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Notes to Accounts of India Tourism Development Corporation Ltd.

Mar 31, 2023

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

** Proposal was received from the State Government to pay '' 79.39 lakh as depreciated cost of building as full and final amount to ITDC against transfer of all rights and ownership of the project to PTDC and other expenses will be borne by both the Joint Venture Partners as per their respective shareholding and will be booked as loss in their books of accounts. The proposal was examined and approved in the ITDC Board. Hence, on a prudent basis, provision for dimunition in value of investment has been created for an amount of '' 48.11 lakh.

*** Share in Joint Venture Company - ITDC Aldeasa India Private Limited for an amount of '' 0.50 lakh, for which provision for dimunition in value of investment 0f '' 0.50 lakh was already created. RoC vide Notice No ROC-DEL/248(5)/STK-7/071 dated September 1, 2017, notified that the Joint Venture Company - ITDC Aldeasa India Private Limited, have been struck off from the Register of the Companies and the said is dissolved, w.e.f., August 21, 2017.

**** Investment worth '' 25/-, provision has been created against these investments due to non-traceability of the respective share certificates"

Note:

The investment in equity/preference shares in three subsidiary companies viz. Ranchi Ashok Bihar Hotel Corporation Ltd. (RABHCL), Utkal Ashok Hotel Corporation Ltd. (UAHCL) and Pondicherry Ashok Hotel Corporation Ltd. for '' 800.48 lakh included in '' 879.87 lakh and amount recoverable from subsidiary - UAHCL are considered good for recovery despite their having incurred significant accumulated losses.

As regards RABHCL, outstanding loans with interest and other receivables including price of investment, upto December 28, 2020 has been received. However, on account of pendency of share transfer formalities amount against investment has been shown as advance of '' 306.00 lakh.

During the previous financial years sale proceeds of disinvestment of three other subsidiary companies viz. Assam Ashok Hotel Corporation Ltd. (AAHCL), Madhya Pradesh Ashok Hotel Corporation Ltd. (MPAHCL) and Donyi Polo Ashok Hotel Corporation Ltd. (DPAHCL) were received by ITDC which were much more than the amount originally invested in the said subsidiary companies. Moreover, all other outstanding amount receivables from these three subsidiary companies were also fully settled by them. The process of disinvestment of remaining subsidiary company, i.e., UAHCL & Pondicherry Ashok Hotel Corporation Ltd. are also being carried out on the same principle. Therefore, the investment in the subsidiary company and amount recoverable from them are considered good for recovery and no provision against such investment and recoverable is considered necessary.

In Ashok International Trade Division Unit the sum of '' 160.97 lakh paid in the year 2006-07 as security deposit in the form of fixed deposit (FD) receipt in favour of Delhi International Airport Pvt. Ltd. (DIAL) is being shown as recoverable. Its FD was encashed during 2007-08 by DIAL on account of service- tax charged by DIAL in billing of services provided to the Company. This is being disputed by the Company on the ground that the service was not liable for service-tax. Allowance for credit impairment has been created for '' 160.97 lakh during the F.Y. 2020-21.

(*) Proposal was received from the State Government to pay '' 79.39 lakh as depreciated cost of building as full and final amount to ITDC against transfer of all rights and ownership of the project to PTDC and other expenses will be borne by both the Joint Venture Partners as per their respective shareholding and will be booked as loss in their books of accounts. The proposal was examined and approved in the ITDC Board A letter has been sent to State Government communicating the acceptance of the proposal. It was also informed that the expenses to be shared by both the JV partners in the equity sharing ratio i.e. 51:49. Excess expenditure is incurred by ITDC for which recovery is to be made from PTDC for an amount of '' 3.28 lakh. Hence, on a prudent basis, provision for remaining amount recoverable, i.e., '' 45.18 lakh has been created till the year ended March 31, 2023.

Note:

1. Amount Recoverable include an amount of '' 658.57 lakh (Previous year '' 658.57 Lakh) that has been paid to 51 employees of Hotel Janpath, New Delhi for VRS. The same will be adjusted with the compensation amount receivable for loss of business opportunity which is currently under consideration of Ministry of Tourism (MoT). For details refer point no. 16 (a) of Note 39 - General Notes.

2. TDS Receivable amount shown above is subject to year wise reconciliation.

#Amount Recoverable includes an amount of '' 1,696.42 lakh (Previous Year 1,332.11 lakh) as recoverable from Delhi Development Authority (DDA) on account of supply of Furniture and Fixture

* Includes excess fund in the Gratuity Fund Trust which is utilised for Employee Gratuity dues amounting to '' 107.63 lakh (Previous Year NIL)"

B. Rights, preferences and restrictions (including restrictions on distribution of dividends and repayment of capital) attached to the class of shares

The Company has one class of Equity shares having a par value of '' 10/- per share. Each Shareholder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding, after distribution of all preferential amounts.

Appropriation of Profit (Dividend)

The Board, in its meeting held on May 24, 2023 has recommended a final dividend of ''2.20 per equity share for the financial year ended March 31, 2023. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of '' 1,887.00 lakh and not recognised as liability as at the Balance Sheet date.

1. The disclosure relating to Ind AS-19 - 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 '' 20.00 lakh.

Contingent Liabilities & Commitments

('' in lakh)
Particulars	Year Ended	Year Ended
	31.03.2023	31.03.2022
A. Contingent Liabilities a. Claims against the company not acknowledged as debts
(i) Claims against the company not acknowledged as debts [includes demands from custom authority '' 18,520.84 (Previous Year '' 18,520.84 lakh) and are subjudice]	1,03,799.09	95,263.55
(ii) Guarantees executed in favour of various authorities, banks and financial institution	1,143.17	643.32
(iii) Income tax matters pending for assessment	1,279.15	938.48
(iv) Sales tax matters in appeal	78.57	78.57
(v) (a) Liability towards service tax (including interest thereon pertaining to banqueting, including catering activities at hotels up to 31.03.2007.
(b) Liability towards Work contract tax (including interest thereon)		Amount
pertaining to building repair works carried at units.		unascertained
B. Commitments
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)	6.45	463.97

Notes:-

1. Contingent Liabilities at Sr. No.(A)(a)(i) and (A)(a)(iii) are dependent upon court decision/out of court settlement/disposal of appeal etc.

2. Amount indicated as Contingent liability/ claims against the company only reflect basic value. Legal, Interest and other costs being indeterminable at this stage are not considered.

3. Contingent liabilities at A(a)(i) above includes '' 1,013.20 lakh (Prev''ous Year '' 224.35 lakh) in respect of matters under litigation 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.

4. Note no (4): Contingent liabilities at A(a)(i) above includes '' 2,790.00 lakh (Prev''ous Year '' 2,520.00 lakh) in respect of 279 cases pertain to service matters i.e. termination / dismissal / suspension / regularization, promotion, fixation of pay, bonus, stoppage of increments, gratuity, supersession, transfer, disciplinary proceedings etc. In service matters, it is difficult to ascertain as to whether what amount shall be awarded in favour of an employee by the court in each case. In some of the cases, the case has been filed by the Unions on behalf of one more number of employees. It is pertinent to mention that the contingent liability of court cases depends upon the award of the Courts. However, as per practice, the company is considering for contingent liability an average amount of '' 10.00 lakh per case.

5. Note no (5): Contingent liabilities at A(a)(i) above includes '' 27,428.87 lakh (Prev''ous Year '' 16,075.73 lakh) in respect of claims against the Company not acknowledged as debts, wherein ITDC has also filed claims to the tune of '' 66,290.85 lakh (Prev''ous Year '' 15,404.63 lakh). Further, compensation is pending to be received against Hotel Janpath (loss of business opportunity) amounting to '' 15,340.00 lakh, pending before IMG.

6. Note no (6): Indemnity Bond have been entered with Custom Authorities for operations of Duty Free Shops for total '' 4,950.00 lakh (Prev''ous Year '' 4,950.00 lakh). Contingent Liability above does not consist of this indemnity bond value.

1. The 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 the 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 Appellants revenue from renting/ leasing of space inside Airports Civil Enclave to various persons for their business activities. The 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. Further an amount of '' 160.97 lakh 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 ''1,723.96 lakh (Previous year ''1,723.96 lakh) from 10.09.2004 to 31.03.2008 has been included as Contingent Liability at Para A(a)(i). above, and ''160.97 lakh has been included under Other

Financial Assets (Non-Current). However, provision for credit losses have been made for the deposit amount of ''160.97 lakh during F.Y. 2020-21.

2. Rent of Regional Office (South), Chennai was revised from '' 0.45 lakh to '' 8.81 lakh fixed the fair rent per month by The Rent Controler Appellate Tribunal vide order dated 01.09.2018. An amount of '' 200.00 lakh has been deposited with "The Registrar General, High Court, Chennai 104" as ordered by this Hon''ble Court order. Subsequently, the landlord lady filed a payment out petition in the High Court, Madras to withdraw the entire '' 200.00 lakh deposited by us in the High Court. After hearing both the sides, the Court vide Order dated September 25, 2019 permitted the applicant/ landlord to withdraw a sum of '' 100.00 lakh deposited by ITDC before the Court along with proportionate accrued interest. Further ITDC has deposited 288.75 lakh as per Hon''ble Court Order dated 31.10.2022. ITDC Filled a SLP to the Hon''ble Court and The Court grant interim stay ib order passed by the High Court of Madras vide order dated 29.09.2022. The balance amount of deposit with the Court is shown in Financials as "Other Current Assets" , and balance amount of '' 388.75 lakh has been considered under Contingent Liability.

3. There is a dispute about Property tax assessment by NDMC up to FY 2008-09 for The Ashok, Hotel Samrat and erstwhile Hotel Janpath. The assessments were challenged by the hotels before the Honâble High Court of Delhi. The Honâble High Court of Delhi disposed of the said petitions by directing NDMC to reassess the property tax due from hotels and hotels to fully co-operate in this matter. Accordingly, NDMC vide its assessment order dated March 31, 2013 had made fresh assessment up to March 2009 which was agreed by ITDC and subsequently paid by ITDC.

Subsequently, during the year 2016 NDMC issued notices for Property Tax as per UAM (Unit Area Method) under by laws 2009 for the FY 2010-11 to 2015-16. Being aggrieved by the much higher assessment in comparison with earlier assessment ITDC challenged the assessment and filed three Writ Petitions before the Honâble High Court of Delhi. On August 10, 2017, Honâble High Court of Delhi struck down the NDMC By laws 2009 and also invalidated all the assessment made by the NDMC thereunder. Subsequently, NDMC challenged the order of Honâble High Court of Delhi before the Honâble Supreme Court of India which was dismissed by Honâble Supreme Court of India vide its order dated January 27, 2019.

Despite dismissal of appeal of NDMC by the Honâble Supreme Court of India, NDMC vide order dated February 10, 2021 raised demand of '' 36,272.02 ('' 22,290.02 lakh for The Ashok, '' 9,598.00 for Hotel Samrat and '' 4,384.00 lakh for erstwhile Hotel Janpath). The orders were challenged by ITDC filling writ petitions with the Honâble High Court of Delhi which was heard on Septembber 25, 2020. Despite the orders of Court, NDMC issued demand cum attachment notices from time to time which all are challenged by ITDC before the Honâble High Court of Delhi and hearings taken place before the Honâble High Court of Delhi. The matter was last listed on April 20, 2023. Upon the submission from NDMC, the Court was inclined to direct that competent official of ITDC should meet the

NDMC officials to make a suitable proposal in the interest of amicable solutions. The next date of hearing is fixed at November 8, 2023.

During this period, ITDC already deposited its admitted liability based upon assessment made vide order dated 31st March, 2013 and also paid '' 2,919.00 lakh ('' 1,000.00 lakh in F.Y. 2020-21, '' 500.00 lakh in F.Y. 2021-22 & '' 1,419.00 lakh in F.Y. 2022-23) which will be adjusted after final resolution. As per the latest communication letter received from NDMC dated March 28, 2023, demand has been raised for an amount of '' 31,185.28 lakh (incl. Hotel Ashok '' 21,173.09 lakh & Hotel Samrat '' 10,012.19 lakh). For erstwhile Hotel Janpath contingent liability has been considered at '' 5,253.94 lakh. Hence, total contingent liability has been considered '' 36,439.22 lakh and included in the contingent Liability A(a)(i) above subject to final resolution of the matter by Hon''ble Court.

4. M/s Good Times Restaurant Private Limited has filed claimed before the sole arbitrator claiming a total sum of ''1,400.00 lakh (approx.) towards refund of license fee. Arbitrator has passed an award of '' 1,169.59 lakh with interest 18% and cost of '' 5.00 lakh against Hotel Samrat on March 30, 2019.ITDC (Hotel Samrat) has challenged an award and filed an appeal against the arbitration award before the Delhi High Court under relevant and Applicable law and after hearing the matter the operation of the award has been stayed by the Honâble Delhi High Court vide order dated November 23, 2020 subject to deposit the amount of '' 904.16 lakh inclusive of interest as per arbitration order. Accordingly, 904.16 lakh has been deposited with the High Court for admission of appeal (shown under Note 13 - Other Current Assets - Amount Recoverable) and matter to be heard before the Hon''ble High Court as the company has challenged the arbitration award. M/s Good Times Restaurant Privtae Limited has also files an execution petition, the matter is listed on July 12, 2023. Contingent liability has been considered for an amount of '' 1,169.59 lakh (Previous Year '' 1,169.59 lakh).

C. Contingent Assets

('' in lakh)

Particulars

Year Ended 31.03.2023

Year Ended 31.03.2022

Contingent Assets

(a) Claims by the company not acknowledged by opposite party

1. System has been developed for obtaining confirmation from Debtors. Multiple confirmation letters have been sent to parties and kept on record. The Company does not expect any material variation w.r.t the recoverability/ payment of the same.

Also, confirmation letters have been sent to Creditors.

In the opinion of the management, the value of current assets, loans and advances on realization in the ordinary course of business, will not be less than the value at which they are stated in the Financial Statement.

2. The net accumulated amount of losses -'' 3,987.48 lakh (Previous year '' 3,846.92 lakh) of subsidiary companies so far as it concerns the company, not dealt with in the accounts is as under:-

Names of the subsidiary companies	For the period upto	Share % of Profit/Loss	Accumulated Amount of losses/(Profit) ('' in lakh)
Pondicherry Ashok Hotel Corporation Ltd.	2022-23	51.00	153.25
Punjab Ashok Hotel Company Ltd.	2022-23	51.00	12.56
Ranchi Ashok Bihar Hotel Corporation Ltd.@*	2022-23	51.00	1,107.24
Utkal Ashok Hotel Corporation Ltd. $	2022-23	91.54	2,714.44
Total Net Losses			3,987.48
Previous Year Net Losses			3,846.92
There is no change in the % of sharing @ Non-operational from 2018-19 $ Non-operational from 2003-04 * Process of disinvestment to Govt. of Jharkhand is pending execution of share transfer formalities for which consideration has been received.

3. Following the 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 the accounting policy.

Valuation of stock of crockery, cutlery, glassware and linen, etc. in circulation, items are to written off/ amortized as per the same accounting practice followed over the years (applicable for Hotel Units), i.e., as a total % of items in circulation. Item wise amortization rate is detailed below:

a. Crockery & Cutlery (Brass Items) - 20.00%.

b. Crockery & Cutlery (Other Items) - 33.33%

c. Linen Items - 50.00%

4. Impairment of Financial Assets (Provisioning of Trade Receivables and Other Receivables)

Expected credit losses are recognized for all

financial subsequent to initial recognition other than financial assets in FVTPL category. For receivables and contract assets, the Company applies the simplified approach permitted by Ind AS 109 - Financial Instruments which requires expected lifetime losses to be recognized of the trade receivables and contract assets.

Hence, company is complying to the requirements of Ind AS. Under the simplified approach company is following the below mentioned practice:

a. Impairment/ Provision is being created 100% -on the Receivables Ageing more than 3 years

b. Impairment/ Provision is being created 100% - on Receivables Ageing below 3 years where party has filed a legal suite/ litigation against the company

On the analysis of past trend of provisioning an estimated impairment/ provisioning of 3% is derived on the total trade and other receivables of the Company. The same would be followed for the coming years as well, unless there are exceptional changes or circumstances.

