Reliable Ventures India Ltd Management Discussions

Company Approach to the Business

With a consistently growing middle class and increasing disposable income, the tourism and hospitality sector is expected to witness a healthy growth.The hospitality sector encompasses a wide variety of activities within the services sector and is a major direct and indirect job provider.

Due to expiry of the lease deed of company during the preceding , the company could earn on rental basis only Rs. 6.93 lacs . However, the company is in the process of exploring new business opportunities for investment in land property for the development of a new hotel and banquet premises near airport, Bhopal, and considering this fact the financial results of the company for the financial year ended 31 -03-2025 have been drawn on going concern basis.

As soon as the Company is able to establish a new hotel premises near the Bhopal Airport or at any suitable place it would ensure that it is able to obtain and maintain all statutory licensing with necessary controls, financial checks and ensure that the internal controls as regards operations are in line with industry norms. Proper accounting procedures would be adhered to ensure cost minimisation.

The Corporate and Conference segment along with foreign tourist segment is expected to show a decent growth. Economic projections appear to indicate towards a Major Boom for the Hospitality Industry. The Bhopal Airport is now an International Airport, and this is resulting in increase in number of flights.

The expiry of term of leasehold land of the company since July 2022 has been the major threat faced by the Compnay and it is considering a proposal to transfer its building structure and all immovable assets owned by it to the lessor for consideration to be decided mutually. Negotiation in this respect are still in process.

Since the Compnay is presently engaged in planning to set up a new hotel premises near the Airport in Bhopal or any other suitable place , at present it does not think worthwhile to analyse and foresee any potential risk.

As soon as tbe company is able to get new opportunity to establish a hotel premises near the Air port Bhopal or at any other suitable place, it shall strive become a number one Hotel in the city. It shall work towards socio-economic growth, and in order to achieve this very goal shall focus on training the existing man power in accordance with the customer requirements and perceptions.

The extended lease term of leasehold land with respect to hotel segment of the Compnay had expired on July 7, .2022, building structure and assets affixed thereof ( All immovable Assets) situated on the said land is owned by the Company and the company is under negotiation with the lessor to transfer the said building structure and assets affixed for a consideration. Since the negotiation is, still under process, no provision has been provided by the company for any deviation/ devaluation in the value of the said fixed assets and the loss is understood to that extent which is still to be ascertained.

Led with the realization of the fact that continuous up-gradation of skills and service delivery systems /inputs go along with to make a decisive difference in the hotel industry , as amatter of policy and as soon the new hotel project is set up near the Bhopal Airport or any other suitable pladce, the company shall look into the up-gradation and the quality aspects of its human resources.

However the Company shall try to remain at par with industry standards, in the matter of employees benefits and compensation and with establishment of the proposed new hotel premises and ensure that employees benefits and compensation package remains tailored to the industry norms enabling it to hire and retain skilled and professional manpower.

Industrial relations scenario in the company is expected to remain cordial with employess remaining committed to higher qualitative service and productivity. As soon the new hotel project is commissioned, the compnay management will try to play its role in maintaining and promoting harmonious relations.