BUDGET HOTELS LIMITED
ANNUAL REPORT 2002-2003
DIRECTOR'S REPORT
TO THE MEMBERS
Your Directors present the 15th Annual Report together with the audited
statements of account and the auditors' report thereon for the year ended
31st, March 2003.
RESTRUCTURING
The Scheme of Amalgamation for merger of Apeejay Surrendra Park Hotels
Limited (ASPHL) and Gemini Hotels & Holdings Limited (GHHL) with the
Company was approved by the shareholders of the respective Companies in
separate Meetings held on 9th December 2002 and 5th February 2003 under the
direction of the High Courts at Karnataka and Delhi respectively. The High
Court of Chennai waived the requirement of such meeting. The scheme
received sanction of the respective High Courts at Chennai, Delhi and
Bangalore on 30th June 2003, 6th August 2003 and 17th September 2003. Upon
filing of the certified copies with the Registrar of Companies Pondicherry,
Karnataka and Delhi & Haryana, the scheme has become effective on November
28, 2003 with effect from 1st April 2001 (appointed date).
FINANCIAL RESULTS AND INDUSTRY OUTLOOK
The financial results are summarized below:
2002-03 2001-2002
(Rs.in Lacs) (Rs.in Lacs)
Revenue 7672.45 5706.67
Operating profit 1191.18 1123.02
Less: Finance Charges 1399.76 1072.31
Depreciation 637.21 2036.97 338.55 1410.86
Net Loss for the year (845.10) (287.84)
The Park Chennai commenced operations on May 15 ,2003 with 90 rooms, a
restaurant and a bar. Over the course of the year other areas were put into
operation. The Hotel has quickly become established as Chennai `s leading
luxury hotel, due to its international level of services , product and
people.
Your Company's performance during the year under review reflects the
challenges faced by the hospitality industry the world over. The
hostilities in the Iraq and sudden eruption of the SARS scare affected the
business at the end of the Fourth Quarter, Competition has seen room rates
more downward.
Not with standing the recent periodic setback, Tourism continues to be the
world's largest and fastest growing Industry. Hotel constitutes an
important part of the infrastructure required for the growth of Trade,
Commerce and Industry. There is a growing appreciation of the significant
potential of the Tourism and Hotel Industry to contribute to the National
goal of employment generation and foreign exchange earning. The increasing
globalisation of markets and the expected high rates of growth of the
Indian economy will spur demand for high quality accommodation. Towards
this end, planned renovation and refurbishing programmes are progressing
satisfactorily.
As on date the half-yearly results look strong and the outlook for Q3 & Q4
is promising. Your Company continues to believe that the long-term
prospects for the Travel and Tourism Industry in India are attractive. Your
Directors look forward to the future with confidence.
DIRECTORS
Mr. A.N.Mathur and Mr.A.Ghosh , Directors of the Company, retire by
rotation and being eligible offer themselves for re-appointment.
Mr. Vijay Dewan, Director of Company, has been appointed as the Managing
Director of the Company with effect from November 28, 2003 by the Board of
Directors at its meeting held on November 28, 2003 for a period of 5 years
w.e.f December 1, 2003. Mr. Dewan is a very experienced hotelier and was
the Managing Director of Apeejay Surrendra Park Hotels Ltd which has merged
with your company. Approval of the shareholders is sought for the
appointment and for the remuneration payable to Mr. Dewan.
AUDITORS
The Auditors M/s. P. Srinivasan & Co, Chartered Accountants , retire at
forthcoming Annual General Meeting. The Company has received a notice from
a Shareholder proposing the appointment of M/s. Price water house ,
Chartered Accountants as Statutory Auditors and they have confirmed their
eligibility under Section 224 (1B) of the Companies Act, 1956. The said
business is to be considered in the forthcoming Annual General Meeting .
Deposits
During the year under review your Company did not accept or invite any
deposits from the public within the meaning of Section 58A, of the
Companies Act 1956 and the rules made there under.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANG EARNINGS AND
OUTGO
The particulars as prescribed under sub section (1)(e), of section 217 of
the companies act 1956 read with the companies (enclosure of particulars in
the report of Board of Directors) Rules 1988, as set out in the annexure is
enclosed in this report.
Conservation of Energy
The Company has taken every effort to ensure the optimal use of energy,
avoid wastage and conserve energy as far as possible. All possible measures
have been taken to conserve energy
i) through automation
ii) by incorporating energy efficient equipment
Disclosure of particulars with respect to Technology Absorption
The activities of the company do not involve any programmes of technology
absorption.
Particulars of Foreign Earnings and Outgo:
Earnings in Foreign Exchange Rs. 2860.26 Lacs
Remittances in Foreign Exchange Rs. 183.14 Lacs
CIF Value of Imports Rs 286.75 Lacs
PARTICULARS OF EMPLOYEES
The information as required u/s 217 (2A) of the companies act 1956 read
with Companies (particulars of employees) Rules, 1975, as amended and
forming part of the Director's Report is given in Annexure I of this
report.
DIRECTORS RESPONSIBILITY
Pursuant to sec 217 (2AA) of the companies (amendment) Act 2000, the
Directors confirm that;
1) in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanations relating to
material departures;
2) the directors had selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
company at the end of the financial year and of the profit or loss of the
company for that period;
3) the directors had taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provision of this Act
for safeguarding the assets of the company and for preventing and detecting
fraud and other irregularities;
4) the directors had prepared the annual accounts on a going concern basis.
ACKNOWLEDGEMENT
Your Director's record their appreciation of the good services rendered by
our team members across the country.
Our thanks are due to bankers, the financial institutions, Ministry of
Tourism, and other Government Agencies and our customers for their support
to the company.
For and on behalf of the Board of Directors
Place : Bangalore Vijay Dewan
Date : 28.11.2003 Director