5. Company entered into an Agreement dated February 19, 2002 with M/s. Maruti Udyog Ltd. (now Maruti Suzuki India Limited - MSIL) for renewal of Sub-Lease from February 1, 2002 to January 31, 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 sub lease period, MSIL 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 dated June 14, 2010 was given to MSIL to vacate the premises w.e.f. July 1, 2010. The balance amount of advance rent lying with ITDC amounting to '' 25.02 lakh was accordingly returned to MSIL which has not been encashed by MSIL. Applications dated July 1, 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, being aggrieved MSIL filed a writ petition in Hon''ble High Court of Delhi

against the eviction and recovery applications of ITDC which has been dismissed the Hon''ble High Court. Against the order of Hon''ble High Court MSIL had filed an appeal before the Division Bench of Hon''ble High Court of Delhi which was also dismissed vide order dt. April 29, 2013. MSIL filed an SLP challenging the orders of Hon''ble High Court of Delhi. The said SLP was disposed off with a direction to Estate Officer to decide the Jurisdiction. The Estate Officer vide its order dt. March 23, 2013 held that the Estate Officer has the jurisdiction to entertain the application filed by ITDC

Arguments on behalf of MSIL have been concluded before the Trial Court (Appellate Court) in Public Premises Appeal cases whereby MSIL has challenged the 2 separate orders of the Ld. Estate Officer, ITDC both dated December 31, 2018 by way of filing 2 separate PP Appeals No.03 & 04 of 2019 under section 9 of the PP Act, 1971 (amended time to time) and both the Appeals were pending before the Honâble Additional District Judge, Patiala House District Courts, New Delhi for the final arguments.

ITDC has commenced its arguments in the above noted cases. Matter was last heard on May 6, 2023 and the same was conclusively argued by Sr. Advocate engaged by ITDC. ITDC also filed written submissions vetted by engaged Sr. Advocate. During the same hearing, the Appellant Maruti has also made rejoinder arguments and completed the argument on appeal on the order on Section 4.

The matter is listed for hearing on May 29, 2023 for further arguments, if the Court after going through the file and record feels to seek clarification on any specific points.

6. Below mentioned are the disclosures as per requirements to Ind AS 115 - Revenue from Contracts with Customers:

i. Contract assets is recognised over the period in which services are performed to represent the Company''s right to consideration in exchange for goods or services transferred to the customer. It includes balances due from customers under construction contracts that arise when the Company receives payments

from customers as per terms of the contracts however the revenue is recognised over the period under input method. Any amount previously recognised as a contract asset is reclassified to trade receivables on satisfaction of the condition attached i.e. future service which is necessary to achieve the billing milestone.

7. Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 on Segment Reporting is given in Annexure A to this note.

8. Disclosure of transactions with related parties as per Indian Accounting Standard -24, to the extent applicable, is as under:

Key Management Personnels:

1. Shri G Kamala Vardhana Rao, Managing Director w.e.f. December 2, 2021 to February 3, 2023

2 Shri Piyush Tiwari, Director (Commercial & Marketing) w.e.f. May 28, 2015 to till date Managing Director (additional Charge) w.e.f. February 3, 2023 to May 2, 2023

3 Shri Lokesh Kumar Aggarwal , Director (Finance) & CFO w.e.f. August 24, 2022 to till date

4 Shri Subhadeepta Paul, V.P. (F&A) & CFO (Additional Charge) w.e.f. May 27, 2020 to August 24, 2022

5 Shri. V. K. Jain, Company Secretary w.e.f December 15, 2008 to till date

10. Risk Management :

The companyâs activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

a. Credit Risk: Credit Risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Primarily exposure to the credit risk is from trade receivables amounting to '' 15,975.15 lakhs (previous year '' 14,821.81 lakhs) and unbilled revenue amounting to '' 1,283.48 lakhs (previous year '' 913.08 lakhs) which are typically unsecured. Credit risk is being managed

by continuously monitoring the outstanding dues from the customers.

Further, most of the clients of the company are Government or Government Undertakings; hence credit risk is bare minimum. Company has impaired, as a prudent measure, the trade receivables towards expected credit loss as per company accounting policy to the extent of '' 8,068.06 lakhs (previous year '' 7,641.80 lakhs). Keeping in view the nature of business expected credit loss is provided as per the policy on impairment of financial assets.

No significant credit risk on cash and

bank balances amounting to '' 2,318.41 lakhs (previous year '' 4,172.09 lakhs) is expected as company parks surplus funds with Schedule Banks having good credit adequacy ratio and least NPA as determined by RBI and guidelines of the company. Company has parked its owned funds in fixed deposits of '' 17,871.05 lakhs (previous year '' 17,675.14 lakhs) with Schedule banks with negligible credit risks.

The Company has also provided House Building Loan, Vehicle Loan and Computer Loan to the employees amounting to '' 2.58 lakhs (previous year '' 2.75 lakhs), these loans are secured and the Company does not envisage any risk from the same in nearby future.

The Company has granted interest bearing loans to its subsidiaries (incl. interest) amounting to '' 2,741.74 lakh (previous year '' 1,928.44 lakh).

b. Liquidity risk: Company''s principal

source of liquidity are ""cash and bank balances"" and the cash flow that is generated from the operations. The Company has no bank borrowings and is an unleveraged entity.

The Company has a working capital of '' 32,246.86 lakh (previous year

'' 24,779.71 lakh) including cash

and bank balances of '' 2,318.41 lakhs (previous year '' 4,172.09

lakhs). Fund flow statement and

investment of surplus funds is also reported in the audit committee meetings held from time to time.

Company believes that the working capital is sufficient to meet its requirements and to discharge its liabilities towards trade payables and other current liabilities as and when they fall due, accordingly no liquidity risk is being perceived by the Company.

c. Market Risk:

â¢ Interest rate risk: The company is exposed to interest rate risk to the extent of its investments in fixed deposits with banks. The company also invested in preference share

capital of its subsidiary company Utkal Ashok Hotel Corporation limited (unit is non-operative since 31.03.2004).

â¢ Foreign currency risk: The Company has duty free shops at major sea ports in India. The foreign currency is being collected against the sale proceeds from customers at these shops.

The duty free goods for the same are purchased centrally for these shops. The Foreign currency exposure in the company is not material.

d. Capital Management:

The Companyâ s capital management objectives are :

- to ensure the Companyâs ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet. Management assesses the Companyâs capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage.

The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to avoid debt.

11. COVID-19 pandemic

The consequences of the COVID-19 outbreak on the Company''s business for the year ended March 31, 2022 and March 31, 2021, had been severe. However, with vaccination programs being implemented in India and across the globe, both business and leisure travel resumed, resulting in strong rebound in the business during the F.Y. 2022-23. The Company will continue to closely monitor any material

changes to future economic conditions on account of COVID-19 to assess any possible impact on the Company.

12. Private Licensees of Hotel and Catering Units of ITDC, i.e., Hotel Ashok (New Delhi), Hotel Samrat (New Delhi) and Taj Restaurant (Agra) had made request for waiver of licence fees for the lockdown period.

The matter has been submitted before the Board of ITDC. Keeping in mind the business scenario and considering the impact on cash flow, bills were not generated against most of the Private Licensees for the lockdown period amounting to '' 1,292.59 lakh upto September, 2020 and hence, not considered in the Financial Results. ITDC Board discussed that the grievances of Licences are genuine but it is also a fact that ITDC is a commercial organization and has been paying taxes, charges etc. despite lockdown without any exemption being granted to ITDC by any Statutory Organization. The matter is under consideration of Board of ITDC.

13. Prior to Ind AS transition, i.e., before April 1, 2016, old recoverable dues from Subsidiary Companies (UAHCL & PAHCL) in the nature of Management Fees and Interest on Loan has not been recognized to the extent of '' 65.50 lakh and '' 312.46 lakh.

14. Impact of Fire accident and Theft at DFS Mumbai Unit

a. A fire accident occurred at Unit of ITDC, DFS Mumbai on March 30, 2021. Company filed an Insurance claim for the loss of stock and property, plant & equipment at the site, cause was stated as electrical short circuit. Claim for an amount of '' 48.30 lakh is submitted to the Insurer (National Insurance Company Limited) dated March 30, 2021. The same is under process.

b. After the fire accident, shop remained closed due to refurbishment, electrical work and required permission from the custom authorities. During the physical verification of inventory conducted on March 31, 2022, 436 bottles were found missing (CIF plus Custom Duty '' 11.21 lakh). Insurance claim has been filed and the same is under process. Shop operations resumed during November, 2022.

15. In 2007 ITDC formed a Joint Venture Company (JV) in collaboration with M/s Aldeasa of Spain. After incorporation, no business was carried on. On the basis draft financial statements of F.Y. 2009-10 of the JV company and concept of prudence Corporationâs share of loss amounting to '' 245.52 Lakh in connection with running the JV has been accounted for based on the ratification of expenditure by JV Board & subsequent acceptance by ITDC. Since the F.Y. 2007-08 to 2013-14 the Financial Statement were prepared and audited and thereafter, i.e., for the F.Y. 2014-15 to 201617 the unaudited financial statement was prepared. From F.Y. 2017-18 to 2022-23, no share of profit/ loss with respect to ITDC Aldeasa has been booked as per the MCA Notice No. ROC-DEL/248(5)/STL-7/5071 dated September 1, 2017 and it has been struk off by the registrar of companies and the said company is dissolved, w.e.f., August 21, 2017. As at March 31, 2023, an amount of '' 226.51 lakh (Previous year '' 226.51 lakh), liability is outstanding towards ITDC Aldeasa (JV).

16. Pursuant to a decision of the Government of India, it was decided that the 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 and allow it to be sub-leased to the private party, then the property may be offered to the State Govt at its officially valued price. According to this decision the process of disinvestment is carried on as under:

a. HotelJanpath:

Subsequently it was decided by the government to close the operations of Janpath Hotel, New Delhi and to handover the land & building of Janpath Hotel to L&DO, MoHUA (erstwhile MoUD). Accordingly, the Land & Building

was technically handed over to L&DO, MoHUA on October 31, 2017.

The matter was also discussed inter alia in 26th & 27th Inter Ministerial Group (IMG) meetings as under:

- In the 26th meeting of IMG dated December 4, 2017, it was decided that compounded annual growth rate (CAGR) of last 10 years i.e. from 2006-07 to 2015-16 of profit before depreciation may be applied on above said average profit of last 5 years before depreciation. IMG directed that ITDC may get the valuation done on this basis and obtain approval through circulation for the same.

- In minutes of the 27th meeting of IMG held on December 27, 2017 it was recorded that âThe valuation of loss of business opportunity of Hotel Janpath was decided by the IMG in its meeting held on December 4, 2017.

The Company requested the Ministry to convey the amount of compensation to be considered by ITDC in its Financial Statement. The working of the amount of compensation based on PBT as well as PAT was also communicated to MoT. The amount of compensation based on PAT was ''14,981.00 lakh and on PBT was ''19,303.00 lakh.

MoT constituted Valuation Committee to determine the amount of compensation which will be payable to ITDC and sorting of disputed liability. The first meeting of the reconstituted valuation committee was held on September 16, 2021. Valuation Committee, after deliberation, recommended to IMG the valuation of '' 15,340.00 lakh based on average (PBT Depreciation) of F.Y. 2012 to 2016 and compounded annual growth rate (CAGR) of last 29 yearsâ profit before tax which comes to 9.51%.

Recommendation of Valuation Committee was placed before IMG. IMG directed to put up the comments of JS-DIPAM and L&DO on file. L&DO has raised certain demands against CPWD dues, difference of premium, damage charges

inclduing unauthorised construction. Breakup of the damage charges is being collected from L&DO. After receipt of requisite details, further meeting of the valuation committee will be called.

Since, the approval of amount of compensation due on account of loss of business opportunity is still awaited from MoT therefore, the VRS amount of '' 658.57 lakh has been kept under recoverable and nothing towards compensation for loss of business opportunity has been considered in the Financial Statements for the Financial Year 2022-23.

b. Hotel Ashok:

DIPAM has appointed Transaction Advisor for studying lease terms & conditions of land, explore the possibilities of giving Hotel Ashok on operation & management (O&M)/ Sub-leasing and optimum utilisation of vacant/ unused land in Hotel Ashok-Samrat Complex.

Road show was conducted to obtain the views of the market players/potential bidders on the models suggested in the feasibility report. 23 Companies participated in the roadshow physically and 10 parties participated online. Minutes of the roadshow and feedbacks from the potential market players have been received from the Consultant. Recently meeting was held with Niti Aayog wherein it was discussed to go through PPPAC route.

c. Kosi Restaurant:

The operation of Kosi Restaurant, a unit managed by the Company had been closed on October 31,2017. The Ministry of Tourism has been requested to take possession of the Restaurant building. In response MoT vide letter dated November 11, 2019, requested ITDC for exploring possibilities for making it operational, by submitting a plan and to indicate feasibility and viability of the project. Meanwhile, notice was received from the office of Ziledaar, Apar Khand Agra Naher, Mathura stating that Department of Irrigation, Mathura is the owner of the land on which ITDC was running Kosi Restaurant. In view of

the aforesaid notice and non-availability of any lease documents either with ITDC or MoT pertaining to land, it was not prudent to proceed with the process of appointing the Consultant and getting the DPR prepared. Hence, MoT has been requested to initiate necessary action for surrendering back the land to State Govt.

d. Hotel Kalinga Ashok, Bhubaneswar

RFP floated in 2017, 2018 and 2019 but remained unsuccessful. IMG in the meeting held on March 6, 2020 decided to retender with revised selection criteria. In the IMG meeting held on March 4, 2021, TA presented the revised selection criteria. IMG directed the ITDC officials to do the road show with the revised parameters and apprise of the result/ inputs. Roadshow has been conducted and report from TA was presented to the IMG in the meeting held on September 7, 2021. IMG decided that a letter may be sent to the State Government seeking permission for subleasing of property and for increasing the lease tenure for developing the property on PPP model. Meeting was held with State Govt. and State Govt. reiterated the concerned fee for sub leasing permission. The IMG decided that if State Govt. is interested to take back the property, the matter may be discussed with the State Govt.

IMG was apprised that in the meeting held on September 6, 2022 between the Chief Secretary, Odisha and MD-ITDC, ITDC was requested to send the terms & conditions for transfer of land and building of Hotel Kalinga Ashok to the Govt. of Odisha. IMG directed that Govt. of Odisha and ITDC to discuss mutually on the terms of transfer and apprise the result to the IMG in the next meeting.

Proposal from TA (M/s CBRE) regarding terms of transfer of property were approved by ITDC Board in its meeting and a letter from Secretary (Tourism) to Chief Secretary (Odisha) is under submission.

For Freehold Land ITDC Board in its meeting dated February 25, 2020 and

IMG in the meeting dated March 6, 2020 directed ITDC for outright sale of land through DIPAM. Proposal was sent to DIPAM for monetization of land. DIPAM requested to submit estimated value of land and circle rate of property.In the IMG meeting held on September 22, 2022, the official of the GA Department apprised that the circle rate is '' 1,500.00 lakh per acre in the area of Hotel Kalinga Ashok for the vacant land. The same was apprised to DIPAM vide email dated November 28, 2022.

e. Pondicherry Ashok Hotel Corporation Limited:

Transaction Advisors (TA) for Pondicherry Ashok Hotel Corporation Limited have already been appointed. TA are engaged for doing the entire exercise of valuation of the properties, devising framework for transfer/ exit of ITDC, documentation, etc. as applicable. TA submitted their report which had some concerns from State Govt., Subsidiary Board and ITDC. TA has been asked to submit revised DPR.

IMG in the meeting on March 4, 2021 decided to give the existing Hotel along with 8 acres of land for development on O&M basis for 50 years and remaining land will be monetized through DIPAM. Meeting was held with MHA and State Govt. and it was discussed that as per the current laws in State of Pondicherry, max. leasing is allowed for a term of 19 years only.

In the IMG meeting held May 2, 2022, it was decided that if permission for leasing beyond 19 years is not possible, State Govt. may be offered buyout for the equity stake of ITDC in the JV Company.

