MIRA INFORM REPORT
|
Report Date : |
01.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
ROYAL ORCHID HOTELS LIMITED [w.e.f. 10.04.1997] |
|
|
|
|
Formerly Known
As : |
UNIVERSAL RESORTS LIMITED |
|
|
|
|
Registered
Office : |
No.1, Golf Avenue, Adjoining KGA Golf Course, Airport Road,
Bangalore-560008, Karnataka, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
03.01.1986 |
|
|
|
|
Com. Reg. No.: |
08-007392 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.272.340
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L55101KA1986PLC007392 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Providing Hospitality Services. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 8200000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having moderate track record. There
appears a drastic dip in the net profitability during 2012. External
borrowings seem to be increasing over previous years. Liquidity position of
the company is heavily stretched. The rating action also takes into consideration the delays in debt
servicing by the company and the current weak demand scenario in the
hospitality industry. However, trade relations are fair. Business is active. Payment terms
are reported to be slow. The company can be considered for business dealings with great
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
D [Long Term Loans] |
|
Rating Explanation |
Default or are expected to be in default soon. |
|
Date |
September 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered / Corporate Office / Unit : |
No.1, Golf Avenue, Adjoining KGA Golf Course, Airport Road,
Bangalore-560008, Karnataka, |
|
Tel. No.: |
91-80-40612345 |
|
Fax No.: |
91-80-40612346 |
|
E-Mail : |
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|
Website : |
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|
|
|
|
Unit Locations: |
Royal Orchid
Central No. 47/1,
Manipal Centre, Dickenson Road, Bangalore – 560 042, Karnataka, India Hotel Ramada No. 11, Park
Road, Shivajinagar, Bangalore – 560 051, Karnataka, India Royal Orchid Resort and Convention Centre Allalasandra,
Bellary Road, Yelahanka, near Jakkur Flying Club, Bangalore – 560 065,
Karnataka, India Royal Orchid Suites Vaswani Pinnacle
Annexe, Whitefield, Main Road, Bangalore – 560 066, Karnataka, India Royal Orchid Metropole No: 5, Jhansi
Lakshmibai Road, Mysore – 570 005, Karnataka, India Royal Orchid Brindavan Garden Brindavan
Garden, Krishna Raja Sagar, Mandya District, Mysore – 571 607, Karnataka,
India Royal Orchid Central A-26, A/2
Banipark, Jaisingh Highway, Jaipur - 302 016, Rajasthan, India Royal Orchid Central Mary Soft Annex,
Software –cum-Commercial Complex, Kalyani Nagar, Pune - 411 014, Maharashtra,
India Royal Orchid Golden Suites Golden Nest – B,
Marigold Complex, Kalyani Nagar, Pune - 411 014, Maharashtra, India Royal Orchid Resort Galaxy Uttorda Beach,
Salcette, South Goa-403173, India Royal Orchid Central Opp: Gujarat
College, Ellis Bridge, Ahmedabad - 380 006, Gujarat, India Royal Orchid Central Grazia Plot No. L-3, Sector
19, Vashi, Navi Mumbai – 400 703, Maharashtra, India Royal Orchid Central Kireeti Station Road
Hospet, Bellary District, Hospet – 583201, Karnataka, India Royal Orchid Central B.H. Road,
Opposite Vinayak theatre, Near Shimoga Bus Stand, Shimoga – 577 201,
Karnataka, India Hotel Royal Orchid Opposite to BSNL
Office, Tonk Road, Near Durgapura Flyover, Durgapura, Jaipur-302018,
Rajasthan, India Royal Orchid Resort Tara Hall
Estate, Picture Palace Road. Mussorie, Uttarkhand, India Royal Orchid Central (Om
Hospitality), Akota, MujMahuda Vadodara – 390020, Gujarat, India Hotel Central Blue Stone Plot No.
