H. S. India Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The hospitality industry in India experienced a remarkable revival in 2023-24, marked by escalating hotel prices, soaring airfares, and increased travel expenditures. This translated into a promising year for tourism and hospitality in India. Tourism and hospitality in India have also seen a notable surge in religious tourism, with destinations like the Ayodhya Ram Temple, Kashi Vishwanath, and Mahakal Temple in Ujjain drawing increasing numbers of spiritual seekers. The Ministry of Tourism of the Government of India initiated several schemes such as Swadesh Darshan, Prashad, Udan and Dekho Apna Desh to promote travel.

The remarkable growth of hospitality industry in India in 2023 can be attributed to many influential factors. Notably, the year was marked by the assurance of domestic leisure trips and the thriving landscape of meetings, incentives, conferences, and exhibitions (MICE) events. Hosting major global events, including the G20 Summit and the ICC World Cup, played a pivotal role in driving the industrys success. The return of business travellers was equally significant, contributing substantially to the growth of hotel industry in India during the year.

2. OPPORTUNITIES, THREATS, RISK AND CONCERNS:

Your Company is in well position to take advantage of the following situations:

¦ Healthy economy having positive support of Tourism Sector.

¦ Well framed State and Central Government po licies to attract tourists.

¦ Proximity to Railway station and Bus station.

¦ Healthy Competition in the city.

¦ Extending the product portfolio by offering various types of facilities.

¦ Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays.

There are many regional, domestic and international factors which reduce tourist traffic and the business of the hotels. Lack of training man power is also a threat for the hotel industry. High inflation rate and rising interest rates will cause economic damage on the hospitality industry. Cyber risk is a central risk for Hospitality Industry that handle customer information in addition to employee records and other confidential or strategically sensitive data.

The tourism and hospitality industry is widely recognised as the engine of development, and socio-economic growth, and a major source of foreign exchange earnings for an economy. In India, the tourism and hospitality industry, also known as the "sunrise industry," has emerged as a key growth driver in the services sector. India, with a rich cultural and historical heritage, diversity in ecology, terrains, and myriad attractions, is one of the most popular holiday destinations worldwide, which has resulted in the rise of the Indian tourism and hospitality industry among all the services sectors in the country.

3. FINANCIAL AND OPERATIONAL PERFORMANCE:

The total revenue of your Company for the year 2023-24 was increased to Rs. 2636.96 lakh as against Rs. 2461.68 lakh of the previous year. The Company reported net profit after tax of Rs. 133.16 lakh for the year 2023-24 in comparison with a net profit after tax of Rs. 103.50 lakh of the previous year.

4. DETAIL OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Details of Significant changes in Key Financial Ratios given in Note-36 of the Notes on financial statements for the year ended on 31^st March, 2024.

5. FUTURE PROSPECTS:

To capitalize on the rising demand for distinctive travel experiences, it is imperative to assess new vacation destinations and tourist attractions in India. India is a nation with a diverse topography, beautiful natural surroundings, and a rich cultural past. Finding and promoting new tourist destinations and attractions, like eccentric locales, uncharted areas, and historical places, can boost tourism and create new business prospects for the hospitality sector.

The Hospitality industry has seen a rise in sustainable and environmentally responsible practices, and it is likely to persist in the coming years as travellers become more aware of the environmental impact of their choices.

However, your company to believe that the long term prospects for the travel and tourism industry in India are more attractive. As mid market faces very little disturbances, your company is at locations where they are targeting the mid-market segment, provide comfort and look as per guests requirements. Your Directors look forward to the future with confidence.

6. ADEQUACY OF INTERNAL CONTROL SYSTEM:

The Company has proper, strong, independent and adequate internal control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that transaction are authorized, recorded and reported correctly. The internal control systems are supplemented by an extensive programme of internal audits reviewed by management and documented policies, guidelines and procedures. The internal control systems of the Company are designed to ensure that the financial and other records are reliable, for preparing financial statements and other data, and for maintaining accountability of assets.

7. HUMAN RESOURCE DEVELOPMENT:

The manpower employed in your Company for 2023-24 was 149 employees. The Company depends extensively on its human assets and consider this as one of the most precious asset and not affordable to lose.

Your Company has a team of able and experienced industry professionals. Your Company always believe to invest in human resources by means of providing various facilities, with a view to strengthen its presence in existing business and for taking advantage of the emerging growth opportunities in the hospitality sector. Your Company seeks regular feedback from its employees to ascertain their levels of satisfaction and to ensure that employees morale and motivation are constantly improved. Critical human resource issues are analysed, corrective actions initiated and results monitored regularly. In order to preserve competent employees and to provide homely environment, your Company has arranged monthly staff function, religious programs, picnic tours, etc. Human resource is drawn from diverse academic backgrounds and the Company has placed emphasis on recruiting people with formal training that matches their job profile.

8. CAUTIONARY STATEMENT:

Certain statements made in the Management discussion and analysis report, describing the Companys objectives, projections, estimates, predictions and expectations may be forward looking statements, within the meaning of applicable securities law and regulations and actual results may differ materially from those expressed or implied. Significant factors that make differences to Companys operations include competition, changes in Government policies and regulations, tax regimes and economic development within India. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events or otherwise.