Hotel Project Report

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VISION: 

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To be an organization which aims at leadership in the hospitality industry by understanding its guests, and designing and delivering products and services which enable it to exceed their expectations. To have a user-friendly technology enhancing value for our customers and helping our personnel by making information more accessible.

Chapter

Particulars Introduction

Page No.

6

1.2

The Grand Five Star Deluxe Hotel Business Activities

7

1.3

Overview of Hotel Industry

9

Location & Operation

10

2.1

Location of the Company

10

2.2

Locational Advantage

10

Background

11

Background of Partners Services of Hotel

11 12

General Guest Services

12

Infrastructure

13

5.1

Swimming Pool

13-17

5.2

Fitness Room

13

5.3

Business Room

13

5.4

Banquet Hall & Convention Centre

14

5.5

Conference Hall

14

5.6

Rooms & Suites

14

1 1.1

2

3 3.1 4 4.1 5

6-9

Market Study

29-32 29

9.2

Past Supply & Present Demand Occupancy Rates

30

9.3

Average Room Rates

31

9.4

Government Measures Benefiting the project

32

Domain Facts

33-38

10.1

Foreign Direct Investment in Hotel Industry

33

10.2

Reasons foe Low FDI in Hotel Industry

33

10.3

Major Reasons to Invest in Hotel Industry

35

10.4

Other Government Initiatives

36

10.5

Government Open Sky Policies

36

10.6

Tax Benefits in Hotel Industry

37

11

Pattern of Financing in Corporate Hotels

39

12

Public Involved in Hotel Industry

40-43

Trends in Public/Private Partnerships

40

13

Joint Venture Concept in Hotel Industry

44

14

Hotel Brand Explosion in India

46

15

Hotel Development Cost

47

16

Marketing

49

9 9.1

10

12.1

21.8

CMA-Analysis of Balance Sheet (Liabilities side)

89

21.9

CMA-Analysis of Balance Sheet (Assets side)

91

21.10

Comparative Statement of CA & CL

93

21.11

Turnover Method

94

21.12

CMA- Financial Position

95

CHAPTER – 1

1.1 THE GRAND FIVE STAR DELUXE HOTEL: The Grand Five Star Deluxe Hotel is a Joint Venture between Mr. Vijay Yadav (Land Owner) and the developer from USA. Land selected for the project is of 8 Acres. The Hotel offers 370 rooms.

efficient service with the fresh contemporary approach. With easy access to NH-3 Highway, the domestic & international airport and the metro line that now links with various parts of Delhi. The hotel is equipped with 370 well-appointed rooms comprising of  one Bedroom, 2-bedroom and presidential suite.

In Room Facilities:            

24-hours Room Services. Tea/Coffee Maker. Satellite LCD TV. Electronic Safe. Hair Dryer. STD/ISD Direct Dial Facility. High Speed Wi-Fi & Broad band Connectivity Facility. Iron & Ironing Board. Daily Newspaper. Choice of Fruits. Mini Bar. Weighting measures.

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Fitness centre/Spa 24x7 Business Centre Beauty Salon Airport Transfers Travel Assistance 24-hours Currency Exchange Doctor on call In-house laundry Baby Sitting Facility Meeting & Conference Rooms Banquet Facilities Shopping Facility 24-hrs Front desk facility Speaker phones Shoe Shine Stand Voice Mailing Facility Cordless Phone Cable television Wedding Services Express Check in/ Checkout Facility Flat Screen TV Connecting Rooms Gift/News Stand Executives Floor Bottled Water Wheel Chair Access Bathroom amenities

world leader of hospitality. Availability of qualified human resources and untapped geographical resources gives great prospectus to hotel Industry. The number of tourist coming in India is growing in last year‘s. Likewise, internal tourism is another area with great potentials. Today Hotel Industry is one of the fastest growing Industry in India. It is expected to grow to 10% between 2015 to 2020. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry. According to a report, Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room rates across India. According to estimates demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, hotel rates in India are likely to rise by 25% annually The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. With such growth, sources estimate, demand is going to exceed supply by at least 100 per cent in coming years.

Number of Hotels – 2010

Hotel categories 5

deluxe/5

No. of Hotels

No. of Rooms

165

43,965

2.1 LOCATION OF THE HOTEL 

Administrative Office: Sec.71, Facing Sourthern Pheripery Road, Gurgaon

2.2 LOCATIONAL ADVANTAGE Gurgaon is considered as one of the fastest growing cities in India. The fast growing BPO, KPO, IT/ITES, Manufacturing and other industries in the city have made it mandatory for the city to come up with some state of the art accommodations for overnight visitors. Gurgaon‘s proximity to the national capital Delhi and its proximity to both international and national airport have had a major impact on the growth of the city when it comes to acting as a host to a number of foreign conglomerates as well as domestic dignitaries. The Hotel stands just a few minutes from all the major destinations:

Just 20 minutes away from I.G International Airport, Delhi.

3.1 BACKGROUND OF PARTNERS:

The parties of agreement are as under 1. Mr. Vijay Yadav (Shikohpur Developer). 2. USA Developer.

Sitting atop 8 acres of lush, fragrant garden the hotel offers 370 rooms.

4.1 General Guest Services:              

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24-hour Room Service. Signature gift and sundry shop. Guest-chosen daily newspaper delivery. Digital interactive television entertainment system. Business Phone services. Laundry and dry cleaning services. Complimentary shoeshine service. Limousine and rental car service. Car detailing. Secured & High speed elevators. Central satellite system and intercom system. Central Air conditioning. CCTV and 24 hrs security system. Gym, sauna, Jacuzzi, baby play area, party and meeting hall. Sport and activity center. Internet & Media lounge. High-Speed Internet access & Wi-Fi. Baggage Storage

CHAPTER – 5

5.1 Three Swimming Pools: Swimming pools will provide not only a cool and relaxing swim after a busy working day, but will also be place for an informal drink or quick bite with friends or business partners or the place for a book or a moment of  meditation.

5.2 Fitness Room:

5.4 Banquet Hall & convention Centre Our team will guarantee that every venue is organized in accordance with the most professional standards. The client may choose from a wide variety from cocktail, cold or warm buffet to a full menu supported by an international wine card.

5.5 Conference Hall Conference Hall will be able to fit around 100 people and will be equipped with amenities such as flip charts, wireless internet, LCD projector, White Board, Basic Stationeries, etc

5.7 Restaurants & Bars The hotel will be having restaurant, a lounge and a coffee shop, which will be offering a choice of continental, Chinese and variety of  food from Indian cuisine, with live piano, music. The bar will be stocked with best of  spirit and wine where guests can spend their time gossiping and watching television.

5.8 Lounge Bars The hotel will be having a music lounge equipped with the latest & a light system. The zeal to dance and enjoy will be the welcome thought.

5.10 Layout Plans 5.10.1 Floor Plan Studio of 402 Sq. Ft

5.10.2 One Bedroom & One Bath Room of 558 Sq ft.

5.10.3 Two Bedrooms & 2 Baths

CHAPTER – 6

6.1 NATIONAL SCENARIO India is the country with only a limited number of international brands and had hotels that were mainly concentrated in the major metros and predominantly in the luxury/first class positioning. Over the years, the hotel industry has undergone significant changes and has reinvented itself in a manner that we believe has benefited the industry as a whole, including all its constituents – hotel guests, investors, employees and other stakeholders. Current Occupancy Situation of Hotel in Gurgaon and Delhi    

Hotel Imperial In Delhi-99.57% Hotel Trident Hilton Gurgaon- 98.30% Indian Hotel- 97% Tourism is presently the most important civil industry in the world. The hospitality industry is second only to the global oil industry in terms of turnover, and is, by far, the largest employer around the world. Ten percent of the world's work force is in the tourism industry, and 10 percent of the world's GNP comes from tourism. Foreign tourist arrivals to India increased from 5.13 million in FY09 to 5.5 million in

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also bagged 37th rank for its air transport network. The India hotel industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019. To encourage the hotel sector, the government in recent times, has taken some measures which will benefit the sector. In FY09, Rs.5.2 bn for development of hotel infrastructure was allocated. This figure is higher by Rs.970 m as compared what was allocated in the previous year. However, it is only 1% of the total government spending. RBI has allowed ECB upto US$ 100 m in January 2009, which would help in raising funds. The Centre and States are also working out a PPP (Public-Private-Partnership) model to increase hotel capacity. The hotel and tourism industry's contribution to the Indian economy by way of foreign direct investments (FDI) inflows were pegged at US$ 2.17 billion from April 2000 to September 2010, according to the Department of Industrial Policy and Promotion (DIPP). The who's who of the world of international fund companies - Blackstone, Morgan Stanley, Walton Street Capital, Starwood Capital, Merrill Lynch, West bridge Capital, Lehman Brother are looking to invest in the hospitality sector. Around 500 million domestic tourists are projected to travel across India by 2010 compared to around 325 million in 2006 and growing at over 10% annually. India's hospitality sector is expected to see an estimated investment of US$11.41 billion

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To set up a 5-star deluxe hotel with 250-300 rooms will cost approximately Rs.300 crore, excluding the land cost. As per estimates by hospitality consultancy HVS International, around 150 hotel projects are in the works across the country, which are likely to add around 53,000 rooms over the next five years. There are about 1,285 approved budget hotels across the country with about 51,000 rooms apart from guesthouses, dharamshalas and devasthans in the unapproved sector. The footprints of the IT and ITES in Tier 2 cities like Indore, Jaipur, Agra, et al, have played a role in driving the demand for budget hotels in these cities. The tourism ministry has proposed a cash subsidy of Rs.2 lakh per room for one-star category and Rs.3 lakh per room for two and three star category hotels to facilitate their growth. According to Federation of Hotel and Restaurant Association of India (FHRAI), the country is short of 65,000 budget category rooms. Average Room Rate (ARR) of hotels in India is increasing at the rate of over 20%almost equal to that of hotels in developed countries such as Europe and the US. The growth in ARRs is direct fallout of the shortage of five-star accommodation in India and high demand generated by the booming economy. This shortage has stimulated investments in the hotel industry. Most of the five-star hotels are witnessing an average room occupancy rate of over 80%. For every room constructed, 3-5 jobs are created. The World Travel and Tourism Council have estimated that by 2010, tourism can support 25 million jobs (1 in every 15)

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Online travel industry is growing at a CAGR of 125%. Generating revenues of around $300-500 million, the size of this industry is around 2% of the entire travel industry, which is estimated to be $42 billion. Growing at the current rate the online travel industry in India is expected to become a $2 billion industry by 2008. Table below presents the nationwide occupancy and average rate performance.