358-359, Sector 29, City Centre, Gurgaon – 122 001, Haryana, India Regenta Hotel and Convention Centre National Highway
– 8, Rajakori New Delhi – 110 037, India Regenta Mpg Club, Mahabaleshwar MPG Club, 233,
Old Tapola Road, Mahabaleshwar – 412 806, Maharashtra, India |
|
|
|
|
Sales Office : |
Located At:
|
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Chander K Baljee |
|
Designation : |
Chairman & Managing Director |
|
|
|
|
Name : |
Mr. Sunil Sikka |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. Naresh K. Malhotra |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Mr. R. V. S. Rao |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Mr. Vijay K Rekhi (w.e.f 06.07.2011) |
|
Designation : |
Independent Directors |
KEY EXECUTIVES
|
Name : |
Mr. K B Shyam Kumar |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
13364795 |
49.07 |
|
|
5725425 |
21.02 |
|
|
19090220 |
70.10 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
19090220 |
70.10 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2404663 |
8.83 |
|
|
2404663 |
8.83 |
|
|
|
|
|
|
426618 |
1.57 |
|
|
|
|
|
|
4255117 |
15.62 |
|
|
805131 |
2.96 |
|
|
252216 |
0.93 |
|
|
222246 |
0.82 |
|
|
29368 |
0.11 |
|
|
601 |
0.00 |
|
|
1 |
0.00 |
|
|
5739082 |
21.07 |
|
Total Public shareholding (B) |
8143745 |
29.90 |
|
Total (A)+(B) |
27233965 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
27233965 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Hospitality Services. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
|
|
Name : |
Walker, Chandiok and Company Chartered Accountants |
|
Address : |
WINGS, First
Floor, 16/1, Cambridge Road, Halasuru, Bangalore-560008, Karnataka, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
P Chandrasekar Chartered Accountants |
|
Address : |
S- 512, S-514,
Manipal Centre, 47, Dikenson Road, Bangalore-560042, Karnataka, India |
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27233965 |
Equity Shares |
Rs.10/- each
|
Rs.272.340
Millions |
NOTES:
SHAREHOLDERS HOLDING
MORE THAN 5% OF THE SHARES OF THE COMPANY
|
Particular |
As on 31.03.2012 |
|
|
Equity shares of
Rs.10 each |
No. of Shares |
Rs. in Millions |
|
Mr. Chander K. Baljee |
11893898 |
118.939 |
|
Baljees Hotels and Real Estates Private Limited |
5446088 |
54.460 |
|
SBI Magnum Sector Funds Umbrella -Contra Fund |
2354663 |
23.547 |
TERMS AND RIGHTS ATTACHED TO EQUITY SHARES
The Company has only
one class of equity shares having a par value of Rs.10 per share. Each equity
share is entitled to one vote per share. The dividend, if any, proposed by the
Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting and shall be payable in Indian Rupees. In the
event of liquidation of the Company, the shareholders will be entitled to
receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
272.340 |
272.340 |
|
(b) Reserves & Surplus |
|
1778.778 |
1766.765 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
|
2051.118 |
2039.105 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
|
1422.523 |
1136.850 |
|
(b) Deferred tax
liabilities (Net) |
|
41.600 |
45.000 |
|
(c)
Other long term liabilities |
|
19.793 |
15.025 |
|
(d)
long-term provisions |
|
12.024 |
19.097 |
|
Total
Non-current Liabilities (3) |
|
1495.940 |
1215.972 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
5.309 |
0.000 |
|
(b)
Trade payables |
|
77.720 |
109.631 |
|
(c)
Other current liabilities |
|
717.839 |
187.808 |
|
(d)
Short-term provisions |
|
0.717 |
48.880 |
|
Total
Current Liabilities (4) |
|
801.585 |
346.319 |
|
|
|
|
|
|
TOTAL |
|
4348.643 |
3601.396 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
465.549 |
508.144 |
|
(ii)
Intangible Assets |
|
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
|
1835.674 |
1329.203 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b)
Non-current Investments |
|
1179.793 |
1179.793 |
|
(c)
Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
610.350 |
429.248 |
|
(e)
Other Non-current assets |
|
0.367 |
0.245 |
|
Total
Non-Current Assets |
|
4091.733 |
3446.633 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
15.537 |
11.855 |
|
(c)
Trade receivables |
|
66.723 |
49.420 |
|
(d)
Cash and cash equivalents |
|
156.856 |
77.031 |
|
