Title: Analysis of Financial Statement

Submitted to: Dr.Akshita Arora

Submitted by :Anurag Srivastava (18BSP1509)

Company Description
Advani Hotels & Resorts India Ltd. engaged in the hotel business and related activities. It
manages 5-star deluxe luxury beach resort, 'The Ramada Caravel Beach Resort', with overlook
the landscaped gardens, the golf course and the Arabian Sea. The resort is located on the serene
white sands of Varco beach, Goa. The company was incorporated in 1987 and is based in
Mumbai

YEAR EVENTS 1987 - The company was incorporated on 13th March, at Mumbai and obtained
it's Certificate of commencement of business on 15th July. It was promoted in technical &
financial collaboration with Ramada (U.K.) by Sunder G. Advani & Haresh G. Advani. The
main objective of the company is to manufacture Setting up of a 5-Star Luxury resort.

1989 - The company undertook to set up a 5-Star luxury resort comprising 140 rooms (including
6 villas) in a terraced garden pattern in an estate on the Lova beach, Veria, Goa. Gherzi Eastern
Ltd; was to provide detailed architectural planning & designing of technical installation &
utilities, as also day-to-day supervision at the site throughout the implementation of the project.
The project was expected to be commissioned by October/November.

- Allotted 10,64,000 shares to promoters, directors, etc. and 1,63,919 shares to NRIs on
repatriation basis. 3,00,000 cumulative convertible Pref. shares (CCPs') were privatley placed
with UTI at par.
Company Description
The Leela Palaces, Hotels and Resorts, from the very start, has been on a continuous journey to
delight every guest offering memorable and magical stays that reflect the essence of India. The
signature promise that binds the group’s underlying philosophy is ‘Atithi Devo Bhava’, or ‘Guest
is God’, as laid down in the ancient Indian scriptures. And the commitment to stay true to this
guiding principle has resulted in outstanding experiences for our guests. Over the years, The
Leela has been recognized with numerous prestigious awards and accolades.

Currently, The Leela Palaces, Hotels and Resorts owns and operates five properties and the
others are managed. These properties are located in prime urban cities of Bangalore, Chennai,
Delhi, Gurgaon, Mumbai and New Delhi as well as India’s magical holiday destinations of Goa,
Kovalam and Udaipur. Our forthcoming launches in India will be - The Leela Palace Jaipur, The
Leela Palace Agra, The Leela Hotel and Residences Bhartiya City Bengaluru and The Leela
Lake Asthamudi Kerala.

The group has an alliance with “Global Hotel Alliance” to offer The Leela DISCOVERY to over
6 million customers and an International Sales & Marketing alliance with the “Preferred Hotels
& Resorts” group to help push our products to international global procurement heads in
multinational corporations / travel companies. The Leela Palace New Delhi, The Leela Palace
Udaipur, The Leela Palace Bengaluru, The Leela Palace Chennai and The Leela Goa are under
the “Ultra Travel Collection” brand. The Leela Palace New Delhi & The Leela Palace Udaipur
are also “Virtuoso” hotels.

Comparative Analysis

Now we are about to show the Revenue,Expenses,Profit and Loss, Assets and Liabilities of
Advani Hotel
 Advani Hotel

80

70

60

50
in crore

40

30

20

10

0
Total Revenue Total Profit and loss Assets Liabilities
Expenses
18-Mar 63.82 50.91 8.63 71.18 71.18
17-Mar 60.86 46.5 8.93 61.06 61.06
16-Mar 54.02 44.64 6.4 62.54 62.54
15-Mar 49.03 43.5 3.6 64.12 64.12
14-Mar 41.33 38.31 2.26 68.41 68.41

 We can see that the percentage change in revenue of the firm is higher
than the percentage change in expenses incurred.
 Graph shows that the company is making increasing return however is
have decrease in 2018 compare to 2017.
 Total revenue of the firm has been increasing as the years have
progressed
 Looking at the above we can say that the firm is doing well
 When we see towards the investor point of view, firm would attract
investors
 With the increase in total revenue of the firm total expenses has also
increased
 Hotel Leela Venture
7000

6000

5000
in crore

4000

3000

2000

1000

-1000
Total Revenue Total Expenses Profit and Loss Assets Liabilities
18-Mar 743.13 733.41 -23.22 4553.13 4553.13
17-Mar 739.22 754.68 -15.46 4734.49 4734.49
16-Mar 670.34 835.55 -180.16 4962.52 4962.52
15-Mar 762.01 1048.9 -415.88 5828.26 5828.26
14-Mar 768.18 1255.52 -441.47 6285.2 6285.2

 Revenue had declined in the initial years but in 2017 and 2018 it had
started increasing
 Expenses had also declined as the years goes on
 The firm incurred huge loss in 2014 however it started recovering from
loss in 2018
 Assets and Liabilities had also declined which means the firm is not
doing well
 Trend Analysis
120

100

80
Share price

60

40

20

0
2014 2015 2016 2017 2018
Hotel Leela Venture 20.4 21.3 16 20.9 17.05
Advani Hotels 60 55.45 50.35 78.35 50.5

 The Leela having an fluctuating curve as in 2014 it was 20.4 and after
that began to decline till 2018
 As the share price were declined for both the firms ,it is suposingly risky
for investor for invest.
 Profit & Loss Comparison
50

-50

-100

-150

-200
in crore

-250

-300

-350

-400

-450

-500
2014 2015 2016 2017 2018
Hotel Leela Venture -441.47 -415.88 -180.16 -15.46 -23.22
Advani Hotels 8.63 8.93 6.4 3.6 2.26

 The profits of Advani Hotel have declined year by year

 Leela Hotel had face huge loss in 2014,however it start recovering in
start recovering in 2017 where loss was minimum e.g,-15.46 but again in
2018 the loss increases upto -23.22
 Expense Comparison
1400

1200

1000

800
in crore

600

400

200

0
2014 2015 2016 2017 2018
Hotel Leela Venture 733.41 754.68 835.55 1048.9 1255.52
Advani Hotels 50.91 46.5 44.64 43.5 38.31

 Expenses of Leela Hotel had grown as the operation cost over the period
have being increasing
 Whereas the expenses of Advani Hotel had gradual declined therefore
affecting its productivity
 Revenue Comparison
900

800

700

600

500
in crore

400

300

200

100

0
2014 2015 2016 2017 2018
Advani Hotels 63.82 60.86 54.02 49.03 41.33
Hotel Leela Venture 743.13 739.22 670.34 762.01 768.18

 The revenue of Advani Hotel has a gradual declination

 However the revenue of Leela Hotel had a fluctuation figure it was
743.13 in 2014 but in 2016 it was 670.34 cr with a increase in768.18 in
2018.