**Current Status:** Transitional / Non-Going Concern Phase **Primary Sector:** Hospitality & Real Estate (Pivoting) Reliable Ventures India Limited is currently navigating a critical structural transformation. Historically a dominant player in the Bhopal luxury hospitality market through the **Noor-Us-Sabah Palace**, the company has ceased its primary operations following the expiration of its land lease. The company is presently functioning as a holding entity focused on asset liquidation and the exploration of a new strategic entry into the hospitality and real estate sectors. --- ### Critical Operational Transition & Asset Realization The company’s legacy business model was disrupted by the expiration of the lease deed for its hotel land in **July 2022**. This has fundamentally altered the company's operating status: * **Lease Expiry & Impact:** Since **July 2022**, the company has been unable to conduct core hotel operations. For the **FY 2023-24** period, room occupancy remained at **0%**. * **Asset Liquidation Negotiations:** The company is currently in active negotiations with the lessor to transfer the **building structure** and all **movable/immovable assets** for a mutually agreed-upon consideration. * **Valuation Uncertainty:** Management has noted that no provision has been made for the **devaluation or deviation** in the value of these immovable assets. Consequently, potential losses are currently **understated** and cannot be quantified until negotiations reach a final settlement. * **Inter-Group Transactions:** The company has transitioned to a **Trading/Operating Segment** model. It currently provides assets and manpower to its group company, **Elegance Infratech Private Limited**, though auditors have noted a lack of formal agreements for these arrangements. --- ### Financial Performance Summary (FY 2023-24) The financial results reflect a company in a state of suspended core operations, relying on residual income streams. | Metric | Value | | :--- | :--- | | **Total Overall Revenue** | **Rs. 259.71 lacs** | | **Food & Beverage Income** | **Rs. 239.11 lacs** | | **Room Occupancy** | **0%** | | **Dividend Recommended** | **Nil** (FY 2023-24 and FY 2025-26) | | **Reporting Basis** | **Non-Going Concern** (as of May 2025) | --- ### Strategic Pivot: The "Bhopal Airport" Growth Thesis Despite the current cessation of hotel operations, management is targeting a re-entry into the market by leveraging Bhopal’s evolving infrastructure. * **New Development Target:** The company is exploring the acquisition of land to develop a **new hotel and banquet premises**. * **Strategic Location:** The primary focus is on the **Bhopal International Airport** corridor. Management anticipates a "Major Boom" in hospitality demand due to increased flight frequencies and the airport's international status. * **Target Demographics:** The future business model will pivot toward **Corporate**, **Conference**, and **Foreign Tourist** segments, moving away from purely leisure-based luxury. * **Legacy Brand Retention:** The company continues to operate the **Wonder Bread** brand, maintaining a market presence through two bakery and confectionery outlets. --- ### Financial Liabilities & Liquidity Profile The company manages its liquidity through related-party support and careful monitoring of short-term obligations. **Liquidity Position (as of March 31, 2024):** | Particulars (₹ in Lakhs) | On Demand | < 12 Months | > 1 Year | Total | | :--- | :--- | :--- | :--- | :--- | | **Borrowings** | - | **57.32** | **7.32** | **64.65** | | **Trade Payables** | - | **143.65** | - | **143.65** | | **Other Financial Liabilities** | - | **226.05** | - | **226.05** | | **Total Liabilities** | - | **427.02** | **7.32** | **434.34** | * **Credit Risk:** Management utilizes an **Expected Credit Loss (ECL)** model under **Ind AS 109**. Currently, the Board maintains that **no provision** is required for loans or trade receivables, as they are carried at fair value. * **Employee Obligations:** There is a notable funding gap in the **Gratuity (Defined Benefit Plan)**. As of the last reporting cycle, the **Net Employee Benefit Liability** stood at **₹119.39 Lakhs**, with plan assets covering only a fraction of the **₹152.99 Lakhs** obligation. --- ### Risk Factors & Audit Qualifications Investors should note several high-impact risks and transparency concerns highlighted in recent filings: * **Audit "Emphasis of Matter":** Auditors have flagged **unverified rental income** from movable assets leased to **Elegance Infratech Private Limited** due to a lack of supporting documentation. * **Unreconciled Balances:** Significant balances in **receivables, payables, and statutory submissions (GST, PF, ESIC, TDS)** remain unreconciled. The potential impact on the P&L is described as **considerable** but currently **unascertainable**. * **Market Competition:** The entry of new competitors with **100-room inventories** and the rise of corporate-owned guest houses pose significant threats to future market share. * **Macro-Economic Pressures:** Rising fuel prices and the slow pace of **State Government** infrastructure development are cited as external headwinds. * **Execution Uncertainty:** As of **September 2025**, management stated it does not yet find it "worthwhile" to conduct a formal risk analysis for the planned airport project, indicating a high degree of execution risk. --- ### Corporate Governance & Structure * **Ultimate Holding Company:** **Reliable Ventures India Limited**. * **Leadership:** Led by **Mr. Sikandar Hafiz Khan** (Chairman and Managing Director). * **Subsidiaries:** The company has **no subsidiaries or associates**. * **Sourcing Policy:** Maintains a commitment to **indigenous sourcing** for all raw materials and provisions. * **Compliance:** Operates a **Whistleblower Policy** and Vigil Mechanism, with legacy information hosted at *www.noorussabahpalace.co.in*.