RANGAPPA KAMAT GROUP OF HOTELS LIMITED

Transcription

1 R.P. KAMAT GROUP RANGAPPA KAMAT GROUP OF HOTELS LIMITED 23rd Annual Report 2003

2 ;'x 21 MAY JULY 1993 RANGAPPA P. KAMAT Founder of Kamat Hotel

3 TWENTYTHIRD ANNUAL REPORT R.P, KAMAT GROUP RANGAPPA KAMAT GROUP OF HOTELS LIMITED BOARD OF DIRECTORS RAMACHANDRA RANGAPPA KAMAT LAXMAN RANGAPPA KAMAT DEVAKIKRISHNA RANGAPPA KAMAT MANJUNATH RANGAPPA KAMAT VYASA RAO GANAPATHI A. PRABHU VITTAL A. SHANBHAG S. GANESH SHENOY Chairman Managing Director Director Director Director Director Whole-time Director Director AUDITORS : G.S. KAMATH & CO., Chartered Accountants, KUMTA COMPANY SECRETARY & CHIEF ACCOUNTANT : S. NARAYANAN, Kamat's Hotel Mayura, 495/496, O.P.H. Road, Shivajinagar, BANGALORE REGISTERED OFFICE : Kamat's Vasant Bhavan, Station Road, Hubli , Phone: , CORPORATE OFFICE : Kamat's Hotel Mayura, 495/496, O.P.H.Road, Bangalore Phone:(080) ,23,24 Fax:(080) kamatsmayura@vsnl.net FINANCIAL INSTITUTIONS: INDUSTRIAL FINANCE CORPORATION OF INDIA LIMITED (IFCI) BANKERS: CORPORATION BANK K.D.C.C. BANK LIMITED SIRSI URBAN CO-OPERATIVE BANK LIMITED UNITS 1. KAMAT HOTEL, RAMALAYA COMPLEX, SECUNDERABAD 2. KAMAT'S HOTEL MAYURA, O.P.H. ROAD, BANGALORE (Two Star Hotel) 3. KAMAT HOTEL, ALLADIN COMPLEX, S.D.ROAD, SECUNDERABAD 4. KAMAT HOTEL, SUPER MARKET, GULBARGA 5. KAMAT TOURIST, BANGALORE 6. BENGRE KAMAT'S KRISTAL WATER, ANKOLA. 7. KAMAT LINGAPUR HOTEL, BEGUMPET, HYDERABAD (Three Star Hotel)

4 TWENTYTHIRD ANNUAL REPORT R.P. KAMAT CROUP RANGAPPA KAMAT GROUP OF HOTELS LIMITED REGD. OFFICE: KAMAT'S VASANT BHAVAN. STATION ROAD. HUBLI NOTICE OF THE TWENTY THIRD ANNUAL GENERAL MEETING NOTICE is hereby given that the TWENTY THIRD Annual General Meeting of the Shareholders of the Company will be held on Saturday, the 27th Day of September 2003 at Kamat Hotel, Traffic Island, Hubli at 5.00 p.m. to transact the following business: AS ORDINARY BUSINESS: 1. To receive and adopt the Audited Balance Sheet of the Company as at 31st March 2003 and Profit & Loss Account of the Company for the year ended on that,date and the Reports of the Directors and Auditors thereon. 2. To declare Dividend at 14% to 14% Redeemable Cumulative Preference Shareholders for the year To declare Dividend at 5 percent to the Equity Shareholders for the year To appoint a Director in the place of Sri. Manjunath Rangappa Kamat who retires by rotation in this Annual General Meeting and being eligible, offers himself for re-appointment. 5. To appoint a Director in the place of Sri. Vyasa Rao who retires by rotation in this Annual General Meeting and being eligible, offers himself for re-appointment. 6. To appoint Auditors from the conclusion of this Annual General Meeting till the conclusion of the next Annual General Meeting and to fix their remuneration. M/s. G.S.KAMATH re-appointment. & Co., Chartered Accountants, Kumta the retiring Auditor is eligible for AS SPECIAL BUSINESS: 7. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: "RESOLVED THAT pursuant to the provisions of Section 293(1 )(a) and other applicable provisions, if any, of the Companies Act, 1956, consent of the Company be and is hereby accorded to the Board of Directors of the Company (hereinafter called "the Board" and which term shall be deemed to include any Committee, which the Board may have constituted or hereinafter constitute or the Managing Director of the Company to exercise its power including the powers conferred by this resolution and with the power to delegate such authority to any person or persons), to dispose off movable and/or immovable properties of Company's factory - Bengre Kamat's Kristal Water situated at Baleguli Cross, Ankola, North Kanara District on such terms and in such manner as the Board/Managing Director of the Company may think fit".

5 RANGAPPA KAMAT GROUP OF HOTELS LIMITED R.P. KAMAT GROUP "RESOLVED FURTHER THAT, the Managing Director of the Company be and is hereby authorised to do all such acts, deeds and things and to sign all such documents as may be necessary, expedient and incidental thereto to give effect to this resolution." for and on behalf of the Board of Directors, RANGAPPA KAMAT GROUP OF HOTELS LTD., Sd/- Bangalore, LAXMAN R. KAMAT, Managing Director. NOTE: 1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy and vote on his behalf and such proxy need not be a member of the company. 2. All Proxies, in order to be effective, should reach the Registered office of the company 48 hours before the meeting. 3. Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 for item No. 7 above: The Company has a unit - Bengre Kamat's Kristal Water for the manufacture of Pre Packed Water at Baleguli Cross, Ankola Taluk, North Kanara District. In view of the Unit has become economically unviable due to increased cost operations of and heavy competition from large number of manufacturers, it is proposed to dispose off the above unit of the Company. Pursuant to Section 293(1 )(a) of the Companies Act, 1956, disposal of any undertaking of the Company needs sanction of the Shareholders in the general meeting. Your Directors recommend the resolution as set out above for your approval. None of the Directors of the Company is, in any way, concerned or interested in the said resolution.

6 TWENTYTHIRD ANNUAL REPORT DIRECTORS' REPORT TO THE SHAREHOLDERS ft.p. KAMAT GROUP Your Directors have pleasure in''presenting their TWENTY THIRD Annual Report together with the Audited Statements of Accounts of the Company for the year ended 31st March 2003 together with the report of the Auditors thereon. 1. FINANCIAL RESULTS: The Financial performance of the Company is summarised as under: (Rupees in Lakhs) Sales & Other Income Profit Before Interest Depreciation and Tax Less: Interest Less: Depreciation Less: Income Tax NET PROFIT Add: Profit brought forward 1, , TOTAL APPROPRIATIONS: Proposed Dividend for the year At 14% on 14% Redeemable Cumulative Preference Shares At 5% on Equity Shares TOTAL NET PROFIT CARRIED FORWARD

