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Notes to Accounts of Oriental Hotels Ltd.

Mar 31, 2016

Assets taken on lease/license under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating leases are recognized as expenses in accordance with the respective lease/license agreements.

(a) The company has one class of equity shares having a par value of Rs. 1/- share. Each shareholder is eligible for one vote per share held. The Board of Directors in their meeting on May 12, 2016 proposed a dividend of Rs.0.20 per equity share, which is subject to approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

(i) Secured loans from banks represents short term loan secured by way of mortgage by deposit of title deeds in respect of immovable properties of Fisherman''s Cove and Coonoor Hotel & additionally secured by way of exclusive first charge of credit card receivables of the Company.

(ii) Short term loan from related parties consisted of inter corporate deposits for a period of 90days with an option of prepayment carrying interest @ 11%.

Footnote : Amounts due to Micro, Small and Medium Enterprises:

The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent of such parties have been identified on the basis of information available with the Company. No amount is outstanding over a period of 45 days.

(i) The related party under Long Term Deposits placed for hotel properties represent enterprises influenced by relatives of key management personnel.

(ii) Advance Tax and Tax deducted at Source is net of Provision for Income tax amounting to Rs.16,833.79 lakhss (previous year Rs.16,833.79 lakhs).

(iii) Provision for income tax considered above is net of MAT credit utilized of Rs.105.45 lakhs (Previous year Rs. 114.79 lakhs).

(iv) Advance income tax is net of provision for With Holding Tax of Rs.44.94 lakhs.

(i) The company had a property in Coimbatore whose title was found to be defective by a Court order. The Company sued the original seller of the property and obtained partial settlement. The balance unrecovered amount has been provided in the books of account as on March 31, 2016.The company is however pursuing the legal process for recovery.

(ii) The company entered into a long term agreement for development of hotel at Bannerghatta in Bengaluru in the year 2007. During the year 2013-14, the Company decided to terminate the lease agreement and recover the amount spent on the project along with the deposit made. As per the agreement the termination will take effect when the lessor fulfills the conditions laid in the termination agreement. In view of the above agreement an amount of Rs.777.65 lakhs lying in long term deposits placed for hotel properties and capital work in progress have been transferred to amounts recoverable. The company has taken adequate steps for recovery of amounts.

Note 1: Contingent Liabilities and Commitments

(i) Contingent Liabilities (to the extent not provided for) :

a) On account of income tax matters in dispute

The appeals mainly relate to part/full disallowance of certain deductions claimed by the company. The said amounts have been paid/pending adjustment and will be recovered as refund if the matters are decided in favour of the company. Based on the facts presently known, the Management believes that outcome of these appeals will not result in any material impact on the financial statements.

2. Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel, Power, Light & Water (iii) Repairs to Machinery and (iv) Other expenses are after adjusting (i) Rs.71.13 Lakhs (Previous Year Rs.167.44 Lakhs ), (ii) Rs.93.15 Lakhs (Previous Year Rs.92.51 Lakhs), (iii) Rs.6.61 Lakhs (Previous Year Rs.5.64 Lakhs) and (iv) Rs.46.99 Lakhs (Previous Year Rs.37.26 Lakhs) respectively recovered from outside parties.

3. Passage & travelling includes travelling expenses of Auditors Rs.5.66 Lakhs (Previous Year Rs.2.00Lakhs).

4. The Company has not made any remittance in foreign currencies on account of dividends during the year and does not have any information as to the extent of which remittances in foreign currencies on account of dividends have been made by or on behalf of Non-Resident Shareholders. The particulars of dividends declared during the year and paid to Non-Resident Shareholders are as follows:

5. The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

Key Management Personnel :

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such directors is Rs.93.04 Lakhs (Previous Year Rs.137.70 Lakhs) which includes the remuneration paid to Mr. Varada Reddy as the Managing Director up to November 10, 2015 and to Mr. Pramod Ranjan as the Managing Director from November 11, 2015.

6. Disclosure Requirement under AS-19 - Lease/License Transaction

a) The company has entered into a licensing arrangement in the year 2009 to operate a hotel for a period of 40 years and thereafter renewable for a further period of 30 years for a hotel property situated at Trivandrum..

The license fee payable is Rs.175.00 Lakhs per annum or specified percentage of Gross Annual Turnover whichever is higher.

b) The company has entered into a licensing arrangement in the year 2005 to operate a hotel for a period of 29 years and 11 months thereafter renewable for a further period of 29 years and 11 months for a hotel property situated at Coimbatore.

