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Notes to Accounts of India Tourism Development Corporation Ltd.

Mar 31, 2016

Notes: -

Investment of Rs. 1,060.58 lakh (Previous Year Rs. 1,060.58 lakh) in some of the above subsidiary companies, have been evaluated at cost despite significant accumulated losses. The Corporation is accounting for income from these companies since 2008-09 (viz. management fees 8t interest on loans given) to actual realization / to the extent of deposit of taxes deducted at source in view of the repayment not being commensurate with the amount charged to them. The accounts recoverable as listed above have, however, been considered good of recovery keeping in view of the long term relationship with those companies and the intrinsic value of the assets held by the companies.

(i) Others include FDRs Rs. 1.58 lakh (Previous Year Rs. 1.58 lakh) deposited with RPFC Jaipur.

(ii) Others include Rs. 166.55 lakh paid to the workers of the contractor towards wages upto March, 2016, as per the directions of the Hon’ble High Court in the matter filed by 60 workers of the contractors. The final outcome of the case is awaited.

Notes:-

(i) Pending execution of fresh license Agreements, income from Licence fees (from continuing licencees) has been accounted for on provisional basis and/or based on the earlier license agreements.

(ii) In case of Vigyan Bhawan, New Delhi which has been working for providing catering services under a contract with Director of Estates, New Delhi which ended on 17.11.2015. Further renewal is under process and pending renewal revenue till year-end has been recognised on the basis of above agreement.

Out of the balance amount of Rs. 4.38 lakh (Previous year Rs. 4.73 lakh) of Deferred Government Grants from the Ministry of Tourism for the renovation/up gradation of properties, a sum of Rs. 0.75 lakh incurred during the year, including adjustments relating to earlier years Rs. 0.66 lakh (Previous year Rs. 0.35 lakh) has been charged to the respective head of expenditure. The amount equivalent to the grant related cost incurred/ adjusted during the year has accordingly been recognized as income. The balance of Rs. 3.63 lakh (Previous Year Rs. 4.38 lakh) at the close of the year has been presented in the accounts as Deferred Government grant below Reserve and Surplus.

Cost of consumption of Raw material, other materials sold and services rendered includes cost of food consumed by operational staff at catering establishments (amount not ascertained).

1. The disclosure relating to AS-15 (Revised) - Employees Benefits:-

a) Provident Fund - 12% of Basic (including dearness pay) plus Dearness Allowance, contributed to Recognized Provident Fund

b) Leave Encashment -Payable on separation to eligible employees who have accumulated earned leave

c) Gratuity- Payable on separation @ 15 days pay for each completed year of service to eligible employees who render continuous service for 5 years or more. Maximum limit is Rs. 10.00 lakh.

In terms of Accounting Standard 15 (Revised) on Employees Benefits, the following disclosure sets out the status as required:-

Note - 2

Contingent Liabilities and Commitments

Note No. (1): Contingent Liabilities at SI. No. A(a)

(i), A(a)(iii) & A(a)(iv) are dependent upon court decision/out of court settlement/disposal of appeal etc.

Note No. (2): Amount indicated as Contingent liability/Claims against the Corporation only reflect basic value. Legal and other costs being indeterminable at this stage are not considered.

Note No. (3): Contingent liabilities at A(a)(i) above includes Rs. 4,858.04 lakh in respect of matters under arbitration with suppliers in respect of works relating to supply of furniture and furnishing of flats on behalf of Delhi Development Authority (DDA). However, the MoU with DDA indicates that the payments of decreed amounts, if any, as decided by arbitrator, court of law will be made by DDA.

C. The Corporation had taken a property on rent from the Custodian of Enemy Property in 1965. Subsequently, the said property was released in favour of present owner by the Custodian. The owner had filed a suit for recovery of the possession of the said property. The Hon’ble High Court decided the matter in favour of the owner and the Corporation was directed to vacate the property. The Hon’ble high court also fixed the rent @ Rs. 30,000/- for the month of January 1980 only on lumpsum/adhoc basis along with interest and also appointed a Local Commissioner to determine the amount of rent for the period from 1.2.1980 till date of handing over the possession of the property. Aggrieved by the decision, a Special Leave Petition before the Hon’ble Supreme Court was filed which was dismissed by the court & upheld the earlier judgment of the Hon’ble High Court. Accordingly the premises was vacated & possession handed over to the owner on 28.02.2007. The Local Commissioner has rejected the claim of approx Rs. 300 crore of Shri Anil Kumar Khanna & Ors on account of mesne profits and has calculated the mesne profit by taking the base rent of Rs. 9.37 per sq ft per month with the increase of 15 % every year and interest @ 12 % p.a. as mentioned in the Report. The total amount payable as per Local Commissioner order comes to Rs. 12,15,55,555/- as on February 2007 Further interest @ 12 % p.a. is payable, as per report, till the payment. Aggrieved by this decision of the local commissioner ITDC has filed its Objections to High Court. The Owners / Plaintiffs have also filed Objections to the Report wherein they have claimed Rs. 2,96,23,97,284/- w.e.f. 01.02.1980 till the date of possession of the property i.e. 28.02.2007. The H’ble court vide judgment dt. 17.7.2015 concluded that the rate of mesne profits adopted by the Local Commissioner is in order and reduced the interest awarded from 12% to 8% per annum simple interest from the date of mesne profit fell due till payment is received by the plaintiff.

Both the parties filed Appeal before the Division bench of H’ble Delhi High Court. The Appeal of plaintiff was dismissed and on the Appeal of ITDC the H’ble High Court stayed the order of Single bench with the condition that ITDC will deposit 50% of the decreetal amount. ITDC has since deposited a sum of Rs 13,14,21,951 in the High court Registry vide a Banker’s Cheque dt. 14.1.2016. However, the Appeal of ITDC has been dismissed by H’ble High court on 22.4.2016. The further course of action will be decided in due course. Pending finalization of the matter 50% of decreetal amount is shown as Exceptional item in P&L Account and the balance amount has been included under contingent liability A(a)(i) above.

M/s Airports Authority of India(AAI) and other private airport operators had levied service tax on their billings for licence fee/royalty for Duty Free Shops at various locations and Ashok Airport Restaurant w.e.f. 10.9.2004. However, the Circular dated 17.9.2004 issued by Government of India provides that the activity of renting, leasing out part of airport/ civil enclave premises does not amount to rendering of services and the license fee/ royalty payable in this regard is not subject to service tax. M/s Airports Authority of India had filed an appeal in CESTAT interalia to adjudicate if Service Tax is chargeable on Appealants revenue from renting/ leasing of space inside Airports Civil Enclave to various persons for their business activities. CESTAT vide their order date 2.1.2015 had ordered that service tax is chargeable on above renting/ leasing. The AAI has further appealed against the order of Hon’ble Delhi High Court. Further an amount of Rs. 1.61 crore paid by ITDC as security deposit in the form of Fixed Deposit during 2006-07 was encashed by Delhi International Airport Pvt. Ltd.(DIAL) on account of Service Tax levied as above. Pending final resolution of the matter the estimated liability of Rs. 1,779.49 lakh (Previous year Rs. 1,779.49 lakh) from 10.09.2004 to 31.03.2008 has been included as Contingent Liability at Para A(a)(i). above, and Rs. 1.61 crore has been included as amount recoverable from M/s DIAL.

E. The Employees State Insurance Corporation (ESI) authorities had raised demands (including interest where applicable) totaling Rs. 803.13 lakh (Previous year Rs. 780.92 lakh) towards ESI dues in respect of four hotel/catering units against which the corporation holds a deposit of Rs. 334.85 lakh (Previous year Rs. 334.85 lakh) (included in Loans and Advances) with the said authorities (made up of amounts withdrawn by the authorities after freezing bank accounts Rs. 310.09lakhandamountdepositedRs.:24.76 lakh). Against this the corporation holds a liability of Rs. 215.43 lakh (previous year 215.43 lakh) towards ESI dues. No provision has been made for the balance of Rs. 587.70 lakh(Previous year Rs. 565.49 lakh) as the matter is subjudice and pending finality in the matter, the same has been included under Contingent Liabilities at SI. No. 1(A)(a)(i) above.

F. The matter relating to determination of property tax in respect of three Delhi based properties i.e. Ashoka, Samrat and Janpath Hotels was subjudice in the Hon’ble High Court of Delhi. During proceedings NDMC offered a basis for determination of property tax for assessing the hotel properties to which ITDC also agreed. Accordingly, the Hon’ble High Court vide its orders dated 19.10.2010 disposed off the said petition by directing NDMC to reassess the property tax due from hotels and hotels to fully cooperate in the matter. Accordingly, the NDMC vide its assessment orders dated 31.03.2013 made the fresh assessment up to 31.03.2009 and gave a basis of determination of property tax which was agreed by ITDC.

From the year 2010-11 to 2015-16, NDMC vide their order dated 11.02.2016 assessed above three properties on Unit area method on a much higher RV than assessed upto the year 2008-09 vide Order dt. 31.3.2013. ITDC challenged the assessment made under Unit area method and filed three writ petitions in Delhi High Court. The matter came up for hearing before DB of the H’ble court on 8.3.2016. H’ble court was pleased to order that subject to ITDC paying the admitted tax , no coercive measures shall be taken by NDMC. ITDC has already deposited its admitted tax liability based upon assessment made vide order dt. 31.3.2013 and the balance disputed amount of Rs 165.91 crores has been included in the contingent Liability A(a)(i) above subject to final resolution of the matter by H’ble court.

General Notes Note - 32

1. Inspite of requests made by the Company, confirmation of balances have not been received in cases of Trade receivable, Trade payable, Loans and Advances and Deposits. Besides in a few units, balances in customers’ accounts are under reconciliation with the General Ledger control account balances. The effect on accounts, if any, due to our exercise for obtaining confirmation, reconciliation and adjustments thereof will be adjusted accordingly.

2. The net accumulated amount of losses - Rs. 3,086.15 lakh(Previous year Rs. 2,690.24 lakh) of subsidiary companies so far as it concerns to the Corporation, not dealt with in the accounts is as under:-

3. Following past practice, consumption of Stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting there from closing balance based on physical inventories valued as per accounting policy.

4. The Corporation has been managing Hotel Bharatpur Ashok and Kosi Restaurant owned by Ministry of Tourism and the profit/loss in respect of these units is accounted for by the Corporation in the respective notes of statement of Profit 6t Loss Account.

5. Company entered into an Agreement dt. 19th February, 2002 with M/S Maruti Udyog Ltd. for renewal of Sub-Lease from 1st February, 2002 to 31st January, 2011 and another period of nine years thereafter subject to enhancement of rent in respect of the property comprising of Workshop cum Depot constructed on Plot No. C-119 Naraina Industrial Area Phase-1, New Delhi. As per terms of agreement the entire rent for a period of 9 years was paid by Maruti Udyog Ltd in advance. During the currency of the lease period, M/S Maruti Udyog Ltd carried out additional construction in the said premises and in the process, the Workshop cum Depot that had been let out was demolished and rendered extinct which was neither envisaged nor intended in the Sub-Lease Agreement. Therefore, a legal notice dt. 14th June, 2010 was given to Maruti Udyog Ltd to vacate the premises w.e.f. 1.7.2010. The balance amount of advance rent lying with ITDC amounting to Rs. 25,01,849/- was accordingly returned to M/S Maruti Udyog Ltd. Applications dt. 1.7.2010 were filed by ITDC for eviction of premises and recovery of damages under Public Premises (Eviction of Unauthorized Occupants) Act, 1971 before the Estate Officer. In the meanwhile M/S Maruti Udyog Ltd. renamed as M/S Maruti Suzuki India Ltd. (MSIL) filed a writ petition in H’ble Delhi High Court against the eviction and recovery applications of ITDC which has been dismissed by the Hon’ble High Court vide order dt. 30.12.2012. Against the order of H’ble High Court MSIL had filed an appeal before the Division Bench which was also dismissed vide order dt. 29.4.2013. MSIL filed an SLP challenging the orders of H’ble High court. The said SLP was disposed off vide order dt. 13.9.2013 with direction to Estate Officer to decide the jurisdiction. The Estate officer vide its order dt. 24.3.2014 held that that the Estate officer has jurisdiction to entertain the application filed by ITDC. Another Arbitration Petition had been filed by MSIL before Hon’ble High Court for appointment of Arbitrator. Hon’ble High Court vide its interim order dt 23.5.2011 directed to appoint two Arbitrators who may proceed to appoint Presiding Arbitrator. ITDC preferred an Application for recalling the order of H’ble court. The H’ble court vide its order dt. 29.9.2011 sustained the order dt. 23.5.2011 with modification that the only issue Arbitral tribunal will determine is whether ITDC violated terms of Sub-Lease dt. 19.2.2002 and MSIL suffered any losses/harassment. The rest of the issues shall be determined under Public Premises Act. MSIL filed SLP against order dt. 29.9.2011 and the same was dismissed vide order dt. 6.5.2014 by H’ble Supreme Court. Now the proceedings before the Estate officer are in progress and pending legal proceedings in the matter, the premises has not yet been vacated by M/S MSIL

6. Disclosure in accordance with Accounting Standard- 7 - Construction Contracts:

7. Disclosure pursuant to Accounting Standard 17 on Segment Reporting is given in Annexure A to this note.

8. Disclosure of transactions with related parties as per Accounting Standard -18, to the extent applicable, is as under: -

Key Management Personnels: -

1. Shri Umang Narula,

Chairman 6t Managing Director w.e.f. 24.04.2015 till date

2. Shri Piyush Tiwari,

Director (Commercial 6t Marketing) w.e.f. 28.05.2015 till date

3. Shri Pradip Kumar Das,

Director (Finance)

w.e.f. 25.02.2016 till date

4. Shri Girish Shankar,

Chairman 6t Managing Director w.e.f. 9.12.2014 to 23.04.2015

5. Shri Trinath Behera,

Director( Finance)

w.e.f. 26.4.2013 to 30.06.2015

Payment made to key management personnels and their relatives.

