H. S. India Ltd Management Discussions

ANNEXURE-1

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Hospitality Industry are also embracing sustainability from the ground up, integrating ecofriendly building techniques and adopting 360-degree sustainability strategies from construction to daily operations. Initiatives like the Beyond Now Network bring industry experts together to transform hospitality busines ses into environmentally friendly, efficient, and profitable enterprises. This shift reflects changing customer values and highlights the hospitality industrys unique ability to shape behaviour. The Maha Kumbh-2025has become one of the largest religious gatherings in history of India.

With dynamic developments on the horizon, Indias hospitality sector is not just growing; it is evolving. Industry leaders are optimistic about the future, with the winter season acting as a pivotal driver for excellence and innovation. Al-driven marketing strategies to enhance guest experiences and create more impactful customer engagement. From weddings to MICE tourism, technological integration to cultural experiences, the industry is poised to set new benchmarks, solidifying Indias position as a global travel hotspot.

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 policies 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. Data breaches continue to top the list of hospitality industry risks due to the amount of sensitive information stored by hotels, resorts, and other venues. When economic downturns hit, fewer people travel for leisure, and businesses often cut back on travel expenses. This leads to reduced occupancy rates and lower revenues for hotels and other related businesses.

Hospitality businesses are pushing beyond net zero, striving to leave the world better than they found it through regenerative tourism. This approach moves “from net-zero to net-positive” by actively improving the environment and local communities. Leading the way are resorts funding reforestation projects, hotels creating job opportunities for underprivileged communities, and restaurants embracing zero-waste cuisine with ingredients from regenerative farms. While sustainability is now the baseline, regenerative hospitality is emerging as a true differentiator.

The total revenue of your Company for the year 2024-25was increased to Rs. 2727.87lakh as against Rs. 2636.96lakh of the previous year. The Company reported net profit after tax of Rs. 141.18lakh for the year 2024-25in comparison with a net profit after tax of Rs.133.16lakh of the previous year.

Details of Significant changes in Key Financial Ratios given in Note-36of the Notes on financial statements for the year ended on 31st March, 2025.

With a significant surge in Indian travel trends, the travel industry growth is experiencing an unprecedented boom. A new breed of Indian travellers has emerged, driven by a momentum from Indias Tier II and III cities. Empowered by technology, disposable income and a desire to explore, these travellers are fueling a trend that spans local cultural immersion, religious pilgrimages, beach vacations and mountain retreats.

Travel industry growth is driven by Indias leisure travellers, who are riding the wave of improved connectivity and technological advancements, pushing the boundaries of traditional tourism, eager for domestic tourism and international travel from India. Indian traveller spendings continue to grow with greater willingness to inve st more in travel experiences

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.

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.

The manpower employed in your Company for 2024-25was 144employees. 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 matche s their job profile.

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.