H. S. India Ltd Management Discussions.


The Indian tourism market is fast growing with immense potential due to the countrys rich cultural and geographical diversity. It is one of the major sectors contributing to GDP of the country and is driven by steady economic growth. The Hotel segments arc expected to drive growth of the industry in 2019. growing at a rate of 13.20%.

Tourism has now become a significant industry in India. It is a sun rise industry, an employment generator, a significant source of foreign exchange for the country. Tourism in India is the third largest foreign exchange earner of the country. The booming tourism industry has had a cascading effect on the hospitality sector with an increase in the occupancy ratios and average room rates.


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 trained man power is also a threat for the hotel industry. High tax structure as per GST does not appear to be conducive for the Hotel industry as it may affect the revenues of the Hotels.

The Government plans to develop tourism infrastructure across the country to provide a better tourism experience for tourists. Schemes such as Swadesh Darshan, PRASHAD, and adopt a heritage arc expected to gain momentum and boost overall tourism growth. In order to project India as a 365 days tourist destination globally, the Ministry of Tourism is exploring newer destinations and also actively promoting under-developed tourism destinations through development of infrastructure and better connectivity. This is expected to create growth opportunities for different stakeholders such as hotels, restaurants, tour operators, etc.


(i) Inventory Turnover Ratio increased by 28.79% as the Company has purchased liquor from local vendor in small batches for optimisation of inventory utilization.

(ii) Interest Coverage Ratio increased by 31.61% due to reduction of interest rate and reduction of principal amount. The effective amount of interest was reduced.

(iii) Return on Net Worth of the Company was decreased by 15.02% due to higher net profit after tax in previous year on account of large amount of deferred tax liabilities reversal. As the effective Corporate Income Tax rate on the company were reduced from nearly 33.00% to approximately 27.50% in year 2017-18, the provisions made in earlier years were reduced as no such benefits were available in the year 2018-19. Hence, the net profit is lower to that extent.


The total revenue of your Company for the year 2018-19 was increased to Rs. 2954.68 Lakh as against Rs. 2743.83 Lakh of the previous year. Net Profit after tax of the Company was decreased to Rs. 176.81 Lakh as against Rs. 192.72 Lakh of the previous year


There is a great opportunity for tourism in India. The government has already given high priority to tourism as a contributing segment for economic growth. International hotel chains will likely increase their expansion and investment plans in India and are expected to account for 50% share in the Indian hospitality industry by 2022. from the current 44%.

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 arc 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 2018-19 was 216 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 arc 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.


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.