9. Disclosure in pursuance of Accounting Standard -19 on Leases:-

The Corporation’s leasing arrangements are generally in respect of operating lease for premises (residential, office accommodation, and godowns etc). These leasing arrangements are not non-cancellable and are also usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals paid/payable are charged as Rent under Employees Remuneration 6t Benefits (Note-25) 6t Operating and other Expenses (Note-27). In some of the hotel units, arrangements made with other parties to operate restaurants and other business premises are on licence basis which are also not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms.

10. Pursuant to a decision of Government of India, it was decided that Ministry of Tourism will examine the proposal for Sale/ Lease of Hotel Properties of the company including Properties of Subsidiary Companies. In the cases where Hotel properties are located on State Govt Leased Land and the State is reluctant to extend the lease, then the property may be offered to the State Govt at its officially valued price. Inter Ministerial Group (IMG) has since been formed by the Govt which is in the process of appointing of Transaction Advisors who will do the entire exercise of Valuation of the properties, legal advising, devising framework for transfer/ exit/ absorption of employees, documentation, etc.

In the absence of any formal approved plan for discontinuance as on date the hotel operations have been considered as normal continuing operations of the company within the meaning of AS-24.

Further, as the process of disinvestment/ divestment of Hotel Properties including that of Subsidiary Companies is going on and it is expected that on completion of the proposed transaction of sale/ lease out properties of Subsidiary Companies, company will be able to realize full value of its investments, made in these Subsidiary Companies and Accounts Recoverable on account of Management Fees and Loans 6t Advances, etc. Therefore, no provision is considered necessary and these accounts are considered good for recovery.

11. Impairment of Assets

Impairment of Fixed Assets/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Accounting Standard-28-’Impairment of Assets’ issued by the Institute of Chartered Accountants of India is recognized. As on 31st March, 2016, in the opinion of the Management except to the extent of loss recognized in respect of assets not in active use, capital work-in-progress including incomplete hotel project at Gulmarg, no such impairment loss warranting recognition/provision was noticed.

12. Disclosure in pursuance to Accounting Standard - 29 - Provisions, Contingent Liabilities and Contingent Assets :

13. Other disclosure as per Schedule III of Companies Act, 2013:

a) Value of Imports on C.I.F. basis:-

(d) (i) Amount due to Small Scale Industries, to the extent such parties have been identified from available information, of more than one lakh and for a period exceeding 30 days is Rs. NIL (Previous Year Rs. NIL lakh).

(ii) The Government of India had promulgated “The Micro,Small and Medium Enterprises Development Act, 2006”. As per the said Act, the Corporation is to identify the parties and pay them interest beyond the specified period if not paid. The Corporation is in the process of identifying the suppliers. In view of this, the liability for interest could not be worked out.

(iii) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towa rd s reha dilatation / reviva I of sick industrial companies, which shall not be less than 0.005% but not more than 0.10% of the turnover or the gross receipts as the Central Government may from time to time specify in the Official Gazette. Since no notification has been issued, provision thereof has not been created.

14. In the opinion of the management, the value of assets, other than fixed assets and noncurrent investments, on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

15. Disclosure as per Accounting Standard - 1, on Disclosure of Accounting Policies

During the year, following changes in the Accounting Policies have been made:

a) Policy No. 1 - “Accounting Convention” has been modified considering the provision of the Companies Act, 2013;

b) Policy No. 9 - “Gratuity” has been modified to disclose about Gratuity Fund Trust;

c) Policy No. 17 - “Segment Reporting” has been added for disclosure purposes;

d) Policy No. 18 - “ Cash Flow” has been added for disclosure purposes.

The above changes have been made for better presentation of Financial Statements and have no impact on the accounts.

16. Previous years’ figures have been regrouped/ rearranged wherever necessary.

1

The Ashok, New Delhi participated in three day long palette Fest held in December 2015.


Mar 31, 2015

1. Confirmation of balances have not been received in most of the cases of Trade receivable, Trade payable, Loans and Advances and Deposits. Besides in a few units, balances in customers accounts are under reconciliation with the General Ledger control account balances. Effect on the accounts on due confirmation, reconciliation and adjustments thereof cannot be indicated at this stage.

2. The net accumulated amount of losses - Rs. 2,690.24 (Previous year Rs. 2,507.86 lakh) of subsidiary companies so far as it concerns to the Corporation, not dealt with in the accounts is as under:-

3. Following past practice, consumption of stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting there from closing balance based on physical inventories valued as per accounting policy.

4. The Corporation has been managing Hotel Bharatpur Ashok and Kosi Restaurant owned by Ministry of Tourism and the profit/loss in respect of these units is accounted for by the Corporation in the respective notes of statement of Profit & Loss Account.

5. Company entered into an Agreement dt. 19th February, 2002 with M/S Maruti Udyog Ltd. for renewal of Sub-Lease from 1st February, 2002 to 31st January, 2011 and another period of nine years thereafter subject to enhancement of rent in respect of the property comprising of Workshop cum Depot constructed on Plot No. C-119 Naraina Industrial Area Phase- I, New Delhi. As per terms of agreement the entire rent for a period of 9 years was paid by Maruti Udyog Ltd in advance. During the currency of the lease period, M/S Maruti Udyog Ltd carried out additional construction in the said premises and in the process the Workshop cum Depot that had been let out was demolished and rendered extinct which was neither envisaged nor intended in the Sub-Lease Agreement. Therefore, a legal notice dt. 14th June, 2010 was given to Maruti Udyog Ltd to vacate the premises w.e.f. 1.7.2010. The balance amount of advance rent lying with ITDC amounting to Rs. 25,01,849/- was accordingly returned to M/S Maruti Udyog Ltd. Applications dt. 1.7.2010 was filed by ITDC for eviction of premises and recovery of damages under Public Premises (Eviction of Unauthorized Occupants) Act, 1971 before H'ble Estate Offcer. In the meanwhile Maruti Udyog Ltd fled a writ petition in H'ble Delhi High Court against the eviction and recovery applications of ITDC which has been dismissed by the Hon'ble High Court. Against the order of H'ble High Court Maruti Udyog Limited had fled an appeal before the Division Bench which was also simultaneously dismissed. Another Arbitration Petition had been filed by Maruti Udyog Ltd. before Hon'ble High Court for appointment of Arbitrator. Hon'ble High Court vide its order date 29.09.2011 appointed Arbitrator with certain directions against the aforesaid order. ITDC has fled Writ Petition praying for stay of Arbitration proceedings.The matter is pending before H'ble High Court. Maruti Udyog Limited has also fled a writ petition against the order dated 29.09.2011 before the H'ble Supreme Court of India. Proceedings initiated by MUL before Hon'ble High court and Hon'ble Supreme Court have disposed off. The matter of recovery of possession and recovery of amount are now fixed for 28.05.2015. Pending legal proceedings in the matter, the premises has not yet been vacated by M/S Maruti Udyog Ltd.

6. Disclosure in accordance with Accounting Standard- 7 - Construction Contracts:

7. Disclosure pursuant to Accounting Standard 17 on Segment Reporting is given in Annexure A to this note.

8. Disclosure of transactions with related parties as per Accounting Standard -18, to the extent applicable, is as under: -

Key Management Personnel’s: -

1. Shri Umang Narula Chairman & Managing Director w.e.f. 24.04.2015

2. Shri Girish Shankar Chairman & Managing Director w.e.f. 09.12.2014 to 23.04.2015

3. Dr. Sameer Sharma Managing Director w.e.f. 12.05.2014 to 09.12.2014

4. Shri Girish Shankar Managing Director w.e.f. 23.04.2013 to 11.05.2014

5. Shri Trinath Behera Director (Finance) w.e.f. 26.4.2013

6. Shri Ratan Kumar Okhandiar Director (C&M) w.e.f. 10.07.2012 to 31.03.2015

Payment made to key management personnel’s and their relatives.

9. Disclosure in pursuance of Accounting Standard -19 on Leases:- The Corporation's leasing arrangements are generally in respect of operating lease for premises (residential, office accommodation, and godowns etc). These leasing arrangements are not non-cancellable and are also usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals paid/payable are charged as Rent under Employees Remuneration & Benefits (Note-25) & Operating and Other Expenses (Note-27). In some of the hotel units, arrangements made with other parties to operate restaurants and other business premises are on licence basis which are also not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms.

10. Impairment of Assets

Impairment of Fixed Assets/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Accounting Standard- 28-'Impairment of Assets' issued by the Institute of Chartered Accountants of India is recognised. As on 31st March, 2015, in the opinion of the Management except to the extent of loss recognised in respect of assets not in active use, capital work- in-progress including incomplete hotel project at Gulmarg, no such impairment loss warranting recognition/provision was noticed.

11. Disclosure in pursuance to Accounting Standard - 29 - Provisions, Contingent Liabilities and Contingent Assets :

12. Additional information pursuant to requirements of Part II of Schedule VI of the Companies Act, 2013 :-

(d) (i) Amount due to Small Scale Industries, to the extent such parties have been identified from available information, of more than one lakh and for a period exceeding 30 days is Rs. NIL (Previous Year Rs. NIL lakh).

(ii) The Government of India had promulgated "The Micro,Small and Medium Enterprises Development Act, 2006". As per the said Act, the Corporation is to identify the parties and pay them interest beyond the specified period if not paid. The Corporation is in the process of identifying the suppliers. In view of this, the liability for interest could not be worked out.

(iii) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towards rehabilitation/revival of sick industrial companies, which shall not be less than 0.005% but not more than 0.10% of the turnover or the gross receipts as the Central Government may from time to time specify in the Official Gazette. Since no notification has been issued, provision thereof has not been created.

13. Previous years' figures have been regrouped/rearranged wherever necessary.


Mar 31, 2014

NOTE-1, CONTINGENT LIABILITIES

(Rs. in lakh)

Particular Year Ended Year Ended 31.03.2014 31.03.2013

A. Claims against the corporation not acknowledged as debts

(i). Claims against the corporation not acknowledged as debts includes demands from custom authority 18,523.84 77537.03 47081.54 lakh(Previous Year Rs.18,525.97 lakh) and are sub-judice].

(ii). Guarantees executed in favour of various authorities, banks and financial institution [including guarantees provided again st 484.84 409.46 loans obtained by subsidiary companies, 331.44 lakh (Previous year Rs. 312.93 lakh).

(iii) Income Tax matters in appeal [Includes appeals preferred by Income Tax Department 17.59 lakh (Previous Year Rs. 17.59 1200.24 475.54 lakh)]

(iv) Sales Tax matters in appeal [includes 2,465.62 lakh (Previous Year Rs. 2,045.40 lakh) in respect of closed Duty Free 2529.51 2529.51 Shop, Mumbai, appeals against which are pending before Maharastra Sales Tax Tribunal / High Court].

(v)(a). Liability towards service tax (including interest thereon ) pertaining to banqueting,including catering activities, at hotels upto 31.03.2007. Amount Amount (b).Liability towards work contract tax (including interest thereon unascertained unascertained pertaining to building repair work carried at units.

B. COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account (net of advances and excluding escalation in 501.98 70.09 rates, if any) (on completion, part of the work may result as revenue expenditure).

