Gandhinagar Enterprises Ltd Management Discussions

GANDHINAGAR HOTELS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS This Management discussion covers the financial results and other developments during April, 2010 to March, 2011 in respect of the Company. Some statements discussion describing the projection may be forward looking actual results may be forward looking actually may different materially on account of various external factors such as government regulations, tax regimes, changes in demand and supply constrains and other identical factors. Overview The Hotel Haveli as of now is Fortune Inn Haveli started its business operations in the year 1991 and upgrading its facilities and hospitality services on a year to year basis. The Hotel is a 3 star business hotel strategically located at Gandhinagar, the capital of state of Gujarat. Industry structure The year 2010-2011 witnessed an inclusive economic growth, especially state of Gujarat. The growing industrialization in the state of Gujarat helped the hotel industry to grow efficiently and rapidly. The overall year showed positive trend for hotel industry. Prospects The hotel industry is largely dependent on the growth of the other industries. The year 2010-2011 showed a rapid growth in other industries. During the year company has signed MOU with the Government of Gujarat for development of two 5 Star category hotels. The hotel business is likely to grow in recent future by offering excellent hospitality and quality services. The Company is committed to provide quality services. Opportunities, Threats, Risks and concerns The Company enjoys a fairly good position in the hotel industry with the Fortune Inn Haveli brand name. In view of the strategic plans and vision, the company is set to achieve higher rate of growth by catering needs and excelling in hospitality and services. In view of the rapid growth witnessed by other industry, the company expects to grow strongly. Strengths & Weaknesses Hotel is conveniently located to cater to business and other guests. : Frequent Changes in lower category of staff Existing Profit generating Hotel : High tax structure in the business including luxuries tax and other taxes Experienced Management Team and Motivated Work Force : Increasing in the Operating cost of the Company and other fix expenses Capacity of Standard Room for availing largeClient base. : Opportunities & Threats Sales and Marketing arrangement with fortune parks Hotels Limited Gives very vast opportunity : Increasing Competition in hotel business The Focus on Corporate Clients which tend to increase in Gandhinagar due to GIFT project of Gujarat Govt : The business largely depends on corporate events and affected by govt. Policies Strong Brand Tie-up Increasing cost of Raw Materials : Raising Income level attract the business Increase in cost of maintenance Internal Control Systems The Company has adequate internal control systems in respect of efficiency of operation, financial reporting, compliance with laws etc. Exercises for safeguarding assets and protection against unauthorized use are undertaken. The Management review internal control system from time to time. Review of Financial Performance The Financial performance during the year ended 31st March, 2011 was satisfactory with compare to last financial year. The Company expects better performance in the years to come. During the year under review the Company has achieved a Net profit of Rs. 85.03 Lacs as Compared to Rs. 76.68 Lacs for last financial year. Human Resources Our senior management team consists of experienced individuals with diverse skills in manufacturing, engineering, international business and finance. We believe that our employees are the key to the success of our business. We focus on hiring and retaining employees and workers who have prior experience in the hotel industry. The relations between the employees and the Management have remained cordial. Segment Wise or product wise performance: The details regarding Performance of various sources of the Company for current as well as last financial year is as under by way of graphical presentation: