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Notes to Accounts of EIH Ltd.

Mar 31, 2014

1. (A) Contingent Liabilities and commitments (to the extent not provided) -

(i) Claims against the Company pending appellate/judicial decisions not acknowledged as debts :

(a) Value Added tax Rs. 38.76 Million (2013 - Rs. 20.08 Million)

(b) Income-tax Rs. 717.50 Million (2013 - Rs. 603.90 Million)

(c) tax deducted at source Rs. 28.87 Million (2013 - Rs. 14.16 Million)

(d) service tax Rs. 132.60 Million (2013 - Rs. 103.71 Million)

(e) property tax Rs. 50.43 Million (2013 - Rs. 5.93 Million)

(f) entertainment tax Rs. 4.31 Million (2013 - Rs. 10.45 Million)

(g) Customs duty Rs. 429.66 Million (2013 - Rs. 429.66 Million)

(h) employees state Insurance dues Rs. nil (2013 - Rs. 1.57 Million) (i) excise duty Rs. 99.07 Million (2013 - Rs. 99.07 Million) (j) others Rs. 13.48 Million (2013 - Rs. 15.36 Million)

(ii) Guarantees :

a. Guarantees given to Banks & Financial Institutions for Rs. 1,199.19 Million (2013 - Rs. 1,086.89 Million) against financial facilities availed by the subsidiary companies.

b. Counter guarantees issued to banks and remaining outstanding Rs. 199.45 Million (2013 - Rs. 32.72 Million).

(B) Commitments:

a. the estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 581.64 Million (2013 - Rs. 602.23 Million).

b. Investment commitment in subsidiary and joint venture companies Rs. 365.63 Million (2013 - Rs. 424.63 Million)

2. the Company sold part of its shareholding in Mercury Car rentals Limited (MCrL) to the other joint venture partner on 30.09.2013. the profit arising from this sale has been shown as exceptional item during the year ended 31.03.2014. As a result of this sale Company''s ownership interest in MCrL was reduced from 66.67% to 40% and MCrL ceased to be a subsidiary of the Company with effect from 30.09.2013. subsequently, with effect from 17.01.2014 MCrL was converted to a private limited company.

3. details of dues to Micro enterprises and small enterprises as Defined under Micro, small & Medium enterprises development Act, 2006 are given below. this is based on information made available to the Company.

4. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of Rs. 2,863.88 Million which is included in the original cost. the valuation was carried out by an approved valuer on the basis of depreciated replacement cost. the surplus was transferred to revaluation reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to Rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMrd Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of re.1 per annum as a condition precedent to the lease of the land for the Company''s hotel in Mumbai known as trident, Bandra Kurla.

(c) By virtue of West Bengal estate Land Acquisition Act, 1953, the Company became the owner of Leasehold Land of erstwhile the oberoi, Mount everest at darjeeling which has been included in Freehold Land during the year at a nominal value.

5. (a) depreciation has been provided for in the Accounts on "straight Line Method" at the rates prescribed in schedule XIV to the Companies Act, 1956 except for Specific assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) depreciation for the year as per Fixed Assets schedule (note-12) includes Rs. 29.99 Million (2013 - Rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from revaluation reserve Account.

6. Fixed Assets acquired under finance lease amounted to Rs. 369.20 Million (2013 - Rs. 391.32 Million) being assets acquired between 1st April, 2001 to 31st March, 2014. these include an amount of Rs. 26.03 Million (2013 - Rs. 32.74 Million) being assets acquired during the year under finance lease and capitalised in line with the requirements of Accounting standard (As-19). depreciation for the year includes an amount of Rs. 84.45 Million (2013 - Rs. 120.93 Million) being depreciation charged on these assets.

7. disclosures in respect of Company''s operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

8. In the case of Mashobra resort Limited ("MrL"), several disputes with the Government of Himachal pradesh, the joint venture partner, were referred by the High Court of Himachal pradesh on 17th december, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MrL, amongst others. the operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th december, 2003 and the hotel is being operated by MrL accordingly. the Company vide its letter dated 4th April, 2012 requested MrL to account for the entire amount of Rs. 1,361.93 Million provided to MrL upto 31st March, 2012 as ''Advance towards equity'', including Rs. 130.00 Million being the opening balance of ''Advance towards equity''. In view of the above, the Company has shown the said amount of Rs. 1,361.93 Million as ''Advance towards equity'' in its books.

An extraordinary general meeting of MrL was called on 14.10.2010 to pass a resolution for issue and offer of equity shares of MrL to the Company against the above advance for shares. the Government of Himachal pradesh obtained a stay order from the High Court of Himachal pradesh and the passing of the said resolution was deferred by the High Court. Consequently the issue of equity shares against the said advance has become subjudice and dependent upon the resolution of the legal cases.

ML is earning profits in the last couple of years and has proposed dividend for the year 2013-14. It also has accumulated funds of Rs. 310.48 Million in fixed deposit pursuant to Court direction.

9. (a) Inventory of provision, Wines & others includes stock of paper, Ink etc. at year end Rs. 69.66 Million (2013 - Rs. 56.92 Million) (b) Consumption of provisions, Wines and others includes consumption of paper, Ink etc. Rs. 356.74 Million (2013 - Rs. 325.62 Million)

10. segment reporting :

There are no reportable segments other than hotels as per Accounting standard (As-17) on segment reporting.

11. the previous year''s figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2013

1 EXTRAORDINARY ITEMS

L&T Bangalore Airport Hotel Limited (BAHL), a joint venture with L&T Urban Infrastructure Limited started construction of a hotel on the land alloted by Bangalore International Airport Limited (BIAL) pursuant to the Framework Agreement with them. The same had to be abandoned due to extraordinary circumstances involving refusal by Airport Authority of India (AAI) to permit the agreed height of the building as per Framework Agreement. BIAL also failed to honour their commitment to give additional land to compensate the reduction in height. BAHL went for arbitration proceedings and the Arbitral Tribunal gave the award directing BIAL to take over the incomplete building and pay compensation fixed by the Tribunal. BAHL has accounted for the award and the resultant loss in its account for the year ended 31.03.13. Consequently, there is a diminution in value of Company''s investments to the extent of Rs. 116.96 million, being loss due to extraordinary unusual events.

2. Contingent Liabilities and commitments (to the extent not provided)

(A) Contingent Liabilities not provided for in respect of :

(i) Claims against the Company pending appellate/judicial decisions not acknowledged as debts :

(a) Value Added Tax Rs. 20.08 Million (2012 - Rs. 25.92 Million)

(b) Income Tax Rs. 603.90 Million (2012 - Rs. 528.18 Million)

(c) Tax Deducted at Source Rs. 14.16 Million (2012 - Rs. 25.88 Million)

(d) Service Tax Rs. 103.71 Million (2012 - Rs. 64.03 Million )

(e) Property Tax Rs. 5.93 Million (2012 - Rs. 75.36 Million)

(f) Entertainment Tax Rs. 10.44 Million (2012 - Rs. 11.62 Million)

(g) Customs Duty Rs. 429.66 Million (2012 - Rs. 429.66 Million)

(h) Employees State Insurance dues Rs. 1.57 Million ( 2012 - Rs. 12.61 Million)

(i) Excise Duty Rs. 99.07 Million (2012 - Rs. 99.07 Million)

(j) Others Rs. 15.36 Million (2012 - Rs. 22.45 Million)

(ii) Guarantees :

a. Guarantees given to Banks & Financial Institutions for Rs. 1,089.89 Million (2012 - Rs. 1,591.00 Million) against financial facilities availed by the subsidiary companies.

b. Counter guarantees issued to banks and remaining outstanding Rs. 32.72 Million (2012 - Rs. 30.31 Million).

(B) Commitments:

a. The estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 602.23 Million (2012 - Rs. 340.23 Million).

b. Investment commitment in subsidiary companies Rs. 424.63 Million (2012 - Rs. 353.92 Million)

3. Details of dues to Micro Enterprises and Small Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 are given below. This is based on information made available to the Company.

4. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of Rs. 2,863.88 Million which is included in the original cost. The valuation was carried out by an approved valuer on the basis of depreciated replacement cost. The nature of indices was not mentioned in the report. The surplus was transferred to Revaluation Reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to Rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMRD Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of Rs. 1 per annum as a condition precedent to the lease of the land for the Company''s hotel in Mumbai known as Trident, Bandra Kurla.

5. (a) Depreciation has been provided for in the Accounts on "Straight Line Method" at the rates prescribed in Schedule XIV to the Companies Act, 1956 except for specific assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) Depreciation for the year as per Fixed Assets Schedule (Note-12) includes Rs. 29.99 Million (2012 - Rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from Revaluation Reserve Account.

6. Fixed Assets acquired under finance lease amounted to Rs. 391.32 Million (2012 - Rs. 390.41 Million) being assets acquired between 1st April, 2001 to 31st March, 2013. These include an amount of Rs. 32.74 Million (2012 - Rs. 44.32 Million ) being assets acquired during the year under finance lease and capitalised in line with the requirements of Accounting Standard (AS-19). Depreciation for the year includes an amount of Rs. 120.93 Million (2012 - Rs. 103.43 Million) being depreciation charged on these assets.

7. Disclosures in respect of Company''s operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

a) The Company gives shops located at various hotels on operating lease arrangements. These leases are generally not non- cancellable in nature and may generally be terminated by either party by serving a notice. some shops have been given under non-cancellable operating lease, the future minimum lease payments recoverable by the company are as under:-

b) The Company has entered into operating lease arrangements primarily for office premises, site offices, airport/flight services and residential premises for its employees. these leases are generally not non-cancellable in nature and may generally be terminated by either party by serving a notice. the future minimum lease payments payable by the company for office space taken under non-cancellable operating lease, are as under:-

8. In the case of Mashobra Resort Limited ("MRL"), several disputes with the Government of Himachal Pradesh, the joint venture partner, were referred by the High Court of Himachal Pradesh on 17th December, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MRL, amongst others. The operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th December, 2003 and the hotel is being operated by MRL accordingly. The Company vide its letter dated 4th April, 2012 requested MRL to account for the entire amount of Rs. 1,361.93 Million provided to MRL upto 31st March, 2012 as ''Advance Towards Equity'', including Rs. 130.00 Million being the opening balance of ''Advance Towards Equity''. In view of the above, the Company has shown the said amount of Rs. 1,361.93 Million as ''Advance Towards Equity'' in its books.

An extraordinary general meeting of MRL was called on 14.10.2010 to pass a resolution for issue and offer of equity shares of MRL to the Company against the above advance for shares. The Government of Himachal Pradesh obtained a stay order from the High Court of Himachal Pradesh and the passing of the said resolution was deferred by the High Court. Consequently the issue of equity shares against the said advance has become subjudice and dependent upon the resolution of the legal cases.

MRL is earning profits in the last couple of years and has accumulated funds of Rs. 247.51 Million in fixed deposit pursuant to Court direction.

9. The Company has calculated its tax liability after considering Minimum Alternate Tax (MAT). MAT credit entitlement has been shown under Long Term Loans & Advances.

10. (a) Inventory of Provision, Wines & Others includes Stock of Paper, Ink etc. at year end Rs. 56.92 Million (2012 - Rs. 58.42 Million)

(b) Consumption of Provisions, Wines and Others includes consumption of Paper, Ink etc. Rs. 325.62 Million (2012 - Rs. 355.60 Million)

11. segment Reporting :

There is no reportable segment other than hotel as per Accounting standard (As-17) on segment Reporting.

a) Contingent liability that EIH Limited has incurred in relation to its interests in joint ventures and its share in each of the contingent liabilities which have been incurred jointly with other venturers :-

Guarantees given to Banks & Financial Institutions for Rs. nil (2012 - Rs. 610.00 Million) against financial facilities availed by the jointly controlled entities.

b) EIH Limited''s share of the contingent liabilities of the joint ventures themselves: Rs. 141.55 Million (2012 - Rs. 12.98 Million)

c) EIH Limited is not liable for the liabilities of the other venturers of any joint venture.

d) EIH Limited has a capital commitment for Rs. 260.20 Million (2012 - Rs. nil) in relation to its interest in joint ventures and there are no other capital commitments that have been incurred jointly with other venturer.

e) EIH Limited''s share of capital commitments of the joint ventures themselves amounts to Rs. 171.05 Million (2012 - Rs. 162.18 Million).

12. The previous year''s figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2012

1. Contingent Liabilities and commitments (to the extent not provided)

(A) Contingent Liabilities not provided for in respect of :

(i) Claims against the Company pending appellate/judicial decisions :

(a) Value Added tax Rs. 25.92 Million (2011 - Rs. 31.17 Million)

(b) Income tax Rs. 528.18 Million (2011 - Rs. 593.62 Million)

(c) Tax deducted at source Rs. 25.88 Million (2011 - Rs. 14.62 Million)

(d) Service tax Rs. 64.03 Million (2011 - Rs. 50.38 Million )

(e) Property tax Rs. 75.36 Million (2011 - Rs. 7.40 Million)

(f) Entertainment tax Rs. 11.62 Million (2011 - Rs. 12.93 Million)

(g) Customs duty Rs. 429.66 Million (2011 - Rs. 429.66 Million) (h) esi dues Rs. 12.61 Million ( 2011 - Rs. 12.22 Million)

(i) Excise duty Rs. 99.07 Million (2011 - Rs. 35.33 Million) (j) others Rs. 22.45 Million (2011 - Rs. 14.92 Million)

(ii) Guarantees :

a. Guarantees given to Banks & Financial institutions for Rs. 1,591.00 Million (2011 - Rs. 1,947.00 Million) against financial facilities availed by the subsidiary companies.

b. Counter guarantees issued to banks and remaining outstanding Rs. 30.31 Million (2011 - Rs. 128.91 Million).

(B) Commitments:

a. The estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 340.23 Million (2011 - Rs. 357.28 Million).

b. Investment in EIH international Limited, a wholly owned subsidiary Rs. 353.92 Million (2011 - Rs. Nil)

2. The Company issued 178,615,442 equity shares of Rs. 2 each on rights basis at a premium of Rs. 64 per share. These shares were allotted on 26th March, 2011 and the total proceeds of the rights issue were Rs. 11,788.62 Million the Gratuity expenses have been recognised in "Contribution to provident Fund and other Funds" and Leave encashment in "salaries & Wages".

3. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of Rs. 2,863.88 Million which is included in the original cost. The valuation was carried out by an approved valuer on the basis of depreciated replacement cost. the nature of indices was not mentioned in the report. The surplus was transferred to revaluation reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to Rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMrd Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of Rs. 1 per annum as a condition precedent to the lease of the land for the Company's hotel in Mumbai known as trident, Bandra Kurla.

4. (a) depreciation has been provided for in the Accounts on "straight Line Method" at the rates prescribed in schedule XIV to the Companies Act, 1956 except for specific assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) Depreciation for the year as per Fixed Assets schedule (Note-12) includes Rs. 29.99 Million (2011 - Rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from revaluation reserve Account.

5. Fixed Assets acquired under finance lease amounted to Rs. 390.41 Million (2011 - Rs. 379.52 Million) being assets acquired between 1st April, 2001 to 31st March, 2012. these include an amount of Rs. 44.32 Million (2011 - Rs. 56.30 Million) being assets acquired during the year under finance lease and capitalised in line with the requirements of Accounting standard (As-19). depreciation for the year includes an amount of Rs. 103.43 Million (2011 - Rs. 48.46 Million) being depreciation charged on these assets.

6. Disclosures in respect of Company's operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

(a) General description of the Company's operating lease arrangements :

The Company has entered into operating lease arrangements primarily for office premises, site offices, airport/fight services and residential premises for its employees. some of the significant terms and conditions of the arrangements are :

– Agreements are not non-cancellable in nature and may generally be terminated by either party by serving a notice;

– The lease arrangements which are not non cancellable are generally renewable by mutual consent on mutually agreeable terms.

(b) The Company has given shops on rental basis which are not non cancellable and can be terminated by either party by serving a notice.

(c) Rent in respect of the above is charged/credited to the statement of profit and Loss.

7. In the case of Mashobra resort Limited ("MRL"), several disputes with the Government of Himachal pradesh, the joint venture partner, were referred by the High Court of Himachal pradesh on 17th December, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MRL, amongst others. the operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th December, 2003 and the hotel is being operated by MRL accordingly. the Company vide its letter dated 4th April, 2012 requested MRL to account for the entire amount of Rs. 1,361.93 Million provided to MRL upto 31st March, 2012 as 'Advance towards equity', including Rs. 130.00 Million being the opening balance of 'Advance towards equity'. In view of the above, the Company has shown the said amount of Rs. 1,361.93 Million as 'Advance towards equity' in its books.

An extraordinary general meeting of MRL was called on 14.10.2010 to pass a resolution for issue and offer of equity shares of MRL to the Company against the above advance for shares. the Government of Himachal pradesh obtained a stay order from the High Court of Himachal pradesh and the passing of the said resolution was deferred by the High Court. Consequently the issue of equity shares against the said advance has become subjudice and dependent upon the resolution of the legal cases.

However, MRL has now started earning profits in the last couple of years and has accumulated funds of Rs. 184.52 Million in fixed deposit pursuant to Court direction.

7. The Company has calculated its tax liability after considering Minimum Alternate tax (MAT). this has resulted in an additional expense of Rs. 260.24 Million and balance carried forward is to be set off against any future liability. MAT credit entitlement has been shown under Long term Loans & Advances.

Auditors remuneration excludes Rs. 6.62 Million paid to auditors during the year ended 31st March, 2011 for services rendered in connection with the rights issue and debited to securities premium Account.

8. The Company and L&T urban infrastructure Limited, the two joint venture partners in L&T Bangalore Airport Hotel Limited (BAHL), had decided to terminate the joint venture, by transfer of the shareholding to a prospective buyer. The negotiation with the buyer is still continuing. in the opinion of the Company, the cost at which the investment in BAHL appears in the Balance sheet of the Company, will be recovered in full.

a) Contingent liability that EIH Limited has incurred in relation to its interests in joint ventures and its share in each of the contingent liabilities which have been incurred jointly with other venturers :- Guarantees given to Banks & Financial institutions for Rs. 610.00 Million (2011 - Rs. 1,024.00 Million) against financial facilities availed by the jointly controlled entities.

b) EIH Limited's share of the contingent liabilities of the joint ventures themselves: Rs. 12.98 Million (2011 - Rs. 39.95 Million)

c) EIH Limited is not liable for the liabilities of the other venturers of any joint venture.

d) There are no capital commitments of EIH Limited in relation to its interest in joint ventures and there are no capital commitments that have been incurred jointly with other venturer.

e) EIH Limited's share of capital commitments of the joint ventures themselves amounts to Rs.162.18 Million (2011 - Rs. 414.65 Million).

9. The previous year's figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2011

1. the estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 357.28 Million (2010 - Rs. 597.03 Million).

2. Contingent Liabilities not provided for in respect of -

(i) Claims against the Company pending appellate/judicial decisions :

(a) sales tax Rs. 31.17 Million (2010 - Rs. 24.64 Million)

(b) income tax Rs. 593.62 Million (2010 - Rs. 572.07 Million)

(c) tax deducted at source Rs. 14.62 Million (2010 - Rs. Nil)

(d) service tax Rs. 50.38 Million (2010 - Rs. Nil)

(e) property tax Rs. 7.40 Million (2010 - Rs. 170.64 Million)

(f) entertainment tax Rs. 12.93 Million (2010 - Rs. 9.65 Million)

(g) Customs duty Rs. 429.66 Million (2010 - Rs. 452.50 Million) (h) esi dues Rs. 12.22 Million (2010 - Rs. 11.12 Million)

(i) excise duty Rs. 35.33 Million (2010 - Rs. 19.49 Million)

(j) others Rs. 14.92 Million (2010 - Rs. 21.47 Million)

(ii) Guarantees given to Banks & Financial institutions for Rs. 1,947.00 Million (2010 - Rs. 2,249.50 Million) against financial facilities availed of by the subsidiary, joint venture and associate companies.

(iii) Counter guarantees issued to banks and remaining outstanding Rs. 128.91 Million (2010 - Rs. 14.27 Million)

3. the Company issued 178,615,442 equity shares of Rs. 2 each on rights basis at a premium of Rs. 64 per share. these shares were allotted on 26th March, 2011 and the total proceeds of the rights issue was Rs. 11,788.62 Million. Accordingly, share Capital of the Company has gone up by Rs. 357.23 Million and securities premium has gone up by Rs. 11,431.39 Million. expenses incurred in relation to the rights issue, Rs. 111.14 Million have been written off against securities premium.

4. (i) the Company accounted for Rs. 967.60 Million and Rs. 526.76 Million under the head "other income” during the Financial Years 2008-09 and 2009-10 respectively, on estimated basis on account of claims for loss of Profit due to business interruption caused by terrorist attack on 26th November, 2008 in Mumbai. during the year, the insurance Company fnally assessed the claim at Rs. 1,124.53 Million. Accordingly the resultant defcit of Rs. 369.83 Million has been treated as exceptional loss.

(ii) the claim of the Company for material damage caused by terrorist attack on 26th November, 2008 in Mumbai has been assessed by the insurance Company at Rs. 174.22 Million on replacement value basis. the net book value of the assets damaged was Rs. 107.17 Million. the resultant surplus of Rs. 67.05 Million has been treated as exceptional income.

5. details of dues to Micro enterprises and small enterprises as defned under Micro, small & Medium enterprises development Act, 2006 are given below. this is based on information made available to the Company.

6. Fixed deposits & 7 Year National savings Certifcates aggregating to Rs. 13.38 Million (2010 - Rs. 20.17 Million) have been lodged with the Banks/Government Authorities for obtaining guarantees or as security deposits.

7. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of Rs. 2,863.88 Million which is included in the original cost. the valuation was carried out by an approved valuer on the basis of depreciated replacement cost. the nature of indices was not mentioned in the report. the surplus was transferred to revaluation reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to Rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMrd Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of re. 1 per annum as a condition precedent to the lease of the land for the Companys hotel in Mumbai known as trident, Bandra Kurla.

8. (a) depreciation has been provided for in the Accounts on "straight Line Method” at the rates prescribed in schedule xiv to the Companies Act, 1956 except for specifc assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) depreciation for the year as per Fixed Assets schedule (schedule-6) includes Rs. 29.99 Million (2010 - Rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from revaluation reserve Account.

9. Fixed Assets acquired under fnance lease amounted to Rs. 379.52 Million (2010 - Rs. 346.77 Million) being the assets acquired between 1st April, 2001 to 31st March, 2011. these include an amount of Rs. 56.30 Million (2010 - Rs. 32.39 Million) being assets acquired during the year under fnance lease and capitalised in line with the requirements of Accounting standard (As-19). depreciation for the year includes an amount of Rs. 48.46 Million (2010 - Rs. 42.08 Million) being depreciation charged on these assets.

10. disclosures in respect of Companys operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

(a) General description of the Companys operating lease arrangements : the Company has entered into operating lease arrangements primarily for offce premises, site offces, airport/fight services and residential premises for its employees. some of the signifcant terms and conditions of the arrangements are :

- agreements are not non-cancellable in nature and may generally be terminated by either party by serving a notice;

- the lease arrangements which are not non-cancellable are generally renewable by mutual consent on mutually agreeable terms.

(b) the Company has given shops on rental basis which are not non cancellable and can be terminated by either party by serving a notice.

(c) rent in respect of the above are charged/credited to the Profit and Loss Account.

11. investments held by the Company which are long term in nature are stated at cost unless there is any permanent diminution in value where provision for diminution is made on individual investment basis. earnings on investments are accounted for on accrual basis.

12. inventories are valued at cost which is based on First-in-First-out method or net realisable value, whichever is lower. unserviceable / damaged / discarded stocks and shortages are charged to the Profit and Loss Account.

13. in the case of Mashobra resort Limited ("MrL”), several disputes with the Government of Himachal pradesh, the joint venture partner, were referred by the High Court of Himachal pradesh on 17th december, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MrL, amongst others. the operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th december, 2003 and the hotel is being operated by MrL accordingly. the Company vide its letter dated 4th April, 2011 requested MrL to account for the entire amount of Rs. 1,293.03 Million provided to MrL upto 31st March, 2011 as ‘Advance towards equity, including Rs. 130.00 Million being the opening balance of ‘Advance towards equity. in view of the above, the Company has shown the said amount of Rs. 1,293.03 Million as ‘Advance towards equity in its books. Considering this and the intrinsic value of the hotel property, the ‘Advance towards equity in MrL has been considered good.

14. interest debited to the Profit and Loss Account is net of interest capitalised amounting to Rs. 17.73 Million (2010 - Rs. 253.14 Million).

15. the Company has calculated its tax liability after considering Maximum Alternative tax (MAt). this has not resulted in an additional expense as MAt is to be set off against any future tax liability and accordingly MAt credit entitlement has been shown under Loans & Advances in the Balance sheet.

16. the Company is not required to give any quantitative and value-wise information in respect of purchase, consumption, turnover, stocks etc. as the same is exempted vide Notifcation No. s.o. 301(e) dated 8th February, 2011 issued under section 211(3) of the Companies Act, 1956 by the Ministry of Corporate Affairs, Government of india.

17. in respect of printing business, the installed printing capacity as on 31st March, 2011 was 850 Million standard impressions (2010 – 850 Million). the actual production during the year was 690 Million standard impressions (2010 – 575 Million). the installed printing capacity and actual production have have been certifed by the management and relied upon by the Auditors, being a technical matter.

18. (a) inventory of provision, Wines & others includes stock of paper, ink etc. at year end Rs. 57.19 Million (2010 - Rs. 50.87 Million)

(b) Consumption of provisions, Wines and others includes consumption of paper, ink etc. Rs. 382.28 Million (2010 - Rs. 402.27 Million)

19. the Company and L&t urban infrastructure Limited, the two joint venture partners in L&t Bangalore Airport Hotel Limited (BAHL), have decided, subsequent to Balance sheet date, to terminate the joint venture, by transfer of the shareholding to a prospective buyer. in the opinion of the Company, the cost at which the investment in BAHL appears in the Balance sheet of the Company will be recovered in full.

20. the details of transactions entered into with related parties during the year are as follows:

NAMES OF THE RElATED PARTIES

(I) Subsidiary companies country of

Incorporation

(i) Mercury Car rentals Limited india

(ii) Mashobra resort Limited india

(iii) oberoi Kerala Hotels and resorts Limited india

(iv) Mumtaz Hotels Limited india

(v) eiH Flight services Limited Mauritius

(vi) eiH international Ltd. British virgin islands

(vii) eiH Holdings Limited British virgin islands

(viii) eiH Marrakech Ltd. British virgin islands

(ix) J&W Hongkong Ltd Hongkong

(x) oberoi turtle Bay Ltd. Mauritius

(xi) eiHH Corporation Ltd. Hongkong

(xii) eiH investments Nv Netherlands Antilles

(xiii) eiH Management services Bv the Netherlands

(xiv) pt Widja putra Karya indonesia

(xv) pt Waka oberoi indonesia indonesia

(xvi) pt Astina Graha ubud indonesia

(II) Associates & Joint Ventures

(i) EIH Associated Hotels Limited india

(ii) L & t Bangalore Airport Hotel Limited india

(iii) Golden Jubilee Hotels Limited india

(iv) oberoi Mauritius Ltd. British virgin islands

(III) Enterprises in which key Management Personnel have signifcant infuence

(i) oberoi Hotels private Limited india

(ii) oberoi properties private Limited india

(iii) oberoi Holdings private Limited india

(iv) oberoi investments private Limited india

(v) oberoi Buildings and investments private Limited india

(vi) oberoi plaza private Limited india

(vii) Bombay plaza private Limited india

(viii) oberoi Leasing & Finance Company private Limited india

(ix) Aravali polymers LLp india

(x) island Hotel Maharaj Limited india

(IV) key Management Personnel

(i) Mr. p.r.s. oberoi - Chairman & Chief executive

(ii) Mr. s.s. Mukherji - vice Chairman

(iii) Mr. v.s. oberoi - Chief operating officer and Joint Managing director

(iv) Mr. A.s. oberoi - Chief planning officer and Joint Managing director

a) Contingent liability that eiH Limited has incurred in relation to its interests in joint ventures and its share in each of the contingent liabilities which have been incurred jointly with other venturers :- Guarantees given to Banks and Financial institutions for Rs. 1,024.00 Million (2010 - Rs. 1,150.00 Million) against financial facilities availed by the jointly controlled entities.

b) eiH Limiteds share of the contingent liabilities of the joint ventures themselves : Rs. 39.95 Million (2010 - Rs. 11.87 Million).

c) eiH Limited is not liable for the liabilities of the other venturers of any joint venture.

d) there are no capital commitments of eiH Limited in relation to its interest in joint ventures and there are no capital commitments that have been incurred jointly with other venturers.

e) eiH Limiteds share of capital commitments of the joint ventures themselves amounts to Rs. 414.65 Million (2010 - Rs. 209.42 Million).

21. the previous years fgures have been regrouped, rearranged and reclassifed wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2010

1. (a) The oberoi, Mumbai was operational in the previous year upto 25th November, 2008. the hotel remained out of operation throughout the fnancial year ended 31st March, 2010.

(b) Trident, Bandra Kurla, Mumbai started operation from 1st december, 2009.

(c) Trident, Nariman point, Mumbai remained out of operation from 26th November, 2008 upto 20th december, 2008.

2. The estimated amount of contracts remaining to be executed on capital account and not provided for net of advances rs. 597.03 Million (2009-rs. 423.65 Million).

3. Contingent Liabilities not provided for in respect of -

(i) Claims against the Company pending appellate/judicial decisions :

(a) Sales tax rs. 24.64 Million (2009-rs. 24.52 Million)

(b) Income-tax rs. 572.07 Million (2009-rs. 394.50 Million)

(c) property tax rs. 170.64 Million (2009-rs. 217.58 Million)

(d) Entertainment tax rs. 9.65 Million (2009-rs. 9.13 Million)

(e) Customs duty rs. 452.50 Million (2009-rs. 452.50 Million)

(f) Esi claims rs. 11.12 Million (2009-rs. 3.13 Million)

(g) Excise duty rs. 19.49 Million (2009-rs. 9.86 Million) (h) others rs. 21.47 Million (2009-rs. 14.59 Million)

(ii) Guarantees given to Banks & Financial institutions for rs. 2,249.50 Million (2009-rs. 1,349.50 Million) against fnancial facilities availed of by the subsidiary, joint venture and associate companies.

4. The Company is adequately insured against damage caused by terrorist attack on its two Mumbai Hotels, i.e., trident, Nariman point, Mumbai and the oberoi, Mumbai. the insurance coverage is on replacement value basis. No fnal adjustment has been made in the books of account in respect of damage to the properties pending settlement of claim.

The Company has recognised rs. 526.76 Million (2009-rs. 967.60 Million) as income during the fnancial year on account of insurance claim for losses due to business interruption in respect of trident, Nariman point, Mumbai and the oberoi, Mumbai. Against the total claim of rs. 1,494.36 Million recognised as income by the Company, the insurance company has paid rs. 800 Million. Final settlement of the claim is pending.

