The main business of the company is running of Amusement Park, Water Park, and Resorts.
INDUSTRY STRUCTURE AND DEVELOPMENT
The Indian Amusement & Theme Park industry has been growing at a compounded annual growth rate (CAGR) of more than 17.5% with annual revenue of approx. Rs. 17 billion and estimated to grow to at least Rs. 40 billion by 2022. Amusement Parks i n India attract over 30 million (3 crore) visitors annually. Children & Youth visit the park either in school groups or with families and constitutes 25% of park visitors. Adults constitute the remaining 75% as they either visit with their families or in corporate groups.
EMERGING TREND AND FUTURE OUTLOOK
India is expected to be the 3rd largest economy by 2050. Studies indicate a near tripling of household disposable income and burgeoning middle class which will comprise over 40% of Indias population. Park operators and investors from both within India and abroad have recognized the opportunities presented by the rapidly growing and consuming Indian middle class. Although many small and medium parks are coming up in India, the investors are still hesitant to invest in large theme park primarily due to high capital cost associated with such project, non availability/high cost of land and low per capita consumer spends at parks in India compared to other developed countries. Increasing collaboration with global players is expected to provide huge boost to the growth of this sector. During the last decade domestic tourism had grown @ 14% on an average and currently it is estimated at 550 million. Relative to this, the amusement park industry generated only 19 million footfall during last year. Globally, domestic and international tourists comprise more than 50% of the total footfall at popular amusement parks. We can, therefore, expect that there would be manifold increase in footfall in amusement parks in India.
Surya Fun City was set up in 1993 near beautiful City Chandigarh. And boasts of being the only wholesome family entertainment cum Amusement Park destination in the state of Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir .We enjoy patronage from large number of visitors from Punjab, Chandigarh, Haryana and other rural areas. Profitability growth can be achieved with the right people working in an organization that is fit to win, with a culture in which performance is aligned with value. We are building capability and leadership among our people and attracting some of the best talent in the market place.
A growing business portfolio in the Amusement Park and Water Park Business. High brand equity of the company continuously helps in its economic performance. Debt equity ratio continuously to be favourable for future growth of the company. Excellent track record and very high credibility with banks and financial institution.
Business generates livelihood for over 70 families directly and indirectly. We prohibit child employment directly or indirectly at the premises of the Park. We work for better infrastructure of not only employees but the surrounding villages also.
OPPORTUNITIES AND THREATS:
Growth in entertainment business in recent years.
With coming up of International Airport and better connectivity with other cities the business in the Chandigarh is growing fast. Company has opportunity for expansion.
Coming up of similar project in and around the city. Accident and mishaps. Increase in operational cost. Seasonal Business. Alternate indoor entertainment options at large Malls.
SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE:
To maintain novelty of the park and to increase repeat visit the company is continuously adding new rides, attractions and facilities and events.
The Company has rental Income from Allied Activities.
RISKS AND CONCERNS:
Keeping in view the visitors safety, your Company continuously ensures high quality maintenance of all its rides and attractions. The entertainment provided by your Company is interactive and participative in nature and faces competition from various other forms of entertainment in the leisure industry. The business has seasonality and being outdoor, climatic conditions have a bearing on its success. Sponsorship earnings also depend upon overall business conditions of various industries within the country. Recognizing the needs associated with the various facets of the business of your Company, your Company had already appointed an Engineering Company to indentify, assess and mitigate the major areas of risk associated with the business of the Company.
INTERNAL CONTROL SYSTEMS AND THE ADEQUACY:
The company has adequate internal control system commensurate with the size and nature of the business. The objective of these procedures are to ensure efficient use and protection of the Companys resources, accuracy in financial reporting and due compliance of statutes and Company procedures.
FINANCIAL PERFORMANCE: (a) Revenue:
The income increases to Rs. 264.48 lac from Rs. 37.35 lac in the previous year.
(b) Earnings Before Interest, Depreciation and Tax( EBITA):
EBITA increases to Rs. 64.12 lac from loss of Rs. 113.5 lac in previous year.
(c) Profit Before Tax( PBT)
LBT is Rs. 30.64 lac as compared to loss of Rs. 202.29 lac in previous year.