The license fee payable is Rs.60.00 Lakhs per annum with an escalation of 10% once in three years plus a specific percentage of total revenues from the date of hotel operation.

7. The Company has an investment of Rs.30 Lakhs and advances outstanding of Rs.560 Lakhs in Taj Karnataka Hotels and Resorts Limited (TKHRL) TKHRL has accumulated losses in excess of its net worth. Considering the inherent value of the investee company''s assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

8. As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements and AS 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 133 of the Companies Act, 2013, the company has presented Consolidated Financial Statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

9. Previous year''s figures have been re-grouped, reclassified wherever necessary so as to make them comparable with current year''s figures.


Mar 31, 2015

I) Previous year's figures have been regrouped wherever necessary to confirm to current year's classification. The accompanying notes 1 to 45 form an integral part of the financial statements.

Note 2: Contingent Liabilities and Commitments

(i) Contingent Liabilities (to the extent not provided for) : a) On account of income tax matters in dispute

The appeals mainly relate to part/full disallowance of certain deductions claimed by the company. The said amounts have been paid/pending adjustment and will be recovered as refund if the matters are decided in favour of the company. Based on the facts presently known, the Management believes that outcome of these appeals will not result in any material impact on the financial statements.

March 31, 2015 March 31, 2014 Particulars Rs in lakhs Rs in lakhs

(In respect of tax matters for whichappeals are 1,076.14 1,076.14 pending amounting to

The company is a defendant/party to claims (plus interest thereon) in various legal actions as listed above which arose during the ordinary course of business. Based on the facts presently known, the Management believes that the results of these actions will not have material impact on the company's financial statements.

f) The company has also filed claims for recovery of amounts spent on certain projects that did not materialize from third parties involved in those contracts. The amount of such claims amounts to Rs. 1152.58 lakhs.The company is in negotiations/legal proceedings. The management is confident that the results of the proceedings/negotiations will result in the company recovering the full amount.

Note 3: Derivative Instruments

The company uses forward exchange contracts, interest rate swaps, currency swaps and options to hedge its exposure in foreign currency and interest rates. The information on derivative instruments is as follows:

4 Bad debts and Advances written off is after adjusting the provision made in the earlier years amounting to Rs. Nil (Previous Year Rs.5.38 lakhs)

5 Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel, Power, Light & Water (iii) Repairs to Machinery and (iv) Other expenses are after adjusting (i) Rs.167.44 Lakhs (Previous Year Rs.162.57 Lakhs ), (ii) Rs.92.51 Lakhs (Previous Year Rs.85.94 Lakhs ), (iii) Rs.5.64 Lakhs (Previous Year Rs.5.15 Lakhs) and (iv) Rs.37.26 Lakhs (Previous Year Rs.65.16 Lakhs) respectively recovered from outside parties.

6 Passage & travelling includes travelling expenses of Auditors Rs.2.00 Lakhs (Previous Year Rs.2.12 Lakhs).

7 The Company has not made any remittance in foreign currencies on account of dividends during the year and does not have any information as to the extent of which remittances in foreign currencies on account of dividends have been made by or on behalf of Non-Resident Shareholders. The particulars of dividends declared during the year and paid to Non-Resident Shareholders are as follows:

8 The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

* Disclosure relating to only "post employment defined benefits plan".

9 Central Governmnet approval is awaited for excess remuneration paid/payable to Managing Director for period 01st April 2012 to 31st March 2014 amounting to Rs. 124.38 lakhs.

10 As per Accounting Standard - AS 18 "Related Parties Disclosure" notified by the Companies (Accounting Stand- ards) Rules, 2006 the required information is given below:

I) List of Related Parties with whom transactions have taken place during the year:

A. Subsidiary Companies OHL International (HK) Limited

B. Associate Companies Taj Madurai Limited

Lanka Island Resorts Limited

C. Joint Ventures TAL Hotels & Resorts Limited

D. Significant Influence The Indian Hotels Company Limited

E. Others 100% Subsidiaries of The Indian Hotels Company Limited

- Roots Corporation Limited

- TIFCO Holdings Limited

- Taj International (HK) Limited Subsidiaries of The Indian Hotels Company Limited

- PIEM Hotels Limited

- Taj Trade and Transport Company Limited

- United Hotels Limited

- Indi Travels Limited

- Benares Hotels Limited F. Key Management Personnel Mr.D.Varada Reddy, Managing Director

G. Enterprises influenced by Relatives Dodla International Limited of Key Management Personnel

Includes Reimbursement of deputed staff salaries and other expenses.