Note no (1): Contingent Liabilities at Sr. No.(A)(i), (A)(iii) &(A)(iv) are dependent upon court decision/out of court settlement/disposal of appeal etc.

Note no (2): Amount indicated as Contingent liability/ claims against th e corporation only reflect basic value. Legal and other costs being indeterminable at this stage are not considered.

Note no (3): Contingent liabilities at A(i) above includes Rs. 4821.30 lakh in respect of matters under arbitration with suppliers in respect of works relating to supply of furniture and furnishing of flats on behalf of De lhi Development Authority(DDA). However, the MOU with DDA indicates that the payments of decreed amounts, if any , as decided by arbitrator , court of law will be made by DDA.

C.The Corporation had taken a property on rent from the Custodian of Enemy Property in 1965. Subsequently the said property was released in favour of present owner by the Custodian. The owner had filed a suit for recovery of the possession of the said property. The Hon''ble High Court decided the matter in favour of the owner and the Corporation was directed to vacate the property. The Hon''ble high court also fixed the rent @ Rs.30,000/- for the month of January 1980 only on lumpsum/adhoc basis alongwith interest and also appointed a Local Commissioner to determine the amount of rent for the period from 1.2.1980 till date of handing over the possession of the property. Aggrieved by the decision,a Special Leave Petition before the Hon''ble Supreme Court was filed which was dismissed by the court & upheld the earlier judgement of the Hon''ble High Court. Accordingly the premises was vacated & possession handed over to the owner on 28.02.2007. The Local Commissioner has rejected the claim of approx Rs. 300 crore of Shri Anil Kumar Khanna & Ors on account of mesne profits and has calculated the mesne profit by taking the base rent of Rs. 9.37 per sq ft per month with the increase of 15 % every year and interest @ 12 % p.a. as mentioned in the Report. The

D.M/s Airports Authority of India(AAI) and other private airport operators had levied service tax on their billings for licence fee/royalty for Duty Free Shops at various locations and Ashok Airport Restaurant w.e.f. 10.9.2004. However the Circular dated 17.9.2004 issued by Government of India provides that the activity of renting, leasing out part of airport/civil enclave premises does not amount to rendering of services and the license fee/royalty payable in this regard is not subject to service tax. Similar views on non levying of service tax on such licence fee/royalty have also been opined by tax consultants. The issue is also under consi deration by the Director General of Central Excise Intelligence. Pending clarifications, no provision has been made for the estimated liability, towards service tax for the period from 10.9.2004 to 31.3.2008 for all the ten duty free shops, which works out to Rs. 1779.49 lakh (Previous year Rs.1779.49 lakh).

E.The Employees State Insurance Corporation (ESI) authorities had raised demands (including interest where applicable) totalling Rs. 758.60 lakh (Previous year Rs. 730.06 lakh) towards ESI dues in respect of four hotel/catering units against which the corporation holds a deposit of Rs. 334.85 lakh (Previous year Rs. 327.20 lakh)(included in Loans and Advances) with the said authorities (made up of amounts withdrawn by the authorities after freezing bank accounts-Rs. 310.09 lakh and amount deposited Rs.24.76 lakh). Against this the corporation holds a liability of Rs. 215.43 lakh (previous year 193.41 lakh) towards ESI dues. No provision has been made for the balance of Rs. 543.17 lakh(Previous year Rs. 536.65 lakh) as the matter is sub-judice and pending finality in the matter, the same has been included under Contingent Liabilities at Sl. No. 1(a)(i) above.

F. The matter relating to determination of property tax was sub-judice in the Hon''ble High Court of Delhi. During proceedings NDMC offered a basis for determination of property tax for assessing the hotel properties to which ITDC also agreed. Accordingly the Hon''ble High Court vide its orders dated 19.10.2010 disposed off the said petition by directing NDMC to reassess the property tax due from hotels and hotels to fully cooperate in the matter.Accordingly The NDMC vide its assessment orders dated 31.03.2013 made the fresh assessment up to 31.03.2009 and gave a basis of determination of property tax which was agreed by ITDC.

In compliance to the assessment order, a provisional liability of Rs. 2050.66 lakh towards property tax due for the hotel for the years up to 2008-09 have been worked out and accounted for in the accounts in earlier years. Further, hotel have adopted the same formula for determining the property tax for the years from 2009-10 to 2013-14 whereas NDMC is raising bills as per old basis i.e the basis it was following before the cou rt orders.Since the basis of determination of property pursuant to the court order has already been agreed by NDMC and ITDC, ITDC has not accepted the demands and submitted representations to NDMC Besides, NDMC has not made assessment for the years 2009-10 to 2013-14. Therefore, pending the final resolution in the matter, the difference of Rs. 1282.36 lakh between the property tax demanded by NDMC ( Rs. 2041.45 lakh ) and property tax admitted by ITDC ( Rs. 759.09 lakh ) has been disclosed as "Contingent Liabilities" under A(i) above

NOTE: 2- GENERAL NOTES

1. Confirmation of balances have not been received in most of the cases of Trade receivable , Trade payable , Loans and Advances and Deposits. Besides in a few units, balances in customers accounts are under reconciliation with the General Ledger control account balances.Effect on the accounts on due confirmation, reconciliation and adjustments thereof cannot be indicated at this stage.

2. The net accumulated amount of losses - Rs. 2,507.86 lakh (Previous year Rs. 2,434.41 lakh) of subsidiary companies so far as it concerns to the Corporation, not dealt with in the accounts is as under:-

3. Following past practice, consumption of Stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting therefrom closing balance based on physical inventories valued as per accounting policy.

4. The Corporation has been managing Hotel Bharatpur Ashok and Kosi Restaurant owned by Ministry of Tourism and the profit/los s in respect of these units is accounted for by the Corporation. in the respective notes of statement of Profit & Loss Account.

5. Company entered into an Agreement dt. 19th February,2002 with M/S Maruti Udyog Ltd.for renewal of Sub-Lease from 1st February 2002 to 31st January,2011 and another period of nine years thereafter subject to enhancement of rent in respect of the property comprising of Workshop cum Depot constructed on Plot No. C-119 Naraina Industrial Area Phase- I, New Delhi. As per terms of agreement the entire rent for a period of 9 years was paid by Maruti Udyog Ltd in advance. During the currency of the lease period, M/S Maruti Udyog Ltd carried out additional construction in the said premises and in the process the Workshop cum Depot that had been let out was demolished and rendered extinct which was neither envisaged nor intended in the Sub- Lease Agreement. Therefore, a legal notice dt. 14th June, 2010 was given to Maruti Udyog Ltd to vacate the premises w.e.f. 1.7.2010. The balance amount of advance rent lying with ITDC amounting to Rs. 25,01,849/- was accordingly returned to M/S Maruti Udyog Ltd. Applications dt. 1.7.2010 was filed by ITDC for eviction of premises and recovery of damages under Public Premises ( Eviction of Unauthorized Occupants) Act, 1971 before H''ble Estate Officer.

6 The matter relating to determination of property tax was sub-judice in the Hon''ble High Court of Delhi. During proceedings NDMC offered a basis for determination of property tax for assessing the hotel properties to which ITDC also agreed. Accordingly the Hon''ble High Court vide its orders dated 19.10.2010 disposed off the said petition by directing NDMC to reassess the property tax due from hotels and hotels to fully cooperate in the matter.Accordingly The NDMC vide its assessment orders dated 31.03.2013 made the fresh assessment up to 31.03.2009 and gave a basis of determination of property tax which was agreed by ITDC.

In compliance to the assessment order, a provisional liability of Rs. 2 050.66 lakh towards property tax due for the hotel for the years up to 2008-09 have been worked out and accounted for in the accounts in earlier years. Further, hotel have adopted the same formula for determining the property tax for the years from 2009-10 to 2013-14 whereas NDMC is raising bills as per old basis i.e the basis it was following before the court orders.Si nce the basis of determination of property pursuant to the court order has already been agreed by NDMC and ITDC, ITDC has not accepted the demands and submitted representations to NDMC Besides, NDMC has not made assessment for the years 2009-10 to 2013-14. Therefore, pending the final resolution in the matter, the difference of Rs. 1282.36 lakh between the property tax demanded by NDMC ( Rs. 2041.45 lakh ) and property tax admitted by ITDC ( Rs. 759.09 lakh ) has been disclosed as "Contingent Liability"

10. Disclosure in pursuance of Accounting Standard -19 on Le ases:- The corporation''s leasing arrangements are generally in respect of operating lease for premises (residential, office accomodation, and godowns etc). These leasing arrangements are not non-cancellable and are also usually renewable by mutual consent on mutually agreeable terms.The aggregate lease rentals paid/payable are charged as Rent under Employees Remuneration & Benefits (note-25) & operating and other expenses (note-27). In some of the hotel units, arrangements made with other parties to operate restaurants and other business premises are on licence basis which are also not non- cancellable and are usually renewable by mutual consent on mutually agreeable terms.

11. Impairment of Assets

Impairment of Fixed Assets/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Accounting Standard-28- ''Impairment of Assets'' issued by the Institute of Chartered Accountants of India is recognised. As on 31st March, 2014, in the opinion of the Manag ement except to the extent of loss recognised in respect of assets not in active use, capital work-in-progress including incomplete hotel project at Gulmarg, no such impairment loss warranting recognition/provision was noticed.

(d) (i) Amount due to Small Scale Industries, to the extent such parties have been identified from available information, of more than one lakh and for a period exceeding 30 days is Rs. NIL (Previous Year Rs. NIL lakhs).

(ii) The Government of India had promulgated "The Micro,Small and Medium Enterprises Development Act, 2006".As per the said Act, the corporation is to identify the parties and pay them interest beyond the specified period if not paid. The corporation is in the process of identifying the suppliers.In view of this, the liability for interest could not be worked out.

(iii) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towards rehabiliation/revival of sick industrial companies, which shall not be less than 0.005% but not more than 0.10% of the turnover or the gross receipts as the Central Government may from time to time specify in the Official Gazette. Since no notification has been issued, provision thereof has not been created.

12. Previous years'' figures have been regrouped/rearranged wherever necessary.


Mar 31, 2013

1. Confrmation of balances have not been received in most of the cases of Trade receivable, Trade payable, Loans and Advances and Deposits. Besides in a few units, balances in customers accounts are under reconciliation with the General Ledger control account balances. Effect on the accounts on due confrmation, reconciliation and adjustments thereof cannot be indicated at this stage.

2. The net accumulated amount of losses Rs. 2,434.41 lakh (Previous year Rs. 2,337.33 lakh) of subsidiary companies so far as it concerns to the Corporation, not dealt with in the accounts is as under:-

3. Following past practice, consumption of Stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting therefrom closing balance based on physical inventories valued as per accounting policy.

4. The Corporation has been managing Hotel Bharatpur Ashok and Kosi Restaurant owned by the Ministry of Tourism and the proft/loss in respect of these units is accounted for by the Corporation in the respective notes of statement of Proft & Loss Account.

5. Company entered into an Agreement dt.19th February, 2002 with M/s Maruti Udyog Ltd.for renewal of Sub-Lease from 1st February, 2002 to 31st January, 2011 and another period of nine years thereafter subject to enhancement of rent in respect of the property comprising of Workshop cum Depot constructed on Plot No. C-119 Naraina Industrial Area Phase- I, New Delhi. As per terms of agreement the entire rent for a period of 9 years was paid by Maruti Udyog Ltd in advance. During the currency of the lease period, M/s Maruti Udyog Ltd. carried out additional construction in the said premises and in the process the Workshop cum Depot that had been let out was demolished and rendered extinct which was neither envisaged nor intended in the Sub-Lease Agreement. Therefore, a legal Notice dt. 14th June, 2010 was given to M/s Maruti Udyog Ltd to vacate the premises w.e.f. 1.7.2010. The balance amount of advance rent lying with ITDC amounting to Rs. 25,01,849/- was accordingly returned to M/s Maruti Udyog Ltd. Applications dt. 1.7.2010 was fled by ITDC for eviction of premises and recovery of damages under

Public Premises (Eviction of Unauthorized Occupants) Act, 1971 before H''ble Estate Offcer. In the meanwhile M/s Maruti Udyog Ltd fled a writ petition in H''ble Delhi High Court against the eviction and recovery applications of ITDC which has been dismissed by the Hon''ble High Court. Against the order of H''ble High Court Maruti Udyog Limited had fled an appeal before the Division Bench which was also simultaneously dismissed. Another Arbitration Petition had been fled by M/s Maruti Udyog Ltd. before Hon''ble High Court for appointment of Arbitrator. Hon''ble High Court vide its order dt 29.09.2011 appointed Arbitrator with certain directions against the aforesaid order. ITDC has fled writ petition praying for stay of Arbitration proceedings.The matter is pending before H''ble High Court. M/s Maruti Udyog Limited has also fled a writ petition against the order dated 29.09.2011 before the H''ble Supreme Court of India. Pending legal proceedings in the matter, the premises has not yet been vacated by M/s Maruti Udyog Ltd.

