrective measures are taken up promptly to improve the systems and processes.


Statements in the Management Discussion and Analysis Report describing the Companys 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 Companys operations include change in government regulations, tax laws, economic developments, litigations, etc.