Key Management Personnel :

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such directors is Rs. 137.70 Lakhs (Previous Year Rs.125.50 Lakhs). An amount of Rs.90 Lakhs is payable as on 31st March 2015 (previous year Rs.60 Lakhs).

NOTE: Figures in brackets are in respect of Previous Year.

11 DISCLOSURE REQUIREMENT UNDER AS-19 - LEASE/LICENSE TRANSACTION

a) The company has entered into a licensing arrangement in the year 2009 to operate a hotel for a period of 40 years and thereafter renewable for a further period of 30 years for a hotel property situated at Trivandrum.

The license fee payable is Rs.175.00 Lakhs per annum or specified percentage of Gross Annual Turnover whichever is higher.

b) The company has entered into a licensing arrangement in the year 2005 to operate a hotel for a period of 29 years and 11 months thereafter renewable for a further period of 29 years and 11 months for a hotel property situated at Coimbatore.

The license fee payable is Rs.60.00 Lakhs per annum with an escalation of 10% once in three years plus a specific percentage of total revenues from the date of hotel operation.

c) The company has taken certain vehicles on operating lease. The total lease rent paid on the same amounting to Rs.23.13 Lakhs (Previous Year Rs.22.81 Lakhs) have been recognised in profit and loss account.

12 The Company has an investment of Rs.30 Lakhs and advances outstanding of Rs.560 Lakhs in Taj Karnataka Hotels and Resorts Limited (TKHRL) TKHRL has accumulated losses in excess of its networth.Considering the inherent value of the investee company's assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

13 Disclosure of Company's Interest in Joint Ventures:

14 As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Ac- counting for investments in Associates in Consolidated Financial Statements and AS 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 133 of the Companies Act, 2013, the company has presented Consolidated Financial Statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

15 Previous year's figures have been re-grouped, reclassified wherever necessary so as to make them comparable with current year's figures.


Mar 31, 2013

Note 1

Significant Accounting Policies

The financial statements are prepared under historical cost convention on accrual basis and comply with Accounting Standards (AS) referred to in Section 211(3C) of the Companies Act, 1956. The preparation of financial statements requires the management to make estimates and assumtions considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from the estimates. Significant accounting policies adopted in the presentation of the accounts are as under:

Note 2: Contigent Liabilities and Commitments

March 31, 2013 March 31, 2012 Particulars Rs. in lakhs Rs. in lakhs

(i) Contingent Liability not provided for :

a) Bank Guarantee/Bond executed by the Company 270.56 270.56

b) Letter of credits opened by bankers 69.23 67.78

c) Appeals filed in respect of disputed demands

- Income Tax ** 1,029.89 981.07

- Luxury Tax 32.16 29.47

- Sales Tax 94.67 98.50

- Urban Land Tax 7.30 7.30

- Electricity Tax and Adjustment Charges 139.34 139.34

- Service Tax 879.41 801.71

** Demand raised by the Income Tax department against the Company by disallowing certain deductions/ benefits/ claims made by the Company. In the opinion of the Company most of these demands are not maintainable and accordingly appeals have been preferred

3 Bad debts and Advances written off is after adjusting the provision made in the earlier years amounting to Rs.25.33 lakhs (Previous Year Rs.15.31 lakhs)

4 Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel,Powe,Light & Water (iii) Repairs to Machinery and (iv) Other expenses are after adjusting (i) Rs.44.64 lakhs (Previous Year Rs.30.10 lakhs), (ii) Rs.55.83 lakhs (Previous Year Rs.48.00 lakhs), (iii) Rs.3.23 lakhs (Previous Year Rs.2.44 lakhs) and (iv) Rs.74.62 lakhs (Previous Year Rs.56.43 lakhs) respectively recovered from outside parties.