Year Ending 31st March 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Occupancy 57.20 51.60 57.20 64.80 69.00 71.50 71.40 68.80 60.30 65.00 68.00

% Change -9.80 10.90 13.30 6.50 3.60 -0.01 -3.60 -12.40 7.80 4.60

Average Rate 3731 3467 3269 3569 4299 5444 7071 7989 7837 6426 6800

% Change -7.10 -5.70 9.20 20.50 26.60 29.90 13.00 -1.90 -18.00 5.80

RevPAR 2134 1789 1870 2313 2966 3892 5049 5496 4726 4177 4624

% Change -16.20 4.50 23.70 28.30 31.20 29.70 8.90 -14.00 -11.60 10.70

6.3 GLOBAL SCENARIO 

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Hospitality Industry being the largest service sector in the country, adds around 8.60 percent to the national GDP and 3.1 percent of total GDP. Foreign Tourist has increased by 7 percent as compared to previous years which will be giving an advantage to the project. Foreign Exchange earnings have witnessed to US$ 1.25 billion providing an economic benefit to the country Globally, hospitality industry is one of the largest service industries in terms of revenue generation and foreign exchange earnings, contributing over 9% to global GDP. It is also one of the largest employment generators in the world. An estimated 235 million people work directly or in related sectors, accounting for more than 8% of global employment. International hotels are deriving a big chunk of revenues from casinos and betting arenas. Margins in this segment are also higher. But for Indian hotel majors, setting up casinos and betting arenas is not allowed according to Indian laws. However, when domestic hotels are compared to international hotels then they are fairly competitive in terms of  average room revenues.

For arriving at a Net Asset Value Setting up a 5 star hotel

= Rs 30-35 m*

CHAPTER – 7

Clocking revenues worth billions of dollars, hotel industry is dynamic and fast growing. The opportunities for career advancement in this sector, post-recession, are immense. The global demand for travel and tourism provides unprecedented opportunities going forward in this industry. As India is one of the new markets in the hospitality demand for trained manager will be on rise. An average staff turnover in a five star hotel is 24.14 percent. There is a requirement of about 15000 additional trained persons in the star category hotels in India, which includes about 2700 managers, about 2500 supervisors and about 1000 staff members. The requirement given for manager and supervisor categories which totals to 5200 and will be filled by 3 or 4 years diploma and degree holders. A single five star hotel could employ more than 400 employees. A total of 57508 people are employed to service about 36000 rooms in this category. On an average, there are approximately 176 employees per 100 rooms in these hotels. The employment pattern is the across geographic regions. The major employing functions are F&B Service, F&B Kitchen and Housekeeping. They, together, account for 56% of the total employment in these hotels.

7.1 Employment in Different Department in industry Five/Four Star Hotel One/Two & Three Star Other Hotels

Management team 50

Front office 45

F&B service 128

F&B kitchen 105

House keeping 82

Accounts

Total

40

450

33

30

85

70

55

27

300

16

15

41

34

26

13

145

7.2 Increasing Employment Opportunities in Industry Employment Pattern and Forecast:-

5/4 Star Hotels 1-3 Star Hotels Smaller Hotels Total

Employees Intensity (Employees per 100 rooms)

Employment 2002

Employment 2011

Employment 2016

174 122 58 NA

57000 52500 638000 747500

83000 63000 1405000 1551000

110400 83000 3261500 3454900

7.3 Projected Human Resource requirement in Hotels:Particulars Five Star Hotels

2010 76

2012 91

( fig in ‗000)

2018 104

2022 117

The departments are classified on account of its function. They are as follows:-

8.1 Core Functioning Department 

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Food & beverage (F&D) Department:F & B deals mainly with food and beverages service allied activities. Different divisions are there in F & B like Restaurants, Specialty Restaurants, Coffee Shop (24 Hrs), Bar, Banquet, Room Services etc. Apart from that they have Utility services (Cleaning). Front Office Department:The front office is the command post for processing reservation, registering guests, settling guest account (cashiering), and checking out guests. Front desk agents also handle the distribution of guestroom keys and mail, messages or other information for guests. The most visible part of the front office area is of course the front desk. The front desk can be a counter or, in some luxury hotels, an actual desk where a guest can sit down and register.

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Marketing & Selling Department:Sales and marketing has become one of the most vital functions of the hotel business and an integral part of modern hotel management. It includes packaging for selling, sales promotion, advertising and public relations. The marketing division is charged with the responsibility of keeping the rooms in the hotel occupied at the right price and with the right mix of guests. Engineering & Maintenance Department:The energy crisis throughout the world has given a great importance to the engineering department of a hotel. This department provides on the day-to-day basis the utility services, electricity, hot water, steams, air-conditioning and other services and is responsible for repairs and maintenance of the equipment, furniture and fixture in the hotel. The engineering department has an important role in satisfying the guestdemand and helping to maintain the profit level of hotel. The cleaning, up-keep, repair, replacement, installation and maintenance of property and its furnishing, machinery and equipment are the joint responsibilities of Engineering/ Maintenance and the Housekeeping Department. Finance, Accounting & Control Department:-

This department has newly taken step in hotel industry and within a short span of  time it has become very important part of the organizations. It plays the role of  facilitator between the bargain able cadre and non-bargain able cadre.

8.3

Key Control Department 

Types Of Keys:Room Keys: Different keys are issued to guest for their rooms. Have a heavy key (key tab) discussion guest taking it away. Bells bay will take the key from the guest at the time of check out.   

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Section Keys These keys will be issued to room alter dents. Will open doors of one section /floor. The will not open the double lock rooms. Room attendants will carry their key bundles, tied around so that they don‘t loose.    

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Floor Master Key:Will open all rooms on the floor. Will not open double locked room. General Master Key: 

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CHAPTER – 9

9.1 Past Supply and Present Demand A comparison between increase in supply and demand in 2010-11 as compared to 200910 for the major markets in India and two levels of positioning namely mid-market and luxury/first class. Figures has been calculated by using performance of each hotel in these market for 2009-10 & 2010-11 and then comparing the total of accommodated rooms for all hotels to the increase in supply in the market during the same period.

Demand Supply Comparison (2009/10  – 2010/11) Mid-Market 2010-11 Bengaluru Chennai Delhi NCR Goa Hyderabad Jaipur Mumbai

Luxury/ First class 2009-10

2010-11

Supply

Demand

Supply

6.1%

21.3% 3.6%

20.7%

16.5% 14.4% 30.3%

4.3%

7.6%

16.6% 14.6% 18.3%

30.1% 11.8% 16.7%

9.0%

4.0%

14.0% 25.4%

33.1% 22.1%

9.9%

Demand

2009-10

Supply

Demand

Supply

Demand

26.8%

16.5% 2.0%

1.5%

34.0%

23.4%

7.1%

8.8%

42.5% 13.8% 15.0%

29.9%

4.1%

33.9% 15.0%

0.0%

5.2%

11.9% 27.6%

14.3% 29.0%

1.2%

6.7%

10.5%

0.7%

1.2%

6.0%

0.0%

2.0%

16.1%

14.8%

4.2%

2.9

16.4%

9.3 Average Room Rates There are three classes of rooms in a hotel i.e. business, leisure and luxury. It is important to understand that room rates are less elastic to a fall in price at the higher end of the segment (luxury) than at the lower end of the spectrum (business/leisure).Currently, the big hotels have average occupancies of 60%.

9.4 Government Measures Benefiting the Project Various policy measures undertaken by the Ministry of Tourism and tax incentives have also aided growth of the hospitality industry; some of them include: 

Allowance of 100% FDI in the hotel industry (including construction of hotels, resorts, and recreational facilities) through the automatic route

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Introduction of ‗Medical Visa‘ for tourists coming into the country for medical treatment Issuance of visa-on-arrival for tourists from select countries, which include Japan, New Zealand, and Finland Promotion of rural tourism by the Ministry of Tourism in collaboration with the United Nations Development Programme Elimination of customs duty for import of raw materials, equipment, liquor etc Capital subsidy programme for budget hotels Exemption of Fringe Benefit Tax on crèches, employee sports, and guest house facilities Five-year income tax holidays for 2-4 star hotels established in specified districts having UNESCO-declared 'World Heritage Sites'.

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CHAPTER – 10

10.1 FOREIGN DIRECT INVESTMENT IN HOTEL INDUSTRY 100 per cent FDI is permissible in the sector on the automatic route. The term hotels include restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industry include travel agencies, tour operating agencies and tourist transport operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment, amusement, sports, and health units for tourists and Convention/Seminar units and organizations.

10.2 REASONS FOR LOW FDI IN FHOTEL INDUSTRY The following are the some of the reasons for low foreign direct investment in this sector. They are: 10.2.1 Multitude of taxes Ours is the highest tax structure on tourism projects in the Asia Pacific region. Multitude of central and state taxes is the fundamental problem plaguing the tourism sector. Expenditure Tax of 10% is charged in hotels ‗wherein room charges for any unit of residential accommodation are Rs.3000 or more per day‘

On the indirect taxes front also, India fairs poorly as compared to competing destinations. The following table and figure showcases tourism related major indirect taxes benchmarked across comparable locations.

Cities/Taxes Kuala Lumpur Bangkok  Hong Kong Singapore New Delhi Mumbai Lowest rates Highest rates

Airport Related 1.70% 1.26% 0.72% 0.94% 0.94% 0.90% 0.53% 7.66%

Accomadation Related 4.76% 6.54% 2.91% 3.85% 16.67% 13.79% 0.25% 20.00%

Food & Beverages Related 4.76% 6.54% 0.00% 3.85% 6.54% 19.03% 0.00% 20.00%

Car Rentals Related 4.76% 6.54% 0.00% 4.38% 4.76% 4.76% 0.00% 33.22%

Total Taxes 6.46% 7.86% 2.18% 4.98% 13.18% 13.90% 0.97% 24.25%

Rank  7 8 2 3 19 21 1 52

10.2.3 Delay in FDI Approvals & Govt. Policies Huge delay in Foreign Direct Investment approvals in Hotel & Tourism sector. Due to delay in approvals and lack of guidelines in the tourism policy, the Alfred Ford‘s proposed Himalayan Sky Village is pending since last three years. If it is approved it is one of the highest FDI in the country in tourism sector with US$ 300 million which also provides employment to around 3000 people. 10.2.4 Highest import duty on imported liquor used in hotels:

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Economic liberalization has given a new impetus to the hospitality industry. The Indian hospitality industry is growing at a rate of 15 percent annually. The current gap between supply and demand expected to widen further as the economy opens and grows. The government forecasts an additional requirement of 200,000 rooms by the turn of  the century. The travel and hospitality industry continues to be the sector, which has largely profited from the fast growing economy of India. This has largely been due to the 3.9 m tourist arrivals in FY06 (15% growth) over the previous period. The compounded growth in tourist inflow over the last ten years (FY00-FY10) has been 8.2%, while in the last five years, growth stands at 9.1% per annum. This increase in the number of tourist arrivals in the country lifted the country‘s standing in the world of tourist destinations. The country is ranked fourth among the world‘s must see countries. The sector continues to face certain problems. The country continues to be marred by poor infrastructure facilities like poor road management, rail, air and sea connectivity. However, the present government in its endeavor has taken a few initiatives like opening of the partial sky policy. This allows private domestic airline operators to fly on the Indian skies. Some states continue to be in political uncertainties. As per the 2009 findings, the total number of approved rooms by the Government of  India stands at around 99,000 (estimated). These rooms are further classified into various segments out of which, Five star and Five star deluxe hotels account for around 27% of the total capacity, three star hotels (22%), four star (8%), two star

Government has undertaken following initiatives to attract both inbound and outbound tourists: • Incredible India -Under this program the Government promotes India through various integrated marketing programs. • Atithie devo bhava (guests are equal to god) -Under this program the Government create awareness among Indian people who come in contact with the tourist. • Various Infrastructure building initiatives • Encourage religious tourism for instances promote various places in India as Buddhist abodes. Other projects are the Rs. 5,400 million National Highways Development Project, the 5,846 km Golden Quadrilateral and the 7,300 km north-south and eastwest corridors. Sagarmala project which intends to create a network of seaports, which will change the way people discover and experience real India. Eco-tourism - The government is considering various fiscal and policy measures to promote ecological and adventure tourism in the country including formulating uniform ecological guidelines to conserve nature and waiver of service tax charged on adventure tours. 924 Infrastructure projects worth Rs.1440.86 crore sanctioned during the 10th Plan. The government has already okayed plans to substantially upgrade 28 regional airports in smaller towns. The upgradation of national highways connecting various parts of India has opened up the way for the development of  budget hotels in India. 

