HOWARD HOTELS Share price

Howard Hotels Limited was incorporated as a Private LimitedCompany on December 11 1989 by Mr.S. R.Narula and Mr. SandeepNarula with an object of setting up a Three Star hotel atFatehabad Road Agra. The company was subsequently convertedinto a Public Limited Company on January 211994.During the past years company was mainly engaged in acquiringland construction of Hotel building and placing various ordersof plant and machinery required for the Hotel. In the year 1990the company acquired about 2700 Sq.mtr. of land at MustkilTajganj Fatehabad Road Agra. The building plans were approvedby the Agra Development authority and collector in 1991 andcompany awarded the building civil work and other related workin 1992. The company finalised the various plant and machineryorders in 1993 and entered into an affiliation agreement withBest Western International Inc. and also got his projectappraised by the PICUPThe hotel project was conceived as a Three - Star Deluxe hotelwith a project cost of Rs. 391.80 lacs in the year 1990. Theproject was to be funded through a Promoters'' share capital ofRs. 112.40 lacs Interest free Unsecured Loans of Rs. 39.40 lacsand term loans of Rs. 1 50.0O lacs and Rs. 90.00 lacs by PICUPand UPFC. The promoters felt that with the spiralling growth intourist traffic to Agra there was a need to enhance thefacilities to 5-star category so as to cater to the needs of thediscerning traveller. Accordingly the promoters entered into atie-up with Best Western International Inc. through their Indianaffiliates and the hotel has now been upgraded with amenitiesconfirming to a 5-Star Category Hotel. The Company has appliedto the Deptt. of Tourism Govt. of India for getting a status of5-Star Category Hotel. The revised project will have a projectcost of Rs. 950.00 lacs and the same has been appraised byPradeshiya Industrial and Investment Corporation of U.P.Ltd.(PICUP) in June 1994.The company had no labour problems in the past. The company ispresently engaged in completion of their hotel at Agra which islikely to be operational by January 95. The financial performanceof the company since incorporation has been as under and nomaterial qualification have been made by the Auditors.The share holding of the core promoters shall be Rs. 180.00 lacswhich comprise 25.35% of the total paid up capital. The corepromoters hold 100% of the equity in group companies.MAIN OBJECTS OF THE COMPANY:The main objects of the Company as contained in Memorandum ofAssociation are as under:1. To carry on the business of hotels rest houses guesthouses holiday resorts restaurants coffee houses recreationrooms bars taverns lodging-house keeping inn ownersboathouses shikara holiday-hut business and game room owners.2. To carry on business of professional caterers bakersconfectioners cooks wine and beer merchants ice creamvendors pastry shop owners spirit merchants distillersbrewers importers and manufacturers of aerated minerals andartificial waters and such other drinks of all types purveyorsand licensed victuallers.3. To purchase take on lease hire erect of otherwise acquireestablish and equip and to act as technicians of any other suchhotels motels holiday camps restaurants canteens cafespubs bars refreshment rooms and casinos in India or in anyother part of the world.4. To act as agents of any hotel company or as buying or sellingagents of any hotel company and to do and perform all dutiesservices and offices which the agents of any hotel companyusually do and perform and undertake and to become bound byconditions of any agreement entered into for any of the purposesaforesaid.5. To promote organise and operate all tourist activities suchas independent and conducted tours adventures expeditionssafaris conferences meetings and such other group movementsboth in India and outside India by road rail air sea orotherwise.dSUBSIDIARIESThe company has no subsidiaries.