6. The matter relating to determination of property tax in respect of 3 hotel properties in New Delhi was subjudice in the Hon''ble High Court of Delhi. During proceedings NDMC offered a basis for determination of property tax by assessing the hotel properties to which ITDC also agreed. Accordingly, the Hon''ble High Court vide its orders dated 19.10.2010 disposed off the said petition by directing NDMC to assess the property tax due from ITDC and ITDC to fully cooperate in the matter. Accordingly, The NDMC vide its assessment orders dated 31.03.2013(separate for each hotel) made the fresh assessment up to 31.03.2009 and gave a basis of determination of property tax which was agreed by ITDC. In compliance to the assessment order, a provisional liability for property tax due for these hotels for the years up to 2008-09 have been worked out. Further, ITDC has adopted the same formula for determining the property tax for the years from 2009-10 to 2012- 13. Although property tax assessment for these years has not been made. The Gross amount due for the years up to 2012-13 works out to Rs. 2,655.85 lakh(comprising of Rs. 2,050.66 lakh for the years up to 2008- 09 and Rs. 605.19 lakh for the years 2009- 10 to 2012-13). Further, the Corporation has already made provision of Rs. 1,704.25 lakh in the accounts as admitted liability/ agreed upon mutually agreed terms. The difference of Rs. 951.60 lakh has been provided for in the accounts of 2012-13. The amount of Rs. 270.00 lakh relating to transfer of fxed assets of erstwhile Akbar Hotel under package deal and as agreed by NDMC to adjust against the property tax dues, has now been adjusted from the dues payable to them.

7. Disclosure pursuant to Accounting Standard-17 on Segment Reporting is given in Annexure A to this note.

8. Disclosure of transactions with related parties as per Accounting Standard -18, to the extent applicable, is as under: -

Key Management Personnels: -

1. Shri Shankersinh Vaghela

Part time Chairman cum Non-offcial

(Independent) Director

w.e.f. 13.06.2012 to 28.11.2012

2. Shri Girish Shankar Managing Director w.e.f. 23.04.2013

3. Dr. Lalit K Panwar, C&MD w.e.f .21.04.2010 to 13.06.2012 Dr. Lalit K Panwar, VC&MD w.e.f .13.06.2012 to 23.04.2013

4. Shri P.K.Agarwal, Director (Finance) w.e.f. 29.07.2010 to 28.09.2012.

5. Shri Ratan Kumar Okhandiar Director (C&M)

w.e.f. 10.07.2012

6. Shri Trinath Behera Director( Finance) w.e.f. 26.4.2013

9. Disclosure in pursuance of Accounting Standard -19 on Leases:-

The Corporation''s leasing arrangements are generally in respect of operating lease for premises (residential, offce accommodation, and godowns etc). These leasing arrangements are not non-cancellable and are also usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals paid/payable are charged as Rent under Employees'' Remuneration & Benefts (Note-25) & Operating and Other Expenses (Note-27). In some of the hotel units, arrangements made with other parties to operate restaurants and other business premises are on licence basis which are also not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms.

10. Impairment of Assets

Impairment of Fixed Assets/ Capital work- in-progress at each Balance Sheet date and impairment loss, if any, ascertained as per Accounting Standard-28- ''Impairment of Assets'' issued by the Institute of Chartered Accountants of India is recognised. As on 31st March, 2013, in the opinion of the Management except to the extent of loss recognised in respect of assets not in active use, capital work- in-progress including incomplete hotel project at Gulmarg, no such impairment loss warranting recognition/provision was noticed.

11. Disclosure in pursuance to Accounting Standard - 29 - Provisions, Contingent Liabilities and Contingent Assets :

12. Additional information pursuant to requirements of Part II of Schedule VI of the Companies Act, 1956: -

a) Value of Imports on C.I.F. basis:-

(c) Earnings in Foreign Currency (Direct) (on receipt basis) :-

(d) (i) Amount due to Small Scale Industries, to the extent such parties have been identifed from available information, of more than one lakh and for a period exceeding 30 days is Rs. NIL (Previous YearRs. NIL lakh).

(ii) The Government of India had promulgated "The Micro,Small and Medium Enterprises Development Act, 2006". As per the said Act, the Corporation is to identify the parties and pay them interest beyond the specifed period if not paid. The Corporation is in the process of identifying the suppliers.In view of this, the liability for interest could not be worked out.

(iii) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towards rehabiliation/revival of sick industrial companies, which shall not be less than 0.005% but not more than 0.10% of the turnover or the gross receipts as the Central Government may from time to time specify in the Offcial Gazette. Since no notifcation has been issued, provision thereof has not been created.

13. Previous years'' fgures have been regrouped/rearranged wherever necessary.


Mar 31, 2012

15,238 Equity Shares of Rs. 100 each {since converted into 1,52,380 equity shares of Rs. 10 each) were alloted as fully paid up pursuant to the Amalgamation order (1966) under Section 396 of the Companie$ Act, 1956.

75,000 Equity Shares of Rs. 100 each (since converted Into 7,50,000 equity shares of Rs. 10 each) were alioted as fully paid up in consideration for transfei of ownership of some properties.

1. Rental agreement with Life Insurance Corporation of India (LIC) expired on 25.07.2005 and is pending renewal. Pending finalisation of terms and conditions and execution of new lease deed, the corporation has paid the rent @ Rs.100/- per sq.feet up to 31.03.2012.The corporation has further provided the additional liability on account of escalation of rent @) 35% on completion of 5 years w.e.f 26.07.2010 and statutory liability of service tax w.e.f 1/6/2007 as per decision and as demanded by LIC.The corporation has also provided liability on account of increase in water charge w.e.f 1/1/2011. However, the corporation has not acknowledged the demand of interest raised by LIC on late payment of the rent (5) 12% p.a.

2.Sundry creditors include unlinked receipts from customers etc.of X 74.85 lakhjprevious year Rs. 81.24 lakh) which could not be linked to respective customer accounts, for want of adequate details.

* This represents amortization of leasehold land except in case of Hotel Samrat, New Delhi.

** Includes staff quarters of value of Rs. 194.03 lakh ( Previous year Rs. 194.03 lakh ).

However, this figure does not include value of staff quarters at some units, as the cost could not be asertained separately.

** * includes amortisation of leasehold resiential flats at Headquarters before their conversion into Freehold.

- Tangible Assets other than Leasehold land are owned by the Corporation.

(a) Terms of purchase/lease of land having not been finalised and registration of title deeds/execution of lease deeds having not been effected, liability towards cost/lease rent, ground rent and registration fee, etc, has not been created in respect of Hotel Patliputra Ashok at Patna, Ashok institute of Hospitality and Travel Management(AlH&TM) and Tennis Court at New Delhi.

(b) Lease deeds/title deeds have not yet been executed in favour of the corporation in respect of land at Hotel Samrat and Office Premises in Scope at New Delhi .

(c) Premium paid on Leasehold Land at Hotel Samrat, New Delhi have not been amortised in the absence of any tenure in terms of allotment.

(d) Lease deed in respect of land of Ashok Hotel. New Delhi is registered in the name of erstwhile Ashoka hotels Limited, which vas merged with the corporation on 28th March, 1970

(e) Registration of title deeds in favour of the corporation have not been effected in respect of:-

i) Land and building of Taj Restaurant

ii) Land at Gulmarg.

(f) Lease deed in respect of Hotel Jammu Ashok was expired on 11.01.2010,pending renewal of the same liability towards lease rent etc. has not been provided.

(g) Pending finalisation of cost and adjustment thereof, capitalisation of Land, Building, Furniture & Fixtures and Equipment of retained Travellers Lodges, Restaurants and Hotel taken over from Ministry of Tourism, has been effected based on the payments made.

(h) Pending receipt/ scrutiny of final bills of the contractors/suppliers, settlement of the rates for extra items and escalation etc., the capitalisation and/ or charge to expenditure to the extent of Rs. 1,842.75 lakh has been accounted for based on certificates issued by Project Engineers for the work carried out at various projects (previous year Rs. 4,841.59 lakhs). Adjustments, if any, to cost is proposed to be carried out upon final settlement of the bills.

* The Shares are not transferable without the consent of Co-promoters within ten years. Even after ten years, shares can not be transferred to private parties

** In respect of Ranchi Ashok Bihar Hotel Corporation Limited (Subsidiary corporation) whose property was attempted to be taken over by Financial Institutions during 1996*97, a provision has been made for decrease in the value of investments Rs. 36.52 lakh (Previous Year Rs.36.52lakh).

*** The Corporation had, for the purpose of running of the Duty Free Trade in India, established on 18/09/2007 a Joint Venture Company (JV) in collaboration with M/s ASdeasa of Spain vide agreement dated 10/07/2007. In terms of the JV agreement, the corporation and Aldeasa were to equally contribute funds to the JV towards capital and accordingly the corporation has, being a promoter subscriber, recorded an investment to the extent of Rs. 50,000 (5,000 equity shares of Rs. 10 each) in the joint venture, though the share certificates remained to be received from the JV company. The share of loss from the partnership amounting to X 1.16 lakh ( Previous Year Rs. 0,15 Lakh) has been recognised during the year.

**** During the year 2008-09 the company had entered into a partnership with M/S Showtime Events (India) Pvt.Ltd. for executing event management activities. The share of toss from the partnership _

amounting to Rs. 0.04 lakh (Previous year profit Rs.0.04 lakh) {net of firm tax) has been recognised during the year.The details of partners and their capital balance are ***** Investment worth Rs.25/* has been taken as NIL due to rounding off.

Notes:-

Investments of Rs. 729,10 lakh (Previous Year Rs. 729.10 lakh) in some of the above subsidiary companies, have been evaluated at cost despite significant accumulated losses. The corporation is accounting for income from these companies since 2008-09 (vii.management fees & interest on loans given ) to actual realisation / to the extent of deposit of taxes deducted at source in view of the repayment not being commensurate with the amount charged to them.The accounts recoverables as listed abo/e have, however, been considered good of recovery keeping in view of the long term relationship with those companies and the intrinsic value of the assets held by the companies.

1. Amount recoverable includes:-

i). Rs.268.73 lakhs (Previous year Rs.268.73 lakhs) from NDMC relating to transfer of fixed assets of erstwhile Akbar Hotel as agreed with them under package deal. The NDMC has agreed to adjust this amount against dues of property tax upon finalisation and determination of the said amount.

**ii). Rs. 208.00 lakhs (Previous year Rs.208.00 lakhs) paid by the corporation against bid for property of Ranchi Ashok Bihar Hotel Corporation Limited (Subsidiary corporation) which was attempted to be taken over y the Financial Institutions due to non-repayment of loan & interest, by the subsidiary corporation. Subsequently, co- promoter viz. Bihar State Tourism Development Corporation Ltd (BSTDC) had also offered to purchase the said property against which ITDC has filed a case in the High Court and matter is subjudice.

2. In respect of Ranchi Ashok Bihar Hotel Corporation limited (Subsidiary corporation) whose property was attempted to be taken over by Financial Institutions during 1996-97, a provision has been made for decrease in the estimated lower readability of debts and advances, amounting to Rs.77.92 lakh (Previous Year Rs.43.30 lakh).

1. Interest on deferred payments from M/s NBCC from 01.4.1994 onwards regarding Iraq project has not been accounted for in the absence of advice from NBCC.

2. Out of the balance amount of X 10.51 lakhs (Previous year X 11.35 lakhs) of Deferred Government Grants from the Ministry of Tourism for the renovation/upgradation of properties, a sum of Rs.0.60 lakhs incurred during the year (Previous year X 0.84 lakhs) has been charged to the respective head of expenditure. The amount equivalent to the grant related cost incurred during the year has accordingly been recognised as income. The balance of X 9.91 lakhs (previous year X 10.51 lakhs) at the close of the year has been presented in the accounts as Deferred Government Grant below Reserve and Surplus.

Notes:-

1. The disclosure relating to AS-15 (Revised) - Employees Benefits:-

a).Provident Fund -12% of Basic (including dearness pay) plus Dearness Allowance, contributed to Recognised Provident Fund.

b).Leave Encashment -Payable on separation to eligible employees who have accumulated earned leave.

c).Gratuity- Payable on separation @15 days pay for each completed year of service to eligible employees who render continuous service for 5 years or more. Maximum limit is Rs. 10.00 lakh .

