POLO HOTELS Share price

POLO HOTELS LIMITED a Public Limited Company wasoriginally incorporated on 20th January 1984 under the nameof POHLO ESTATES HOTELS AND INVESTMENTS PVT LIMITED withthe main object of setting and running of Hotels &Resturants. The company was converted into a public limitedcompany and the name was also changed to POLO HOTELSLIMITED vide a fresh certificate of incorporation No.5708of 1984 dated 6-05-1989 issued by the Registrar of theCompanies Punjab H.P and U.T. (Chandigarh) at Jalandhar.The Registered office of the company is situated at HotelNorth Park Village Chowki Panchkula Haryana and the HeadOffice at SCO 13-A First Floor Madhya Marg Sector 7-CChandigarh-160019.Consequent upon passing of Special Resolution in the ExtraOrdinary General Meeting of the Company held on 20.2.93 forshifting the Registered Office of the company from HP to thestate of Haryana an application was made to the company lawboard for shifting of Registered Office from the state ofH.P (Shimla) to Haryana on 30th April 1993. The CompanyLaw Board has accorded its approval vide its order No.146/17/93/CLB date 8th March 1994. And the same has beenregistered with Registrar of Companies NCT of Delhi andHaryana at Delhi on 21st July 1994.During the Year 1986 the company purchased the land fromvarious land owners at chowki (Panchkula) Haryana.Subsequently the company approached the Director Town andCountry Planning (DTCP) Government of Haryana for theapproval of its Hotel Project vide its latter No.PHL/59/dated 27.03.1987. The company received the approval fromthe DTCP vide their letter No.4346 dated 16.03.1992 andapproval of building Plan for Hotel cum Resort Complex byDTCP vide their memo No.10109 dated 9.07.1992. Becauseof the delayed approval the Project of the company wasdelayed considerably. As the Government approval was notforthcoming the company acquired the assets ofRs.2854893 of Terminal I Restaurant situated on leasepermises at SCO 196-197 Sector 17 Chandigarh on 27.12.1991.Initially it was proposed to run the Restaurant as abusiness proposition and a sum of Rs.378870 was spent forrenovation and preoperative expenses. By the time therenovation etc was completed the company received theawaited approval from DTCP. Moreover in comparison toHotel Project the Restaurant venture being small it wasthought prudent to concentrate only on the Hotel Project.Hence it was decided to hand over the management andoperations to an another party under the arrangement theparty has to bear all the losses and in case of profit 20% ofthe same will be passed on to the company without providingfor depreciabon. Unfortunately the Restaurant wasincurring losses hence on the request of other party theassets of Rs.3233763 were sold to M/s Hot Million andother parties. There was no Profit/Loss on the sale ofthese assets.The Company is now softing up a Three Star Resort Hotel atPanchkula Haryana in the assisted Sector along withHaryana State Industrial Development Corporation Ltd.(HSIDC) The Resort hotel is being sat up on a six acre and04 Biswas plot on the bank of River Ghaghar at VillageChowki in Panchkula and will have 43 rooms restaurantsBanquet Hall Coffee Shop Shopping Arcade andrecreational/health facilities.Hotel industry forms the back bone of the tourismindustry. Due to the industry''s great foreign earningpotential it enjoys an important place on the policymaking agenda of the government. If the national actionplan for tourism and its objective of achieving a foreignexchange turnover of 100 billion by 2000 AD is consideredthe present hotel accomodation available is short. Hencethere is substantial scope of development in the industry inthe future. But the development of this industry dependson the flow of tourist/business traffic which is sensitiveto socio-politcal conditons within the country and outsideand also level of economic actvity in that particular area.The proposed location is ideal from marketing angle asexplained under the paras of Location and Marketing hencethe company do not foresee any problem in the operation ofthe project.