In IMG meeting held on September 22, 2022, MD-Pondicherry Industrial Promotion and Development Investment Corporation (PIPDIC) apprised that the PIPDIC Board had accorded approval to buy out the 51% equity of ITDC in the Pondicherry Ashok Hotel Corporation Limited.

PIPDIC vide letter dated November 3, 2022, forwarded the resolution of the

PIPDIC Board conveying the acceptance of the proposal in principle subject to State Government approval. Reply from the State Govt. is awaited.

f. Punjab Ashok Hotel Company Limited, Punjab:

In the IMG meeting held on November 29, 2018, it was decided that the incomplete project may be handed over to the State Government with transfer of 51% of equity of ITDC in the JV Company to the State Government, on cost basis.

A letter dated March 28, 2019 has been sent from Secretary (Tourism), MoT to the Chief Secretary, Govt. of Punjab for exploring options other than tourism for utilization of land & building.

In the IMG meeting held on March 6, 2020, Representative of Government of Punjab proposed for sharing depreciated cost of building and actual cost of other expenditure being incurred by the company. IMG directed the representative of Government of Punjab to send the proposal to ITDC. Proposal was received from the State Government dated August 25, 2021, to pay '' 79.39 lakh as depreciated cost of building as full and final amount to ITDC against transfer of all rights and ownership of the project to PTDC. The proposal was approved in the ITDC Board Meeting held on March 28, 2022.

IMG in meeting dated September, 22, 2022, approved the Valuation of '' 79.39 lakh for transfer 51% equity of ITDC in the Punjab Ashok Hotel Company Limited to the PTDC/Govt. of Punjab. Share Transfer Agreement will be executed after the CCEA approval and receipt of funds from the Punjab Government. MoU signed on February 14, 2023.

g. Ranchi Ashok Bihar Hotel Corporation Limited:

In case of Ranchi Ashok Bihar Hotel Corporation Limited, operations of the Hotel have been closed w.e.f. March 29, 201 8 with the approval of Inter-Ministerial Group of Ministry of

Tourism. It has been decided by MOT that the ITDCâs equity stake will be transferred to the Jharkhand State Government.

MoU for transfer of 51% equity stake of ITDC in RABHCL to Govt. of Jharkhand signed on November 24, 2020.

Consideration for an amount of '' 942.51 lakh has been received on December 28, 2020 including settled price of '' 306.00 lakh, against investment in shares.

Employees of Hotel Ranchi Ashok had been repeatedly threatening of self immolation with their families if their dues towards salary, etc. were not cleared immediately.

Upon request from Subsidiary company, ITDC has disbursed loan of '' 613.44 lakhs to clear the outstanding dues of employees. Dues upto June 2022 have been cleared. A proposal for the fourth time VRS for remaining employees of RABHCL has been sent to the MoT vide letter dated February 23, 2023 for approval. Loan and other dues of '' 870.34 lakh are receivable upto March 31, 2023.

Property will be transferred after CCEA approval and after receiving all residual dues from Jharkhand Govt. The financial statements of RABHCL have been incorporated treating the same as Subsidiary for the year ended March 31, 2023.

h. Utkal Ashok Hotel Corporation Limited

(UAHCL):

Property was tendered out for subleasing. Letter of Intent (LoI) issued to successful bidder, M/s Paulmech Infrastructure Pvt. Ltd. (PIPL) in 2010. M/s PIPL could not fulfill the terms of the LoI. LoI was cancelled. M/s PIPL went to the Court. Supreme Court on October 4, 2021 dismissed the appeal of M/s PIPL and pronounced judgement in favour of ITDC. Supreme Court has directed ITDC to refund the amount of '' 411.00 lakh to the appellant and for the balance amount of '' 441.00 crore, M/s PIPL has been given liberty to file a civil suit for recovery of '' 441.00 lakh and all contentions of the parties

in that regard are left open. Supreme Court in its judgement has also observed that pendency of the Civil Suit that may be filed by M/s PIPL shall not be an impediment for UAHCL to deal with the property or to re tender the same in any manner. As per the direction of the Supreme Court, '' 441.00 lakh has been refunded to the Appellant M/s PIPL.

"UAHCL Board in its meeting held on January 6, 2022 approved that proposal of initiating disinvestment process of Hotel Nilachal Ashok, Puri be sent to IMG.

In the IMG meeting held on May 02, 2022, IMG decided that State Government must be involved in the matter. All options such as taking back of the property by the State Govt. or sub-leasing of the property or O&M/ licensing out of the property, etc. to be discussed with the State Government and the views of the State Government should be taken in writing. After having taken the views of the State Government, financial and legal pros and cons of all the options to be analyzed and the report to be put up to the IMG in the next meeting for taking a decision.

Letter sent on June 8, 2022 from DG (Tourism), GoI to the Chief Secretary, Odisha in this regard. Reply is awaited.

In the process of disinvestment of various ITDC Subsidiary companies properties which Is currently going on, the ITDC shareholding of three of the Subsidiary companies viz. Assam Ashok Hotel Corporation Ltd.; Madhya Pradesh Ashok Hotel Corporation Ltd and Donyi Polo Ashok Hotel Corporation Limited had been already transferred to the their respective State Governments, and the sales proceeds as worked out by the Transaction Advisor on the basis of valuation of available business opportunity etc. which had been received by ITDC is more than the amount originally invested by ITDC in respective subsidiary companies. Moreover all outstanding trade receivables from these three Subsidiary Companies have also been fully cleared by them.

The process of disinvestment divestment of Lima, Ashok Hotel corporation Limited Is also being carried out and as ITDC''s equity / preference shares Investment are considered good for recovery, no provision is considered necessary.

17. Hotel Jammu Ashok, Jammu:

40 years lease period of the land expired in January 2010. ITDC had first requested for an extension in February 2007. ITDC repeatedly requested State Government for renewal but the renewal of land lease remained pending with the State Government.

Govt. of J & K vide letter dated March 20, 2020, informed about non-renewal of lease and resumption of land by the State Govt. Pursuant to the Board decision, Operation of Hotel was closed on June 17, 2020 and employees were offered VRS. Those who did not opt VRS, were adjusted in other units of ITDC.

Matter was pursued with the State Govt. for taking possession of the Hotel after payment of compensation in accordance with clause 3 (ii) of the lease deed. A Committee has been formed both by ITDC and Govt. of J & K. for determining amount of compensation. Architect cum Valuer have been appointed and they have given their report which has been sent to the State Government.

In the IMG meeting held on September 22, 2022, IMG approved the Valuation for transfer of all property, plant and equipment items constructed by ITDC on the leased land on âAs is where is basisâ.

The same was agreed by Govt. of J & K. Handing over to take place immediately after CCEA approval and receipt of consideration amount from the Govt. of J & K. MoU with Govt. of J & K signed on February 9, 2023.

The unit results had been considered as a part of discontinued operations in the financial statements for the year ended March 31, 2023.

18. Merger of Kumarakruppa Frontier Hotels Pvt. Ltd. (KFHPL) with ITDC

ITDC Board in its meeting held on December 12, 2019 has accorded in-principal approval to the merger of Kumarakruppa Frontier Hotels Pvt. Ltd. (KFHPL) with ITDC. ITDC has requested

Ministry of Tourism (MoT) vide letter dated December 30, 2019 to consider the proposal for onward approvals from DIPAM, Ministry of Finance/ CCEA, etc. MoT vide letter dated September 14, 2020 requested DIPAM, Ministry of Finance to grant approval in connection with merger of KFHPL with ITDC. The Matter is still under consideration at end of MoT/DIPAM.

19. In Ashok Consultancy and Engineering Services Unit, out of total 78 projects, 53 projects were completed/ closed but not closed in the books of accounts as final bills were reportedly not received/ settled. Amount due from customers includes '' 422.83 lakh (Previous Year '' 425.38 lakh) and amount due to customer includes '' 1,475.98 lakh (Previous Year '' 1,488.08 lakh) which pertains to completed projects. Exercise is in progress to reconcile the work done, provision for liability for work done and finalisation of final bill payment.

20. Dues recoverable from DDA by Ashok Consultancy & Engineering Services (ACES)

MOU was signed between DDA and ITDC, as a special business dealing for furnishing DDA flats (Akshardham & Vasant Kunj) with furniture and fixtures during Commonwelath Games (2010). As per MOU, ITDC shall procure the material from suppliers/ vendors as per standard guidelines of Govt. of India and shall procure and install the furniture fixtures at the said locations. Accordingly, ITDC procured the materials and payments were made to the Vendors initially. However, the work could not completed in line with the work order, due to some unforeseen circumstances from the part of DDA.

As the orders were placed with the vendors as per the MOU requirement, disputes were raised by the parties/ vendors and parties went to Arbitration/ Court. In the cases where there were orders passed in the favour of vendor, payments were released by ITDC over the last few years. These payments were made as per the conditions of the MOU entered with DDA. Recovery proceedings were initiated by ITDC from DDA as per the MoU. Total amount recoverable from DDA is '' 1,696.42 lakh.

The matter is under dispute between ITDC and DDA, and as per the prescribed mechanism for settlement of disputes between CPSE''S, the matter has been referred to Administrative Mechanism for Resolution of CPSE''S Disputes

(AMRCD). Committee has been formed by the AMRCD consisting of Secretary (Ministy of Tourism), Secretary (Ministry of Housing & Urban Affairs) and Secretary (D/o Legal Affairs) on February 10, 2023 to settlement of dispute between ITDC and DDA. The management is very hopeful of recovery of the amount involved.

21. Provision for Bad & Doubtful Debts (Credit Impairment) has been created in case of private licencee parties, where ageing is less than 3 years, for total amount of '' 1,872.28 lakh (Previous Year '' 1,284.60 lakh). These cases have been specifically assessed by the management as exceptional scenarios on account of legal notice/ cases.

22. Paintings/ Antiques in Hotel Ashok, New Delhi

Exclusive paintings and antiques are placed in Hotel Ashok, New Delhi. The same have been physically identified and the items have been listed. These items have been accumulated over the 6 decades of operations of Hotel Ashok, and have been mostly gifted by various artists. Although, the Company is not in the business of trading in paintings and such antiques but is holding them for aesthetic purpose which is considered to be administrative in nature. No valuation is considered necessary, however, such items are disclosed as a separate class of asset at a nominal value of Rupee One per item, i.e. total value of '' 0.02 lakh for entire such items.

23. Leases Company as lessee

The company has adopted Ind AS- 116 w.e.f. 01.04.2019, and has elected certain available practical expedients. Thus, the company has no significant impact of the same in it''s financial statements.

Company as lessor

The Company has given certain portion of office premises at Corporate Office on cancellable operating lease. The rent received on the same has been grouped under Revenue from Operations. The rental income during the current year is amounting to ''39.66 lakh (Previous Year ''36.67 lakh).

24. As per DPE Guideline, subsiquent to implementation of Pay revision, the

profitability of CPSE would be reviewed after every three years. Accordingly ITDC Management has reviewed the profitability and ITDC Board has approved on dated May 18, 2022 the revised perk and allowance from 27% to 35 % with effect from January 1, 2020, subject to the presidential approval given by the administrative ministry i.e Ministry of Tourism. Total estimated financial implication of the revised perk and allowance for '' 1,197.00 lakh. The same has been accounted for during the current financial year.

25. Impairment of Assets

Impairment of Property, Plant & Equipment/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Indian Accounting Standard (Ind AS) 36-''Impairment of Assets'' is recognised. As on March 31, 2023, in the opinion of the Management the impairment loss has been recognised in respect of assets not in active use.

26. M/s Kayo Enterprises Pvt Ltd has entered into a License Agreement dated January 06,

2018 with Hotel Samrat - a unit of ITDC, for occupying space in Hotel Samrat for running restaurant on license fees basis for a period of five years. M/s Kayo Enterprises (Licensee) has failed to make the payment of license fees on regular basis. Due to non-payment of license fees, the license agreement has been terminated on May 14, 2020 and Hotel Samrat has filed cases under section 138/ 141 to the tune of '' 857.18 lakh which is almost equal to the outstanding amount (after adjusting the existing security deposit of '' 201.67 lakh). Further the fixed assets and equipments are lying in the premises of Hotel Samrat which is under lien to Hotel Samrat as per the agreement and can be auctioned as per direction of Estate Office, ITDC under PPE Act. Hotel Samrat has prayed for recovery of damages of Rs 48,578.85 lakh quantified as on June 20, 2022 for illegal occupation by Kayo from May 15, 2020 till th

Mar 31, 2021

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

* This represents amortization of leasehold land.

** Includes staff quarters of the value of '' 194.03 lakh ( Previous year '' 194.03 lakh ), however, does not include value of staff quarters at some units as the cost could not be asertained separately. Includes amortisation of leasehold residential flats at Headquarters before their conversion into Freehold.

Notes:-

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

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

Leasehold land of Hotel Samrat has been depreciated on an estimated life of 99 years.

(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 company on 28th March, 1970.

Lease Deed is perpetual, hence amortisation on the leasehold land is not charged.

(d) Registration of title deeds in favour of the company have not been effected in respect of Land & Building of Taj Restaurant.

(e) 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 '' 15.00 lakh has been accounted for based on certificates issued by Project Engineers for the work carried out at various projects (previous year '' 87.67 lakhs).

Adjustments, if any, to cost is proposed to be carried out upon final settlement of the bills.

(f) In certain units, reconciliation could not be carried between physical verification report and property, plant & equipment register (FAR).

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

** Share in Joint Venture Company - ITDC Aldeasa India Private Limited for an amount of '' 0.50 lakh, for which provision for dimunition in value of investment 0f '' 0.50 lakh was already created. RoC vide Notice No ROC-DEL/248(5)/STK-7/071 dated September 1, 2017, notified that the Joint Venture Company - ITDC Aldeasa India Private Limited, have been struck off from the Register of the Companies and the said is dissolved, w.e.f., August 21, 2017.

*** Investment worth '' 25/- has been taken as NIL due to rounding off (Equity Share Certificate is not traceable).

Note:

The investment in equity/preference shares in three subsidiary companies viz. Ranchi Ashok Bihar Hotel Corporation Ltd. (RABHCL), Punjab Ashok Hotel Company Ltd. (PAHCL) and Utkal Ashok Hotel Corporation Ltd. (UAHCL) for '' 846.38 lakh included in '' 927.98 lakh and amount recoverable from subsidiary - UAHCL are considered good for recovery despite their having incurred significant accumulated losses. As regards RABHCL, outstanding loans with interest and other receivables including price of investment has been received. However, on account of pendency of share transfer formalities amount against investment has been shown as advance of '' 306.00 lakh. During the previous financial years sale proceeds of disinvestment of three other subsidiary companies viz. Assam Ashok Hotel Corporation Ltd. (AAHCL), Madhya Pradesh Ashok Hotel Corporation Ltd. (MPAHCL) and Donyi Polo Ashok Hotel Corporation Ltd. (DPAHCL) were received by ITDC which were much more than the amount originally invested in the said subsidiary companies. Moreover, all other outstanding trade receivables from these three subsidiary companies were also fully settled by them. The process of disinvestment of remaining subsidiary companies including PAHCL and UAHCL is also being carried out on the same principle. Therefore, the investment in these subsidiary companies and amount recoverable from them are considered good for recovery and no provision against such investment and recoverable is considered necessary.

1. Term Deposit includes FDR''s of Nil (Previous year '' 7.74 lakh) lodged as security and FDR''s at HDFC Bank of '' 300.00 lakh (Previous year '' 300.00 lakh) as collateral for availing Intraday Facility at Hotel Ashok, New Delhi.

2. It also includes FDR of '' 108.38 lakh held for ITDC Aldeasa (Joint Venture). For the last four financial statements, no share with respect to ITDC Aldeasa has been booked as per the MCA Notice No. ROC-DEL/248(5)/STL-7/5071 dtd. September 1, 2017, it has been struck off the register of companies and the said company is dissolved w.e.f August 21, 2017.

1. Amount Recoverable include an amount of '' 644.14 lakh that has been paid to 51 employees of Hotel Janpath, New Delhi for VRS. The same will be adjusted with the compensation amount receivable for loss of business opportunity which is currently under consideration of Ministry of Tourism (MoT). For details refer point no. 18(a) of Note 39 - General Notes.