In terms of Accounting Standard 15 (Revised) on Employees Benefits, the following disclosure sets out the status as required:-

2. No separate charge is made to Repairs and Maintenance Account in respect of salaries, wages etc. of staff deployed for repairs carried out departmental.

3. Rs. 1846.98 Lacs(Previous Year Rs.4,570.98 lakh) spent on renovation during the year at various hotels has been segregated as relating to capital Rs.83.35 lakh (Previous Year Rs.994.14 lakh) and revenue expenditure Rs. 1763.63 Lakh(Previous Year Rs.3576.84 lakh) based on certificate issued by the Project engineer and which have been relied upon by the auditors.

NOTE-3, CONTINGENT LIABILITIES

(Rs. In lakh)

Particulars Current Year Previous Year

A Claims against the corporation not acknowledged as debts

(i). Claims against the corporation not acknowledged as debts [includes 43,007.57 28,509.42 demands from custom authority Rs.18,524.81 lakhs(Prevlous Year Rs.21,875.10 lakhs) and are sub-judicel.

(ii). Guarantees executed in favour of various authorities, banks and 294.36 90.00 financial institution (including guarantees provided against loans obtained bv subsidiary companies.

(iii). Income Tax matters in appeal [Includes appeals preferred by 380.26 458.27 Income Tax Department Rs. 25.72 lakhs (Previous Year Rs.25.72 lakhs))

(iv). Sales Tax matters in appeal [includes Rs.1,551.87 lakhs (Previous 3,735.38 11,857.08 Year Rs.2,465.62 lakhs) in respect of Duty Free Shop, Mumbai, appeals against which are pending before Maharastra Sales Tax Tribunal / High Court].

(v)(a). Liability towards service tax (including interest thereon) pertaining to banqueting,including catering activities, at hotels upto 31.03.2007. Amount Amount

(b).Liability towards work contract tax (including interest thereon) unascertained unascertained pertaining to building repair work carried at units.

B. COMMITMENTS

211.89 472.95 Estimated amount of contracts remaining to be executed on capital account (net of advances and excluding escalation in rates, if any) (on completion, part of the work may result as revenue expenditure).

Note no (1): Contingent liabilities at Sr. No.(A)(i), (A)(iii) 8t(A)(iv) are dependent upon court decision/out of court settlement/disposal of appeal etc.

Note no (2): Amount Indicated as Contingent liability/claims against the corporation only reflect basic value. Legal and other costs being indeterminable at this stage are not considered.

C. The Corporation had taken a property on rent from the Custodian of Enemy Property in 1965. Subsequently the said property was released in favour of present owner by the Custodian. The owner had filed a suit for recovery of the possession of the said property. The Hon'ble High Court decided the matter in favour of the owner and the Corporation was directed to vacate the property. The Hon'ble high court also fixed the rent @ 7 30,000/- for the month of January 1980 only on lumpsum/adhoc basis alongwith interest and also appointed a local Commissioner to determine the amount of rent for the period from 1.2.1980 til! date of handing over the possession of the property. Aggrieved by the decision,a Special leave Petition before the Hon'ble Supreme Court was filed which was dismissed by the court & upheld the earlier judgement of the Hon'ble High Court. Accordingly the premises was vacated & possession handed over to the owner on 28.02.2007. Pending determination by the local Commissioner of the amount payable no provision has been made in the accounts.

D. A case was filed by Ms. S I Beer, an Australian resident, in 1982 in Hon'ble Delhi High Court. She had sustained injury at the erstwhile Akbar Hotel Swimming Pool on 05.05.1978. She filed the case against the corporation claiming Rs.2.00 crore by way of damages plus interest @ 18%. The Single Bench of the Hon'ble Delhi High Court passed an order dated 03.03.2011 in favour of the plaintiff awarding Rs.1.82 crore along with simple interest @6% w.e.f.22.01,1982 till the date of the decree and further simple interest on the said amount @ 10% p.a. till Its realisation. Aggrieved from the above judgement, ITDC has filed an appeal before the Divisional Bench of Hon'ble Delhi High Court. The Hon'ble Court vide order dated 19.07,2011, while staying the above judgement and execution proceedings, has directed ITDC to deposit an amount of Rs.508.61 lakh, the decreetal amount with the Registrar General of the Delhi High Court. Accordingly ITDC has deposited the said amount during the F/Y 2010-11,2011-12 with the court. Therefore pending finalisation in the matter, no provision has been made in the Accounts for F/Y 2011-12 and the amount of Rs.508.61 lakh has been included as Contingent liability at l(a)(i) above and also the additional contingent liability of Rs.1500 lakhs was also made due to counter additional claim was filled by advocate of Ms. SI Beer.

E. M/s Airports Authority of India(AAi) and other private airport operators had levied service tax on their billings for licence fee/royalty for Duty Free Shops at various locations and Ashok Airport Restaurant w.e.f. 10.9.2004. However the Circular dated 17.9.2004 Issued by Government of India provides that the activity of renting, leasing out part of airport/civil enclave premises does not amount to rendering of services and the license fee/royalty payable in this regard is not subject to service tax. Similar views on non levying of service tax on such licence fee/royalty have also been opined by tax consultants. The issue is also under consideration by the Director General of Central Excise Intelligence. Pending clarifications, no provision has been made for the estimated liability, towards service tax for the period from 10.9.2004 to 31.3.2008 for all the ten duty free shops, which works out to Rs.1,779.49 lacs (Previous year Rs.1,779.49 lacs).

F. The Employees State insurance Corporation (ESI) authorities had raised demands (including interest where applicable) totalling Rs.703.60 lakhs(Previous year Rs.682.43 lakhs) towards ESi dues in respect of four hotel/catering units against which the corporation holds a deposit of Rs. 326.16 lakhs (Previous year Rs.319.32 lakhs)(inciuded in Loans and Advances) with the said authorities(made up of amounts withdrawn by the authorities after freezing bank accounts - Rs.310,08 lakhs and amount deposited Rs.16.08 lakhs). Against this the corporation holds a liability of Rs.193,41 lakhs (previous year Rs.194.42 lakhs) towards ESI dues. No provision has been made for the balance of Rs.510.19 lakhs(Previous year Rs.488.01 lakhs) as the matter is sub-judice and pending finality In the matter, the same has been included under Contingent Liabilities at SI. No. (A)(i) above.

1. Confirmation of balances have not been received in most of the cases of Trade receivable , Trade payable , Loans and Advances and Deposits. Besides in a few units, balances in customers accounts are under reconciliation with the General Ledger control account bafances.Effect on the accounts on due confirmation, reconciliation and adjustments thereof cannot be Indicated at this stage.

2. The account of National Buildings Construction Corporation (NBCC) for work done at project in Iraq could not be reconciled due to non-receipt of detailed statement of account/confirmations from the party.

3. The current liabilities, current assets and revenue items of project at Iraq in US Dollar have been converted on the basis of prevailing rate of exchange as on 31.3.2012.The net loss of Rs. 4.01 lakhs (previous year net gain of Rs. 0.58 lakhs) has been debited to statement of profit & loss a/c. Further in case of M/s NBCC, the liability has been shifted in INR in view of issue of bonds by EXIM Bank to NBCC In INR against amount payable in US Dollar. The balance in Iraqi dinar, however continues to appear in the books as recorded as on 31.03.1991 in view of non- availability of exchange rate.

5. Following past practice, consumption of Stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting therefrom closing balance based on physical inventories valued as per accounting policy.

6. The Corporation has been managing Hotel Bharatpur Ashok and Kosi Restaurant owned by Ministry of Tourism and the profit/loss in respect of these units is accounted for by the Corporation, in the respective notes of statement of Profit & Loss Account.

7. Company entered into an Agreement dt. 19th February,2002 with M/S Maruti Udyog Itd.for renewal of Sub-Lease from 1st February 2002 to 31st January,2011 and another period of nine years thereafter subject to enhancement of rent in respect of the property comprising of Workshop cum Depot constructed on Plot No. C-119 Naraina Industrial Area Phase-1, New Delhi. As per terms of agreement the entire rent for a period of 9 years was paid by Maruti Udyog Ltd in advance. During the currency of the lease period, M/S Maruti Udyog Ltd carried out additional construction in the said premises and in the process the Workshop cum Depot th
8. Disclosure In pursuance of Accounting Standard -19 on Leases:-

The corporation's leasing arrangements are generally In respect of operating lease for premises (residential, office accomodation, and godownsetc). These leasing arrangements are not non-cancellable and are also usually renewable by mutual consent on mutually agreeable terms.The aggregate lease rentals paid/payable are charged as Rent under Employees Remuneration & Benefits (note-25) & operating and other expenses (note-27). In some of the hotel units, arrangements made with other parties to operate restaurants and other business premises are on licence basis which are also not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms.

9. Impairment of Assets

Impairment of Fixed Assets/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Accounting Standard-28-'lmpairment of Assets' issued by the Institute of Chartered Accountants of India is recognised. As on 31st March, 2012, in the opinion of the Management except to the extent of loss recognised in respect of assets not in active use, capital work-in-progress including incomplete hotel project at Gulmarg, no such impairment loss warranting recognition/provision was noticed.

(d) (i) Amount due to Small Scale Industries, to the extent such parties have been identified from available information, of more than one lakh and for a period exceeding 30 days is Rs. NIL lakh (Previous Year X NIL lakh).

(ii) The Government of India had promulgated "The Micro,Small and Medium Enterprises Development Act, 2006".As per the said Act, the corporation is to identify the parties and pay them interest beyond the specified period if not paid. The corporation is in the process of identifying the supplie'ln view of this, the liability for interest could not be worked out.

(iii) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towards rehablliation/revival of sick industrial companies, which shall not be less than 0.005% but not more than 0.10% of the turnover or the gross receipts as the Central Government may from time to time specify in the Official Gazette. Since no notification has been issued, provision thereof has not been created.

10. The financial statements for the year ended 31st March,2011 had been prepared as per the then applicable pre-revised Schedule VI to the Companies act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year 31st March, 2012 are prepared as per Revised Schedule VI. Previous years' figures have been reclassified/regrouped to conform to this year's classification. The adoption of Revised schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2010

1 CONTINGENT LIABILITIES

(Rs. in Lakh)

(a) Particulars Current Year Previous Year

(I) Claims against the corporation not acknowledged as debts [Includes for property tax Rs. NIL (Previous Year Rs.5733.32 takh) demands from custom authority Rs.21874.68 Lakh(Previous Year Rs.21881.80 Lakh) and 28538.11 36003:64 an sub-judice].

(II) Estimated amount of contracts remaining to be executed on capital account (net of advances and excluding escalation In rates, if any) 2901.76 54.78 (on completion, part of the work may result as revenue expenditure).

(iii) Guarantees executed in favour of various authorities, banks and financial institution [including guarantees provided against loans 212.27 136.18 obtained by subsidiary companies, Rs.90.00 Lakh (Previous year Rs.90.00 Lakh),

(iv) Letter of Credit outstanding 84,18 --

(v) Income Tax matters In appeal [Includes appeals preferred by Income 507.09 363.21 Tax Department Rs.25.72 Lakh (Previous Year Rs.25.72 Lakh)]

(vi) Sales Tax matters in appeal [Includes Rs. 2465.62 Lakh (Previous Year Rs. 246S.62 Lakh) in respect of Duty Free Shop, Mumbal, appeals 12040.39 9422.95 against which are pending before Maharastra Sales Tax Tribunal / High Court).

(vii) Liability towards service tax (Including Interest thereon ) pertaining to

(a) banqueting Including catering activities, at hotels upto 31.03.2007. Amount Amount (b) Liability towards work contract tax (including Interest thereon ) Unascertained unascertained pertaining to building repair work carried at units.

Note no (1) Contingent Liabilities at Sr. No.1(a)(1),l(a)(v) &i(a)(vi) are dependent upon court decision/out of court settlement/disposal of appeal etc.

Note no (2): Amount indicated as Contingent liability/ claims against the corporation only reflect basic value. Legal and other costs being Indeterminable at this stage are not considered.

2 CURRENT LIABILITIES AND PROVISIONS

(a) M/s Airports Authority of india(AAl) and other private airport operators had levied service tax on their billings for licence fee/royalty for Duty Free Shops at various locations and Ashok Airport Restaurant w.e.f, 10.9.2004. However the Circular dated 17.9.2004 Issued by Government of India provides that the activity of renting, leasing out part of alrport/clvll enclave premises does not amount to rendering of services and the license fee/royalty payable in this regard Is not subject to service tax. Similar views on non levying of service tax on such licence fee/royalty have also been opined by tax consultants. The issue Is also under consideration by the Director General of Central Excise Intelligence. Pending clarifications, no provision has been made for the estimated liability, towards service tax for the period from 10.9.2004 to 31.3,2008 for all the ten duty free shops, which works out to 71779.49 Lakh(Prevlous year-Rs. 1779.49 Lakh.