5 Passage & traveling includes travelling expenses of Auditors Rs.2.67 lakhs (Previous Year Rs.2.43 lakhs).

6 The Company has not made any remittance in foreign currencies on account of dividends during the year and does not have any information as to the extent of which remittances in foreign currencies on account of dividends have been made by or on behalf of Non-Resident Shareholders. The particulars of dividends declared during the year and paid to Non-Resident Shareholders are as follows:

7 The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

8 The Company has exercised option under Notification No. GSR 914 (E) dated December 29, 2011 issued by the Ministry of Corporate Affairs during the financial year 2011-12. Pursuant to clarification on Para 46A of notification number G.S.R. 914(E) dated 29/12/2011 on Accounting Standard 11 relating to “The effects of changes in foreign exchange rates” issued by Ministry of Corporate Affairs, the Company has capitalized foreign exchange loss amounting to Rs. 68.44 lakhs during the year, which was in the earlier year treated as borrowing cost as per Accounting Standard 16 – ‘Borrowing Costs’.

9 The Company during the year has provided to Managing Director an amount of Rs.115.63 lakhs as managerial remuneration. In view of in adequacy of profits, the remuneration paid to Managing Director is in excess of the limits prescribed under the Companies Act, 1956 by Rs.58 lakhs. The amount paid in excess of limits is subject to approval of the Shareholders by a special resolution and also subject to approval of the Central Government.

10 As per Accounting Standard - AS 18 "Related Parties Disclosure" notified by the Companies (Accounting Standards) Rules, 2006 the required information are given below:

I) List of Related Parties are as follows:

A. Subsidiary Companies OHL International (HK) Limited

B. Associate Companies Taj Madurai Limited Lanka Island Resorts Limited

C. Joint Ventures TAL Hotels & Resorts Limited

Prestige Garden Resorts Private Limited (Ceased to be a Joint Venture from the Financial year 2012-13)

D. Significant Influence The Indian Hotels Company Limited

E. Others 100% Subsidiaries of The Indian Hotels Company Limited

- Roots Corporation Limited

- TIFCO Holdings Limited Subsidiaries of The Indian Hotels Company Limited

- PIEM Hotels Limited

- Taj Trade and Transport Company Limited

- United Hotels Limited

- Indi Travels Limited

- Benares Hotels Limited

F. Key Management Personnel Mr.D.Varada Reddy, Managing Director

11 DISCLOSURE REQUIREMENT UNDER AS-19 - LEASE/LICENCE TRANSACTION

a) The Company has entered into a licensing arrangement to operate a hotel for a period of 40 years and there after renewable for a further period of 30 years for a hotel property situated at Trivandrum.

The license fee payable is Rs.175.00 lacs per annum or specified percentage of Gross Annual Turnover which ever is higher.

b) The Company has entered into a licensing arrangement to operate a hotel for a period of 29 years and 11 months thereafter renewable for a further period of 29 years and 11 months for a hotel property situated at Coimbatore.

The license fee payable is Rs. 60.00 lacs per annum with an escalation of 10% once in three years plus a specific percentage of total revenues from the date of hotel operation.

12 The Company has an investment of Rs. 30 lakhs and advances outstanding of Rs. 560 lakhs in Ta j Karnataka Hotels and Resorts Limited (TKHRL) TKHRL has accumulated losses in excess of its networth.Considering the inherent value of the investee Company''s assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

13 Exceptional Items represents (i) Profit on sale of investment in a Joint Venture Company of Rs. 1217.96 lakhs and (ii) Profit on transfer of immovable property of Rs. 218.28 lakhs.

14 Disclosure of Company''s Interest in Joint Ventures:

15 As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements" and AS 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 211(3C) of the Companies Act, 1956, the Company has presented consolidated financial statements seperately, including that of its subsidiary, associates and joint venture entities in this annual report.

16 The previous year''s figures have been re-grouped, reclassified whereever necessary so as to make them comparable with the current year''s figures.


Mar 31, 2012

1 Contingent Liabilities and Commitments Previous Year Rs.

Rs.in Lakhs Rs.in Lakhs

(i) Contingent Liability not provided for :

a) Bank Guarantee/Bond executed by the Company 270.56 272.10

b) Letter of credits opened by bankers 67.78 133.20

c) Appeals filed in respect of disputed demands

- Income Tax ** 981.07 924.42

- Luxury Tax 29.47 29.47

- Sales Tax 98.50 43.61

- Urban Land Tax 7.30 7.30

- Electricity Tax and Adjustment Charges 139.34 139.34

- Service Tax 801.71 428.43

** Demand raised by the Income Tax department against the company by disallowing certain deductions/benefits/ claims made by the company. In the opinion of the Company most of these demands are not maintainable and accordingly appeals have been preferred

2. Income from investments represent income from long term trade investments amounts to Rs25.40 Lakhs (Previous Year Rs21.41 lakhs).

