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Sagar Tourist Resorts Ltd Management Discussions

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Sagar Tourist Resorts Ltd Share Price Management Discussions

This Report discusses and analyses the business performance for the year ended 31st March, 2016.

1) Industry Structure and Development

The Company is in the business of hospitality. The fortunes of your Company are directly linked with the number of guests, conference, business meetings seminars etc held in the hotel premises.

2) Opportunities and Threats

Our hotel is offering four star hotel facilities. Restructuring of tariff, attractive seasonal plans and scenic location of the hotel have given the edge over the hotels in Kullu-Manali area. Existing marketing set up [having six [6) GSA offices and Eight [8] PSA offices) is being utilized to market hotels at other tourist destinations.

We perceive threats more from the local hotels as their tariffs are uneconomical and unviable. Our facilities, ideal location and good services may have some impact over such unhealthy competition.

3) Segment - wise or product - wise performance

The Company has its resort located at Manali Dist. Kullu in the state of Himachal Pradesh. The location is very scenic as the Hotel Premises is atthe foothills of the Rohtang Pass.

4) Outlook

The road ahead is challenging. Moreover, volume continues to be a critical determinant for real good turnaround and growth. The initiatives of the Company to provide attractive rates, good food and service are expected to provide the necessary drive to meet the challenges and to spot the growth opportunities.

5) Risks and Concerns

The hospitality business continues to be highly competitive particularly in Kullu-Manali area as the availability of the rooms is much more than its demand even in a peak season. Inadequate infrastructure contributes greatly for poor arrivals of the guests/tourists in this area. There is no rail and limited and expensive air link to reach Manali.

6) Internal Control Systems and their adequacy

The Company has adequate internal control systems in place. The Management Team takes the corrective actions immediately to address any inconsistent development.

7) Discussion on financial performance with respect to operational performance.

Turnover has increased from Rs. 109 Lacs in 2014-15 to Rs.130 Lacs in 2015-16.

8) Human Resources/Industrial Relations

The Company enjoys cordial relations with its work force across all categories.

9) Cautionary Statement

Statement, made herein describing the Companys expectations or predictions, are "forward- looking statement". The actual results may differ from those expected or predicted since the Companys operations are influenced by many external factors which are beyond the control of the Company. Prime factors that may make a difference to the Companys performance include market conditions, adverse weather conditions in hilly area, input costs, Govt, regulations, economic development within/outside country. The Company takes no responsibility for keeping the members updated on changes in these factors except as may be statutorily required from time to time.

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