MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW

Positioning tourism as a major engine of economies growth and harnessing its direct and multiplier effects on employment and poverty eradication in a sustainable manner by active participation of ail segments of the society is the main objective of the tourism policy of the Government of India. Tourism sector is one of the largest employment generators in the country and it plays a very significant role in promoting inclusive growth of the less-advantaged sections of the society and poverty reduction. Apart from marketing and promotion, the focus of tourism development plans is now on integrated development of tourism infrastructure and facilities through effective partnership with various stakeholders. The role of Government in tourism development has been re-defined from that of a regulator to that of a catalyst and facilitator.

In order to boost tourism numbers, the Indian Government decided to implement a new visa policy, allowing visitors to obtain a visa on arrivai at 16 designated international airports by obtaining an Electronic Travel Authorization online before arrivai without the need to visit an Indian consulate or visa center. As a result of this, 56,477 tourists arrived on e-Tourist Visa during the month of October, 2015, as compared to 2,705 during the month of October, 2014 marking to a growth of 1987.9%. During January-October, 2015 a total of 2,58,182 tourist arrived on e-Tourist Visa as compared to 21,995 during January-October, 2014 registering a growth of 1073.8%.

The facility will be made available to citizens of about 180 countries in several phases. On 27 November 2014, India introduced its visa on arrivai enabled by ETA facility for tourists and business visitors, to citizens of various countries.

Foreign Tourist Arrivais (FTAs) in India during 2015 were 8.03 million with a growth of 4.6% as compared to the FTAs of 7.68 million during 2014 registering a growth of 10.2% over 2013. The Foreign Exchange Earnings (FEEs) from tourism in terms of US dollars during 2015 was US$ 21,058 million with a growth of 4.1% as compared to FEE of US$ 20,236 million during 2014 registering a growth of 9.7% over 2013.

The Company believes that there is a significant potential for growth of hospitality business in India. During the year, it has taken several measures to tap this opportunity. As most of its addressable market is very active online, the Company has made a conscious effort to focus on 'digital', both as a channel for future growth and to build its brand. As a result, response times to customer leads, queries or online mentions are being out drastically. The Company's results of operations are primarily affected by room revenue and food and beverage revenue in its hotel. Room revenue is dependent upon the number of hotel rooms occupied by guests and the rate at which such guests can be charged.

The Company with a view to expand its business has made an investment in a new future project in the state of Poovar, Trivandrum - Kerala, by acquisition of existing resorts and surrounding land approximately 6 a care to develop this resorts from exiting 20 rooms to 75 rooms with ail best amenities, with respect to purchase of a Plot at Kulathoor Village, Taluka Neyyatinkara, District Tiruvananthapuram.

OUTLOOK

The prime motive of Company has been profitable growth and to achieve the same, the Company has been fast re-shaping its processes aligning its people to the vision of creating long term shareholder value. The Company has included general trading in its main objects in the current financial year and now operates in three segments. The Management believes that Company will be able to achieve better growth in all three segments in the future.

DISCUSSION ON OPERATIONAL PERFORMANCE & FINANCE HIGHLIGHTS

During the year under consideration the income of your Company has increased to Rs. 1348.61 Lac in the current year from Rs. 1271.77 Lac earned in the brvious year. The Profit before Tax (PBT) of the Company for the current year has increased to Rs. 61.67 Lac as against 52.76 Lac in the brvious year. Similarly the Profit after Tax (PAT) for the current year is Rs. 44.39 Lac as compared to Rs. 43.12 Lac earned in the brvious year.

The Management is expects growth form this sector in long run as the business climate has turned positive and will be able to acquire and expand more business in future.

Our income from other sources comprises of interest income from bank and other non-operating income.

RESORT OPERATIONS

Efficient resort operations are central to delivering a holiday experience that meets the expectations of our customers. This encompasses three key areas: infrastructure and facilities, holiday activities, and food and beverage (F&B). The Company continued its initiative on institutionalising post-holiday feedback as the chief mechanism to measure its success in delivering quality holiday experience to its customers and addressing their concerns. We are happy to report that the feedback scores have consistently improved during the year. Efforts are in progress to further improve the coverage of the feedback, both in terms of processes and resort location.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS

Viewed on face value, the Govt's annual budget produced no cheer from hospitality. Tourism, hospitality and hotels did not

even fïnd mention and taxes increased. Viewed more broadly, though, there is hope. If airport, road and rail infrastructure improves, as planned, manufacturing & industry will benefit. 3-5 yr tax holiday for start-ups should boost this sector too. Rural and farm initiatives could deliver more income to smaller towns. Optimistically, we may gain indïrectly.

Winter 15-16 provided a glimmer of hope. Revenues have largely improved over the same period in the brvious year. India wide new hotel room supply is petering off. We expect further gains in REVPAR in 16-17.

Goa still maintains its position as India's No.l leisure destination. Strong domestic demand, combined with inbound interest, keeps Goa's engine running. We will tread FY17 with some caution. Events in Europe, and the indifferent health of Europe's largest economies, may see downward inbound traffic. We forecast modest growth in Gross Revenue in the coming year.

The company has made units investments at Kulahtoor Village, Taluka Neyyatinkara and District Thiruvananthpuram in view of further expansion.

RISK MANAGEMENT

Risk management is an integral part of the Company's business process. With the help of experts in this field, risks are carefully mapped and a risk management framework is evolved. Pertinent policies and methods are set forth to mitigate such risks. The Company has taken several measures at ail its properties to beef up its security brparedness. In addition to the physical security measures, the Company has also taken adequate insurance cover to meet financial obligations which may arise from any untoward incidents.

INFERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a proper and adequate Internal control System to ensure that ail the assets are safe-guarded and protected against the loss from unauthorized use or disposition and those transactions are authorized, recorded and reported correctly.

The Internal control is supplemented by an extensive internal audit, periodical review by the management and documented policies, guidelines and procedures. The Internal control is designed to ensure that the financial and other records are reliable for brparing financial statements and other data and for maintaining accountability of assets.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The Company continues to lay emphasis on developing and facilitating optimum human performance. Performance management was the key word for the Company this year. Recruitment process has been strengthened to ensure higher competence levels. During the year, the Company successfully inducted people to meet the needs of the growing business, both from outside as well as through talent management and capability development initiatives aimed at development of existing employees. The employees strength is 112 as on 31 st March, 2016.