7 R.P. KAMAT GROUP 2. REGISTERED OFFICE: RANGAPPA KAMAT GROUP OF HOTELS LIMITED The Registered Office of the Company was shifted from Kamat Restaurant, Broadway, Hubli to Kamat's Vasant Bhavan, Station Road, Hubli with effect from 15th March MANAGERIAL REMUNERATION: The general recession in the Tourism Industry has also affected our Company's Units which are not earning the expected Profits. The Managing Director of your Company in view of the above, has waived his rights to claim salary and also the commission of one percent on profits for the year ended although he is entitled to the same under the Contract of his appointment. 4. SHARE CAPITAL: The Company has not issued any Shares during the year. The Paid up share capital of your company as on 31st March 2003 is Rs. 4,78,01,5007= (Previous year Rs. 4,77,65,5007=). The increase is on account of receipt of Allotment money of Rs. 36,0007= which was in arrears. 5. WORKING RESULTS: The total turnover of the Company for the year ended 31st March 2003 increased'to Rs. 11,76,87,1097= from the previous year turnover of Rs. 10,98,99,6577= showing an increase of Rs. 77,87,4527= (7% against the previous year increase of 2%) The Profit before interest, Depreciation, Tax and Dividend is Rs. 2,86,65,3047= from the previous year figure of Rs. 2,60,08,8257= showing an increase of Rs. 26,56,4797= (Profit 10% against the previous year Loss of 2%). Out of the above profit of Rs. 2,86,65,3047=, (Previous year Rs. 2,60,08,8257=) the Company has incurred Rs. 83,25,8457= (Previous year Rs. 88,62,8757=) towards interest and Bank Charges, Provided for Depreciation Rs. 95,83,3747= (Previous year Rs. 1,10,50,5837=) and taxes (including Dividend tax of Rs. 3,93,5627=) of Rs. 13,41,9687= (Previous year Rs. 4,66,3007=) the Net Profit available is Rs. 94,14,1177= (Previous year Rs. 56,29,0677=). After adding the carry forward Profit of previous year amounting to Rs. 27,04,4137= (Previous year Rs. (1,45,8467=) the Net Profit available for distribution is Rs. 1,21,18,5307= (Previous year Rs. 57,74,9137=). 6. DIVIDEND: Your company has earned a Net Profit of Rs. 1,21,18,5307= (Previous year Rs. 57,74,9137=) as mentioned above for the year Your Directors subject to your approval in the ensuing Annual General Meeting of the Company, recommend to declare and pay the Dividend at the same rates of Previous year at 14% to the 14% Redeemable Cumulative Preference Shareholders for the year amounting to Rs. 10,60,5007= (Previous year Rs. 10,60,5007=) and at 5% to the Equity Shareholders amounting to Rs. 20,11,2007= (Previous year Rs. 20,10,0007=) the balance Profit of Rs. 90,46,8307= (Previous year Rs. 27,04,4137=) to be carried forward to general reserve. The above dividends are not taxable in the hands of Shareholders and hence, no tax will be deducted at source from the said Dividends as per Income Tax Act.

8 TWENTYTHIRD ANNUAL REPORT R.P. KAMAT GROU! 7. SECURED LOANS: For the 3 Star Hotel Project at Hyderabad, ;the Industrial Finance Corporation of India Ltd., (IFCI) disbursed a Term Loan of Rs. 5 Crores. Your Company during the year continued to repay promptly the Quarterly instalments of Loan principal in addition to the interest. The Loan instalments repaid so far amount to Rs. 3 Crores (Three Crores) leaving a balance loan of Rs. 2 Crores as on date. The Company availed Term Loan of Rs. One Crore against the Company's requirement of Rs Crores from Corporation Bank, Industrial Finance Branch, Bangalore for providing 24 additional rooms in the 4th & 5th Floor of Kamat Lingapur Hotel at Hyderabad. The Balance amount of loan outstanding is Rs. 74,63,8757= as on date. Your Company availed Term Loan of Rs. 1,92,55,0007= from Sirsi Urban Cooperative Bank Ltd., Sirsi for purchase of Eight Tourist Buses. The Balance amount of Loan outstanding is Rs. 1,25,94,0007= as on date. The Term loan of K.D.C.C. Bank Ltd., Sirsi was rescheduled for repayment over 84 (Eighty four) monthly instalments at a reduced rate of 14% (Previous rate was 19%) with effect from Your Company regularly pays the monthly Equated instalments to the K.D.C.C. Bank Ltd., The Balance amount outstanding is Rs. 69,81,0007- as on date. 8. FIXED DEPOSITS: The Company did not avail any Fixed Deposits from the Public. 9. PERFORMANCE: KAMAT LINGAPUR HOTEL: Your Company's New Star Hotel Project at Hyderabad was opened for Public on 16th June 1999 with 54 rooms, Restaurant, Banquet Hall etc., You will be pleased to note that the said Hotel was approved as Three Star Hotel by the Department of Tourism, Government of India. In view of continuous demand for rooms in your Hotel and the twin city of Hyderabad/Secunderabad are attracting large member of tourists and officials due to establishment of large number of software companies, it was decided by your Board of Directors to construct, additional 24 rooms in the 4th and 5th Floor of the Hotel Building. The Additional rooms were open to Public from In addition to the existing Banquet Hall (Triveni) with a capacity to accommadate about 120 persons and a meeting room (Radhika) with a capacity to accommadate about 12 Persons, two more Banquet Halls, in the lower basement (named Anupama and Chandrika) to accommodate about 150 persons and 30 persons respectively were opened to public on The occupancy ratio of your Hotel is around 61% in the year m-