(e)
Short-term loans and advances |
|
17.794 |
16.457 |
|
(f)
Other current assets |
|
0.000 |
0.000 |
|
Total
Current Assets |
|
256.910 |
154.763 |
|
|
|
|
|
|
TOTAL |
|
4348.643 |
3601.396 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
272.340 |
|
|
2] Share Application Money |
|
|
1.227 |
|
|
3] Reserves & Surplus |
|
|
1716.536 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1990.103 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1378.545 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
1378.545 |
|
|
DEFERRED TAX LIABILITIES |
|
|
52.500 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3421.148 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
548.253 |
|
|
Capital work-in-progress |
|
|
837.564 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
1108.613 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
8.736 |
|
|
Sundry Debtors |
|
|
49.163 |
|
|
Cash & Bank Balances |
|
|
443.955 |
|
|
Other Current Assets |
|
|
6.900 |
|
|
Loans & Advances |
|
|
569.671 |
|
Total
Current Assets |
|
|
1078.425 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
42.161 |
|
|
Other Current Liabilities |
|
|
95.100 |
|
|
Provisions |
|
|
14.446 |
|
Total
Current Liabilities |
|
|
151.707 |
|
|
Net Current Assets |
|
|
926.718 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3421.148 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
932.855 |
928.704 |
778.316 |
|
|
|
Other Income |
16.815 |
21.436 |
11.446 |
|
|
|
TOTAL (A) |
949.670 |
950.140 |
789.762 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Food and beverages consumed |
107.679 |
99.482 |
86.025 |
|
|
|
Employee benefits expense |
220.941 |
221.074 |
157.196 |
|
|
|
Other expenses |
506.620 |
403.808 |
230.039 |
|
|
|
Selling, general and administrative expense |
0.000 |
0.000 |
122.986 |
|
|
|
TOTAL (B) |
835.240 |
724.364 |
596.246 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
114.430 |
225.776 |
193.516 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
42.678 |
22.604 |
24.124 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
71.752 |
203.172 |
169.392 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
53.659 |
56.077 |
56.075 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
18.093 |
147.095 |
113.317 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
6.080 |
50.500 |
30.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
12.013 |
96.595 |
82.817 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
533.387 |
489.258 |
406.441 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
4.830 |
0.000 |
|
|
|
Proposed Dividend |
0.000 |
40.851 |
0.000 |
|
|
|
Tax on Distribution of Dividend |
0.000 |
6.785 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
545.400 |
533.387 |
489.258 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income From Operations |
370.272 |
374.153 |
308.754 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
1.913 |
7.234 |
1.717 |
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.44 |
3.55 |
3.04 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
237.500 |
240.700 |
317.500 |
321.400 |
|
Total Expenditure |
232.800 |
259.400 |
296.400 |
290.200 |
|
PBIDT (Excl OI) |
04.700 |
(18.700) |
21.100 |
31.200 |
|
Other Income |
283.500 |
09.700 |
07.400 |
11.100 |
|
Operating Profit |
288.200 |
(09.000) |
28.400 |
42.300 |
|
Interest |
12.800 |
47.300 |
58.200 |
55.000 |
|
PBDT |
275.400 |
(56.300) |
(29.700) |
(12.700) |
|
Depreciation |
12.600 |
25.300 |
65.000 |
57.000 |
|
Profit Before Tax |
262.800 |
(81.600) |
(94.700) |
(69.700) |
|
Tax |
0.000 |
0.000 |
03.500 |
(01.000) |
|
Profit After Tax |
262.800 |
(81.600) |
(98.200) |
(68.700) |
|
Net Profit |
262.800 |
(81.600) |
(98.200) |
(68.700) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.26
|
10.17 |
10.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.94
|
15.84 |
14.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.35
|
13.47 |
6.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.07 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.70
|
0.55 |
0.69 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.32
|
0.45 |
7.11 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
Unsecured Loan |
As
on 31.03.2012 [Rs.