2. TDS Receivable amount shown above is subject to year wise reconciliation.

B. Rights, preferences and restrictions (including restrictions on distribution of dividends and repayment of capital) attached to the class of shares

The Company has one class of Equity shares having a par value of '' 10/- per share. Each Shareholder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

* Upkeep, Service Cost and Other Operating Expenses includes expenditure towards Contractual Staff (incl. staff engaged through third party) for an amount of '' 3,474.13 lakh (Previous Year '' 4,121.07 lakh)

Contractual Staff payments included an amount of Nil (Previous Year '' 30.92 lakh) towards distribution of Gift Coupons in lieu of ITDC Golden Jubilee Celebration

** Details of expenditure towards Corporate Social Responsibility

a) Gross Amount required to be spent by the company during the year '' 40.78 lakh (Previous Year '' 38.97 lakh)

b) Amount spent during the year on:

Contingent Liabilities, Commitments & Contingent Assets

('' in lakh)
Particulars	Year Ended	Year Ended
	31.03.2021	31.03.2020
A. Contingent Liabilities a. Claims against the company not acknowledged as debts
(i) Claims against the company not acknowledged as debts [includes demands from custom authority '' 18,520.84 (Previous Year '' 18,520.84 lakh) and are subjudice]	92,425.71	83,758.75
(ii) Guarantees executed in favour of various authorities, banks and financial institution	294.09	712.36
(iii) Income tax matters pending for assessment	1,322.21	1,319.64
(iv) Sales tax matters in appeal	78.80	-
(v) (a) Liability towards service tax (including interest thereon pertaining to banqueting, including catering activities at hotels up to 31.03.2007.
(b) Liability towards Work contract tax (including interest thereon)		Amount
pertaining to building repair works carried at units.		unascertained
B. Commitments
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)	121.02	148.00

Notes:-

1. Contingent Liabilities at Sr. No.(A)(a)(i) and (A)(a)(iii) are dependent upon court decision/out of court settlement/disposal of appeal etc.

2. Amount indicated as Contingent liability/ claims against the company only reflect basic value. Legal, Interest and other costs being indeterminable at this stage are not considered.

3. Contingent liabilities at A(a)(i) above includes '' 224.35 (Previous Year '' 224.35 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.

4. Contingent liabilities at A(a)(i) above includes '' 2,340.00 lakh (Previous Year '' 2,280.00 lakh) in respect of 234 cases pertain to service matters i.e. termination / dismissal / suspension / regularization, promotion, fixation of pay, bonus, stoppage of increments, gratuity, supersession, transfer, disciplinary proceedings etc. In service matters, it is difficult to ascertain as to whether what amount shall be awarded in favour of an employee by the court in each case. In some of the cases, the case has been filed by the Unions on behalf of one more number of employees. It is pertinent to mention that the contingent liability of court cases depends upon the award of the Courts. However, as per practice, the company is considering for contingent liability an average amount of '' 10.00 lakh per case.

5. Contingent liabilities at A(a)(i) above includes '' 16,514.74 lakh (Previous Year '' 16,514.74 lakh) in respect of claims against the Company not acknowledged as debts, wherein ITDC has also filed counter claims to the tune of '' 15,343.44 lakh (Previous Year '' 15,343.44 lakh).

1. The 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 the 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 Appellants revenue from renting/ leasing of space inside Airports Civil Enclave to various persons for their business activities. The 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. Further an amount of '' 160.97 lakh 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 '' 1,723.96 lakh (Previous year '' 1,723.96 lakh) from 10.09.2004 to 31.03.2008 has been included as Contingent Liability at Para A(a)(i). above, and '' 160.97 lakh has been included under Other Financial Assets (Non-Current). However, provision for credit losses have been made for the deposit amount of '' 160.97 lakh during F.Y. 2020-21.

2. The Employees'' State Insurance Corporation (ESI) authorities had raised demands (including interest where applicable) totalling '' 632.21 lakh (Previous year '' 620.70 lakh) towards ESI dues in respect of nine hotel/catering units against which the company holds a deposit of '' 279.61 lakh (Previous year '' 279.61 lakh) (included in Loans and Advances) with the said authorities (made up of amounts withdrawn by the authorities after freezing bank accounts '' 254.85 lakh and amount deposited '' 24.76 lakh). Against this the company holds a liability of '' 175.09 lakh (previous year '' 168.58 lakh) towards ESI dues. No provision has been made for the balance of '' 457.12 lakh (Previous year '' 457.12 lakh) as the matter is subjudice and pending finality in the matter, the same has been included under Contingent Liabilities at Sl. No. 1(A)(a)(i) above.

3. Rent of Regional Office (South), Chennai was revised from '' 0.45 lakh to '' 8.81 lakh per month by virtue of small causes court, w.r.t enhancement of Rent Arrears amount of '' 526.62 lakh from April 2013 to June 2018 (63 months). Aggrieved by the fixation of fair rent at '' 8.81 lakh, the Company preferred CRP for stay of the order fixing fair rent. The said CRP is pending before this Hon''ble Court and thus the fixation of fair rent has not reached a finality. An amount of '' 200.00 lakh has been deposited with "The Registrar General,High Court, Chennai 104" as ordered by this Hon''ble Court vide Order dated July 16, 2018. Subsequently, the landlord lady filed a payment out petition in the High Court,

Madras to withdraw the entire '' 200.00 lakh deposited by us in the High Court. After hearing both the sides, the Court vide Order dated September 25, 2019 permitted the applicant/ landlord to withdraw a sum of '' 100.00 lakh deposited by ITDC before the Court along with proportionate accrued interest. The balance amount of deposit with the Court is shown in Financials as "Other Current Assets". And balance amount of '' 426.62 lakh has been considered under Contingent Liability.

4 "The matters, relating to assessment of Property Tax in respect of three Delhi based properties

i.e. Ashok, Samrat and Janpath Hotels, were challenged by the Hotels before the Hon''ble High Court of Delhi. During proceedings before the Honâble High Court, NDMC offered a basis for determination of property tax for assessing the hotel properties. The Hon''ble High Court of Delhi vide its orders dated 19.10.2010 disposed of the said petitions 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 March 31, 2013 had made the fresh assessment up to March 31, 2009 and gave a basis of determination of property tax, which was agreed by ITDC and admitted amounts were being paid by ITDC. On February 10, 2016, the NDMC issued notices calculating the value of property as per Unit Area Method (UAM) under bylaws of 2009 for the period 2010-11 to 2015-16 on a much higher Rateable Value than assessed up to the year 2008-09. The Company challenged the assessment made under UAM and filed three separate Writ Petitions before the Honâble High Court of Delhi."

"The matter came up for hearing before Division Bench of the Hon''ble High Court of Delhi on March 8, 2016. The Hon''ble Court was pleased to order that subject to ITDC paying the admitted tax , no coercive measures shall be taken by NDMC. Subsequently, the Honâble Court by Order dated August 10, 2017 had struck down the NDMC by-laws of 2009, based on which the unit area value method of levying property tax was then brought in operation by the NDMC and also invalidated all the assessments made by the NDMC thereunder.

The order dated August 10, 2017 as passed by the Honâble High Court of Delhi was challenged by the NDMC before the Honâble Supreme Court of India and the Honâble Supreme Court of India vide order dated January 22, 2019 dismissed the said petition. Despite the dismissal of appeal of NDMC by the Hon''ble Supreme Court, NDMC vide order dated February 12, 2020, raised demand of '' 32,802.64 lakh, against three Delhi based properties of ITDC, including Hotel Ashok, Hotel Samrat and discontinued/ handedover Hotel Janpath. The company has challenged the demand order by filing writ petition with the Hon''ble High Court in relation to Hotel Ashok, Hotel Samrat and erstwhile Hotel Janpath. The Company has already deposited its admitted tax liability based upon assessment made vide order dated March 31, 2013 and an additional amount of '' 1,000.00 lakh on March 18, 2021 which is to be adjusted against the balance disputed amount of '' 35,837.93 lakh has been included in the contingent Liability A(a)(i) above subject to final resolution of the matter by Hon''ble Court."

5 M/s Good Times Restaurant Private Limited has filed claimed before the sole arbitrator claiming a total sum of '' 1,400.00 lakh (approx.) towards refund of license fee. Arbitator has passed an award of '' 1,169.59 lakh with interest 18% and cost of '' 5.00 lakh against Hotel Samrat on March 30, 2019. ITDC (Hotel Samrat) has filed an appeal against the arbitration award before High Court and matter has been heard and directed by the Hon''ble High Court to deposit the amount of '' 904.16 lakh inclusive of interest as per arbitration order. Accordingly, '' 904.16

lakh has been deposited with High Court for admission of appeal (shown under Note 13 -Other Current Asets - Amount Recoverable) and matter to be heard before the Hon''ble High Court as the company has challenged arbitraion award. And Contingent liability has been considered for an amount of '' 1,169.59 lakh.

C. Contingent Assets		('' in lakh)
Particulars	Year Ended	Year Ended
	31.03.2021	31.03.2020
Contingent Assets (a) Claims by the company not acknowledged by opposite party	-	-

1. "Balances shown under debtors, creditors are subject to confirmation/ reconciliation/ adjustment, if any. The Company has been sending letters for confirmation to parties. However, the Company does not expect any material dispute w.r.t the recoverability/ payment of the same.

2. The net accumulated amount of losses -'' 3,734.73 lakh (Previous year '' 3,422.74 lakh) of subsidiary companies so far as it concerns the company, not dealt with in the accounts is as under:-

Names of the subsidiary companies	For the period upto	Share % of Profit/Loss	Accumulated Amount of losses/(Profit) ('' In lakh)
Pondicherry Ashok Hotel Corporation Ltd.	2020-21	51.00	175.14
Punjab Ashok Hotel Company Ltd.	2020-21	51.00	11.83
Ranchi Ashok Bihar Hotel Corporation Ltd.*	2020-21	51.00	1,008.93
Utkal Ashok Hotel Corporation Ltd.	2020-21	91.54	2,538.83
Total Net Losses			3,734.73
Previous Year Net Losses			3,422.74

There is no change in the % of sharing @ Non-operational from 2018-19 @ Non-operational from 2003-04

# AGM is yet to be convened

* Process of disinvestment to Govt. of Jharkhand

is pending execution of share transfer formalities for which consideration has been received.

4. Impairment of Financial Assets (Provisioning of Trade Receivables and Other Receivables)

Expected credit losses are recognized for all financial subsequent to initial recognition other than financial assets in FVTPL category. For receivables and contract assets, the Company applies the simplified approach permitted by Ind AS 109 - Financial

Instruments which requires expected lifetime losses to be recognized of the trade receivables and contract assets. Hence, company is complying to the requirements of Ind AS. Under the simplified approach company is following the below

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a. Impairment/ Provision is being created 100% -on the Receivables Ageing more than 3 years

b. Impairment/ Provision is being created 100% - on Receivables Ageing below 3 years where party has filed a legal suite/ litigation against the company

c. After providing impairment/ provision as per above 2 steps, company assesses its total impairment during the year in comparison to the estimated provisioning of the past trend. Shortfall (if any) is created as an additional impairment/ provision for the year. On the analysis of past trend of provisioning an estimated impairment/ provisioning of 3% is derived on the total trade and other receivables of the Company. The same would be followed for the coming years as well, unless there are exceptional changes or circumstances.

5. Company entered into an Agreement dated February 19, 2002 with M/s. Maruti Udyog Ltd. (now Maruti Suzuki India Limited - MSIL) for renewal of Sub-Lease from February 1, 2002 to January 31,2011 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 sub lease period, MSIL 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 dated June 14, 2010 was given to MSIL to vacate the premises w.e.f. July 1, 2010. The balance amount of advance rent lying with ITDC amounting to '' 25.02 lakh was accordingly returned to MSIL which has not been encashed by MSIL. Applications dated July 1, 2010 were filed by ITDC for eviction of of premises and recovery of damages under Public Premises [Eviction of Unauthorized Occupants] Act, 1971 before the Estate Officer. In the meanwhile, being aggrieved MSIL filed a writ petition in Hon''ble High Court of Delhi against the eviction and recovery applications of ITDC which has been dismissed the Hon''ble High Court. Against the order of Hon''ble High Court MSIL had filed an appeal before the Division Bench of Hon''ble High Court of Delhi which was also dismissed vide order dt. April 29, 2013. MSIL filed an SLP challenging the orders of Hon''ble High Court of Delhi. The said SLP was disposed off with a direction to Estate Officer to decide the Jurisdiction.

only issue the Arbitral Tribunal will determine is whether ITDC violated terms of Sub Lease dt February 19th, 2002 & MSIL suffered any losses/ harassment. The rest of the issues will be determined under Public Premises Act. MSIL filed SLP against the order dt September 29, 2011 and the same was dismissed vide order dt.May 6, 2011 by Hon''ble Supreme Court.

The Applications filed by ITDC for Eviction and Recovery of compensation/ damage for the use and occupation/ mesne profits at the rate of '' 75.00 Lakh per month from July 1, 2010 till the date of vacation and possession have been disposed of by the Ld Estate Officer by Order dated December 31, 2018 whereby MSIL has been directed to vacate the premises and pay '' 60 lakh per month from July 2010 till July 2011. Thereafter, 20% enhancement per annum from July 2011 till the date of handing over of the vacation along with simple interest @ 9% per annum. Total amount payable to ITDC as per order of the Ld Estate Officer is approx. '' 30,373.80 lakh (upto March, 2021).

MSIL has challenged the orders of the Estate Officer by way of Appeal under Section 9 of the PPE Act before the District Judge, New Delhi. The Additional District Judge-01, New Delhi by interim Order dated January 14, 2019 has ordered that âno coercive action should be taken by the respondent ITDC against the appellant.

ITDC filed an application before the Hon''ble High Court of Delhi seeking vacation of interim protection granted to MSIL. It was also submitted that the sub lease deed had expired on January 31, 2020 by efflux of time. The writ petition was disposed with the observation that the trial Court shall endeavour to expedite the proceedings.

Arguments on behalf of MSIL have been concluded and ITDC has commenced its arguments. Due to suspension of work because of COVID-19, the date of April 26, 2021 was adjourned en-bloc to May 19, 2021. Matter was taken up through video conferencing on June 16, 2021, as May 17, 2021 to June 3, 2021, was declared as summer vacation by Honâble High Court vide order no. 06/R/RG/DHC-202021 dated May 14, 2021. The next date of hearing is August 21, 2021 for arguments.

6. Below mentioned are the disclosures as per requirements to Ind AS 115 - Revenue from Contracts with Customers:

a. Contract Balances ('' in lakh)

Contract Balances	Current Year	Previous Year
Trade receivables	6,664.06	9,790.05
Contract assets	573.22	499.48
Contract liabilities	6,510.10	5,342.42

Contract assets is recognised over the period in which services are performed to represent the Company''s

i.

right to consideration in exchange for goods or services transferred to the customer. It includes balances due from customers under construction contracts that arise when the Company receives payments from customers as per terms of the contracts however the revenue is recognised over the period under input method. Any amount previously

recognised as a contract asset is reclassified to trade receivables on satisfaction of the condition attached i.e. future service which is necessary to achieve the billing milestone.

('' in lakh)

11.

Particulars	Current Year	Previous Year
Contract Asset at the beginning of the year	499.48	544.12
Contract Asset at the end of the year	573.22	499.48

Contract liabilities balances due to customers, these arise when a particular milestone payment exceeds the revenue recognised to date under the input method and advance received in long term construction

contracts gets adjusted over the construction ('' in lakh)

period as and when invoicing is made to the

customer.

Particulars	Current Year	Previous Year
Contract Liabilities at the beginning of the year	5,342.42	5,355.21
Contract Liabilities at the end of the year	6,510.10	5,342.42

c. Other disclosure are as tabulated below: ('' in lakh)

Particulars	Current Year	Previous Year
i) Aggregate amount of Revenue Recognised up to the reporting date	13,424.13	12,582.75
ii) Aggregate cost incurred up to reporting date	12,315.96	11,544.24
iii) Total amount of funds received up to the Reporting date	19,506.57	17,789.30
iv) Cost incurred during the financial year	378.32	330.47
v) Revenue Recognised during the current financial year	438.24	363.23
vi) Advance due from customers up to Reporting Date	573.22	499.48
vii) Advance due to Customers up to Reporting Date	5,745.17	4,253.75

194

7. Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 on Segment Reporting is given in Annexure A to this note.