(b) The Employees State Insurance Corporation (ESI) authorities had raised demands (Including interest where applicable) totalling Rs.660.23 Lakh (Previous year Rs.631.02 Lakh) towards ESI dues in respect of five hotel/catering units against Which {he corporation holds deposits of 7319.32Lakh (Previous year-Rs.319.32 Lakh)(included In Loans and Advances) with the said authorlties(made up of amounts withdrawn by the authorities after freezing bank accounts-Rs.302.22 Lakh and amount deposited 117.10 Lakh). Against this the corporation holds a liability of Rs 194.42(previous year 194.42 Lakh) Lakh towards ESI dues, No provision has been made for the balance of Rs. 465.81 Lakh(Prevlous year Rs.436.60 Lakh) as the matter is sub-judice and pending finality In the matter, the same has been included under Contingent Liabilities at SI. No. 1(a)(1) above.

(c ) The Corporation had taken a property on rent from the Custodian of Enemy Property In .1965. Subsequently the said property was released in favour of present owner by the Custodian. The owner had filed a suit for recovery of the possession of the said property. The Honble High Court decided the matter In favour of the owner and the Corporation was directed to vacate the property. The Honble high court also fixed the rent Rs.30,000/- for the month of January 1980 only on lumpsum/adhoc basis alongwlth Interest and also appointed a Local Commissioner to determine the amount of rant for the period from 1,2,1980 till data of handing over the possession of the property, Aggrieved by the decision,* Special Leave Petition before the Honble Supreme Court was filed which was dismissed by the court & upheld the earlier Judgement of the Honble High Court. Accordingly the premises was vacated & possession handed over to the owner on 28.02.2007. Pending determination by the Local Commissioner of the amount payable no provision has been made In the accounts.

(d) Sundry creditors include unlinked receipts from customers etc.of Rs.65.22 Lakh (Previous year Rs.95.31 Lakh) which could not be linked to respective customer accounts, for want of adequate details.

3 CAPITAL WORK-IN-PROGRESS

(a) Capital work-in-progress includes expenditure attributable to projects, to be apportioned to various projects upon their completion.

(b) The physical Inspection of the incomplete hotel project at Gulmarg since 1984-85 has been carried out during 2009-10 by the corporations engineers and architect, who have opined that the expected realisable value of the assets will be more than the amount invested up to 31.03,10 of Rs. 209.69 Lakh(Previous Year Rs.206.56 Lakh )and consequently no provision for impairment of assets has been considered necessary.

4 FIXED ASSETS

(a) Terms of purchase/lease of land having not been finalised and registration of title deeds/execution of lease deeds having not been effected, liability towards cost/lease rent, ground rent and registration fee, etc, has not been created In respect of Hotel Patllputra Ashok at Patna, Ashok Institute of Hospitality and Travel Management(AIH&TM) and Tennis Court at New Delhi,

(b) Lease deeds/title deeds have not yet been executed in favour of the corporation in respect of land at Hotel Samrat and Office Premises In Scope at New Delhi.

(c) Premium paid on Leasehold Land at Hotel Samrat, New Delhi have not been amortised In the absence of any tenure in terms of allotment.


(e) Registration of title deeds In favour of the corporation have not been effected In respect of:-

i) Land and building of Taj Restaurant at Agra. ii) Land at Gulmarg.

(f) Lease deed In respect of Hotel Jammu Ashok expired on 11.01.2010, pending renewal of the same liability towards lease rent etc. has been provided.

Pending finallsatlon of cost and adjustment thereof, capitalisation of Land, Building, Furniture & Fixtures and Equipment of retained Traders Lodges, Restaurants and Hotel taken over from Ministry of Tourism, has been effected based on the payments made.

Pendings receipt/ scrutiny of final bills of the contractors/suppliers, settlement of the rates for extra Items and escalation etc., the capitalsation and/ or charge to expenditure to the extent of Rs.1171.13 Lakh has been accounted for based on certificate* Issued by Projct Engineers for the work carried out at various projects, jprevlous year Rs. 843.67 Lakh). Adjustments if any to cost is proposed to be carried out upon final settlement of the bills.

5 In respect of Ranchl Ashok Bihar Hotel Corporation Limited (Subsidiary corporation) whose property was attempted to be takin over by Financial Institutions during 1996-97, a provision has been made for decrease In the value of Investments Rs. 38.52 Lakh (Previous Year Rs. 36,52 Lakh) and estimated lower readability of debts and advances, amounting to Rs. Nil (Previous Year Rs. 20.03 Lakh).

(b) Confirmation of balances have not been received In most of the cases of Sundry Debtors, Creditors, Loans and Advances and Deposits. Besides in a few units, balances in customers accounts are under reconciliation with the General Ledger control account balances.Effect on the accounts on due confirmation, reconciliation and adjustments thereof cannot be indicated at this stage.

(c) The account of National Buildings Construction Corporation (NBCC) for work done at project in Iraq could not be reconciled due to non- receipt of detailed statement of account/confirmations from the party.

(e) Amount recoverable includes:-

(i) Rs. 268.73 Lakh (Previous year Rs.268.73 Lakh) from NDMC relating to transfer of fixed assets of erstwhile Akbar Hotel as agreed with them under package deal. The NDMC has agreed to adjust this amount against dues of property tax upon finalisation and determination of the said amount.

(ii) Rs. 208.00 Lakh (Previous year Rs.208.00 Lakh) paid by the corporation against bid for property of Ranchl Ashok Bihar Hotel Corporation Limited (Subsidiary corporation) which was attempted to be taken over by the Financial Institutions due to non- repayment of loan & Interest by the subsidiary corporation. Subsequently, co-promoter viz. Bihar State Tourism Development Corporation Ltd (BSTDC) had also offered to purchase the said property against which ITDC has filed a case in the High Court and matter is subjudice.

7 PROFIT ANP LOSS ACCOUNT.

(a) The current liabilities, current assets and revenue items of project at Iraq in US Dollar have been converted on the basis of prevailing . rate of exchange as on 31.3.2010.The net gain of 73.31 Lakh (previous year net loss of 76.83 Lakh) has been credited to profit and loss account. Further in case of M/s NBCC. the liability has been shifted in INR in view of issue of bonds by EXIM Bank to NBCC In INR against amount payable In US Dollar. The balance in Iraqi dinar however continues to appear in books as recorded as on 31.03.1991 in view of non-availability of exchange rate.

(b) Interest on deferred payments from M/s NBCC from 01.4.1994 onwards regarding Iraq project has not been accounted for in the absence of advice from NBCC. _

(d) Following past practice, consumption of Stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting therefrom closing balance based on physical Inventories valued as per accounting policy.

(m) Out of the balance amount of Rs. 20.56 Lakh (Previous year Rs. 21.40 Lakh) of Deferred Government Grants from the Ministry of Tourism for the renovatlon/upgradation of properties, a sum of Rs. 9.21 Lakh incurred during the year (Previous year 10.84 Lakh) has been charged to the respective head of expenditure. The amount equivalent to the grant related cost incurred during the year has accordingly been recognised as Income. The balance of Rs. 11.35 Lakh (previous year Rs. 20.56 Lakh) at the close of the year has been presented in the accounts as Deferred Government grant after Reserve and Surplus.

(n) Rs.1629.88 Lakh spent on renovation during the year at various hotels has been segregated as relating to capital Rs. 1116.96 Lakh and revenue expenditure Rs. 512.92 Lakh based on certificate Issued by the Project engineer and which have been relied upon by the auditors.

(o) (a) Pending execution of fresh license Agreements, income from License fees( from continuing licensees)has been accounted for on provisional basis and/or based on the earlier license agreements.

b) Consequent to the flnallsation of revised license agreements in case of one of the hotel unit ,a sum of 1334.28 lakh has been accounted for as Income from services rendered (including Rs. 141.44 Lakh pertaining to period up to 31.03.2009) during the year.

8 DISINVESTMENT OF. HOTEL UNITS

(a) As per Government of Indias policy of disinvestment, 10 hotel units of the corporation were dlsinvested In the year 2001-02 and 11 more hotel units were disinvested and handed over during the year 2002-03, The entire exercise relating to disinvestment process was handled directly by Ministry of Disinvestment, Government of india.The salient features of the scheme of demerger between ITDC and respective newlv Incorporated companies for each disinvested hotel unit are as under:-

i) With effect from appointed date, i.e. 31.3.2000, the disinvested units, pursuant to the provisions contained In section 394 of the Companies Act, 1956, were transferred to and vested In the transferee companies alongwith all assets, liabilities, debts and obligations pertaining to disinvested units,

ii) The units got demerged w.e.f. 31.3.2000 and thereafter up to the date of handing over, ITDC is deemed to have carried on all business relating to disinvested units for and on account of and in trust for the transferee companies.

iii) With effect from 31.3.2000 and up to the date of handing over on the date of signing of the share purchase agreements, all profits accruing to ITDC losses arising or incurred by it relating to disinvested units were, for ail purposes, to be treated as the profits or losses, as thecases of the transferee companies.

(b) As per the Share Purchase Agreements between the purchasers, transferee companies and Government of India (Department of Tourism), the post closing adjustments are to be settled by the Department of Tourism with the respective purchasers on the blsls of audited accounts of dlslnvested units as of 31.03.2001. Therefore the amount of Rs.1326.12 Lakh (Previous Year Rs.1326.12 Lakh) (comprising of transfer of funds from Corporate Office/ remittances made and expenses Incurred by Headquarters and other units on behalf of dlslnvested units and net of other transactions) has been shown as recoverable from 15 transferee companies on account of carrying on the businesses of dlslnvested units for and on account of and in trust for transferee companies as per (a) above.during the period from 1,4.2001 upto dates of handing over of the respective units and the same Is included in Loans & Advances. In case of 3 transferee companies (net of similar transactions) amounting to Rs. 356.45 Lakh (Previous Year Rs. 356.45 Lakh ) due to them, is Included in Sundry Creditors. However no confirmation from respective transferee companies have been obtained.

(c) Regarding the claim for the period from 1,4.2000 to 31.03.2001 Rs.3316.30 Lakh (Including? 61.48 Lakh recoverable directly from a transferee company in respect of units at Bangalore, the share holding of which continues to be with Government and other existing shareholders), the claims have been lodged with the Department of Tourism, Government, of India and as the Government has not taken any decision till date on these claims, the same has not been accounted for as recoverable in accounts.

9 Against the Share Application money of Rs. 73.00 crore received from Govt, of India in December 2007,1,82,50,000. no. of equity shares have been alloted to The President of India through preferential allotment on 14.09.2009 @ Rs 40/- per share (including premium 7 30/- per share) in the demat form. These shares will rank pari passu and have the lock in period of 3 years.

10 Rental, agreement with Life Insurance Corporation of India (LIC) expired on 25.07,2005 and was pending renewal. Pending finalisation of ¦ terms and conditions and execution of new lease deed, the corporation had provided for rent payable to the Life Insurance Corporation of India, for premises under Its occupation @ Rs 60/- per sq.feet for the period from 26/07/2005 to 22/02/2008 and Rs 100/- per sq.feet for the period from 23/02/2008 to 31/03/2010 as against Rs 100/- per Sq. feet originally indicated by the DC for the entire period. Pending renewal of agreement/ finalisation of terms and conditions with UC amount of Rs 188.94 Lakh(Prevlous year Rs 186.94 lakh) being the difference between the amount indicated by the LIC @ Rs 100/- per Sq.Feet and that provided upto the period 22/2/08 has been included under Contingent Liabilities In para 1 (a) (I).

11 (a) The Corporation had, with due approval of its board and administrative ministry vide its letter dated 27.10.2010, decided to implement and implemented the wage settelment in respect of unionized workers on IDA pattern w, e. f. 01.01.2007. Accordingly, the liability on account of the Arrears of Pay Revision amounting to Rs 3335.24 Lakh (Including implication to PF and other allowances) for the period from 01.01.2007 to 31.03.2010 has been provided and charged to Profit and Loss Account.

(b) Though the corporation had considered the provident fund In cases referred to in (a) above, no such consideration could be given to the provisions for Gratuity and Leave Encashment, due to pay revision. Effect on the accounts on due quantification and recording thereof cannot be indicated at this stage.