in Millions] |
As
on 31.03.2011 [Rs.
in Millions] |
|
Short Term
Borrowings |
|
|
|
From a joint venture |
5.309 |
0.000 |
|
TOTAL
|
5.309 |
0.000 |
BACKGROUND:
Subject was
incorporated on 3 January 1986 as Universal Resorts Limited to carry on the business
and management of hotels/holiday resorts and related services. The name of the
Company was changed to Royal Orchid Hotels Limited on 10 April 1997.
NEW HOTELS OPENED:
The Company
widened its network and added the following 4 new hotel properties to its
portfolio:
- Vadodara: Hotel Royal Orchid Central, Vadodara, with 81 guest rooms,
commenced its operations in May, 2011.
- Gurgaon: Central Blue Stone, Gurgaon, with 46
rooms commenced its operations in November, 2011.
- New Delhi: Regenta Hotel and Convention
Centre, New Delhi, with 48 guest rooms, commenced its operations in
December 2011.
- Mahabaleshwar: Regenta MPG Club,
Mahabaleshwar, with 32 guest rooms, commenced its operations in May 2012.
NEW HOTEL PROJECTS
IN PROGRESS:
- Hyderabad:
The Construction of the Five Star Hotel with 233 rooms at Hyderabad is in
the advanced stages of completion. The first phase of the Five Star Hotel
with 108 rooms is likely to commence their operations by August, 2012.
- Mumbai:
The Construction of the Four Star Hotel at Powai, Mumbai with 220 rooms
has commenced and the hotel is likely to commence its operations by 2014.
UPCOMING PROJECTS:
The Company is in the process of establishing new hotels in the
following locations, in near future:
|
S. No. |
Location |
|
1. |
Surat |
|
2. |
Bharuch |
|
3. |
Chennai |
|
4. |
Kolkata |
|
5. |
Lokhandwala |
BUSINESS EXPANSION:
The Company has
drawn ambitious expansion plans so as to reach a target of 4000 keys by the year
2015. This will be achieved by using both organic and inorganic approaches.
Further, the company has taken steps to open new hotels in new brand
“Re:gen:ta.” Regenta Hotel and Convention Centre, New Delhi, was opened during
December, 2011 under the new brand.
AWARDS:
- During the year, Royal Orchid Central,
Bangalore was awarded “National Energy Conservation Award, 2011”. The
award was presented by the Ministry of Power, Government of India.
- Royal Orchid Central, Ahmedabad won the
“Hospitality Leadership” at the GOLDEN STAR AWARDS, instituted by Stars of
the Industry Group.
- Royal Orchid Central, Ahmedabad won the “First
Class Business Award”.
- Royal Orchid Central Grazia, Navi Mumbai won
the “Most admired Customer Services of the year” award.
- Royal Orchid Suites, Bangalore won the
“National Tourism Award for Best Business Hotel” award.
- Ramada, Bangalore managed by Royal Orchid
Hotels Limited is the only hotel in India to have won the bronze awards
for two categories mentioned below during the Wyndham Hotel Group Brand
Conference held in Las Vegas this April 2012: a) Quality Customer feedback
and guest satisfaction scores b) most engaged front office team.
- 16 Certificate of Excellence awards
from Trip Advisor for its various hotels.
