Reliable Ventures India Reports ₹107.44 Lakh Loss for FY 2023 Amid Revenue Decline
Reliable Ventures India Limited, a hotel operations company, reported a net loss of ₹107.44 lakhs for FY 2023, compared to a profit of ₹366.47 lakhs in FY 2022. Revenue from operations declined to ₹621.54 lakhs from ₹1,825.19 lakhs. The company's hotel lease expired on May 30, 2023, prompting the Board to explore new investment opportunities near Bhopal Airport. Auditors highlighted concerns including expired lease terms, pending reconciliations, and statutory compliance issues. Despite challenges, the company continues to operate on a going concern basis, focusing on hotel operations within India.
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Reliable Ventures India Limited , a company primarily engaged in hotel operations, has reported a significant downturn in its financial performance for the fiscal year ending March 31, 2023. The company's financial results reveal a stark contrast to the previous year's figures, highlighting challenges in its core business.
Financial Performance
Reliable Ventures India Limited posted a net loss of ₹107.44 lakhs for the year ended March 31, 2023, a considerable shift from the profit of ₹366.47 lakhs recorded in the previous fiscal year. This reversal in fortunes was accompanied by a substantial decline in revenue from operations, which fell to ₹621.54 lakhs from ₹1,825.19 lakhs in the prior year.
The company's financial snapshot for FY 2023 paints a challenging picture:
| Financial Metric | FY 2023 (₹ in lakhs) | FY 2022 (₹ in lakhs) |
|---|---|---|
| Revenue from Operations | 621.54 | 1,825.19 |
| Total Income | 642.31 | Not Specified |
| Total Expenses | 749.76 | Not Specified |
| Net Profit/(Loss) | (107.44) | 366.47 |
Operational Challenges
The company's hotel lease expired on May 30, 2023, marking a significant turning point in its operations. In response to this development, the Board of Directors is actively exploring new investment opportunities for hotel and banquet premises near Bhopal Airport. This strategic move suggests the company's intent to maintain its presence in the hospitality sector despite the recent setbacks.
Auditor's Observations
While the auditors issued an unmodified opinion on the financial statements, they highlighted several areas of concern:
- Expired lease terms
- Pending reconciliation of receivables and payables
- Statutory compliance issues
These emphasis matters underscore the operational and financial challenges facing the company.
Business Outlook
Despite the expiry of its hotel lease, Reliable Ventures India Limited maintains that it operates on a going concern basis. The company continues to focus solely on hotel operations within India, indicating its commitment to the hospitality sector despite the recent financial downturn.
The significant drop in revenue and the shift from profit to loss highlight the volatile nature of the hospitality industry and the specific challenges faced by Reliable Ventures India Limited. As the company explores new investment opportunities near Bhopal Airport, stakeholders will be keenly watching how it navigates these challenges and repositions itself in the market.
The coming fiscal year will be crucial for Reliable Ventures India Limited as it seeks to address the issues raised by auditors, secure new operational premises, and work towards restoring profitability in a competitive and dynamic hospitality landscape.
Historical Stock Returns for Reliable Ventures
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.79% | +1.27% | -1.24% | -9.36% | -5.56% | +169.54% |
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