8. Disclosure of transactions with related parties as per Indian Accounting Standard -24, to the extent applicable, is as under:

Key Management Personnels:

1. Shri G Kamala Vardhana Rao, Chairman & Managing Director w.e.f. November 11,

2019 to till date

2. Shri Piyush Tiwari, Director (Commercial & Marketing) w.e.f. May 28, 2015 to till date

3. Shri Pradip Kumar Das , Director (Finance) & CFO w.e.f. February 25, 2016 to May 06,

2020

4. Shri Subhadeepta Paul, V.P. (F&A) & CFO (Additional Charge) w.e.f. May 27, 2020

5. Shri. V. K. Jain, Company Secretary w.e.f 15.12.2008 to till date

Director Sitting Fees paid to Independent Directors is amounting to '' 4.35 lakh (previous Year '' 2.95 lakh)

9. Risk Management :

The companyâs activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

a. Credit Risk: Credit Risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Primarily exposure to the credit risk is from trade receivables amounting to '' 12,520.08 lakhs (previous year '' 14,870.25 lakhs) and unbilled revenue amounting to '' 438.24 lakhs (previous year '' 363.23 lakhs) which are typically unsecured. Credit risk is being managed by continuously monitoring the outstanding dues from the customers.

Further, most of the clients of the company are Government or

Government Undertakings; hence credit risk is bare minimum. Company has impaired, as a prudent measure, the trade receivables towards expected credit loss as per company accounting policy to the extent of '' 5,856.02 lakhs (previous year '' 5,080.43 lakhs). Keeping in view the nature of business expected credit loss is provided as per the policy on impairment of financial assets.

No significant credit risk on cash and bank balances amounting to '' 2,117.53 lakhs (previous year '' 2,326.93 lakhs) is expected as company parks surplus funds with Schedule Banks having good credit adequacy ratio and least NPA as determined by RBI and guidelines of the company. Company has parked its owned funds in fixed deposits of '' 21,050.15 lakhs (previous year '' 23,790.80 lakhs) with Schedule banks with negligible credit risks.

The Company has also provided House Building Loan, Vehicle Loan and Computer Loan to the employees amounting to '' 2.88 lakhs (previous year '' 2.89 lakhs), these loans are secured and the Company does not envisage any risk from the same in nearby future.

The Company has granted interest bearing loans to its subsidiaries amounting to '' 712.57 lakh (previous year '' 800.87 lakh).

b. Liquidity risk: Company''s principal source of liquidity are "cash and bank balances" and the cash flow that is generated from the operations. The Company has no bank borrowings and is an unleveraged entity.

The Company has a working capital of '' 26,889.49 lakh (previous year

'' 30,956.84 lakh) including cash and bank balances of '' 2,117.53 lakhs (previous year '' 2,326.93 lakhs). Fund flow statement and investment of surplus funds is also reported in the audit committee meetings held from time to time.

Company believes that the working capital is sufficient to meet its requirements and to discharge its

liabilities towards trade payables and other current liabilities as and when they fall due, accordingly no liquidity risk is being perceived by the Company.

c. Market Risk:

â¢ Interest rate risk: The company is exposed to interest rate risk to the extent of its investments in fixed deposits with banks. The company also invested in preference share capital of its subsidiary company Utkal Ashok Hotel Corporation limited (unit is nonoperative since 31.03.2004).

â¢ Foreign currency risk: The Company has duty free shops at major sea ports in India. The foreign currency is being collected against the sale proceeds from customers at these shops. The duty free goods for the same are purchased centrally for these shops. The exchange rates between the rupee and foreign currencies have fluctuated substantially in recent years and may also fluctuate substantially in the near future. However the Company has a currency risk monitoring policy in place wherein the risk is managed by advanced planning for payment for purchases in foreign currency on due date by holding back the foreign currency sale proceeds in bank keeping in view the credit period/ payment date of purchases.

The above foreign currency exposure is unhedged as these are covered through foreign currency risk management policy.

d. Capital Management:

The Companyâs capital management objectives are : - to ensure the Companyâs ability to continue as a going concern - to provide an adequate return to shareholders

structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to avoid debt.

10. COVID-19 pandemic

The World Health Organization declared the Covid-19 outbreak as a pandemic on 11th March 2020, leading to series of measures by countries across the world to contain the spread of the virus. India responded by imposing a nationwide-lockdown on March 24, 2020. The process of lifting of lockdown in various states has since started in phases, effective June 1, 2020, guided by the decision of individual states. Permission for re-opening of Hotels has been given, w.e.f, August 21, 2020 by the State Government of Delhi.

During the period March 2020 to August 2020 there were no operational activity in hotel, flight & cargo operations, duty free shops, event management, hospitality institute etc., which affected business at our hotels and others operations across India.

During this Covid period, ITDC provided 1,800 food packets per day (approx.) to Delhi Administration, AIIMS and other hospitals under CSR activity amounting to '' 63.27 Lakhs. ITDC also provided accommodation facility to guests during the month of May 2020 and June 2020 under Vande Bharat Scheme as per the Government guidelines and generated revenue amounting to '' 18.70 Lakhs.

Contributing in the fight towards this pandemic, ITDC has provided support through our Hotel premises being used as quarantine facility at Hotel Kalinga Ashok since the inception of lockdown. Also, Hotel Samrat, New Delhi has also been offering 50 rooms for the purpose of quarantine facility.

During the major part of this period, hotel, flight & cargo operations, duty free shops, event management, hospitality institute were mandated to remain non-operational, which affected business at our hotels and other operations across India.

The Management''s priority in dealing with the exceptional challenges posed by COVID-19 has

been to ensure the safety of its guests and employees, support suppliers, keep the supply chain operational for essential supplies.

In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Management has considered the impact from a prolonged lock-down situation; travel restrictions being continued to be imposed by India and other countries even after lifting of the lockdown, guests postponing their discretionary spending, continued restrictions on the number of domestic and international flights, internal and external information available up to the date of approval of these financial statements including credit reports and economic forecasts.

The Management has also assessed the potential impact of Covid-19 on the carrying value of property, plant & equipment, intangible assets, investments, trade receivables, inventories, and other current assets appearing in the financial statements of the Company as on 31st March, 2021 and has performed sensitivity analysis on the assumptions used and based on current indicators of future economic conditions, expects to recover the carrying amounts of these assets. The impact of COVID-19 may be different from that estimated on the date of approval of these financial statements and the Management will continue to closely monitor any material changes to future economic conditions.

With respect to business in financial year 2021-22, the start has been difficult due to the second wave of COVID-19 pandemic in India. The impact on revenue from various business verticals could also come from a prolonged lock-down situation; travel restrictions being continued to be imposed by Government of India and other countries even after lifting of the lockdown and guests postponing their discretionary spending.

Based on enquiries received, assessments performed and analysis of market trends, the Management expects demand to gradually pick for Domestic leisure and business travel, social events within prescribed norms, and limited international travel once international airlines are allowed to commence operations.

11. Private Licencees of Hotel and Catering Units of ITDC, i.e., Hotel Ashok (New Delhi), Hotel Samrat (New Delhi) and Taj Restaurant (Agra) had made request for waiver of licence fees for the lockdown period.

Keeping in mind the business scenario and considering the impact on cash flow, bills were not generated against most of the Private Licensees amounting to '' 1,292.59 lakh upto September, 2020 and hence, not considered in the Financial Results.

12. Turnover of ITDC Unit - Hyderabad House (Catering Unit)

In case of ITDC Unit - Hyderabad House (Catering Unit), turnover was being shown to the extent of supervision charges received over and above the cost of material supplied and service rendered. On review of accounting practice, changes have been made from F.Y. 2020-21, i.e., the total amount of material supplied, services rendered and supervision charges has been shown as turnover and expenditure have been shown under relevant heads. Regrouping have been made during the corresponding previous year. However, there will be no impact on the profitability of the Unit/ Company.

13. In case of Loans&Advances and Management Fees due to be received from Susbidiary Companies, company has reviewed its accounting practice and has accounted for the Interest and Management Fees for the period starting from April 1, 2016, i.e. date of transition to Ind AS Financial Statement upto March 31, 2020.

- Management Fees for an amount of '' 59.60 lakh (excl. GST) has been booked as an Income due from Pondicherry Ashok Hotel Corporation Limited and Utkal Ashok Hotel Corporation Limited.

- Interest on Loans have been booked for amount of '' 266.46 lakh from Utkal Ashok Hotel Corporation Limited.

However, prior to Ind AS transtion, i.e., before April 1, 2016, old recoverable dues from Subsidiary Companies (UAHCL & PAHCL) in the nature of Management Fees and Interest on Loan has not been recognized to the extent of '' 65.50 lakh and 255.40 lakh.

14. Impact of Fire accident at DFS Chennai Unit

A fire accident occurred at Unit of ITDC, DFS Chennai on April 27, 2020. Company filed an Insurance claim for the loss of stock and property, plant & equipment at the site, cause was stated as electrical short circuit. Proclaim surveyors and loss adjusters were appointed as surveyors by the Insurer (National Insurance Company Limited). Claim settlement is under process.

15. Incident of Theft at Hotel Jammu Ashok, Jammu

There has been an incidence of theft at the hotel premises on May 9, 2020 (during lockdown). FIR was filed dated May 11, 2020 wherein shortage of Stock Items, i.e., 57 packets of Cigarettes and 64.04 Litres of Liquor, estimated value of '' 0.71 lakh was reported in the FIR. In relation to the theft, recovery of '' 0.71 lakh has been made from the Security Agency at the Unit - Darbari Lal Badyal Security Agency.

16. Impact of Fire accident at DFS Mumbai Unit

A fire accident occurred at Unit of ITDC, DFS Mumbai on March 30, 2021. Company filed an Insurance claim for the loss of stock and property, plant & equipment at the site, cause was stated as electrical short circuit. The same is under investigation. Claim for an amount of '' 48.30 lakh is estimated.

17. In 2007 ITDC formed a Joint Venture Company (JV) in collaboration with M/s Aldeasa of Spain. After incorporation, no business was carried on. On the basis draft financial statements of F.Y. 2009-10 of the JV company and concept of prudence Corporationâs share of loss

amounting to '' 245.52 Lakh in connection with running the JV has been accounted for based on the ratification of expenditure by JV Board & subsequent acceptance by ITDC. Since the F.Y. 2007-08 to 2013-14 the Financial Statement were prepared and audited and thereafter, i.e., for the F.Y. 2014-15 to 2016-17 the unaudited financial statement was prepared. During F.Y. 2017-18, 2018-19, 2019-20 and 2020-21, no share of profit/ loss with respect to ITDC Aldeasa has been booked as per the MCA Notice No. ROC-DEL/248(5)/ STL-7/5071 dated September 1, 2017 and it has been stricked off by the registrar of companies and the said company is dissolved, w.e.f., August 21, 2017. As at March 31, 2021, an amount of '' 226.51 lakh (Previous year '' 226.51 lakh), liability is outstanding towards ITDC Aldeasa (JV).

18. Pursuant to a decision of the Government of India, it was decided that the 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 and allow it to be sub-leased to the private party, then the property may be offered to the State Govt. at its officially valued price. According to this decision the process of disinvestment is carried on as under:

a. HotelJanpath:

Ministry of Tourism (MoT) communicated vide their letter dtd. June 14, 2017 the in-principle approval of the government for transferring the property of Hotel Janpath to the Ministry of Urban Development (MoUD) and for compensating ITDC for loss of business opportunity with disputed liability to be sorted out. The ministry had proposed that âa tentative valuation of the business of ITDC has been calculated on the basis of Discounted Cash Flow assuming cash flows for 30 years on the basis of average net profit for 5 years and discount factor of 11% p.a. and a rough estimation was made for '' 5,772.00 Lakh (net profit depreciation). Value of land is not being considered.

The matter was also discussed inter alia in 26th & 27th Inter Ministerial Group (IMG) meetings as under: - In the 26th meeting of IMG dated 04.12.2017, it was deliberated that earlier the figure of '' 5,772.00 lakh was mentioned on the basis of calculation of NPV at a discounting factor of 11% on average profit before depreciation of last 5 years as per the audited annual accounts of 2011-12 to 2015-16 of Hotel Janpath for a period of 30 years without applying any growth rate. Therefore, IMG decided that compounded annual growth rate (CAGR) of last 10 years i.e. from 2006-07 to 2015-16 of profit before depreciation may be applied on above said average profit of last 5 years before depreciation. IMG directed that ITDC may get the valuation done on this basis and obtain approval through circulation for the same.

In minutes of the 27th meeting of IMG held on 27-12-2017 it was recorded that âThe valuation of loss of business opportunity of Hotel Janpath was decided by the IMG in its meeting held on 04-12-2017. In this regard, DIPAM vide its letter dated 21-12-2017 has submitted that under the DCF methodology for calculation of NPV, Profit After Tax (PAT) is what is normally considered."

In response to the above letter, the Ministry conveyed that the amount of ''5,772.00 lakh was only an estimated figure and did not take into account the

liabilities which are yet to be firmed up. Further, the amount incurred towards VRS of employees due to closure of Janpath Hotel is to be kept under recoverables to be adjusted from the value when the same is finalised. The estimated compensation amount due to ITDC on account of loss of business opportunity in respect of Hotel Janpath, New Delhi, may therefore not be taken into account while finalising accounts of ITDC for the current financial year 201718 and may be included in the accounts for the financial year 2018-19.

The compensation for Loss of Business Opportunity was calculated on the basis of the IMG decision taken in its meeting dated 04.12.2017 and placed before the IMG in its meeting held on 4.2.2019.

âThe IMG observed that the valuation based upon compounded annual growth rate (CAGR) of last 10 years i.e. from 2006-07 to 2015-16 of average profit (before depreciation) of last five years which comes to '' 193.03 crores is also on higher side. It was suggested to also have the option of calculating the valuation based upon compounded annual growth rate (CAGR) of last 30 yearsâ profit before tax and if the financials of last 30 years are not available, information available for maximum period may be taken. Another option may be valuation based upon compounded annual growth rate (CAGR) of last 30 yearsâ profit before tax but excluding depreciation and if the financials of last 30 years are not available, information available for maximum period may be taken. It was also directed by IMG that all options may be considered by the Committee constituted for computing the Loss of Business Opportunity.â

Fresh calculations have been undertaken in accordance with the decision of the IMG dated 4.2.2019 on the basis of financial data for 29 years (From FY 2015-16 to FY 1987-88). As per the same, the valuation based upon Profit before Tax excluding Depreciation works out to '' 155.48 crores approx. In case, valuation is undertaken on PBT basis, the compensation for Loss of Business Opportunity works out to '' 123.68 crores approx.

Further, meeting of the Valuation Committee was held on February 12, 2020 and Committee desired the consultant to make presentation on the valuation of '' 206.93 crore. Based on consultant''s presentation in next meeting, they were asked to give further valuation based on IMG decision dated February 4, 2019. Consultant submitted the valuation on March 2, 2020 which shall be put up to the Valuation Committee in the next meeting. Due to the COVID-19 pandemic, meeting is yet to be conducted.

Since, the approval of amount of compensation due on account of loss of business opportunity is still awaited from MoT therefore, the VRS amount of '' 644.14 lakh has been kept under recoverable and nothing towards compensation for loss of business opportunity has been considered in the Financial Statements for the Financial Year 2020-21.

b. Hotel Ashok:

c. Kosi Restaurant:

The operation of Kosi Restaurant, a unit managed by the Company had been closed on October 31,2017. The Ministry of Tourism has been requested to take possession of the Restaurant building. In response MoT vide letter dated November 11, 2019, requested ITDC for exploring possibilities for making it operational. ITDC responded indicating the requirement for engagement of consultant for the same. ITDC has been asked to submit a plan and to indicate feasibility and viability in of the project. ITDC Board decided to engage the consultant through Limited Tender from the DIPAMâs list of empanelled consultants. List of Consultants received from DIPAM. Matter is under process.

d. Hotel Kalinga Ashok, Bhubaneswar

RFP has been floated for giving Hotel Kalinga Ashok, Bhubaneswar on O&M contract. Evaluation report received from the transaction advisor was placed in the IMG meeting held on March 6, 2020. IMG decided to retender. ITDC was directed to issue fresh tender with revised selection criteria. In the IMG meeting held on March 4, 2021, TA presented the revised selection criteria. IMG directed the ITDC officials to do the road show with the revised parameters and apprise of the result/ inputs. Roadshow has been conducted and report from TA has been received which will be presented in the next IMG meeting.