HUMAN RESOURCE DEVELOPMENT/INDUSTRIAL RELATIONS
Our is a continuously quest to offer the finest guest experience and we are constantly reinvesting ourselves in a sector that is move on. People power is one of the greatest pillars of our success. Your Company firmly believes that its greatest strength lies in the quality of its manpower. There is a conscious effort on the part of the management to develop the knowledge, skills, and attitudes of its people through a variety of training specifically aimed at an individuals need with a specific thrust on enhancing functional/ domain knowledge across discipline. Relations between the Management and Labour were cordial throughout the year
With aggressive marketing schemes for Schools, Institutions & Colleges for events and with an emphasis on increasing foot fall sales, barring any unforeseen circumstances, your Company looks to the future with confidence.
Statements in the Management Discussion and Analysis Report in regard to projections, estimates and expectations have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Industry information contained in this Report, have been based on information gathered from various published and unpublished reports and their accuracy, reliability and completeness cannot be assured.
INTERNAL CONTROL SYSTEM
Your Company implements internal control systems to provide reasonable assurance that the assets are safeguarded and transactions are properly authorized, recorded and correctly reported. It is a common practice to lay down a well thought business plan for each year. From the annual business plan, detailed budgets for revenue and capital for each quarter is determined. The actual performance is reviewed in comparison with the budget and deviations, if any, are addressed adequately. The internal control mechanism is well established. The internal control system is supplemented by regular management reviews and periodical reviews by the Internal Auditor which evaluate the functioning and quality of internal controls and checks; and provides assurance of its adequacy and effectiveness. The scope of internal audit covers a wide variety of operational methods and ensures compliance with specified standards with regard to availability and suitability of policies, practices and procedures, extent of adherence, reliability of management information system and authorization procedures including steps for safeguarding of assets. The Reports of internal audit are placed before Audit Committee for review.
Your company enjoys the support of committed and well satisfied human capital. Human resources are invaluable assets of the company and the Companys endeavor has always been to retain the best professional and technical talent. The resource is the most important ingredient for achieving excellence in performance and sustainable growth of the company. These practices enable the company to keep the attrition rate well below the industry average.
On Behalf of the Board of Directors
|(Kamaljeet Singh)||(Puneet Arora)|
|Place: Chandigarh||Managing Director||Whole Time Director|
|Date: August 30, 2022||DIN: 00901140||DIN: 0228638|
ANNEXURE 5 Related Party Transactions A. Related Party Transactions where control exist None B. Other related parties and nature of relationships
|(a) Key Managerial Personnel and individuals owning directly or||Mr. Kamaljeet Singh, Managing|
|indirectly an interest in the voting power of the reporting||Director|
|enterprise that gives them control or significance influence over||Mrs. Puneet Arora, Whole Time|
|Ms. Deepika Pathania , CS|
|Mr. Vishal Awasthi, CFO|
|(b) Directors||Mr. Sarabjit Singh|
|Mr. Chander Dutt Verma|
|Mr. Jasbir Singh Chatha|
|Mr. Jasjit Singh Sethi|
|(c) Relatives of individual mentioned in (a) & (b) above||Mr. Gurasees Singh|
|Mr. Angaddeep Singh|
|Mrs. Dolly Sarabjit Singh|
|(d) Private Company in which Director or Manager is a member or||Saka Investments Private Limited|
|(e) Public Company in which Director or Manager is a member or||Bonzo Resorts Limited|
C. Transaction during the year Managerial Remuneration -Mr. Kamaljeet Singh Rs. 52,80,000 -Ms. Puneet Arora Rs. NIL
-Kamaljeet Singh-0 Sarabjit Singh-0
D. Duration of the Contracts/arrangement/transaction 3 Years E. Salient terms of Contract or arrangement or transaction, if any Maximum Salary : Kamaljeet Singh Rs. 6,00,000/- Puneet Arora Rs. 1,00,000/-
F. Date of approval by Board:
Kamaljeet Singh 30.08.2022 Puneet Arora 30.08.2022
G. Amount paid as advances Nil.