10.5

GOVERNMENT OPEN SKY POLICIES The Government‘s Open Skies policy, permission for domestic airlines to commence

1.

2.

3.

10.6

What is the strategy and the capex plans of the company over the next 5-10 years? As mentioned earlier, hotels are capital intensive in nature having long gestation periods, which not only has a bearing on the free cash flows of hotels but also affects the return on capital employed (ROCE) for a period of time. So the bigger the capex plan, the more caution one should exercise. This criteria is favorable for established hotel chains. Economic cycles also determine earnings prospects (during a downturn, properties are cheaper and hotel chain generally tend to increase capacity). Moreover, in tough times like September 11, hotel stocks take a beating. It is at this time that the established players should be looked at, for when the concerns fade away; these will be the first ones to benefit from an economic upturn. A hotel chain should not be leveraged on any specific segment i.e. luxury or leisure. Though elasticity is lower at the premium end, when tourist flow is affected, this player could be the worst hit. Diversification reduces volatility in earnings, to an extent.

TAX BENEFITS TO HOTEL INDUSTRY 10.6.1 Direct Taxes Section 80IA: Infrastructure status for the hotel industry All new hotel projects will be able to avail the benefit of deductions of 100 per 

Hotels and other tourism related service providers who earn foreign exchange have been included as the 13th sector in the Service Export Promotion Council set up by the ministry of commerce, government of India. As such, they may be granted exemption to the extent of foreign exchange earned for the following services provided by the hotels, ie banquet rentals, rent-a-cab, dry cleaning services, health club or fitness centre services, beauty parlour services, internet cafe services, club/association service, business support services, business auxiliary services, management consultant services, renting of immovable property, etc. 10.6.3 Custom Duty The customs duty structure should be rationalised for hotels and restaurants in tune with the international practices, to enable the Indian service sector to compete with their international counterparts. This is specially so for import duty payable by small sized hotels and restaurants who do not earn substantial foreign exchange and therefore, are not eligible for any of the Export Promotion Capital Goods schemes. 10.6.4 Exise Duty Seeks excise duty exemption on supply of food preparations (as part of their food and beverage services) by hotels or restaurants to their by guest (staying in the relevant hotel).

Although there are signs of a favorable comeback for the industry, lenders have not returned to the go-go days of 80% loan-to-value and easy construction financing. What we see today is debt financing for acquisition and refinance projects. While there are a few exceptions, construction financing is not projected to return in earnest for another three to four years. Loan-to-value ratios are between 50% and 75%, with the sweet spot between 60% and 65%. Lenders want equity to remain in properties and debt service coverage around 1.40x. Interest rates have fallen between 7% and 8%, although lower rates are available on lowerleverage projects. Borrowers need to be financially strong, with all sponsors willing to personally guarantee the loan. While money is available for hotel projects, there is a smaller pool of lenders. Banks have failed, lenders have distressed assets on their books, and even those with performing loans don‘t have room to do additional hospitality deals. 1. Low leverage –  We expect loan-to-value ratios to remain low as lenders continue to be selective with their underwriting. This will lead to a significant decline in supply growth in the short-term. On refinance projects, many owners will be required to contribute additional equity in order to meet loan-to-value requirements. If additional cash isn‘t available to do this, borrowers will need to take on additional equity partners or work to convince their lenders to extend the terms on existing loans.

Public sector involvement in hotel projects is becoming increasingly common as the high cost of development and limitations on the availability of capital for new hotel investment limits the feasibility of conventional financing. The presence of a hotel property in a community may stimulate local economic activity by attracting new visitors and events as well as accommodating business travel in the region. As most communities desire the economic impact of group events and the spending of the visitors they attract, many are providing public subsidies to projects that are not feasible on a purely private basis. Public involvement in hotel development may be divided into two general categories: 1) Public/private partnerships, and 2) Public financings. In a public/private partnership, the hotel is typically owned and developed by the private partner, and public involvement takes the form of a public subsidy or ―bridging the gap‖ between the cost of constructing and financing a hotel project and the combination of equity and loans a private developer is able to secure for the project. In the category of public financing, the sponsoring municipality issues tax-exempt debt to cover the cost of  constructing and financing the hotel project, accessing the municipal bond market rather than conventional sources of hotel debt and equity. The net operating revenues of the hotel are pledged as the first source of funds for the repayment of the bonds.

Issue

Public/Private Partnerships

Public Financing

Ownership

A privately owned single purpose entity,typically a limited liability corporation ("LLC") holds title to the hotel. This owner is responsible for engaging the developer and operator.

Operation

A hotel management company is engaged to operate the hotel. It may be managed by a major hotel brand company (e.g. Marriott, Hilton, Hyatt or Starwood) or by a third party operator with a franchise

A publicly controlled entity, that may be an agency of the sponsoring municipality or a not-for-profit corporation, holds title to the hotel. Through the ownership entity, the sponsoring municipality is responsible for engaging the hotel developer and operator. Various forms of non-profit ownership are possible under IRS rules, including a "63-20 corporation" under Section 115 of the IRS code or a 501(c)(3) under IRS Ruling 57-128. A hotel management company is engaged to operate the hotel under a Qualified Management Agreement ("QMA") that conforms to Internal Revenue Service regulations. The maximum length of a QMA is 15 years, which is shorter than the term of 

Cost of funds

permanent Financing at the time hotel operations stabilize. Equity investment is obtained by selling stock in the LLC, and the development group may have a controlling interest in the LLC. In public/private partnerships a governmental entity may also provide an equity contribution to the project with little or no expectation of getting a cash return on that equity investment Interest rate levels on permanent debt may range from 8% to 10% in the current financial markets. Private equity investors may require from 10% to 15% cash return on equity.

income is not sufficient to secure enough nonrecourse debt to pay for the project. Consequently, the sponsoring municipality may provide credit enhancement. This usually involves some form of pledge to pay debt service in the event that hotel revenues are insufficient. The development team may be required to hold some subordinated debt, but this debt is typically less than 10% of the total financing. In today's financial markets, nonrecourse debt carries interest rate levels of 7% to 7.5%. Interest rate levels on the credit enhanced debt depends on the credit of the sponsoring municipality. A AAA-rated municipality may achieve an interest

income & the asstes

typically claim the residual project income from operations and the sale of the asset. Municipalities mass negotiate a share of project income in exchange for providing public subsidies. Developers often negotiate a "preferred return."

residual project income from operations and the sale of the asset.

Public/private partnerships in hotel development are more frequently used in smaller projects in which a reasonable amount of public equity investment can make the difference between a feasible and infeasible project. For many smaller projects the potential benefit of  new economic and fiscal impacts are modest and only justify a limited investment on the part of the sponsoring municipality. Public Private Partnerships in India In Hospitality Industry Emaar MGF has collaborated with Government of Uttranchal to Develop an International Standard Branded 5 Star Hotel and State of Art Convention Centre in Dehradun. Emaar MGF has tied up with Intercontinental Hotels Group for the management of the hotel and convention centre. The international standard up-market hotel comprising 

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CHAPTER – 13

Joint ventures are popping up everywhere in the hotel industry. The biggest players in the hotel industry are using the joint venture structure to seize opportunities for acquisitions and expansion. In recent months, Starwood Capital and Hersha Hospitality Management announced their joint venture to expand Hersha's hotel management platform, and Thayer Lodging Group and Jin Jiang Hotels formed a joint venture to acquire Interstate Hotels & Resorts. Joint Ventures Offer an Alternative to Traditional Financing - and Have Different Risks and Rewards. Using a joint venture model for hotel acquisitions offers the benefits of  increased access to capital, sharing of risks and rewards with a partner, access to greater resources, such as specialized staff, technology and expanded relationships. Particularly in the current economic environment where traditional lenders are reluctant to invest new capital in the hotel business, a joint venture with partners already active and committed to the hotel business offers an alternative means of financing potential future business expansion. Hotel investors hoping to seize buying opportunities for prime assets may find that the only way they can finance the cost of acquisition is by bringing in joint venture partners. However, a  joint venture also creates its own risks, risk s, and these risks are best b est be addressed by the th e parties part ies at the time the joint venture is formed, rather than waiting until problems develop later.

venture, but without that, the joint venture will not be able to act decisively when it is necessary to make decisions and take actions. 3. Decide All the Important Issues in Advance and in Writing - Create a thorough partnership or LLC agreement that provides the full details of each party's specific obligations, with timelines for performance, as well as specific steps that can be taken by the aggrieved party when the other party fails to fulfill its obligations. The partnership or LLC agreement is what the parties have to protect them when things go wrong, and the more detail there is in the document, the easier, faster and cheaper it will be to resolve any problems if and when they arise or, if need be, unwind the joint venture if it is not possible to continue. 4. Deal with Conflicts of Interests Up Front- If there are inherent conflicts between ventures (i.e., a manager/owner conflict) get those out on the table at the beginning and resolve them or resolve the method for resolution before engaging in any serious negotiations. For this process to work, the partners have to understand and agree that they cannot have secrets from each other on matters that involve the venture. If there are issues that likely will cause parties to distrust each other's motivations, set up a process that forces conversation and resolution within a specified time period. 5. Joint Venture Hotel Projects in India: Maharaja Hotel Resort Limited: Maharaja Hotels Resort Limited has an 

In the year 2000, hospitality in India was primarily dominated by the domestic players, namely Taj Group of Hotels, Oberoi Hotels & Resorts, ITC Hotels, and the government owned ITDC (The India Tourism Development Corporation Ltd) Hotels, with only a handful of international brands having a token presence in the form of marketing alliances in India. Also, while some of today's home-grown hotel chains like Leela, Bharat Hotels, Sarovar and Asian Hotels were around at that time, they were for the most part single-asset owners. There was a perception that India was a tough place for foreign companies to do business in and that a strong local presence with excellent contacts was required to be able to penetrate this market. Additionally, several businesses and consequently most international brands were more focused on fast-growing markets in the Middle East and China, which offered more opportunities for growth at that time. The economic downturn, at the beginning of the decade, led to a paradigm shift among these businesses as they could no longer depend solely on the more mature economies and they started gauging the vast opportunities that a country like India had to offer. The fact that India was less impacted by the global downturns - one at the beginning of the decade and the other at the end of it - as compared to the rest of the world has emphatically proven the inherent strength of the Indian economy and its consumer base of over a billion people. As Indians travelled more frequently around the world, they experienced international hotel brands first-