For Freehold Land ITDC Board in its meeting dated February 25, 2020 and IMG in the meeting dated March 6, 2020 directed ITDC for outright sale of land through DIPAM. Proposal was sent to DIPAM for monetization of land. DIPAM requested to submit estimated value of land and circle rate of property. The same details have been requested from local authorities, for which the details are awaited.

e. Pondicherry Ashok Hotel Corporation Limited:

IMG in the meeting on March 4, 2021 decided to give the exisiting Hotel along with 8 acres of land for development on O&M basis for 50 years and remaining land will be monetized through DIPAM. IMG directed the ITDC officials for roadshow. Roadshow has been conducted and report from TA has been received which will be presented in the next IMG meeting.

f. Punjab Ashok Hotel

Company Limited, Punjab: In the IMG meeting held on November 29, 2018, it was decided that the incomplete project may be handed over to the State Government with transfer of 51% of equity of ITDC in the JV Company to the State Government, on cost basis. A letter dated March 28, 2019 has been sent from Secretary (Tourism), MoT to the Chief Secretary, Govt. of Punjab for exploring options other than tourism for utilization of land & building.

In the IMG meeting held on March 6,

2020, Representative of Government of Punjab proposed for sharing depreciated cost of building and actual cost of other expenditure being incurred by the company. IMG directed the representative of Government of Punjab to send the proposal to ITDC for bringing the same before the IMG after its approval from the JV Board and ITDC Board. Letters/ reminders were send to the authorities at Govt. of Punjab for sending the proposal. In the IMG meeting held on March 4,

2021, representative of Punjab Govt. apprised that the matter is pending at their Finance Department.

g. Ranchi Ashok Bihar Hotel Corporation Limited:

In case of Ranchi Ashok Bihar Hotel Corporation Limited, operations of the Hotel have been closed w.e.f. March 29, 2018 with the approval of InterMinisterial Group of Ministry of Tourism. It has been decided by MOT that the ITDCâs Non-Current Investments (51% Equity of RABHCL) will be transferred to the Jharkhand State Government.

MoU for transfer of 51% equity stake of ITDC in RABHCL to Govt. of Jharkhand signed on November 24, 2020.

Consideration for an amount of '' 942.51 lakh has been received on December 28, 2020, however the VRS amount and outstanding dues of employees of RABHCL are yet to be received. On receipt of consideration of '' 942.51 lakh, company has recognized its Income towards Management Fees and Interest on Loan from the Subsidiary

during the F.Y. 2020-21 for an amount of '' 175.36 lakh.

The company has received loan & other outstandings including settled price of '' 306.00 lakh, against investment in shares. Due to the pending formalities for share transfer and continuation of Directors of ITDC on the Board of Subsidiary (substantial control), the financial statements of RABHCL have been incorporated treating the same as Subsidiary.

h. Utkal Ashok Hotel Corporation Limited (UAHCL):

In case of Utkal Ashok Hotel Corporation Limited (UAHCL) the Letter of Intent (LoI) for long-term lease of the hotel property was issued to the bidder M/s Paulmech Infrastructure Pvt. Ltd. (PIPL) on January 19,2010 and was subsequently c

Mar 31, 2018

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

** Utkal Ashok Hotel Corporation Limited has filed petition with National Company Law Tribunal (NCLT) on 27.02.2018 seeking approval for issue of further redeemable Preference Shares as per provision of Section 55(3) of the Companies, 2013. The same is under process.

*** RoC vide Notice No. RC)C-DEL/248(5)/STK-7/071 dated 01.09.2017, notified that the Joint Venture Company - ITDC Aldeasa India Pvt.

Ltd., have been struck off from the Register of the Companies and the said company is dissolved, w.e.f., August 21, 2017.

**** Investment worth Rs, 25/- has been taken as NIL due to rounding off.

The Company has transferred its Non-Current Investments - Equity Shares of Subsidiary Companies - Assam Ashok Hotel Corporation Limited (AAHCL 51% Equity) and Madhya Pradesh Ashok Hotel Corporation Limited (MPAHCL 51% Equity) on June 29, 2017 to their respective State Government. The Investments have been transferred at a consideration of: AAHCL Rs, 214.00 lakh and MPAHCL Rs, 1,259.00 lakh. Also, the other dues recoverable by ITDC Ltd. have been duly settled by the respective subsidiary in full: AAHCL Rs, 300.63 lakh and MPAHCL Rs, 383.98 lakh.

The company has transferred its Non-Current Investments - Equity Shares of Subsidiary Companies - Donyi Polo Ashok Hotel Corporation Limited (DPAHCL - 51% Equity) on May 17, 2018 to its State Government. The Investments have been transferred at a consideration of Rs, 198.18 lakh received on January 22, 2018 which has been considered as Advance as at March 31, 2018. Further, other dues recoverable by ITDC have been settled by DPAHCL Rs, 17.70 lakh on April 10, 2018. The Investments have been shown Under the Note - 36, Non-Current Assets Held for Sale.

The investment in equity/preference shares in three subsidiary companies viz. RABHCL, PAHCL and UAHCL for Rs, 846.38 lakh included in Rs, 927.98 lakh and amount recoverable from these subsidiary companies are considered good for recovery despite their having incurred significant accumulated losses and their accounting for income viz. management fee and interest on loan given only to the extent of amount received in the shape of tax deducted at source on realisation because these companies are currently under the process of disinvestment and during the financial year 2017-18 sale proceeds of disinvestment of three other subsidiary companies viz. AAHCL, MPAHCL and DPAHCL were received by ITDC which were much more than the amount originally invested in the said subsidiary companies. Moreover, all other outstanding trade receivables from these three subsidiary companies were also fully settled by them. The process of disinvestment of remaining subsidiary companies including RABHCL, PAHCL and UAHCL is also being carried out on the same principle. Therefore, the investment in these subsidiary companies and amount recoverable from them are considered good for recovery and no provision against such investment and recoverable is considered necessary.

Note:

In Ashok International Trade Division the sum of Rs, 161 lakh paid in the year 2006-07 as security deposit in the form of fixed deposit (FD) receipt in favour of Delhi International Airport Pvt. Ltd. (DIAL) is being shown as recoverable. Its FD was encashed during 2007-08 by DIAL on account of service- tax charged by DIAL in billing of services provided to the Company. This is being disputed by the Company on the ground that the service was not liable for service-tax and we are hopeful of its recovery.

1. In the case of Duty Free Shops at Seaport Company has measured the inventory at CIF.

2. The valuation of stock with M/s Prerna Marketing Pvt. Ltd (The Capitol) LOR has been taken as per our records i.e. Rs, 16.90 lakh (excluding the cost of beer amounting to Rs, 5.56 lakh which is supposed to be expired because of time factor). The actual realisable value could not be determined because the stock of LOR has been sealed by Excise department till date.

1. Term Deposit includes FDRâs of Rs, 7.74 lakh (Previous year Rs, 7.74 lakh) lodged as security and FDRâs at HDFC Bank of Rs, 300.00 lakh (Previous year Rs, 300.00 lakh) as collateral for availing Intraday Facility at Hotel Ashok, New Delhi.

2. It also includes FDR of Rs, 108.38 lakh held for ITDC Aldeasa (Joint Venture). During the current year 2017-18, no share with respect to ITDC Aldeasa has been booked as per the MCA Notice No. ROC-DEL/248(5)/STL-7/5071 dtd. September 1, 2017, it has been struck off the register of companies and the said company is dissolved w.e.f August 21, 2017.

1. Amount Recoverable include an amount of Rs, 585.74 lakh that has been paid to 51 employees of Hotel Janpath, New Delhi for VRS. The same will be adjusted with the amount of compensation for loss of business opportunity which is currently under consideration of Ministry of Tourism (MoT).

2. Others include FDRâS Rs, 1.62 lakh (Previous Year Rs, 1.62 lakh) deposited with the Registrar of High Court, Delhi as per the Court Order.

3. Others include Rs, 192.04 lakh (Previous year Rs, 185.37 lakh) paid to the workers of the contractor towards wages upto March, 2018, as per the directions of the Honâble High Court to the 33 workers are being paid (out of the matter filed by 60 workers). The final outcome of the case is awaited.

4. Service tax is refundable for an amount of Rs, 0.81 lakh in case of Taj Restaurant and Service tax paid in advance Rs, 3.42 lakh and sales tax paid in advance of Rs, 0.04 lakh in case of Kosi Restaurant are subject to reconciliation.

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

75,000 Equity Shares of Rs, 100/- each (since converted into 7,50,000 equity shares of Rs, 10/- each) were allotted as fully paid up in consideration for transfer of ownership of some properties.

B. Rights, preferences and restrictions (including restrictions on distribution of dividends and repayment of capital) attached to the class of shares

The Company has one class of Equity shares having a par value of Rs, 10/- per share. Each Shareholder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

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

(ii) In case of Vigyan Bhawan, New Delhi, which has been providing catering services under a contract with the 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 the above agreement.

(iii) Hyderabad House, New Delhi (Unit of ITDC), has been working under an Agreement between the Unit and Ministry of External Affairs, which has been expired on 31.03.2017. Further renewal is under process and draft agreement has been sent to Ministry of External Affairs.

Out of the balance amount of Rs, 158.34 lakh (Previous year Rs, 3.64 lakh) of Deferred Government Grants from the Ministry of Tourism for the renovation/up gradation of properties, a total sum of Rs, 17.88 lakh (Previous year Rs, 17.76 lakh) has been appropriated to the respective head of income (The amount recognized as Grant from Ministry of Tourism excludes income portion of Rs, 0.06 (Previous Year Rs, 0.06) of Kosi Restaurant which has been closed and discontinued and its income portion is shown under Note No - 36 âDiscontinued Operationâ). The amount equivalent to the grant related cost incurred/ adjusted during the year has accordingly been recognised as income. The balance of Rs, 140.46 lakh (Previous Year Rs, 158.34 lakh) at the close of the year has been presented in the accounts as Non-Current and Current Liability.

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

2. Amount indicated as Contingent liability/claims against the company only reflect basic value. Legal and other costs being indeterminable at this stage are not considered.

3. Contingent liabilities at A(a)(i) above includes Rs, 3,863.97 lakh (Previous Year 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 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 the 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 Appellants revenue from renting/ leasing of space inside Airports Civil Enclave to various persons for their business activities. The 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. Further an amount ofRs, 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.

D. The Employeesâ State Insurance Corporation (ESI) authorities had raised demands (including interest where applicable) totaling Rs, 850.65 lakh (Previous year Rs, 826.79 lakh) towards ESI dues in respect of six hotel/catering units against which the company 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, 310.09 lakh and amount deposited Rs, 24.76 lakh). Against this the company holds a liability of Rs, 215.58 lakh (previous year Rs, 215.44 lakh) towards ESI dues. No provision has been made for the balance of Rs, 635.07 lakh (Previous year Rs, 611.35 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.

E. The matter relating to determination of property tax in respect of three Delhi based properties i.e. Ashok, Samrat and Janpath Hotels was subjudice in the Honâble 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 Honâble High Court vide its orders dated 19.10.2010 disposed of 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 had made the fresh assessment up to 31.03.2009 and gave a basis of determination of property tax which was agreed by ITDC.

Besides, NDMC has not made assessment for the years 2009-10 to 2017-18. The Honâble High Court in its judgement dated Aug.

10,2017 has invalidated all actions taken by the NDMC under the new impunged Bye-laws in terms of levy, assessment, collection and enforcement of demand of property tax and all property demand made under the new impugned By-laws have been invalidated and declared unenforceable.

The company has already deposited its admitted tax liability based upon assessment made vide order dt. 31.3.2013 and the balance disputed amount of Rs, 220.31 crore has been included in the contingent Liability A(a)(i) above subject to final resolution of the matter

Details of Contingent Assets as per Ind AS-37

i). The Honâble Distt. Court has passed the orders for recovery of Damages from M/s Gift Centre, M/s M.A. Ramzana and M/s Ashoka Florist (all licensees) @ Rs, 370.00 per square ft. per month from 01.02.2008, 01.03.2008 and 30.10.2007 respectively till the date of vacation. The area occupied by M/s Gift Centre is 213 sq. ft, M/s M.A. Ramzana is 315 sq. ft and M/s Ashoka Florist is 160sq. ft. The above mentioned parties have gone to Higher court challenging the judgement. However, the following amounts are calculated to be recovered till date from these three licensees has been shown as contingent assets under (A) above.

ii). The Honâble Distt. Court has passed orders for recovery of damages @ Rs, 370.00 p.m from M/s Brand India & on 23.04.2018 respectively. The aggrieved parties have been given a period of one month from the date of receipt of the certified copies of the judgement. Since the period to challenge the verdict is not over the possibility of the same could not be ruled out. Keeping this fact in view the amount to be recovered from M/s Brand India w.e.f 26.01.2008, for an amount of Rs, 153.48 lakh has been shown as contingent assets under (A) above.

Note - 39

Disclosures in notes to the Financial Statements for the year ended 31st March, 2018

First time adoption of Ind AS Transition to Ind AS

These are the Companyâs first financial statements prepared in accordance with Ind AS applicable as at 31st March, 2018.

The accounting policies set out in Note No. 1 have been applied in preparing the financial statements for the year ended 31st March, 2018, the comparative information presented in these financial statements for the year ended 31st March, 2017 and in the preparation of an opening Ind AS balance sheet at 1st April, 2016 (the Companyâs date of transition). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows are set out in the following notes.

Exemptions and exceptions availed

The applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS is given below:

A. Ind AS optional exemptions

Deemed cost for property, plant and equipment and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed costs as at the date of transition after making necessary adjustments. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its Property, Plant and Equipment and Intangible Assets at their previous GAAP carrying value.

Investment in subsidiaries and joint venture

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all its investments in subsidiaries, joint ventures and associate companies as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the company has elected to measure the investment in subsidiaries and joint venture at previous GAAP carrying amount.

B. Ind AS mandatory exemptions

1. Estimates

An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

2. Classification and measurement of financial assets and liabilities

The classification and measurement of financial instruments will be made considering whether the conditions as per Ind AS 109 are met based on facts and circumstances existing at the date of transition to Ind AS.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition, then, fair value of financial assets at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

The company has applied the classification and measurement provisions as per Ind AS 109 as on the date of transition.

3. De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

4. Non-current assets held for sale and discontinued operations

Ind AS 105 requires non-current assets (or disposal groups) that meet the criteria to be classified as held for sale, non-current assets (or disposal groups) that are held for distribution to owners and operations that meet the criteria to be classified as discontinued and carried at lower of its carrying amount and fair value less cost to sell on the initial date of such identification. A first time adopter can:-

- Measure such assets or operations at the lower of carrying value and fair value less cost to sell at the date of transition to Ind AS in accordance with Ind AS 105, and

- Recognise directly in retained earning any difference between that amount and the carrying amount of those assets at the date of transition to Ind AS determined under the entityâs previous GAAP.

Accordingly, the company has elected to measure such assets or operations at the lower of carrying value and fair value less cost to sell, and recognize directly in retained earning any difference between those amounts at the date of transition to Ind AS.

C. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile total comprehensive income for prior period. The following tables represent the reconciliations from previous GAAP to Ind AS.

1. Proposed Dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the Balance Sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the Shareholders in the general meeting. Accordingly, liability for proposed dividend including dividend distribution tax of Rs, (1,548.45 lakh), as at 1st April, 2016 included under provision has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has increased by an equivalent amount.

Under Ind AS, where the company collects consideration on account of another party, it recognizes revenue as the net amount retained on its own account for services rendered in its Air Ticketing Business and hence revenue as well as cost relating to consideration received on Others account has been reversed by Rs, (10,693.39 lakh) each.

