SAVERA INDUSTRIES Share price

Savera Enterprises Limited (SEL) was incorporated as aPrivate Limited Company under the Companies Act 1956 onNovember 17 1969 under the name of ''Savera Hotels PrivateLimited''. The name of the Company was changed to thepresent one on September 21 1976 and a fresh certificateof incorporation was obtained from the Registrar ofCompanies Tamil Nadu. Subsequently the Company became aDeemed Public Company under the provisions of section 43Aof the Companies Act 1956 with effect from April 1 1982following which the word "Private" was deleted in theCertificate of Incorporation.Pursuant to its objects the Company is engaged in therunning & management of Savera Hotel a four star hotellocated in Madras.BUSINESS DEVELOPMENT The Company was originally set up as a partnership firm in1965 when the promoters Mr. A. Venkatakrishna Reddy Mr.M. Ramaraghava Reddy and Mr. A. Shyamasundara Reddy joinedhands to set up and run a hotel. The promoters withconsiderable experience in the real estate and hotelbusiness acquired land admeasuring approximately 5000square metres in Mylapore a prime locality in Madras toput up Hotel Savera a hotel with 20 rooms and arestaurant. The hotel with its prime location served as amajor centre of attraction for the travelers resulting in acontinuous rise in the number of tourists visiting thehotel.In 1969 the promoters also set up a Company under the name''Savera Hotels Private Limited'' to meet the needs of theirgrowing business also keeping in view the long termperspective of the hotel industry. In 1971 thepartnership concern sold 1 757 square metres of its land toSavera Hotels Private Limited which subsequently alsoacquired 4684 square metres of land around the originalhotel. In 1972 125 rooms were added to the hotel and the original20 rooms were converted to build the hotel office andconference rooms. In fact when the company startedoperations in 1972 accessories like the swimming pool werealready constructed an idea which was not common with thehotel industry in Madras city then.Since then Savera Hotel has not looked back and has givenconsiderable thought and attention to renovation andadditions to amenities like Minar Restaurant an exclusiverestaurant serving Moghlai food which was added in 1975;Pallavi Theatre a fully equipped auditorium with completeaudio visual facilities and a 35mm projector commissionedin 1978; closed circuit television sets provided in all the125 rooms of the hotel in 1982; a completely renovatedpermit room called Bamboo Bar which was shifted from thebasement to the ground floor in 1985; keeping in mind theshift of the customers from the use of auditoriums tocompact conference halls the Pallavi Theater completelyrenovated and converted into a conference hall in 1991; andSweet Touch a pastry shop was also started in 1992.The partnership concern and the Company existedconcurrently till 1985 whence the partnership wasdissolved and Savera Enterprises Limited took over all theassets of the partnership concern. The same was done withthe objective of enjoying the benefits of the economies ofscale arising out of the consolidated business.On the financial front the Company has consolidated itsbusiness with every passing year which is reflected in thegrowth of its turnover from Rs. 275.57 lacs in 1990 to Rs.688.56 lacs in 1994. Profits have also moved up in tandemwith the turnover from Rs. 45.82 lacs in 1990 to Rs. 154.09lacs in 1994. The Equity Capital as at March 31 1994stood at Rs. 93.00 lacs. Subsequent to which the Companyissued 35340000 Bonus shares to the Promoters bycapitalising Free Reserves to the extent of Rs. 100.00 lacsand Revaluation Reserves to the extent of Rs. 253.40 lacsas result of which the share capital increased to Rs.446.40 lacs.