5. There are no reportable amount of dues on account of principal and interest or any such payments during the year as required by Micro, small and Medium enterprises development Act, 2006, in respect of Micro enterprises and small enterprises as defned in the Act. this is based on information made available to the Company by such enterprises.

6. Fixed deposits & 7 Year National savings Certifcate aggregating to rs. 20.17 Million (2009-rs. 23.13 Million) have been lodged with the Banks/Government Authorities for obtaining guarantees or as security deposits.

7. Defned Beneft plans/Long term Compensated Absences on 31st March, 2010 as per Actuarial valuations using projected unit Credit Method and recognised in the Financial statements in respect of employee Beneft schemes:

8. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of rs. 2,863.88 Million which is included in the original cost. the valuation was carried out by an approved valuer on the basis of depreciated replacement cost. the nature of indices was not mentioned in the report. the surplus was transferred to revaluation reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMrd Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of re. 1 per annum.

9. (a) Depreciation has been provided for in the Accounts on “straight Line Method” at the rates prescribed in schedule xiv to

The Companies Act, 1956 except for specifc assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) Depreciation for the year as per the Fixed Assets schedule (schedule-6) includes rs. 29.99 Million (2009-rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from the revaluation reserve Account.

10. Fixed Assets acquired under fnance lease amounted to rs. 346.77 Million (2009-rs. 345.01 Million) being the assets acquired between 1st April, 2001 to 31st March, 2010. these include an amount of rs. 32.39 Million (2009-rs. 272.68 Million) being assets acquired during the year under fnance lease and capitalised in line with the requirements of Accounting standard (As-19). depreciation for the year includes an amount of rs. 42.08 Million (2009-rs. 23.64 Million) being depreciation charged on these assets.

11. Disclosures in respect of Companys operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

(a) General description of the Companys operating lease arrangements :

The Company has entered into operating lease arrangements primarily for offce premises, site offces, airport/fight services and residential premises for its employees. some of the signifcant terms and conditions of the arrangements are :

- Agreements may generally be terminated by either party by serving a notice;

- The lease arrangements are generally renewable on the expiry of the lease period subject to mutual agreement;

- The Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

(b) Rent in respect of the above are charged to the proft and Loss Account.

12. Investments held by the Company which are long term in nature are stated at cost unless there is any permanent diminution in value where provision for diminution is made on individual investment basis. earnings on investments are accounted for on accrual basis.

13. Inventories are valued at cost which is based on First-in-First-out method or net realisable value, whichever is lower. unserviceable / damaged / discarded stocks and shortages are charged to the proft and Loss Account.

14. In the case of Mashobra resort Limited (“MrL”), several disputes with the Government of Himachal pradesh, the joint venture partner, were referred by the High Court of Himachal pradesh on 17th december, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MrL, amongst others. the operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th december, 2003 and the hotel is being operated by MrL accordingly. the Company, by its letter dated 15th June, 2009, requested MrL to convert rs. 1,005.63 Million of loans provided by the Company to MrL into its equity. MrL is in the process of holding the meeting of the Board of directors for which it has requested the nominees of Himachal pradesh Government on the Board, for a suitable date for holding the meeting which is still awaited. the Company has now been legally advised to take necessary steps in this matter. in view of the above and the proposed conversion of loan into equity, loan to MrL has been considered good as the net worth of MrL will become positive on conversion.

15. Interest debited to the proft and Loss Account is net of interest capitalised amounting to rs. 253.14 Million (2009-rs. 218.34 Million).

a) Contingent liability that eiH Limited has incurred in relation to its interests in joint ventures and its share in each of the contingent liabilities which have been incurred jointly with other venturers :- Guarantees given to Banks and Financial institutions for rs. 1,150.00 Million (2009-rs. 1,110.00 Million) against fnancial facilities availed of by jointly controlled entities.

b) EIH Limiteds share of the contingent liabilities of the joint ventures themselves : rs. 11.87 Million (2009-rs. 27.61 Million).

c) EIH Limited is not liable for the liabilities of the other venturers of any joint venture.

d) There are no capital commitments of eiH Limited in relation to its interest in joint ventures and there are no capital commitments that have been incurred jointly with other venturers.

e) EIH Limiteds share of capital commitments of the joint ventures themselves amounts to rs. 209.42 Million (2009-rs. 295.41 Million).

f) CCA Leisure services private Limited has ceased to be a jointly controlled entity during the year.

16. The previous years fgures have been regrouped, rearranged and reclassifed wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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