In the past ten years most commodity prices have gone up. Development costs have always been a challenge for anyone looking to build a hotel in India. The land cost has increasingly become a significant portion of the development cost for any project, accounting for 30-50% of the total development cost, while the same equates to about 15-20% internationally. The high density of development within Indian cities and the shortage of vacant land parcels suitable for hotels had led to aggressive bidding wars among prospective buyers and forced prices upwards. With the increased pace of construction activity around the world, especially in the Middle East and China, the price of construction material such as steel and concrete increased steeply in recent years. While this was offset by sourcing furniture and fixtures from China by several recent hotel projects, the additional concern regarding the quality of Chinese goods is one that now needs to be addressed. HVS observes that hotels built in India very often exceed the brand specifications that might exist for these brands internationally and that developers often tend to spend more money on their hotels than required. A typical mid-market business hotel in the US or Europe, thus, does not cost nearly as much to construct as it does in India. The lengthy cumbersome process of obtaining licenses and permits and construction delays serves to increase costs even more. Given the time and expense involved in working through all these issues and finally opening a hotel, developers who managed to do so were not

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Increased import of material from global sources, as long as quality goods are available Expected rationalization of costs, with government intervention in relaxing the license process Expected rationalization of per key development costs, with entry of brands across all positioning

The 4 Ps of marketing are Product, Price, Place, and Promotion. Think of each of these as a variable which you control. The idea is to set these variables in such a way so that sales will take place. You cannot "make" a customer pull out her credit card, but you can certainly help her in coming to a decision by setting the "right" price, the retail location, the level of  advertising and even product attributes such as color or perceived quality. You control everything but the customer herself. These variables are all interdependent. Taken together, they constitute a certain mix. PRODUCT: In the hospitality industry the service that the hotel provides and the other products that the hotel provides are the facilities the rooms the restaurants the hotel has It's fully refurbished guest rooms and highly personalized services, make you feel comfortable and cared for, miles away from home the product that the armadas is into is always to keep the guests happy who enter and leave their premises PRICE Price is not just the sticker price or the price invoiced. It goes deeper. the Ramada is one of the only 5 star hotels in Goa that has prices that even a common man can avail of on grand occasions they have a price tag which varies for different persons requirements may from any walk of life Ramada is a good price package that fits every ones budget due to which they do

Even Before they seek' and the advent of social networking has given a new power to customers like none other before. Key Game Changers: Broadening of the playing field with entry of many domestic and international hotel chains Well educated, travelled and experienced customer base Evolution of the brand from a one-way communication stream to a two-way one that accommodates customer needs and experiences Consistent delivery of brand promises and customer experiences Marketing equations changing in favour of the customer with online channels like Web 2.0 and social networking 

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STRENGHT India has a rich cultural heritage. The "unity in diversity" tag attracts most tourists. Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. India's share in international tourism and hospitality market is expected to increase over the long-term. Manpower costs in the Indian hotel industry are one of the lowest in the world. This provides better margins for Indian hotel industry. India offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already exists and has potential grow. WEAKNESSES 

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The lack of adequate recognition for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace. High tax structure in the industry makes the industry worse off than its international equivalent. In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%.

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that are being developed in metro suburbs and secondary markets. Mixed-use development projects that include retail and commercial space have also gained momentum in the last 24 months and will continue to be an attractive option. This provides a unique opportunity for hospitality projects. Also the new concept, which is going to gain importance, is that of budget hotels. Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fueling hotel room rates across India. According to estimates demand is going to exceed supply by at least 100% over the next 2 years. It is forecasted to be the number 3 market in the world by 2015 for hospitality and tourism. Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays. For international tourists the peak season for arrival is between September to March when the climatic conditions are suitable where as the national tourist waits for school holidays, generally the summer months. In the long-term the hotel industry in India has latent potential for growth. This is because India is an ideal destination for tourists as it is the only country with the most diverse topography. For India, the inbound tourists are a mere 0.49% of the global figures. This number is expected to increase at a phenomenal rate thus pushing up the demand for the hotel industry. The share of convention or meetings tourism is miniscule in India in comparison to international standards, which accounts for over 20.0% of all international arrivals.

Luxury

First Class

Existing

Supply

Proposed

Inc in Five yrs

Agra

1,439

510

35%

41%

11.8%

22.0%

52.5%

13.7%

Pune

2,672

5,196

194%

67%

14.5%

31.7%

34.1%

19.7%

Bengaluru

5,597

9,819

175%

65%

16.9%

37.7%

22.7%

15.5%

653

1,482

227%

76%

11.1%

22.1%

54.7%

12.1%

3,806

5,995

158%

72%

24.1%

28.0%

22.3%

13.7%

11,018

20,021

182%

75%

26.7%

31.4%

25.4%

13.9%

Goa

3,288

1,736

53%

41%

18.2%

49.1%

24.8%

7.9%

Hyderabad

3,782

5,302

140%

63%

29.4%

28.3%

18.2%

20.0%

Jaipur

2,472

2,664

108%

77%

8.2%

61.3%

22.5%

8.0%

Kolkata

1,520

3,481

229%

51%

28.0%

37.2%

34.9%

0.0%

Mumbai

9,877

7,477

76%

60%

42.5%

22.6%

20.6%

14.4%

Other Cities

14,759

23,427

159%

65%

2.3%

28.7%

47.5%

20.5%

Total

62,404

89,449

143%

67%

18.0%

32.0%

31.0%

16.0%

Cities

Chandigarh Chennai Delhi NCR

Develop ment

Mid-Market Budget Extended Stay

THREATS Event risk: Dependency on foreign tourism can be a double-edged sword as travel decisions are based on global patterns and events that happen elsewhere can have serious impact the performance. Increasing competition: Global hospitality majors like the Four Seasons, Shangri-La 

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image of India as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism industry. Manual Bach End: The majority of the operations data in a hotel is filed in manual log books or is not tracked. Although most reputed chains have implemented IT systems for property management and reservations. Human Resource Development: The sector has been focusing on the development of  white collar jobs as opposed to blue collar jobs, leading to a shortage of blue collar employees, which might pose various threats to the industry. Shortage of Skilled Labours: The lack of a quality workforce and low retention levels of good professionals at different skill levels is hampering the growth of the hospitality industry.

The hotel industry in India is going through an interesting phase. One of the major reasons for the increase in demand for hotel rooms in the country is the boom in the overall economy and high growth in sectors like information technology, telecom, retail and real estate. Rising stock market and new business opportunities are also attracting hordes of foreign investors and international corporate travellers to look for business opportunities in the country.

The popularity of India as a major medical destination has also aided growth in the hotel industry in cities such as Delhi and Gurgaon. Many people from the developed countries come to India for the rejuvenation promised by yoga and Ayurvedic treatments. Furthermore, a nice blend of top-class medical expertise at attractive prices is enabling more Indian corporate hospitals to get patients from the developed nations. Most common treatments for which foreigners come to India are heart surgery, knee transplant, cosmetic surgery and dental care. Hosting of international events Events such as trade fairs, exhibitions, and sports events tend to bring about higher tourist movement mutuating growth in Hotel Industry. International events held in the country lead to higher inbound hospitality

CHAPTER – 19

Guest Feedback Program The best way to know how well the hotel is doing is to ask guests. The Grand Five Star Hotel will provide evaluation tool that our properties can easily administer to our guests, in order to have most effectively measure performance and engage in continuous quality improvement. Our guest feedback program will provide immediate results, so that hotel can take swift corrective action.

Quality Control Services The Grand Five star Hotel will looks at operation of hotel from the guest perspective. It will follow the path of the guest from the first encounter via phone or website through the entire experience of their stay. The approach includes meaningful customer service decisions.

Safety Audit The loss prevention specialists will be trained to evaluate a property for total loss prevention

CHAPTER – 20

In the Indian hospitality industry the major players are Indian Hotels, EIH, ITC hotels, Hotel Leela Ventures, Bharat Hotels and Asian Hotels, ITDC and Orient Hotels Ltd. The booming industry has attracted many international players as well. A number of global players are already well established in India. These include Hilton, Shangri-La, Radisson, Mariott, Meridian, Sheraton, Hyatt, Holiday Inn, InterContinental and Crown Plaza. The country has been flooded by some of the world's leading hotel brands. New brands such as Amanda, Satinwoods, Banana Tree, Hampton Inns, Scandium by Hilt and Mandarin Oriental are planning to enter the Indian hospitality industry in joint ventures with domestic hotel majors. International Hotel Brands

Brand

No. of 

Target

hotels

date

Carlson

50

2012

Four Seasons

6

2012-13

DELUXE FIVE STAR HOTELS Hotels

Description

The Oberoi

The Oberoi is a modern, luxury hotel, the best of its kind in India. Guests here can be assured of personal service and every 21st century convenience for a comfortable and relaxing stay. Oberoi Hotels have achieved different award in hospitality.

Galaxy Hotel

Galaxy hotel is located in the commercial hub of Gurgaon in the National Capital Region, New Delhi. Placed conveniently off NH 8, Galaxy hotel is a half mall and half hotel, which offer a budget accommodation in Gurgaon, for business and leisure travelers. Well designed, Galaxy is among five star hotels in Gurgaon that is unique in concept and service.

Hyatt Regency

Hyatt Regency Delhi has 508 guest rooms that are tastefully decorated. The guest rooms at Hyatt Regency New Delhi have been divided into Presidential Suites, Executive Suites, Regency Deluxe Suites and Terrace Suites. As well as the Regency Club rooms, the Pool-facing rooms and the Hyatt guest rooms at the Hyatt Regency Hotel.

20.1 OBEROI GROUP OF HOTELS The Oberoi Group, founded in 1934, operates 27 hotels and three cruisers in five countries under the luxury ‗Oberoi‘ and five-star ‗Trident’ brands.‘ The Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters. ‗Oberoi Hotels & Resorts‘ is synonymous the world over for providing the right blend of  service, luxury and quiet efficiency. Internationally recognised for all-round excellence and unparalleled levels of service, ‗Oberoi Hotels & Resorts‘ has received innumerable awards and accolades. A distinctive feature of The Group‘s hotels is their highly motivated and well trained staff that provides the kind of attentive, personalised and warm service that is rare today. The Group‘s new luxury hotels have established a reputation for redefining the paradigm of luxury and excellence in service amongst leisure hotels around the world. Trident hotels are five-star hotels that have established a reputation for excellence andare acknowledged for offering quality and value. These hotels combine state of the art facilities with dependable service in a caring environment, making them the ideal choice for business and leisure travellers. Recognising the importance of quality training in hospitality management, The Oberoi Group Established The Oberoi Centre of Learning and Development in New Delhi in 1966. The Group is committed to employing the best environmental and ecological practices in technology, equipment and operational processes. The Oberoi Group also supports philanthropic activities that range from education to assistance for the mentally and physically challenged. The Group is also a keen

20.1.2 Budding Entrepreneur In 1934, Mr. Oberoi acquired his first property, The Clarkes Hotel, from his mentor by mortgaging his wife's jewellery and all his assets. Four years later, he signed a lease to take over operations of the five hundred rooms Grand Hotel in Calcutta that was on sale following a cholera epidemic. With his customary confidence and sheer determination to succeed, he was able to convert this hotel into a highly profitable business venture. Over several years, Mr. Oberoi had purchased shares in Associated Hotels of India (AHI), which owned Cecil and Corstophans hotels in Shimla, Maidens and Imperial hotels in Delhi and a hotel each in Lahore, Murree, Rawalpindi and Peshawar. In 1943, Mr. Oberoi acquired controlling interest in AHI. He thus became the first Indian to run the country's largest and finest hotel chain. In the tumultuous years just prior to Indian independence, Mr. Oberoi met and intimately interacted with the would-be leaders of Free India, all of whom were, at one time or other, guests at his hotels.