Under Ind AS, where the company collects consideration on account of another party, it recognizes revenue as the net amount retained on its own account for services rendered. In case of Electricity Recovery from Licences, only the administrative charges or service charges are considered a part of Other Income (Non-operational) and the cost recovered is adjusted in the Electricity Charges (Cost).

There is no impact on the profit and loss statement or retained earnings.

The company recognized its revenue relating to sale of tour packages on the basis of certainty of collection of the amount. In the previous GAAP, revenue regarding the sale of service could be recognized on the basis of Percentage of completion or Completion Method. In Ind-AS, revenue regarding the sale of service can only be recognized on the basis of Percentage of Completion Method and hence revenue as well as cost relating to incomplete tours has been reversed byRs, (0.23 lakh) and Rs,0.18 lakh respectively as at 31st March, 2017.

3. Trade Receivable and Other Receivables

Consequent to the change in revenue recognition under Ind AS as stated above, the receivables from the Customers have also been reclassified from Trade receivables to other receivables under other financial assets. As a result of this change, the balance of trade receivables has decreased and other receivables have increased by Rs, 3704.56 lakh as at 31st March, 2017 (Rs, 2216.77 lakh as at 1st April, 2016).

4. Other Long Term Financial Assets / Liabilities (Amortized cost instruments)

Items like security deposits, retention money and other financial items of long term nature have been treated under the category of amortized cost. These instruments are measured at fair value and the difference between the carrying value and the discounted value (Fair Value) are treated as loss & gain for assets and liabilities respectively. Accordingly, net Reversal of Rs, 77.69 lakh as at 31st March, 2017 (Previous Year Rs, 46.42 lakh) is made with consequential impacts on the profit and loss.

All deposits with statutory authorities, utility departments and the like for which the cash flows cannot be predicted with certainty have been excluded. Further, deposits with parties since years and the details of which are not traceable have been excluded. The same has valued at their nominal value.

5. Capital Work-in-Progress

Previously, expenditure incurred on projects which are under process of completion or are not yet completed is recognized in the Balance Sheet under the head Capital Work-in-progress as âExpenses attributed to projects pending allocationâ. Further, the provision for impairment is also provided against such expenses, if the probability of completion of the said project is less. As per Ind AS, Capital work-in-progress should have âAllocable Expenditure attributable to projectsâ otherwise Un-allocable expenditure (if any) should be charged to the Profit & Loss. A net Reversal of Rs, Nil as at 31st March, 2017 (Previous Year Rs, (27.67 lakh) is made with impacts on profit & loss and retained earnings.

6. Loans given to Employees

Under the previous GAAP, loan to employees was measured at cost. Under the Ind AS, these loans are considered as debt instruments and falls under the category of amortized cost. Since there were loans given to employees from whom there was no probability of recovery (employees retired and no longer with ITDC Ltd.), therefore its fair value is considered as nil. The difference between the carrying value and the fair value of Rs,.35 Lakh as at 31st March, 2017 (Previous Year Rs,12.77 lakh) has been charged to Retained Earnings.

7. Other Comprehensive Income

Under Ind-AS, all items of income and expense recognized in the period should be included in profit or loss for the period, unless a standard requires or permit otherwise. Items of income and expense that are not recognized on profit and loss but are shown in the Statement of profit or loss as âother comprehensive incomeâ represents re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

Actuarial gain/losses on defined benefit plans for employees were being recognized in Statement of profit or loss under previous GAAP. This is now being recognized in other comprehensive income. The net impact for year ending 31st March, 2017 is Rs, 80.87 lakh.

8. Prior-Period Items

As per Ind AS, the amount in the financial statements in respect of prior period adjustments are to be retrospectively restated as if a prior period error had never occurred and such event had occurred during the preceding period and accordingly presented in the financial statements. The net impact for year ending 31st March, 2017 is Rs, 252.89 lakh.

9. Deferred Tax

As per Ind AS, deferred tax has been recognized on the adjustments made on transition to Ind-AS. The impact of transition adjustments together with using balance sheet approach as per Ind-AS against profit and loss approach in the previous GAAP for computation of deferred tax has impacted the reserves by Rs, 33.23 lakh as at 31st March, 2017 (Rs, 84.47 lakh as at 31st March, 2016), with consequential impacts on the profit and loss for the subsequent periods.

10. Other Equity

Other equity has been adjusted consequent to the above Ind AS transition adjustments.

1. In spite of requests made by the Company, confirmation of balances have not been received in several cases in matter of Trade Receivable, Trade Payables, Loans and Advances and Deposits. Besides in a few units, balances in Customersâ 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.

There is no change in the % of sharing.

@ Non-operational from 2003-04.

# AGM is yet to be convened.

4. Company entered into an Agreement dated February 19, 2002 with M/s. Maruti Udyog Ltd. for renewal of Sub-Lease from February 1, 2002 to January 31, 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 dated 14 June, 2010 was given to Maruti Udyog Ltd. to vacate the premises w.e.f. July

1, 2010. The balance amount of advance rent lying with ITDC amounting to Rs, 25.02 lakh was accordingly returned to M/s Maruti Udyog Ltd which has not been encashed by MSIL. Applications dated July 1, 2010 was 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 Maruti Udyog Ltd. filed a writ petition in Honâble Delhi High Court against the eviction and recovery applications of ITDC which has been dismissed by the Honâble High Court. Against the order of Honâble High Court MSIL had filed an appeal before the division bench which was also dismissed vide order dt. April 29, 2013. MSIL filed an SLP challenging the orders of Honâble High Court. The said SLP was disposed of with a direction to Estate Officer to decide the Jurisdiction.

The Estate Officer vide its order dt. March 23, 2013 held that the Estate Officer has the jurisdiction to entertain the application filed by ITDC. Another Arbitration Petition had been filed by MSIL before Honâble High Court for appointment of Arbitrator. Honâble High Court vide its order dt. May 23, 2011 directed to appoint two Arbitrators who may proceed to appoint Presiding Arbitrator. ITDC preferred an application for recalling the order of Honâble High Court. The Honâble court vide its order dt. September 29, 2011 sustained the order dt May 23, 2011 with modification that the only issue the Arbitral Tribunal will determine is whether ITDC violated terms of Sub Lease dt February 19th, 2002 & MSIL suffered any losses/ harassment. The rest of the issues will be determined under PP Act. AASIL filed SLP against the order dt September 29, 2011 and the same was dismissed vide order dt. May 6, 2011 by Honâble Supreme Court. The proceedings are in progress before the Estate Officer and pending legal proceedings in the matter, the premises has not yet been vacated by M/s MSIL. Now the matter of recovery of compensation/ damage for the use and occupation/ mesne profits at the rate of Rs, 75.00 lakh per month from July 1, 2010 till the date of vacation and possession are pending before the state officer which is listed on June 5, 2018.

6. Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 on Segment Reporting is given in Annexure A to this note.

7. Disclosure of transactions with related parties as per Indian Accounting Standard -24, to the extent applicable, is as under: -

Key Management Personnel:

1. Smt Ravneet Kaur, Chairperson & Managing Director w.e.f. 24.07.2017 to till date

2. Shri Piyush Tiwari, Director (Commercial & Marketing) and Chairman & Managing Director w.e.f. 01.03.2017 to 24.07.2017

Director (Commercial & Marketing) w.e.f.

24.07.2017 to till date

3. Shri Pradip Kumar Das, Director (Finance) & CFO w.e.f. 25.02.2016 to till date

4. Shri V. K. Jain, Company Secretary w.e.f 15.12.2008 to till date

Payment made to key management personnel and their relatives.

8. Disclosure in pursuance of Indian Accounting Standard -17 on Leases:-

The companyâs leasing arrangements are generally in respect of operating lease for premises (residential, office accommodation, god owns, 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 Employeesâ Remuneration & Benefits (Note-32) & Operating and other Expenses (Note-34). 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. Risk Management:

The companyâs activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

a. Credit Risk: Credit Risk arises from the possibility that customer or counter party to financial instrument may record. To manage this, the company periodically assesses the financial reliability of Customers, taking into account the financial conditions, current economic trends, analysis of historical bad debts and aging of account receivables. Most of our clients are Government Departments/ Ministries, which are not prone to credit risk. Credit risk arises from cash to cash equivalents, deposits with banks, credit to Customers including outstanding receivables.

The companyâs policy is to place cash and cash equivalents and short term deposits with reputable banks.

The company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into a contract. There is no significant concentration of credit risk within the company.

b. Liquidity risk: Liquidity risk arises from borrowings and other liabilities. The company is an unleveraged entity, with no long term borrowings or debt.

Management monitors rolling forecasts of the companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. The company is investing short term surplus funds of ITDC from time to time with reputable banks. Fund flow statement and investment of surplus funds is reported in Audit Committee meetings held from time to time.

The company does not foresee any problem in discharging their liabilities towards trade payables and other current liabilities as and when they fall due.

c. Market Risk:

- Interest rate risk: The company is exposed to interest rate risk to the extent of its investments in fixed deposits with banks. The company also invested in preference share capital of its subsidiary company Utkal Ashok Hotel Corporation limited (unit is no operative since 31.03.2004).

- Foreign currency risk: The Company operates duty free shops at various sea ports in India. The foreign currency is being collected against sale proceeds from Customers at these shops. The duty free goods are being purchased centrally for all the shops. The foreign exchange rates risk is being managed by advance planning for payment for purchases in foreign currency on due date by holding back the foreign currency sales proceeds in bank keeping in view the credit period/payment date of purchases.

The foreign currency collected from Hotel customer are being collected by foreign exchange agency on weekly/ periodically basis and being credited to our bank account.

d. Capital Management:

The Companyâ s capital management objectives are :

to ensure the Companyâs ability to continue as a going concern to provide an adequate return to Shareholders

The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to Shareholders, return capital to Shareholders, issue new shares, or sell assets to avoid debt.

10. Pursuant to a decision of the Government of India, it was decided that the 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 and allow it to be sub-leased to the private party, then the property may be offered to the State Govt at its officially valued price. According to this decision the process of disinvestment is carried on as under:

a. Hotel Bharatpur Ashok:

As per MoU signed on April 27, 2017 Hotel Bharatpur Ashok (Managed Property since owned by Government of Rajasthan) has been handed back to Government of Rajasthan on 30.04.2017 on âas is where isâ basis. As per the terms of transfer, 5 nos. of regular employees of Hotel Bharatpur Ashok as at April 30, 2017 were transferred on deputation on absorption basis to the Government of Rajasthan. The assets

and liabilities having net book value of Rs, 16.23 lakh as on April 30, 2017 was agreed to be transferred without any financial consideration therefore a loss i.e. the net book value of Assets

& Liabilities of Rs, 16.23 lakh has been considered as an exceptional item in the Financial Statement. The same has been considered as a part of discontinued operations in the financial statements for the year ended March 31, 2018.

b. Assam Ashok Hotel Corporation Limited and Madhya Pradesh Ashok Hotel Corporation Limited:

The Company has transferred its Non-Current Investments - Equity Shares of Subsidiary Companies - Assam Ashok Hotel Corporation Limited (51% Equity of AAHCL) ofRs, 51 lakh and Madhya Pradesh Ashok Hotel Corporation Limited (51% Equity of MPAHCL) of Rs, 81.60 lakh on June 29, 2017 to their respective State Government. The Investments have been transferred at a consideration of: AAHCL Rs, 214.00 lakh and MPAHCL Rs, 1,259.00 lakh. Also, the other dues recoverable by ITDC Ltd. have been duly settled by the respective subsidiary in full for AAHCL Rs, 300.63 lakh and for MPAHCLRs, 384.43 lakh.

c. Hotel Janpath:

The Ministry had proposed that âa tentative valuation of the business of ITDC has been calculated on the basis of Discounted Cash Flow assuming cash flows for 30 years on the basis of average net profit for 5 years and discount factor of 11% p.a. and a rough estimation was made for Rs, 5772.00 lakh (net profit depreciation). Value of land is not being considered.

Subsequently, it was decided by the government to close the operations of Janpath Hotel, New Delhi and to handover the land & building of Janpath Hotel to L&DO, MoHUA (erstwhile MoUD).Accordingly, the Land & Building was technically handed over to L&DO, MoHUA on 31-10-2017.

The matter was also discussed inter alia in 26th & 27th Inter Ministerial Group (IMG) meetings as under:

In the 26th meeting of IMG dated 04.12.2017, it was deliberated that earlier the figure of Rs, 5772.00 lakh was mentioned on the basis of calculation of NPV at a discounting factor of 11% on average profit before depreciation of last 5 years as per the audited annual accounts of 2011-12 to 2015-16 of Hotel Janpath for a period of 30 years without applying any growth rate. Therefore, IMG decided that compounded annual growth rate (CAGR) of last 10 years i.e. from 2006-07 to 2015-16 of profit before depreciation may be applied on above said average profit of last 5 years before depreciation. IMG directed that ITDC may get the valuation done on this basis and obtain approval through circulation for the same.

In minutes of the 27th meeting of IMG held on 27-12-2017 it was recorded that âThe valuation of loss of business opportunity of Hotel Janpath was decided by the IMG in its meeting held on 04-12-2017. In this regard, DI PAM vide its letter dated 21-12-2017 has submitted that under the DCF methodology for calculation of NPV, Profit After Tax (PAT) is what is normally considered.â

In response to the above letter, the Ministry conveyed that the amount of Rs, 5772.00 lakh was only an estimated figure and did not take into account the liabilities which are yet to be firmed up. Further, the amount incurred towards VRS of employees due to closure of Janpath Hotel is to be kept under recoverable to be adjusted from the value when the same is finalised. The estimated compensation amount due to ITDC on account of loss of business opportunity in respect of Hotel Janpath, New Delhi, may therefore not be taken into account while finalising accounts of ITDC for the current financial year 2017-18 and may be included in the accounts for the financial year 2018-19.

In view of above, the VRS amount of Rs, 585.74 lakh has been kept under recoverable and nothing towards compensation for loss of business opportunity has been considered in the Financial Statements.

d. Kosi Restaurant:

The operation of Kosi Restaurant, a managed unit of the Company has been closed on October 31, 2017. The Ministry of Tourism has been requested to take possession of the Restaurant building. The same has been considered as a part of discontinued operations in the financial statements for the year ended March 31, 2018.

e. Incomplete Hotel Project of Hotel Gulmarg Ashok:

The property has been handed over to Govt, of J & K on âas is where isâ basis on November 16, 2017, as per the directions of MoT. The cost of Work-in-progress of the same for Rs, 228.29 lakh as on above date against which the provision for impairment was already made was finally written off.

f. Hotel Jaipur Ashok:

The Company has transferred to the Govt, of Rajasthan its hotel property i.e. Hotel Jaipur Ashok along with the assets on âas is where isâ basis at a consideration of Rs, 1,400 lakh on December 9, 2017. The same has been considered as a part of discontinued operations in the financial statements for the year ended March 31, 2018.

g. Donyi Polo Ashok Hotel Corporation Limited:

The Company has received a consideration of Rs, 198.18 lakh on January 22, 2018 for transfer of its Non-Current Investments - Equity Shares of Subsidiary Companies - Donyi Polo Ashok Hotel Corporation Limited (51% Equity of DPAHCL) for Rs, 50.90 lakh to the State Government. The same has been considered as an âAdvance Receivedâ as on March 31, 2018 since the Share Transfer Agreement has been signed on May 17, 2018. Further, management fees of Rs, 17.70 lakh upto March 31, 2018 was paid by DPAHCL.

h. Lalitha Mahal Palace Hotel:

The Company has received on May 24, 2018 a consideration of Rs, 745.05 lakh for transfer of Hotel LMPH, Mysore (unit of ITDC) to the State Government. Since the Agreement relating to transfer of Hotel Property was signed on May 25, 2018, the same has been considered as a part of discontinued operations in the financial statements for the year ended March 31, 2018. After completing the handing over formalities, the physical possession of the hotel property was given to the representatives of the State Government on May 30, 2018.

i. Hotel Patliputra Ashok, Patna; Hotel Kalinga Ashok, Bhubaneswar; and Punjab Ashok Hotel Company Limited:

The process of disinvestment/ divestment of ITDCâs Hotel Properties as well as of Subsidiary Companies is going on and Transaction Advisors for Hotel Patliputra Ashok, Patna; Hotel Kalinga Ashok, Bhubaneswar; and Punjab Ashok Hotel Company Limited, have already been appointed. The Transaction Advisors are engaged for doing the entire exercise of valuation of the properties, devising framework for transfer/ exit of ITDC, documentation, etc. as applicable.

j. Ranchi Ashok Bihar Hotel Corporation Limited:

In case of Ranchi Ashok Bihar Hotel Corporation Limited, operations of the Hotel have been closed w.e.f. 29.03.2018 with the approval of Inter-Ministerial Group of Ministry of Tourism. It has been decided by MoT that the ITDCâs Non-Current Investments (51% Equity of RABHCL) will be transferred to the Jharkhand State Government. The process of appointment of Transaction Advisor is under finalisation.

k. Pondicherry Ashok Hotel Corporation Limited:

In the previous year it was mentioned that transaction advisor was engaged for Pondicherry Ashok Hotel Corporation Limited (PAHCL), initially for exploring the possibility of valuation and transfer of ITDCâs 51% Equity holding in PAHCL to the Puducherry Government. The engagement of above said TA was short-closed because subsequently it was decided to explore the possibility of Long-term leasing, DBFOT, PPP etc. The process for fresh appointment of Transaction Advisor is under finalisation.

