empire hotels resorts ltd Directors report

ANNUAL REPORT 1997-98 EMPIRE HOTELS AND RESORTS LIMITED DIRECTORS REPORT TO THE SHAREHOLDERS Dear Shareholders, Your Directors present herewith the supplemental Fourteenth Annual Report together with the Audited Statements of Account for the Financial Year 1997-98 ended on 30th September,1998. 1. DIVIDEND In absence of profits the Board of Directors express their inability to pay any dividend for the period under review. 2. REVIEW OF OPERATIONS The operations of the Hotel for the period under review have drastically reduced due to a very low occupancy and also due to the fact that the Hotel was closed since 1st August,1998 for major renovation and upgradation under the aegis of Radisson Hotels International Inc. The over all general economic recession has largely affected the Hotel Industry in particular, which has resulted into a very low occupancy during the year. The Company hopes that the renovated hotel with the brand name of "Radisson" will achieve higher occupancy and better profitability because of Radissons industry leading National and International reservation systems which is connected to 125 Countries World Wide to market and support its existing and new Asia/Pacific locations. 3. DIRECTORS During the period under review IFCI has appointed Smt Sarla Chandwani as its nominee director in place of Shri V. K. Jain. Your Board of Directors welcomes Smt Sarla Chandwani and places on record its gratitude towards Shri V. K. Jain for his valuable services and support rendered during his tenure of Directorship with the Company. Shri Jashbhai U. Patel and Shri Shreyans S. Shah have resigned from the Board. Your Board of Directors wish to place their sincere gratitude for the guidance and advice received during the tenure of their Directorship with the Company. Shri M. R. Gami has been withdrawn from the Board of the Company as Nominee Director of GIIC. Your Board of Directors wish to place their sincere gratitude for the guidance and advice received during the tenure of his Directorship. 4. ADJOURNED ANNUAL GENERAL MEETING The Board of Directors wish to inform you that the item relating to consideration and approval of the Annual Accounts for the year 1997-98 was not taken up in the 14th Annual General Meeting which was held on 30th March, 1999. Hence it was decided to convene an Adjourned Annual General Meeting to take up the item relating to consideration and approval of accounts. 5. Y2K COMPLIANCE (Y2K) Your Company does not foresee any risk on account of year 2000 compliance (Y2K) as the company has upgraded the computer facilities to meet with Y2K Compliance. 6. AUDITORS Notes of the Auditors on Accounts are self explanatory. 7. ACKNOWLEDGEMENTS Your Directors express their sincere gratitude for the assistance and co- operation extended by the Financial Institutions,Banks,Government Authorities,Shareholders,Suppliers and Customers. Your Directors also wish to place on record their appreciation of the contribution made by the employees at their levels towards achievement of the Companys goals. For and on behalf of the Board Hasmukh C. Shah Chairman Place : Ahmedabad Date : 15/11/99.