MANAGEMENT DISCUSSION
AND ANALYSIS:
OVERVIEW:
This discussion
aims to present a macro view of the operations of the Company, in the light of
general, socio, economic and political conditions prevailed during major part of
the year and with their impact on the hospitality Industry. During the year,
the Company continued its efforts towards achieving its vision ‘to be the
preferred group of hotels for the discerning global traveler’, by
ensuring highest quality service levels across all its units. The Company
expanded its operations into newer markets in India, besides ensuring, timely
completion of various ongoing hotel projects.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
TOURISM:
Tourism Sector is
recognized as a major driver for economic growth of a country as it generates
wide scale employment and facilitates national integration by removing regional
imbalances, besides earning valuable foreign exchange
In the Asia
pacific region, India has emerged as one of the most popular tourist locations
along with China in recent times, due to its geographical diversity. The fiscal
year 2011-12 witnessed a momentum of growth in Indian Tourism Industry. As per
the Ministry of Tourism, Government of India, Foreign Tourist Arrivals (FTAs)
in India during 2011 were 6.29 million with a growth rate of 8.9% as compared
to FTAs of 5.78 million during 2010.
The availability
of International quality Medical Treatment at a lower cost and also facilities
for certain specialized Indian Traditional Yoga and Ayurvedic treatments, act
as a major factor for increased FTAs, making India a preferred destination. In
addition to this, Historical tourism in India holds major potential and has
already got the attention of the Government and in the years to come, this is
bound to bring in a substantial development to this sector.
According to the
latest Tourism Satellite Accounting (TSA) research, released by the World
Travel and Tourism Council (WTTC), the demand for travel and tourism in India
is expected to grow by 8.2% between 2012 and 2022. This will place India at the
third position in the world. India’s travel and tourism sector is expected to
be the second largest employer in the world. Capital investment in India’s
travel and tourism sector is expected to grow at 7.5% between 2012 and 2022.
The WTTC also forecasts India to get more capital investment in the travel and
tourism sector and is projected to become the fifth fastest growing business
travel destination from 2010 through 2020.
Although the long
term prospects of the Indian Tourism industry look promising but jolts like
terrorist attacks, civil disturbances such as Maoist attacks, health scars,
natural disasters and increased abuse of women tourists in a few popular
tourist destinations, continue to cause concerns.
The significant
growth of major core infrastructure sectors in India has accelerated the
recovery phase of the Indian Tourism industry. Besides the welcome improvement
of spending power of the consumers, the development and marketing of newer
tourist destinations, along with improvements in road and air connectivity
across major business and tourist locations, have facilitated growth of
domestic tourism.
OUTLOOK:
Substantial
investment in tourism infrastructure is absolutely essential for Indian hotel
industry to achieve its potential to an optimum extent. The various
Governmental initiatives such as upgrading of national highways, ‘Incredible
India’ destination campaigns, ‘Atithi Devo Bhavah’ campaigns, newly-evolved
concept of transit hotels in airports, are expected to result in desired levels
of growth in hotel industry. Across the markets in general, we experience the
signs of improving occupancy rates, which are likely to result in higher ARRs
in the near future.
Royal Orchid Group,
with its 21 hotels situated across 14 major cities in India (5 in Bangalore , 2
in Mysore, 1 in Hospet, 1 in Shimoga, 2 in Pune, 2 in Jaipur, 1 in Goa, 1 in
Ahmedabad, 1 in Navi Mumbai, 1 in Mussoorie, 1 in Vadodara, 1 in Gurgaon, 1 in
New Delhi, 1 in Mahabaleshwar), has been continuing its expansion drive and
thus, many more new hotel projects are already in pipeline, to be established
across major cities in India. The present room inventory of Royal Orchid group
1702 keys is set to expand to the level of 4000 keys by 2015. The group’s
initiative to add on more hotels under its brand through Management Contracts
has evinced encouraging response across many newer potential markets.