3. Bad debts and Advances written off is after adjusting the provision made in the earlier years amounting to Rs15.31Lakhs (Previous Year Rs106.37 Lakhs)

4. Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel, Power and Light, (iii) Repairs to Machinery, and (iv) Water charges (v) Other expenses are after adjusting (i) Rs 30.10lakhs (Previous YearRs75.67 lakhs ), (ii) Rs 39.05lakhs (Previous Year Rs 24.32 lakhs ),(iii)Rs 2.44 lakhs (Previous Year Rs2.08 lakhs ) iv) Rs 8.95 lakhs (Previous Year Rs 7.63 lakhs )and (v) Rs56.43 lakhs (Previous Year Rs 44.25 lakhs ) respectively recovered from outside parties.

5. Passage & traveling includes traveling expenses of Auditors Rs2.43 Lakhs (Previous Year Rs2.10 Lakhs).

6. The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

7. Accounting for Foreign Currency Fluctuations on Long Term Foreign Currency Monetary Items During the year, the company has exercised the Option under Companies (Accounting Standards) (Second Amendment) Rules, 2011 relating to Accounting Standard (AS) 11 " The Effects of Changes in Foreign Exchange Rates". In accordance with the Revised Accounting Standard, the company has exercised tthe option of capitalizing the exchange difference arising on reporting of long term foreign currency monetary item to the cost of the related depreciable capital assets excluding the value of fluctuations to the extent considered as part of Interest cost in accordance with the Accounting Standard (AS) -16 - "Borrowing Costs" and depreciating the amount over the balance life of the asset. On account of adoption of this notification, the gross value of fixed assets, depreciation and profit before tax are higher by Rs 1086 Lakhs, Rs 41 Lakhs and Rs 1045 Lakhs respectively.

* Includes Reimbursement of deputed staff salaries and other expenses.

# Represents transactions with Indian Hotels Company Limited unless otherwise specified.

Key management personnel :

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such director is Rs 101.62 lakhs (Previous yearRs88.31 lakhs) which includes an amount of Rs 26.82 lakhs outstanding as at 31st March 2012(Previous year Rs 35 lakhs)

NOTE: Figures in brackets are in respect of Previous Year

8. DISCLOSURE REQUIREMENT UNDER AS-19 - LEASE/LICENCE TRANSACTION

a) The company has entered into a licensing arrangement to operate a hotel for a period of 40 years and thereafter renewable for a further period of 30 years for a hotel property situated at Trivandrum.

The license fee payable is Rs 175.00 lakhs per annum or specified percentage of Gross Annual Turnover whichever is higher.

9. The Company has an investment of Rs 30 lakhs and advances outstanding of Rs 560 lakhs in Taj Karnataka Hotels and Resorts Limited (TKHRL) TKHRL has accumulated losses in excess of its net worth. Considering the inherent value of the investee company's assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

10. As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements and AS 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 211(3C) of the Companies Act, 1956, the company has presented consolidated financial statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

11. The presentation of the financial statements is based on the Revised Schedule VI of the Companies Act, 1956, applicable from the current financial year. Accordingly, previous year figures are realigned to make it comparable with the current year.


Mar 31, 2011

1 Assets taken on lease:

In respect of lease transactions, which are in nature of finance leases, Assets taken on lease after 1st April, 2001 are accounted as fixed assets at fair value in accordance with Accounding Standard 19 (AS-19) - "Leases". Lease payments are apportioned between finance charges and reduction of the lease liability based on the implicit rate of return. Assets taken on lease / licence under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating leases are recognised as expenses in accordance with the respective lease / licence agreements.

2. Based on the orders of the Division Bench of the Honble High Court of Madras in an earlier year, the value of Freehold Land amounting to Rs.749.86 Lakhs has been classified as an unsecured loan under Loans and Advances. The Company has initiated appropriate legal action to recover the amount together with interest and obtained interim stay order to protect and secure the amount. The Company has received part amount under a compromise settlement. The management is confident of recovery of the balance amount due.