I Utkal Ashok Hotel Corporation Limited (UAHCL):

In case of Utkal Ashok Hotel Corporation Limited (UAHCL) the Letter of Intent (LOI)for long-term lease of the hotel property was issued to the bidder M/s Paulmech Infrastructure Pvt. Ltd. (PIPL) on January 19,2010 and was subsequently cancelled on December

10, 2013 due to non-adherence of terms of LOI by PIPL. The PIPL filed a petition praying inter alia for quashing of ITDCâs letter cancelling LOI which was dismissed by the High Court. PIPLfurther filed a Special Leave Petition before the Honâble Supreme Court of India challenging the High Court Judgement. On September 18, 2017, the Supreme Court has stayed the termination of LOI. The matter is pending in Supreme Court for further hearing.

In the process of disinvestment of various ITDC Subsidiary companies properties which is currently going on, the ITDC shareholding of three of the Subsidiary companies viz. Assam Ashok Hotel Corporation Ltd.; Madhya Pradesh Hotel Ashok Corporation Ltd.

and Donyi Polo Ashok Hotel Corporation Limited have been already transferred to the respective State Governments and the sales proceeds as worked out by the Transaction Advisor on the basis of valuation of available business opportunity etc. have been received by ITDC which is more than the amount originally invested by ITDC in respective subsidiary companies. Moreover, all outstanding trade receivables from these three Subsidiary Companies have also been fully cleared by them.

On the same analogy, the process of disinvestment / divestment of Utkal

Ashok Hotel Corporation Limited, Punjab Ashok Hotel Company Limited & Ranchi Ashok Bihar Hotel Corporation Limited is also being carried out and as ITDCâs equity / preference shares investment are considered good for recovery, no provision is considered necessary.

11. Impairment of Assets

Impairment of Property, Plant & Equipment/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Indian Accounting Standard (Ind AS) 36-âlmpairment of Assetsâ is recognised. As on 31st March, 2018, in the opinion of the Management the impairment loss has been recognised in respect of assets not in active use and Property, Plant and Equipment held for sale at Hotel Janpath, New Delhi.

12. Disclosure in pursuance to Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent Liabilities and Contingent Assets :

(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).

(ii) The identification of Micro & Small Enterprises under âThe Micro, Small and Medium Enterprises Development Act, 2006â, has been made on the basis of their declarations. Amount payable Rs, NIL (Previous year Rs, NIL).

(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.

14. In Ashok Consultancy and Engineering Services Unit out of 100 projects, 71 projects were completed long back but not closed in the books of accounts as final bills were reportedly not received/settled.

15. Previous yearsâ figures have been regrouped/ rearranged wherever necessary.

Mar 31, 2017

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

* This represents amortization of leasehold land.

** 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 amortization of leasehold residential flats at Headquarters before their conversion into Freehold.

**** Gross Carrying Amount includes Improvement to Buildings at Rs, 574.00 Lakh (Previous Year Rs, NIL)

Notes:-

(a) Terms of purchase/lease of land not having been finalized and registration of title deeds/execution of lease deeds having not been effected, liability towards cost/lease rent, ground rent and registration fee, etc, have not been created in respect of Hotel Patliputra Ashok at Patna,

Ashok Institute of Hospitality and Tourism Management(AIH&TM) and Tennis Court at New Delhi.

(b) Lease deeds/title deeds have not yet been executed in favour of the company in respect of land at Hotel Samrat and Office Premises in Scope Complex 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 company on 28th March, 1970

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

i) Land and building of Taj Restaurant at Agra, and

ii) Land at Gulmarg.

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

(f) Pending finalization of cost and adjustment thereof, capitalization 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.

(g) Pending receipt/ scrutiny of final bills of the contractors/suppliers, settlement of the rates for extra items and escalation etc., the capitalization and/ or charge to expenditure to the extent of Rs, 2,892.27 lakh has been accounted for based on certificates issued by Project Engineers for the work carried out at various projects (previous year Rs, 1,955.42 lakh). Adjustments, if any, to cost is proposed to be carried out upon final settlement of the bills.

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

** Utkal Ashok Hotel Corporation Limited has filed petition with National Company Law Tribunal (NCLT) seeking approval for issue of further redeemable Preference Shares as per provision of Section 55(3) of the Companies, 2013. The same has been approved by the Board of India Tourism Development Corporation Ltd. in the meeting held on 13.04.2017.

*** 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 company 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. Based on the draft financials of the

JV Company, the share of profit from the partnership amounting to Rs, 2.60 lakh ( P.Year Rs, 2.78 lakh) has been recognized during the year.

**** Investment worth Rs, 25/- has been taken as NIL due to rounding off.

Notes:-

Investment of Rs, 1060.58 lakh (Previous Year Rs, 1060.58 lakh) in some of the above subsidiary companies, have been evaluated at cost despite significant accumulated losses. The company is accounting for income from these companies since 2008-09 ( viz. management fees & 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 the long term relationship with those companies and the intrinsic value of the assets held by the companies.

* Include Foreign Currency equivalent to Rs, 2.75 lakh (Previous Year Rs, 4.98 lakh)

** Include towards Unclaimed Dividend of Rs, 0.49 lakh (Previous Year Rs, 0.55 lakh)

*** Include FDRRs,s of Rs, 7.74 lakh (Previous year Rs, 53.49 lakh) lodged as security and FDR''s at HDFC Bank of Rs, 300.00 lakh (Previous year Rs, 300.00 lakh) as collateral for availing Intraday Facility at Hotel Ashok, New Delhi

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

(ii) Others include Rs, 185.37 lakh (Previous year Rs, 166.55 lakh) paid to the workers of the contractor towards wages upto March, 2017, as per the directions of the Honâble High Court in the matter filed by 60 workers of the contractors. The final outcome of the case is awaited.

(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 licence agreements.

Out of the balance amount of Rs, 3.63 lakh (Previous year Rs, 4.38 lakh) of Deferred Government Grants from the Ministry of Tourism for the renovation/up gradation of properties and fresh receipt of Rs, 240.00 lakh during the year, a total sum of Rs, 85.29 lakh which includes adjustments relating to earlier years Rs, 67.54 lakh (Previous year Rs, 0.66 lakh) has been appropriated to the respective head of income. The amount equivalent to the grant related cost incurred/ adjusted during the year has accordingly been recognized as income. The balance of Rs, 158.34 lakh (Previous Year Rs, 3.63 lakh) at the close of the year has been presented in the accounts as Deferred Government grant below Reserve and Surplus.

1. The disclosure relating to AS-15 (Revised) - Employeesâ 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 Employeesâ Benefits, the following disclosure sets out the status as required:-

(Above excludes expenditure incurred by some units which is not ascertainable.)

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

* Details of expenditure towards Corporate Social Responsibility

a) Gross Amount required to be spent by the company during the year Rs, 55.53 lakh (Previous Year Rs, 38.10 lakh)

b) Amount spent during the year on:

* The Company had taken a property at L Block, Connaught Circus, New Delhi 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 filed a suit for recovery of the possession of the said property. The Honâble Delhi High Court decided the matter in favour of the owner and the corporation was directed to vacate the property accordingly ITDC vacated the property on 28.02.2007. The appeal of ITDC has been dismissed by Honâble Delhi High Court on 22.04.2016 and the demand has been paid in full in FY 2016-17.

Note No. (1): Contingent Liabilities at Sl. 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 Company 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 '' 4,858.04 lakh (Previous Year '' 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 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 the 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 licence 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 Appellants revenue from renting/ leasing of space inside Airports Civil Enclave to various persons for their business activities. The 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 Honâble 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.

D. The Employeesâ State Insurance Corporation (ESI) authorities had raised demands (including interest where applicable) totaling Rs, 826.79 lakh (Previous year Rs, 803.13 lakh) towards

ESI dues in respect of six hotel/catering units against which the company 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, 310.09 lakh and amount deposited Rs, 24.76 lakh). Against this the company holds a liability of Rs, 215.43 lakh (previous year Rs, 215.44 lakh) towards ESI dues. No provision has been made for the balance of Rs, 611.35 lakh (Previous year Rs, 587.70 lakh) as the matter is subjudice and pending finality in the matter, the same has been included under Contingent Liabilities at Sl. No. 1(A)(a)(i) above.

due from hotels and hotels to fully cooperate in the matter. Accordingly, the NDMC vide its assessment orders dated 31.03.2013 had 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 up to the year 2008-09 vide Order dt. 31.3.2013. The company 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 Hâble court on 8.3.2016. Hâble court was pleased to order that subject to ITDC paying the admitted tax, no coercive measures shall be taken by NDMC. The company has already deposited its admitted tax liability based upon assessment made vide order dt. 31.3.2013 and the balance disputed amount of Rs, 197.68 crore has been included in the contingent Liability A(a)(i) above subject to final resolution of the matter by Hâble court.

General Notes Note - 32

1. Inspite of requests made by the Company, confirmation of balances have not been received in several cases in matter of Trade receivable, Trade payable, Loans and Advances and Deposits. Besides in a few units, balances in customersâ 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 lossesRs, 3,341.82 lakh (Previous year Rs, 3,086.15 lakh) of subsidiary companies so far as it concerns the company, not dealt with in the accounts is as under:-

4. The company has been managing Kosi Restaurant owned by the Ministry of Tourism and Hotel Bharatpur Ashok (since handed) to the Rajasthan Government and the profit/loss in respect of this unit is accounted for by the Company in the respective notes of statement of Profit & Loss.

5. The 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 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 with the Hâble Delhi High Court against the eviction and recovery applications of the company

which has been dismissed by the Honâble High Court vide order dt. 30.12.2012. Against the order of Hâble 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 Hâble 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 the Estate officer has jurisdiction to entertain the application filed by the company. Another Arbitration Petition had been filed by MSIL before Honâble High Court for appointment of Arbitrator. Honâble High Court vide its interim order dt 23.5.2011 directed to appoint two Arbitrators who may proceed to appoint Presiding Arbitrator. The company preferred an Application for recalling the order of Hâble court. The Hâble 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 the company 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 Hâble 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.

7. Notices of eviction has been served on two licensees viz. M/s Mayar Health Resort and M/s Jain Restaurant (Sharman) in the year 2014 and 2012 respectively. Against that termination both the licensees went to court and the matter is since subjudice. The amounts of '' 77.11 lakh and '' 24.80 lakh received from M/s Mayar Health and M/s Jain Restaurant during the year 2016-17 are adjusted with their past dues.

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

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

Key Management Personnelâs:

1. Shri Umang Narula,

Chairman & Managing Director w.e.f. 24.04.2015 to 28.02.2017

2. Shri Piyush Tiwari,

Director (Commercial & Marketing) w.e.f. 28.05.2015 till 28.02.2017 Chairman & Managing Director w.e.f. 01.03.2017 till date

3. Shri Pradip Kumar Das,

Director (Finance) & CFO w.e.f. 25.02.2016 till date

4. Shri. V. K. Jain,

Company Secretary w.e.f 15.12.2008 till date

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

The Companyâs leasing arrangements are generally in respect of operating lease for premises (residential, office accommodation, and god owns 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 Employeesâ 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. Pursuant to a decision of the Government of India, it was decided that the 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 and allow it to be subleased to the private party, then the property may be offered to the State Govt at its officially valued price. Transaction Advisors for four Hotel Properties viz. Hotel Jaipur Ashok, Jaipur; Hotel Lalitha Mahal Palace, Mysore; Hotel Patliputra Ashok, Patna and Hotel Kalinga Ashok, Bhubaneswar have been appointed. The Transaction Advisors are engaged for doing the entire exercise of Valuation of the properties, devising framework for transfer/ exit/ absorption of employees, documentation, etc.

Hotel Bharatpur Ashok (Managed Property since owned by Government of Rajasthan) has been handed back to Government of Rajasthan on 30.04.2017.

In the absence of any formal approved plan for discontinuance of other Hotel Properties 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 Transaction Advisors for Hotel Brahmaputra Ashok, Guwahati; Hotel Donyi Polo Ashok, Itanagar; Hotel Pondicherry Ashok, Puducherry; Incomplete Project of Anandpur Sahib, Punjab; Hotel Lake View Ashok, Bhopal have already been appointed. It is expected that on completion of the proposed transaction of transfer/sale/lease out properties of Subsidiary Companies then Company will be able to realise full value of its investments, made in these Subsidiary Companies and Accounts Recoverable on account of Management Fees and Loans & Advances, etc. Therefore, no provision is considered necessary and these accounts are considered good for recovery.

12. 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-âImpairment of Assetsâ issued by the Institute of Chartered Accountants of India is recognized. As on 31st March, 2017, 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.

15. In the opinion of the management, the value of assets, other than fixed assets and non-current 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.

16. As per the Ministry of Corporate Affairs Notification no. G.S.R. 308(E) dated 30th March ,2017, the details of Specified Bank Notes (SBN) held and transacted during

17 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. 4 - âFixed Assets and Depreciationâ has been modified in compliance of Revised Accounting

Standard, AS - 10 Property Plant and Equipment (PPE), as much as the expense on Improvement to Building during the Financial Year 2016-17, has been capitalized with a useful life of 7 years as estimated by the Management.

The above changes have been made for compliance with an Accounting Standard and impact of the change in accounting policy is as follows:

18. Previous yearsâ figures have been regrouped/rearranged wherever necessary.

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 Honâble 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 Honâble High Court decided the matter in favour of the owner and the Corporation was directed to vacate the property. The Honâble 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 Honâble Supreme Court was filed which was dismissed by the court & upheld the earlier judgment of the Honâble 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 Hâble 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 Hâble Delhi High Court. The Appeal of plaintiff was dismissed and on the Appeal of ITDC the Hâble 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 Bankerâs Cheque dt. 14.1.2016. However, the Appeal of ITDC has been dismissed by Hâble 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 Honâble 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 Honâble 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 Honâble 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 Hâble court on 8.3.2016. Hâble 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 Hâble 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 customersâ 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 Hâble Delhi High Court against the eviction and recovery applications of ITDC which has been dismissed by the Honâble High Court vide order dt. 30.12.2012. Against the order of Hâble 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 Hâble 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 Honâble High Court for appointment of Arbitrator. Honâble 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 Hâble court. The Hâble 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 Hâble 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 Corporationâs 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-âImpairment of Assetsâ 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:-

(ii) The Government of India had promulgated âThe Micro,Small and Medium Enterprises Development Act, 2006â. 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 - âAccounting Conventionâ has been modified considering the provision of the Companies Act, 2013;

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

c) Policy No. 17 - âSegment Reportingâ has been added for disclosure purposes;

d) Policy No. 18 - â Cash Flowâ 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 yearsâ figures have been regrouped/ rearranged wherever necessary.

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 PersonnelÂs: -

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 personnelÂs 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 ÃÂ¦ 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)

Ã 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: Ã

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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