Kamat Hotels (India) Share price

KAMAT HOTELS (INDIA) LIMITED was incorporated on 21stMarch 1986 in the State of Maharashtra by Sri Venketesh K.Kamath and his associates with main object of setting upand running of hotels and related business. The Companyobtained the Certificate for Commencement of Businesson 31st March 1986.KAMATS KHANDALA HOTELThe company was managing a 22 rooms Hotel at Khandala viz.Kamats Khandala Hotel. Vide management contract which wasentered into in 1987 for an initial period of 3 years. Itwas renewed for further period of 3 years and later extendupto 31.3.94. In turn the Company was paying a minimumcompensation of Rs.15000/- per month. All the income andexpenditure of this hotel was accounted by the Company.THE KAMATS PLAZAThe Company has been managing The Kamats Plaza since 1st April1994 vide management contract entered on 31.3.94.1. Initially the duration of agreement is for a period of30 years but is further renewable for a further period of30 years at the option of the company.2. The Company shall deposit a sum of Rs.60 crores as SecurityDeposit. 3. The Company shall have a right to make alteration/modification to the existing facilities and also toconstruct/install additional facilities.4. The Company shall arrange and provide the funds required forconstruction furnishing equipping and for operating thesame during the subsistence of the agreement.5. At the end of the agreement the owner company shallrefund the entire amount of deposit along with amountequivalent to the written down value or the market valuewhichever is higher of the capital expenditure incurred bythe company. The depreciation would be calculated atspecified rates.6. All the assets or the equipments acquired or added toby the company shall belong to the company. Likewise allprivileges concessions incentives or benefits availablefor any authority for running the hotel shall belong to thecompany.7. The company shall not be liable for any liability ofthe owner company however shall be entitled to use all theassets forming part of under the aforesaid agreement forits benefits.8. The company shall have authority to procure loansagainst the security of the assets being created.9. The company shall pay to the owner company a sum equalto 1% of the Gross Revenue of the hotel as compensation inconsideration of the covenants of the agreement. Howeverthis is far below the norms of Hotel Industry.10. The Company may at its option allot 14%Non-Convertible Debentures of Rs.100/- each with 2detachable warrants to Plaza Hotels Private Limited upto amaximum of Rs.12 crores against their outstandings.