20.1.3 International Pioneer Having consolidated his early ventures, Mr. Oberoi became the first Indian hotelier to enter into an agreement with an internationally renowned hotel chain, to open the first modem, five-star hotel in the country. The Oberoi Inter Continental, in New Delhi opened in 1965.The I-Con, as it became popularly known, offered facilities that no other hotel in the country matched and was India's first luxury hotel. This achievement was enhanced with the opening of the 35-storey Oberoi Sheraton in Bombay, in 1973. Mr. Oberoi was the first Indian to work in association with international chains to woo

hotel to its original grandeur and later acquired it. The Oberoi Cecil in Shimla, built in the early 20th century, reopened in April 1997 after extensive and meticulous renovation. 20.1.4 Awards and Honours In 1943, Mr. Oberoi was conferred the title of Rai Bahadur by the British Government in recognition of his services to the Crown. Thereafter, Mr. Oberoi won acclaim and received several national and international awards including admission to the Hall of Fame by the American Society of Travel Agents (ASTA) and Man of The World award by the International Hotel Association (IHA), New York. He was presented the Order of The Republic, First Class by the President of Egypt. He got an Honorary Doctorate of Business Administration from the International Management Centre, Buckingham, UK. Newsweek named him one of the Elite Winners of 1978. The PHDCCI Millennium award in 2000 was presented in recognition of his entrepreneurial and business success. In 2001, the Government of India accorded him the Padma Bhushan. 20.1.5 Globalisation of The Oberoi Group To place The Oberoi Group on the world map, Mr. Oberoi exported management expertise to Australia, Egypt and Singapore, where The Oberoi Group took charge of the management of  existing luxury hotels. The success of Oberoi Hotels & Resorts overseas, in the face of global competition, greatly enhanced the image of The Group Today, Oberoi Hotels & Resorts in fudonesia, Egypt, Mauritius, Saudi Arabia and India add value and distinction to their host countries. 20.1.6 Mission & Vision Of Oberoi Group Of Hotels Our Guests

20.1.7 Vision Of Oberoi Group Of Hotels We see an organization which aims at leadership in the hospitality industry by understanding its guests, and designing and delivering products and services which enable it to exceed their Expectations. We will always demonstrate care for our customers through anticipation of their needs, attention to detail, distinctive excellence, warmth and concern. We see a lean, responsive organization where decision making is encouraged at each level and which accepts change. It is committed and responsive to its guests and other stakeholders. We see a multi-skilled workforce, which consists of team players who have pride of ownership, translating organizational vision into reality. We see a multi-skilled workforce, which consists of team players who have pride of ownership, translating organizational vision into reality. We see an organization where people are nurtured through permanent learning and skill improvement, and are respected, heard and encouraged to do their best. Oberoi is recognized as best practice for training and developing its people. We see a more multinational workforce which has been exposed to different cultures, problems and situations and can use its experiences to enrich the local employees whether in India or overseas. We see user-friendly technology enhancing value for our customers and helping our personnel by making information more accessible. We see an organization which is conscious of its role in the community, supporting social needs 

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Business Hotels Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of  luxury, warm service and quiet efficiency. Internationally recognised for all-round excellence and unparalleled levels of service, the business travellers acknowledge Oberoi Hotels & Resorts as amongst the finest. This was reaffirmed recently in Condé Nast Traveler, Business Travel Awards, a readers‘ poll of business travellers, in which Oberoi Hotels & Resorts was rated the best hotel chain in the world (outside the United States). The Oberoi, New Delhi The Oberoi, Mumbai The Oberoi, Bangalore The Oberoi Grand, Kolkata

Leisure Hotels Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of  luxury, warm service and quiet efficiency. Luxury as a unique, memorable and personal experience is core to the Oberoi philosophy. It encompasses every element of a guest‘s stay at the Oberoi hotels that creatively combine breathtaking locations, luxurious environs and the best of modern amenities with personalised and warm service delivered with genuine care. The design and architecture of the hotels, is inspired by the historical style of the region. This coupled with luxurious interiors that replete with local arts and crafts, to menus that offer an extensive selection of local specialties and classical and folk dance and music performances. The Oberoi Amarvilas, Agra The Oberoi Rajvilas, Jaipur The Oberoi Udaivilas , Udaipur The Oberoi Vanyavilas, Ranthambhore Wildflower Hall, Shimla in the Himalayas The Oberoi Cecil,

The group is committed to employing the best environmental and ecological practices in technology, equipment and operational processes. The Oberoi group also supports hilanthropic activities that range from education to assistance for the mentally and physically challenged. The group is also keen contributor to the conservation of nature and of cultural heritage.

20.1.9 SWOT ANALYSIS OF OBEROI & TRIDENT Strengths Cost advantage Asset leverage Effective communication High R&D Innovation Online growth Loyal customers Market share leadership Strong management team Strong brand equity Weaknesses Bad communication Diseconomies to scale Over leveraged financial position Low R&D Low market share No online presence Not innovative          

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Competition Cheaper technology Economic slowdown External changes (government, politics, taxes, etc) Exchange rate fluctuations Lower cost competitors or imports Maturing categories, products, or services Price wars

20.1.10 SHAREHOLDING PATTERN OF OBEROI GROUP OF HOTELS (A) Shareholding of Promoter and Promoter Group

(1) Indian Individuals / Hindu Undivided Family

5

26,352,663

26,352,663

4.61

4.61

-

-

Bodies Corporate

9

171,475,834

171,475,834

30.02

30.00

-

-

Sub Total (2) Foreign Total shareholding of  Promoter and Promoter Group (A)

14

197,828,497

197,828,497

34.63

34.61

-

-

14

197,828,49 7 197,828,497 (B) Public Shareholding

34.63

34.61

-

-

(1) Institutions Mutual Funds / UTI Financial Institutions /  Banks Insurance Companies Foreign Institutional Investors

Sub Total (2) Non-Institutions Bodies Corporate Individuals Individual shareholders

11

943,912

905,587

0.17

0.17

-

-

43

933,446

908,106

0.16

0.16

-

-

9

72,923,139

72,923,139

12.77

12.76

-

-

50

11,888,521

11,881,502

2.08

2.08

-

-

113

86,689,018

86,618,334

15.18

15.17

-

-

211,220,849 -

211,181,248 -

36.98 -

36.95 -

-

-

1,816

Balance Sheet of Oberoi Group Of Hotels

(fig In Cr.)

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

114.31

78.59

78.59

78.59

78.59

Equity Share Capital

114.31

78.59

78.59

78.59

78.59

Share Application Money

0.00

0.00

0.00

0.00

0.00

Preference Share Capital

0.00

0.00

0.00

0.00

0.00

2,241.24

1,103.25

1,100.79

985.39

851.33

232.25

235.25

238.25

241.25

244.25

2,587.80

1,417.09

1,417.63

1,305.23

1,174.17

Secured Loans Unsecured Loans

823.97 0.00

1,174.54 85.00

1,019.33 0.00

800.87 12.00

693.82 97.81

Total Debt

823.97

1,259.54

1,019.33

812.87

791.63

3,411.77

2,676.63

2,436.96

2,118.10

1,965.80

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

2,619.69

2,486.09

1,828.99

1,726.87

1,497.64

563.38

488.05

432.92

390.63

369.11

2,056.31

1,998.04

1,396.07

1,336.24

1,128.53

127.59

174.46

586.85

425.16

375.83

Sources Of Funds

Reserves Revaluation Reserves

Networth

Total Liabilities

Application Of Funds Gross Block Less: Accum. Depreciation

Net Block Capital Work in Progress

Profit & Loss of Oberoi Group Of Hotels

(fig in Cr.)

Mar '11 12 mths

Mar '10 12 mths

Mar '09 12 mths

Mar '08 12 mths

Mar '07 12 mths

968.60

774.13

888.67

1,079.87

938.97

0.00

0.00

0.00

0.00

0.00

Net Sales

968.60

774.13

888.67

1,079.87

938.97

Other Income

161.57

130.51

179.62

60.86

98.84

0.00

0.00

0.00

0.00

0.00

1,130.17

904.64

1,068.29

1,140.73

1,037.81

0.00

0.00

0.00

0.00

0.00

72.69

59.45

63.67

63.51

53.29

Income Sales Turnover Excise Duty

Stock Adjustments

Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses

318.88

244.80

250.60

232.81

196.46

201.58

170.79

153.57

160.55

142.21

Selling and Admin Expenses

159.77

131.65

153.21

169.47

157.73

47.62

40.04

37.23

41.58

44.49

0.00

0.00

0.00

0.00

0.00

800.54

646.73

658.28

667.92

594.18

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Operating Profit

168.06

127.40

230.39

411.95

344.79

PBDIT

329.63

257.91

410.01

472.81

443.63

Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses

Cash Flow of Oberoi Group Of Hotels

(fig in Cr.)