FIXED ASSETS:
- Land Freehold
- Leasehold
Building
- Plant and
Machinery
- Furniture and
Fixtures
- Vehicles
- Office
Equipments
- Computer
STATEMENT OF STANDALONE
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31, MARCH 2013
Rs. in Millions
|
Sr. No. |
Particular |
3
Months Ended |
Preceding
3 Months Ended |
Year
Ended |
|
|
|
31.03.2013 |
31.12.2012 |
31.03.2013 |
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
|
|
|
|
|
|
1. |
Net Sales/Income
from Operations |
321.387 |
317.448 |
1117.022 |
|
|
Other Operating
Income |
0.000 |
0.000 |
0.000 |
|
|
Total Income From Operations (Net) |
321.387 |
317.448 |
1117.022 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
33.200 |
41.343 |
131.953 |
|
|
Employee
benefits expenses |
68.441 |
65.835 |
261.096 |
|
|
Depreciation
and amortization expenses |
56.987 |
65.023 |
159.930 |
|
|
Rent |
42.118 |
44.410 |
181.734 |
|
|
Power
and fuel |
35.236 |
30.684 |
121.506 |
|
|
Other
expenses |
111.187 |
114.099 |
382.477 |
|
|
Total Expenses |
347.169 |
361.394 |
1238.696 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
(25.782) |
(43.946) |
(121.674) |
|
|
|
|
|
|
|
4. |
Other Income |
|
|
|
|
|
--
Gain from sales of long term investigation in subsidiary |
-- |
-- |
276.390 |
|
|
--
Others |
11.088 |
7.365 |
35.277 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
(14.694) |
(36.581) |
189.993 |
|
|
|
|
|
|
|
6. |
Interest |
54.983 |
58.160 |
173.225 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
(69.677) |
(94.741) |
16.768 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
(69.677) |
(94.741) |
16.768 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
1.020 |
(3.500) |
(2.481) |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
(68.657) |
(98.241) |
14.288 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
(68.657) |
(98.241) |
14.288 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
272.339 |
272.339 |
272.339 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earnings Per
Share (EPS) (Rs.)-Not Annualized |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
(2.52) |
(3.61) |
0.52 |
|
|
b)
Basic and diluted EPS after extraordinary items |
(2.52) |
(3.61) |
0.52 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
8143745 |
8103981 |
8143745 |
|
|
-
Percentage of Shareholding |
29.90 |
29.76 |
29.90 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
295241 |
295241 |
295241 |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of promoter and promoter group) |
1.55 |
1.54 |
1.55 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
1.08 |
1.08 |
1.08 |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
18794979 |
18834743 |
18794979 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
99.25 |
98.46 |
99.25 |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
69.01 |
69.16 |
69.01 |
|
Particulars |
3 Months ended on 31.03.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unresolved at the end of the
quarter |
Nil |
STATEMENT OF ASSETS AND
LIABILITIES
Rs. in Millions
|
PARTICULARS |
31.03.2013 |
|
Equity and liabilities |
|
|
Shareholders' fund |
|
|
Share capital |
272.340 |
|
Reserve & surplus |
1793.066 |
|
Sub-total
- Shareholders' funds |
2065.406 |
|
Non - current liabilities |
|
|
Long term borrowings |
1554.299 |
|
Deferred tax liability (net) |
44.080 |
|
Long term provisions |
16.121 |
|
Sub-total
- Non-current liabilities |
1614.500 |
|
Current liabilities |
|
|
Short term borrowings |
106.254 |
|
Trade payables |
207.911 |
|
Other current liabilities |
263.926 |
|
Short term provisions |
3.072 |
|
Sub-total
- Current liabilities |
581.163 |
|
|
|
|
Total -
Equity & Liabilities |
4261.069 |
|
|
|
|
Assets |
|
|
Non-current assets |
|
|
Fixed assets |
2440.524 |
|
Capital work in progress |
0.000 |
|
Non-current investment |
1050.739 |
|
Long term loans & advances |
282.126 |
|
Other non-current assets |
0.000 |
|
Sub-total
- Non-current Assets |
3773.389 |
|
Current
assets |
|
|
Inventories |
14.824 |
|
Trade receivables |
92.826 |
|
Cash & bank balances |
77.143 |
|
Short term loans & advances |
302.887 |
|
Other current assets |
0.000 |
|
Sub-total
- Current Assets |
487.680 |
|
|
|
|
Total –
Assets |
4261.069 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
|
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.98 |
INFORMATION DETAILS
|
Report Prepared by
: |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.