9 RANGAPPA KAMAT GROUP OF HOTELS LIMITED R.P. KAMAT GROUP KAMAT'S HOTEL MAYURA: Since the Hotel is situated in the heart of the City at Bangalore and the Hotel is patronised by our Customers, your Directors decided to face lift the interior and exterior of the Hotel to give additional satisfaction to our Customers. RESTAURANT UNITS: Although, there are many wayside Restaurants, Fast Food Units who have not much establishment and other costs are competing with established restaurants, all your existing Restaurant Units continue to keep up the same level of performance during the year KRISTAL WATER: The KRISTAL pre-packed water unit which commenced production in March 1996 is still unable to compete with the other units in the business. Your Directors are very much concerned over the functioning of this Unit and decided to stop production from Efforts are being made to dispose off the machineries and other equipments as advised by Shareholders in the last year Annual General Meeting of the Company. KAMAT TOURIST:. Kamat Tourist is recognised and approved by Tourism Department as Tourist Bus Operator. Your Company added Four more New Deluxe Buses which replaced the old ones during the year. Your customers are happy with the operation of this unit particularly regarding Cleanliness, Timing, Passenger amenities, safety etc., and the unit is doing well. 10. INTEREST SUBSIDY: Your Company received interest subsidy of Rs. 74,58,8737= from the Department of Tourism, Government of India upto The balance amount to be recoverd is Rs. 11,65,8697= as on date DIRECTORS: Sri. Manjunath R.Kamat existing Director retires by rotation on the date of ensuing Annual General Meeting and being eligible offers himself for reappointment. Sri. Vyasa Rao existing Director retires by rotation on the date of ensuing Annual General Meeting and being eligible offers himself fqr reappointment. 12. AUDITORS: M/s. G.S.Kamath & Co.; Chartered Accountants, Kumta being the Auditors of the company, retire at the ensuing Annual General Meeting of the Company and being eligible offer for reappointment.

10 TWENTYTHIRD ANNUAL REPORT R.P. KAMAT GROUP 13. CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION. FOREIGN EXCHANGE EARNINGS AND OUTGO. PAYMENT FOR SUPPLIES FROM SMALL SCALE SECTOR ETC.: Although the company did not have any activity relating to conservation of energy or absorption of technology, all efforts are being made to control the consumption of energy and water in all the Units. The company earned foreign exchange of Rs lakhs during the year and there was no foreign exchange outgo. Payments for supplies from small scale sectors were made on the due dates. 14. EXEMPTION FROM GOVERNMENT OF INDIA FROM DISCLOSURE OF QUANTITATIVE DETAILS: The Government of India, Ministry of Finance, Department of Company Affairs vide their order No. 46/158/2003-CL-lll dated based on the nature of business have given exemption to the company under section 211(4) of the Companies Act, 1956 from the disclosure of quantitative details in compliance of paras 3(i)(a) and 3(ii)(d) of Part II Schedule VI of the Companies Act, 1956 for the financial years ending on , & PARTICULARS OF EMPLOYEES: There are no employees during the year drawing remuneration in excess of limits as laid down in Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, DIRECTORS' RESPONSIBILITY STATEMENT: Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors' Responsibility Statement for the financial year is attached with this report. 17. DIRECTORS' DECLARATION: Pursuant to Section 274(1 )(g)(a)&(b) of the Companies Act, 1956, the Directors' Declaration for the financial year is attached with this report. 18. ACKNOWLEDGMENTS: Your Directors gratefully acknowledge the support from the Industrial Finance Corporation of India, Corporation Bank, K.D.C.C. Bank, Sirsi Urban Co-operative Bank and other Commercial Banks, Shareholders, Customers, Government Authorities and employees of the Company. for and on behalf of the Board of Directors, RANGAPPA KAMAT GROUP OF HOTELS LTD., So7- Bangalore, R.R. KAMAT, Chairman.