Previous Year Rs. in Lakhs Rs. in Lakhs

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance) 3,691.95 3,631.29

4. Contingent Liability not provided for : a) Bank Guarantee/Bond executed by the Company 272.10 190.10

b)Letter of credits opened by bankers 133.20 117.79

c)Appeals filed in respect of disputed demands

- Income Tax** 924.42 1,007.73

- Luxury Tax 29.47 29.88

- Sales Tax 43.61 44.70 - Urban Land Tax 7.30 7.30

- Electricity Tax and Adjustment Charges 139.34 139.34

- Service Tax 428.43 383.85

** Demand raised by the Income Tax department against the Company by disallowing certain deductions/benefits/ claims made by the Company. In the opinion of the Company most of these demands are not maintainable and accordingly appeals have been preferred before the appropriate authorities.

5. a) As the turnover of the Company includes sale of food and beverages, it is not possible to give quantity-wise details of the sale and consumption of food and beverages. The Company is exempted from giving these particulars for the year 2010- 11 vide Order No.46/41/2011-CL-III dated 20th January, 2011 issued by the Ministry of Corporate Affairs.

c) i) Income from investments includes dividend from a subsidiary company of Rs.NIL (Previous Year Rs.553.57 Lakhs)

ii) Income from investments represent income from long term trade investments amounts to Rs.21.41 lakhs (Previous year Rs.29.19 lakhs)

6. Bad debts and Advances written off is after adjusting the provision made in the earlier years amounting to Rs. 106.37 lakhs (previous year Rs.54.14 Lakhs)

7. Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel, Power and Light, (iii) Repairs to Machinery, (iv) Water charges & (v) Other expenses are after adjusting (i) Rs.75.67 lakhs (Previous Year Rs.39.81 lakhs), (ii) Rs.24.32 lakhs (Previous Year Rs.34.84 lakhs), (iii) Rs.2.08 lakhs (Previous Year Rs.3.11 lakhs), (iv) Rs.7.63 lakhs (Previous Year Rs. 11.41 lakhs) and (v) Rs.44.25 lakhs (Previous Year Rs.19.62 lakhs) respectively recovered from outside parties.

8. The shareholders deposit represents advance for invesments in TAL Hotels & Resorts Limited.

9. Passage & traveling includes traveling expenses of Auditors Rs.2.10 Lakhs (Previous Year Rs.6.85Lakhs).

10. The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

11. DISCLOSURE REQUIRMENT UNDER AS-19 - LEASE / LICENCE TRANSACTION

a) The company has entered into a licensing arrangement to operate a hotel for a period of 40 years and thereafter renewable for a further period of 30 years.

12. As per Accounting Standard - AS 18 "Related Parties Disclosure" notified by the Companies (Accounting Standards) Rules,2006 the required information are given below:

Key management personnel :

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such director is 788.31 lakhs (Previous year 783.32 lakhs) which includes an amount of 735.00 Lakhs outstanding as at 31st March, 2011 (Previous year 730.00 Lakhs)

13. The Company has an investment of 730 lakhs and advances outstanding of 7560 lakhs in Taj Karnataka Hotels and Resorts Limited (TKHRL). TKHRL has accumulated losses in excess of its networth. Considering the inherent value of the investee companys assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

14. As per Accounting Standard 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements and Accounting Standard 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 211 (3C) of the Companies Act, 1956, the Company has presented consolidated financial statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

15. Previous year figures have been regrouped wherever necessary.


Mar 31, 2010

1. Based on the orders of the Division Bench of the Honble High Court of Madras in an earlier year, the value of Freehold Land amounting to Rs.749.86 Lakhs has been classified as an unsecured loan under Loans and Advances. The Company has initiated appropriate legal action to recover the amount together with interest and obtained interim stay order to protect and secure the amount. The Company has received part amount under a compromise settlement. The management is confident of recovery of the balance amount due.

2. Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) fuel, Power and Light, (iii) Repairs to Machinery, (iv) Water charges (v) Other expenses are after adjusting (i) Rs.39.81 lakhs (Previous Year Rs.26.88 lakhs), (ii) Rs.34.84 lakhs (Previous Year Rs.26.88 lakhs), (iii) Rs.3.11 lakhs (Previous Year Rs.2.52 lakhs), (iv) Rs. 11.41 lakhs (Previous Year Rs.9.24 lakhs) and (v) Rs. 19.62 lakhs (Previous Year Rs. 18.48 lakhs) respectively recovered from outside parties.

3. The shareholders deposit represents advance for invesments in TAL Hotels & Resorts Limited (formerly Taj Asia Limited)

4. Passage & traveling includes traveling expenses of Auditors Rs.6.85 Lakhs (Previous Year Rs.4.74 Lakhs).

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