12 .The Corporation had, for the purpose of running of the Duty Free Trade In India, established on 18/09/2007 a Joint Venture Company (JV) in collaboration with M/s Aldeasa of Spain vide agreement dated 10/07/2007. In terms of the JV agreement, the corporation and Aldeasa were to equally contribute funds to the JV towards capital and accordingly the corporation has, being a promoter subscriber, recorded an Investment to the extent of Rs 50,000 (5,000 equity shares of Rs 10 each) in the Joint venture, though the share certificates remained to be received from the JV company. During the year on the basis of draft financial statements of the JV company and concept of prudence corporations share of loss amounting to Rs 245.52 Lakh In connection with running of the JV has been accounted for based on the ratification of expenditure by JV Board & subsequent acceptance by ITDC. The amount of Rs 32.23 Lakh Incurred by ITDC In connection with JV operations shown as amount recoverable in earlier year has been adjusted during the year from the liability of Rs.245.52 lakh.

II) The disclosure relating to AS-15 (Revised)

• Employees Benefits:-

(a) Provident Fund -12% of Basic (including dearness pay) plus Dearness Allowance, contributed to Recognised Provident Fund.

(b) Leave Encashment -Payable on separation to eligible employees who have accumulated earned leave.

(c) Gratuity- Payable on separation @ 15 days pay for each completed year of service to eligible employees who render continuous service for 5 years or more. Maximum limit Is Rs.10.00 Lakh.

iii) Disclosure pursuant to Accounting Standard 17 on Segment Reporting is given In Annexure "B" to this schedule.

iv) Disclosure of transactions with related parties as per Accounting Standard -18, to the extent applicable. Is as under: •

Key Management Personnels: -

1 Mr. Lalit K Panwar, C&MD w.e.f ,21,04.2010

2 Mr. Sanjay Kothari, Ex.C&MD w.e.f. 01.12.2009 to 21.04.2010.

3 Mr. Parvez Dewan, Ex.C&MD w.e.f.05.04.2006 to 01.12.2009.

4 Mr. P.K.Agarwal, Director (Finance) w.e.f. 29.07.2010.

5 Mr. P.P.Stngh, Ex. Director (Finance) w.e.f. 25.08.2005 to

6 Mr, Rajiv Makln, Ex Director (C&M) w.e.f. 17.10.2008 to 31.07,2010.

v) Disclosure In pursuance of Accounting Standard -19 on leases:-

The corporations leasing arrangements are generally in respect of operating lease for premises (residential, office accomodation, and godowns etc). These leasing arrangements are not non-cancellable and are also usually renewable by mutual consent on mutually agreeable terms.The aggregate lease rentals paid/payable are charged as Rent under Employees Remuneration & Benefits (Schedule- 10) & operating and other expenses (Schedule-11). In some of the hotel units, arrangements made with other parties to operate restaurants and other business premises are on licence basis which are also not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms.

viii) Impairment of Assets:- Accounting Standard - 28)

Impairment of Fixed Assets/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Accounting Standard-28-lmpalrment of Assets issued by the Institute of Chartered Accountants of India Is recognised. As on 31st March, 2010, in the opinion of the Management except to the extent of loss recognised in respect of assets not in active use capital work- in-progress, no such Impairment loss warranting recognition/provision was noticed.

(e) (I) Amount due to Small Scale Industries, to the extent such parties have been identified from available Information, of more than one lakh and for a period exceeding 30 days Is t NIL (Previous Year T NIL Lakh).

(ii) The Government of India had promulgated "The Micro.Small and Medium Enterprises Development Act 2006"As per the said Act, the corporation is to Identify the parties and pay them interest beyond the specified period if not paid. The corporation is in the process of Identifying the suppliefln view of this, the liability for interest could not be worked out.

(iii) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towards rehablliatlon/revlval of sick Industrial companies, which shall not be less than 0.005% but not more than 0.10% of the turnover or the gross receipts as the Central Government may from time to time specify in the Official Gazette. Since no notification has been issued, provision thereof has not been created.

(f) Additional information regarding details of opening stock, purchases, closing stock, consumption of raw materials, sates and services and consumption of imported and indigenous raw material, spare parts and components has not been given as the corporation has been exempted from providing such information vide Order No46/180/2009-CL-III of the Ministry of Corporate Affairs dated 02.07.2009 for the financial years 2008-09 to 2010-11.

(a) The corporation has been vide letter dated 04.11,2010 exempted under section 212(8) from annexing the Accounts of Subsidiary Companies with the Annual Accounts of the corporation from the Ministry of Company Affalrs.Government of India for the period upto 31.03.2010,

15 Balance Sheet Abstract and corporations General Business Profile as per part IV, Schedule VI to the Companies Act 1956 Is given In Annexure

16 Previous years figures have been regrouped/rearranged wherever necessary.


Mar 31, 2009

1 CURRENT LIABILITIES AND PROVISIONS

(a) M/s Airports Authority of India(AAI) and other private airport operators had levied service tax on their billings for licence fee/royalty for Duty Free Shops at various locations and Ashok Airport Restaurant w.e.f. 10.9.2004. However the Circular dated 17.9.2004 issued by Government of India provides that the activity of renting, leasing out part of airport/civil enclave premises does not amount to rendering of services and the license fee/royalty payable in this regard is not subject to service tax. Similar views on non levying of service tax on such licence fee/royalty have also been opined by tax consultants. The Issue is also under consideration by the Director General of Central Excise Intelligence. Pending clarifications, no provision has been made for the estimated liability, towards service tax for the period from 10.9.2004 to 31.3.2008 for all the ten duty free shops, which works out to Rs.1779.49 lacs (Previous year-Rs.1779.49 lacs).

(b) The Employees State Insurance Corporation (ESI) authorities had raised demands (including interest where applicable) totallingRs.631.02 lakhs (Previous year Rs.609.20 lakhs) towards ESI dues in respect of five hotel units against which the corporation holds a deposit of Rs.319.32lakhs (included In Loans and Advances) with the said authorities(made up of amounts withdrawn by the authorities after freezing bank accounts-Rs.302.22 lakhs and amount deposited Rs.17.10 lakhs). Against this the corporation holds a liability of Rs194.42 lakhs towards ESI dues. No provision has been made for the balance of Rs. 436.60 lakhsfPrevious year Rs.414.77 lakhs) as the matter is sub-judice and pending finality In the matter, the same has been included under Contingent Liabilities at SI. No. 1(a)(i) above.

(c) The Corporation had taken a property on rent from the Custodian of Enemy Property in 1965. Subsequently the said property was released in tavour of present owner by the Custodian. The owner had filed a suit lor recovery of the possession of the said property. The Honble High Court decided the matter in favour of the owner and the Corporation was directed to vacate the property. The Honble high court also fixed the rent @ Rs.30.000/- for the month of January 1980 only on lumpsum/adhoc basis alongwith interest and also appointed a Local Commissioner to determine the amount of rent for the period from 1.2.1980 till date of handing over the possession of the property. Aggrieved by the decisions Special Leave Petition before the Honble Supreme Court was filed which was dismissed by the court & upheld the earlier Judgement of the Honble High Court. Accordingly the premises was vacated & possession handed over to the owner on 28.02.2007. Pending determination by the Local Commissioner of the amount payable no provision has been made in the accounts.

(d) Sundry creditors include unlinked receipts from customers etcof Rs.95.31 lakhs (Previous year Rs.64.85 lakhs) which could not be linked to respective customer accounts, for want of adequate details.

2 CAPITAL

(a) Capital work-in-progress includes expenditure attributable to projects, to be apportioned to various projects upon their completion.

(b) The physical inspection of the incomplete hotel project at Gulmarg since 1984-85 has been carried out during 2008-09 by the corporations engineers and architect, who have opined that the expected realisable value of the assets will be more than the amount invested up to 31.03.09 of Rs. 206.56 lakhs and consequently no provision for impairment of assets has been considered necessary.

3 FIXED ASSETS

(a) Terms of purchase/lease of land having not been finalised and registration of title deeds/execution of lease deeds having not been effected, liability towards cost/lease rent, ground rent and registration fee, etc has not been created in respect of Hotel PatJiputra Ashok at Patna, Ashok Institute of Hospitality and Travel Management(AIH&TM) and Tennis Court at New Delhi.

(b) Lease deeds/title deeds have not yet been executed in favour of the corporation in respect of land at Hotel Samrat and Office Premises in Scope at New Delhi.

(c) Lease deed in respect of land of Ashok Hotel, New Delhi is registered In the name of erstwhile Ashoka Hotels Limited, which was merged with the corporation on 28th March, 1970.

(d) Registration of title deeds In favour of the corporation have not been effected in respect of:-

i) Land and building of Taj Restaurant at Agra. ii) Land at Gulmarg.

(e) Pending finalisation of cost and adjustment thereof, capitalisation of Land, Building, Furniture & Fixtures and Equipment of retained Travellers Lodges, Restaurants and Hotel taken over from Ministry of Tourism, has been effected based on the payments made.

(f) Pending receipt/ scrutiny of final bills of the contractors/suppliers, settlement of the rates for extra items and escalation etc., the capitalisation and/ or charge to expenditun o the extent of Rs. 843.67 lakhs has been accounted for based on certificates issued by Project Engineers for the work carried out aU$ah)j0j3arai|Bts (previous year Rs. 755.79 lakhs). Adjustments, if any, to cost is proposed to be carried out upon final settlement of the bills.

(g) Premium paid on Leasehold &att) at Hotel Samrat, New Delhi have not been amortised in the absence of any tenure in terms of allotment

4 In respect of Ranch) Ashok Bihar Hotel Corporation Limited (Subsidiary corporation) whose property was attempted to be taken over by Financial Institutions during 1996-97, a provision has been made for decrease in the value of Investments and estimated lower realisablllty of debts and advances, amounting to Rs.56.S5 lakhs (Previous Year Rs. 56.65 lakhs).

(ii) Besides the Corporation has investments in these Subsidiaries /Joint ventures aggregating to Rs. 759.70 lakh. These investments have been evaluated at cost despite significant accumulated losses In some of the companies / one of the subsidiary companies some of the companies not carrying on any activities.The corporation had also decided to postpone the accounting for Income from these companies (viz.management fees & interest on loans given ) to actual realisation / to the extent of deposit of taxes deducted at source In view of the repayment not being commensurate with the amount charged to them.The accounts recoverables as listed above have, however, been considered good of recovery keeping in view of the long term relationship with those companies and the intrinsic value of the assets held by the companies.

(b) Confirmation of balances have not been received in most of the cases of Sundry Debtors, Creditors, Loans and Advances and Deposits. Besides in a few units, balances in customers accounts are under reconciliation with the General Ledger control account balances.Effect on the accounts on due confirmation, reconciliation and adjustments thereof cannot be Indicated at this stage.

(c) The account of National Buildings Construction Corporation (NBCC) for work done at project in Iraq could not be reconciled due to non-receipt of detailed statement of account/confirmations from the party.

(ii) Rs. 208.00 lakhs (Previous year Rs.20B.00 lakhs) paid by the corporation against bid for property of Ranchi Ashok Bihar Hotel Corporation Limited (Subsidiary corporation) which was attempted to be taken over by the Financial Institutions due to non-repayment of loan & interest by the subsidiary corporation. Subsequently, co-promoter viz. Bihar State Tourism Development Corporation Ltd (BSTDC) had also offered to purchase the said property against which ITDC has filed a case In the High Court and matter is subjudice.

5 PROFIT AND LOSS ACCOUNT.

(a) The current liabilities, current assets and revenue Kerns of project at Iraq in US Dollar have been converted on the basis of prevailing rate of exchange as on 31.3.2009.The net loss of Ra.8.83 lakhs (previous year net gain of Rs.3.11 lakhs) has been debited to profit and loss account Further in case of M/s NBCC, the liability has been shifted in INR in view of issue of bonds by EXIM Bank to NBCC in INR against amount payable in US Dollar. The balance in Iraqi dinar however continues to appear in books as recorded as on 31.03.1991 in view of non-availability of exchange rate.

(b) Interest on deferred payments from M/s NBCC from 01.4.1994 onwards regarding Iraq project has not been accounted for in the absence of advice from NBCC.

(d) Following past practice, consumption of Stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting therefrom closing balance based on physical inventories valued as per accounting policy.

(e) Deffered Revenue Expenditure relating to compensation paid to employees opting voluntary retirement was hitherto written off over a period of 5 years in terms of accounting policy in operation upto 31.3.2008, However.with the changes in Accounting Standard 15, it has been decided to write off the balance with no residual as of 31.3.2010. Consequent to this change there is an additional debit to the extent of Rs.12,023,326.00 in the Profit & Loss account

(l) Cost of consumption of Raw material, other materials sold and services in Schedule 9 Includes cost of food consumed byioperational staff at catering establishments (amount not ascertained).