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

87.00

88.99

273.26

349.84

257.16

84.24

54.93

143.69

241.19

182.00

-190.17

-271.39

-264.04

-231.82

-252.31

686.44

188.11

136.05

-33.52

56.41

580.51

-28.35

15.69

-24.15

-13.90

13.77

42.12

26.42

50.57

64.47

594.28

13.77

42.12

26.42

50.57

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Face Value

2.00

2.00

2.00

2.00

2.00

Dividend Per Share

0.90

1.20

1.20

1.80

1.40

Operating Profit Per Share (Rs)

2.94

3.24

5.86

10.48

8.77

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

Key Financial Ratio of Oberoi Group Of Hotels

Investment Valuation Ratios

Current Ratio

2.42

0.89

1.24

0.69

1.04

Quick Ratio

2.31

1.20

1.14

0.88

1.01

Debt Equity Ratio

0.35

0.89

0.86

0.76

0.85

Long Term Debt Equity Ratio

0.35

0.89

0.86

0.68

0.84

Interest Cover

1.64

1.88

3.19

5.79

3.59

Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax

0.35

1.07

0.86

0.76

0.85

2.21

2.06

3.85

6.43

4.09

1.98

2.24

3.72

4.54

3.54

70.33

25.75

--

--

32.80

8.58

8.09

8.60

10.02

10.06

Investments Turnover Ratio

70.33

60.24

--

32.47

5,589.10

Fixed Assets Turnover Ratio

0.37

0.31

--

--

0.80

Total Assets Turnover Ratio

0.31

0.29

--

0.58

0.55

Asset Turnover Ratio

0.37

0.31

0.49

0.63

0.63

Average Raw Material Holding

--

--

--

--

--

Average Finished Goods Held Number of Days In Working Capital

--

--

--

--

0.09

231.45

58.54

42.22

-1.28

15.75

--

--

--

--

--

Debt Coverage Ratios

Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio

Profit & Loss Account Ratios Material Cost Composition

20.2 LEELA HOTELS Incorporated in 1981 to set up and operate 5-star hotels, Hotel Leela Venture entered into a Collaboration with Penta Hotels, UK, which was subsequentl transferred to Kempinski hotels, European chain of 5-star deluxe hotels, owned by Lufthansa, the German airline. The Company entered into collaboration agreement with Penta Hotels Ltd. (Penta) for a period of  10 years for sales, marketing & technical know-how. Penta also agreed to provide full marketing support to the hotel including selling of the hotel by the 3 airline partners of Penta viz. Lufthansa, Swissair & British Airways. Hotel Leela Venture Ltd. has appointed Mr. V.L. Ganesh as the Chief Financial Officer of the Company with effect from November 01, 2006. 20.2.1 VISSIONS & MISSIONS OF LEELA GROUP OF HOTEL THE LEELA VISION Innovation – Excellence – Perfection The three pillars on which The Leela Group has built its reputation are Innovation, Excellence, and Perfection. They also represent the three faces of modern India. World class technology, great tradition enriched over the centuries and the obsessive desire to be hospitable to global travellers. THE LEELA MISSION To sustain and surpass excellence in service, ambience and performance hall marks that distinguishes The Leela Group. . The strategic locations, individuality, architectural aesthetics, lush greens and the intrinsic Indian culture holds true for every Leela property. Reflecting thereby 'The

Balance Sheet of Hotel Leela Ventures

(fig in Cr.)

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

77.57

75.57

75.56

75.56

74.06

Equity Share Capital

77.57

75.57

75.56

75.56

74.06

Share Application Money

0.00

0.00

0.00

0.00

0.00

Preference Share Capital

0.00

0.00

0.00

0.00

0.00

812.05

752.38

626.77

642.08

610.85

Revaluation Reserves

1,213.26

1,226.20

1,237.69

212.53

216.28

Networth

2,102.88

2,054.15

1,940.02

930.17

901.19

Secured Loans

3,307.40

2,353.48

1,818.63

1,291.12

591.72

495.74

525.18

630.89

744.54

361.07

Total Debt

3,803.14

2,878.66

2,449.52

2,035.66

952.79

Total Liabilities

5,906.02

4,932.81

4,389.54

2,965.83

1,853.98

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

4,622.39

4,145.53

3,833.45

2,604.31

1,795.98

519.58

476.86

398.46

336.38

278.77

Net Block

4,102.81

3,668.67

3,434.99

2,267.93

1,517.21

Capital Work in Progress

1,598.33

1,221.19

934.54

405.77

193.60

46.14

46.19

46.24

0.28

59.92

Sources Of Funds

Reserves

Unsecured Loans

Application Of Funds Gross Block Less: Accum. Depreciation

Investments

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

526.23

430.12

452.23

514.58

380.86

0.00

0.00

0.00

0.00

0.00

526.23

430.12

452.23

514.58

380.86

25.30

32.53

119.12

44.82

71.55

0.00

0.00

0.00

0.00

0.00

551.53

462.65

571.35

559.40

452.41

Raw Materials

22.37

21.43

20.23

21.50

17.87

Power & Fuel Cost

44.46

43.95

44.69

41.40

26.97

Employee Cost Other Manufacturing Expenses

121.43

100.53

94.77

88.49

57.02

51.34

43.17

39.87

45.14

33.09

Selling and Admin Expenses

103.65

74.73

77.84

68.17

49.11

13.91

11.89

13.24

12.48

6.64

0.00

0.00

0.00

0.00

0.00

357.16

295.70

290.64

277.18

190.70

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

Operating Profit

169.07

134.42

161.59

237.40

190.16

PBDIT

194.37

166.95

280.71

282.22

261.71

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure

Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

57.62

64.64

193.45

223.30

189.70

68.80

88.93

267.93

117.70

216.78

-845.07

-601.97

-596.98

-910.44

-124.49

818.84

495.09

63.85

1077.56

-244.28

42.57

-17.95

-265.19

284.81

-151.99

13.48

31.43

295.58

10.77

162.69

56.05

13.48

30.39

295.58

10.70

Key Financials of Hotel Leela Ventures Mar'11

Mar '10

Mar '09

Mar '08

Mar '07

Face Value

2.00

2.00

2.00

2.00

2.00

Dividend Per Share

0.15

0.20

0.40

0.50

0.45

Operating Profit Per Share (Rs)

4.36

3.56

4.28

6.28

5.14

13.57

11.38

11.97

13.62

10.29

Investment Valuation Ratios

Net Operating Profit Per Share (Rs)

Debt Equity Ratio

4.28

3.48

3.49

2.84

1.39

Long Term Debt Equity Ratio

3.90

3.32

3.42

2.79

1.34

Interest Cover

2.21

4.02

8.53

7.38

5.89

Total Debt to Owners Fund

4.28

3.48

3.49

2.84

1.39

Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax

2.86

4.90

8.74

7.16

5.53

2.57

4.22

7.18

5.55

5.19

Inventory Turnover Ratio

47.63

62.76

59.78

76.78

74.47

Debtors Turnover Ratio

12.07

12.39

12.90

13.59

12.36

Investments Turnover Ratio

47.63

62.76

59.78

76.78

74.47

Fixed Assets Turnover Ratio

0.11

0.10

0.12

0.20

0.21

Total Assets Turnover Ratio

0.11

0.12

0.14

0.19

0.23

Asset Turnover Ratio

0.11

0.10

0.12

0.20

0.21

Average Raw Material Holding

--

--

--

--

--

Average Finished Goods Held

--

--

--

--

--

108.59

-2.72

-20.88

204.18

78.70

4.25

4.98

4.47

4.17

4.69

23.40

17.75

--

--

--

7.69

3.91

3.36

2.30

2.43

Debt Coverage Ratios

Management Efficiency Ratios

Number of Days In Working Capital

Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition

20.3 TARRIF RATES OF DIFFERENT HOTELS IN GURGAON Room Type No. Of Rooms Deluxe Luxury Premier Room Deluxe Suite Premier Suite Presidential Suite

Oberoi Hotel 202 30000.00 34000.00 38000.00 70000.00 150000.00 300000.00

Hyatt 508 15350.00 15350.00 18750.00 18750.00 26250.00 27250.00

Trident Hotel 136 19000.00 23000.00 26000.00 30000.00 48000.00 --

Bristol Hotel 84 9999.00 --12999.00 25999.00 --

24500.00 55000.00 80000.00 200000.00

Proposed Hotel 370 19500.00 ------

The Leela

Proposed Hotel

The Leela 322 22500.00

20.4 PROXIMITY COMPARISION WITH PROPOSED HOTEL Locations International Airport New Delhi Railway Station From Nearest Metro Station

Oberoi Hotel

Hyatt

Trident Hotel

Bristol Hotel

12 kms

17 Kms

16 kms

23 kms

13 kms

25 kms

22 Kms

16 Kms

32 Kms

33 Kms

26 Kms

28 Kms

10Kms

8 Kms

17 Kms

8 kms

17 kms

3 kms

20.5 COMPARISON OF SERVICES RENDERED IN HOTELS IN GURGAON Oberoi Hotel

Hyatt

Trident Hotel

Bristol Hotel

The Leela

Proposed Hotel

Gym Spa

























Fitness center Baby Sitting Services Meeting & Board Rooms Lounge with Nightly Live Music Baby Play Area Internet Access Tennis Court Shopping Complex Pool Bar Banqueting Facilities Swimmimg Pools Visit to Taj Facility Welcome ammenities City Sight Seeing Tours Laundry Services Business Centres & services Parking Services Wheel Chair Facility Doctors on Call`













NA





NA



NA















NA NA

NA NA

NA



NA

NA NA

















NA

NA 







NA NA NA

NA NA NA





NA NA

























NA NA NA

NA NA

NA NA NA

 

NA NA



NA NA NA











































NA NA NA



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





 

CHAPTER – 21

21.1 BRIEF OF JV AGREEMENT (fig in lakhs) Actual Value of Land

6000.00

Amt already paid

400.00

Amount yet to be paid

5600.00

Total Realisable Value to US develpoer

Fig in Lakhs

Cost of One Room

146.50

No of rooms

370.00

Area of One Room Stage 1: Construction will start when 70% of total rooms are sell out Less: Value paid to Land Owner is 60%of vale in JV agreement Net accumulated cash at First Stage Sell of next 30% of Rooms Less: Value paid to Land owner is 40% of value of Land in JV agreement Net accumulated cash at Second Stage

Sq. ft

402.00

259

37943.50

i.e 60% of 300Cr

18000.00 19943.50

111

16261.50

i.e 40% of 300 Cr

12000.00 4261.50

21.2 INCOME GENERATION SHEET: (Rs. In Lacs) HOTEL CAPACITY

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year7

Year 8

Year 9

Year 10

2015-16

2016-17

2017-18

2021-22

2024-25

2018-19

2019-20

2020-21

2022-23

2023-24

In terms Of Rooms

370

370

370

370

370

370

370

370

370

370

Rooms Ready to Use

370

370

370

370

370

370

370

370

370

370

Occupancy

40%

40%

40%

40%

40%

40%

40%

40%

40%

40%

Occupied No Of Rooms in a day

148

148

148

148

148

148

148

148

148

148

0.195

0.234

0.281

0.337

0.404

0.485

0.582

0.699

0.838

1.006

28.860

34.632

41.558

49.870

59.844

71.813

86.175

103.411

124.093

148.911

865.800

1038.960

1246.752

1496.102

1795.323

2154.387

2585.265

3102.318

3722.782

4467.338

10389.60

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

53608.05

Per Day per Room (Rs.) Per day Revenue Generation (Rs.) Per Month Revenue Generation (Rs.) Per Year Revenue Generation from Rooms (Rs.)

