woodsvilla ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Economy-Performance and Perspectives

The hospitality industry in India is a dynamic and diverse sector that encompasses various segments such as hotels, restaurants, travel and tourism, event management, and more. As one of the fastest-growing industries in the country, it plays a significant role in contributing to Indias economy and creating employment opportunities.

Opportunities:

1. Growing Tourism: Indias rich cultural heritage, diverse landscapes, and historical monuments attract a large number of domestic and international tourists. This offers significant opportunities for hotel industry to cater to the increasing demand.

2. Business Travel: With India emerging as a global business hub, there is a rising demand for business hotels and conference facilities, providing opportunities for growth and investment in this segment.

3. Technological Advancements: Adopting technological advancements such as online booking platforms, mobile apps for hospitality services, and personalized experiences can enhance customer engagement and loyalty.

4. Focus on Experiential Travel: Travelers are now seeking unique and authentic experiences, and businesses that can offer experiential stays, local cuisine, and cultural activities stand to benefit.

Threats, Risks & Concerns:

1. Economic Volatility: The hospitality industry is sensitive to economic fluctuations. During economic downturns, there may be a decrease in both business and leisure travel, impacting revenue and profitability.

2. Competition: The industry is highly competitive, with both local and international players vying for a share of the market. Businesses need to constantly innovate and offer exceptional services to stay ahead.

3. Regulatory Challenges: Dealing with complex and often changing regulatory frameworks, such as licensing, permits, and tax regulations, can be challenging for hospitality businesses.

4. Seasonal Fluctuations: Certain tourist destinations experience seasonal fluctuations, leading to varying demand throughout the year, which may affect the sustainability of businesses in those areas.

5. Infrastructure Issues: Inadequate infrastructure, particularly in smaller towns and remote areas, can hinder the growth and development of hospitality businesses in those regions.

6. Security Concerns: Safety and security issues can impact tourism and deter potential travelers, requiring businesses to invest in robust security measures.

OUTLOOK

In conclusion, the hospitality industry in India offers numerous opportunities for growth and success due to the countrys diverse attractions and increasing tourism. However, it also faces inherent risks that require businesses to be adaptable, innovative, and resilient in their strategies to thrive in this ever-evolving market.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Industrial relations remained cordial at the Resort as well as at Head Office. Human Resource is the key asset for any Organization especially in the Hospitality Industry. The Company has taken various steps for the training and development of the Human Resource. The Company also takes various steps to keep the employees motivated and to work for excellence

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is engaged in single segment, hence the segment-wise reporting is not applicable to the Company.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Financial Performance of the Company is in line with its Operational Performance and there is no deviation between the two.

COMPLIANCE OF VARIOUS STATUTORY AND LEGAL REQUIREMENTS

The Company is subject to compliance of various statutory and legal requirements under different laws in force. The Company adheres to the statutory requirements and regularly reviews the compliance to overcome such risk.

Material developments in Human Resources:

Material development in human resources for hotels is crucial to ensuring the hospitality staff is well-trained, motivated, and equipped with the necessary skills to provide excellent service to guests. Here are some specific areas of material development in human resources for hotels:

Standard Operating Procedures (SOPs): Create comprehensive manuals that outline the

hotels standard operating procedures for various departments, such as the front desk, housekeeping, food and beverage, and maintenance.

On boarding Kits: Prepare comprehensive on boarding kits for new employees, including welcome materials, company culture information, and an overview of their job responsibilities.

Language Training: If the hotel serves an international clientele, offer language training materials to help staff communicate effectively with guests from various regions.

Career Development Plans: Provide materials that outline career paths within the hotel, offering guidance on advancement opportunities and skill development.

Regularly updating and refreshing these materials based on employee feedback, industry trends, and guest expectations is essential to ensure the hotels human resources strategy remains effective and aligned with the organizations goals. Additionally, integrating interactive and engaging elements into the training materials can enhance the learning experience and retention of information.

Total number of people employed was 9 employees during the year under review.

GOING CONCERN

In the opinion of the Board, the Company will be in a position to carry on its existing activities and accordingly it is considered appropriate to prepare the financial statements on the basis of going concern.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Company is having adequate internal control system and procedures. The systems, procedures, checks and controls are tested on a routine basis and are certified by our Internal and Statutory Auditors.

Your Company has reviewed internal controls and its effectiveness through the internal audit process. The focus of these reviews is as follow:

Identify weaknesses and areas of improvement

- Compliance with defined policies and processes

- Safeguarding of tangible and intangible assets Management of business and operational risks

- Compliance with applicable statutes

The Audit Committee of the Board plays an important role in review of the adequacy of the internal control environment of the Company.

DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENT AND KEY CHANGES IN RATIOS

In the preparation of the financial statements, the Company has followed the Accounting

Standards referred to in Section 133 of the Companies Act, 2013. The significant accounting policies which are consistently applied are set out in the Notes to the Financial Statements.

The details of changes in the key financial ratios as compared to previous year are stated below:

Sr. No	Particulars	2022-23	2021-22	Change (%)
1	Debtor Turnover Ratio	0.04	0.01	204.23
2	Inventory Turnover Ratio	0.01	0.09	-93.74	it was decided prudently to kept the inventory low. Further, in the last year turnover was less thereby, inventory was more.
3	Interest Coverage Ratio	-
4	Current Ratio	20.32	21.91	-7.25
5	Debt Equity Ratio	0.01	0.01	53.19
6	Operating Profit Margin	0.02	0.06	-59.12	last year turnover was less and thereby push was given to increase the turnover by giving more discount thereby margin is less.
7	Net Profit before taxes	2,05,099	1,96,513	4.37

CAUTIONARY STATEMENT

The statement made in this report describing the Companys expectations and estimations may be a forward looking statement within the meaning of applicable securities laws and regulations. Actual results may differ from those expressed or implied in this report due to the influence of external and internal factors which are beyond the control of the Company.