(m) Out of the balance amount of Rs.21.40 lakhs (Previous year Rs.22.24 lakhs) of Deferred Government Grants from the Ministry of Tourism for the renovatjon/upgradatlon of properties, a sum of Rs.0.84 lakhs(previous year Rs.0.64 lakhs) incurred during the year has been charged to the respective head of expenditure. The amount equivalent to the grant related cost Incurred during the year has accordingly been recognised as income. The balance of Rs. 20.S6 lakhs(previous year Rs.21.40 lakhs) at the dose of the year has been presented in the accounts as Deferred Government grant below Reserve and Surplus.

(n) Rs.892.90 Lacs spent on renovation during the year at various hotels has been segregated as relating to capital Rs.277.07 lacs and revenue expenditure Rs.615.B3 Lacs based on certificate issued by the Project engineer and which have been relied upon by the auditors.

(o) (a) Pending execution of fresh license Agreements, income from License fees( from continuing llcensees)has been accounted for on provisional basis and/or based on the earlier license agreements.

(b) Consequent to the resolution of pending issue of licensees with transport division, finalisation of revised license agreements in case of hotel units a sum of Rs. 1308.51 lac has been accounted for as income from services rendered (including Rs.384.79 lac pertaining to period upto 31.03.2008) during the year.

6 DISINVESTMENT OF HOTEL UNITS

(a) As per Government of Indias policy of disinvestment, 10 hotel units of the corporation were disinvested in the year 2001-02 and 11 more hotel units were disinvested and handed over during the year 2002-03. The entire exercise relating to disinvestment process was handled directly by Ministry of Disinvestment, Government of India/The salient features of the scheme of demerger between ITDC and respective newly incorporated compares for each disinvested hotel unit are as under-

i) With effect from appointed date, I.e. 31.3.2000, the disinvested units, pursuant to the provisions contained In section 394 of the Companies Act, 1956, were transferred to and vested in the transferee companies alongwith all assets, liabilities, debts and obligations pertaining to disinvested units.

ii) The units got demerged w.e.f. 31.3.2000 and thereafter up to the date of handing over, ITDC is deemed to have earned on all business relating to disinvested units for and on account of and in trust for the transferee companies.

iii) With effect from 31.3.2000 and up to the date of handing over on the date of signing of the share purchase agreements, all profits accruing to ITDC or losses arising or incurred by it relating to disinvested units were, for all purposes, to be treated as the profits or losses, as the case may be, of the transferee companies.

(b) As per the Share Purchase Agreements between the purchasers, transferee companies and Government of India (Department of Tourism), the post closing adjustments are to be settled by the Department of Tourism with the respective purchasers on the basis of audited accounts of disinvested units as of 31.03.2001. Therefore the amount of Rs.1326.12 lakhs (Previous Year Rs.1326.12 lakhs) (comprising of transfer of funds from Corporate Office/ remittances made and expenses incurred by Headquarters and other units on behalf of disinvested units and net of other transactions) has been shown as recoverable from 15 transferee companies on account of carrying on the businesses of disinvested units for and on account of and in trust for transferee companies as per (a) above during the period from 1.4.2001 upto dates of handing over of the respective units and the same is included in Loans & Advances. In case of 3 transferee companies (net of similar transactions) amounting to Rs. 356.45 lakhs (Previous Year Rs. 356.45 lakhs) due to them, is included in Sundry Creditors. However no confirmation from respective transferee companies have been obtained.

(c) Regarding the claim for the period from 1.4.2000 to 31.03.2001 - Rs. 3316.30 lakhs (including Rs. 61.48 lakhs recoverable directly from a transferee company in respect of units at Bangalore, the share holding of which continues to be with Government and other existing shareholders), the claims have been lodged with the Department of Tourism, Government of India and as the Government has not taken any decision till date on these claims, the same has not been accounted for as recoverable In accounts,

7 Pending completion of the relevant formalities and allotment of shares an amount of Rs.73.00 crores received from the Govt of India has been earned under share application money in the Balance SheetHowever.the allotment of equity shares to Govt of India has been made on 15.09.2009.

8 Rental agreement with Life Insurance Corporation of India (LIC) expired on 25.07.2005 and was pending renewal. Pending finalisation of terms and conditions and execution of new lease deed, the corporation had provided for rent payable to the Life Insurance Corporation of India, for premises under its occupation @ Rs. 60/- per sq.feet for the period from 26/07/2005 to 22/02/2008 and Rs. 100/- per sq.feet for the eriod from 23/02/2008 to 31/03/2009 as against Rs. 100/- per Sq.Feet originally indicated by the LIC for the entire period. Pending renewal of agreement/ finalisation of terms and conditions with LIC amount of Rs, 188.94 lacs being the difference between the amount indicated by the LIC Rs. 100/- per Sq.Feet and that provided upto the period 22/2/08 has been included under Contingent Liabilities in para 1 (a) (I).

9 (a) The Corporation had, with due approval of its board and administrative machinery, decided to implement and implemented the Governmental notification dated 29th August 2008, the rules titled Central Civil Services (Revised Pay) Rules 2008, Viz. 6th Pay Commission for employees, under CDA Pattern and 2nd pay commission report on IDA Pattern effective from January 2006 and January 2007 respectively during the year 200W)9. The liability on account of the pay revision for CDA/IDA employees amounting to Rs. 1240.20 lacs and Rs.193.20 lacs respectively, has been provided and charged to Profit & Loss Account Besides provision for some of the allowances connected with the above employees is being worked out for necessary adjustments. The management, however, feels the impact of the provision would not be material in the financial statements.

(b) In terms of clarification Issued by CBDT vide circular no. 912008 (F. No,275/192/2008- IT (B) dated 29.09.2008) the aggregate arrears of pay (computed after deduction of provident fund and other related regulatory Contribution with reference to revised pay ) were to be paid in two instalments i.e. 40% immediately and the balance 60% in the following year, subject to deduction of taxes at the stipulated rates on 40% and 60% respectively at the time of payment Accordingly, the corporation has deducted taxes from 40% payment made during the year with the balance to be deducted from 60% payment in the following year.

(c)(i) Besides the above, the Corporation had also, during the year, in view of the ensuing proposed wage settlement/ revision in respect of C & D categories of employees w.e.f. 01.01.2007, provided for liablity amounting to Rs.663.42 Lacs and charged in the accounts.

(ii) Though the corporation had considered the provident fund and other regulatory deductions in cases referred to in (a) above.no such consideration could be given to the above payment/provision, pending finality of settlement/revision. Effect on the accounts on due quantification and recording thereof cannot be indicated at this stage.

(d) The Corporations employees are governed by the provisions of the Payment of gratuity Acf,1972. The Corporation had accordingly been providing for gratuity liability and contributing to the life insurance corporation. The ceiling fixed under the Gratuity Act is Rs. 3.50 lacs. However the DPE had revised, w.e.f. 01.01.07. the ceiling from Rs.3.50 lacs to Rs.10.00 lacs to board level, below board level and non-unionised Supervisory cadres on IDA pay pattern. Consequent to the above revision in the limits for certain categories of employees, an additional amount of Rs.92.14 lac has been provided for and charged to Profit & Loss Account

10 Hitherto the Corporation has been accounting for interest income and income from services, from subsidiary and Joint Venture Companies, on accrual basis as per agreements/ at Contracted rates. Commencing from this year however. It has been decided, keeping in view of the financial position of these companies to account for such income when received/ to the extent taxes deducted at source have been deposited by those companies. Had the previous basis been followed the income for the year, loans and advances due from subsidiaries / joint ventures would have both been higher by Rs.146.90 lac

11 The Corporation had, for the purpose of running of the Duty Free Trade in India, established on 18/09/2007 a Joint Venture Company (JV) in collaboration with M/s Aldeasa of Spain vide agreement dated 10/07/2007. In terms of the JV agreement, the corporation and Aldeasa were to equally contribute funds to the JV towards capital and accordingly the corporation has, being a promoter subscriber, recorded an Investment to the extent of Rs. 50,000 (5000 equity shares of Rs. 10 each) in the joint venture, though the share certificates remained to be received from the JV company. Besides the financial statements of the JV company have not yet been prepared, consequently corporations share of profit/loss and contribution towards expenses, if any, In connection with running of the JV could not be ascertained and accounted for. Pending preparation and finalisation of the accounts of the Joint venture and receipt of financial statements, investments in capital of Rs.50000 and the amounts advanced to the tune of Rs.32.23 lacs Inconnectlon with JV operations have been fully provided for following concept of prudence. The Joint Venture partner has claimed Rs.684.96 lac (10,15,650 Euro @ Rs.67.441) as reimbursement of its share of expenses Incurred on joint venture operations which has not been provided for.pending verification of admissibility of the claims.

ii) The disclosure relating to AS-15 (Revised) - Employees Benefits:-

(a) Provident Fund -12% of Basic (including deamess pay) plus Deamess Allowance, contributed to Recognised Provident Fund

(b) Leave Encashment -Payable on separation to eligible employees who have accumulated earned leave

(c) Gratuity- Payable on separation @ 16 days pay for each completed year of service to eligible employees who render continuous service for 5 years or more. Maximum limit in the case of board level.below board level and non unionised supervisory cadres is Rs.10.00 lakh & for others it is Rs. 3.50 lakh.

iii) Disclosure pursuant to Accounting Standard 17 on Segment Reporting is given in Annexure "B" to this schedule. iv) Disclosure of transactions with related parties as per Accounting Standard -18, to the extent applicable, is as under. -

Key Management Personnels: -

1 Mr. Sanjay Kothari, C&MD w.e.f. 01.12.2009

2 Mr. ParvezDewan.C&MD from 05.04.2006 to 1.12.2009

3 Mr.P.P.Singh.Director (Finance) w.e.f August 25,2005.

4 Mr. Rajiv Makin, Director (CSM) w.e.f. October 17,2008

The corporations leasing arrangements are generally in respect of operating lease for premises (residential, office accomodation, and godowns etc). These leasing arrangements are not non-cancellable and are also usually renewable by mutual consent on mutually agreeable terms.The aggregate lease rentals paid/payable are charged as Rent under Employees Remuneration & Benefits (Schedule-10) & operating and other expenses (Schedule- 11). In some of the hotel units, arrangements made with other parties to operate restaurants and other business premises are on licence basis which are also not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms.

As required by Accounting Standard -22, the Deferred Tax Assets/Liabilities were reviewed by the management, based on the advice of tax consultants, and in view of sufficient taxable profits in the current year and the expectation that future taxable profits will be available for realisation of the Deferred Tax Asset and accordingly the above deferred lax asset(Net) up to 31.3.2009 has been recognised In the financial statements.

viii) Impairment of Assets:- Accounting Standard - 28)

Impairment of Fixed Assets/ Capital work-in-progress at each balance sheet date and impairment loss, If any, ascertained as per Accounting Standard- 2B-lmpairment of Assets issued by the Institute of Chartered Accountants of India is recognised. As on 31st March, .2009, in the opinion of the Management except to the extent of loss recognised in respect of assets not in active use capital work-in-progress, no such impairment loss warranting recognition/provision was noticed.

(e) (i) Amount due to Small Scale Industries, to the extent such parties have been identified from available information, of more than one lakh and for a period exceeding 30 days is Rs. NIL (Previous Year Rs. NIL lakhs).

(ii) The Government of India had promulgated "The Mlcro.Small and Medium Enterprises Development Act, 2006" As per the said Act, the corporation is to identify the parties and pay them interest beyond the specified period If not paid. The corporation is In the process of identifying the supptiehUn view of this, the liability for interest could not be worked out

(iii) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towards rehabiliation/revival of sick industrial companies, which shall not be less than 0.005% but not more than 0.10% of the turnover or the gross receipts as the Central Government may from time to time specify in the Official Gazette. Since no notification has been issued, provision thereof has not been created.

(f) Additional information regarding details of opening stock, purchases, closing stock, consumption of raw materials, sales and services and consumption of imported and indigenous raw material, spare parts and components has not been given as the corporation has been exempted from providing such information vide Order NO46/180/2O09-CL-III of the Ministry of Corporate Affairs dated 02.07.2009 for the financial years 2008-09 to 2010-11.

(g) The corporation has been vide letter dated 21.08.2009 exempted under section 212(B) from annexing the Accounts of Subsidiary Companies with the Annual Accounts of the corporation from the Ministry of Company Affairs.Govemment of India for the period upto 31.03.2009.

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