Oriental hotels limited company’s twenty-fifth Annual general meeting was held on September 29, 2022 at Rastriya Sabha Griha, Pradarshini Marg, Kathmandu, and was chaired over by the company's Chairperson, Subhadra Shrestha.
The Annual balance sheet for the fiscal year ending 2079 Ashadh, as well as the profit and loss account and statement of cash flow for the fiscal year 2078/79, were presented at the general meeting, along with the Board of Directors' report and the audit report. The general meeting approved all of these reports.
During fiscal year 2078/79, the hotel's total revenue was Rs. 622.2 million, its total operating expenditure was Rs 590 million, its operating profit was Rs 32.2 million, and there was a net loss of Rs 24.6 million. After all other expenses have been deducted during fiscal year 2077/78, total revenue was only Rs. 131.2 million, with a net loss of Rs 203.6 million. The primary reasons for this significant decrease in loss are the weakening of the covid-19's impact and an increase in tourist inflow.
The hospitality sector suffered greatly in the previous two years as a result of the impact of Covid-19, which reduced tourist inflow to an insignificant level, and government restrictions on use of hotel premises for all types of meetings, conferences, seminars, and trainings, as well as restrictions on the use of swimming pool and health club. However, the future outlook for this sector appears promising, as airliners have increased flight frequency, resulting in an increase in tourist inflow.
There was no dividend declared for fiscal year 2078/79 due to a net loss of Rs. 24.6 million. The General Meeting was also updated on the status of the new ten-story building, which is expected to be completed within the next 18 months.
The General Meeting was also informed that the company has been continuously improving its managerial capabilities, that it subscribes to transparency principles, and that it publishes quarterly and annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and Nepal Financial Reporting Standards (NFRS).
At the conclusion of the meeting, the Chairperson thanked all shareholders and stakeholders for their continued support and promised to follow through on suggestions made by shareholders at the General Meeting.
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