21.3 EXPENSE SHEET : 80 Grand Five Star Deluxe Hotel

Project Report of The

(Amoun in Lacs)

Net Services Provided Franchisee Fees Managemnt & Staff Salaries Daily Consumables

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year7

Year 8

Year 9

Year 10

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

2023-24

2024-25

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

53608.05

10389.6 1142.856

1371.427

1645.713

1974.855

2369.826

2843.791

3412.55

4095.06

4914.072

5896.886

1038.96

1246.752

1496.102

1795.323

2154.387

2585.265

3102.318

3722.782

4467.338

5360.805

519.48

623.376

748.0512

897.6614

1077.194

1292.632

1551.159

1861.391

2233.669

2680.403

Reserves for Maintainence

415.584

498.7008

598.441

718.1292

861.755

1034.106

1240.927

1489.113

1786.935

2144.322

Repais & Maintainance

1558.44

1870.128

2244.154

2692.984

3231.581

3877.897

4653.477

5584.172

6701.007

8041.208

Insurance Exp

311.688

374.0256

448.8307

538.5969

646.3162

775.5795

930.6954

1116.834

1340.201

1608.242

Elecricity Exp

415.584

498.7008

598.441

718.1292

861.755

1034.106

1240.927

1489.113

1786.935

2144.322

License & Taxes

311.688

374.0256

448.8307

538.5969

646.3162

775.5795

930.6954

1116.834

1340.201

1608.242

Profit Before Tax

4675.32

5610.384

6732.461

8078.953

9694.744

11633.69

Less: Tax @ 30%

1402.596

1683.115

2019.738

2423.686

2908.423

3490.108

Profit After Tax

3272.724

3927.269

4712.723

5655.267

Net Profit to Land Owner

1669.089

2002.907

2403.489

2884.186

3461.023

4153.228

4983.874

5980.649

7176.778

8612.134

Net Profit to Developer

1603.635

1924.362

2309.234

2771.081

3325.297

3990.356

4788.428

5746.113

6895.336

8274.403

81 Grand Five Star Deluxe Hotel

6786.32

8143.585

13960.43 4188.129

9772.302

16752.52 5025.755

11726.76

20103.02 6030.906

14072.11

24123.62 7237.087

16886.54

Project Report of The

21.4 CASH FLOW

(Amoun in Lacs)) Year 1

FINANCIAL YEAR ENDED

2012-13

2013-14

2014-15

Year 2

Year 3

Year 4

Year 5

Year 6

Year7

Year 8

Year 9

Year 10

2015-16

2016-17

2017-18

2018- 19

2019-20

2020-21

2021-22

2022-23

2023-24

37227.82

44673.38

RECEIPT NET INCOME from summary SALES PROCEEDS

0.00

0.00

0.00

10389.60

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37943.50

0.00

16261.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

PROMOTER CONTRIBUTION

0.00

0.00

15000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

UNSECURED LOAN

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

37943.50

0.00

31261.50

10389.60

12467.52

GROSS RECEIPT

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

EXPENDITURE LAND

18000.00

0.00

12000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

CONSTRUCTION COST

0.00

19336.20

19336.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

STAFF SALARIES

0.00

0.00

0.00

1038.96

1246.75

1496.10

1795.32

2154.39

2585.26

3102.32

3722.78

4467.34

FRANCHISE FEES

0.00

0.00

0.00

1142.86

1371.43

1645.71

1974.86

2369.83

2843.79

3412.55

4095.06

4914.07

CONSUMABLES ( soaps, shampoo, etc)

0.00

0.00

0.00

519.48

6 23.38

748.05

897.66

1077.19

1292.63

1551.16

1861.39

2233.67

REPAIRS & MAINTANANCE

0.00

0.00

0.00

1974.02

2368.83

2842.59

3411.11

4093.34

4912.00

5894.40

7073.28

8487.94

INSURANCE EXP

0.00

0.00

0.00

311.69

374.03

448.83

538.60

646.32

775.58

930.70

1116.83

1340.20

ELECTRICITY EXPENSES

0.00

0.00

0.00

415.58

498.70

598.44

718.13

861.75

1034.11

1240.93

1489.11

1786.94

LICENSE & TAXES

0.00

0.00

0.00

311.69

374.03

448.83

538.60

646.32

775.58

930.70

1116.83

1340.20

REPAYMENT OF LOAN - PRINCIPAL

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

REPAYMENT OF LOAN - INTEREST

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

TOTAL EXPENDITURE

18000.00

19336.20

31336.20

5714.28

6857.14

8228.56

9874.28

11849.13

14218.96

17062.75

20475.30

24570.36

NET CASH GENERATION

19943.50

-19336.20

-74.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

ACCUMULATED CASH GENERATION

82 Grand Five Star Deluxe Hotel

Project Report of The

21.5 PROFITABILITY PROJECTION Projection

(Amoun in Lacs)

Projection

Projection

Projection

Projection

2013-14

2014-15

2015-16

2016-17

0.00

0.00

0.00

10389.60

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

2. Sales Proceeds

37943.50

0.00

16261.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3. Total Sales

37943.50

0.00

16261.50

10389.60

12467.52

14961.02

17953.23

0.00

19336.20

19336.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18000.00

0.00

12000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1142.86

1371.43

1645.71

1974.86

2369.83

2843.79

3412.55

4095.06

4914.07

0.00

0.00

0.00

415.58

498.70

598.44

718.13

861.75

1034.11

1240.93

1489.11

1786.94

0.00 0.00

0.00 0.00

0.00 0.00

1038.96 519.48

1246.75 623.38

1496.10 748.05

1795.32 897.66

2154.39 1077.19

2585.26 1292.63

3102.32 1551.16

3722.78 1861.39

4467.34 2233.67

0.00 0.00

0.00 0.00

0.00 0.00

1974.02 623.38

2368.83 748.05

2842.59 897.66

3411.11 1077.19

4093.34 1292.63

4912.00 1551.16

5894.40 1861.39

7073.28 2233.67

8487.94 2680.40

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18000.00

19336.20

31336.20

5714.28

6857.14

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2012-13

Projection 2017-18

Projection 2018-19

Projection 2019-20

Projection

Projection

2020-21

2021-22

Projection 2022-23

Projection 2023-24

Production during the year (Quantity) % Utilization of installed capacity

Sales 1. Gross Income from Summary

21543.87

25852.65

31023.18

37227.82

44673.38

Cost of Production 1. Construction Cost 2. Land Cost 2.Franchisse Fees 3.Power & Fuel 4.Direct labour & wages 5.Consumable Stores 6.Repairs & Maintenance 7.Other expenses 8.Depreciation/ Development Rebate Reserve Total Cost of Production

8228.56

9874.28

11849.13

14218.96

17062.75

20475.30

24570.36

9.Add opening stock-in-process & finished goods 10.Deduct closing stock-inprocess & finished goods Cost of Sales

18000.00

19336.20

31336.20

5714.28

6857.14

8228.56

9874.28

11849.13

14218.96

17062.75

20475.30

24570.36

Gross Profit (B-D)

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

83 Grand Five Star Deluxe Hotel

Project Report of The

Interest on 1. Term Loans

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2. Working Capital

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3. Other Loans if any

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Selling, General & Administrative Expenses Profit before Taxation {E-(F+G) }

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633. 69

0.00

0.00

0.00

0.00

0.00

0.00

0.00

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

0.00

0.00

0.00

0.00

0.00

0.00

0.00

19943.50

-19336.20

-15074.70

4675. 32

5610.38

6732. 46

8078.95

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

Provision for Taxes Net Profit (H-I) Depreciation added back Net Cash Accrual s Repayment obligati ons 1. Towards Existing Term Loan 2. Towards Proposed Term Loan. Total Repaymen t Debt Service ratio (L:M)

84 Grand Five Star Deluxe Hotel

0.00 9694.74 0.00 9694.74

0.00 11633.69 0.00 11633.69

13960.43

1675 2.52

0.00 13960.43

0.00 16752.52

0.00 13960.43

0.00 16752.52

20103.02 0.00 20103.02 0.00 20103.02

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

#DIV/0!

# DIV/0!

#DIV/ 0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

# DIV/0!

#DI V/0!

#DI V/0!

#DIV/ 0!

#DIV/0!

Project Report of The

21.6 Projected Balance Sheet:

(Amoun in Lacs) ) Projection

Projection Projection

Projection

Projection 2016-17

2012-13

2013-14

2014-15

2015-16

0.00

0.00

15000.00

15000.00

607.30 -14467.40

Projection Projection Projection

Projection Projection Projection 2020-21

2021-22

2022-23

Projection

2017-18

2018-19

2019-20

2023-24

15000.00

15000.00

15000.00

15000.00

15000.00 15000.00

15000.00

15000.00

-9792.08

-4181.70

2550.76

10629.72

20324.46

31958.15 45918.58

62671.10

82774.12

A Liabilities 1. Equity Share Capital 2.Reserve & Surplus

19943.50

3. Term loans

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.Bank Borrowings for Working Capital

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5. Unsecured Loan

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6. Sundry Creditors

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

19943.50

607.30

532.60

5207.92

10818.30

17550.76

1. Gross Block

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.Depreciation

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3. Net Block

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.Investment

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5. Inventory

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6. Sundry Debtors

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

7. Other Current Assets

0.00

0.00

0.00

532.60

5207.92

10818.30

17550.76

25629.72

35324.46 46958.15

60918.58

77671.10

8. Working Capital Margin

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

9. Cash & Bank Balances

19943.50

607.30

532.60

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69 13960.43

16752.52

20103.02

Total Assets

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

7. Other liabilities (Installment Due within Next One Year)

Total Liabilities

25629.72

35324.46

46958.15 60918.58

77671.10

97774.12

B Assets

85 Grand Five Star Deluxe Hotel

0.00

46958.15 60918.58

77671.10

Project Report of The

97774.12

21.7 CMA OPERATING STATEMENT : (Amoun in Lacs)

Sr. No.

1

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year7

Year 8

Year 9

Year 10

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Particulars

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

Gross Sales

37943.50

0.00

16261.50

10389.60

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

0.00

0.00

0.00

10389.60

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

I) Gross Income

2019-20

2020-21

2021-22

2022-23

2023-24

ii) Sales Proceeds

37943.50

0.00

16261.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2

Less : Excise Duty

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3

Net Sales %age rise(+) or fall (-) in net sales

37943.50

0.00

16261.50

10389.60

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

-100%

#DIV/0!

-36%

20%

20%

20%

20%

20%

20%

20%

20%

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18000.00

19336.20

31336.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4 5

Cost of Sales I)Raw Material (incl. stores and other items used in process of  mfg.) a) Imported b) Indigeneous ii) Construction & Land Cost a) Construction Cost

0.00

19336.20

19336.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18000.00

0.00

12000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

iii) Power & Fuel iv) Direct labour (factory wages & labour)

0.00

0.00

0.00

415.58

498.70

598.44

718.13

861.75

1034.11

1240.93

1489.11

1786.94

0.00

0.00

0.00

2181.82

2618.18

3141.82

3770.18

4524.21

5429.06

6514.87

7817.84

9381.41

v) Other expenses vi) Depreciation (on assets for mfg.)

0.00

0.00

0.00

2493.50

2992.20

3590.65

4308.77

5170.53

6204.64

7445.56

8934.68

10721.61

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18000.00

19336.20

31336.20

5090.90

6109.08

7330.90

8797.08

10556.50

12667.80

15201.36

18241.63

21889.96

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

b) Land Cost

vii) SUB-TOTAL viii) Add : Opening stock-inprocess

86 Grand Five Star Deluxe Hotel

Project Report of The

Sub-Total ix) Deduct : Closing stock-inprocess

18000.00 0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

x) Cost of Production xi) Add : Opening stock of  finished goods Add: Purchase of finished goods

18000.00

19336.20

31336.20

5090.90

6109.08

7330.90

8797.08

10556.50

12667.80

15201.36

18241.63

21889.96

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18000.00

19336.20

31336.20

5090.90

6109.08

7330.90

8797.08

10556.50

12667.80

15201.36

18241.63

21889.96

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

18000.00

19336.20

31336.20

5090.90

6109.08

7330.90

8797.08

10556.50

12667.80

15201.36

18241.63

21889.96

6

Sub-Total xii) Deduct : Closing stock of  finished goods xiii) SUB TOTAL (Total cost of  sales) Selling, general and admns. Expenses (incl. depr. of assets which are not used for mfg.)

0.00

0.00

0.00

623.38

748.05

897.66

1077.19

1292.63

1551.16

1861.39

2233.67

2680.40

7

SUB TOTAL

18000.00

19336.20

31336.20

5714.28

6857.14

8228.56

9874.28

11849.13

14218.96

17062.75

20475.30

24570.36

8

Operating profit before interest

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

9

Interest

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

10

Operating profit after interest I) Add : Other non-operating income

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

11

19336.20

31336.20

5090.90

6109.08

7330.90

8797.08

10556.50

12667.80

15201.36

18241.63

21889.96

a) Duty draw-back etc. b) Others Sub Total (income) ii) Deduct other non-operating expenses a) Transfer to export business reserve b) Others Sub-Total (expenses) iii) Net of other non-operating income/expenses (net of 11(I) & (ii))

87 Grand Five Star Deluxe Hotel

Project Report of The

12

Profit before tax / loss

13

Provision for taxation

14

Net profit / loss

15

a) equity dividend

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

b) Dividend rate 16

Retained profit

17

Retained profit / Net profit (%)

88 Grand Five Star Deluxe Hotel

Project Report of The

21.8 CMA - ANALYSIS OF BALANCE SHEET : ( LIABILITIES SIDE ) Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year7

Year 8

Year 9

Year 10

Projection

Projection

Projection

Particulars

Sr. No.

(Amoun in Lacs)

Projection

Projection

Projection

Projection

Projectio n

Projectio n

Projectio n

Projectio n

Projection

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

TOTAL BANK BORROWINGS Short-term borrowing from others

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4

Sundry creditors (Trade) Advance payment from customers

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5

Provision for taxation

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6

Dividend payable Other statutory liabilities (due within one yr) Deposits / instalments of term loans / DPG / debentures (due within one year) Other current liabilities and provisions due within one year

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00 0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

ii)Others

0.00

0.00

0.00

0.00

0.00

0.00

425.58

311.82

602.46

1339.86

#REF!

#REF!

OTHER CURRENT LIABILITIES

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1

2021-22

2022-23

2023-24

CURRENT LIABILITIES Short-term borrowing from banks (incl. bill purchased / discounted & excess borrowing placed on repayment basis I) From applicant bank ii) From other banks iii) (of which BP and BD)

2 3

7

8 9

I) Inter-corporate deposits

10

89 Grand Five Star Deluxe Hotel

Project Report of The

11 12 13 14 15 16 17 18

TOTAL CURRENT LIABILITIES Debentures (not maturing within one year) Redeemable preference share (redeemaable after one year) Term Loans (excl. installments payable within 1 yr.) Deferred Payment Credits (excl. installments due within 1 year) Term Deposits (repayable after 1 year) Other term liabilities - Unsecured Loans TOTAL TERM LIABILITIES TOTAL OUTSIDE LIABILITIES (10+17)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

19943.50

607.30

-14467.40

-9792.08

-4181.70

2550.76

10629.72

20324.46

31958.15

45918.58

62671.10

82774.12

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

NET WORTH 19 20

Partners' capital Preference Share Capital (maturing after 12 yrs.)

21

A) General reserve

22

B) Development rebate reserve / Investment allowance reserve Other reserve (excluding provisions)

23

Surplus / deficit in P&L a/c

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

24

NET WORTH

19943.50

25

TOTAL LIABILITIES (18+24)

19943.50

90 Grand Five Star Deluxe Hotel

Project Report of The

21.9 CMA - ANALYSIS OF BALANCE SHEET : ( ASSET SIDE) : Particulars

Sr. No.

(Amoun in Lacs)

Projectio n

Projectio n

Year 1 Projectio n

Year 2 Projectio n

Year 3 Projectio n

Year 4 Projectio n

Year 5 Projectio n

Year 6 Projectio n

Year 7

Year 8

Year 9

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

19943.50

607.30

532.60

4675.32

5610.38

6732.46

8078.95

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Year 10

Projection

Projection

Projection

Projection

2020-21

2021-22

2022-23

2023-24

9694.74

11633.69

13960.43

16752.52

20103.02

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

CURRENT ASSETS 26 27

Cash & Bank Balances Investments (other than long term) i) Govt. & other trustee securities

28

ii) Fixed Deposits with banks I) Receivables other than deferred & exposrts (incl. bill purchase / disc.) ii) Export receivables (incl.bills purchsed & discounted

29

Installment of deferred receivables

30

Inventory I) Raw materials (incl. stores & other items used in the process of  manufacturing

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

a) Imported

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

b) Indigenous

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

ii) Stock-in-process

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

iii) Finished Goods iv) Other consumables stores & spares

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

31

Advance to suppliers

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

32

Advance payment of taxes

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

33

Other current assets

0.00

0.00

0.00

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

91 Grand Five Star Deluxe Hotel

Project Report of The

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

34

TOTAL CURRENT ASSETS

35

FIXED ASSETS Gross block (land & building,machinery, work-inprogress

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

36

Depreciation to date

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

37

Net Block

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

38

39 40 41

OTHER NON CURRENT ASSETS Investments / book-debts / advance deposits which are noncurrent assets i) a) Investments in subsidiaries/ affiliate b) Others ii) Advance to suppliers of capital goods iii) Deferred receivables (maturing after 1 year) Other non consuamable stores & spares Other non-current assets (int. suspense)

42

TOTAL NON-CURRENT ASSETS Intangible assets (Goodwill patents, Pre-expenses, bad & doubtful debts)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

43

TOTAL ASSETS

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

44

TANGIBLE NET WORTH

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

45

NET WORKING CAPITAL

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

46

CURRENT RATIO

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

51

TOTAL OUTSIDE LIABILITIES/TNW

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

92 Grand Five Star Deluxe Hotel

Project Report of The

(Amoun in Lacs)

21.10 COMPARATIVE STATEMENT OF CA & CL

Sr. No. 1 2 3

4 5 6 7 8

9

WORKING CAPITAL ASSESSMENT Total Current Assets Other CL (other than bank borrowing) WCG Minimum stipulated NWC (25% of WCG / 25% of total CA as the case may be) Actual / projected NWC Item 3 minus Item 4 Item 3 minus Item 5 MPBF (Item 6 or 7 whichever is lower) Excess borrowing representing shortfall in NWC (4-5)

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year7

Year 8

Year 9

Year 10

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

2012-13 19943.50

2013-14 607.30

2014-15 532.60

2015-16 5207.92

2016-17 10818.30

2017-18 17550.76

2018-19 25629.72

2019-20 35324.46

2020-21 46958.15

2021-22 60918.58

2022-23 77671.10

2023-24 97774.12

0.00 19943.50

0.00 607.30

0.00 532.60

0.00 5207.92

0.00 10818.30

0.00 17550.76

0.00 25629.72

0.00 35324.46

0.00 46958.15

0.00 60918.58

0.00 77671.10

0.00 97774.12

4985.88

151.83

133.15

1301.98

2704.58

4387.69

6407.43

8831.12

11739.54

15229.65

19417.78

24443.53

19943.50 14957.63 0.00

607.30 455.48 0.00

532.60 399.45 0.00

5207.92 3905.94 0.00

10818.30 8113.73 0.00

17550.76 13163.07 0.00

25629.72 19222.29 0.00

35324.46 26493.35 0.00

46958.15 35218.62 0.00

60918.58 45688.94 0.00

77671.10 58253.33 0.00

97774.12 73330.59 0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-14957.63

-455.48

-399.45

-3905.94

-8113.73

-13163.07

-19222.29

-26493.35

-35218.62

-45688.94

-58253.33

-73330.59

93 Grand Five Star Deluxe Hotel

Project Report of The

21.11 TURNOVER METHOD (Amoun in Lacs)

Sr. No. 1

WORKING CAPITAL ASSESSMENT Gross Sales

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year7

Year 8

Year 9

Year 10

Projectio n

Projectio n

Projectio n

Projectio n

Projectio n

Projectio n

Projectio n

Projectio n

Projectio n

Projectio n

Projection

Projection

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

37943.50

0.00

16261.50

10389.60

12467.52

14961.02

17953.23

21543.87

2023-24

25852.65

31023.18

37227.82

44673.38

2

25% of gross sales

9485.88

0.00

4065.38

2597.40

3116.88

3740.26

4488.31

5385.97

6463.16

7755.79

9306.95

11168.34

3

5% of gross sales

1897.18

0.00

813.08

519.48

623.38

748.05

897.66

1077.19

1292.63

1551.16

1861.39

2233.67

4

Actual / projected NWC

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

6

Item 2 minus Item 3

0.00

3252.30

2077.92

2493.50

2992.20

7445.56

8934.68

-607.30

3532.78

-2610.52

-7701.42

-13810.51

-29938.49

5170.53 40494.99

6204.64

Item 2 minus Item 4 Permissible bank finance(Item 5 or 6,whichever is lower)

3590.65 21141.41

4308.77

7

7588.70 10457.63

-53162.79

-68364.15

-86605.78

10457.63

-607.30

3252.30

-2610.52

-7701.42

-13810.51

21141.41

-29938.49

40494.99

-53162.79

-68364.15

-86605.78

8

94 Grand Five Star Deluxe Hotel

Project Report of The

21.12 CMA - FINANCIAL POSITION

a)

b)

c)

d) e) f)

(Amoun in Lacs)

Projection

Projection

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year7

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Year 8 Projection

Year 9 Projection

Year 10 Projection

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

Paid up Capital :

0.00

0.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

- Equity

0.00

0.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

15000.00

- Preference Share Tangible Net worth (Excl. rev. reserve & net of  intangible assets) Investment in cos.(of  which associated companies/ subsidiaries)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Adjusted TNW

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

Quasi Capital Capital Employed*(total funds employed)

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

g)

Net Block

h)

Net sales : Domestic Exports Total

2022-23

2023-24

0.00

0.00

0.00

10389.60

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

37943.50

0.00

16261.50

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

37943.50

0.00

16261.50

10389.60

12467.52

14961.02

17953.23

21543.87

25852.65

31023.18

37227.82

44673.38

i)

Other Income

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

 j)

Depreciation

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

k)

Gross Profit/Loss

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

l)

Net profit/loss

19943.50

-19336.20

-15074.70

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

Cash Accruals (l+k) Net profit / Capital Employed (%)

19943.50

-15074.70 2830.40%

4675.32

5610.38

6732.46

8078.95

9694.74

11633.69

13960.43

16752.52

20103.02

100.00%

-19336.20 3183.96%

89.77%

51.86%

38.36%

31.52%

27.44%

24.77%

22.92%

21.57%

20.56%

o)

Current Assets

19943.50

607.30

532.60

5207.92

10818.30

17550.76

25629.72

35324.46

46958.15

60918.58

77671.10

97774.12

p)

Current Liabilities

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

m) n)

95 Grand Five Star Deluxe Hotel

Project Report of The